Comptel Plc Interim Report 1-31 2000 April 18, 2000
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❶ Revenue increased by 65% to 13.8 (8.4) EURm ❶ EBIT increased by 116% to 4.9 (2.3) EURm ❶ Pre tax profit increased by 110%, 5.3 (2.5) EURm ❶ EPS increased by 89%, 0.035 (0.019) EUR/share ❶ Comparable back orders increased by 65% ❶ Comptel maintained the global leadership in the mediation market, also the GPRS deliveries have started 3
❶New important partner agreements Geneva, Xacct, Portal,... ❶Deliveries of new products have started ❶Several new important MDS delivery agreements ❶Warrant program covers the whole personnel ❶The ownership at Arcus Software is over 20 % 4
EUR million 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 Domestic Export 24,1 13,1 5,0 7,7 11,4 12,4 15,0 4,7 3,7 6,1 1997 1998 1999 1Q-99 1Q-00 5
EUR million 16,0 Turnover EBIT 13,8 12,0 8,4 10,1 8,5 12,0 8,0 4,0 2,3 3,7 2,6 4,8 4,9 0,0 1Q-99 2Q-99 3Q-99 4Q-99 1Q-00 6
EPS EBITDA% 0,12 0,10 0,10 50 % 40 % 0,08 0,06 0,04 0,03 0,03 30 % 20 % 0,02 0,02 0,02 10 % 0,00 1997 1998 1999 Q1-99 Q1-00 0 % 7
❶ The export growth continued and the company gained new MDS licence deliveries ❶ Subscriber and traffic growth based revenues increased. License upgrade growth was strong, especially among mobile operators ❶ Export increased by 63%, accounting for 7.7 EURm ❶ Favourable cost structure and no bad debts 8
End of the Period 500 450 400 350 300 265 339 364 250 200 204 282 150 1997 1998 1999 Q1-99 Q1-00 9
❶ Investments internationally ❶ ❶ ❶ Taking advantage of the growth potential in the US and Asian market Kuala Lumpur representative office became a subsidiary Agreement with Logica for marketing MDS mediation software in Japan ❶ One director responsible for Comptel s entire MDS business (Jorma Heinonen) ❶ Resolutions passed by Comptel s Annual General Meeting ❶ ❶ New Board of Directors: Matti Mattheiszen, Erik Anderson, Ann-Maj Majuri-Ahonen, Gunnulf Mårtenson and Vesa Silaskivi Split (1:5) of Comptel Plc's shares, new warrant program 10
Administration Managing Director Corporate Planning MDS business R&D Systems Development Customers and Partners 11
❶ The company estimates a continuous growth in the mediation market, also the future looks good for Comptel s new products ❶ The GPRS investments of operators are an important part of the growth strategy ❶ The GPRS- network has opened up, but it has thus some uncertainty regarding the timetable of implementation ❶ We believe license upgrading continues as number of subscribers in mobile networks is further increasing ❶ The strongest growth of exports is in the USA and Asia Pacific 12
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❶ Consolidation and structural changes among telecom operators ❶ ❶ Vodafone-Mannesmann VoiceStream - Aerial - Omnipoint ❶ Consolidations in the IT-industry ❶ Amdocs-Solect, Lucent-Kenan, Sema-LHS ❶ Several new operators and providers of network elements to the market ❶ Technology transition in telecom networks continues 14
❶ Co-operation agreements in the IP-environment: Geneva, Xacct and Portal ❶ Extensive co-operation with Logica ❶ ❶ Marketing co-operation in Japan Global MDS competence centre in Czech Republic ❶ New integrators ❶ Delivery agreements with Lucent and Alcatel 15
❶ Deliveries of the new products has started; MDS/AMD-DB, MDS Credit Guard and GPRS Charging Gateway ❶ Several new MDS projects have started, eg. ❶ ❶ ❶ Sonera - MDS FOR GPRS/ IP and MDS/AMD-DB Radiolinja - MDS for GPRS/ IP and MDS for Satellite Blu, Italy - MDS mediation software 16
EUR million 16,0 Direct Sales 14,9 Partners 12,0 9,1 8,0 4,0 4,2 0,9 6,2 6,9 1,7 3,1 2,3 5,4 0,0 1997 1998 1999 1Q-99 1Q-00 17
18 Finland Finland Estonia Estonia Poland Poland France France Germany Germany Greece Greece Austria Austria Belgium Belgium Czech Rep. Czech Rep. Romania Romania Canada Canada USA USA Mexico Mexico Venezuela Venezuela Peru Peru Brazil Brazil Equador Equador Saudi Arabia Saudi Arabia China China Hong Kong Hong Kong Macao Macao Thailand Thailand Philippines Philippines Malaysia Malaysia Singapore Singapore Taiwan Taiwan Indonesia Indonesia Australia Australia Fiji Fiji Ireland Ireland UK UK Italy Italy Luxembourg Luxembourg Netherlands Netherlands Portugal Portugal Turkey Turkey Slovak Rep. Slovak Rep. Sweden Sweden Switzerland Switzerland Namibia Namibia India India Pakistan Pakistan
Total 7.7 EURm Asia 28 % Australia 3 % Africa 2 % EMEA 50 % America 17 % 19
❶ Focus areas of the R&D were ❶ ❶ ❶ ❶ m-commerce, GPRS/3G research MDS for GPRS and GPRS Charging Gateway New generation of MDS platform products MDS/AMD-DB (Transaction database) ❶ Direct R&D expenses 1999 were EURm 1,1 and about 25% of the company s personnel were involved in the R&D ❶ The company charges all incurred R&D expenses against the profits of the year ❶ Recruitment for R&D personnel started in Malaysia 20
MDS/AMD-DB Transaction Storage Billing & Payment Management WAP Users GSM-network GPRSnetwork Authentication PKI- Service Comptel M - services platform WAP Portals MDS Credit Guard m-shops m-services Content, media 21
USA Helsinki HONG KONG Kuala Lumpur SYDNEY 22
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1998 1999 Q1/99 Q1/00 Muutos % Revenues, EURm 25,4 39,0 8,4 13,8 65 % Other operating income, EURm 0,1 0,1 0,0 0,0 Materials and Services, EURm -3,0-3,9 0,7 2,2 188 % Personnel expenses, EURm -11,6-13,6 3,4 4,2 22 % Depreciation and amortisation, EURm -1,0-1,9 0,5 0,5 3 % Other operating expenses, EURm -4,9-6,4 1,4 2,0 40 % Operating profit, EURm 4,9 13,3 2,3 4,9 116 % Net financial items, EURm 0,0 0,8 0,2 0,4 53 % Profit after financial items, EURm 4,9 14,1 2,5 5,3 110 % EPS, EUR 0,03 0,10 0,02 0,03 89 % EBIT-% 19,4 34,3 27,3 35,7 Net debt, EURm -5,0-20,5-11,2-26,4 Personnel (end of period) 265 339 275 363 32 % 24
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TUNNUSLUVUT 1999 03/1999 03/2000 Taloudellista kehitystä kuvaavat tunnusluvut Liikevaihto, Tmk 232 238 49 780 81 988 Liikevaihto, kasvu % 53,2 43,5 64,7 Liikevoitto, Tmk 79 634 13 567 29 286 Liikevoitto, kasvu % 170,6 71,3 115,9 Liikevoitto, % liikevaihdosta 34,3 27,3 35,7 Voitto ennen satunnaiseriä, varauksia ja veroja, Tmk 84 146 14 908 31 341 Voitto ennen satunnaiseriä, varauksia ja veroja, % liikevaihdosta 36,2 29,9 38,2 Voitto ennen tilinpäätössiirtoja ja veroja, Tmk 84 146 14 908 31 341 Voitto ennen tilinpäätössiirtoja ja veroja, % liikevaihdosta 36,2 29,9 38,2 Omavaraisuusaste, % 78,0 49,3 76,6 Bruttoinvestoinnit pysyviin vastaaviin, Tmk 17 018 2 923 5 292 Bruttoinvestoinnit pysyviin vastaaviin, % liikevaihdosta 7,3 5,9 6,5 Tutkimus- ja tuotekehitysmenot, Tmk 16 204 2 972 6 253 Tutkimus- ja tuotekehitysmenot, % liikevaihdosta 7,0 6,0 7,6 Tilauskanta, Tmk 1) 79 500 109 700 181 300 Henkilöstön keskimääräinen lukumäärä tilikauden aikana 314 275 363 Korolliset nettovelat, Tmk -122 110-66 677-157 083 Nettovelkaantumisaste, % -93,7-149,6-103,2 1) Tilikauden sisäisen tilauskannan vaihtelu voimakas. Suurin osa vuosittaisista ylläpitosopimuksista sovitaan alkuvuodesta. Osakekohtaiset tunnusluvut Tulos/osake, mk 0,60 0,11 0,21 Tulos/osake, mk, laimennusvaikutuksen mukainen 0,60 0,11 0,20 Oma pääoma/osake, mk 1,22 0,42 1,42 Osakkeiden osakeantioikaistu lukumäärä kauden lopussa 1) 107 000 000 105 000 000 107 000 000 Osakkeiden osakeantioikaistu lukumäärä keskimäärin kauden aikana 105 153 425 105 000 000 107 000 000 Laimennusvaikutuksellinen osakkeiden määrä 107 530 155 105 000 000 108 609 250 1) Osakemäärä oli 22.10.1999 asti 105 kpl. Osakemääomaa korotettiin 22.10.1999 21 000 000 kappaleeseen. Tunnusluvuissa on 26
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Systemintegrators Andersen Consulting CSC Cap Gemini Compaq debis Systemhaus EDS Hewlett-Packard IBM Logica Equipment vendors Compaq Hewlett-Packard IBM Sun Nokia (OEM) Software vendors Amdocs IBM KSCL Kenan LHS Logica Oracle TCS INTEC Geneva Xacct Portal Hewlett-Packard 29
Event Database Payment Management Postpaid - Billing Prepaid, limit - On-line - Banking/credit card MDS Credit Guard Customer Care Self-care MDS/AMD-DB Provisioning & Accounting Mediation IP Access Networks e-broker Content & Services Broker pilots 30
PKI Applications Bluetooth WAP phase1 WAP portals M-commerce platforms M-economy GSM: - Data Call GPRS Trials - Short Message GPRS Deployment EDGE 3G/UMTS 1999 2000 2001 2002 2003 31
1400 1200 1000 800 600 400 200 0 Users (millions) Source: LHS Group, Deutche Bank Equity Research Report, 8 September, 1999 1996 1997 1998 1999E 2000E 2001E 2002E 2003E 2004E 2005E 32
4500 4000 3500 3000 2500 2000 1500 1000 500 0 Minutes of traffic per year (billion) Source: Mobile Telephone Software, HSBC Securities, July 1999 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 33
Minutes of traffic per year (billion) 5000 4000 3000 2000 1000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Voice Data Source: Mobile Telephone Software, HSBC Securities, July 1999 34
Number of Countries New Operators Europe 41 50 Africa 41 70 Middle East 14 15 Asia/Pacific 36 70 USA/Canada 2 10 Latin America 24 40 Others 93 45 Total 251 300 Lähde: LHS Group, Deutsche Bank Research Report, 8.9.1999 35
Finland other (System develompent and MDS software 15 % 1998 1999 Hardware sales 5 % Software licenses (incl. Installation and training) 44 % Finland other (System develompent and MDS software 13 % Hardware sales 1 % Software licenses (incl. Installation and training) 51 % Helsinki Telephone (System development and MDS software 29 % Maintenance and support 7 % Helsinki Telephone (System development and MDS software 25 % Maintenance and support 10 % 36
EURm 1998 1999 Australia 0.6 Asia 2.7 Africa 0.6 Australia 1.0 Asia 4.7 Africa 0.2 Americas 1.7 Europe 7.5 Americas 3.5 Europe 14.7 37
1,400,000,000 1,200,000,000 1,000,000,000 More phones connected to Internet than PC's! 800,000,000 600,000,000 Projected Cellular Subscribers (Nokia 1998) Projected PC's Connected to the Internet (Dataquest 10/98) 400,000,000 200,000,000 Projected WAP Handsets (Nokia 1999) - 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 38
Helsingin Puhelin Oyj 12950000 60,5 Keskinäinen Eläkevakuutusyhtiö Ilmarinen 70000 0,3 Keskinäinen Eläkevakuutusyhtiö Tapiola 70000 0,3 Keskinäinen Eläkevakuutusyhtiö Eläke-Fennia 70000 0,3 Kuntien Eläkevakuutus 70000 0,3 Varma-Sampo 70000 0,3 OP-Tuotto Sijoitusrahasto 68200 0,3 Alfred Berg Finland Sijoitusrahasto 66400 0,3 Suomen Itsenäisyyden Juhlarahasto Sitra 65675 0,3 OP-Delta Sijoitusrahasto 60000 0,3 Hallintarahastot 3939172 18,4 39
1200 1000 800 600 400 200 0 1998 1999 2000 2001 2002 Africa Americas Asia Europe Oceania Source: Enskilda Securities, World Telecommunication Development Report 40
1400 1200 1000 800 600 400 200 0 1998 1999 2000 2001 2002 Africa Americas Asia Europe Oceania Source: Enskilda Securities, Word Telecommunication Development Report 41
90 80 70 60 50 40 30 20 10 0 1999 2000 2001 2002 Source: Enskilda Securities, the Yankee group 42
3G, 2Mbps Edge, 384kbps GSM, 10kbps GPRS, 115kbps 1999 2000 2001 2002 Source: Enskilda Securities 43
Application Interface licenses Gredit Guard Basic licenses Comptel services New Basic Licenses based on network type Mobile,Fixed,IP, GPRS,Satellite Volume components GPRS extension Training Installation Consulting Delivery Network Interface licenses GPRS CGW Portal pilots 44
❶ New mediation customers ❶ New licences for existing customers ❶ Subscriber and traffic growth based revenues ❶ New technology platforms and new services ❶ MDS for GPRS, later UMTS/3G ❶ Extended mediation, recent roll-outs ❶ ❶ Credit Guard AMD-DB 45