Telio Q2 05 presentation

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Telio Q2 05 presentation
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Agenda todays presentation

• Highlights
• New Management
• Q2-05
• Telio Structure
• Market and competition
• Outlook
• QA

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Telio highlights

• Norways first, largest and fastest growing ITSP
  (Internet Telephony Service Provider)
• Offices in Norway, Sweden, Denmark, Holland and
  Switzerland
• Telio technical management and advisory board
  include many of the worlds pre-eminent SIP and
  VoIP experts
• New top management in place from mid-August
• 60 employees and more than 65 000 subscribers
  (Norway Denmark)
• Over the summer approx 8.000 customers added
• Q2 revenues of 42,7 MNOKs and H1 revenues of 77,7
  MNOKs
• Q2-05 pre tax profit of 5,7 MNOK and H1 pre tax
  profit of 11,9 MNOKs
• Offering technology platform on OEM basis to
  ISPs/carriers
• Enables rapid, low risk, low cost entry into VoIP
  for anyone with an installed customer base.

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Agenda todays presentation

• Highlights
• New Management
• Q2-05
• Telio Structure
• Market and competition
• Outlook
• QA

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New Managment

• New CEO Arild Nilsen
• Prev. Experience
• 1992-1995 McKinsey Senior Consultant
• 1995-2000 NetCom - Operations and Technical
  Director, Business Market Director and Product
  Market Director
• 2001-2005 Glastad Invest - CEO
• New CFO - Kyrre Grinde-Andersen
• Prev experience
• 1987-1989 Deloitte management consultants
• 1989-1995 Schlumberger Ltd.
• 1995-2001 Kodak Norge as
• 2001-2005 Sense Communiactions Int. AS
• The founders recognize the need to include
  execution resources as the company grows.
• Founders will still play a significant role in
  the development of the company

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Agenda todays presentation

• Highlights
• New Management
• Q2-05
• Telio Structure
• Market and competition
• Outlook
• QA

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Sales/quarter
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Financials Group- Profit Loss Statement
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Financials Group- Balance sheet - Assets
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Financials Group- Balance sheet Equity
Liabilities
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Financials contd
UNAUDITED

• Q2 2005
• 22 revenue growth quarter on quarter (42
  growth on a comparable basis as Q1 included
  one-of revenue)
• Nearly 1000 revenue growth year on year
• Salesmarketing costs reflect high activity in
  the distribution channels and somewhat higher
  customer acquisition costs.
• Equity Management Associates (EMA) og Kinderhook
  Partners acquired 1.340.000 shares out of which
  670.000 were through a direct placement. This
  represents approx. 7,5 of the company.

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Agenda todays presentation

• Highlights
• New Management
• Q2-05
• Telio Structure
• Market and competition
• Outlook
• QA

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Telio structure final result of work in progress
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Agenda todays presentation

• Highlights
• New Management
• Q2-05
• Telio Structure
• Market and competition
• Outlook
• QA

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Telio is undisputably No.1 VoIP player in Norway

• More than 65,000 total customers (Norway
  Denmark)
• 8,000 new customers over the summer
• Telio maintains its momentum and leading position
  in Norway
• Many small players will not survive much longer
  due to capital contrains
• Compared to next largest competitor (Nextgentel),
  Telios growth during summer is larger than
  Nextgentels total VoDSL customer base

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Telio no. 1 position will be further enhanced
through expansion in distribution and whitelabel
in Norway

• Norway
• Key focus going forward is primary line
  replacement with high value add mobile
  integration services
• Telio target market segment is and will still be
  high volume callers
• Other customer segments in Norway can be served
  by white label
• Distribution channels need to be added (e.g.
  Netthandelen), but TM and www.telio.no will
  continue to be important in the near to mid-term
• Important to strengthen Sales and Market and
  Customer Service departments in order to continue
  the growth (temps in CS)

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and international

• International
• Musimi in Denmark still going strong, but Telio
  will launch the Telio brand name and services
  this year
• Sweden and Holland so far on white-label. Holland
  in operation, Sweden in operations Q1-06
• Early stage white-label discussions going on in
  other countries, but long lead time to close deal
• Other countries are being investigated as part of
  the development of an international expansion
  strategy

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New services will play an important role in
building value add to the customers

• New services will continue to be rolled out
  launched in H1
• Conference Bridge with international dial in
  numbers (8 countries so far, more countries will
  be added)
• PC centric soft phone with video capabilities
• Tid 28. august 2005, 0130 AM lokal tid Sted
  SAS Business class, Bangkok-Copenhagen, SK972
  Posisjon Et sted over diktaturstaten Myanmar,
  9500 moh, 950km/h Samtale til norsk mobilnummer
  Utstyr Laptop med wireless card og Softphone,
  SAS inflight WLAN Provider Boeing Connexions
  high speed satellite internet (på alle SK
  interkontinentale flyvinger) Resultat Noe ekko
  på mottakerside, ellers utmerket samtalekvalitet
• Many new value added services are either in
  development or being researched. Focus on sales
  promoting and mobile integration features

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Agenda todays presentation

• Highlights
• New Management
• Q2-05
• Telio Structure
• Market and competition
• Outlook
• QA

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Telio outlook

• Top and bottom line growth will continue into Q3
• Customer growth somewhat lower in Q3 than Q2 due
  to summer (but growth Q3 still nearly 300
  higher than Q3 last year)
• Reduced SGA spending due to lower customer
  growth
• New distribution channels will be brought online
• New very high value service features will be
  launched in Q3 and Q4

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Agenda todays presentation

• Highlights
• New Management
• Q2-05
• Telio Structure
• Market and competition
• Outlook
• QA