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agenda The Context Transaction Highlights Summary Q&A Appendices

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Presentation on theme: "agenda The Context Transaction Highlights Summary Q&A Appendices"— Presentation transcript:

0 Presentation to Analysts network testing acquisition: significantly expands its data analytics capability Christopher Humphrey, Chief Executive Richard Amos, Group Finance Director 3 october, 2014 © 2014

1 agenda The Context Transaction Highlights Summary Q&A Appendices
© 2014

2 Anite Network Testing software solutions
For drive testing Nemo Outdoor For outdoor benchmarking For remote control Nemo Invex Nemo Commander For autonomous monitoring For indoor benchmarking Nemo Autonomous Nemo Walker Air For post processing & analysis For frequency scanning Nemo Analyze Nemo FSR 1 For indoor / walk-testing For CEM Nemo Handy Nemo CEM Solution Nemo In-Building Coverage Meter Nemo CEM Observer © 2014

3 XCEED platform overview
XCEED Technologies Inc., a US-based wireless networks data analytics software company Multi- vendor Right to Use Model Data Source Intelligence Analytics Network Controllers Network Performance XYNERGY: ENTERPRISE WINDCATCHER: DESKTOP Customer Experience Management OSS Network Optimisation Drive Test (3rd Party) Competitive Benchmarking GIS Network Acceptance Multi- technology SaaS © 2014

4 CoMBINED analytics and post-processing Portfolio
Data Collection Post-Processing and Analysis CEM Solutions Indoor /Handheld /Autonomous Nemo Analyze Desktop solution for analytics and trouble shooting Performance and simplicity for single user environment Optimised for drive-test teams and Nemo tool chain Drive Test WindCatcher For analysis and optimisation, scalable desktop solution All data sources and all test tool vendors supported Feature rich catalogue product for global market Scanners Benchmarkers Xynergy Enterprise level solution for operators BIG DATA approach OSS interface adaptation All data sources supported Integrated CEM and benchmarking data analysis Feature rich, customised to need Data Feeds OSS Probe OSS Probe OSS Probe © 2014 Page 04

5 Expands network testing’s addressable markets
Operational Quality Approx. Current Annual Market Size* £850m £170m £120m £85m £1b Data Analytics** Drive testing CEM** CEM £240m SON £60m £30m £20m Analytics Indoor Scanner Benchmarking ANITE CORE MARKET NON-CORE MARKET Scale only approximate * Source: Anite Internal Estimates (September 2014) ** Currently Addressable Market Estimate for Anite Products © 2014 Page 05

6 Anite + XCEED: An eNHANCEd competitive Position
Drive Testing Optimisation Bench-marking Indoor / Handheld Autono-mous Data Analytics Scanners CEM Ascom SwissQual (R&S) Accuver Actix (Amdocs) Market leader Significant presence Limited presence © 2014

7 Acquisition context – STRONG STRATEGIC rationale
Consistent with Anite’s strategy to reinforce its position as a global leader in wireless test solutions Anite has a good track record of identifying, negotiating, completing and integrating acquisitions Data analytics is a customer-driven extension of Anite’s core network testing market Driven by the increasing complexity of mobile networks, the growth in mobile data traffic and increased demand for network analysis QoE and CEM are becoming key differentiators for operators; network performance and coverage need to be constantly measured, monitored, analysed and optimised. © 2014

8 Acquisition context – STRONG STRATEGIC rationale
Transforms Anite’s strategic market position in network testing market Strengthens our existing product profile with immediate, high quality product endorsements and reference sites Reflects growing trend towards enterprise solutions; growth platform in high value market More complete offering Generates a stronger recurring revenue stream Approx. 45% of Xceed’s revenues are from recurring maintenance, hosting and support; improves the revenue profile of Anite’s Network Testing business Build on Xceed’s success in North America and extend its global product reach via global Network Testing sales channel and distributors Win new Nemo Drive Testing business market share in North America © 2014

9 ACQUISITION Highlights – THE TRANSACTION
Anite has acquired Xceed Technologies Inc. Consideration of $30m paid in cash upon closing on a cash free/debt free basis from Anite’s existing cash resources: $5m retained in escrow Up to $5m additional deferred cash consideration dependent on the achievement of revenue targets in the years ending 30 April 2015 and 2016 The acquisition is expected to be enhancing to Anite’s adjusted earnings per share in the current year Xceed is a good fit with Network Testing Existing management being retained, led by founders Headquartered in the US in Chantilly, near Washington D.C. 55 employees and a small number of overseas contractors Broad customer base with bias towards North American tier one customers Privately held by 5 shareholders, 3 of whom are executive officers © 2014

10 Xceed TECHNOLOGIES INC – FINANCIAL OVERVIEW
Results achieved on equivalent IFRS basis 2013 revenue of $11.8m generating EBITDA of $1.6m Gross assets being acquired amounted to c.$3.5m as at 31 August Net assets on completion are expected to be $1.7m Strong recurring maintenance, hosting and support revenues Revenue and profit improvements expected Win market share in the growth area of data analytics Increased sales of WindCatcher and Xynergy via Nemo’s global sales and distributor network © 2014

11 INTEGRATION PLAN Xceed will be integrated within and will report as part of Anite’s Network Testing business Common Product Portfolio and Roadmap Xceed will become Anite’s ‘data analytics’ centre of excellence Full implementation of Anite systems, financial reporting, controls and processes Develop global sales in short-term through WindCatcher and long-term through Xynergy © 2014

12 ANITE NETWORK TESTING / Xceed combined SALES NETWORK
Switzerland Austria Poland Serbia Italy Hungary Bulgaria Greece, Albania,Cyprus Germany Czech Rep, Slovakia Romania, Moldova Nemo Sales Finland The Netherlands Nemo Support Finland Canada Xceed Europe Xceed Sales USA Nemo Sales Russia Nemo Sales UK Nemo Sales Germany Nemo Sales China Nemo Support USA Nemo Support USA Nemo Sales France Nemo Support France Nemo Support China Spain Jordan,Syria,Lebanon,Iraq Nemo Sales USA Nemo Support USA Nemo Sales Hungary China Israel Xceed SAARC Taiwan Nemo Sales USA Nemo Sales USA Morocco Tunis, Algeria, Libya Saudi Arabia Pakistan Egypt, Sudan Nemo Sales Singapore Caribbean Islands India Vietnam Mexico Nemo Sales UAE Nemo Support Singapore Costa Rica Central America Memo Sales India Nemo Support UAE Thailand Philippines Nemo Sales Colombia Nemo Support India Ecuador Venezuela and Guyanas Ivory Coast Sri Lanka Malaysia Indonesia Peru Nemo Sales Brazil Xceed CALA Nemo Support Brazil Sub-Saharan Africa Chile Brazil Australia Argentina New Zealand Network Testing Distributor Network Testing Sales Network Testing Customer Support Xceed Sales Managers © 2014

13 summary © 2014

14 Summary – EARNINGS AND BUSINESS ENHANCING
In line with Anite’s strategy to invest proceeds of Travel sale in growth opportunities in the wireless market Strengthens the Network Testing business, creates a dedicated supplier with a more complete product offering and significantly increased global sales channel Significantly enhances Network Testing’s product portfolio reflecting the growing trends and operators’ focus on QoE and CEM We are buying significant technology expertise in a developing, high-margin growth market Consideration payable from Anite’s existing cash Earnings enhancing in the first full year of ownership Retain financial resources for further investment in growth opportunities © 2014

15 Thank you Anite plc Ancells Business Park Harvest Crescent Fleet Hampshire GU51 2UZ United kingdom +44 (0) © 2014

16 disclaimer The information contained in this publication was obtained from various sources believed to be reliable, but has not been independently verified by Anite plc (“Anite”). Anite does not warrant the completeness or accuracy of such information and does not accept any liability with respect to the accuracy or completeness of such information, except to the extent required by applicable law. This publication is a brief summary and does not purport to contain all available information on the subjects covered. Further information may be available on request. This publication may not be reproduced for further publication unless the source is quoted. This publication is for informational purposes only and shall not be construed as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription or purchase of securities, or for engaging in any other transaction. This publication is not intended for use by private individuals. © 2014

17 appendices © 2014

18 Acquisition APPROACH REINFORCING ANITE’S POSITION AS A
Selective product and IP acquisitions supplementing future organic growth in both Handset and Network Testing Strict financial criteria Closely related existing and adjacent growth markets Leverage customer relationships, sales channels and technology Likely to be smaller than Propsim Pipeline of opportunities; timing difficult to predict Track record identifying, negotiating, completing and integrating acquisitions REINFORCING ANITE’S POSITION AS A GLOBAL LEADER IN WIRELESS TEST SOLUTIONS © 2014


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