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Www.anite.com PRESENTATION TO ANALYSTS NETWORK TESTING ACQUISITION: SIGNIFICANTLY EXPANDS ITS DATA ANALYTICS CAPABILITY © 2014 CHRISTOPHER HUMPHREY, CHIEF.

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Presentation on theme: "Www.anite.com PRESENTATION TO ANALYSTS NETWORK TESTING ACQUISITION: SIGNIFICANTLY EXPANDS ITS DATA ANALYTICS CAPABILITY © 2014 CHRISTOPHER HUMPHREY, CHIEF."— Presentation transcript:

1 www.anite.com PRESENTATION TO ANALYSTS NETWORK TESTING ACQUISITION: SIGNIFICANTLY EXPANDS ITS DATA ANALYTICS CAPABILITY © 2014 CHRISTOPHER HUMPHREY, CHIEF EXECUTIVE RICHARD AMOS, GROUP FINANCE DIRECTOR 3 OCTOBER, 2014

2 AGENDA 1.THE CONTEXT 2.TRANSACTION HIGHLIGHTS 3.SUMMARY 4.Q&A 5.APPENDICES © 2014 Page 01

3 ANITE NETWORK TESTING SOFTWARE SOLUTIONS For drive testing Nemo Outdoor For indoor / walk-testing Nemo Handy For outdoor benchmarking Nemo Invex For indoor benchmarking Nemo Walker Air For frequency scanning Nemo FSR 1 For remote control Nemo Commander For autonomous monitoring Nemo Autonomous For post processing & analysis Nemo Analyze For CEM Nemo CEM Solution Nemo CEM Observer Nemo In-Building Coverage Meter © 2014 Page 02

4 XCEED PLATFORM OVERVIEW Data Source Network Controllers OSS Drive Test (3rd Party) GIS Multi- technology Multi- vendor XYNERGY: ENTERPRISE WINDCATCHER: DESKTOP XYNERGY: ENTERPRISE WINDCATCHER: DESKTOP Intelligence Network Performance Customer Experience Management Customer Experience Management Network Optimisation Competitive Benchmarking Competitive Benchmarking Network Acceptance SaaS Right to Use Model Analytics © 2014 Page 03 XCEED TECHNOLOGIES INC., A US-BASED WIRELESS NETWORKS DATA ANALYTICS SOFTWARE COMPANY

5 Drive Test Indoor /Handheld /Autonomous Benchmarkers COMBINED ANALYTICS AND POST-PROCESSING PORTFOLIO CEM Solutions 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 Scanners Data Collection Post-Processing and Analysis WindCatcher For analysis and optimisation, scalable desktop solution All data sources and all test tool vendors supported Feature rich catalogue product for global market 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 © 2014 Page 04

6 £30m £20m Scanner Drive testing Indoor ANITE CORE MARKETNON-CORE MARKET Approx. Current Annual Market Size* Scale only approximate * Source: Anite Internal Estimates (September 2014) ** Currently Addressable Market Estimate for Anite Products £170m OperationalQuality £60m Benchmarking £850m CEM £85m CEM** £1b SON £240m Analytics Data Analytics** £120m EXPANDS NETWORK TESTING’S ADDRESSABLE MARKETS © 2014 Page 05

7 ANITE + XCEED: AN ENHANCED COMPETITIVE POSITION Drive Testing Optimisation Bench- marking Indoor / Handheld Autono- mous Data Analytics ScannersCEM Ascom SwissQual (R&S) Accuver Actix (Amdocs) Market leaderSignificant presence Limited presence © 2014 Page 06

8 1.Consistent with Anite’s strategy to reinforce its position as a global leader in wireless test solutions 2.Anite has a good track record of identifying, negotiating, completing and integrating acquisitions 3.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. ACQUISITION CONTEXT – STRONG STRATEGIC RATIONALE © 2014 Page 07

9 4.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 5.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 6.Build on Xceed’s success in North America and extend its global product reach via global Network Testing sales channel and distributors 7.Win new Nemo Drive Testing business market share in North America ACQUISITION CONTEXT – STRONG STRATEGIC RATIONALE © 2014 Page 08

10 ●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 ACQUISITION HIGHLIGHTS – THE TRANSACTION © 2014 Page 09

11 ●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 2014. 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 XCEED TECHNOLOGIES INC – FINANCIAL OVERVIEW © 2014 Page 10

12 ●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 INTEGRATION PLAN © 2014 Page 11

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

14 SUMMARY © 2014Page 13

15 SUMMARY – EARNINGS AND BUSINESS ENHANCING 1.In line with Anite’s strategy to invest proceeds of Travel sale in growth opportunities in the wireless market 2.Strengthens the Network Testing business, creates a dedicated supplier with a more complete product offering and significantly increased global sales channel 3.Significantly enhances Network Testing’s product portfolio reflecting the growing trends and operators’ focus on QoE and CEM 4.We are buying significant technology expertise in a developing, high-margin growth market 5.Consideration payable from Anite’s existing cash 6.Earnings enhancing in the first full year of ownership 7.Retain financial resources for further investment in growth opportunities © 2014 Page 14

16 www.anite.com © 2014 ANITE PLC ANCELLS BUSINESS PARK HARVEST CRESCENT FLEET HAMPSHIRE GU51 2UZ UNITED KINGDOM +44 (0) 1252 775200 Page 15 THANK YOU

17 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 Page 16

18 APPENDICES © 2014Page 17

19 ●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 ACQUISITION APPROACH REINFORCING ANITE’S POSITION AS A GLOBAL LEADER IN WIRELESS TEST SOLUTIONS © 2014 Page 18


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