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LogNet Information Technologies PLC May 2014. Innovative software company of customer experience solutions for multiple verticals Core products include.

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Presentation on theme: "LogNet Information Technologies PLC May 2014. Innovative software company of customer experience solutions for multiple verticals Core products include."— Presentation transcript:

1 LogNet Information Technologies PLC May 2014

2 Innovative software company of customer experience solutions for multiple verticals Core products include Billing, Customer Care and eCommerce Major focus on high spending verticals: Strong customer base - Over 35 active customers worldwide Total of 108 employees Revenue of $8.4M in 2013 and projection for $11.5M in 2014 Overview UtilityTravelTelecom

3 Significant Growth Potential LogNet is well positioned to capitalize on the vast opportunity created by the changes in the utility market Utility The strategic partnership with Sabre opens up for LogNet a global reach to thousands of travel agencies Travel The new trend of telecoms to consolidate multiple services will extend the need to LogNet’s multiple-play offering Telecom

4 Revenue surge by 110% between 2010 to 2013 70% of LogNet’s revenue in 2013 derived from Europe and Asia compared to zero in 2007 Expanded its product offering to new verticals resulting in 43% of revenues in 2013 derived from utility and travel compared with 18% in 2010 Key Performance Indications

5 Projected P&L LogNet Information Technologies PLC Profit & Loss - K$ For the Year 201320142015201620172018 Revenue Professional Services 4,566 4,770 6,065 7,740 9,175 11,525 Software 2,563 4,059 5,615 7,770 9,695 11,295 MRR (SaaS) 452 1,650 3,965 5,875 8,685 11,810 Maintenance 804 1,054 1,605 2,115 2,645 3,170 Total 8,385 11,533 17,250 23,500 30,200 37,800 COGS Professional Services 5,870 6,259 8,500 11,500 15,000 18,000 Other & Third Party 357 400 700 1,200 1,750 2,500 Total 6,227 6,659 9,200 12,700 16,750 20,500 Gross Profit 2,158 4,874 8,050 10,800 13,450 17,300 Operating Expenses Sales & Marketing 602 863 1,600 1,900 2,100 2,400 Depreciation 129 156 250 350 450 500 General & Administrative 1,198 1,381 1,600 1,800 2,000 2,200 Research & Development 611 600 1,250 1,500 2,000 2,500 Total 2,540 3,000 4,700 5,550 6,550 7,600 Operating Income -382 1,874 3,350 5,250 6,900 9,700 Finance Expenses 177 88 100 200 250 350 Net Income -559 1,786 3,250 5,050 6,650 9,350

6 Expanding to New Verticals In 2010 LogNet identified a global slowdown in its core telecom business and accordingly invested to expand its product offering to the growing markets of Utility and Online Travel

7 Revenue Breakdown by Vertical

8 Revenue Breakdown by Territory

9 Business Model Selling Perpetual Licenses / SaaS Providing Professional Services Maintenance and Support

10 Deregulation and implementation of smart meters are significantly changing the manner in which utilities are interacting with their customers and generating revenue According to Navigant Research, worldwide revenue from utility billing and CIS software and services will grow from $2.5 billion in 2013 to $5.5 billion in 2020 Utility Market Opportunity This process is forcing utilities to replace their existing billing systems

11 Strong background in telecom billing positioned LogNet to win business with utility providers and municipalities Excellent reference from the leading private utility in the UK LogNet’s platform successfully supported the growth of First Utility from 30,000 customers to over 300,000 with a target of 2 million customers Excellent Utility Reference

12 In 2012 LogNet launched a SaaS platform which provides travel agencies a smooth path to go online with a commercial site within weeks LogNet’s eTravel enables travel agencies to self manage their site using versatile building blocks, rich style, layout, and branding options More than 30 travel agencies are already using the service including 4 out of the top 10 agencies in Israel LogNet’s eTravel Platform

13 Online travel sales will grow from $374 billion in 2012 to $523 billion by 2016 and will account to 50% of the total travel market (eMarketer) Online spending on travel in 2012 accounts for more than a third of total e-commerce (comScore) Technology spending by the travel industry is expected to grow from $60 billion in 2013 to $70 billion in 2017 (Gartner) Online Travel Market Size

14 The eTravel platform was developed as a joint venture with Sabre Inc. The eTralvel service will be sold by Sabre to its existing customer base on a SaaS model at an average price of $1,500 per month Strategic Alliance with Sabre Sabre is the leading technology provider to the global travel and tourism industry with annual revenue of $3 Billion serving 400,000 online and offline travel agents at 55,000 travel agencies

15 OSS/BSS global market was valued at $17 billion in 2012, and is expected to reach $48.54 billion by 2018 (Transparency Market Research) Growing adoption of multiple-play billing systems is expected to drive the industry over the next few years as service providers are consolidating to offer data, voice and multimedia on the same platform The Increasing number of wireless subscribers coupled with high demand for handheld devices such as smartphones and tablets will fuel the growth of the telecom industry in the coming years Telecom Market

16 Provides telecoms to achieve business success in the rapidly changing and highly competitive markets Centralized BSS platform supporting multiple services in a single instance, which enables telecoms to efficiently automate business processes Multiple Play Solution “We have developed a rather intricate business model to compete in a highly competitive market and need to constantly deliver a high-end user experience to both our customers and partners. LogNet’s platform gives us a modern solution for billing and overall customer and partner management that will add a completely new dimension to our business.” Erik Eising, CEO, Infopact, Netherlands

17 LogNet is considering an AIM floatation and raise of 5M GBP Proceeds will be used for: Establishing sales and marketing presence in the US Building a global SaaS platform for utilities and eTravel Accelerating growth in Asia and Africa Working Capital Potential AIM Floatation and Use of Proceeds

18 Mature product suite with strong customer base and excellent references Proved capability to identify and execute the business strategy Broad vertical and geographical expansion Significant growth potential High visibility of recurring revenue Motivated management to maximise the company valuation Summary


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