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Investor Presentation_2012_Nov - Public
- 2. Introduction Convenient, value based roaming product with full functionality globally Users keep existing phone numbers and handsets while accessing required services Accessible in 230 countries leveraging existing carrier infrastructure, ensuring quality Currently provides voice, SMS and data over both 2G and 3G networks Headquartered in Canada with redundant network infrastructure located in both Europe and North America, Roamly combines IP-Protected technology and processes and a carrier grade back-end to achieve our core mission Private Ontario-based company in business since 2009, currently with 24 employees IP Protected Worldwide Mobile Roaming Solution 2
- 3. Investment Highlights Large market opportunity, with immediate savings for Roamly users Discounts over incumbent providers of up to 80%, prices competitive with travel SIMs Intercontinental travel is increasing with global roaming spend of $45+ billion in 2012 Intellectual property of both hardware and software technology is patent pending Four technical patents applied for or in-process & one design patent pending in-process Technology is fully functional and in production Ongoing platform upgrades to sustain increased subscriber volumes Existing roaming aggregator and carrier partner relationships are in place Predominantly a service business with ``sticky`` recurring revenue base and variable costs with low capital investment requirements Focus on growing business / corporate industry Service on as-used basis; prepaid model with online charging reduces fraud & credit risk Deeply experienced management team and supportive sponsors 3
- 4. There are no existing, cost-effective, elegant roaming solutions in the market today The Problem Incumbent Carriers Travel SIM Providers VOIP SolutionsLocal SIM Card Purchase Prohibitively Expensive Inconvenient, lose your number Lose your number, multiple switching required Poor quality, expensive data roaming 4
- 5. Feature Local SIM Card (i.e. Vodafone) Call Internationally For Lower Roaming Rates Available Use of SMS, MMS, and Data Carrier Quality of Service (Not VOIP) Make / Receive Calls on Your Own Number Convenience of 1 Number for all Locations Easy Configuration with Current Carrier Can Be Used for Long Distance in Local Market Single Installation Wirelessly Provision IMSI Roamly offers the only carrier grade solution where the user does not change their behavior, their number or their handset, but still has access to discounted rates The Solution A Unique Product Offering VOIP Provider (i.e. Skype) Travel SIM Provider (i.e. Truphone) 5
- 6. Value Proposition Roam Like HomePrice Quality / Convenience Keep phone Keep number Keep apps & data profile Travel SIM Providers World SIM Roaming: Lose number Multiple Installation No Localised Number Local SIM Card Purchase Lose number Need to purchase card VoIP Solutions Poor quality Expensive when roaming Incumbent Carriers No localised number Prohibitively expensive Localised number Single voicemail for all calls 6 Roamly offers the same convenience as the Incumbent Carrier, at a discounted price
- 7. Incumbent Carrier Response 7 Roamly provides increased access to high margin inbound roaming revenue to its carrier partners Target the 2nd - 4th player in each regional market. These players usually have less than 10% market share and are very interested in additional inbound revenues with no acquisition cost. Roamly partners with aggregators to gain access to Roaming Hubs to take advantage of excess available volume provided by second tier carriers Steering relationships between Tier 1 carriers ensures that Tier 2 and 3 players will continue to have trouble attracting inbound roaming revenue (i.e.. AT&T customer coming into Canada will always be steered to the Rogers network by AT&T, leaving Bell/Telus with no access to the AT&T incoming customer base) Roaming fees on average make up less than 5% of a National Carriers revenue and the market is regionally fragmented with globally competitive players. The potential for a coordinated response by hostile Tier 1 Carriers on a global basis is unlikely.
- 8. Proprietary, patent pending SIM Card Overlay design for SIM, Micro SIM and Nano SIM configuration Unique firmware allows Roamly to provision virtual phone numbers for any partner network worldwide, local numbers for destination countries and allows subscriber to maintain their home number IP Protected Patented Technology Long term agreements in place with numerous Carriers and aggregators allowing Roamly access to wholesale rates for Voice, SMS and Data Utilizing recognized industry standard vendors for billing, signaling and switching equipment Custom built in-house over the past four years Provides ability to interact with both SIM Card and network in an advanced way that is extremely difficult to replicate Set call forwarding with location based DIDs Provision IMSIs based on location Proprietary Overlay SIM Carrier Grade Interconnects IP Protected Application Server How It Works Three Key Pieces 8
- 9. Roamly already covers 96.6% of the worlds population today Where It Works 9
- 10. Functionality Roamly has created a SIM overlay consisting of a powerful Microcontroller processor mounted onto Capton FCB via thermo compression Roamly has improved the manufacturing process to allow for a smaller Microchip and reduced thickness (finalized product has been reduced to 280 micrometre) over the past two years resulting in our 3rd generation of SIM design pictured below. Roamly has one omnibus PCT patent-pending on its entire business process, and three specific patent applications in process relating to the Application Server and Call Forwarding Technique Compatibility Works with the majority of GSM based phones today MicroSIM and NanoSIM form factors are in development (expected delivery in Jan & May 2013) Successfully tested in 2G, 3G, HSPA and LTE network environments Blackberry data functionality under implementation 201220112010 SIM Functionality 10
- 11. TORONTO Application Server IMSI Provisioning Billing Authentication Automatic Call Forwarding Call Control Switching Equipment Traveller Switching Equipment Switching Equipment Roamly Ecosystem 11 Local Carrier Partner EUROPE NORTH AMERICA Local Carrier Partner ASIA PACIFIC Local Carrier Partner Traveller Traveller Database User Accounts Billing Information Customer Care TORONTO
- 12. SIM hardware in production (125K units to be delivered in Q4 2012) MicroSIM design complete, factory tooling and prototypes underway (expected delivery in Q4 2012) Application Server operational (250K subscriber capacity) Carrier grade signaling, switching and billing platform selected (implementation underway for service with capacity of 2MM users) Firmware design complete and operational with ability to dynamically assign IMSI and MSISDN Over The Air Blackberry connectivity under implementation Technical Marius Armeanca CTO Detailed testing and acceptance program under development Product tested in 90+ handsets and 40+ regions Service delivery model determined and under development Multiple carrier and aggregator interconnections completed In-house programming hardware and production line developed Operational Achievements To Date 12
- 13. Intercontinental roaming is expensive no matter where in the world you reside Target market: high margin intercontinental travel 192MM trips in 2011 Post-installation: additional use in intra-continental travel 752MM trips in 2011 Europe Million trips per year: 439 regional + 61 intercontinental Savings with Roamly: 40%-70% to N.A. 60% - 90% to Asia Americas Million trips per year: 98 regional + 34 intercontinental Savings with Roamly: 40% - 80% to Europe 50% - 70% to Asia Africa Million trips per year: 23 regional + 22 intercontinental Savings with Roamly: 60% - 90% to Asia 50% - 80% to N.A. Middle East Million trips per year: 25 regional + 29 intercontinental Savings with Roamly: 40% - 70% to Europe 60% - 90% to N.A. Asia Million trips per year: 167 regional + 46 intercontinental Savings with Roamly: 50% -80% to Europe 50% - 80% to N.A. Average Spend on Business Travel Canada Corporate User: $1,000+ / yr Intra-EU Retail: $800 / yr Australia: Corporate $1,000 / trip Roam4Less: Corporate $800 / yr Sources Include: Roam 4Less Sales Team, CCMI - Trends and Best Practices to Control International Roaming Costs, UNWTO Tourism Highlights 2012 Edition, Australian Vroam Global, European Commission Roaming Report The Market Is Massive 13 CCMI Study: Corporate $1,000 per month for International Traveler for 37% of Fortune 1000
- 14. Global Roaming Service Market The Opportunity Roaming Market is Massive : Visiongain predicts the market for roaming service revenues will reach $66.9 billion by 2016 A fragmented group of discount roaming providers compete in this space, offering 60 80% discount to incumbent providers It is a proven market with no complete solution, until now! 14
- 15. Roamly vs. Competition Exorbitant Roaming Prices Lead to an Underserved Market: Only 7% (371 million) of the total global mobile subscriber base regularly uses roaming. Access to Roamly cost savings will expand the market. UK Customer Voice $2.60 $0.50 SMS $0.63 $0.50 Data $1.55 $0.70 Australian Customer Voice $4.47 $1.50 SMS $0.75 $0.35 Data $15.86 $0.84 Canadian Customer Voice $1.25 $0.50 SMS $0.25 $0.15 Data $5.00 $1.00 Traveling to India Traveling to China Traveling to Mexico Average Savings Average Savings Average Savings 52% 70% 60% 15
- 16. Roamly Savings vs. vs. Travel SIM $98 $6 $35 $28 $9.6 $1.2 $142 $35 Roamly ROI Is Instant The Roamly ROI is instant to both the consumer and Roamly In most cases, the payback period on a Roamly SIM is one trip US Customer Travel Pack Travel SIM Voice $0.99 $0.53 $0.50 SMS $0.50 $0.43 $0.15 Data $0.25 $0.72 $0.68 Traveling to Germany Savings / trip In this example, Roamly gross margin is 53.0% (1) AT&T World Travel Pack requires a minimum data bundle of 120 MB for $30. 1 16 Savings / trip Avg. Trip Usage Voice 200 MIN SMS 100 SMS Data 30 MB
- 17. Target Market - Overview Business Corporates: Typically make 6 international business trips per year (3-5 days per trip) CIO wants to minimise disruption users, minimise training/support, with seamless access to business app/tools. CFO wants cost reductions without losing field productivity, and reports for expense and financial management. End users (Sales, Consultants, Field Support, C-Suite) want minimum disruption and want to use their existing devices and applications, remain in contact on their number with minimum inconvenience and downtime. Business Personal (SOHO): Typically make 3-6 international trips per year (3-5 days per trip) Owner/CEO manages purchase decisions for himself and staff. Has no IT department so Product needs to be easy buy, set up and use, reliable, with minimal change to current behaviour, savings need to be compelling to switch from MNO. Frequent Personal (Affluent Consumer): Typically make 2 trips per year (7-10 days per trip) Travels regularly, roaming is cost prohibitive so keeps tight constraint on phone usage when abroad. Sometimes turns roaming data off or may have voice only device when travelling, alternative solutions very inconvenient. Product needs to be easy buy, set up and use, reliable with cost effective service charges to stay in touch with folks back home and be able to communicate in country being visited (hotels, transport, maps, guides, etc.) Targeting the Roaming Literate
- 18. Distribution Channels Across Segments 18 Targeting the Roaming Literate Customer across four segments: Business (Corporate), Consumer, Business (SMB) and M2M Roamly will address these segments through the following channels: Distribution Partner Leverage existing relationships with customer segments Target by profile related to customer segment such as Travel Industry or Telecom Expense Management, Mobile Device Management provider Online Will sell to subscribers in major regions directly via website Leverage distributor sites with micro link to Roamly site for signup Leverage web portal for separate distributor signup (self serve ad support, ordering) MVNO Target MVNOs with limited roaming agreements in their territory to sell to Roamly customer segments Direct Sales: Roamly will target on an opportunistic basis in North America and Europe utilizing experienced sales force and deep management telecom connections Will not target direct sales outside of main operating geography due to language, regional profile and sales cycle timeline complexity
- 19. 12 Month Milestones November Launch Fully functional website with e-commerce platform, consumer interface and customer support system via live chat Integrated Voicemail Beta customers in NA + EU Dec 2012 MicroSIM seeding prototypes Mobile application completed for iPhone, Android and Blackberry Signed customers in NA + EU Beta customers in SA, APAC and MENA Dec 2013 Fully functional carrier grade system from ZTE capable of supporting 2.0MM customers Functional MicroSIM and NanoSIM versions of product Signed customers in all regions Sales goal of 225K units Interconnect agreement in place with carrier partner in each of the seven major global regions 19