company presentation may 2005
DESCRIPTION
The Vollvik Group. Company Presentation May 2005. Norway’s leading low-cost mobile operator. Picture courtesy of NOKIA. Agenda. Short 2004 1q-05 Financials Future. Status. The acquisition of Sense has been the key focus of the management now - PowerPoint PPT PresentationTRANSCRIPT
Company Presentation May 2005
Picture courtesy of NOKIA
Norway’s leading low-cost mobile operator
The Vollvik Group
Agenda
• Short 2004
• 1q-05 Financials
• Future
Status
• The acquisition of Sense has been the key focus of the management now
– Negotiation of the deal and presenting to investors, especially through November
– Due diligence and Post Merger Integration (PMI) planning, especially in November and December
– PMI intense from Jan 1st to end February, choosing common system platforms, designing brand and marketing strategies, and dis-engaging of Sense employees
– Negotiations with Telenor and NetCom from December to mid-February
• On the positive side, the PMI is developing according to plan, and the business combination is yielding good results on the cost synergy side
• On the negative side, the absorption of management that the deal and the PMI demanded resulted in a slow-down in customer growth due to little focus on sales, especially in the period Dec-Jan-Feb
Chess has delivered substantial revenue growth…
Revenue development 1998-2004NOK million
Chess:
Revenue 2003 ca. 330 mill.
Revenue 2004 ca. 485 mill.
Sense:
Revenue 2003 ca. 618 mill.
Revenue 2004 ca. 613 mill.
•* Includes NOKm 30 from GSM Sentrene AS, where the activities have been shut down. Adjusted (organic) growth rate H1/03 to H1/04 of 79%
0
100
200
300
400
500
600
700
1998 1999 2000 2001 2002 2003 2004
ChessSense
…and increased profitability
EBIT development 1998-2004NOK million
•* •**
-30
-20
-10
0
10
20
30
40
50
60
1999 2000 2001 2002 2003 2004
ChessSense
Key figures 2004 whole year
Vollvik Gruppen Sense Total
Revenue 483,7 mnok 613,9 mnok 1097,6 mnok
COGS 311,2 mnok 350,8 mnok 662,0 mnok
EBITDA 55,7 mnok 63,0 mnok 118,7 mnok
EBIT 40,9 mnok 55,5 mnok 96,4 mnok
EBIT Margin 8,5% 9,0% 8,8%
One time charges in 2004
• Non Recuring Items 2004 Q4
• GSM Sentrene AS 3.6 mnok 0.9 mnok
• Deprecation of Invision ( CRM ) 2.6 mnok 2.6 mnok
• Deprecation, changes of accounting principle 0.9 mnok -
• Finance cost loan 340 mnok 3.5 mnok 3.5 mnok
•
• The opening balance for “the new Vollvik Group”, will include restructuring cost related to the integration of Sense in 2005, with some 10 mnok.
Section II1q05 Financials
Key figures 1q 2005
Proforma Statement Sense and Chess - whole group
NOK mill 1q 2005
Operating revenue 243,1COGS 140,6Contribution 102,5
Salaries 18,2Other operating costs 47,2
EBITDA 37,1
Depreciation 4,4
EBITA 32,7
Amortization of goodwill 16,8
EBIT 15,9
Net interest expense -3,2
EBT 12,7
Key data 1q /4q - 2005
Chess Sense
Number of subscribers
In total
Q1: 148.005
Q4: 135.980
Q1: 208.400
Q4: 219.605
Number of post paid subscribers Q1: 128.264
Q4: 118.377
Q1: 159.455
Q4: 164.153
Net adds during 4q04 Q1: 12.025
Q4: 7.884
Q1: - 11.205
Q4: - 15.184
SAC per gross add Q1: 191
Q4: 210
Q1: 443
Q4: 503
ARPU 1q-05 310/ 136 220/ 88
Gross margin 1q/4q-04 Q1: 39,9%
Q4: 31,0%
Q1: 44,4%
Q4: 41,0%
Churn (annualised) based on 1q05 19,8% 41,5%
Balance sheet 31 March 05
• Total fixed assets NOK 472,3 mill
• Goodwill NOK 253,7 mill
• Cash on hand NOK 148,7 mill
• Debtors Accounts receivable NOK 172,4 mill
• Short term debt NOK 204,3 mill
• Long term debt NOK 344,9 mill ( Bank )
• Equity NOK 257,6 mill
Key shareholders in Vollvik Gruppen
Shareholders as of 01/5-05 Shares Ownership (%)
Idar Vollvik 45 286 912 28.13
Chess Holding AS 27 748 327 17.24
Reitan Gruppen AS 17 434.000 10.83
Marshall Wace LLP 17 351 979 10.78
HBK – London 10 000 000 6.21
Oppenheim ACA Concept 10 000 000 6.21
Orkla ASA 7 000 000 4.35
Grieg Holding 3 111 160 1.93
Lehmann Brothers 3 046 265 1.89
King Holding AS 1 250 000 0.78
Svein Johnsen 1 000 000 0.62
MP Pensjon 1 000 000 0.62
Jarle Nordnes 1 000 000 0.62
Bras AS 1 000 000 0.62
Sum, top 14 shareholders 146 228 643 90.85
Other 99 shareholders 14 731 273 9.15
Total 160 959 916 100.0
Section III Status/ Future
Our customers are very happy
Opportunities
• One net-operator strategi
• Build own City-nets and
• Become an operator, with 1/3 of roaming income
• IP-telephony
• International discussions
• Bee a part of a trippel play company (quatro play )