maxtelcom, presentation
TRANSCRIPT
Value proposition
Beta-testing starts in August 2015.
50 companies interested to take part in beta-testing
2016 expected revenue: $4 mln, 2017: $8-10 mln
Attained $2 mln. in investments from two Venture Funds
MaxTelCom has developed unique fusion splicer that solves a critical problem of fiber
optic network deployment. Competitive advantages strongly rely on innovative technical
decisions.
Convenience• Can be used in any hard-to-get places
(most compact splicer)
• No regular maintenance needed (unique
replaceable cartridges)
Quality• Low splice loss (0.05 dB)
• Dust-, water-, shock proof
(innovative design)
Availability• Low price: $2 500
• The lowest ever OPEX on the
market (OPEX reduction up to
70%)
Take part in investment round: $2,200,000 (around 25% share)
Ticket is discussed individually
Exit:
Strategic investor buys venture funds’ share
IRR = 50-60%
March May July September November January March
Preparing for small scale production
Preparing for large scale production
Small scale
production (20 pcs)
Preparing for assembly production
Beta-testing
Assembly production
Large scale production (2 000 pcs in the first year)
First sales. Break-even point
$110,000 $70,000 $45,000
$650,000 $850,000
$250,000 $120,000
$40,000
2015 2016
2009*
2013*
$300 mln
$467 mln
$1000 mln2020*
* ElectroniCast Fiber Optic Fusion Splice Equipment Global Consumption Market Forecast (link)
Our short-term aim is
to become TOP-5
competitor by 2018
By 2018:
Market in APAC will
double;
Europe market will be
1,5 times bigger;
Average CAGR: 10%.
Slow fiber optic spread
due to expensive and hard
process of fiber optic
network deployment
Demand for higher speed
broadband connections
High skill requirement
Devices are designed to be
used by professionals
Low automation level
More than 50% of splicing
processes are manual
Difficult to work effectively in
hard-to-reach places
Due to large scale and big weight
(e.g.: Jilong 300T (3,2 kg)
Fiber Holders
Easy to handle
Functional keysSmall and lightweight
(117x159x52; 835 gr.)
Designed to be used in
hard-to-reach places
Replaceable
fusion cartridges*
No regular maintenance needed
Can be replaced easily
Can easily be used by
non-professionals
* Cartridges contain high-voltage electrodes, mirrors and optical fiber basing elements
User-friendly interface
TFT 4,3" screen
AFS-10 is the best solution in terms of usage convenience, quality and availability to buy.
Designed specially for installations of FTTH networks
Параметр MTC AFS-10Sumitomo
QH201e-VSFITEL S123Cv2 Fujikura 12S
Ilsintech
SWIFT F3
Price, $ 2 500 5 100 6 500 4 795 6 500
100 splices cost, $ 3.37 5.00 7.23 6.17 9.73
Splice loss, dB (SM) 0,05 0,05 0,05 0,05 0,03
Weight, g (with battery) 835 860 1 600 776 1 200
Battery capacity, cycles splice+heat 150 100 70 100 140
Dimension, WxLxH mm, Volume117x159x52 110x140x76 159x231x104 121x162x57 140x179x87
(967 см3) (1170 cm3) (3820 cm3) (1117 cm3) (2180 cm3)
15 years work experience
in the fiber optic industry
Maxim Gladilov 39 years, in industry since 1998;
Previously, the technical officer
of a major producer of passive equipment
for fiber optic networks (SvyazPromOptica);
Headed branch of Ilsintech in Russia;
Founded service centers for Fujikura, Ericsson,
Ilsintech;
More than 10 years experience in optics
Mikhail Kolosyanko 55 years old, in industry since 1996;
Headed fiber optic cable and optic passive
equipment factories;
Founded service center network for fiber
optic installation devices of Fujikura, Photom,
ANDO and YOKOGAWA companies;
More than 30 years experience in electronics
Evgeny Dumalkin
Former vice-president Altimo (L1);
Altimo’s main assets: Vimpelcom
and Turkcell
Sergei Bondarev Founder;
Venture investor;
Serial entrepreneur
Oleg Movsesyan
CEO at MSU Science Park;
Professional investor
AFS-10 proof of concept
done
AFS-10 prototype
developed
AFS-10 pilot device
developed
2012 2013 2014
$350,000 $900,000 $1,000,000
And other 40 companies…
70% of Russian GPON
subscribers20% of Russian GPON
subscribers
Leading European telecommunication test
and measurement equipment producer
Largest Russian CSP
2015
To develop next model prototype: AFS-10S
Signal loss: 0.02 dB Core alignment
Key differences between
AFS-10 and AFS-10S
in the same dimension
Profit & Loss (Income) Statement unit 2015 2016 2017 2018
Income $ 1 299 230,8 5 277 842,3 10 325 745,4 21 385 786,2
Fusion splicers sales $ 1 153 846,2 4 124 038,5 7 798 423,1 15 995 769,2
Consumables sales $ 30 000,0 741 400,0 1 747 480,0 3 790 440,0
Services $ 115 384,6 412 403,8 779 842,3 1 599 576,9
Cost of Goods Sold $ (530 829,4) (1 915 132,1) (3 750 575,9) (7 229 479,3)
Salaries $ (198 714,1) (437 170,9) (721 332,0) (769 420,8)
Materials $ (296 500,0) (1 066 030,4) (2 085 965,4) (4 479 915,4)
OEM services $ (7 692,3) (15 384,6) (30 769,2) (46 153,8)
Rent $ (12 923,1) (25 846,2) (38 769,2) (38 769,2)
COGS of consumables $ (15 000,0) (370 700,0) (873 740,0) (1 895 220,0)
Gross Profit $ 768 401,3 3 362 710,2 6 575 169,5 14 156 306,9
Administrative expenses $ (133 198,3) (199 913,7) (283 235,6) (455 094,1)
Selling & General expenses $ (26 153,8) (41 538,5) (56 923,1) (56 923,1)
EBITDA $ 609 049,2 3 121 258,0 6 235 010,9 13 644 289,7
Depreciation & Amortization $ (113 846,2) (135 384,6) (156 923,1) (178 461,5)
EBIT $ 495 203,0 2 985 873,4 6 078 087,8 13 465 828,1
Income tax $ - - - 2 693 165,6
Net profit $ 495 203,0 2 985 873,4 6 078 087,8 10 772 662,5*
* Tax exemption because of company’s innovative status. Lasts until income is less than $15 mln
MaxTelCom is placed in Top 50 of Russian
startups (Russian Startup Rating)
MaxTelCom was assigned rating*
MaxTelCom is ranked in
Top 100 of the World’s startups (SLUSH 2014)
MaxTelCom is named the best
investment opportunity among all RVC
portfolio projects
(III Annual Partner Conference, Moscow)
* Corresponds to the highest successful realization probability (RSR methodology) (link)
Russians have created a
fusion splicer*
Fusion splicers will be produced in
Russia*
MaxTelCom” enters the market
with a new fusion splicer*
MaxTelCom has developed a new technology for fiber-optic networks
TV report about MaxTelCom*
Arkady Dvorkovich, Russia’s
Deputy Prime Minister,
tested out MaxTelCom’s
device
Sergey Sobyanin, the Mayor of
Moscow, and Anatoly Chubais,
Rosnano’s Chairman of the Board,
were interested in the company’s
product
* Article in Russian
Moscow Government
Russian Venture Company
Moscow State University
Science park
Skolkovo