rkn corporate deck april 2013 lg edits 4-10-13 v5 · • social media, data, messaging, voice, etc....

Corporate PresentationTSX: RKN

April 2013

Disclaimer

This presentation does not constitute or form part of any offer for sale or subscription or any solicitation for any offer to buy or subscribe for any

securities or to form the basis of or be relied on in connection with any contract or commitment. This is not, and under no circumstances is to be

construed as, a prospectus, an offering memorandum, an advertisement, an offer, an invitation or a solicitation to enter into a transaction or

other investment business.

No representation or warranty is made to the fairness, accuracy, completeness or correctness of these materials. Each recipient or reader must

make their own investigation and assessment of the matters contained here. In particular, no representation or warranty is given, and no

responsibility or liability is accepted, as to the achievement or reasonableness of any future projections or the assumptions underlying them, or

any forecasts, estimates, or statements as to prospects contained or referred to in these presentation materials.

Certain statements may constitute “forward-looking” statements and are prospective. Forward-looking statements are neither promises nor

guarantees. They involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or

achievements of Redknee to be materially different from any conclusion, projection or future results, performance or achievement expressed or

implied by such forward-looking statements. Actual events may differ materially from expectations embodied in forward-looking statements and

depend on a number of factors and risks, some of which may be beyond the company's control. New risk factors may arise from time to time. It

is not possible to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results,

performance and achievements of Redknee to be materially different from those contained in forward-looking statements. These risks and

uncertainties include rapid technology change, changes in customer architecture and equipment deployment requirements, the risks and

uncertainties of new product introductions, economic and commercial conditions, exchange rate fluctuations, competitive forces, dependence

on key supplies and like factors that may cause actual results, performance or achievement to differ materially from those implied by such

forward-looking statements. Given these risks and uncertainties, investors and readers should not place undue reliance on forward-looking

statements as a prediction of actual results.

No responsibility or liability is accepted by any person for any loss howsoever arising from any use of, or in connection with, these presentation

materials or their contents or otherwise. In issuing these materials, Redknee does not undertake any obligation to update information or to

correct any inaccuracies which may become apparent in these materials. These materials are supplied to you for your own information and may

not be distributed, published, reproduced or otherwise made available to any other person, in whole or in part, for any purpose. In particular,

they should not be distributed to or otherwise made available to persons where such distribution or availability may lead to a breach of any law

or regulatory requirements.

© Copyright Redknee Inc. 20132Corporate Presentation TSX:RKN

Redknee Solutions (TSX:RKN) Key Stats

11.6

15.1

21.019.5

24.3

28.3 28.2

37.2

48.851.3

47.1

57.8 56.9 57.7

2007 2008 2009 2010 2011 2012 TTM

$ Millions USD

Stock Price 4/09/13 C$3.12

52 Week Low/High C$1.08 – $3.61

Shares Outstanding 79.6M

Public Float, est. 47.6M

Avg Daily Vol (3 mo) 350,852

*All revenue figures in U.S. dollars unless

otherwise noted; ¹Capital IQ; ²Represents

Redknee’s founders, execs, board of

directors and long-time employees, per

most recent filings & company data

Annual Revenue

mrq = most recent quarter; ttm = last twelve months

mrq & ttm figures as of FY Q1 2013 ended Dec 31, 2012

Cash (mrq) $32.3M

Total Assets $76.7M

Long-Term Debt $5.5M

Institutional Holdings¹ 15%

Insider Holdings, est.² ~35%

Headcount 417

Founded / TSX Listed 1999/2009

Fiscal Year End Sept 30

Revenue (ttm) $57.7

EBITDA (adjusted) $6.9M

Book-to-Bill 1.06

Backlog (mrq) $64.0M

Recurring revenue (ttm) 49%

Market Capitalization C$248.4M

Enterprise Value (mrq) C$221.6M

EV/Revenue (ttm) 3.8x

3Corporate Presentation TSX:RKN

What We Do

Corporate Presentation TSX:RKN 4

� Largest independent provider of next-gen real-

time converged billing, customer care &

analytics software for service providers

• On-premise & cloud-based solutions

� Charging & policy for all transactions

• Social media, data, messaging, voice, etc.

� Rating, charging & customer care for

subscriber types across any communication

platform:

• Mobile, fixed, broadband, cable & satellite

� 200+ customers across 90+ countries

� 100+ patents filed with 35+ granted

Redknee Addresses The Full Billing Spectrum

Corporate Presentation TSX:RKN

5

Satellite

Fixed Broadband

Mobile Cable

� Billing for voice, messaging,

content & data across virtually

any communication platform

� Enables service providers to

offer cross service promotions

& bundles

� Provides tools to deliver a

personalized user experience

to all subscribers & market

segments, helping operators to

remain competitive

Redknee’s Real-Time Converged Billing

PoS & Order

Management

Customer

Usage

Customer

Care

Real-time

Service Policy

Interactive Business

Intelligence

Real-time

Promotions

Customer Self-Care

Loyalty

Programs

Invoicing

Real-Time

Billing


Key Benefits of Redknee’s Solutions


Increase Revenue per Subscriber

� 20-30% increased usage through real-time promotions

� Flexible bundles & charging options to address

subscriber sub-segments

� Shape subscriber behavior: educate, segment,

recommend

Decrease Subscriber Churn & Cost to Support Subscribers

� Reduce churn by 25%+

� Eliminate bill shock & provide real-time alerts

� Reduced subscriber support costs by 50%+

Decrease Total Cost of Ownership (TCO)

� SaaS & private cloud, and on-premise delivery options

� Multi-tenant architecture: postpaid, prepaid &

corporate, multiple brands & currencies

� Fully configurable product replacing uncompetitive

legacy software

High-Growth Market Opportunity

Corporate Presentation TSX:RKN 8¹Analysys Mason, 2011

$1.5B$1.7B

$2.0B$2.2B

2012 2013 2014 2015

Real-Time Charging Worldwide Industry

Growth¹($ Billions USD)

“Business support from

solutions, such as

Redknee’s billing and

customer care system

running on the Microsoft

SQL Server, Windows

Server, and

Microsoft Dynamics CRM

stack, are well suited to

address today’s changing

business environment.”

Karl Whitelock, Director Strategy

Stratecast (Frost & Sullivan)

May 2012

“Business support from

solutions, such as

Redknee’s billing and

customer care system

running on the Microsoft

SQL Server, Windows

Server, and

Microsoft Dynamics CRM

stack, are well suited to

address today’s changing

business environment.”

Karl Whitelock, Director Strategy

Stratecast (Frost & Sullivan)

May 2012

Real-Time Billing Drivers


Next Two Years:

� Mobile data growth will drive

spending on real-time billing

platforms in all regions

� Growth in subscribers segments

driving investment in new flexible

product platforms & upgrades/

expansion of existing platforms

� Innovation in tariffs & bundles

will drive replacements of and

upgrades to legacy in-network

platforms

Global Customer Base


+90 Countries

+200 Service Providers

+2B Subscribers Served

+85M Subscriber

Capacity per

Deployment

+90 Countries

+200 Service Providers

+2B Subscribers Served

+85M Subscriber

Capacity per

Deployment

Reading, UKToronto,

Canada

Madrid, Spain

Berlin, Germany

Wroclaw, Poland

Beirut, Lebanon

Jakarta,

Indonesia

Pune, India

Dubai, UAE

Johannesburg,

South Africa

Rabat,

Morocco

Manila,

Philippines

Bangalore, India

Redknee’s Global Presence

Redknee Main Locations


Increasing depth and breadth of Redknee’s product and

service offerings through expanded distribution channels

Global Partnerships

Extends global penetration offering increased capabilities to worldwide communications service providers through Redknee's real-time converged billing solutions

Extends global penetration offering increased capabilities to worldwide communications service providers through Redknee's real-time converged billing solutions

Deployment, management and execution of end-to-end telecom billing tasks for Redknee's high-powered real-time convergent billing and customer care solution

Deployment, management and execution of end-to-end telecom billing tasks for Redknee's high-powered real-time convergent billing and customer care solution


Growth Strategy

Existing & New Customers

� Increase share of wallet with existing customers

� Add new customers directly & through partners

� Focus on term-based licenses through on-premise &

cloud delivery

Partnerships & Patent Licensing

� Partner for distribution channel & services

� Partner to cross-license Redknee’s IP portfolio

Strategic Acquisitions

� Scale & customer reach (customer footprint &

recurring revenues)

� Leverage Redknee’s technology for conversion of

customers to SaaS


Key Takeaways

14

11.6

15.1

21.019.5

24.3

28.3 28.2

37.2

48.851.3

47.1

57.8 56.9 57.7

2007 2008 2009 2010 2011 2012 TTM

$ Millions USD

Annual Revenue

Corporate Presentation TSX:RKN

� Largest independent provider of

converged billing & charging solutions

� Growth of mobile & IP data traffic

driving demand

� Taking market share in real-time

converged billing

� Backlog of $64.0M, 67% is recurring

� Recurring revenues with 20% CAGR

Recent Redknee News


� 4/02/13 - Announced C$45.0 Million private placement

� 4/01/13 - Redknee extends credit agreement with Wells Fargo Capital Finance to $50 Million

� 3/30/13 - Closed acquisition of Business Support Systems from Nokia Siemens Networks

� 3/27/13 - Nominated for TM Forum Excellence Award

� 2/25/13 - Enabled Nur Telecom to become Kyrgyzstan's fastest growing operator

� 2/19/13 - Announced cloud-based billing platform for communications service providers

� 2/13/13 - Reported revenue increase of 6% to $14.2m during first quarter 2013

Company ContactDavid Charron

Chief Financial Officer

[email protected]

Redknee Solutions, Inc.2560 Matheson Blvd East, Suite 500

Mississauga, ON

Canada L4W 4Y9

+1 905 625 2622

www.redknee.com

Investor RelationsLiolios Group, Inc.

Matt Glover or Michael Koehler

+1 949 574 3860

[email protected]

Thank you.

www.redknee.com

[email protected]

16Corporate Presentation

TSX:RKN

rkn corporate deck april 2013 lg edits 4-10-13 v5 · • social media, data, messaging, voice, etc....

Documents