thus group plc strategy and vision © copyright thus group plc 2004. all rights reserved
TRANSCRIPT
© Copyright THUS Group plc 2004. All rights reserved.
The Market
Business Focus
Our Strategy
Customer Focus
Demonstrating Success
Fiscal Performance
Making Solutions Simple
Agenda
Strategy and Vision
© Copyright THUS Group plc 2004. All rights reserved.
Quote
Our objective is to be the pre-eminent alternative telecommunications provider for business customers in the UK
The Market
William Allan Chief ExecutiveTHUS Group Plc
© Copyright THUS Group plc 2004. All rights reserved.
THUS operates in a £17.5b market
This market is currently growing at about 7% per annum vs. GDP growth of 3%
£M
The UK telecoms sector is growing
£15.8b£17.5b
£18.9b
£21.4b
Source: Datamonitor Market Model
The Market
0
5,000
10,000
15,000
20,000
25,000
2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/8 2008/9 2009/10
© Copyright THUS Group plc 2004. All rights reserved.
Traditional High ICT
-0.9%
Primary Industries
-1.1%
Cyclical Industries
+0.6%
Traditional low ICT
+6.2%
High growth sectors have different drivers to low growth sectors
THUS is adaptable in its customer approach
Source: Gartner
Sectors that traditionally spend less on ICT are ‘catching-up’
The Market
© Copyright THUS Group plc 2004. All rights reserved.
Considerable growth in data at the expense of older products
Source: Datamonitor Market Model
Wide Area Ethernet 241.0%
LAN Extension 236.0%
Broadband 66.6%
Dedicated Hosting 44.2%
IPVPN 32.4%
ATM 20.5%
Indirect Voice 15.8%
Internet Leased Line 10.8%
Frame Relay 10.4%
Web Hosting 9.9%
Contact Centre 9.2%
-1.6% >2Mbps Leased Lines
-4.9% Direct Voice
-6.1% <2Mbps Leased Lines
-6.7% NTS
-10.8% Domain Names
-13.0% Internet Dial-Up
Internet 21.5%
Hosting 14.4%
Voice 3.4%
Data 76.1%
The Market
© Copyright THUS Group plc 2004. All rights reserved.
Total Market 04/05£17.7bn
THUS Target Market(25% of total market)
We are aligned with our target market
Current THUS Share
Our Focus 2004/5
THUS UK Market Share• 1.5% 2001/2002• 1.7% 2002/2003• 2.0% 2003/2004
Source: Datamonitor Market Model
The Market
© Copyright THUS Group plc 2004. All rights reserved.
Radar of Technology
THUS has an environmental field of vision
Solutions outside our main focus are provided through our partners
WLL Broadband
GPRS
3GSDSL
VDSL
WLAN
Ethernet
BlueTooth
Broadband Satellite
4G
SoftswitchDWDM
Grid Computing
Web ServicesComplex Content Apps
VoIP
Multimedia Messaging
MCommerce
Analogue Shutdown
Biometrics
Wireless Web
Digital Identification
Digital Authorisation
Video Messaging
THUS Primary Focus
MONTHS24 - 18 18 - 12 12 - 18 18 - 24 24+3 - 1212 - 324+
PaDSL
The environment is one of significant change ahead
The Market
© Copyright THUS Group plc 2004. All rights reserved.
Our customer engagement model has been simplified
Sales
Direct Sales Force
SME Direct Sales Force
Channel Partners
© Copyright THUS Group plc 2004. All rights reserved.
Our core strategy remains unchanged
Our Strategy
© Copyright THUS Group plc 2004. All rights reserved.
Our core strategy remains unchanged
Our Strategy
© Copyright THUS Group plc 2004. All rights reserved.
Our core strategy remains unchanged
Our Strategy
© Copyright THUS Group plc 2004. All rights reserved.
We are focused on delivering quality services
Customer Focus
© Copyright THUS Group plc 2004. All rights reserved.
CUSTOMER
ACCOUNTMANAGEMENT
SERVICEMANAGEMENT
GrowthStrategy
RequirementsEvolution
ACCOUNTRELATIONSHIP
SERVICEDELIVERY
SLAQuality
ChangeEscalation
TEAMWORK
AlertsTrends
PlansSchedules
Providing the services you need
Customer Focus
© Copyright THUS Group plc 2004. All rights reserved.
56% Utilisation
Our core strategy remains unchanged
Demonstrating Success
• Our network costs are driven by our customer acquisition
• Supported through a pay-as-you-grow network model
© Copyright THUS Group plc 2004. All rights reserved.
Consistent quality is our aim
Dedicated Services: Customer-Reported fault reports per 100 direct customer lines per quarter
Latest data October to December 2003
Quality of Service Processes - ISO 9001 qualified
We constantly utilise external measurement to support and ensure our quality
And we are consistent ….
Demonstrating Success
THUS Network Quality of Service
© Copyright THUS Group plc 2004. All rights reserved.
Achievements are realised with our customers
Demonstrating Success
© Copyright THUS Group plc 2004. All rights reserved.
Providing integrated solutions
Demonstrating Success
© Copyright THUS Group plc 2004. All rights reserved.
£ Millions
1 EBITDA FY 02 excl. £3m restructuring costs.
2 Cash flow before financing and returns on investments and servicing of finance.
Financial stability
turnover ebitda1
capex cash flow before financing costs2
Fiscal Performance
© Copyright THUS Group plc 2004. All rights reserved.
THUS achieved its first quarterly free cash flow positive position in Q3 03/04
On trajectory to operating profit positive H2 FY 05
Europe’s first cash flow positive altnet?
years
time elapsed
cash flow
ebit/pbt/pat
EBITDA
EBITDA+VE
Q3 free cash flow
+VE
Q4 profit+VE
ROCE >WACC
not to scale
00 01 02 03 04 05 06 07 08 09
00 01 02 03 04 05 06 07 08 09
Fiscal Performance
© Copyright THUS Group plc 2004. All rights reserved.
Network
Understanding what we sell
Access
Internet
Internet
HostingHosting
Intelligence
Intelligence
Touch
Touch
Support
Support
Network
Access
Making Solutions Simple
© Copyright THUS Group plc 2004. All rights reserved.
Single Network Fabric
Traditional Voice
Mobile Networks
Video
Broadcast
Corporate Networks
Access Networks
Legacy DataNetworks
Telecoms Nirvana
Making Solutions Simple
© Copyright THUS Group plc 2004. All rights reserved.
It is about making the journey simple
Making Solutions Simple
© Copyright THUS Group plc 2004. All rights reserved.
Network Length: 6100km
Pop's: Over 100
Metropolitan Area Networks: 15
Network Capacity: 10Gb to 1,600Gb
Network Operations Centre: Glasgow
Full Back Up Centre: Livingston
Launch: 1994
Launch of Demon: 1992
Flotation: 1999
Demerger from ScottishPower: 2002
Outgoing Voice Minutes (direct connect custs): 580mn
Incoming Non-geographic Minutes: 640mn
Broadband Customers: 25,000
Employees: 1858
Offices 16
Key Facts
Source: Annual Report May 2003
Extras