VDC TELECOM S.A. Presentation. Skye bank 2015

Transcription

1 VDC TELECOM S.A. Presentation 1 Skye bank 2015

2 Table of Contents 1. Opportunity in Guinea 2. VDC Telecom Overview 3. Valuation Summary 4. Management Team 5. Appendix 2

3 1. Opportunity in Guinea 3

4 Opportunity in Guinea Initiatives Taken for Sustainable Growth Economy Positioned to Grow Guinea Facts Capital Conakry Official languages French Population 2008e 10,211,437 Area km^2 245,857 GDP (PPP) 2008e US$11.07 billion GDP per capita (PPP) 2008e US$1,100 Currency Guinean franc (GNF) Rich in Resources Guinea is a mineral rich country possessing up to one half of the world s bauxite reserves as well as significant amounts of iron ore, diamond, gold deposits and uranium. Guinea also has potential for growth in agricultural and fishing sectors due to favorable climate conditions. Favorable Government Initiatives The Guinean Government adopted policies in the 1990s to return commercial activity to the private sector, promote investment, reduce the role of the state in the economy, and improve the administrative and judicial framework. Multinational Corporate Investments Alcoa and Alcan have proposed an alumina refinery worth about $1.5 billion. Rio Tinto has also begun a multi-billion dollar operation in the Simandou iron fields and is in talks with the government to construct a transnational railway from southeastern Guinea to Conakry. Additionally, BHP-Billiton has begun laying the groundwork for iron mining operations near Mt. Nimba. 4

5 Opportunity in Guinea Market Ready for Growth Solid Internet Penetration Growth Guinea s internet usage statistics back in 2000 were almost non-existent and since then have increased more than six fold with a compound annual growth rate of 26% from 2000 to Presently Guinea s internet penetration stands at just 0.5% which leaves us with a huge untapped market that is set for significant growth and positions VDC Telecom with a first mover advantage. The chart below shows Guinea s position relative to other African countries based on internet penetration as a % of population. Untapped Market Positioned for Growth 40% 35% Internet Penetration for African Countries 30% 25% 20% 15% 10% 5% 0% 5 Seychelles Reunion (FR) Tunisia Mauritius Morocco Saint Helena (UK) Egypt Zimbabwe Sao Tome & Principe Algeria South Africa Sudan Cape Verde Kenya Nigeria Senegal Gambia Gabon Togo Botswana Namibia Zambia Libya Angola Ghana Swaziland Lesotho Comoros Guinea-Bissau Uganda Eritrea Djibouti Cameroon Congo Benin Cote d'ivoire Equatorial Guinea Somalia Malawi Tanzania Mauritania Rwanda Mozambique Mali Burundi Liberia Chad Madagascar Burkina Faso Guinea Ethiopia Congo, Dem. Rep. Central African Rep. Niger Sierra Leone Mayotte (FR) Western Sahara Source: Internet World Stats, Dec. 2008

6 2. VDC Telecom Overview 6

7 VDC Telecom Overview Experience and Offering VDC Telecom Experience VDC Telecom, through her partners, has been a leading provider of comprehensive IP backbone solutions to enterprises and SOHO in Africa, Latin America and the Middle East, since With a cutting edge Internet backbone service in addition to corporate, VoIP providers, and government organizations in Africa. Latin America Africa Middle East VDC Telecom Offering 7 Our platform delivers top quality High speed Internet access, a wide range of high-end WIMAX and over IP services and a multi-tiered support infrastructure. The platform is based on a small number of high powered Sender and Receiver WIMAX stations delivering a nomadic long-range High Speed internet signal. Our infrastructure and quality of service is independant of geography, at affordable rates, making our solution extremely cost effective.

8 VDC Telecom Overview Detailed Service Description SERVICES 1. VoIP (Voice over IP) VDC Telecom is the number (1) one provider of VoIP services in Guinea, Conakry. Our VoIP services allow subscribers to make calls FREE of charge within our Network, at very competitive rates when communicating out to other providers, and be highly nomadic using WIFI. 2. Intranet and Private Company Networks VDC Telecom provides small, medium and corporate entities with secured office networking solutions as well as added-value services such as SSL secured Intranet applications and other web browser-based business tools. 3. Integrated IP-PBX Telephony With a wide range and adaptable gamut of IP-PBX products and services, VDC Telecom offers a very modern inhouse IP-based telephone network for all business sizes. We only partner with the best IP Telephone makers, our emphasis always being Quality, Reliability and Customer Satisfaction. 4. FTTH(fiber to the home) With a large and growing demand in Guinea and Africa, our Fiber ring and Remote security systems is a fast growing sector of our business. Linking the B to B, as well as connecting the house hold with a high speed internet and telephony fixe to follow with the HDTV is e very promising market were VDC is the leader in that filed. 5. Mobile WI FI VDC Telecom has an integrated added value service, to market intelligent infrastructure solutions for IP(core) wireless/mobile broadband networks, provided by Sweratel. 6. VSAT Private Networks VDC Telecom extends a multitude of corporate networks via point-to-point and point-to-multi-point links over satellite., providing independence from wired service deployments guaranteeing uniformity of service and ensuring service continuity. 8

9 VDC Telecom Overview Operational Support After many years of activity in the field of WIMAXbased services, VDC Telecom's name has come to stand for consistent reliability of service together with unfailing availability of support. We provide constant monitoring and management of all of our customers, through our Network Operation Center (NOC). This support includes the following services: 1 - Initial help and support on configuration of routers, help in LAN and WAN, choosing connection method and implementation of the chosen system. 2 - Online activity monitoring, problem and event ticketing, remote event treatment. SUPPORT 9

10 VDC Telecom Overview Technical Specifications TECHNICAL SPECIFICATIONS WiMAX - Worldwide Interoperability for Microwave Access Based on OFDM technology which is regarded as the most efficient means of delivering high speed data in minimum bandwidth in two key technology paths A fixed service (802.16d.) A mobile service (802.16e) Products are for at network service providers (ISPS, WISPS) businesses, and consumers. Will work on licensed frequency. Offering DSL/Cable like performance over the air. Planned for mass production resulting with a low cost CPE. 10

11 VDC Telecom Overview Licenses VDC Telecom has acquired a 15 year WiMax fixed and mobile as well as carrier operating license for the 2.6GHZ and 3.5GHZ frequencies shown below. also VDC Telecom acquired the numbering XXXXXX (registered in the ITU) to lunch the fixe wireless across the country Licenses 11

12 ACE(marine fibre optic) VDC is a leader in promoting The fiber optic in Guinea 2012 the arrival of the only Marine fiber optic ACE in Guinea VDC is a leading member of Guilab the owner operator of ACE. With ACE the opening of the cyber high-way between Guinea and the rest of the word. Guinea move to other era of high speed. 12

13 About Sweratel Sweratel RTWIP Network System Sweratel network solution changes the rules by providing unparalleled benefits to the operator including: Mesh cluster(s) cloud-managed coverage Wireless/mobile broadband access Wireless backhaul Fast handoff roaming Client devices should support roaming too IP-core network, enables all-ip based services NLOS and Freedom of movement The lowest total cost of ownership Rapid network development 13

14 3. Valuation Summary 14

15 15 FIBRE RING

16 In land ring fiber The network infrastructure includes: 74 access points including: 12 points for security and video surveillance 62 sites km of fiber optic cable including: km of fiber optic cable 48 pair on the backbone km of optical fiber cable 24 pair on access Transmission equipment with servers 10 DWDM and SDH Routers 12 groups of cameras (with server) The switching equipment 02 Level Switches NMS 16

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18 X X X X

19 Clear Market Strengths and Advantages VDC Telecom possesses clear Market advantages and strengths over its competitors A. We are the currently the only WISP capable of covering the entire country with our long range wireless WIMAX signal, supplying inland cities the same capacity of data and voice as the capital. B. The only carrier to have a fixed wireless phone line in Guinea. C. The only carrier providing monthly subscription-based services (in opposition to minutes-based). 19

20 4. Management Team 20

21 Management Team Experience, Integrity, Diligence Management Description CEO: Richard Rizk 2008/2014 Bachelor in Business administration After 10 years in Banking, he moved to the Telecom industry in Richard was CEO of Phontel Networks, the leading provider of prepaid calling cards and VoIP (voice over IP) networks through North America. In 2002, Richard became COO of Rutel Network (Africa), listed on the TSX and sold in 2008 to La Banque Congolaise (Congo). COO: Fred Davilmar 2008/2014 Bachelor of Sciences Bachelor of Marketing 1995 Startup of Accent Internet, the 1 st ISP in Montreal, Canada. The company was then sold to Bell COO, Montreal Internet, one of the largest calling card companies in Canada. From COO of Skytel, Canada. Wholesale VoIP to Latin America and West Africa. In 2007, he was CEO of Skytel Mali, a WISP bought by WEO IP. VP: Ghassan Boutross 2008/2014 Bachelor of computer engineer Division manager of Financial, years of experience with the implementation of telecommunication projects at Africa and Canada CTO: André Bassil 2008/2014 Bachelor of Electrical Engineering Division Manager of Tech Operations for Clemessy Intl. de France from Then Engineer R&D at the Canadian Space Agency, Reutel and Phontel up until He then moved on to Interconnect International. in Montreal. 21

22 5. Appendix 22

23 Appendix Comparable Companies Used in Multiples Valuation Comparable Companies Company Name Country GICS Sub-Industry Description 1 SK BROADBAND CO LTD SOUTH KOREA Alternative Carriers SK Broadband Company Ltd. offers Internet access and telecommunications services for residences and businesses. 2 INTERNET INITIATIVE JAPAN JAPAN Internet Software & Services Internet Initiative Japan Inc. provides Internet connection services for businesses. The Company also provides system integration services and sells system equipments. Internet Initiative Japan offers a variety of services, including network consulting, security, and Web hosting as well. 3 ASAHI NET INC JAPAN Internet Software & Services ASAHI Net, Inc. provides Internet access services using ADSL (Asymmetric Digital Subscriber Line) and fiber optic technologies. The Company also offers IP Phone, web hosting, and Web 2.0 related services. 4 BROADBAND TOWER INC JAPAN Alternative Carriers BroadBand Tower, Inc. operates Internet data centers to provide space services and Internet connectivity services. The Company also distributes video contents on the Internet. 5 PC-TEL INC UNITED STATES Communications Equipment PC-Tel, Inc. develops and supplies software based connectivity solutions. The Company's solutions enable Internet access and other communications applications through existing analog and emerging broadband networks. PC-Tel's communications products are designed to enable Internet access and other communication applications through desktop PCs, notebook computers, and Internet appliances. 6 CS LOXINFO PCL THAILAND Internet Software & Services C.S. Loxinfo Public Company Limited is an internet service provider. The Company offers comprehensive range of internet services including dial-up connection and broadband connection via satellite and ISDN line. The Company also provides web hosting, web server, and home page design services. 7 HYPERION SA POLAND Internet Software & Services Hyperion SA provides Internet services in Central, Southern and Eastern Poland. Source: Bloomberg 23