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Axia NetMedia Corporation March 2012 www.axia.

com

Forward-Looking Statement
This presentation contains forward-looking statements, including, without limitation, statements containing the words “should”, “believe”, “anticipate”, “may”, “plan”, “will”, “continue”, “intend”, “expect”, “estimate” and other similar expressions which constitute “forward-looking information” within the meaning of applicable Canadian securities laws.  These statements are based on our current expectations, estimates, forecasts and assumptions about the operating environment, economies and markets in which we operate and are subject to important assumptions, risks and uncertainties that are difficult to predict.  Examples of these statements would include those where Axia forecasts its success and timing in winning new NGN business, the timing of completion and estimated total costs of our networks, the revenues and operating costs associated with these networks over time, and Axia’s ability to generate future cash flows and avail itself of other financing alternatives given current market conditions. The assumptions, risks and uncertainties that could cause actual results to differ materially from the forward-looking information, include, but are not limited to, changes in customer markets, changes in demand for our services, our inability to deliver services in a timely and cost efficient manner, technological change, general economic conditions and other risks detailed from time to time in our ongoing filings with the Canadian securities regulatory authorities, including those in our Annual Information Form, which filings can be found at www.sedar.com. Given these assumptions, risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.  Unless otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise. 

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Axia sells services over fibre optic communications infrastructure in jurisdictions that have implemented the Axia NGN Solution. To date, Axia has networks in Alberta, France, Singapore, Spain and Massachusetts. Axia trades on the Toronto Stock Exchange under the symbol “AXX”.

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Delivering Critical Fibre Optic Services
>  Axia sells services over fibre optic communications infrastructure. >  We have a unique value proposition that positions us to benefit from major global telecom trends. > Separate Transport Services from Web Services. > Axia does not compete with its customers. > Level playing field pricing stimulates vibrant RSP marketplace. >  Our proven model is flexible, adaptable and repeatable.

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Axia’s NGN Ecosystem Wireless RSPs End Users Software Axia NGN Cloud Processor Infrastructure Hardware & Related Infrastructure Wireline RSPs 5 .

>  We have created a value chain in the jurisdictions where we operate of 200 Retail Service Providers as direct customers. >  We manage 30. >  The capital invested in our networks. >  Strong and sustained demand for bandwidth usage over the past few years with 48% growth year over year in our most recent quarter.000 kilometres of fibre. Asia and North America. 6 .Axia At A Glance >  Our operations span the globe in Europe. or scheduled to be invested by Axia and our partners totals C$2 billion.

Axia’s Successes to Date North America Alberta Alberta SuperNet Operational/ Extendable 7 Europe France Covage Operational/ Extendable Catalonia Xarxa Oberta Construction/ Commissioning Asia Pacific Singapore OpenNet Construction/ Commissioning/ Early Activation Western Massachusetts MassBroadband 123 Detailed Planning .

>  >  >  >  Drive the use of our infrastructure. >  Our vision is to be a dominant provider of fibre optic transfer services in the geographies in which we operate. >  Drive long-term.What Motivates Us >  We are a fibre optic communications infrastructure company. Extend the reach of our networks. Build an Axia NGN ecosystem in our jurisdictions. Selectively evaluate entry to other markets. 8 . sustainable earnings growth by growing market adoption.

400 gov’t sites to be connected Growth Opportunities •  •  Drive bandwidth consumption in government market Increase penetration in existing enterprise markets – oil & gas. oil sands.200 Government locations 87 Retail Service Providers selling service in 318 communities 80% revenue is government. Spain Build / Early Sales Singapore Build / Early Sales •  •  •  •  •  Continue to connect government sites Build market awareness in order to drive wholesale RSP market penetration Support RSPs as they penetrate enterprise and residential markets •  9 .000 customer connections Mix of large enterprise.040 government sites in 105 municipalities Opportunity to wholesale enterprise market Seven Retail Service Providers selling to enterprise and residential markets for portion of network complete •  •  •  Bid on new regional networks Increase penetration of business parks FTTH Catalonia.Customer and Growth Summary Region and Network Status Alberta Active Customers •  •  •  Massachusetts Build •  •  Connects to over 4. data centres Wholesale to enterprise market •  France Active •  •  91 Retail Service Providers with over 2. SME and government end users Will connect 1. 20% enterprise Construction under way 1.

Free Cash Flow Profile of a Typical NGN >  Strong free cash flow profile once initial investment made. 10 . 8 6 4 € 10M Investment 2 € 30M Investment € 50M Investment 0 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 -­‐2 -­‐4 -­‐6 * Chart assumes a typical Next Generation Broadband Network with no committed spend.

965 2011 EBITDA as a percentage of Revenue 2007 31% 2008 21% 2009 19% 2010 18% 2011 21% >  All figures are in Canadian dollars unless indicated.418 8. 11 .000 30.000 40.916 Total Revenue EBITDA Net Income 68.701 5.Selected Annual Consolidated Results ($000s) 90.000 20.425 2010 5.000 0 2007 78.000 80.010 16.847 63.986 2009 3.579 15.605 12.805 50.101 2008 13.159 69.000 50.000 60.989 13.511 15.000 10.000 70.

Axia’s Strong Balance Sheet (All figures in $000s) Current Assets Cash and short term investments Accounts receivable and prepaid Total current assets Fixed assets Other assets Total assets Current Liabilities Accounts payable and accrued liabilities Other Total current liabilities Debt Deferred revenue Total liabilities Net Assets 12 December 31.872 44. .409 103.403 4.325 14.197 62.706 26.010 46.040 >  All figures are in Canadian dollars unless indicated. 2011 29.597 149.290 13.109 7.449 21.655 42.

Alberta .North America .

3 million of positive cash flow in FY11. 2.Alberta’s SuperNet – Generating Cash Flow >  Drives the North American business segment. >  Generated $22. >  Assets deployed ~ $500 million. >  13. >  High performance/low cost value proposition. >  Revenue split 80% GoA/20% Enterprise.000 km fibre. >  Growth prospects in increasing bandwidth usage. >  87 RSPs.000 km wireless. >  Enterprise >  Government 14 .

713 4.746 4.800 4.600 15 .Growth in Customers and Connections Customers with Active Connections Number of Active Connections 92 90 88 86 84 82 80 78 76 4.750 4.700 4.900 4.650 83 Q2 11 82 Q3 11 85 Q4 11 87 Q1 12 91 Q2 12 4.712 4.793 4.758 4.850 4.

120 101 100 88 78 81 92 80 60 40 20 0 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 16 .Continual Bandwidth Growth >  Annual bandwidth usage grew 29%.

>  Large metro school district selected new Axia Line Rate Service in competitive bid process. 17 . 450 sites have ordered 20 Mbps service (up from 5 Mbps). >  Schools are upgrading services with new funding from GoA. >  As of January 2012.Strategy for Growth – Public Sector >  Public sector is looking to Axia’s big bandwidth services to meet ever-increasing bandwidth needs.

18 .Strategy for Growth – Oil Sands >  Enterprises are implementing ICT-based technologies that perform best with fibre-based NGN infrastructure. >  Axia ensures its services are competitively benchmarked. >  Introduced suite of fibre connection services to connect customers to our Alberta NGN.

Bob McKerrell Photography. >  Commercial arrangements with three major Canadian data centres. >  Wholesale Internet Gateway services for RSPs. courtesy of Care Factor 19 .Strategy for Growth – Data Centres >  Growing demand for the SuperNet to facilitate SaaS and Cloud Computing Services.

Massachusetts .North America .

2.881 square kilometres with population over 1 million. >  >  >  >  21 . >  More than 120 communities. Axia will sell fibre-based services to RSPs and government customers. Construction by third party under way.000 households. >  Expected completion by June 2013.MassBroadband 123 >  Western Massachusetts: >  8. >  388. >  44.300 businesses.400 community anchor institutions with committed purchase.153 km network in rural Western and North Central Massachusetts. >  1. Ability to extend network directly to other premises.

22 . giving RSPs backhaul access to competitive Internet gateway services.MassBroadband 123 >  Axia will invest in extensions to network in response to market demand. >  17 RSPs have expressed interest in selling services over the network. >  Initial network connection to Boston has been established. >  A large commercial premise in Springfield has been connected to the network.

307 51.879 20.895 22. 23 .380 EBITDA Net Income 16.000 Total Revenue 30.000 25.000 48.492 16.031 56.211 16.465 15.189 20.000 22.237 21.North American Segment ($000s) 60.557 51.000 0 2007 2008 2009 2010 2011 EBITDA as a percentage of Revenue 2007 35% 2008 44% 2009 46% 2010 42% 2011 40% >  All figures are in Canadian dollars unless indicated.000 50.606 40.738 17.890 55.184 10.

France .Europe .

250 km of fibre >  91 national and local service providers. >  17 public initiative networks. >  Increased annual revenue by 28%. >  Growth opportunities: >  New Segments >  Business Parks >  Fibre to the Premise >  50/50 Joint Venture with Cube Infrastructure Fund. >  3.700 km backbone >  8. >  Cash positive for 4 quarters. >  Axia has invested €60 million. 25 .Covage’s National Network >  Drives the European business segment.

000 500 72 Q2 11 79 Q3 11 82 Q4 11 91 Q1 12 91 Q2 12 0 26 .830 2.629 1.500 2.049 1.221 2.500 1.Growth in Customers and Connections Customers with Active Connections Number of Active Connections 100 90 80 70 60 50 40 30 20 10 0 2.489 1.000 1.

Bandwidth Growth >  Annual Bandwidth usage grew 65%. 160 140 120 100 80 60 40 20 0 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 145 126 109 88 97 27 .

5% 1.6% 28 .00% 5. > Market penetration for Q2 FY12 was 6.00% 1.00% 8.4% 3.00% 4.5% >  Covage’s addressable market is approximately 34.00% 6.00% 0.00% 2.00% 3.00% 9.00% FY09 FY10 FY11 5.00% 7.000 sites which we define as businesses located within 100 metres of our NGN.Growing Market Penetration 10.

29 . and over new FTTP extensions. >  Recent wins: >  Operate and sell services over existing Nantes Urban Community Network (Nantes Network). >  Successful track record with 17 regional networks.Strategy for Growth – New Networks >  Identify and respond to new network opportunities that complement existing assets. >  Operate and sell services over Grand Poitiers Network.

400 potential end users. >  Marketing campaign with 12 RSPs that bundles bandwidth and is targeted at small and medium-sized businesses.Strategy for Growth – Business Parks >  Government strategy to encourage migration of business parks from DSL to fibre optic services. 30 . >  210 parks with FTTP services available to 9.000 enterprises in 40 business parks. >  Recent win: >  Grand Poitiers Network will service over 3.

>  Chevry-Cossigny pilot project. >  First customers commissioned. rural areas. >  Connects to Sem@for77 network. >  Will connect 1.250 residences. 31 .Strategy for Growth – Fibre to the Home >  €2 billion government support for FTTH deployment in semi-dense.

>  Others: >  Altitude >  Eiffage >  Tutor 32 . >  DSPs not their core business. >  SFR Collectivites >  Leader in France with 33 DSPs. >  Axione >  Similar size as Covage.French Marketplace – Key Competitors >  Orange (France Telecom) is dominant player.

Spain .Europe .

>  Designed with Alberta SuperNet as a reference.Catalonia.040 government sites in 105 municipalities. >  €253 million government committed spend for 20 year term. >  Addressable population: 5. Gandesa La Seu d’Urg Berga ell Olot Girona Vic Lleida Manresa Terrassa Igualada Mataró Mora d’Ebre Barcelona / Hospitalel de Llobregat Vilanova i la Tarragona Gestrú Tortos a Amposta 34 .000 sq. >  1. Spain >  Autonomous state in northeast Spain. km.4 million. >  32.

Current/Pilot RSPs: 35 .Xarxa Oberta >  >  >  >  >  >  Network Operations Centre deployed in Barcelona. Building market awareness and early market adoption. Actively sell wholesale services to RSPs. 40% of network activated (899 km). Services available to government and RSPs.

609 -1.000 2007 2008 2009 21.190 -2.307 -2.159 -1.204 1.602 16.901 2010 2011 EBITDA Net Income -1.463 -6.000 15.905 14.European Segment ($000s) 25. >  All figures are in Canadian dollars unless indicated.000 5.200 -310 -1.973 -3.816 11.000 10. 36 .765 Total Revenue 2.000 -10.334 EBITDA as a percentage of Revenue 2007 -44% 2008 -10% 2009 -16% 2010 -12% 2011 2% >  This represents only 50% of Covage which is a joint venture between Axia and Cube.000 0 -5.000 20.

Singapore .Asia .

Axia has 30% ownership. Other owners: >  Singapore Telecommunications Limited (30%) >  Singapore Press Holdings (25%) >  SP Telecommunications Pte Ltd (15%) >  >  On schedule for completion by mid-2012 with over 85% completed as of today.OpenNet – Metropolitan Fibre to the Premise >  >  OpenNet is an open access carrier-neutral network. Seven companies selling services on completed part of network including: >  Nucleus Connect >  SingTel >  M1 >  StarHub >  Tata Communications 38 .

083 -260 -443 -1.000 2.Asia Pacific Segment ($000s) 8.837 819 0 -1.000 6. 39 .763 2011 -9 Net Income EBITDA as a percentage of Revenue 2010 -32% 2011 0% >  This reflects 100% of OpenNet’s operations.000 0 -1.000 -2.000 5.000 -3.000 1.000 4.000 2009 2010 Total Revenue EBITDA 6. >  All figures are in Canadian dollars unless indicated.000 7.075 -1.000 3. Axia utilizes equity accounting for this investment and owns 30%.

Corporate Information .

the oil patch. software development and financial services sectors •  Extensive IST and network design and construction experience •  Managed implementation of the Alberta SuperNet •  Implemented Axia’s business model in France 41 . strategic planning •  Responsible for business development in Europe and operations of Covage and Xarxa Oberta •  More than 20 years of global telecommunications experience •  Extensive international marketing experience in IT. Axia North America and Executive Vice-President •  Responsible for Alberta SuperNet. Axia Networks France Mark Blake Vice-President. Axia Connect and North American business development initiatives •  Legal background •  Extensive senior executive experience in public and private sectors Alan Hartslief Chief Financial Officer Jean-Michel Soulier President.Key Axia Business Leaders Art Price Chairman and CEO Murray Sigler President. Asia Pacific Drew McNaughton Chief Technology Officer •  Joined Axia in 1995 with vision of creating fullspectrum IP-based communications firm •  Professional Engineer •  Held a number of senior executive posts in the oil patch prior to joining Axia •  International experience with US and European capital markets •  Outstanding track record in establishing high-quality internal controls. transparent reporting.

5 million $97.Corporate Data – AXX on TSX Current share price: S/O: F/D: Market Cap: % owned by management/related parties: % owned by institutional: Research coverage: $1.7 million 24% 40% Three firms 42 42 .2 million 66.50 63.

>  We have just completed a period of geographic expansion and investment that was mainly funded from internal sources of cash. >  Long-term customer contracts and guaranteed revenues. 43 . >  Annual historic cash flow of $15-20 million. >  Focused on earnings growth. >  Opportunities for growth. >  Strong financial position with little debt.Conclusion >  Major trends are driving the use of our networks.

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