Annual Financial Results 30 June 2005


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  • To begin with, Intel Capital is Intel’s venture investment program and it makes minority equity investments to grow the digital economy in support of Intel’s strategic interests. Intel Capital invests in hardware, software and services companies in several market segments, including computing, networking, and wireless communications, around the world. Intel Capital’s investment focus areas evolve to reflect and support Intel Corp’s business initiatives and technology’s global adoption and growth. We’re investing to enable Intel’s platform strategy , investing in areas like: mobility, which includes: WiMAX, cellular, and new ways to extend device battery life Intel Capital invests in wireless companies worldwide to help expand the use of and create new capabilities for high-speed wireless networks worldwide, benefiting people in developed and emerging nations. As part of this, we believe continued investment in WiMAX technology is strategically important for the industry. It will enable the provisioning of broadband Internet access to a vast proportion of the population in an accelerated time frame without dependence on older telecommunications infrastructure Intel Capital has invested in several WiMAX-related companies ww during the last year, including Clearwire, a wireless broadband Internet services provider; SpeakEasy, a national independent broadband services provider; Motia, a smart antenna technology company; Navini, a broadband wireless system company based on smart antanae technology; MVS Net, a service provider in Latin America, UHT, a service provider in the Ukraine, and Trillion, a wireless services provider for school districts across the United States. The primary goal of these investments, along with our investment today in Unwired, is to accele Our investment today in Unwired is part of this overall strategy. [click]
  • When we invest in a company, we look at several criteria, In addition to key financial metrics, we look at the deal’s potential strategic benefit to Intel, strength of the management team, the ability of the management team to execute on the business model; the defensible intellectual property; and what is Intel Capital's potential contribution and impact to the portfolio company, among other things. We invested in Unwired for several reasons. But two aspects stood out: The company’s wireless deployment know-how and retail presence and it’s city-wide approach to deploying the technology. With this investment, we hope to advance WiMAX network deployment in Australia and use Unwired’s approach as a deployment model that could be used in other countries. I’d now like to introduce Philip Cronin, Intel Australia’s country manager, who can provide some insight into Intel’s vision for WiMax, the benefits that WiMAX technology brings to business and consumers, and how the work that Unwired will be doing fits into that vision. [click]
  • Four examples of market segments and services. Enterprise Mobile Worker evolving and expanding VoIP WLAN interest growing rapidly Public Service Many positive applications for wireless broadband within the public sector including patient care, public safety, etc. Consumer In the consumer space, new applications for broadband wireless are rapidly emerging with hot activity surrounding streaming media, on-line gaming, etc. Hot target markets within this space include the youth and the elderly, folks not currently a focus for your primary business model today. Emerging Emerging markets will offer many new business models over the next decade including the availability of broadband to environmentally sanctioned areas within established markets and the delivery of simple services, ie. E-mail and i-net access to developing countries for the first time.
  • Everyone likes mobility, but today it is narrowband. Everyone likes broadband, but today it is fixed. WiMAX offers a combination of both broadband and mobility. Intel’s plans for the future for WiMAX – locally and globally are….
  • Annual Financial Results 30 June 2005

    1. 1. Annual Financial Results 30 June 2005
    2. 2. Unwired: leading the world <ul><li>Leading wireless broadband carrier: </li></ul><ul><ul><li>Successful launch and brand established from August 2004 </li></ul></ul><ul><ul><li>Largest network of its type in the world delivered in record time and on budget – 72 towers covering 2000 sq. km/3.5 million people </li></ul></ul><ul><ul><li>More than 28,000 customers in just over 10 months – offering wireless VoIP and internet access </li></ul></ul><ul><li>Transitioned to full commercial operations, 79 staff, all back office systems in place: </li></ul><ul><ul><li>Revenue $13.2 million with customer numbers growing from a very small base from August </li></ul></ul><ul><ul><li>Net loss $40.77 million reflected business transition </li></ul></ul><ul><li>On track for solid growth in a market ready for new technologies </li></ul>2
    3. 3. Unwired today <ul><li>Anticipate strong revenue growth for future quarters as we continue to expand the business. We are in an excellent position for the future: </li></ul><ul><ul><li>$37 million Intel investment shores up expansion to other cities around Australia </li></ul></ul><ul><ul><li>Spectrum swap with Austar sees Unwired holding the 2.3GHz and 3.5GHz spectrum for all major metropolitan areas </li></ul></ul><ul><ul><ul><li>The 2.3GHz/3.5GHz spectrum bands are at the core of the WiMAX mobile standard </li></ul></ul></ul><ul><ul><li>Sponsorship of Alan Jones Show on 2GB pivotal to marketing strategy to broaden target audience beyond early adopters. Jones undisputed Sydney talkback King </li></ul></ul><ul><ul><li>VoIP strategy to partner with software providers on track with Freshtel partnership announcement August 05 </li></ul></ul><ul><ul><li>Now testing a PCMCIA (PC) card and will make a decision on likely timing for launch when this testing is complete </li></ul></ul><ul><li>Best positioned for future wireless broadband standard – WiMAX </li></ul>3
    4. 4. National coverage 4
    5. 5. <ul><li>New marketing campaign launched August 05 </li></ul><ul><li>Channel split: Retail 64%, direct 30%, wholesale 6% </li></ul><ul><li>‘ Plug & play’ nature of Unwired’s service has huge appeal to most successful channel – retail </li></ul><ul><li>Recent retail agreement with distributor Tecksel targets the SME market </li></ul><ul><li>More than 110 retail outlets across Sydney </li></ul>Unwired marketing & sales 5
    6. 6. Unwired Group Ltd Financial results for full year ending 30 June 2005
    7. 7. Financial performance summary to 30 June 2005 7 335 11,492 Revenue from operations (16.31) cents 12,495 33,290 (15,646) (26,840) 17,097 2,170 19,267 2005 $’000 (1,058) Depreciation (5.22) cents Earnings per share 20,795 20,795 Capex: Increase in gross PPE before depn Total PPE assets as cost (8,156) EBITDA 67,045 439 67,484 Cash Cash deposits over 12 months or securing guarantees 2004 $’000
    8. 8. Revenue and ARPU 8 $43.03 $38.74 Wholesale $46.03 $43.26 Retail To Dec 04 To Jun 05 Monthly ARPU (excl GST)
    9. 9. Financial results – trends by half year 9
    10. 10. Operating expenses – trends by half year 10
    11. 11. Balance sheet 30 June 2005 11
    12. 12. The future - WiMAX
    13. 13. Wireless broadband future: WiMAX <ul><li>Wireless broadband growth accelerating because of need for simplicity, portability, and continuing move towards mobile phones away from traditional home phone. Now 18 million mobiles in Australia compared to 10 million landlines </li></ul><ul><li>WiMAX will change the way people access data – moving it from a shared to personal device </li></ul><ul><li>WiMAX will deliver high speed data communications across wide distances </li></ul><ul><li>Benefits: mobility, global roaming, high speed access, and cheaper for companies to rollout networks </li></ul><ul><li>Momentum building – Intel, Disney, Samsung, Nokia, Microsoft, Sprint and British Telecom. Ratified as standard late 2005 </li></ul><ul><li>WiMAX ‘modems’ built into laptops planned for 2007 – PDAs to follow. PC cards, desktop modems, and phone lines eventually redundant for people in WiMAX areas </li></ul>13
    14. 14. Intel/Unwired to accelerate WiMAX deployment <ul><li>Intel to invest $37million in Unwired. In return it receives 82.2 million convertible notes with 45 cent conversion price </li></ul><ul><li>This investment means we can fast track our network rollout and launch the Unwired service in more Australian cities in 2006 </li></ul><ul><li>Both companies have also agreed to jointly promote wireless broadband capabilities using WiMAX networks in Australia </li></ul><ul><li>Unwired will adopt future Intel products that support the upcoming IEEE 802.16e for WiMAX solutions which will be found in both infrastructure equipment and notebooks </li></ul>14
    15. 15. Unwired’s WiMAX advantage <ul><li>Unwired/Austar best placed locally to transition to WiMAX </li></ul><ul><li>Unwired in unique position of having access to majority of WiMAX designated 3.5/2.3GHz bands in metropolitan Australia </li></ul><ul><ul><li>Ability to obtain Navini base stations and CPEs that operate on current proprietary technology but can be easily upgraded to WiMAX in the future </li></ul></ul><ul><ul><li>With large amount of capacity we have we can operate existing proprietary technology and WiMAX based services concurrently – no disruption to existing customers </li></ul></ul><ul><ul><li>Special combiner technology from Navini means we can operate 2 base stations from same antenna – one proprietary, one WiMAX </li></ul></ul>15
    16. 16. The future 16
    17. 18. Intel Capital Makes And Manages Financially Attractive Investments In Support Of Intel’s Strategic Objectives Strategic Financial Intel Capital
    18. 19. Intel: Why Unwired? <ul><li>Why Unwired? </li></ul><ul><ul><li>Deployment know-how and retail presence </li></ul></ul><ul><ul><li>City-wide deployment approach </li></ul></ul><ul><li>Investment objective </li></ul><ul><ul><li>Advance WiMAX network deployment in Australia </li></ul></ul><ul><ul><li>Showcase deployment model other countries should replicate </li></ul></ul>
    19. 20. The world is going wireless… INFRASTRUCTURE: Voice and Data Last Mile Wireless Backhaul Wireless Service Convergence ENTERPRISE: Unwired Offices and Factories Connected Mobile Devices Ubiquitous Wireless Connectivity CONSUMER: Wireless DSL (WiMAX) Voice / Data / Video Inter-Device communications (UWB) Streaming Video / 3D Gaming
    20. 21. Why WiMAX Established Customer Demand WiMAX Will Meet Emerging Customer Needs Mobile, but Narrowband Broadband, but Fixed Fixed & Mobile Data, Voice, Video