AsiaInfo-Linkage, Inc.Leading Provider of TelecommunicationsSoftware and ServicesNASDAQ: ASIA March 1, 2013
The information contained in this presentation is as of March 1, 2013. AsiaInfo-Linkage assumes no obligationto update any...
Company Background• AsiaInfo-Linkage, Inc. (NASDAQ: ASIA) is a leading provider of high-qualitytelecommunications software...
Steve ZhangPresident and CEO• Joined AsiaInfo-Linkage in December1999 as VP for Software• Appointed CEO of AsiaInfo-Linkag...
Core Business OverviewTelecom Software Solutions: Customer Relationship Management(CRM) Billing Business Intelligence (...
FY2012 Revenue Breakdown*5*As of December 31, 2012China Telecom17.2%Others4.2%China Mobile52.8%China Unicom25.8%
Revenue Streams6On-going Services (OGS)—maintenance and dailyoperational functions3Change of Requirements (CR)—smaller and...
Key Facts7> 890mcustomers serviced by oursystems6bcall detail records processedevery day by our systems7PBdata analyzed ev...
AsiaInfo-Linkage Competitive Advantage8What’s their Telco 2.0 Strategy ?• Adding value to OTT services andgenerate new rev...
Investment Highlights& Business Strategy9
Investment HighlightsLarge and growing market opportunityMarket leader with extensive customer baseComprehensive product a...
EBITDA Margins (2012)45%34%Enabling our Customers’ Financial SuccessSubscribers (2012)715 million107 millionBSS/OSSspend p...
Dominant Market Share13CRM/Billing/BILeading position in three core productswith about 50% market shareAsiaInfo-Linkage56%...
14AsiaInfo is Financially Strong37% CAGR++3 Groups×31 Provinces96PotentialCustomers=3 + 93 OperatorsMarket Leader with Ext...
Digital Lifestyle Enablement15
Stage IJan 13, 2010 Chinesegovernment pushingconvergencePolicy LaunchStage IIFocus on cable / telco dual-way entrancePilot...
Our International ExpansionUp to 2010…• No. 1 in China• Strongcustomer base• High entrybarriers• Remarkablesuccess &potent...
High Barriers to Entry in Domestic Market18CompetitorsEarly Mover AdvantageComprehensive Product and Service PortfolioProd...
14GMobile Virtual Network Operator (MVNO)Monetization of Data2International expansion—Southeast Asia telecom marketand oth...
Financial Highlights20
0.0100.0200.0300.0400.0500.0600.02006 2007 2008 2009 2010 2011 2012Service & third-party hardware revenue net of third-par...
Net Cash Balance (1)Strong Balance Sheet and Margin ProfileNon-GAAP Gross Profit and Margin (2)Non-GAAP Op. Profit and Mar...
2013 Q1 Guidance Overview(US$ mm, except EPS, Margin)2012 Q4 Margin 2013 Q1Net Revenue (non-GAAP) 155.2 - 133.0-136.0Gross...
Thank You.Jimmy XiaInvestor Relationsir@asiainfo-linkage.com+86 (10) 8216-6039
Upcoming SlideShare
Loading in...5
×

Asia corporate presentation_20130301

126

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
126
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Asia corporate presentation_20130301

  1. 1. AsiaInfo-Linkage, Inc.Leading Provider of TelecommunicationsSoftware and ServicesNASDAQ: ASIA March 1, 2013
  2. 2. The information contained in this presentation is as of March 1, 2013. AsiaInfo-Linkage assumes no obligationto update any forward-looking statements contained in this presentation as a result of new information orfuture events or developments. This presentation contains forward-looking information about AsiaInfo-Linkage’s operating results and business prospects that involve substantial risks and uncertainties. You canidentify these statements by the fact that they use words such as “anticipate,” “estimate,” “expect,” “project,”“intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with any discussion offuture operating or financial performance. Among the factors that could cause actual results to differmaterially are the following: government telecommunications infrastructure and budgetary policy in China;our ability to maintain our concentrated customer base; the long and variable billing cycles for our productsand services that can cause our revenues and operating results to vary significantly from period to period;our ability to meet our working capital requirements; our ability to retain our executive officers; our ability toattract and retain skilled personnel; potential liabilities we are exposed to because we extend warranties toour customers; risks associated with cost overruns and delays; our ability to develop or acquire new productsor enhancements to our software products that are marketable on a timely and cost-effective basis; ourability to adequately protect our proprietary rights; the competitive nature of the markets we operate in; andpolitical and economic policies of the Chinese government. A further list and description of these risks,uncertainties, and other matters can be found in our Annual Report on Form 10-K for the fiscal year endedDecember 31, 2012, and in our periodic reports on Forms 10-Q and 8-K (if any) filed with the United StatesSecurities and Exchange Commission and available at www.sec.gov.Safe Harbor Statement1
  3. 3. Company Background• AsiaInfo-Linkage, Inc. (NASDAQ: ASIA) is a leading provider of high-qualitytelecommunications software solutions and services (No. 1 BSS solutionprovider in Asia Pacific)*• IPO on the NASDAQ exchange in March 2000• Delaware incorporated—US company· The only US-listed Chinese software company, incorporated in the US• Highest level of accounting and corporate governance policies·• Leading position in China’s telecom software and services marketOur vision is to be the leading solution provider in the global telecom industry,enabling the connected digital lifestyle, helping our customers to build,maintain, operate and constantly improve their network and IT infrastructure2A “10-K filer,” not FPI (foreign private issuer); subject to higherdisclosure requirements* Source: Gartner
  4. 4. Steve ZhangPresident and CEO• Joined AsiaInfo-Linkage in December1999 as VP for Software• Appointed CEO of AsiaInfo-Linkage inMay 2005• Prior to AsiaInfo-Linkage, 10 yearsexperience at several successfulcompanies in Silicon Valley• Bachelor’s degree in InformationScience, University of Pisa, Italy• Master’s degree in ComputerScience, Rice University• Listed as one of “Asia’s 25 HottestPeople in Business” by FortuneMagazine in 2012Michael WuCFO• Joined AsiaInfo-Linkage in August2010 as CFO• Served as the CFO of iSoftStoneInformation Service Corporation• Served as Finance VP at HuaweiTechnology• Served in other financial managerialroles at Lucent Technologies Chinaand SAP China• MBA from City University of SeattlePresentation Team3
  5. 5. Core Business OverviewTelecom Software Solutions: Customer Relationship Management(CRM) Billing Business Intelligence (BI)Serving all 3 telecom operators andmajority of provincial level entities4CRM
  6. 6. FY2012 Revenue Breakdown*5*As of December 31, 2012China Telecom17.2%Others4.2%China Mobile52.8%China Unicom25.8%
  7. 7. Revenue Streams6On-going Services (OGS)—maintenance and dailyoperational functions3Change of Requirements (CR)—smaller andimmediate upgrades2Project Revenue—new contracts and annual upgraderequirements1Non-RecurringRecurring
  8. 8. Key Facts7> 890mcustomers serviced by oursystems6bcall detail records processedevery day by our systems7PBdata analyzed every day byour BI systems115mWLAN/Broadband customers areauthenticated by our systems20,000+servers running our BSSapplications @ 24x7x36536m Online Transaction / Day48m Replenishments / Day40,000+ agents
  9. 9. AsiaInfo-Linkage Competitive Advantage8What’s their Telco 2.0 Strategy ?• Adding value to OTT services andgenerate new revenuesOperational Challenges:• How to increase subscribers andincrease ARPU in the highly saturatedmarket?• How to lower the cost to supportlarger customer base?Heavy Investment in Infrastructure:• New Technology for Infrastructure• New Application PlatformsAsiaInfo-LinkageCapabilitiesOperators StrategicInitiativeInfrastructureIntegratorBusinessOperational ConsultingIT Planning &ConsultingIT Project Implement &System Maintenance• Understand thestrategy• Enable the digitallifestyleBusinessStrategyBusinessOperationBusiness Support SystemInfrastructureSatisfy operators’ key strategic and operational initiatives with core IT solutions
  10. 10. Investment Highlights& Business Strategy9
  11. 11. Investment HighlightsLarge and growing market opportunityMarket leader with extensive customer baseComprehensive product and service offeringHigh product stickiness and barriers to entryStrong financial positionDisciplined growth strategy10Over 18 years of operating history1675432
  12. 12. EBITDA Margins (2012)45%34%Enabling our Customers’ Financial SuccessSubscribers (2012)715 million107 millionBSS/OSSspend per sub (2012)$0.70**$10.00*China Mobile AT&T* Conservative estimate from published data** ~$500 million (60% of which is AsiaInfo-Linkage)12
  13. 13. Dominant Market Share13CRM/Billing/BILeading position in three core productswith about 50% market shareAsiaInfo-Linkage56%Others44%China Operators’ Billing Market Share56% Market ShareAsiaInfo-Linkage37%Others63%China Operators’ BI Market Share37% Market ShareAsiaInfo-Linkage56%Others44%56% Market ShareChina Operators’ CRM Market Share
  14. 14. 14AsiaInfo is Financially Strong37% CAGR++3 Groups×31 Provinces96PotentialCustomers=3 + 93 OperatorsMarket Leader with Extensive Customer Base (cont’d)14
  15. 15. Digital Lifestyle Enablement15
  16. 16. Stage IJan 13, 2010 Chinesegovernment pushingconvergencePolicy LaunchStage IIFocus on cable / telco dual-way entrancePilotStage IIIPilots wrap-up and expansionImplementationMobileChina MobileChina UnicomCableMany smalloperatorsStage IFixed+ BroadbandChina TelecomChina NetcomStage IICableMany smalloperatorsFixed+Broadband+MobileChina MobileChina TelecomChina UnicomTriple playChina MobileChina TelecomChina UnicomOne Cable operatorStage IIITriple Play – New Market Dynamic16
  17. 17. Our International ExpansionUp to 2010…• No. 1 in China• Strongcustomer base• High entrybarriers• Remarkablesuccess &potential2010 onwards• Zong• Mfone• U Mobile• Nepal Telecom• And more…2012• Regional HQ inCambridge UK• Appointed AlexHawker as GMEMEA• InternationalMarketingestablished• CompletedPhase 1 BSStransformationfor NepalTelecom within 4months2013 & beyond• LaunchedVeris™ productsuite for EMEA• ShowcasedVeris™ atMobile WorldCongress 2013• Kick-startedcustomerengagement inEurope andMiddle East17
  18. 18. High Barriers to Entry in Domestic Market18CompetitorsEarly Mover AdvantageComprehensive Product and Service PortfolioProduct Stickiness – High Switching CostsDeep Relationship with All Three Chinese TelecomOperators at HQ and Provincial LevelsLarge Investment in R&D
  19. 19. 14GMobile Virtual Network Operator (MVNO)Monetization of Data2International expansion—Southeast Asia telecom marketand other regions around the worldDisciplined Growth Strategy3Expand into domestic cable market—Triple PlayMobile number portability (MNP)194 Move up the value chain within the domestic telecom vertical
  20. 20. Financial Highlights20
  21. 21. 0.0100.0200.0300.0400.0500.0600.02006 2007 2008 2009 2010 2011 2012Service & third-party hardware revenue net of third-party hardware costsSoftware products and solution revenue9778134202329US$ mmConsistent Revenue Growth21464530
  22. 22. Net Cash Balance (1)Strong Balance Sheet and Margin ProfileNon-GAAP Gross Profit and Margin (2)Non-GAAP Op. Profit and Margin (2) Non-GAAP Net Income and Margin (2)221. Cash balance excludes restricted cash and short term investments.2. Reflects GAAP gross, operating and net profits as a percentage of net revenue.3. Excludes amortization of intangibles resulting from the acquisition of Linkage Technologies.US$mmUS$mm US$mm6%11%14%17%25%24%14%0%5%10%15%20%25%30%0204060801001202006 2007 2008 2009 2010 2011 2012Operating Profit % Margin29%41%46%56%55%50%45%0%10%20%30%40%50%60%0501001502002502006 2007 2008 2009 2010 2011 2012Gross Profit Gross Margin5%15%18%25%28%24%16%0%5%10%15%20%25%30%0204060801001202006 2007 2008 2009 2010 2011 2012Net Income % Margin0501001502002503002006 2007 2008 2009 2010 2011 2012Net Cash BalanceUS$mm
  23. 23. 2013 Q1 Guidance Overview(US$ mm, except EPS, Margin)2012 Q4 Margin 2013 Q1Net Revenue (non-GAAP) 155.2 - 133.0-136.0Gross Profit 55.2 47.4% -Operating Income 29.5 19.0% -Net Income (non-GAAP) 30.1 19.4% -EPS (basic, non-GAAP) 0.41 - 0.23-0.251. Margins are non-GAAP of net revenue2. Non GAAP Net revenue and Non GAAP net income per basic share3. Gross margin of net revenue (non-GAAP) is calculated by dividing gross profit, , excluding third-party hardware costs, amortization of acquired intangibleassets, and share-based compensation expenses, by net revenue (non-GAAP)4. Operating margin of net revenue (non-GAAP) is calculated by dividing income from operations, amortization of acquired intangible assets, share-basedcompensation expenses, and non-recurring consulting related expenses, by net revenue (non-GAAP)5. As of December 31, 2012, includes cash and cash equivalents, restricted cash and short-term investments6. Weighted average of basic shares as of December 31, 2012Cash Balance: $353.9 millionShares Outstanding: 72.7 million23(5)(6)(3)(2)(1)(4)(2)
  24. 24. Thank You.Jimmy XiaInvestor Relationsir@asiainfo-linkage.com+86 (10) 8216-6039
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×