Let´s GOWEX - Shareholders Bulletin - may 13


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GOWEX has operated in the telecommunications sector for 14 years. It is currently leading the creation of "Wi-Fi Cities," which offers free and premium Wi-Fi connectivity on the street and in means of public transportation. The company is now exporting its innovative business models to many cities in Europe, South America, Asia, and emerging countries. In 2010, Gowex became the first and only Spanish [SMB – in full] to list its shares on two exchanges (a “Dual Listing”) with quotations on both the MAB stock market (GOW) and on the NYSE-Alternext (ALGOW).. The company has demonstrated continuous growth since 2008, and in 2012 achieved a turnover of € 114.3 million and net profit of € 17 million . In February 2013, the SEC approved the launch of a program of ADR (American Depositary Receipt), enabling the Group to be also traded in the United States on the OTCQX marketplace.
Effective since March 2013 following the stock split by 5:1, the number of outstanding shares of the company is 72,313,360, maintaining the nominal amount of share capital by 723,133.60€.
With offices in Madrid, Buenos Aires, London, San José (Costa Rica), Paris and Shanghai, GOWEX develops a sustainable business model in its Wi-Fi networks, based on the efficient and technical quality of their patented platforms: the Roaming Platform, which allows users to connect freely in all the cities, and the Geolocalization Content and Advertisement Platform, which provides financing business through marketing and advertisement agreements.
In 2011, GOWEX joined the Wireless Broadband Alliance and received a prize for the “Best Web Company” on Internet Day. In February 2012, Jenaro García GOWEX CEO received the “Entrepreneur of the Year Award” by Ernst & Young in the category of "Innovation”

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Let´s GOWEX - Shareholders Bulletin - may 13

  1. 1. SPECIAL GazetteLet´s GOWEX Investors’ RelationDevelopingWireless Smart Cities®May /13
  2. 2. If you would like to be included in the distribution list of GOWEX shareholder news, send usan e-mail with the subject "mailing list" and your full name to:ir@gowex.comYou will be informed on time, via e-mail, about the latest relevant news, results publication,shareholder meetings and other significant information about GOWEX Group and its shares.NEWS DISTRIBUTION LIST for shareholders
  3. 3. Our mission 4Letter from the President 52012 Key figures 7Consolidated sales 9Sales distribution 10Balance Sheet 11Split 5:1 13What is an ADR? 14GOWEX shares 16Interview at “El Confidencial” 18GOWEX News 19RDT13 and GOWEX 21Shareholders and investors’contact details22SPECIALGAZETTE
  4. 4. OurMission4“Being theWorldwide leader ofWireless Smart Cities®,based on the great advantagesgranted by our Platform(Proprietary Technology andExclusive Business Model)”Jenaro GarcíaGOWEX CEO
  5. 5. Letter from the PresidentJenaro García MartínDear friends,If we had to sum up the 2012 financial year in just one word, thatword would be "internationalisation". Even though GOWEX was destined tobecome global right from its creation, our company did not experience trueexpansion and consolidation abroad until 2012.No-one can ignore the fact that expansion on our planet is currentlytaking place at different speeds and our goal, of solidly penetrating the top 300benchmark cities worldwide, is more relevant than ever. In this respect, theemerging markets and consolidated cities with high density urban centres andpopulation were our primary target in 2012 - and they still are.However, whilst international aspects have been key during 2012, weshould not forget traits on the "home front", among which the most demandedduring last year were WiFi services in transport or WiFi mobility. Thus, during 2012GOWEX signed agreements with new transport companies that link the Spanishcapitals such as Bilbao, Segovia and Valladolid. Moreover, there has been anincrease within the lines in which GOWEX has already worked. Remarkably,recognition of our work within the country came via a prestigious ambassador,when Google awarded Ourense the title of "Digital City" for its WiFi network.A future with WiFi: I would like to end this review of the year by referring myselfto the GOWEX’s future. We would like to continue offering the best quality and thebest service to our customers and users by providing an essential service as it is theaccess to the Information Society’s benefits equally to all citizens. All this is possiblethanks to the company’s "know how", in particular, thanks to the excellentprofessionals that are part of it and work hard every day to provide the user notonly Internet access but a whole connectivity experience.Jenaro García MartínLet´s GOWEX President5"A platform will provide access to SmartCities information from a single point"
  6. 6. 6Free WiFi 24/7JanuaryChange to AutomatedQuotation System,MABFebruaryAgreement withSkypeJuneWiFi in Parisianpublic transport (RATP)OctoberDublin, WiFi cityOctoberAgreement with publicrail transport in France(SNCF)UCONNECTProject,smart connectivityPISTA ProjectTourist servicessmart platformDecemberAgreement withpublic transport inMarseille (RDT 13)DecemberCapital increase
  7. 7. 2012 Key figures7Consolidated salesYear 2012: 114,225,502 €Net ProfitYear 2012: 17,027,225 €EBITDA Year 2012:30,846,327 €Number of citiesIn 2012: 65“WiFi Smart Cities are even more attractivefor both clients and users”
  8. 8. 8“We are creating a global network effect, WiFiSmart Cities are even more attractive”Jenaro García2012 Key figuresTurnover GrossMargin EBITDA Net ProfitFigures in Million Euros%over the previous year
  9. 9. Consolidated SalesDecember 31st, 20129Consolidated Sales2012 2012 2011% Variation2012/2011Sales distribution2012In million Euros, 31st DecemberGOWEX TelecomWith Intermediation 50.1 48.3 4%Without Intermediation 23.5 20.2 16% 21%GOWEX Wireless 90.8 46.5 95% 79%Consolidated Sales 114.3 66.7 71% 100%90,8 23,5GOWEX Wireless becomes theengine of the company.GOWEX Wireless GOWEX Telecom
  10. 10. Sales DistributionNational / international 2012102011 2012Sales Distributionnational / international42.0 %58.0 %56.5 %43.5 %66.7114.3Figures in million Euros% over total sales“These figures prove and capture onpaper the great results inobtaining major projects and new towns”InternationalNational
  11. 11. Balance SheetDecember 31st, 2012112012 2011 % AnnualVar.Non-current assets 20,600,970 15,997,750 24%Current assets 80,177,124 41,294,099 94%Total 100,778,094 57,291,849 74%Net worth 69,549,116 35,141,059 95%Non-current liabilities 14,855,748 8,979,984 65%Current liabilities 16,373,230 13,170,806 27%Total 100,778,094 57,291,849 74%
  12. 12. 12Let´s GOWEX S.A. & S.C.2012 201120% 20,600,97069,549,11615,997,75035,141,05928%61%80% 80,177,12468%41,294,0998,979,984 16%14,855,748 15%72%13,170,806 23%16,373,230 17%€100,778,094 €100,778,094 €57,291,849 €57,291,849Balance Sheet for 2012 & 2011 (€)Balance SheetDecember 31st, 2012
  13. 13. Split5:113What is a split?A corporate action in which the companys existing shares are divided intomultiple shares. Although the number of shares outstanding increases by aspecific multiple, the total dollar value of the shares remains the samecompared to pre-split amounts, because no real value has been added as aresult of the split.Ratio applied:5 new shares for every 1 old shareWhy a Split?• Because of a psychological component• Because of a statistical component• Because of the need to increase the number of shares -> new markets
  14. 14. What is anADR?14An ADR is a negotiable U.S. certificate representing ownership of shares of acompany registered outside the U.S. The ADRs are quoted in U.S. dollars andtrade in a U.S. Market. ADRs were specifically designed to facilitate thepurchase, holding and sale of foreign titles by U.S. investors, and to provide afinancial instrument for non-US companies.The advantages of ADRs to U.S. investors may include:• Quotation in U.S. dollars and payment of dividends or interest in U.S. dollars.• Diversification without many of the obstacles that mutual funds, pensionfunds and other institutions may have in purchasing and holding securitiesoutside of their local market.• Familiar trade, clearance and settlement procedures.NOTE: GOWEX ADR Program does notinvolve a capital increase
  15. 15. 15Where are Lets GOWEX ADRs quoted?Lets GOWEX ADRs, are traded on the OTCQX ® , Over The Counter “OTC”market place since 2013, with:Ticker Symbol LGWXYCUSIP NUMBER 527261 101ISIN NUMBER US5272611014What is the exchange ratio between an Ordinary share-ADRof Lets GOWEX?Each Lets GOWEX ADR represents one (1) Lets GOWEX common share.How can I buy Lets GOWEX ADRs?Investors can buy Lets GOWEX ADRs through their own full-service, discount,and on-line brokerage firms throughout the United States.Who is the depositary bank for Lets GOWEX ADR program?The Lets GOWEX ADR program is managed by Bank of New York Mellon and anyquestions related to ADR may be directed to the following website:www.adrbnymellon.comWhat is anADR?
  16. 16. Shares16GOWEX Coverage AnalysisAnalysts evolution
  17. 17. 27.40%24.76%9.94%37.90%Cash Devices S.LBiotelgy VC, S.A.Alvasebi S.L.Free FloatCapitalSctructureFree Float of almost 40%after the capital increase17
  18. 18. Interview at “El Confidencial” toJenaro GarcíaGOWEX CEO18A question made by Rafa:Jenaro, since we can dream forfree as WiFi is, How do youimagine GOWEX in 10 years?A question made by Antonio,designer:What do you think the future ofconnectivity will be? Do youthink operators will continue tosurvive as we know them today?A question made by JavierMartín, technician:Which is your relationship withoperators? After all, you are theircompetitors.All I can say is that the managers of ourcompany invested in the last capitalincrease and I did it too.The future is that connectivity as such willbe for free. Operators may not continueto survive with the current models set up,therefore, important changes areoccurring that will be visible in and to themarkets.We do not compete with operators sincethey are our customers. Proof of this, isthat they are working with usincreasingly.My view is that all the cities in the worldwill have free WiFi. WiFi is like water andthe entire population is entitled to it frombirth. It is therefore a responsibility for usthat it could become so.A question made by Rafa,shop assistant, Seville:What would you say to investorswho have not made ​​the move yetto join the company? What isyour opinion on the future planof the Company?
  19. 19. WiFi TravellingForbesWhen he was about to celebrate his 14thbirthday, his parents asked him if he wanteda motorbike, a Montesa Cota 49 ", the onewhich was in fashion at that time. JenaroGarcía chose cash instead. In total, 50,000pesetas (approximately 300€) that heinvested in shares of two companies:Telefonica, "because he clearly saw werethe future was" and Cerrajera Union,"because it was the cheapest share in thestock market". Jenaro García is the founderand CEO of GOWEX, a Spanish companyborn in 1996 that nowadays provides WiFiservice in 70 cities worldwide. Among thoseincluded since the beginning of the year,New York, a city that includes a network ofmore than 1,950 hotspots distributedthrough the main areas of Manhattan,Brooklyn and Queens, and thus, becomingone of the major public networksworldwide.In this country (Spain) we feel bad when wedo business, says García, who feels proud tohave grown along with the Second-handmarket of Madrid, where he went everySunday to sell bottle caps and cassettes."The best master cannot beat what thisteaches you. Children should learn how tobe entrepreneurs since the beginning, weshould teach them how to set up acompany, how does money work and whatbarter is about".All information of the "SmartCities" on a single pointLa razón.esThe Spanish company GOWEX and theInstitute of Computer Technology ofValencia (ITI) are both developing a platformfor bringing together all the informationabout smart cities and make it available tothe public. The system, which is funded bythe Ministry of Economy andCompetitiveness of Spain and the EuropeanUnion, will be tested initially in Burgos andAlcalá de Guadaira (Seville) in the lastquarter of 2014.This development is the main piece of theProject “Integral Management for the SmartCitizen (IMASCITI)”.Follow GOWEX last news through our Twitter account@gowex 19News
  20. 20. NewsGOWEX,to infinity and beyond!Capital.esFrom its small headquarters, this SME hasachieved something that we considered tobe impossible, millions of Internet usersconsuming free internet via WiFitechnology, with their laptops, phones ortablets in the streets, at airports, on thetrains, buses, kiosks, planes ... In short, inalmost every place you can see the GOWEXlogo and one of its antennas.This company is considered the pioneer offree WiFi in Spain and almost the only onethat is able to exploit it abroad. In fact,finding any other company in the worldcapable of offering its worldwide service isimpossible.GOWEX raises its profit by 136%in 2012Telecinco.esGOWEX, the company that filled New Yorkwith WiFi hotspots, obtained a net profit of17.02 million euros in 2012. It represents anincrease of the 136% over the previous year,when it won 7.2 million euro, according tothe firm.The total amount for the business rose to114.3 million euros, an increase of 71%.GOWEX, specialist in creating WiFi smartcities and intelligent WiFi on transportation,stressed that its accounts are "very positive"and that they reflect the "high growth" of itsprojects, especially at an international level.Furthermore, the company also increasedthe gross operating profit (EBITDA) by 87%to 30.8 million euros, while the netoperating profit (EBIT) increased by 130% to21.8 million euros.GOWEX CEO, Jenaro García, said that thesefigures confirm the "great results" inobtaining more projects and new cities, aswell as recurring revenues in matureprojects. "“The market value of this SMEhas exceeded 300 million euros”20The percentages of its price in the StockMarket are to be written down in theGuinness Book of Records. And it isbecause GOWEX shares were worth 3.5euros in 2010 and now they worth morethan 17 euros (pre-split). Moreover,despite the fact that the company is listedon the MAB, its Stock Market capitalisationis of nearly 300 million euros. An amountmuch bigger than the 50% of thecompanies listed in in the ContinuousMarket.Follow GOWEX last news through our Twitter account@gowex
  21. 21. RDT13 and GOWEX inaugurate the“Smart buses” in Marseille21Available at line“Aix-en-Provence / Marseille”WiFi free for 2.25 millionpassengersScreens with local information inreal timeVideo Surveillance Closed circuitTV
  22. 22. Florencia Maté GarabitoInternational CommunicationsManager & Investor Relations+34 670 738 579fmate@gowex.comAlicia Viñas DíazInvestor Relations & Corporate Area+34 91 360 14 70avinas@gowex.comJavier Solsona PieraInvestor Relations & Corporate Area+34 638 780 690jsolsona@gowex.comShareholders andinvestors’ contact details22
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