Company Presentation


Published on

SVP Advisors is an international management consulting firm for the Telecommunications, Media and Technology (TMT) sector, with expertise in regulation, economic modelling, business strategy and corporate finance.

Established by seasoned professionals in 2006, we have earned over time a solid reputation within the TMT sector thanks to our quantitative and practical approach to problem solving.

Our work combines various disciplines such as economics, econometrics, finance, accounting, marketing and engineering. Our international client base includes telecom operators, media and internet companies, telecom regulators, international organisations and financial institutions.

Published in: Business, Technology
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Company Presentation

  1. 1. SVP AdvisorsCompany Presentation October 2011
  2. 2. Contents1 About Us2 Experience in Regulation3 Experience in Economic Modelling4 Experience in Business Strategy5 Experience in Corporate Finance
  3. 3. Who we are  SVP Advisors is an international management consulting firm for the TMT sector1, with expertise in regulation, economic modelling, business strategy and corporate finance  Established by seasoned professionals in 2006, we have earned over time a solid reputation within the TMT sector thanks to our quantitative and practical approach to problem solving  Our work combines various disciplines such as economics, econometrics, finance, accounting, marketing and engineering 1 Telecommunications, Media and Technology3
  4. 4. Areas of Expertise REGULATION  Regulatory Strategy  Competition & Market Analysis  Policy Setting ECONOMIC CORPORATE MODELLING FINANCE  Costing Systems  Transaction Support & Placement  Pricing Models  Due Diligence  Margin & Profitability Analysis  Valuation & Benchmarking BUSINESS STRATEGY  Commercial Strategy  Business Planning  Business & Product Development4
  5. 5. Approach  Partnership We believe in the potential of effective teams (designed as networks of value, to best serve the interests of our Clients)  Focus Our services are built around our core competencies and experience (so that we can have a tangible, positive impact on the results of our Clients)  Independence We provide impartial and sound advice (so that our Clients can take fully informed decisions)  Fact-driven We use clear and measurable evidence to reach relevant conclusions (using sound arguments and with the support of quantitative analytical tools)  Practicality We conceive solutions for the real world (taking into full account constraints and specific circumstances)5
  6. 6. International Footprint Madrid (HQ) Miami Bangalore Associate office SVP Advisors Offices SVP Advisors Assignments (15 countries) Previous Team Experience (26 countries)6
  7. 7. Clients We work with some of the world’s largest and well- respected institutions and operators, and we are Clients distribution, by type often invited to present at international conferences and workshops addressing the latest topics in the TMT sector Our international client base includes:  Telecom Operators such as Telecom Italia, Telefónica and Turkcell  Media and Internet Companies such as Babelgum and BetonLive  Telecom Regulators such as AGCOM, CMT, CITC, EETT and NITA  Int’l Organizations such as the European Commission and the IADB  Financial Institutions such as Santander and Citibank7
  8. 8. People Francisco Velázquez Julio Villalobos Dimitri Kallinis Partner Partner Partner New Ventures & Technology & Business Strategy Financing Expert Regulatory Expert Expert Over 10 years experience in Over 10 years experience in Over 10 years experience in strategy advice and financing in technology and regulation in the strategy advice and operations in the TMT sector TMT sector the TMT sector Telecoms financing expert, Extensive international track- Has lead several international participated in over 10 large M&A record of modelling, regulatory strategy consulting assignments. transactions and in over 20 and strategy consulting projects Former Head of Residential Unit at syndicated loan transactions over for fixed and mobile operators in On Telecoms, a leading Greek the last few years. He has actively several Countries worldwide. 3Play Operator, responsible for participated in innovative ventures Former Team Leader of Content, Pricing, Sales Strategy through an investment fund Technology Strategy at Telefónica and MarkComms Areas of expertise: new Areas of expertise: fixed and Areas of expertise: broadband, technology and media ventures, mobile networks, regulatory MVNO, IPTV, business planning, start-ups, innovation, financial strategy, regulatory accounting commercial strategy and market transactions and techno-economic modelling analysis8
  9. 9. Contents1 About Us2 Experience in Regulation3 Experience in Economic Modelling4 Experience in Business Strategy5 Experience in Corporate Finance
  10. 10. Price Squeeze Analysis of Narrowband and Broadband Offers Client Margins of a typical double-play offer considering economies of scale and technology choice NITA (Telecoms Regulator) - Denmark Project Description Analysis of bundles fixed-line offers comprising narrowband and broadband services, using an ad hoc developed prize squeeze tool which calculated costs and revenue of a reasonably efficient operator The tool takes into account a vast array of wholesale services including narrowband origination and termination, broadband bitstream access and LLU Additionally to the analysis, we assisted the Regulator in drafting the methodology on margin squeeze Results & Benefits Allows the Regulator to assess whether an alternative Note: chart has been altered for confidentiality purposes operator can market its services profitably based on the wholesale inputs provided by the incumbent operator Key words: competition analysis, margin squeeze10
  11. 11. Audit of the Regulatory Cost Accounts of a Mobile Operator Client Schematic Overview of the Mobile Operator’s Regulatory Cost Accounting System AGCOM (Telecoms Regulator) - Italy Project Description Allocation Activities Cost Inputs Allocation Allocation Services Stage I Stage II Centres Stage III Audit of the cost accounts for the year 2007 of a mobile AGCOM Cost Cost Accounts Activities Results operator, prepared using the fully distributed cost Centres Table 1 Internal methodology under both the HCA and CCA1 standards. Management System AGCOM The audit included the following main tasks: Results Table 2 FAR  Review of the methodology employed in the Traffic Volumes preparation of the cost accounts Revenues  Reconciliation of financial and other relevant data LEGEND  Review of the re-valuation of assets at current costs Model  Review of the full cost allocation process Input Allocation Stages Output Results & Benefits We identified necessary and/or suggested amendments to the operator’s costing systems and quantified the impact of such changes on the cost of regulated services Key words: regulatory accounting, cost models 1 HCA: Historic Cost Accounting, CCA: Current Cost Accounting11
  12. 12. Assessment of the Telecommunications Policy in a Latam Country Client Market efficiency gaps with different technologies COFETEL (Telecoms Regulator) - Mexico Project Description 100% Strategic review of the Mexican telecoms sector aimed at identifying areas where public intervention would be 80% required. We established market boundaries for each of % Population coverage the services considered and assessed, among others: 60%  Benefits and costs of several alternate technologies 40%  Role of communications in low income & rural areas The review took into consideration the current market 20% Fixed telephony Mobile telephony Broadband situation and international best practices on technology developments and market structure/competition 0% CDMA 450 Copper wire GSM 800 UMTS 100 WiMAX ADSL Results & Benefits Market efficiency frontier Market sustainability frontier Current coverage Provided recommendations on several policy areas including regulation, social service, internet access Key words: telecoms policy, market analysis programs, spectrum management and education12
  13. 13. Establishment of Regulated Wholesale Tariffs Client Retail-Minus Calculation Model EETT (Telecoms Regulator) - Greece Project Description Development of a Discount Cash Flow Model to support the establishment of regulated wholesale tariffs for broadband services based on a retail-minus methodology The DCF model was based on the typical operations of a fixed operator while also taking into account the specific market and operator conditions Further support was provided to the client in carrying out a public consultation to ensure adequate reflection of the views of the different stakeholders and market realities Results & Benefits The results of the model were used by the Regulator in establishing the tariffs to be applied to the incumbent operator for its broadband services Key words: tariffs setting, broadband, retail-minus13
  14. 14. Contents1 About Us2 Experience in Regulation3 Experience in Economic Modelling4 Experience in Business Strategy5 Experience in Corporate Finance
  15. 15. Bottom-Up LRIC Model for determining the cost of Mobile Services Client Calculation flow of the Bottom-up LRIC Model CMT (Telecoms Regulator) - Spain Project Description Development of a bottom-up LRIC model to calculate the cost of a range of mobile services including wholesale access, origination and call termination Based on the pure-LRIC approach, the model takes into consideration several factors such as QoS, demand seasonality, technology choice (2G, 3G and LTE) and the different use of available spectrum (refarming) The models several applications include the calculation of the impact of network sharing on costs Results & Benefits The model built is highly flexible as it can provide results for any type of existing or hypothetical/efficient operator, depending on the inputs provided Key words: mobile termination, bottom-up models, LRIC15
  16. 16. Design of a Costing System Client General overview of the Costing System Turkcell (Mobile Operator) - Turkey Project Description REVENUE ALLOCATION PROCESS Design of a costing system aimed at fulfilling our clients (DIRECT TO SERVICES) COST ALLOCATION PROCESS regulatory and operational needs FIXED ASSET REGISTER Allocation to business units by type of costs Allocation of common and joint costs to activities and network elements Allocation of support activities to functional blocks Allocation to internal services Allocation to services with transfer charges and routing factors STAGE 1 STAGE 2.1 – NW STAGE 3.1 –NW STAGE 4.1 – NW STAGE 5.1 – NW STAGE 6.1 - NW NW business unit NW elements NW Functional Blocks Internal NW services WH services Through a step-by-step process, the system allocated Stage 1.1 FAR Fixed Assets Capital related costs by Asset Operating network Primary plant Support equipment Radio Link Backhaul Core Statements at wholesale markets Origination Statements WH product 3rd parties Voice & Video calls Stage 1.2 P&L costs Backbone Termination Messaging Organization costs Costs by IX Roaming Data the companys actual costs to wholesale and retail Department Personnel DB & Platf orms Other Roaming IN Other External G&A Roaming OUT Costs COGS Other RF Interconnection P&L Roaming services (voice, SMS, data, etc...) Handsets STAGE 2.2 – RET STAGE 3.2 – RET STAGE 4.2 – RET STAGE 5.2 – RET STAGE 6.2 – RET STATEMENT SIM cards Retail business unit Retail activities Retail f unctions Internal retail services Retail services Other expenses Costs by Primary activities Sales - Acquisition Service-specif ic Internal retail services Statements at Department (customer related) Collections Service Group- retail markets Sales & Marketing Retail costs by Support activities Front-End specif ic Voice & Video calls Other costs of sales (e.g. NW nature Rev Stim-Retention Acquisition-driven Messaging ACCOUNTING operating costs) Non-op. Assets Product Customer-driven Data In addition to actual financial information, additional SEPARATION External expenses Management Revenue-driven Roaming IN Power COGS COGS Back Of f ice Churn-driven Roaming OUT REPORTS Taxes Taxes & Fees Taxes & Fees COGS General & other Other -Internal Taxes & Fees BALANCE Non-attributable to reporting inputs such as routing factors were used in allocating telecoms activity STAGE 2.3 – REST STAGE 6.3 - CORP - Regulatory SHEET Corporate Costs by General corporate Stage 1.3 BS Department costs reporting Working capital network, retail and common costs to cost centres and TC – TRANSFER CHARGES RF – ROUTING FACTORS SPLIT BY CHANNEL SPLIT BY SEGMENT subsequently to services SPLIT BY TARIFF DW DW TRAFFIC OPERATING NW SUBSCRIBER DATA VARIABLES ROUTING DATA FACTORS Results & Benefits The system allowed the operator to prove full compliance with regulatory obligations and to carry out a profitability analysis of its wholesale and retail tariffs Key words: cost accounting, profitability analysis16
  17. 17. Calculation of the net cost of Universal Broadband Service Client Average net cost per capita of universal broadband service, by EU Member State EU Commission - EU Project Description 50 Development of a model to determine the net cost 45 associated to the provision of broadband to every 40 European household under several technological 35 5Y NET COST PER CAPITA EUR 30 scenarios, including wireline and wireless technologies 25 The calculation of the net cost was carried out at the 20 Member State level and took into account several factors 15 including the (possible) availability of spectrum from the 10 Digital Dividend or a mandated minimum bandwidth in 5 the broadband service provision 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 EU27 MEMBER STATES Results & Benefits The outcome of the model was instrumental in the impact assessment of EU Policy options for the revision of the Universal Service provision Key words: cost models, universal service, broadband17
  18. 18. Bottom-Up Model for determining the Cost of Postal Services Client Calculation flow of the Bottom-up costing model OCECPR (Telecoms Regulator) - Cyprus Project Description 1. INPUTS 2. ALLOCATION 3. DIMENSIONING 4. COSTING 5. OUTPUTS MATRIXES (ALLOCATION TO Development of a bottom-up LRIC model covering all DEMAND SERVICES) services and activities of Cyprus Post in the postal value By service NETWORK OUTPUTS By geo-type MAPPING DIMENSIONING TO chain: collection, sorting, transport and delivery DRIVERS COSTING PROCESSES By resource AND By cost category Resources by ALLOCATION By service The model took into the account cost efficiencies MAPPING activity By activity By service EXTERNAL TO achieved in certain processes, variations in costs due to FACTORS ACTIVITIES By geo-type CHARTS different service parameters and geographical specifics LRIC analysis GEO-MODEL Graphs KPIs The model provided the following outputs: unitary cost By route UNIT COSTS SCENARIO by service, cost by activity, cost by category, cost by ANALYSIS By resource resource employed Sensitivity List of services List of service groups List of resources List of cost types List of geo-types List of drivers List of Routes List of ext. Factors List of activities Results & Benefits The model was instrumental in the assessment of the pricing policy of Cyprus Post, including compliance with regulatory obligations and competition principles Key words: postal services, bottom-up models, LRIC18
  19. 19. Contents1 About Us2 Experience in Regulation3 Experience in Economic Modelling4 Experience in Business Strategy5 Experience in Corporate Finance
  20. 20. Assessment of MVNO Business Models Client Schematic Overview of the MVNO tool Private Client (Mobile Operator)– Eastern Europe Project Description Development of a tool for determining the economics of different MVNO business models to be potentially hosted in our client´s network For each MVNO business model, the tool provided financial accounts (P&L, CF statement) and KPIs (subscribers, ARPU, MoU, etc.) over a 5-year period The modelling tasks were preceded by the definition of the different MVNO business models, in terms of MVNO type, business proposition and target market segment Results & Benefits The tool was instrumental in assessing the viability of different MVNO business models under different market penetration scenarios and cost structures Key words: MVNO, business modelling, wholesale strategy20
  21. 21. Study of Mobile Infrastructure Sharing Options Client Overview of alternate options of mobile Private Client (Mobile Operator)– Eastern Europe infrastructure sharing Project Description Increasing depth of network sharing Review of mobile infrastructure sharing in EU25 Radio countries covering different types of agreements ranging National Access Masts Site roaming Network sharing sharing from site sharing to national roaming, taking into sharing account regulatory and commercial aspects, and MNOs share the same physical compound but install identifying the best practices in different countries Site Sharing  separate masts and mobile equipment (e.g. antennas) This study was followed by the development of a MNOs share the same mast or other structures (e.g. business case for calculating the financial gains/losses at Masts Sharing  rooftops) the wholesale and retail level associated with the nation- wide provision of 2G national roaming  MNOs share all access network equipment, but use RAN Sharing their own software and assigned frequencies Results & Benefits A host MNO provides mobile services to the users of National  The results of this study were used by our client in Roaming the roaming MNO in areas not covered by its network shaping the most appropriate strategy and commercial approach with regards to infrastructure sharing Key words: infrastructure sharing, national roaming21
  22. 22. Business Plan for an Internet Content Provider Client Overview of the key economics of the Business Plan Private Client (Internet Company) - UK Year 1 Year 2 Year 3 Project Description Addressable market (Units) 000 4,000.0 4,800.0 5,600.0 Development of a business plan for an international betting company for a “real” live interactive football Active users 000 86.4 178.6 282.2 betting application, provided over the Internet Penetration % 2.2% 3.7% 5.0% As part of our work, we assessed and provided inputs on Net ARPU (mth) € 4.7 4.6 4.4 the business model selected for the new application Total net revenue € 000 4,915.0 7,282.6 12,048.6 Following that, we identified and analysed national Total recurring costs € 000 1,161.7 2,228.1 3,635.1 markets showing greater potential for the application Total one-off costs € 000 798.1 1,040.0 1,388.4 based on the broadband penetration, average spend per Gross Margin € 000 2,955.2 4,014.5 7,025.0 user and features of multiservice platforms Gross Margin % % 60% 55% 58% Results & Benefits The model produced a full range of financials based on Note: figures have been altered for confidentiality purposes different scenarios, and was instrumental in the definition of our client’s markets entry strategy Key words: interactive services, business planning22
  23. 23. Business Plan for a Biotech Company Client Illustrative graph of % of products achieving milestones under different scenarios Private Client (Biotech Company) - Switzerland Project Description Development of a business plan reflecting the new 100% 100%100% enhanced operations of our client, a biotech company BEST generating medicinal products through an innovative BASE WORST Internet-based technology platform 60% 60% 60% In addition to opex and capex, the model calculated revenue and costs for each single product in the company’s pipeline based on the development lifecycle 25% and discounting the probabilities of success in each 15% 15% 10% 8% 7% 5% 5% clinical phase up to market authorization 3% Hypothesis Licensing / Phase I-II Phase III Market upfront payment Authorization Results & Benefits The business plan was instrumental in successful capital increase round made by our Client for financing its future planned operations Key words: biotech, business planning23
  24. 24. Contents1 About Us2 Experience in Regulation3 Experience in Economic Modelling4 Experience in Business Strategy5 Experience in Corporate Finance
  25. 25. Due Diligence of a Mobile Operator Client Illustrative example of the analysis carried out during the Due Diligence process Inter-American Development Bank - Colombia Project Description 60% Technical and market due diligence of a mobile operator Mexico undergoing a round of re-financing through a $600 50% Colombia million syndicated loan Ecuador EBITDA margin 40% Venezuela Chile We reviewed the operator’s business plan, focussing on Company B Peru 30% Argentina revenue, opex and capex forecasts, using market BrazilEcuador Argentina Brazil Peru 20% Company A Chile information and int’l benchmarks as appropriate Colombia Mexico 10% The assignment included on-site visits to perform management interviews, on the ground market analysis 0% 0% 20% 40% 60% 80% as well as network and operational facilities’ monitoring market share Results & Benefits We produced a due diligence report and a revised business case based on our recommended values for some sensible hypotheses and parameters Key words: due diligence, market analysis, business planning25
  26. 26. Transaction Support in the Sale of an Online Video Company Client Competition Map – US Online Video Market Private Client (Media Company) - USA Project Description Niche / SVP Advisors acted as financial advisor in the sale of an Specialist integrated web and mobile video platform providing innovative, professionally produced and curated content to a global audience Target market From preparation to execution, we supported the company throughout the transaction process Our activities included drafting due diligence material, Mainstream / identifying and contacting potential buyers, and setting Hit up meetings and negotiations rounds User- Professionally- generated Content generated Results & Benefits Based on an assessment of the company’s market value Note: Size of the bubbles indicates Monthly Unique Users in the US and potential, we defined a clear sale strategy and provided a narrowed-down list of potential investors Key words: transaction support, online video26
  27. 27. For further information please contact:Rafael GonzalezSenior SVP Advisors Ltd. Almagro, 15 Madrid, Spain