Wavecom - wireless solutions for M2M communication


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<a href="http://www.wavecom.com">Wavecom</a>
: cellular software, wireless software, gsm software, GSM GPS, gsm tracking, M2M, WISMO, CDMA GSM, smart metering, wireless modem, wireless modems, gsm modem, EDGE modem, Fastrack, GPS wireless, fleet management, telematics, GSM automotive, wireless module, tracking system, gsm module, modem gsm, wireless alarm system, GPRS module, Embedded wireless, GPS GSM, wireless automotive, cellular modem, wireless modules, CDMA modem, tracking systems, eCall, Open AT, gsm modems, GSM POS, modem wireless, machine-to-machine, gsm gprs modem, gsm modules, wireless local loop, cellular POS, wireless POS, remote monitoring, modem CDMA, asset tracking, wireless GPS module, wireless cellular modem, EDGE module, software wireless, wireless alarm systems, embedded gsm, GSM/GPRS GPS, wireless GPS, gsm gprs module, EDGE automotive, 3G automotive, CDMA wireless modem, gsm/gprs software, M2M software, module gsm, industrial PDA, wireless M2M, CDMA module, automotive telematics, wireless gps module, OpenAT, Fastrack M1306B, CM42, P3200, WM02, CDMA modems, wireless metering, gsm gprs alarm, CDMA tracking, GPS GSM/GPRS, wireless telematics, M2M module, wavecom gsm modem, M2M modem, gsm module alarm, GSM jamming, WISMO2C, Q2406B, Q2501B, wireless point of sales, Q2403A, WMOD2B, WMOi3, GSM payment terminal, cellular point of sales, Q2426B, GT47-48, Integra M2106B, software cellular, combo GSM GPS, Q2400A, embedded CDMA, M2M modules, Q2406A, EDGE M2M, modem cellular, automotive wireless, wireless payment terminal, CDMA automotive, jamming detection, GM41, wireless module security, GSM point of sales, CDMA modules, Integra modem, P5186, GSM telematics, GSM metering, wireless AMM, cellular payment terminals, GSM AMM, Q24x6, EDGE telematics, wireless payment terminals, CDMA embedded

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  • Wavecom - wireless solutions for M2M communication

    1. 1. WAVECOM Corporate Presentation Including Q1 2008 Financials
    2. 2. Forward-looking statements This presentation may contain forward-looking statements that relate to the Company's plans objectives, estimates and goals. Words such as &quot;expects,&quot; &quot;anticipates,&quot; &quot;intends,&quot; &quot;plans,&quot; &quot;believes&quot; and &quot;estimates,&quot; and variations of such words and similar expressions identify such forward-looking statements. The Company's business is subject to numerous risks and uncertainties, including probable variability in the Company's quarterly operating results, manufacturing capacity constraints, dependence on a limited number of customers, variability in production yields, dependence on third parties, currency rate changes and risks associated with managing growth. These and other risks and uncertainties, which are described in more detail in the Company's most recent filings with the Securities and Exchange Commission, could cause the Company's actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.
    3. 3. Agenda <ul><li>Smart wireless. Smart business. </li></ul><ul><li>Financial highlights Q1 2008 </li></ul><ul><li>Conclusion </li></ul>
    4. 4. WAVECOM - Company Profile <ul><li>A world leader in pre-packaged wireless communications solutions for automotive, industrial (machine-to-machine) and mobile professional applications </li></ul><ul><li>Publicly traded on the Euronext and Nasdaq exchanges </li></ul><ul><li>Headquartered in Paris with offices in Hong Kong (China), Beijing (China) Research Triangle Park, NC (USA), Farnborough (UK) </li></ul><ul><li>~500 total employees 70% focused on R&D </li></ul><ul><li>Fabless model with outsourced production </li></ul><ul><li>A worldwide network of more than 40 value-added distributors </li></ul>
    5. 5. Wavecom’s vision… <ul><li>Vehicles are safer, </li></ul><ul><li>Energy consumption is optmimized, </li></ul><ul><li>Homes and offices are safe and secure, </li></ul><ul><li>Rural communities are connected, </li></ul><ul><li>Payments are easier… </li></ul>To be the driving force in building a fully connected wireless world
    6. 6. A wide adressable market and a huge potential <ul><li>« In Europe and the United States alone there are 1.1 billion generic machines , such as computers, photocopiers, burglar alarms and point-of-sales devices that could readilly be connected, yet during 2007, just 2% were  » </li></ul><ul><li>Telecommunications Predictions, Deloitte, TMT Trends 2008 </li></ul>
    7. 7. How Wavecom adresses its markets M2M Automotive Automotive Mobile Professional Tier One Car Manufacturer OEM Aftermarket Control & Monitoring Sales & Payment Home & Security Vehicle Remote Management Automatic Meter Management Fixed Voice Mobile Computing Entertainment
    8. 8. Huge markets to address <ul><li>As the telecommunications sector could be impacted by a possible economic downturn, the growing M2M market demonstrated its viability, catalyzed by the imminent arrival of the 10$ mobile phone.  </li></ul><ul><ul><ul><li>In Telecommunications Predictions , Deloitte, TMT Trends 2008 </li></ul></ul></ul>(*):Wavecom estimates CAGR (2008-10) Total available market (2008)(*) Wireless adoption Markets 36% 2,9M ~ 4% Industrial Vehicles 39% 2,6M ~ 5% Home & Security 14% 3,8M <1% Mobile professionals 31% 1,6M ~ 3% Control & Monitoring 20% 3,0M ~ 5% Metering 29% 6,3M ~3% Automotive
    9. 9. Wavecom has a history of innovation 2004 2006 2003 Open AT ® Software Suite Software suite complete with Integrated Development Environment making wireless M2M development easier and faster First wireless Module  Pre-packaged and pre-qualified for handsets and machine applications  Focus on intellectual property and software development Pioneer in Fleet Management Early applications for tracking mobile assets like vehicle fleets 1997 1993 Wavecom Founded The vision: everything could be connected wirelessly Wireless Microprocessor ® Breakthrough in high performance processing wireless connectivity on a single component 2000 inSIM ® Embedded SIM for automotive and industrial applications 2006 2007 Complete solutions Wavecom Intelligent Device Services combined with Anyware Technologies to offer first complete solution 2008
    10. 10. Typical Value Chain: Automotive Silicon Software Wireless CPU ® or Module System (e.g. car) Retail Sub-System (e.g. Telematics Platform) Wavecom + Wavecom suppliers Wavecom Wavecom Customer: Telematics Box Customer’s Customer: Volvo (Ford Premier Auto) Car Dealership Sells to consumer Service Provider Volvo on Call Wavecom Wavecom is evolving from a hardware and software company to a full solution provider
    11. 11. Unique Technology Ownership/Position … <ul><li>Wavecom is unique in owning its own technology </li></ul><ul><ul><li>Many hundreds of man years of development over the last fourteen years </li></ul></ul><ul><ul><li>Field proven in over 30 million devices </li></ul></ul><ul><ul><li>Licensed to semiconductor and handset companies </li></ul></ul><ul><li>Key Owned Software </li></ul><ul><ul><li>Protocol stack, GSM through UMTS/HSDPA </li></ul></ul><ul><ul><li>TCP/IP, evolving to IPv6 </li></ul></ul><ul><ul><li>Real-time operating system </li></ul></ul><ul><ul><li>Integrated development environment, powered by Eclipse, C programming </li></ul></ul><ul><li>Key Owned Silicon </li></ul><ul><ul><li>GSM/GPRS/EDGE baseband </li></ul></ul><ul><ul><li>3G hardwired modem - FPGA available with live calls </li></ul></ul><ul><li>NEW: client-server remote device management system </li></ul><ul><ul><li>Core engine licensed from a third party who sold to handset business with complete rights to sublicense, & licensee cannot compete </li></ul></ul><ul><ul><li>Customized for Wavecom DOTA and industrial and automotive applications </li></ul></ul>
    12. 12. The Wavecom approach <ul><li>The traditional approach is to add wireless modules and software in an existing system… </li></ul><ul><li>Wavecom proposes a complete embedded solutions, hardware + software + that can be directly integrated into end products with the add-on of post-installation services. </li></ul><ul><li>It is simple and cost effective since the application processing can be done directly on the Wavecom wireless CPU </li></ul>
    13. 13. Wavecom’s Basic Strategy four key principles <ul><li>Integrate to remove redundant hardware </li></ul><ul><li>Most efficient supply chain </li></ul><ul><li>Updating of software remotely – Over-the-Air </li></ul><ul><li>Full value-chain solutions (Anyware Technologie) </li></ul><ul><li>Integrated Development Environment powered by Eclipse™ </li></ul><ul><li>Software support – Standard C programming </li></ul><ul><li>Superior technical support </li></ul><ul><li>Unique technology ownership </li></ul>Lowest cost of ownership Future investment protection Ease of Use Sustained leadership
    14. 14. Wavecom Solutions (Software+Hardware+Server+Subscription) OpenAT ® Software Suite Wireless Microprocessor ® Hardware inSIM ® Embedded SIM Remote Device Mgmt. Services <ul><li>Lowest total cost of ownership </li></ul><ul><li>Ease of use </li></ul><ul><li>Investment protection </li></ul><ul><li>Sustained leadership </li></ul>
    15. 15. Intelligent Device Services (IDS)
    16. 16. Anyware: a strategic acquisition <ul><li>A leader in M2M Solutions and Services </li></ul><ul><li>Complementary – IDS fits right in, plus global sales channel </li></ul><ul><li>A long term partner </li></ul><ul><li>Strong client portfolio (CBS Outdoor, EDF, Sogexi and Schneider Electric) </li></ul><ul><li>Expected synergies/developments </li></ul><ul><li>An accretive acquisition for Wavecom </li></ul>
    17. 17. Anyware M2M OperatingPortal & IDE Communication Device Management Data Logging Event Management Alerting APIs (web services, Java, SQL) M2M Middleware IDE Based On Eclipse Access Control Street Lighting Monitoring
    18. 18. Agenda <ul><li>Smart wireless. Smart business. </li></ul><ul><li>Financial highlights Q1 2008 </li></ul><ul><li>Conclusion </li></ul>
    19. 19. Revenues and backlog In millions of euros 50 40 30 20 10 60 70 Q4 2007 Q1 2007 82.4 Q2 2007 70.9 Q3 2007 52.3 41.7 2007 Revenues: 202.3 million € Q1 2008 37.5 Quarter-end backlog Millions of €
    20. 20. Sales evolution on an annual basis Breakdown by region In millions of euros 2006 2007 Americas APAC Services and licensing Products by region 188.8 202.3 EMEA
    21. 21. Sales evolution per quarter Q1 2007 Q4 2007 Q1 2008 60 50 40 30 20 10 Americas APAC Breakdown by region In millions of euros Products by region Services /licences/Anyware 48.1 45.7 38.1 EMEA
    22. 22. Gross margin Q1 2007 Q3 2007 Q4 2007 Q2 2007 2007 average: 45.4% (product: 47.3%) (as % of revenues) Q1 2008
    23. 23. Results FY 2007 – US GAAP
    24. 24. Results Quarters – US GAAP
    25. 25. Employees worldwide 2006 2007 Q1 2008 571 440 483 88% 87% 85% Temporary employees and independent contractors Salaried employees
    26. 26. Agenda <ul><li>Smart wireless. Smart business. </li></ul><ul><li>FY 2007 highlights </li></ul><ul><li>Conclusion </li></ul>
    27. 27. Wavecom Trends and Objectives <ul><li>Volumes increasing </li></ul><ul><ul><li>Growth more in GSM than CDMA, customers switching globally </li></ul></ul><ul><ul><li>ASP of CDMA much higher than GSM </li></ul></ul><ul><li>Introduction of new, low cost Wireless Microprocessor® products and subsystems </li></ul><ul><ul><li>Best total cost of ownership for our customers </li></ul></ul><ul><ul><li>Ability to significantly reduce price and maintain margins </li></ul></ul><ul><li>More contact with end-customers and service providers </li></ul><ul><li>Acquisitions of key strategic targets to continue, but focus will be on smaller deals </li></ul>
    28. 28. Wavecom’s acquisition strategy <ul><li>External growth: </li></ul><ul><ul><li>Transformational - Sony Ericsson M2M business </li></ul></ul><ul><ul><li>Technology-specific – Anyware Technologies </li></ul></ul><ul><li>Acquisitions to continue – targeting companies that will give us specific technologies that enhance our product and/or service offer </li></ul>
    29. 29. 2008 Business initiatives <ul><li>Redeploying ressources to applications engineering to support design wins </li></ul><ul><li>Re-energize EMEA sales team and distributors </li></ul><ul><li>Expand customer and revenue base with Anyware model – software, services, system </li></ul><ul><li>Profitable growth </li></ul>
    30. 30. Capital structure <ul><li>Total number of outstanding shares: 15 796 591 – Float : 58% </li></ul><ul><li>Dual listed </li></ul><ul><ul><li>Euronext Compartment B, Isin code FR0000073066 </li></ul></ul><ul><ul><li>Nasdaq: wvcm (ticker) </li></ul></ul><ul><li>Financial calendar: July 23, 2008 Q2/H1 2008 results </li></ul>58% 22% 6% 6% Treasury Float Founders 3% Sloane Robinson (UK) Jo Hambro (UK) 5% Lansdowne Partners (UK)
    31. 31. 3, esplanade du Foncet - 92442 Issy-les-Moulineaux Cedex - France Tel: +33 (0)1 46 29 08 00 - Fax: +33 (0)1 46 29 08 08 _______________________________________________ 430 Davis Dr., Suite 300 P.O. Box 13920 - Research Triangle Park, North Carolina USA Tel: +1 919 237 4000 Fax: =1 919 237 4140 _______________________________________________ Unit 201 – 207, Second Floor, Bio-Informatics Centre No. 2 Science Park West Avenue Hong Kong Science Park, Shatin - New Territories, Hong Kong Tel: +852 2824 5225 - Fax: +852 2824 5488 WAVECOM S.A. WAVECOM, Inc. WAVECOM Asia Pacific