20 year-old established company with established clientele Repeat Canadian and Overseas clients (recurring revenues) Revenues in 2013 of $10.

Transcription

1 NTG Clarity Networks Inc. Your Network Services Partner TSX Venture: NCI May,

2 One Page Investor Summary 20 year-old established company with established clientele Repeat Canadian and Overseas clients (recurring revenues) Revenues in 2013 of $10.5 million and Net Income of $1.86 million or $0.06 per share. Positive working capital of $4.4 million ($0.12/share) US$6 million in new orders announced since April To be completed over next 6-12 months Significant international growth potential Strong leadership with vast network of contacts Proprietary and innovative products Single source provider; Leadership position of NTS product 2

3 NTG Corporate Overview Telecom and IT infrastructure solutions provider and a leader in the telecommunications OSS/BSS market Established in 1992, servicing telecom, utilities, enterprise and government. Offices and operations in Canada (Toronto), USA, Egypt (Cairo, Aswan), Saudi Arabia (Riyadh), Bahrain, Qatar, and Kuwait. 150 IT, Network and engineering professionals and over 200 senior consultants and associates. Track record in designing, developing, and supporting advanced systems, networks, OSS/BSS and e-business solutions. 3

4 Vision To be the leading provider of quality network products and services in the Middle East Africa South America North America

5 NTG Value Proposition NTG partners with groups who Design, Build, Manage, and Support Networks and Network Applications. We are the experts in applying People, Methodology, Process, and Technology to provide Quality and on time Network Services; on your premises or ours. We help you, our customer, to increase revenue, improve customer satisfaction, and focus on your bottom line We are your Network Services Partner!

6 Organization Principles Our company prides itself on providing Operational Excellence for our customers; We consistently have the right skills for delivering the right solution to our customers; Our approach is to be responsive, cost competitive and highly effective. Resources are aligned by major customers and/or geographic centre; Core employees (i.e. Non-billable) are senior, experienced individuals with proven track records in their field of expertise; Field Employees (i.e. Billable) are sourced from a data base of X individuals principally with Engineering, Computer Sciences

7 Value Added by NTG Why do clients choose to outsource to NTG? Prefer to focus on their core business Require resources with unique skill sets Engineers and IT professional in high-demand and expensive Training costly and time-consuming Encounter headcount freezes Easier to obtain consulting budgets than permanent headcount Consultants create financial flexibility Quality service at competitive price Proprietary products at very competitive prices NTG will deliver dedicated, skilled resources to complete projects on time and on budget.

8 Some of Our Clients 8

9 Egypt Aswan Water and Wastewater Co. NRC DANIDA CIDA BDSSP Project

10 Saudi Arabia Kuwait

11 Products and Expertise IT Professional Services Training Services User Training Security Software Development & Customization OSS/BSS Implementation Systems Integration Security Software Offerings BSS & OSS Corporate Portals ERP Smart2Go E-Business System 11

12 NTG Telecom Services 12

13 Convergence and Divergence PSTN OSS/BSS is a key enabler Mobile WiFi/WiMax Internet Video nts OSS/ BSS Integrated end-to-end solution Network Elements Service Management Middleware 13 Customized Individual Services

14 NTS World Class Solution Customer Self- Care Sales Reps CSRs Network Engineers Field Technicians UNIFIED SERVICE ORDERING KNOWLEDGE MANAGEMENT NETWORK DESIGN AND INVENTORY Start Browse Inventory SERVICE ASSURANCE OSS Integration Ordering Credit Check Shipping End SLA Fault / Performance Network Inventory DATA SERVICE/ PROVISIONING NETWORK DISCOVERY Reconciliation Activation Discovery Engine Network Network Repository NTS gives customers the ability to manage their business operations across departments or enterprise-wide, in a completely integrated holistic environment 14

15 Two Business Sectors 1. Professional Services (Telecom & IP) Gross margin: 35% Revenue Distribution 65% 35% 2. Software Products & Integration (OSS/BSS) Gross margin: 60% Professional Service Software International Revenues 99% 15

16 Competitive Analysis The competitive landscape ranges from internally grown IT legacy systems to recognized large commercial and mid size players. In addition to recognized competitors there are an estimated 400 smaller boutique providers who typically specialize in individual components rather than an end-to-end OSS solution. There is a growing trend to move away from home grown legacy OSS systems that can no longer service CSP business requirements to commercial solutions developed with open architecture. Large scale commercial OSS systems are expensive to acquire, and difficult to integrate and maintain. Small scale commercial OSS systems are typically lacking in function capability, limited in scalability, and cannot deliver an end-to-end OSS solution. There is a significant void in the market for a fully integrated solution, that is scalable, provides a low total cost of ownership, and a tangible ROI 16

17 Competitive Landscape Large Commercial: Amdocs Telcordia Mid-size Commercial: Metasolv(Oracle) Syndesis Cramer Eng House NetCracker In-house IT developed systems 17

18 NTS Positioning Full OSS Functions AmDocs NTS Syndesis Agilent Functionality 300+ Small OSS Vendors ABC OSS ABC OSS ABC OSS Netcracker Telcordia Cramer MetaSolv Single Module Digital Fairway ABC OSS ABC OSS ABC OSS ABC OSS Local ISP Customer Size Global Carrier 18

19 NTS Positioning in Growth/Size Simple Range of Telecom Services Inefficiency Pain Complex OSS Cost ($) Typical Large OSS Growth Pain NTS Simple OSS Spreadsheet Spreadsheets and small OSS can t scale up NTS Can Move In Either Direction Large OSS can not scale down 19

20 A Strong Growth Story 20

21 A Stable Financial Position Balance Sheet For the Period Ended December 31, 2013 Current Assets $ 7,323,086 Total Assets 10,230,891 Current Liabilities 2,962,225 Long Term Debt nil Shareholders Equity 7,263,837 21

22 Profitable Operations Trailing Financials For the trailing 12 month period ended December31, 2013 Shares Outstanding (Dec 31, 2013) Basic 35,749,891 Fully-diluted 39,045,891 Mgmt controls approx 24% Quarter Revenues Net Income Per Share Q4 / 2013 $3,167,994 $131,178 $0.00 Q3 / 2013 $3,767,669 $784,669 $0.02 Q2 / 2013 $2,149,380 $829,403 $0.03 Q1 / ,486, ,064 $0.01 Total $10,571,915 $1,947,314 $0.06 Current Share Price (May 6, 2014): $0.34 Price to Earnings Multiple: 5.9 times 22

23 Five Strategies for Growth 1. Single-Source Provider 2. Product Development 3. Acquisitions & Mergers 4. Geographic Expansion 5. High-Calibre Professionals

24 Sales Strategy Three sales offices will be established with 3 5 direct sales reps per office. 24

25 A Strong Growth Story Recent Announcements NTG Awarded $2.97 Million Letter of Intent for Managed services and Support NTG Awarded $3.4 Million Letter of Intent for NTG Resources NTG Awarded $1.4 Million USD Contract in a new market for NTG NTG Establishes $3.5 Million CDN Credit Facility Total Contract Announcements = $7.7 Million 25

26 Strong Leadership Board of Directors ASHRAF ZAGHLOUL President, Chief Executive Officer and Chairman of the Board NTG Clarity Networks Inc. KRISTINE LEWIS has extensive experience in the management and operation in the IT and telecom industry The Honourable Sinclair Stevens Ex Industry Minister in the Government of Canada. DR. ZAFAR FAROOQUI Has over 30 years of experience as a senior engineering analyst for major North American organizations. ADEL ZAGHLOUL, Eng. Chairman and CEO, NTG Egypt Former CEO of Electro Cable 26

27 Contact Information Ashraf Zaghloul NTG Clarity Networks Inc. Chief Executive Officer & Chairman of the Board Suite Fourteenth Ave. Markham, ON Canada L3R 0S or (905) NCI (TSXV) 27