For personal use only

Transcription

1 Level 17, 1 Bligh Street, Sydney NSW 2000 Phone: Fax: March 2014 The Manager Company Announcements Australian Securities Exchange Level 5, 20 Bridge Street SYDNEY NSW 2000 By E-Lodgement Dear Sirs ASX Code: FRR Please find attached presentation to be delivered by Mr Mike Hill, the Chairman of FRR Corporation Limited at this morning s Extraordinary General Meeting. Yours faithfully Andrew Whitten Company Secretary

2 RHYPE LIMITED Investor Presentation 21 March 2014

3 Disclaimer This presentation has been prepared by FRR Corporation Limited ACN (FRR). Each Recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set out below. None of FRR and or its subsidiaries or their respective directors, officers, employees, advisers or representatives (Beneficiaries) make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information contained in this presentation, including any forecast or prospective information. The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, the Beneficiaries. Actual future events may vary materially from the forward looking statements and the assumptions on which those statements are based. Given these uncertainties, you are cautioned to not place undue reliance on such forward looking statements. This presentation is a general overview only and does not purport to contain all the information that may be required to evaluate an investment in FRR. The information in this presentation is provided personally to the Recipient as a matter of interest only. It does not amount to an express or implied recommendation with respect to any investment in FRR nor does it constitute financial product advice. The Recipient, intending investors and respective advisers, should: conduct their own independent review, investigations and analysis of FRR and of the information contained or referred to in this presentation; and/or seek professional advice as to whether an investment in FRR is appropriate for them, having regard to their personal objectives, risk profile, financial situation and needs. Nothing in this presentation is or is to be taken to be an offer, invitation or other proposal to subscribe for shares in FRR. Except insofar as liability under any law cannot be excluded, none of the Beneficiaries shall have any responsibility for the information contained in this presentation or in any other way for errors or omissions (including responsibility to any persons by reason of negligence). 2

4 Growth in Vendor adoption of subscription programs Growth as switch from traditional to cloud/hybrid Growth across industry and geographic boundaries within SMB and Enterprise Organisations Vendors Service Providers Customers Microsoft DataCentres VMware Telcos RedHat SI/VAR s Citrix ISV s TrendMicro Veeam MSP s Enterprise Early Adopters Mainstream DataCore SaaS McAfee Cloud Others Others 3

5 Service Provider Licensing Market & Players Arrow ECS Atea Ingram Micro Insight NewLease Largest in APAC Comparex Softcat Crayon HP Software One + 35 others EMEA APAC Atria ECS Express Data Kryptos + 17 others LatAm Adistec Officer Datco RKM Dell SHI US & Canada Ingram Micro Licencias online Software One Tarsus HP Software One Nexsys Ingram Micro Synnex Insight Tech Data Softchoice 4

6 Service Provider Distribution Multi-Vendor, Multi-Geo North America EMEA Asia Pacific Latin America NewLease Arrow ECS Comparex Crayon MSFT, VMW, CTXS, INTC MSFT, VMW, CTXS MSFT, VMW, CTXS MSFT, VMW, RHT, CTXS, INTC, TMICY HP MSFT, CTXS MSFT Ingram Micro MSFT, VMW, CTXS, INTC Insight MSFT, VMW, CTSX MSFT, VMW, CTXS MSFT, VMW, INTC VMW VMW Licencias Online MSFT, VMW, CTXS Software ONE MSFT MSFT, VMW, CTXS MSFT MSFT 5

7 NewLease Partner Activities Hosters SaaS Telcos Cloud Services System Integrators IT as a Service Service Providers Value Added Resellers Datacentres Managed Services ISPs ISVs 6

8 Axis Title NewLease Service Provider Penetration NewLease to Addressable Market Starting in NewLease Partner Base Feb 2014: Category Addressable 1 market Category derived 2 from targeting Category resellers 3 for: Category Microsoft, 4 VMware, Red Hat, Citrix, McAfee, & Cisco Axis Title 7

9 Cloud Ecosystem Public Cloud dominated by Amazon but Microsoft growing rapidly Service Provider Cloud is a core strength for NewLease s partners that enable more customizable Clouds for their customers Hybrid Cloud combines pure Private Clouds with the use of Public or Hosted Cloud services to build a more complete solution for companies that leverage Hybrid offerings and NewLease s partners are key to the success of Hybrid Cloud in the NewLease markets Large Public Cloud Service Provider Clouds (Private Cloud) Hybrid Cloud 8

10 NewLease Business Model the Next Generation Software Channel Traditional Perpetual Sale everything is geared to the next big sale NewLease Subscription everything is geared to grow ongoing usage Stock Lower growth, lumpy market Sales focused Promised value Logistics driven Price driven Large players looking for large sales Sell High growth market Recurring revenue Higher margins Value focused Answering demand for Hybrid & Service Provider Clouds Use 9

11 NewLease Financial Summary NewLease financial statements ($000s) Year Ended Year Ended Year Ended 30-Jun-11 (unaudited) 30-Jun-12 (audited) 30-Jun-13 (audited) Revenue 25,513 37,822 51,514 EBITDA EBITDA after adding back growth investment expenditure expensed* n/a n/a 1,644 47% CAGR in revenues over the past 5 years Future reported earnings will vary depending upon the level of investment made to fund growth opportunities. In fiscal 2013, this growth investment represented c.$760,000 and in 2014 it is currently estimated to be in excess of $1m. In line with the companies conservative nature and reflective of the cash generated within the business, these costs are being expensed not capitalised. 10