Strictly Confidential The following material is confidential and may not be used or disclosed without the prior written permission of Clarity International Pty Ltd, or pursuant to the terms of any confidentiality agreement that may have been entered between Clarity International Pty Ltd and the recipient of the material.
Clarity OSS Limited (ASX:CYO) October 2012 F
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Disclaimer
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This presentation is not and does not form part of any offer, invitation or recommendation in respect of securities. Any decision to buy or sell Clarity OSS Limited securities or other products should be made only after seeking appropriate financial advice. Reliance should not be placed on information or opinions contained in this presentation and, subject only to any legal obligation to do so, Clarity OSS Limited does not accept any obligation to correct or update them. This presentation does not take into consideration the investment objectives, financial situation or particular needs of any particular investor.
This presentation contains certain forward-looking statements, which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “intend”, “anticipate”, “estimate”, “continue”, “assume” or “forecast” or the negative thereof or comparable terminology. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performances or achievements, or industry results, expressed or implied by such forward-looking statements.
To the fullest extent permitted by law, Clarity OSS Limited and its affiliates and their respective officers, directors, employees and agents, accept no responsibility for any information provided in this presentation, including any forward looking information, and disclaim any liability whatsoever (including for negligence) for any loss howsoever arising from any use of this presentation or reliance on anything contained in or omitted from it or otherwise arising in connection with this. F
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2010 Frost & Sullivan OSS Vendor of the Year
2011 Frost and Sullivan Global Technology Innovation Award
2011 Gartner OSS Magic Quadrant - Visionary
Market leading operational management systems for telecom networks
Deep industry experience, founded in 1994 with offices in Sydney, Asia and EMEA
Deployed at more than 30 CSPs globally, managing over 500M subscribers
Clarity is a Global OSS Provider
FY12 saw 4-fold increase in orders and 100% increase in revenues to $32.6M
Clarity Customers
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Call Centre
What Clarity Does
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Clarity makes software that automates the network processes of telecoms companies.
Network
Operations Centre ASSURANCE
Clarity monitors the network to see
if anything may affect service quality.
FULFILMENT Clarity manages what needs to be
done in the network to activate services. “I’m finally getting my
own place to live.”
“We need more capacity in this area.”
“I’m moving to bigger business premises.”
“Today I need to fix these line faults.”
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Clarity Unified and Modular Portfolio
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Infrastructure Management Fulfilment Assurance
Clarity
Services
Marketplace
Customer Manager
Unified Catalog Order Manager Revenue Manager
Business Quality Manager
Network Project Controller
Network Asset Controller
Network Site Controller
Service Manager
Inventory Manager
Identifier Manager
Discovery
Performance Manager
Alarm Manager
Ticket Manager
SLA Manager
Field Service Manager
Test Manager
Consulting
Education
Support
Partner Support
Spatial Manager
Network and Systems
Element Connect System Connect
Program Governance
Report Connect
Build
Fulfil
Assure
Sell Concept to Sale • Self-service portal for Subscribers and Partners • Consolidation of supply-chain • Rapid deployment of new products • Allow resellers to innovate with value added services
Plan to Operate • Optimise network
roll-out, reduce costs • Increase roll-out and
upgrade efficiency • Reduce
time-to-market for new capacity
• Comply to legal requirements
Order to Cash • Reduce cost and
errors with orchestration of manual and automated processes
• Integrated multi-network activation
• OSS/BSS/Partner process updates
Trouble to Resolve • Proactive network
management • Rapid identification of
root-cause fault • Continuously improve
customer experience • Differentiate with
integrated SLAs
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Clarity’s Products - Unified and Modular
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Infrastructure Management Fulfilment Assurance
Clarity
Services
Marketplace
Customer Manager
Unified Catalog Order Manager Revenue Manager
Business Quality Manager
Network Project Controller
Network Asset Controller
Network Site Controller
Service Manager
Inventory Manager
Identifier Manager
Discovery
Performance Manager
Alarm Manager
Ticket Manager
SLA Manager
Field Service Manager
Test Manager
Consulting
Education
Support
Partner Support
Spatial Manager
Network and Systems
Element Connect System Connect
Program Governance
Report Connect
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Transformation Journey
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FY11 • Build strong
Management Team • Clearly define “Go
to Market” proposition and approach
• Improve product offering
• Improve delivery capabilities
FY12 • Product
modernisation • Timely delivery of
projects • Release of targeted
market solutions • Improve customer
referencability • Increase proportion
of revenues derived from licence sales
FY13+
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Experienced, Proven Management
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Jon Newbery Chief Executive Officer •25 years of global management, finance,
operational and turnaround experience •CEO of Clarity since November 2008
Duncan Stephens Director of Product Management • Joined in 2010 •Previously Alcatel-Lucent on major projects
including Telstra and TNZ transformation
Christopher Smith Chief Operating Officer • Joined June 2009 •Previously Telcordia, Syndesis, Alcatel
Andrew Wrigglesworth Chief Financial Officer • Joined March 2010 • Previously Energis, Cable and Wireless, Vanco,
Reliance Globalcom
Tony Garcia Chief Commercial Officer • Joined May 2010 • HP, Telcordia and Easynet / BSkyB
Judi Gill Director of Marketing • Joined August 2009 • Previously Accenture, Optus, BT, Bharti,
Telcordia
Tony Kalcina Founder and Strategist • As Founder of Clarity, Tony conceived the
Unified Operational Management vision • Member of TM Forum Advisory Board
Jon Collins Senior Vice President, Global Sales • Joined August 2012 • Previously AT&T, Syndesis, Telcordia and
Ericsson
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Why is Clarity’s Product Different?
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18 years of proven deployments from small to
100M+ subs telcos. Leading edge technology
Core base of code for all modules and processes
Only independent player in Gartner’s OSS Magic
Quadrant
Only provider to offer a full range of both fulfillment and
assurance capabilities
Unified OSS Solution
Independent Product
Innovative, Proven and
Robust
Single Code Stream
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Clarity has a Compelling Business Model
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TENDER PROCESS 12 to 18 months
IMPLEMENTATION 1 to 3 years
CLIENT MAINTENANCE
Ongoing
UPGRADES Ongoing
• Direct or via Partner Channels
• Typical initial engagements are $3 - $10M (largest $40M+)
• Licence fees
• Services fees (SME and Implementation)
• Maintenance fees
• Application maintenance
• Fees on new modules
• Service fees on version upgrades
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FY12 Financial Improvements
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0
20
40
60
80
FY11 FY12
$22
$79 Mill
ions
Orders
FY11
FY12
0
10
20
30
40
FY11 FY12
$17
$33
Mill
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Revenue
FY11
FY12
-$12
$2
(15) (5) 5
FY11
FY12
Millions
Net Profit
FY11
FY12
0
10
20
30
40
FY11 FY12
$11
$35 Mill
ions
Contracted Revenue for next Financial Year
FY11
FY12
Financial highlights include a nearly 4-fold improvement in new orders to $78.6 million, a doubling of revenues to $32.6 million, a positive operating result for the year and an outlook for strong growth into the new financial year.
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Transformation Journey – the Next Phase
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FY11
• Build strong Management Team
• Clearly define “Go to Market” proposition and approach
• Improve product offering
• Improve delivery capabilities
FY12 • Product
modernisation • Timely delivery of
projects • Improve customer
referencability • Release of targeted
market solutions • Increase proportion
of revenues derived from licence sales
FY13+ • Build ‘Channel
Readiness’ capabilities
• Extend market reach through partners
• Expand into new regions
• Continue to deliver innovative solutions
• Increase profitability
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Opportunistic growth through partner channels
Opportunistic growth through partner channels
Organic growth in active AsiaPac with existing and new customers (Current market success rate is approximately 8%)
Opportunity to invest in dedicated resources and partner channels in neighbouring AsiaPac countries and benefit from local presence and reference sites
Opportunity to capitalise on initial EE and MEA successes through direct and partner channel investment
FY13/14 Global footprint expansion strategy in high growth emerging markets with regional partners
Opportunistic growth through partner channels
Clarity’s Significant Market Opportunity
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Rest of World (China, Japan, HK, S Korea) $1,465M
North America $2,129M
Western Europe $1,775M
CALA $622M
E. Europe, MEA $965M
AP Other $251M
AP Active $371M
Market size $7, 579 in CY2012. Source: Worldwide TOMS Spending (BSS, OSS and SDP) Gartner March 2012
$7,579M
$6,114M
$3,984M
$2,209M
$1,587M
$622M
$371M
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• Very High Data Usage driven by Smart Devices • High Subscriber Growth in Emerging Markets
• LTE/4G • Next Generation Broadband / IP Networks
• Traditional Service Provider Competition • ‘Over the Top’ Players – Apple, Google • Evolving business models for M2M and Cloud
. . . Underpinned by Several Drivers
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Usage Growth
New Technology
Competition and
Innovation
Integrated systems for operational efficiency and business agility
Process flexibility Extended supply chains Cost efficiency
Service quality management Real-time analytics
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Key Takeaways
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• FY12 saw orders grow nearly 4-fold to $78M and revenues increase 100% to $32.6m
Sales momentum
• Blue chip, global customers, outstanding record of customer retention and ongoing revenue streams
Customer relationships
• Market leading and integrated technology as awards and sales momentum illustrate
Outstanding technology
• Outstanding management team with deep experience in OSS, who have successfully developed and led the market growth strategy Management
• Clear strategy to expand market reach and presence Plan for Growth
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Thank You For more information, please go to clarity.com
16 Copyright © Clarity International Pty Ltd (ACN 063 732 883) 2012 All Rights Reserved
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