ideiasnet20091118v1 english
TRANSCRIPT
IDEIASNETNovember 2009
www.ideiasnet.com
Ideiasnet is a venture capital firm that invests in entrepreneurs in Brazil and Latin America;
We actively participate in all the development stages of the companies we invest in;
Ideiasnet has built a solid portfolio that is well diversified into three segments:
E‐commerce, Infrastructure & Telecom and Media, Communications & Content.
2
About Us
Investment basis
ManagerIdentification of managers with unique skills
to set the pace for leading portfolio
companies in their segments
TMTVenture
Capital in the Technology,
Media & Telecommunications
sector
ScalabilityTrack record in identifying scalable
business opportunities
ExitClear view of portfolio dynamism,
from investment to divestment
process
3
Entrepreneurs who invest in entrepreneurs
Highlights
2000 -
2004 2005 -
2008
4
•
Braspag’s divestiture ‐
IRR of
162,2% per annum
•New investments: MoIP, Site
Blindado
2009
Over 250 projects were evaluated and 22 investments made in the last 5 years
Over 100 projects evaluated in 2009
• Public Offering of Capital
• High level of Corporate Governance
• Evolution in positioning –Internet Incubator x Investment
Company in Technology
• Incorporation of the Pactual Internet Fund, including the
following companies: Padtec,
Automatos and Spring Wireless
• Officer’s acquisition
•
New Investments : Addcomm,
Braspag, TrinnPhone, Bolsa de
Mulher, NetMovies, Zura!,
TecTotal, BrANDS
•
Consolidation of current
portfolio
•
Entry into the Novo Mercado
of Bovespa
Ideiasnet has evolved from an Internet Incubator to a Venture Capital company investing in technology
MANAGEMENT
Management
Marcelo Rodrigues Almeida
37 y.o.
Business Development Director
Luis Alberto M. Lobato Reátegui
42 y.o.
CEO
Rodin Spielmann de Sá38 y.o.
IR and Business Development Director
•
CEO since June 2008•
Former Director, Banco Bozano Simonsen Brazil, Europe and USA,
and Banco Santander Brazil
•
Entrepreneur in Latin America•
MBA ‐
Sloan School of Management at MIT•
B.S. in Civil and Industrial Engineering ‐
PUC‐RJ
•
Officer since June 2001•
More than 7 years of experience at Banco BBM•
MBA –
Fundação Getulio Vargas, RJ•
B.S. Mechanical & Industrial Engineering ‐
PUC‐RJ
•
Officer since March 2006•
Former CEO of Deltalink, IT branch of Delta do Prata•
Founded and managed 3 media and communications companies•
B.S. in Business Administration –
Universidade Federal do Rio de
Janeiro (UFRJ)
5
Alexandra de Haan39 y.o.
CFO
•
CFO since July 2009•
Former Director, Unik Group•
Co‐founder Mundivox Communications•
MBA by Columbia Business School•
B.S. in Economics by Georgetown University
Entrepreneurs we invest in
FÁBIO GAIA –
Founder and CEO, Officer
• Member of the HP and IBM Latin America Board
• International Counselor for Microsoft in the PME
sector
JORGE SALOMÃO PEREIRA –
Founder and CEO, Padtec
• Former CPqD researcher
• Ph.D. in Physics (Optical Communications) from Unicamp
FELIPPE LLERENA –
Executive Director iMusica
• Former CEO Natasha Records
• B.A. in Marketing and International Relations from NYU
ANDIARA PETTERLE – CEO Bolsa de Mulher
• Led convergence projects at TV Globo
• M.A. in Communications from PUC – exchange student
program at Brown University
• Executive education in Women Leadership at
Harvard Business School
DANIEL TOPEL –
Founder and CEO, NetMovies
• More than 10 years of experience (5 years at Silicon Valley)
• Master in Science & Engineering Management from Stanford
University (USA), B.S. in Physics from the Imperial College (UK)
MARCELO CONDÉ
–
Founder and CEO, Spring Wireless• MBA from Harvard Business School, Robotics and
Mechanical Engineer from USP
JOÃO PEDRO ROTTA – CEO TrinnPhone• Executive MBA from Wharton Business School• Former Engineering Director for Latin America, Shell • Volunteer for the Endeavor Business Plan
6
Milestones
7
Our Portfolio
8
93.7% 95.7%48.0% 78.8%40.0% 70.0% 100.0%54.0%
100.0% 34.2% 97.0%10.2% 34.6% 31.1%100.0%
60.0%
2005 2004 20002004 2004 2004
2000 20072006 2006 200020002004 2005 200523.3%
100.0%
IdeiasVentures
30.0% 2007
2008 2008
2008100.0%
2008100.0%2008100.0%
9
200820082009 2008 2008100.0% 100.0%100.0%100.0%100.0%
2005 2009
Organizational Chart
Current participationYear of first investment
41.3%
30.0%
2009100,0% 2009100,0% 2009100,0%
200928,6%
Portfolio segmentation
E‐COMMERCEMEDIA, COMMUNICATION
& CONTENTINFRASTRUCTURE & TELECOM
EARLY
BALANCED
LATER
10
Co‐
investors
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Segment Drivers
Infrastructure & Telecom
Media,
Communications
& Content
E‐commerce
•
Companies positioned in Brazil and Latin America
•
Increase of the digital stake in advertising budgets •
62,3 million Internet users (Brazil); 135 million (Latin America)
•
A basis of 155 million mobile phones (Brazil); 444 million (Latin America)
•
Internet Videos as high‐impact media
•
Niche contents, greater relevance and better monetization
• Growth of user base
• New solutions for security and means of payment
• Improvement of search systems and CRM
• Sector formalization and consolidation
• Logistics optimization, with new technologies
• Growth of installed broadband and mobile communications base
• Increased availability of online services, content and band need
• Digital TV coverage increase
• New technologies and business models – e.g. FTTH and WIMAX
12
Source: Ibope Nielsen, Teleco, Internet World Stats
13
Increased and cheaper availability ofbroadband
Demand for data traffic
New devices and video streaming
Increase in internet
penetration
Reduction of grey market
Increase in PC penetrationsmartphones
Corporate demand for
communication services and
mobile services
Ideiasnet ‐
positioned to capture the sector’s growth
The leading hardware and software wholesaler in Brazil
• 40 suppliers and 10,000+ clients
• Main product lines: software, hardware, components and supplies
• Elected best wholesaler in Brazil in 2007 (“Exame” magazine)
• Winner of 15 out of 16 awards in the 2008 edition of the “preferred distributor” contest (CRN Magazine)
• Best company in the wholesale sector in the 32nd edition of Gazeta Mercantil’s Balanço Annual 2008
Competitive advantages
• Market share
• Relationship with suppliers and clients
• Management expertise
• Logistics
Growth opportunities
• Growth of the Brazilian Hardware and Software markets
• Investment in working capital
• Geographic expansion in Brazil
Officer
Officer positioning in the supply chain
Com
prad
ores
Cor
pora
tivos
de
TI
FAB
RIC
AN
TES
Atacadistas e Distribuidores
Varejo
RevendedoresMulti -marcas
Revendedores Dedicados
IT C
orpo
rate
Buy
ers
DIRECT SALESM
AN
UFA
CTU
RER
S
WholesalersDistributors
VarejoRetail
Multi-brand
DedicatedResellers
Resellers
R$ million
100,0%100,0%49,5%
Ideiasnet Ownership
14
549,4649,1
13,4 13.8 24,1
727,2
Margem EBITDA
2,7% 2,1% 3,4%
12,0%
18,0%
65,9
20,7
30,8
19,4
2006 2007 2008
Padtec
Main markets
The leading provider of solutions for the opticalcommunications market
• Designs, manufactures and sells products that increase the
transmission capacity of existing fiber optic networks (WDM)
• Main clients: Telecommunication, Utilities and Financial sector
companies
Competitive advantages
• R&D (Partnership with CPqD)
• High quality service: Pre-sale engineering, Post-sale dedicated support teams
• Compatibility with legacy systems – interoperability
Growth drivers
• Strong global and Brazilian traffic growth: IP, VoIP
• International expansion: offices in Mexico, Colombia, Argentina and South Africa; acquisition of Civcom (Israel)
• Part of Telefónica’s global short-list
• Organic growth:
- New products (e.g. G-PON)
- New Markets for existing products (Telefônica, GVT, CTBC)
- Share of wallet
• Acquisitions (complementary products)
Wireline
Telephony
Operators
Mobile Telephony
Operators
Storage Networks
Database Network
Operators
Fiber to the home
Net Revenues EBITDA
90,4
15
34,2
%
34,2%22,5%
Ideiasnet Ownership
R$ million
113,5
Margem EBITDA
31,2% 34,1% 17,1%
37,0%
26,0%
Spring Wireless
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The leading provider of corporate mobile solutions in Latin America
• Develops software for sales force automation, mobile banking applications and mobile payment
• More than 250 major clients and 200,000 users, present in more than 14 countries: Latin America, USA and Europe
• Main clients: InBev, Nestlé, Citibank, Santander, Unilever, Procter&Gamble and Telefónica
• Elected the Best Company in the software sector by the Info Exame 2007 magazine and chosen as global success case by
Microsoft in 2005, 2006, 2007
• New shareholders: Goldman Sachs and NEA (New Enterprise Associates)
• One of 2 companies added to Gartner’s 2008 Magic Quadrant For Mobile Enterprise Application Platforms
Competitive Advantages
• Consolidated leadership position in financial services - 70% market share in Brazil
• Acts as the only point of contact for its clients -- long-term partnership with clients
• Adaptable products to the international market, and compatible with the various technological platforms and wireless devices
• End to end solutions: implementation and management which include software, infrastructure, connectivity, and services
Growth Opportunities
• Organic growth: geographic expansion and increase in service supply
• Mergers and acquisitions
• Uniquely positioned to become a world leader in critical mobile solution mission
Bolsa de Mulher
The leading internet communication group for women in Brazil
•
Focused on women solutions, it has social network, multiplatform content, services, e-commerce, relationship tools
and e-learning. Develops and markets Business Intelligence about woman consumption.
• Also operates in the astrology, nutrition, life quality, celebrities, gastronomy and e-cards segments.
• Revenue sources: advertising, mobile, content licensing, e-commerce and research.
• The Group:
- Estrela Guia, TeContei, Bem Leve, Feminice, Universidade Feminina, Bolsa de Bebê, Netcard, SophiaMind,
Pink Ad Network and iTodas
• Acquired the portals Estrela Guia, Feminice and Bem Leve (2008); TeContei and iTodas (2009)
Competitive Advantages
•Woman social network leader in Brazil – 31% of market share *
•More than 7.5 million unique visitors and 9.0 million registered users
•Social Network: profitability over the advertising market parameters
International Expansion
• 2008 – Initiated expansion focused on Latin America: Mexico, Chile and Argentina
• 2009 – Hired Spark PR (Silicon Valley) to built international awareness
- Country manager and office in NY
* Company’s assumption 17
Some comparables
18
IDNT Company Comparable Country
Ticker: AUFrance
Ticker: NFLX
USA
USA
Brazil
USA
Ticker: IMUSA
USA
Financial Highlights
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0,02,04,06,08,010,0
R$ 0R$ 200R$ 400R$ 600R$ 800
R$ 1.000R$ 1.200
2005 2006 2007 2008 out-09Volume (R$) Stock Price
Capital Market / Stock Liquidity/ Shareholding Structure
Total Shares ‐ IDNT3 104.252.397
Market Cap ‐ R$ R$ 552.537.704
Market Cap ‐ US$ US$ 316.713.117
Price per Share ‐ R$
Conversion Rate (US$ / R$)
R$ 5,30
R$ 1,74
Volume X Stock Price
20
Basis: October 30, 2009
Main Shareholders
Founder Family
Lorentzen Group
Centennial Asset Mining (EBX)
Mercatto Funds
Volum
e R$
Millions
IDNT3
R$
IDNT3 – October 30, 2009
Basis: October 30, 2009
Accumulated trading volume on the same period (R$)
R$ 000' 2006 2007 2008 9M08 9M09GROSS REVENUES (*) 405.894 959.609 1.079.923 796.678 755.133 -5,2%(‐) Taxes and Deductions (75.294) (188.005) (214.275) (160.670) (146.932)
NET OPERATING REVENUE 330.600 771.605 865.648 636.008 608.201 -4,4%Cost of Product Sold (267.937) (628.331) (698.508) (517.331) (506.028)
GROSS PROFIT 62.663 143.273 167.140 118.678 102.173 Gross Margin 15,4% 18,6% 19,3% 18,7% 16,8%
OPERATING EXPENSES (52.195) (121.819) (138.614) (102.503) (100.816) General and Administrative (51.765) (119.026) (135.865) (100.154) (94.270)
Other operating expenses net (430) (2.794) (2.748) (2.349) (6.546) (=) EBITDA 10.468 21.454 28.527 16.175 1.357 -91,6%Ebitda Margin 3,2% 2,8% 3,3% 2,5% 0,2%
.Depreciation (1.319) (2.271) (3.153) (2.200) (2.448) (=) EBIT 9.149 19.182 25.374 13.975 (1.091) .Net Financial Result (847) (384) (14.933) (7.446) (9.189)
(=) EBT 8.302 18.798 10.441 6.529 (10.280) (‐) Non‐Operational Result (1.421) 435 (1.089) (311) (1.045) (‐) Income Tax & Social Contrib (3.623) (8.521) (5.228) (4.839) (2.096) Profit Distribution (701) (1.011) (542) 0 564 Extraordinary Result - 5.978 (=) Net Profit 2.557 9.701 3.581 1.380 (6.880) n.m.
∆%
IDEIASNET ‐ Proportional Portfolio
Ideiasnet
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Disclaimer
This presentation contains forward-looking statements. Such statements are not statements of historical fact, and reflect the beliefs and expectations of The Company's management. The words as "anticipates", “wishes”, “expects”, "estimates", “intends", "forecasts", "plans", "predicts", "projects", "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include, but are not limited to the impact of competitive products and pricing, market acceptance of products, product transitions by the Company and its competitors, regulatory approval, currency fluctuations, production and supply difficulties, changes in product sales mix, and other risks. This presentation also includes pro-forma information prepared by The Company for information and reference purposes only, and which has not been audited. Forward-looking statements speak only as of the date they are made and the Company does not undertake any obligation to update them in light of new information or future events. 22
For more information, contact the Investor Relations team:
Rodin SpielmannIR and
Business Development
André