cellpoint connect ab (publ) investor briefing stockholm september 7, 2005 michael mathiesen, ceo -...

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CellPoint Connect AB (publ) Investor Briefing Stockholm September 7, 2005 Michael Mathiesen, CEO - Lars Ridderström, CFO

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CellPoint Connect AB (publ)

Investor Briefing

Stockholm

September 7, 2005

Michael Mathiesen, CEO - Lars Ridderström, CFO

Safe harbor statement

• The guidance for 2005 reflects management's current expectations for certain future events and financial results. Expectations regarding 2005 are, of course, subject to risks and uncertainties which may result in material deviations from the outlook set forth below. Furthermore, some of these expectations are based on assumptions regarding future events which may prove incorrect.

Factors that may cause actual results to deviate materially from expectations include, but are not limited to, general economic developments and developments in the financial markets, technological developments, changes and amendments to legislation and regulations governing the Company's markets, changes in the demand for the Company's products, competition, fluctuations in sub-contractor supplies, and the integration of company acquisitions.

Who is CellPoint?

Our Vision

• Create tools to deliver relevant information at the right time and at the right place!

Strategy

Market / needs:

Distribution Partners / services:

Products / solutions:

Technology / know-how:

Global technology, local commitment!

• To develop and profit from our strong partnerships, we will show commitment and understanding of the market situation in each local region!

– US (- acquire Orion) – Asia Pacific (- establish CellPoint Connect China) – UK (- set up a special task force)

ORION

• CellPoint acquires market position in North America!     – CellPoint Connect AB (publ) has entered into a conditional

agreement to acquire Orion Information Services, Inc., a US-based company headquartered in Miami, Florida.

The acquisition price is set at 12 million SEK and will be paid in the form of 726,000 newly issued CellPoint shares. The transaction is pursuant to shareholder approval and a shareholder’s meeting is expected to take place by the end of the month.

The Orion acquisition gives CellPoint instant entry into the North American market, enabling CellPoint to more quickly capitalize on the high growth market opportunity North America offers for wireless services and products than it would be able to through organic growth. 

Finance

(Figures in TSEK) Q2/2005 2004 Q2/2004 2003

Profit and loss accountNet turnover 5.809 6.472 4.079 526Result from primary operations -14.631 -23.541 -10.555 -6.780Result after financial items -15.392 -24.182 -10.597 -6.770Result per share -7.76 SEK -9.16 SEK -7.76 SEK -5.44 SEK

Balance sheetBalance sheet total 30.978 34.319 17.489 13.552Adjustment of equity capital 11.298 24.792 13.493 9.590

Key figuresContribution margin ratio -262% -364% -259 -1.289%Return on equity capital -85% -135% -92% -140%Solvency ratio 36% 72% 77% 71%

Orders on hand as of September 1, 2005: More than 50,000 Flamingo headsets, eq. to 18 MSEK revenue

FLAMINGO

• Need for hands free service: – Ex. when you drive, work, relax, Smartphones

(can use display and keyboard) and Softphones/VoIP (Skype)  

• Market for Bluetooth headset:– Estimated sale 35-50 million units in 2005– Estimated growth in 2006 / 07 is 30% - 40%– VoIP (Softphones) and Smartphones may grow at a

faster rate – Headsets will become lifestyle products – Prohibition against use of mobilephones while driving

FLAMINGO

• Solution:

FLAMINGO

• Distribution / partners / references:  – Dangaard Telecom (EU), Bluelogic Enterprise (Malaysia),

Bluenext Technology Pte Ltd. (Singapore), Bluenext Technology (Japan), BrightStar (US), Newtele Group Ltd. (CDN), CellPoint Connect China Ltd (China) 

– More to come SOON!  

• Experience with sale of Flamingo:– 30% women – 35% second generation headset users  

• Goals for Flamingo over the next 12 months – Global distribution – Brand building (-my Flamingo!) – Launch a new, special headset application

112NOW Photoalarm

• Problem: – Today more than 90% of burglar alarms from private

homes are false alarms!  

• Marked for "next generation" burglar alarms: – More than 50 million units over the coming 5 years!

112NOW Photoalarm

• Solution: VERIFICATION (- photo and sound!)

112NOW Photoalarm

• Distribution / partners / references: – Securitas Larmcentral AB (Sverige) – Jysk Kontrolcentral A/S (Denmark)  

• Goals for 112NOW:– More partners in Europe in 2005– Introduction into China and the US in 2006

Mobile Applications

• Need:– Information readily available when it’s needed!– Instant gratification for  consumers interacting with brands and

services– “Always-on” society

• Data displayed on a mobile will be routine:– £ 40 Bn in 2005 will be £ 69 Bn in 2010 – CRM for mobile communication will be as natural as it is in IT– Mobile Value Added Marketing will be a primary driving force for

brands in their continued efforts to maintain consumer loyalty– L. John Doerr, the Kleiner Perkins Caufield & Byers venture capitalist who

founded companies such as Amazon, Netscape and AtHome, said that “This boom will be ultimately more important and will likely offer a larger wave of investment opportunity than the personal computer.”

Mobile Application’s

• Solution:

Mobile Applications

• Distribution / partners / references: – LEVIS– BRIGHTSTAR– DISHTV / ECHOSTAR– UNITED AIRLINES– CLEAR CHANNEL

• Goals for Mobile Applications: – Primary supplier of Mobile Value Added Marketing Services in the

Americas in 2006– Establish key accounts in 4 verticals in EU and the Americas

(North & Latin America)– 2 major sales of Direct in the Americas in 2005

Objectives for 2005-2007

• Annual sales of more than 1 million headsets. Current prices and margins are projected to deliver revenue of $55 million US and a gross margin of $18 million US - for a 1% to 5% marketshare

• Annual sales of more than 20,000 Photoalarms - With the current model this will deliver annual growth margin of $3 million US with more than 60% recurring revenue

• Mobile Applications More than 500 large accounts worldwide with a total revenue $40 million US and a gross margin of 45%

• To secure a highly liquid stock through increased revenue and earnings and professional IR function

Contact Info

• Sign up for our Investor alert service www.cellpoint.com/investor.asp

• Or contact  – Michael Mathiesen, CEO CellPoint Connect AB (publ),

[email protected]+45 40 45 33 32 or +1 925 922 7474 

– Kristian Gjerding, CEO CellPoint Connect [email protected]+45 20 10 17 15 or +1 305 206 2336 

– Lars Erik [email protected]+46 (0) 7 68 19 92 24