Transcript Slide 1

FBR Technology & Growth Conference
June 2, 2005
Safe Harbor


This presentation contains “forward-looking” statements, including statements about business
outlook and strategy, and statements about historical results that may suggest trends for our
business. These statements are based on estimates and information available to us at the time of
this presentation and are not guarantees of future performance. Actual results could differ
materially from our current expectations as a result of many factors, including: unpredictable
quarterly fluctuations in our business; the effects of competition or consumer and merchant use of
our service; any adverse changes in our agreements with our listings providers; the impact of
international expansion efforts on our business; and changes in our tax status. These and other
risks and uncertainties associated with our business are described in the prospectus for our IPO
This presentation includes non-GAAP financial measures, that are different from financial
measures calculated in accordance with GAAP and may be different from non-GAAP calculations
made by other companies. A quantitative reconciliation of non-GAAP information to the most
directly comparable GAAP financial measures is available on our website.
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Syniverse at a Glance
Syniverse simplifies wireless technology complexities by
integrating disparate wireless carriers’ systems and networks in
order to provide seamless global voice and data
communications to wireless subscribers.
 18 Years of Operations
 $316.0 LTM Net Revenue1
 Over 300 Customers, 40
 44% EBITDA Margin2
countries
 30 Services
 14% Adjusted Net Income
Margin3
1
Based on LTM Net Revenue as of 3/31/05 and excludes off-network database fees of $19.2 million.
Based on LTM Net Revenues as of 3/31/05 and includes one-time adjustments
3 Based on LTM ending 3/31/05 and includes add-backs
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Transaction-Based Revenue Model
Wireless Subscriber Events
Turn on phone
Caller ID data displayed
Roam on another carrier’s network
Send SMS message to subscriber on other carrier
“A Value-Added Toll
Booth on the Wireless
Highway”
Maintain phone number when switching carriers
Wi-Fi subscriber roams onto another network
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Investment Highlights
 Leading provider of mission-critical, transaction-based technology
services
 Extensive and collaborative customer relationships
 Well positioned for growth in existing and new markets
 Proven management team
 Superior operating model delivering strong financial results
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A Complex Set of Relationships… A Complex
Industry…A Simple Solution
Network Services
1. Allow Verizon subscriber to roam on
ALLTEL’s network
Technology
Interoperability
2. Allow Verizon and ALLTEL to
exchange billing records for
subscriber roaming
Technology
Interoperability
3. Allow subscribers to exchange SMS
messages between carrier networks
Number
Portability
4. Allow subscribers to keep their cell
phone number when switching
carriers
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Industry Complexity Fuels Demand for Our Services
Diverse Signaling
Standards
(CDMA, TDMA, GSM,
iDEN, Wi-Fi)
Disparate Network
Architecture
(Lucent, Nortel,
Ericsson, Motorola)
Multiple Network
Protocols
(X.25, Frame Relay,
SS7, Internet Protocol)
Distinct Billing
Record Formats
(CIBER, TAP, RADIUS)
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Compelling Industry Growth Dynamics
Global Wireless Subscribers (bn)
13% CAGR
2.0
1.2
2003
16% CAGR
10.6
5.8
2007E
Global Wi-Fi Hotspots (000)
48% CAGR
Global Roaming Call Volume (bn)
213.2
2003
2007E
Global SMS Text Messages (bn)
15% CAGR
1,068.5
604.1
44.6
2003
2007E
2003
2007E
Source: IDC and Strategy Analytics
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Broad Suite of Services
Service Line
Carrier Issue
Technology
Interoperability
Exchange billing data among
hundreds of roaming partners
Syniverse Solution
Clearinghouse services
Network
Managing numerous networks
and databases adds complexity
SS7 network and database
access
Number
Portability
FCC mandate drives increased
operational complexity
Centralized carrier data
exchange
Other
Different protocols inhibit voice
and data roaming
Translation and routing
services
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Technology Interoperability Services
30%
Services
 Largest wireless clearinghouse in North America
 Translate different protocols to support voice, data and Wi-Fi roaming
 Route SMS messages between domestic and international carriers
Major Customers
 Verizon Wireless, T-Mobile, Sprint, ALLTEL, Dobson
 SFR, SK Telecom, KDDI, China Unicom, Vivo, RadioMovil
Revenue
 Transaction-based (roaming calls cleared, SMS messages sent)
 1Q05 revenue $23.2mm
Growth
 Wireless subscriber and roaming volume
 Wi-Fi expansion and subscriber growth
 Mobile data services and SMS volume growth
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Network Services
Services
 Operate leading independent SS7 network
 Provide translation and routing services that enable wireless calls
 Provide access to databases (Caller ID, LNP, 800 Service)
Major Customers
 Cingular, Verizon Wireless, T-Mobile, ALLTEL, Dobson
 BT Ignite, France Telecom, Belgacom, China Mobile, RadioMovil
Revenue
 Transaction-based (calls made) and fixed-fee (circuits, ports)
 1Q05 revenue $32.2mm
Growth
 Wireless subscriber and roaming volume growth
 Mobile data services and SMS volume growth
 VOIP adoption and new database services
42%
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Number Portability Services
15%
Services
Major Customers
 Process over 90% of the industry’s number porting transactions
 Provide data exchange between carriers
 Mitigate operational impact (billing, customer care, switching, etc.)
 Verizon Wireless, Cingular, Nextel, T-Mobile, Sprint, ALLTEL
Revenue
 Transaction-based (customers retaining number when changing carriers)
 1Q05 revenue $11.7mm
Growth
 Wireless porting growth
 Wireless subscriber growth
 Industry churn rates
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Enterprise 4%
Other Services
Call Processing 8%
Call Processing
 International signaling
Services
Major Customers
solutions
 Fraud detection
 SK Telecom, China Unicom,
KDDI, ALLTEL, Verizon Wireless
Enterprise Solutions
 Corporate invoice
consolidation, reporting and
analytical tools
 Verizon Wireless, ALLTEL,
U.S. Cellular
Revenue
 Transaction-based (roaming calls)
 1Q05 revenue $6.4mm
 Subscriber-based (subscribers)
 1Q05 revenue $3.1mm
 National account program
Growth
 International subscriber growth
 Roaming call volume growth
 Fraud
growth
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Defensible Leadership Position
Competitive Landscape
Third Party
Service Provider
Technology
Interoperability
Network
Services
WLNP
Services
Call
Processing
Syniverse




VeriSign




NeuStar
MACH

Substantial Barriers to Entry
 High business switching / disruption


risk for customers
Strong customer relationships with
long-term contracts
Long history of trust with
confidential subscriber and financial
data
 Highly integrated and broad service


offering difficult to replicate
Sizeable fixed operating cost base
required
Flexible pricing options due to
bundled service offering
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Decreasing Revenue Concentration
Revenue Concentration1
Carrier Customers
2001
1Q05
Change
Top 1
29%
13%
(16%)
2 thru 5
25%
25%
-
6 thru 10
10%
14%
4%
All other
36%
48%
12%
Total
100%
100%
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1
Percentages based on Net Revenues
Consolidation Provides Incremental Opportunities
 We provide both carriers with WLNP services
Sprint / Nextel
 Opportunity to capture Nextel clearing and network business
 Migration to CDMA may result in additional opportunities
 Opportunity to capture Cingular GSM signaling
Cingular / AT&T Wireless
 Opportunity to capture combined clearing
 Opportunity to capture AT&T WLNP
 Alltel is major customer utilizing most of our services
Alltel / Western Wireless
 Opportunity to capture Western WLNP and network
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Growth Organically and Through Acquisition
Strategy
 Further penetrate existing base of
Organic Growth


over 300 customers in 40 countries
Identify and win new international
customers
Expand services and enter new
sectors
Opportunity/ History
 International
 Wi-Fi
 Messaging &


Mobile Data
MVNO
VoIP
 Extend range and scope of services
Acquisition
Criterion




offered
Expand and leverage customer base
Increase profitability and improve
strategic positioning
Enter new markets
Increase scale of business
 EDS IOS N.A.
 Softwright
 Brience
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Experienced Management Team
Our team has an average of 19 years relevant industry experience
Name
Role
Previous Experience
Edward Evans
CEO
Dobson, Bellsouth, U.S. Cellular, GTE
Raymond Lawless
CFO
Intermedia Communications, Bell Atlantic
Paul Wilcock
CTO
Verizon
Robert Garcia
General Counsel
Verizon
Paul Corrao
VP, Network Operations
Intermedia Communications, AT&T, Bell Atlantic
Charles Drexler
VP, Sales
Metro PCS, Lucent
Linda Hermansen
VP, Business Development &
Strategy
Verizon
Gil Mosher
VP, Operations
Verizon
Michael O’Brien
VP, Marketing
GE, Verizon
Eugene Bergen
Henegouwen
Managing Director, Europe
Intervention Machine, AVIO Digital
Dennis Ng
Managing Director, Asia Pacific
Progress Software, Sam-Negma, AT&T
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Superior Operating Model
Scalable
Economics
High Visibility
80% Transaction
Based Recurring
Revenues
98% Recurring
Revenues
Low Capital
Intensity
4.8% Capex /
Revenue1
Scalability and Leverage:
Distinct Investment Value
High Margins
61.4% Gross Margin1
Low Sales &
Marketing
43.2% EBITDA
Margin1
20.7% SG&A /
Revenue1
Suite of Services
Proven ability to
extend platform to
new services
1
Based on Net Revenue for 1Q05, and excludes Headquarters move related capital.
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Net Revenue Growth in Recurring Business Lines
($ in millions)
$309
$292
NonRecurring
Business
Lines
Recurring
Business
Lines
$23
$267
$242
$112
$180
$65
$202
$31
$211
$286
$76
$3
$73
2001
2002
2003
2004
1Q05
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Diversified Product Offering Drives Solid Growth
($ in millions)
Net Revenue
1Q04
1Q05
Enterprise
$3.1
4%
Enterprise
$3.7
5%
WLNP
$11.1
16%
WLNP
$11.7
15%
Network
$32.2
42%
Network
$29.8
44%
Technology
Interoperability
$15.3
22%
Technology
Interoperability
$23.2
30%
Call Processing
$9.3
13%
$69.3 million
Call Processing
$6.4
8%
$76.6 million
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Accelerating Profitability Momentum
($ in millions)
Quarterly year over year growth comparison
2003
2004
2005
$37.7
$34.9
$33.1
$33.9
$29.2
$27.4
$26.6
$24.7
$23.9
$10.8
$13.1
$12.1
$11.3
$11.7
$9.6
$9.1
$7.4
$7.0
$5.3
$5.3
$14.4
$13.4
$4.3
$7.4
$6.4
$3.6
$1.5
Q1
Q2
Q3
Adj. EBITDA
4Q
Q1
Q2
Q3
Adj. Net Income
4Q
Q1
Q2
Q3
4Q
Cash Net Income
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Cash Net Income Adjustments
Long-term Benefits – driven by prior acquisitions
 GAAP Acquisition-Related Amortization
– Approximately $24 million annual acquisition related tangible and
intangible asset amortization
 Tax Deductible Amortization of Goodwill
– Approximately $24 million in additional annual deductions
– Not amortized for GAAP purposes, only affects cash flow
– Duration of approximately 14 years
Near-term Benefits – NOLs as of 12/31/04 totaling approximately
$80 million
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Strong Capital Structure
($ in millions)
Senior Subordinated Notes, net of discount
Credit Facility, net of discount
Total Debt
Class A Cumulative Redeemable Preferred Stock
As of
12/31/04
As of
3/31/05
$241.8
215.6
$457.4
$157.3
239.4
$396.7
335.6
-
Common Stock
37.1
Accumulated Deficit & other comprehensible income (143.9)
457.3
(161.0)
Total Owners Equity
$296.4
$(106.9)
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Investment Highlights
 Leading provider of mission-critical, transaction-based technology
services
 Extensive and collaborative customer relationships
 Well positioned for growth in existing and new markets
 Proven management team
 Superior operating model delivering strong financial results
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