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| 8-K - MDM WORLDWIDE SOLUTIONS 8K 5-5-2010 - Midas Medici Group Holdings, Inc. | form8k.htm |
Enabling the Energy Renaissance
“Get IT. Virtually Anywhere”
Midas Medici Group Holdings Inc.
May 2010
2
“Get IT. Virtually Anywhere”
The information contained in this presentation is for background purposes only and is subject to amendment, revision and
updating. Certain statements contained in this presentation may be statements of future expectations and other forward-
looking statements that are based on management's current views and assumptions and involve known and unknown risks
and uncertainties. In addition to statements which are forward-looking by reason of context, including without limitation,
statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth
opportunities, and risk adequate pricing, as well as the words "may, will, should, expects, plans, intends, anticipates,
believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions identify forward-looking
statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which
could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements.
These include, among other factors, changing business or other market conditions and the prospects for growth anticipated
by Midas Medici’s management. These and other factors could adversely affect the outcome and financial effects of the
plans and events described herein. Statements contained in this presentation regarding past trends or activities should not
be taken as a representation that such trends or activities will continue in the future.
updating. Certain statements contained in this presentation may be statements of future expectations and other forward-
looking statements that are based on management's current views and assumptions and involve known and unknown risks
and uncertainties. In addition to statements which are forward-looking by reason of context, including without limitation,
statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth
opportunities, and risk adequate pricing, as well as the words "may, will, should, expects, plans, intends, anticipates,
believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions identify forward-looking
statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which
could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements.
These include, among other factors, changing business or other market conditions and the prospects for growth anticipated
by Midas Medici’s management. These and other factors could adversely affect the outcome and financial effects of the
plans and events described herein. Statements contained in this presentation regarding past trends or activities should not
be taken as a representation that such trends or activities will continue in the future.
Midas Medici does not undertake any obligation to update or revise any statements contained in this presentation, whether
as a result of new information, future events or otherwise. In particular, you should not place undue reliance on forward-
looking statements, which speak only as of the date of this presentation.
as a result of new information, future events or otherwise. In particular, you should not place undue reliance on forward-
looking statements, which speak only as of the date of this presentation.
Disclaimer
3
“Get IT. Virtually Anywhere”
v Midas Medici Group Holdings, Inc. (OTCBB:MMED) was founded by veteran
utility and energy services / outsourcing investors and operators Nana Baffour
and Johnson Kachidza
utility and energy services / outsourcing investors and operators Nana Baffour
and Johnson Kachidza
v MMED seeks to capitalize on the opportunities at the intersection of the power
industry and information technology sector
industry and information technology sector
v MMED is a leading provider of consulting and market data to the utility
industry
industry
v Consonus Technologies, Inc. (“CTI”) is a leading provider of innovative energy
efficient data center solutions to the mid-market sector
efficient data center solutions to the mid-market sector
v In addition to its current offerings, the acquisition of CTI will enable MMED to
acquire and deploy emerging technology solutions to the Smart Grid sector
acquire and deploy emerging technology solutions to the Smart Grid sector
v The combination of CTI and MMED creates an organization with pro forma
revenues of approximately $90MM, total assets of approximately $100MM,
serving over 750 customers in 35 States and Europe
revenues of approximately $90MM, total assets of approximately $100MM,
serving over 750 customers in 35 States and Europe
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“Get IT. Virtually Anywhere”
|
Name
|
Position
|
Background
|
Education
|
|
Nana Baffour
|
Chief Executive Officer
|
Knox Lawrence International
Credit Suisse First Boston
Standard and Poor’s
|
BA Lawrence University
MS University of North Carolina - Charlotte
MBA New York University - Stern
|
|
Johnson
Kachidza
|
President & CFO
|
Knox Lawrence International
Merrill Lynch
JPMorgan Chase
General Electric
|
BA Knox College
MS University of Illinois at Urbana
MBA University of Chicago - Booth
|
|
Frank
Asante-Kissi
|
Chief Administrative Officer
|
Knox Lawrence International
Citigroup
CGI
Keane
|
BA Lawrence University
MBA Rensselaer Polytechnic Institute - Lally
|
|
Robert McCarthy
|
Co-President, Consonus
|
Ring 9
Computer Associates
AT&T
|
BS, MS, MBA Cornell University
|
|
John Roger
|
Co-President, Consonus
|
General Electric
|
BS Pennsylvania State University
|
|
David Steele
|
President, Utilipoint
|
Vertex
Citizens Gas
|
BS Indiana University
|
|
Robert Bellemare
|
COO and Managing Director, Utilipoint
|
American Electric Power
National Grid
|
BSEE Kettering University
MS Georgia Institute of Technology
|
|
Michael Bucheit
|
EVP, Corporate Development General
Manager, C-Labs, Consonus |
WR Hambrecht
General Electric
Citigroup
|
BA Webster University, Vienna
MBA Northwestern University - J.L. Kellogg
|
|
Daniel Milburn
|
SVP, Managed Services, Consonus
|
Norstan
Kraft
Syntellect
|
BS Arizona State University
|
Senior Management
5
“Get IT. Virtually Anywhere”
A Powerful Combination
• Superior global brand in the Clean
Energy / Smart Grid sector
Energy / Smart Grid sector
• Extensive Utility / Technology
relationships (500+ customers)
relationships (500+ customers)
• Highly regarded databases
• Smart Grid / Clean Energy market
opportunity
opportunity
• Diverse and global consulting business
• Public company
Opportunities
• Utilities a new vertical opportunity
for CTI
for CTI
• Energy efficiency / modeling
consulting opportunities
consulting opportunities
• Emerging utility software
applications deployed SaaS
applications deployed SaaS
• Ability to execute acquisitions
• Green Data Center credibility
• Co-Branding
• Potential global opportunities
• Physical Assets
• Scale of business (~ $90 MM revenues)
• Management talent
• Extensive sales force
• Technical / product development
capabilities
capabilities
• Hosting, Virtualization and Cloud
computing market opportunities
computing market opportunities
• Stable and growing EBITDA
190 Employees with offices in:
v Sherman Oaks, CA
v New York, NY
v Ft. Lauderdale, FL
v Sandestin, FL
v Brno, Czech
Republic
Republic
v Greenville, SC
v Nashville, TN
v Hartford, CT
v Rockville, MD
v Knoxville, FL
v Tucson, AZ
v Albuquerque, NM
v Dallas, TX
v Sugar Land, TX
v Indianapolis, IN
v West Lafayette, IN
v Salt Lake City, UT
v Atlanta, GA
v Birmingham, AL
v Cary, NC
v Charlotte, NC
A Unique Platform with Growth Potential
Data Center and
Clean Energy
Expertise
Clean Energy
Expertise
Capacity for
Growth
Growth
Cross-Sale
Opportunities
Opportunities
Niche Market
Leadership
Leadership
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“Get IT. Virtually Anywhere”
Comprehensive Data Center Services & Solutions
Data Centers
Managed Services
IT Infrastructure / IT Consulting
Utility Services
Innovation
v We serve over 750 customers, including over 120 in the Utility industry
Customer Optimized Today. Transformative for Tomorrow
Location Agnostic Delivery Model
10
“Get IT. Virtually Anywhere”
Consonus Solutions
*Secure Archiving For
the Enterprise
the Enterprise
Consonus
Data Centers
Data Centers
Consonus Managed Services
Collocation
Managed Solutions
Cloud Services
Cloud Services
Managed IT Ops
Consonus IT
Infrastructure
Services
Infrastructure
Services
Consonus
Consulting
Consulting
Consonus SAFE*
RBS
Managed Servers
MSER
Managed Storage
MSTO
Managed Network
MNET
Managed Security
MSEC
Managed Backup
MBU
Hosting
Bandwidth
Virtual Infrastructure
Services VIS
Services VIS
Data Archival
Servers &
Storage
Storage
Symantec
Sun/Oracle
NetApp
HP
Energy
Efficiency
Efficiency
Cloud Comp./
Virtualization
Disaster Recov.
& Bus. Continuity
& Bus. Continuity
Assessments
Storage
Data Protection &
Disaster Recov.
Disaster Recov.
ITIL
Virtualization
Consonus Technologies
Green Hosting
Energy Efficient
Infrastructure
Infrastructure
Support Services
Symantec
Sun/Oracle
NetApp
HP
Data Center Energy Efficiency Solutions
• Challenges
• Planning
• Capacity
• Power Costs
• Failures
• Energy Efficiency
• Solutions
• CI Assessment
• Compute
• Power
• Cooling
• Environmental
• Virtualization
• Consolidation
• Real-time
Monitoring
Monitoring
• Recommendations
• Troubleshooting
• Benefits
• Significant Energy
Savings
Savings
• Efficiency gains
• Improved Capacity
Utilization
Utilization
• Consolidation
• Benchmarking
• Implement best
practices
practices
• Challenges
• Failures
• Hot Spots
• Airflow
• Floor Design
• Cooling Efficiency
• Solutions
• CFD Analysis
• Airflow
• Temperature
• Humidity
• Hot/cold aisle
containment
containment
• Failure Identification
• Airflow Analysis
• Troubleshooting
• Recommendations
• Benefits
• Significant Energy
Savings
Savings
• Extend life of
Compute dev ices
Compute dev ices
• Benchmarking
• Challenges
• Utility Costs
• Energy Use Profile
• Solutions
• Utility Bill & Rate
Analysis
Analysis
• Incentives / Rebates
• Federal
• State
• Local
• Peak Shaving
• Demand Response
• Benefits
• Utility Bill Cost
reductions
reductions
• Rate reductions
• Take
• Challenges
• Site Selection
• Build out
• Retrofitting
• Planning
• Commissioning
• Facility Power &
Cooling
Cooling
• Solutions
• Site selection
analysis
analysis
• Design,
Development,
Construction, and
commissioning
Development,
Construction, and
commissioning
• Re-Architecture
• Facility Power &
Cooling Architecture
Analysis
Cooling Architecture
Analysis
• Green initiative
implementation
implementation
• Benefits
• Full life cycle
partnership
partnership
• Improved Power &
Cooling Architecture
Cooling Architecture
• Obtain Green
Initiative Goals
Initiative Goals
12
“Get IT. Virtually Anywhere”
Note: UtiliPoint customers include utilities, regulators, investors and vendors to utilities
13
“Get IT. Virtually Anywhere”
Case Study: Regional Health Care System
Client
Client Need
CTI’s Role
§ Two existing data
centers:
centers:
§ Heart Center
Building -
810sqft, 123
servers
Building -
810sqft, 123
servers
§ Cancer Center
building -
1270sqft, 104
servers
building -
1270sqft, 104
servers
§ Heart Center data
center is highest
quality, but lacks
physical capacity
center is highest
quality, but lacks
physical capacity
§ Cancer Center
data center has
remaining physical
capacity, but not a
quality data center
data center has
remaining physical
capacity, but not a
quality data center
§ Both data centers
lack power and
cooling
redundancy
lack power and
cooling
redundancy
§ Evaluate options to
relocate DC to meet
current and future
inform. mgm’t needs
relocate DC to meet
current and future
inform. mgm’t needs
§ Phase1: Baseline &
IS Assessment
IS Assessment
§ Phase2: Availability
& DR Assessment
& DR Assessment
§ Phase 3: Consolid. &
Virtualization Ass.
Virtualization Ass.
§ Phase 4: DC/ Phys.
Location Ass.
Location Ass.
§ Phase 5: DC Design
§ Phase 6: DC Build
§ Phase 7: DC
Migration/Relocation
Migration/Relocation
CTI Revenue
Opportunity
Opportunity
§ 4-phase
Consulting :
Consulting :
$170-180K
§ Data Center
Hosting &
Virtualization:
Hosting &
Virtualization:
est. $1-2MM p.a.
§ Data Center HW,
SW and Managed
Services:
SW and Managed
Services:
est. $1-2MM
Regional Health
Care System
Care System
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“Get IT. Virtually Anywhere”
v Highly energy-intensive and rapidly growing
v Consume 10 to 100 times more energy per square foot than a typical office building
v Large potential impact on electricity supply and distribution
v Used about 45 billion kWh in 2005
v At current rates, power requirements could double in 5 years.
Source: Creating Energy-Efficient Data Centers, DOE, 2007
v Save 20 billion kWh per year by 2015
v Worth $2 billion, ≈ annual electricity use in 1.8 million
American homes
American homes
v Potentially defer need to build 2,300 MW of new
generating capacity
generating capacity
v And avoid 3.4 million metric tons of carbon emissions
(like taking 675,000 cars off the road)
(like taking 675,000 cars off the road)
v Extend life and capacity of existing data center
infrastructures
infrastructures
Potential Benefits of Improved Data Center Energy Efficiency
Data Center Energy Usage
v Data Center emissions will quadruple by 2010 (100 Mt CO2 in
2007, to 350 Mt CO2 in 2020) causing scrutiny from
regulators, customers, board of directors and other stake
holders
2007, to 350 Mt CO2 in 2020) causing scrutiny from
regulators, customers, board of directors and other stake
holders
Industry Dynamics
15
“Get IT. Virtually Anywhere”
Source: DOE
Source: Tier 1 Research
Source: Tier 1 Research
Source: Band of America
|
2009 Market Snapshot
|
||
|
|
Revenue
|
CAGR
|
|
On Premise:
|
$89 Billion
|
5%
|
|
OnDemand/ Cloud Comp.
|
$9 Billion
|
19%
|
Industry Dynamics
16
“Get IT. Virtually Anywhere”
v Comprehensive, yet cost effective solution
not available
not available
v Supply shortage
v IT not core competency
v Lack of technical expertise
v Capex constraints
Concerns for growing SMB market:
Sources: McKinsey, BofA 2009
(1) Source: Tier 1 research
U.S. Managed Services Revenue (1)
v Increased complexity of data center,
security and storage markets
security and storage markets
v Continued movement of business onto
the Internet
the Internet
v Increased broadband use
v Regulatory compliance
v Need for real-time back-up and
recovery
recovery
Data Center Outsourcing Drivers
Industry Dynamics
17
“Get IT. Virtually Anywhere”
Data center emissions will quadruple by 2020, causing increased scrutiny from regulators, customers,
boards and other stakeholders
boards and other stakeholders
Source: Revolutionizing Data Center Efficiency, McKinsey and Company, 2008
11%
CAGR
CAGR
Emissions from Data Centers worldwide
(Mt CO2)
U.S. data center energy use could double to more
than 120 billion kWh from 2006 to 2011, equal to
annual electricity costs of $7.4 billion
than 120 billion kWh from 2006 to 2011, equal to
annual electricity costs of $7.4 billion
Source: Creating Energy-Efficient Data Centers, DOE, 2007
Industry Dynamics
19
“Get IT. Virtually Anywhere”
Change in Revenue Mix to Higher Gross Margin Offerings
2009
2008
2007
Gross Margin (%)
Source: MMED S-4 dated May 3, 2010 and Management
20
“Get IT. Virtually Anywhere”
Gross and EBITDA Margin Expansion
Source: MMED S-4 dated May 3, 2010 and Management
(1) Adjusted EBITDA as operating income (loss) before interest, taxes, depreciation and amortization expenses, excluding non-cash stock-based compensation expense, non-cash gains or losses
related to the fair value of derivative liabilities, acquisition related adjustment to deferred revenue, write-off of public offering costs, non-recurring merger costs and severance and
separation settlement expense.
related to the fair value of derivative liabilities, acquisition related adjustment to deferred revenue, write-off of public offering costs, non-recurring merger costs and severance and
separation settlement expense.
21
“Get IT. Virtually Anywhere”
Short-, Medium- and Long-term Operating Model Aspirations
|
|
|
|
|
Statistic
|
2010 Management Estimate (1)
|
Three to Five Year Operating Aspirations (2)
|
|
|
|
|
|
Total Revenue
|
10% to 15% 2009-2010 Revenue Growth
|
Year on Year Revenue Growth - 15% to 20%
|
|
Gross Margin
|
34% - 36%
|
35% - 40%
|
|
Adj. EBITDA Margin (3)
|
7.5% - 10%
|
12% - 17%
|
|
|
|
Operating and Leverage Statistics
|
|
|
|
Maintenance CapEx to Revenue - 1% - 3%
|
|
|
|
EBITDA to Debt Multiple - 2.5x - 3.5x
|
|
|
|
Free Cashflow to Revenue - 3% - 10%
|
(1) Source: MMED management
(2) Source: MMED S-4 dated May 3, 2010; Management defines medium to long-term horizon as 36 to 60 months.
(3) Adjusted EBITDA as operating income (loss) before interest, taxes, depreciation and amortization expenses, excluding non-cash stock-based compensation expense, non-cash gains or losses
related to the fair value of derivative liabilities, acquisition related adjustment to deferred revenue, write-off of public offering costs, non-recurring merger costs and severance and
separation settlement expense.
related to the fair value of derivative liabilities, acquisition related adjustment to deferred revenue, write-off of public offering costs, non-recurring merger costs and severance and
separation settlement expense.
22
“Get IT. Virtually Anywhere”
Pro Forma Balance Sheet Data ($ in thousands)
Source: MMED S-4 dated May 3, 2010 and Management
23
“Get IT. Virtually Anywhere”
Pro Forma Capitalization
Note: Management, directors and other shareholders subject to a 6 month lockup.
Options exercisable at average strike price of $6.52 per share.
Source: MMED S-4 dated May 3, 2010 and Management
24
“Get IT. Virtually Anywhere”
A Unique Platform with Growth Potential
Data Center and
Clean Energy
Expertise
Clean Energy
Expertise
v A leading provider of innovative energy efficient data center solutions to the mid-market
sector and utility industry
Capacity for
Growth
Growth
v Incremental capacity in constrained markets and national footprint through partner data
centers
centers
Cross-Sale
Opportunities
Opportunities
v Leverage data center assets for specific “smart grid” and “smart metering” applications
with access to more than 120 utility customers for existing Consonus products
with access to more than 120 utility customers for existing Consonus products
Niche Market
Leadership
Leadership
v Fills the gap in emerging and underserved markets (Tier II/III markets + utility clean
energy consulting) focused on the mid-market sector and select enterprises
energy consulting) focused on the mid-market sector and select enterprises