Stream Global Services, Inc. - FORM 8-K - EX-99.1 - STREAM GLOBAL SERVICES BUSINESS PRESENTATION

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8-K - FORM 8-K - Stream Global Services, Inc.	d8k.htm

Exhibit 99.1

Stream Global Services

Business Presentation

Bank of America Merrill Lynch

2010 Services Conference

MAY 2010

Safe Harbor/Forward Looking Statements

This presentation contains forward-looking statements that involve substantial risks and uncertainties. Any statements about

our expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be

forward-looking.

These

statements

are

often,

but

not

always,

made

through

the

use

words

phrases

such

“anticipate,”

“estimate,”

“plan,”

“project,”

“continuing,”

“ongoing,”

“expect,”

“will,”

“could,”

“may,”

“management believes,”

“we believe,”

“we

intend”

and similar words or phrases. Accordingly, these statements involve estimates, assumptions and uncertainties, which

could cause actual results to differ materially from those expressed in them. Any forward-looking statements are qualified in

their entirety by reference to the factors discussed throughout this presentation and incorporated by reference in this

presentation.

Because

the

actual

results

outcomes

can

differ

materially

from

those

expressed

any

forward-looking

statements

made

our

behalf,

you

should

not

place

undue

reliance

any

forward-looking

statements.

Further,

any forward-looking

statement

speaks

only

the

date

which

made.

New

factors

emerge

from

time

time,

and

it is

not possible for us to predict which factors will arise. In addition, we cannot assess the impact of each factor on our business

or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained

in any forward-looking statements. A number of important factors could cause actual results or events to differ materially from

those indicated by such forward-looking statements, including the risk factors described in our latest filings with the Securities

and Exchange Commission, including our periodic report on Form 10-Q and Annual Report on Form 10-K. We assume no

obligation to update the information in this communication, except as otherwise required by law. You are cautioned not to

place undue reliance on these forward-looking statements that speak only as of the date hereof.

Stream Overview

•

15+ years of experience in BPO outsourcing services –

•

Full service CRM and BPO company

•

Experienced team of industry veterans

•

Top tier client satisfaction ratings

•

Approximately $800 million in TTM pro forma revenues

•

Solid operating margins

•

Solid balance sheet and capital base

•

Well funded sponsorship from Ares, Ayala, and

Providence Equity: $65 billion under management

•

Fortune 1000 global client base

•

30,000 employees in 22 countries across 50 solution

centers covering 35 languages

•

Integrated technology platform

Global Scale

Financial

Stability

Trusted

Service

Provider

Our Vision:

Build a Fully Integrated BPO Company

Credit and collections

Billing services

Data analytics

Reporting services

Back office services

Finance

Accounting

Lead generation

Web portal mgmt

Up-selling services

Customer retention

Inbound sales

Sales

Marketing

CRM

Services

Customer care

Warranty services

Technical support

Customer retention

Revenue generation

Lead generation

Data

Management

EMR database

Hosting services

Application management

Digital document

management

Transcription and

interpretation

IVR technology

Hosting

Information

Language Services

BPO Service Cycle

Integrated BPO Model Servicing Fortune 1000 clients both on-shore and off-shore using state-of-the-art technology

World class clients in technology, software, telecommunications,

healthcare, government and education sectors

Global service location footprint –

North America, Europe, India, China, the Philippines, Latin America and South America

Common Technology Infrastructure with Specific Software Applications

Why Stream…

Stream achieves

“Trusted Advisor”

status by:

Enhancing Business

Performance

Creating Revenue

Generation and Value

Increasing Overall

Brand and Customer Loyalty

4. Providing economic

efficiencies

Driving Customer Value

Business

Performance

Revenue

Generation

Brand Loyalty

53,880

$54,440

$54,566

$57,290

$60,985

$65,035

2008

2009

2010

2011E

2012E

2013E

Industry Growth Drivers

CRM industry continues to grow

Asia and Latin America lead the way

Outsourcing allows clients to turn fixed

costs into variable costs

Increased demand for offshore delivery

as cost reduction measure

Growth Drivers:

Vendor consolidation

Increasing propensity to outsource

Migration

clients’

internal

operations

to outsourcers

Global reach

Leverage of technology investments

Source:

IDC

Customer

Care

BPO

Report

2009

–

2013

Forecast

223281

Worldwide

CRM

Revenues

2008

–

2013

mm)

Migration of CRM Industry

Based on location of contact center

Source

Baird Estimates

Stream’s Executive Team

Scott Murray

Chairman

Chief Executive Officer

Dennis Lacey

EVP &

Chief Financial Officer

Bob Dechant

EVP

Sales & Marketing

Robert Lyons

EVP, Chief Technology &

Information Officer

Sheila M. Flaherty

EVP &

Chief Legal Officer

Jeff Bishop

EVP

Operations Americas

Harry Jackson

EVP

Operations EMEA

Andrew Suchoff

EVP

Global Human Resources

Stream Service

Model

•

Product Inquiry

•

Billing Inquiry

•

Warranty Services

•

Payment & Refunds

•

Claims Processing

•

Returns/Refunds

•

Password Resets

•

Save Programs

•

Loyalty Programs

•

Retention Services

•

Upsell/Cross-Sell

•

Inbound (B2C, B2B)

•

Outbound (B2C, B2B)

•

Lead Generation

•

Subscription Services

•

Fee-Based Support

•

Mutual Fund Transactions

•

Level 1 & 2 Technical

Support

•

Dispatch and Escalation

Management

•

Software Upgrades

•

Warranty Entitlement

Revenue

Generation

Customer

Service

Technical

Support

Customer

Retention

Stream’s Diversified Sector

and Client Portfolio

Diverse Long-term Client

Relationships

Industries Served in 2010E Revenue

Technology

23%

40%

37%

Strong Global Presence –

50 Solution Centers

China

Brazil

Sao Paulo, BRA

Tokyo, JPN

Japan

Shanghai, CHN

WW HEADQUARTERS

BOSTON, MA, USA

EMEA HEADQUARTERS

AMSTERDAM, NLD

APAC HEADQUARTERS

QUEZON CITY, PHL

Existing Footprint

Near Term Expansion

Rationale of eTelecare

Combination

Stream

and

eTelecare

have

combined

stock-for-stock

merger resulting in 57.5 and 42.5 percent split of stock

ownership

Combination brought together experienced management team

with proven industry track record

Complementary

companies

–

culturally,

organizationally

and

geographically (minimal site and client overlap)

Broadened vertical market expertise and service offerings

Broad geographic footprint with over 30,000 employees

worldwide and more than 10,000 in the Philippines.

Ability to leverage best-of-breed technology and global

standardized operating processes

Strong financial sponsorship from Ares Management,

Providence

Equity

and

Ayala

Corporation

$65

billion

plus

under management

Stream’s Financial Summary

$484

$21

$523

$32

$797

$73

33%

37%

43%

$20

*This non-GAAP financial measure should be considered in addition to, not as a substitute for, measures of Stream’s

financial performance prepared in accordance with GAAP. See our press release filed on Form 8-K February 26, 2010

for reconciliations of these non-GAAP numbers to GAAP.

Stream’s Capitalization

Debt

Senior Secured Notes

$200mm @11.25%

Revolving Credit Facility

$100mm

Common Stock Outstanding

80.5mm shares

Warrants Outstanding

7.5mm warrants

As of March 31, 2010:

Cash

$22mm

Shareholder’s Equity

$294mm

Sponsors:

Ares Management

46% pro forma ownership

Ayala

26% pro forma ownership

Providence Equity Partners

17% pro forma ownership

Q1 Milestones and Accomplishments

New

additions

the

Management

Team

CFO

Q1 Revenues of $196.6 mm and Gross Profit of

43% -

Adjusted EBITDA of $17 mm

Secured

Several

New

Clients

$135mm

annual

Substantially Completed Integration with

eTelecare

Expect Annualized Cost Savings and Synergies

of Approximately $27 Million Annualized

Stream’s Growth Plans

Near Term Strategic

Initiatives

Eastern Europe (Turkey)

Argentina

Japan

Brazil

China

Egypt

Philippines

Geographies

Value Creation Attributes & Fundamentals

SGS has………..

One of the leading BPO and CRM providers in the world

Experienced management team with proven track

record

Broad service offerings to include a full portfolio of CRM

services

Diversified Fortune 1000 client base across multiple

vertical markets

Strong

and

diverse

global

platform

30,000

employees

in 50 sites in 22 countries

Solid financial position and opportunity for growth

Technology focused service offerings

A Market that will consolidate and provide great

investment opportunities in the near future

Well

known

financial

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