EX-99.1 2 tmng-ex991.htm EXHIBIT 99.1 - INVESTOR RELATIONS PRESENTATION DATED MARCH 2014 tmng-ex991.htm
www.cartesian.com
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or means (electronic,
mechanical, photocopy, recording or otherwise) without the permission of The Management Network Group.
Investor Relations Presentation
Presented by: Donald Klumb
March 2014
 
 

 
2
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
 Cautionary Statement as to Forward-looking Statements
  
 This presentation contains forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995. In particular, any statements that do not relate to historical or current facts
 constitute forward-looking statements, including any statements contained herein or therein that concern
 the Company or its management's intentions, expectations, or predictions of future performance. Forward-
 looking statements are subject to known and unknown risks, uncertainties, and contingencies, many of
 which are beyond the Company’s control, which may cause actual results, performance, or achievements to
 differ materially from those projected or implied in such forward-looking statements. Factors that might
 affect actual results, performance, or achievements include, among other things, the Company's ability to
 successfully complete and implement the proposed strategic relationship with Elutions, Inc.; the Company's
 ability to close the transactions contemplated by the Investment Agreement with Elutions, Inc.; the
 conditions in the telecommunications industry, overall economic and business conditions, the demand for
 the Company’s services (including the slowing of client decisions on proposals and project opportunities
 along with scope reduction of existing projects), the level of cash and non-cash expenditures incurred by
 the Company, technological advances and competitive factors in the markets in which the Company
 competes, and the factors described in this presentation and in the Company's filings with the Securities
 and Exchange Commission ("SEC"), including the risks described in its periodic reports filed with the SEC,
 including, but not limited to, “Cautionary Statement Regarding Forward Looking Information” under Part I of
 its Annual Report on Form 10-K for the fiscal year ended December 29, 2012 and subsequent periodic
 reports containing updated disclosures of such risks. These filings are available at the SEC’s web site at
 
www.sec.gov. Any forward-looking statements made in this presentation speak only as of the date of this
 presentation. The Company does not intend to update these forward-looking statements and undertakes no
 duty to any person to provide any such update under any circumstances.
  
 
 

 
3
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Executive Summary
Summary
  Re-launching our Ascertain analytics platform, as a SaaS model which manages massive, complex,
 and critical data for Tier 1 operators
  Industry know-how, and a track record of solving operational and business problems in TMT
  Ongoing commitment and focus through reorganization on optimizing our core business
  By leveraging our deep business and operational knowledge in TMT, we will jointly market
 and deliver Elutions’ unique solutions to our customers
2
3
4
5
6
1
 
 

 
4
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
’91
’92
’93
’94
’95
’98
’99
’01
’02
’03
’05
’08
’09
’12
’13
’90
’14
For over 20 years, TMNG delivered deep subject matter expertise with a services focus
to clients in the TMT sector
Our History
We are here today to (re)introduce our company
and our plans for creating value for investors
1990
TMNG founded
Jan. 1999
IPO on NASDAQ
($78.5M)
Mar. 2002
Jan. 2007
Jan. 2012
Jan./Feb. 2014
Cartesian re-brand,
re-org, Elutions
partnership
Corporate Milestones
  Largely independent business units, assembled through acquisition
  Multiple customer-facing brands
  Deep subject matter expertise
  Strong client relationships
  Traditional professional service model
 
 

 
5
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Cartesian is a leading provider of professional services and managed solutions in the
global communications, technology and digital media sector
Company Overview
 Offices in Boston, Kansas City, London, New York and
 Washington
 Onsite and offsite delivery models to suit client needs;
 partner network of ICs, technology providers and SIs
 Clients across six continents include communications
 service providers, technology vendors/OEMs, digital
 media, financial companies and regulators
 Proven understanding of business strategy and client issues
 Expert assessments of operations, platforms, and business
 processes to support corporate strategies
 Аward-winning technology platform and 20+ years
 experience deploying solutions for CSPs
 Industry specialists, focusing exclusively on
 communications, technology and digital media
 Expert operational know-how and project management
 skills, with proven methodologies across content areas
 Several hundred consultants, averaging 15 years of
 sector-specific experience
Capabilities
Global Reach
Industry Focus
 
 

 
6
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Our target clients are the global leaders in the communications, digital media,
technology and financial services sectors
Our Market
Mobile • Fixed • Cable/MSO • Satellite • Cloud & Hosting
Service Providers
Consumer Electronics • Enterprise • Software & Apps
Components • Infrastructure • Intermediaries • Integrators
Technology
Digital Media • Automotive • Energy • Hospitality
Health • Insurance • Retail
Media & Verticals
Government • Regulators • Industry Groups • Foundations
Influencers
Private Equity & Venture • Funds • Commercial Lenders
Investors
Our growth plans are focused on serving the largest players
in our target sector
 
 

 
7
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
We are repositioning Cartesian in light of new market realities
Market Overview
Source: Ovum
We understand how to succeed in current market
conditions, and have already achieved measureable success
The Keys to Success
 Scale, in order to service large clients
 Strong customer relationships
 Solutions that reduce costs and
 deliver efficiencies
 Vertical expertise
Global Telecom Revenue Growth
 Market saturation
 in wireline,
 wireless, pay TV
 Price erosion
Slowing Market
Growth
 Most markets
 increasingly
 dominated by 3-4
 large players
 Similar trend in US
 and Europe
Industry
Consolidation
Completed
Announced
+
+
+
+
 
 

 
8
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
We now operate under a singe brand, Cartesian - a move the symbolizes our new vision
and unified approach to the market
New Brand
The New Brand
Acquired
2001
Acquired
2007
Founded 1990
Rigorous scientific principles
Intelligent, creative thinking
Deep technical expertise
Imaginative problem solving
René Descartes (Cartesius)
Analytic Excellence
Measurability
Reliability
Results
New, unified brand - 2014
Symbolizes:
Symbolizes:
Cartesian
Coordinate System
Inspiration for New Brand:
Identifying
Symbol
Name and
Logotype
Mathematician,
Philosopher,
Inventor of the
Cartesian
Coordinates
The new brand represents lasting, sustainable value for shareholders, employees, and customers
 
 

 
9
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
We have restructured the organization to optimize BAU and to better support growth
objectives
Company Structure
 This structure supports all 3 parts of our growth strategy:
 a)BAU optimization
 b)Solution focus
 c)Partnerships / M&A
Legacy Structure
Sales
Delivery
Sales
Delivery
Sales
Delivery
Sales
Delivery
New Cartesian Structure
One firm
Clear accountability for
revenue growth and
account ownership
Emphasis on solution
development, at scale
Flexible structure for
new solutions and
partnerships
Sales
North America
Sales
Europe
Delivery
Strategy
Execution
Managed
Solutions
Partner
Solutions
 
 

 
10
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Cartesian now provides a unified services portfolio under a single brand, sold through
our dedicated sales channel
Unified Service Portfolio
This unified approach is better for our customers, and
should allow us to more effectively drive cross-sale
Growth & Transformation
Market & Competitive Assessment
Go-to-Market Strategy
Corporate Strategic Planning
Deal Development and M&A
Legal & Regulatory Support
Program Management (PMO)
Operational Excellence
Product Design & Launch
OSS/BSS Transformation
Networks & Infrastructure
Business Assurance, Risk, Compliance
Ascertain® Platform Solutions
  Sales & Marketing Optimization
  Customer Lifecycle Management
  Device Lifecycle Management
  Assurance & Fraud
  Network & Provisioning
  Business Intelligence
 Managed Analytics
 Smart Building Solutions
 Business Process Outsourcing
Strategy
Execution
Managed Solutions
 
 

 
11
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Managed Solutions
 Originally developed for revenue
 assurance - carrier-grade, big
 data implementations
 Features a new data analytics
 engine and UI
 Provides automation of common
 operational processes
 Turnkey solutions addressing
 common service provider needs:
 revenue assurance, device
 logistics, marketing campaign
 analytics, network capacity
 planning
 Our pro services capabilities are
 inherent to the overall solution
Ascertain Overview
 Software combined with pro
 services capability
 Flexible platform - reusable &
 scalable
 SaaS model - not license
 10+ years of run-time
 experience
Key Attributes
The repositioning of our pro services with Ascertain
provides a strong and differentiated value proposition
Security and Audit Layer
Consistent User Interface
Big Data
Outputs
Dashboards/Reports
Business Processes
Visualisation
Workflow
Business
Logic &
Analytics
Engine
Data Sources
Event data
Customer data
Enrichment data
Social media data
Third-party data
 
 

 
12
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Our success with Managed Solutions is exemplified in this client implementation
Managed Solutions
ECM is one offering in our suite of Managed Solutions, built on a common
technology core and supported by our pro services capabilities
Client Case Study
Client Benefits
Cartesian Solution
Client Context
 Loading, indexing and aggregating of
 event data
 Handling of millions of records per day
 Low-latency search across 2 years of
 data; 7 years of archival data storage
A comprehensive and fully managed
data store and big data analytics
solution
 A subsidiary of a Global
 Telecom provider needed
 a searchable data store to
 replace legacy systems
 Client needs & objectives:
  OPEX reduction
  Regulatory compliance
  Improved business
 intelligence
 Seamless access to data
 from across the client
 organization
 Scalable platform, handling
 80M records daily
 Easy platform scaling using
 commodity hardware
 Real-time identification of
 rating issues
 User defined queries
 through Query Builder
 Tool.
Ascertain Event Data Store (EDS)
Key Capabilities Include:
 
 

 
13
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Our approach to Managed Solutions creates value for Cartesian and for our customers
Managed Solutions
Managed solutions provide a path to recurring revenues and improved margins
Managed Solution Model
Development is leveraged across multiple customers
Customer
Deployment 1
Customer
Deployment 2
Customer
Deployment 3
Solution A
(e.g., Right Bill)
Customer
Deployment 4
Solution B
(e.g., SmartXchange)
Cartesian Benefits
 Recurring revenue - typical
 contracts of 12-18 months
 Greater cost/capex leverage
 Differentiation from integration
 from consulting with technology
 Cross-sales opportunities
 Deeper relationships with key
 accounts
Customer Benefits
 Operational efficiency through
 automation
 Faster impact and lower cost
 Solutions tailored to deliver ROI
 Expert advice and “so what”
 messages
 
 

 
14
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Our recently announced partnership with Elutions is the result of a systematic process
Solution Partnerships
This process, which was executed over the past 12 months,
will be applied on an ongoing basis going forward
Strategic Partnership Process
2013/14 Outcome
 Alliances established as key part of our
 corporate growth strategy
 Seeking revenue scale and differentiated
 tie-in to pro services
 Energy = Large area of spend in TMT
 Energy = Complement to Cartesian
 operational expertise
 Elutions = Industry leader in smart building
 solutions for energy management
 Elutions = Multiple professional ties to our
 exec team
 Joint sales team in place, with advanced
 sales pipeline
 Identification of numerous areas for
 collaborations (PMO, marketing)
Working Model
Development
Partner Selection
Target Market Selection
Partnership Rationale
 
 

 
15
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Why energy management? Why smart buildings?
Solution Partnerships
Large
Addressable
Market
Plays to
Cartesian
Strengths
Relevant Cartesian Assets
1.Sales channel and trusted customer relationships
2.Analytics capabilities
3.Knowledge of strategic and operational challenges
facing TMT players
4.Proven ability to deliver complex solutions that
create value for our customers
TMT Industry Issues
Energy is a significant
expense (~1%-3% of
revenue)
Lack of expertise in energy
management
Energy management
represents a key
need in TMT
This move aligns
with our capabilities,
relationships, and
growth strategy
Est. Addressable* US Service
Provider Energy Spend
This move aligns with our customers’ needs, Cartesian strengths, and our growth strategy
VZ, AT&T,
Sprint,
Comcast,
TWC
* Represents network operators only and assumes total energy spend is 0.8% of revenue with 50% of that addressable; Revenues for US fixed and wireless service providers based on Ovum
$1.92B
$1.36B
Total*
Major Target
Accounts
 
 

 
16
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Cartesian is partnering with Elutions to bring Smart Building solutions to the TMT sector
Solution Partnerships
SCADA
Power
Metering
Electricity
HVAC
Controller/
PLCs
Maestro Energy Management Platform
Analytics & Business Intelligence
 Managed solutions that deliver operational
 intelligence and workflow process improvement
 Built on Maestro - a cloud-based, data analytics
 platform
 Automated and intelligent control by linking to
 existing systems
 Consolidated view of facilities and asset
 performance across the full estate
 Delivered via a shared savings model
Solution Overview
 Major OPEX reduction, -- energy savings of 16-25%
 High certainty of benefit from 20+ years experience
 Option for solution financing - EBIT positive from
 Year 1
 Capital-light business case -- payback in >32 months
 Operational intelligence and improvement
 Managed service model, with continued
 optimization
 Support for environmental sustainability initiatives 
Customer Benefits
The customer value proposition is strong, and highly relevant to the TMT sector
 
 

 
17
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Our strategic partner, Elutions, is a leader in the smart building space with highly
complementary skill set
Solution Partnerships
The extent of Elutions’ investment signals their commitment
to Cartesian, and to the smart building market opportunity
Partnership Details
 Strategic relationship to market, sell and implement certain
 products, solutions and services developed by Elutions pursuant
 to a Market Development Agreement
 Success of partnership incentivized through the Investment
 Agreement
 Key terms of the Investment Agreement:
  Elutions to buy 609,756 shares of Cartesian stock at $3.28
  Elutions to lend Cartesian (through UK subsidiaries) $3.3M (at
 7.825%) that can be converted into 996,544 shares via a
 Tracking Warrant ($3.28 exercise price)
  Subject to shareholder approval, Elutions has ability to acquire
 3.4M additional shares via an Incentive Warrant (exercise price
 between $3.85 and $4.85) by delivering a minimum of $85M of
 partnership revenue over the next 5 years (number of
 Incentive Warrants to be vested equals 4% of partnership
 revenue up to cap).
  Opportunity for Cartesian to eliminate debt after 30 months
 (or 18 months if share price is at $5.50)
Elutions Overview
 End-to-end energy solutions, including web-enabled application
 software, wireless and wireline networking hardware, energy
 management bureau services, and engineering and integration
 services
 Centralized business operations intelligence spanning the entire
 energy supply chain, all infrastructure, and all critical assets
 Improvement of business processes relative to critical asset and
 enterprise infrastructure via turnkey application software and
 intelligent hardware solutions
 2,750+ smart building deployments, with 30,000+ smart assets
 under monitoring
 Offices in Tampa, Wisconsin, London, and Lyon, FR
 Founded in 1995
 
 

 
18
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
We are repositioning Cartesian to better address market needs while still capitalizing
on our strengths in TMT
Market Positioning
 Our strong industry ties and
 expertise have been, and will
 continue to be, key drivers of
 our success
 We will complement our
 consultative capabilities with
 replicable solutions
 The combination of technology
 and know-how is a critical
 differentiator
 A unified brand and
 organization will enable greater
 scale efficiency and market
 impact
Vertical
Focus
Customer
Orientation
Product Orientation
Generalist
Service Focus
Solution
Market Positioning
 
 

 
19
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Executive Summary
Summary
  Re-launching our Ascertain analytics platform, as a SaaS model which manages massive, complex,
 and critical data for Tier 1 operators
  Industry know-how, and a track record of solving operational and business problems in TMT
  Ongoing commitment and focus through reorganization on optimizing our core business
  By leveraging our deep business and operational knowledge in TMT, we will jointly market
 and deliver Elutions’ unique solutions to our customers
2
3
4
5
6
1
 
 

 
20
Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
 Where to Find Additional Information
 The Company plans to file with the Securities and Exchange Commission ("SEC") a proxy statement for its
 2014 annual meeting of stockholders that will include a proposal relating to the proposed transaction with
 Elutions, Inc. ("Annual Meeting Proxy Statement"). The Annual Meeting Proxy Statement will contain
 important information about the Company, the proposed transaction with Elutions, Inc. and related matters.
 Investors and stockholders are urged to read the Annual Meeting Proxy Statement carefully when it is
 available. The Annual Meeting Proxy Statement and any other relevant documents (when they become
 available) may be obtained free of charge at the SEC's web site at
www.sec.gov and at the Company's web
 site at
www.tmng.com or by directing a written request to: The Management Network Group, Inc., 7300
 College Boulevard, Suite 302, Overland Park, Kansas 66210, attention Corporate Secretary.
 Participants in the Solicitation
 The Company and its executive officers and directors may be deemed to be participants in the solicitation
 of proxies from the stockholders of the Company in connection with the proposed approval of certain
 agreements and transactions with Elutions, Inc. Information about the executive officers and directors of the
 Company and their ownership of the Company's common stock is set forth in the Company's proxy
 statement for its 2013 annual meeting of stockholders, which was filed with the SEC on April 29, 2013, and
 in the Company's periodic and current reports and in statements of changes in beneficial ownership
 subsequently filed with the SEC, which are available free of charge as described in the preceding
 paragraph. The Company will provide more information about these potential participants in the Annual
 Meeting Proxy Statement and other relevant documents which may be filed with the SEC.