<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 11, 1999
OneMain.com, Inc.
-----------------
(Exact name of registrant as specified in its
charter)
Delaware 000-25599 11-3460073
- --------------------------------- -------------------- --------------------
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
1860 Michael Faraday Drive, Suite 200, Reston, VA 20190
-------------------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (703) 375-3000
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
================================================================================
Exhibit Index is on page 4.
<PAGE>
ONEMAIN.COM, INC.
Item 5. Other Events.
On November 11, 1999, OneMain.com, Inc. held its first Investor and
Media Day at its new corporate headquarters. The Company is filing this
report to disclose information which was presented at the Investor and
Media Day. The information to be disclosed is filed as Exhibit 99.1 to
this report.
Item 7. Exhibits:
Exhibit
Number Exhibit Description
- ------ -------------------
99.1 Information presented at OneMain.com, Inc. Investor and Media Day.
-2-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ONEMAIN.COM, INC.
Date: December 8, 1999 By: /s/ Joseph M. Songer
------------------------------
Joseph M. Songer
Chief Controller and
Acting Chief Financial Officer
-3-
<PAGE>
INDEX TO EXHIBITS
Exhibit
- -------
Number Exhibit Description
- ------ -------------------
99.1 Information presented at OneMain.com, Inc.'s Investor
and Media Day held November 11, 1999.
-4-
<PAGE>
Exhibit 99.1
Risks Regarding Forward-Looking Statements
Some of the statements contained in this Form 8-K are "forward-looking
statements" within the meaning of Section 21E of the Securities Exchange Act of
1934. These statements can sometimes be identified by our use of forward-looking
words such as "may," "will," "anticipate," "estimate," "expect," or "intend" or
the negative thereof or other variations thereon or comparable terminology.
These forward-looking statements are subject to known and unknown risks and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. These risks and uncertainties
include:
. our ability to retain and grow our subscriber base,
. our ability to sustain our projected growth,
. our ability to successfully integrate new subscribers and/or assets
obtained through acquisitions,
. the highly competitive markets in which we operate,
. our ability to obtain required financing on favorable terms,
. our ability to reduce operating costs resulting from the integration and
optimization of our acquisitions, and
. our ability to respond to technological developments affecting the
Internet.
This list included above is intended to identify some of the principal
factors that could cause actual results to differ materially from those
described in the forward-looking statements included elsewhere in this Form 8-K.
These risks and uncertainties are not intended to represent a complete list of
all risks and uncertainties inherent in our business, and no assurance can be
given that future results indicated, whether expressed or implied, will be
achieved. These forward-looking statements are based on current expectations,
and we assume no obligation to update this information. Therefore, our actual
experience and results achieved during the period covered by any forward-looking
statements may differ substantially from those stated or implied. The
forward-looking statements should be read together with the information
presented in this Form 8-K and included elsewhere in recent SEC filings.
<PAGE>
[OneMain.com logo]
Billing & Management Systems
[Graphic of computer network icon superimposed on a picture of five people]
Carlos Escaffi
<PAGE>
AGENDA
1. The Vision
2. Accomplishments
3. Benefits
4. Implementation Approach
5. Project Integration Timeline
6. First Region Integration Update
7. Summary
8. Questions & Answers
<PAGE>
The OneMain.com Vision
----------------------
I. Current Environment
A. 26 Operating Companies
. 26 Billing Applications
. 26 Financial Applications
. 26 Call Centers
. 26 Sets of Business Processes & Policies
B. Different Set of Products & Services Offerings by ISP
C. Un-Integrated Applications
Our goal to accelerate and simplify the Integration process.
II. Target Environment
. Standard Applications & Systems (Best of Breed)->
1 Company
. Standard Business Processes & Policies (Best Practices)
. Integrated Applications
. Standard Set of Products & Services Offerings
<PAGE>
2. Accomplishments - Established The Team
. Competitive Advantages
- Strong Industry Knowledge
. PSINet, UUNET, MCIWorldCom, CTEINS, Concert
- Deep Software Application Knowledge
. Kenan & PeopleSoft
- Structured Development and Integration Methodology
. 80% Of The Team Big-5 Experience
- Partnership With Venders
- Partnership With A Specialized Kenan Consulting Firm
. GTEIns, Excel, Qualcomm, PageNet
- Leverage Functional Knowledge From Operating Companies
<PAGE>
2. Accomplishments - Organizational Chart
[Billing & Management Systems Organizational Chart]
<PAGE>
2. Accomplishments
. Finalized Billing Software Evaluation and Selection Process - July 8, 1999
- Selected Kenan over other billing packages
. Higher overall score from OneMain designed rating process
- Risks and advantages to implement Kenan
. Risks:
More complex implementation
Reliant on Kenan for software changes
- Advantages:
. Well established and proven track record
. Leading convergent billing system
. Flexible Pricing & Discounts Structures
. Mature and stable product
. Capable to support OneMain.com rapid business growth
$ Long term better shareholder value
<PAGE>
2. Accomplishments - Cont'd
. Selected Vendor Packages and Established Technical Architecture
- Kenan Arber/BP - Billing Package
- PeopleSoft - Financial Package
- Crystal Report Writer
- Vertex - Communications, Sales & Use Tax Packages
- Paymentech - Credit Card and EFT Clearing House
- First Union - Lockbox Processing
- Custom Packages - Call Log, Trouble Ticketing, Order Management, Customer
Care
- Interfaces Between Applications
<PAGE>
2. Accomplishments - Cont'd
o Constructed Data Conversion Re-Usable Utility
o Constructed Data Cleansing Re-Usable Utility
o Developed Business Processes For The Target Environment
o Developed Training Materials
o Developed System Test Strategy and System Test Cycles
o Configured New Standard Product Offerings in Kenan
o Identified and Constructed Financial & Operation Reports
<PAGE>
3. Benefits
o Integrated Solution
o Real Time Provisioning
o Scalable Infrastructure
o Minimized Manual Processes
o Rapid Time To Market For New Products
o Better Financial Reporting
o Accelerate Financial Month-End Closing
o Improve Customer Services
o Increase Employee Productivity By Streamlining Business Process
o Other ....
<PAGE>
4. Implementation Approach
o Phase Implementation Approach
- Phase 0: Data Cleansing
. Collect Customer Data
. Diagnose Data/Clean Data
- Phase 1: California Region
. Infrastructure Established
. Data Conversion
- Phase 2: Central Region
. Data Conversion & System Functional Enhancements
- Phase 3: South Region
. Data Conversion & System Functional Enhancements
- Phase 4: East Region
. Data Conversion & System Functional Enhancements
- Phase 5: New Acquisitions
. Data Conversion & System Functional Enhancements
<PAGE>
5. Project Integration Timeline
[This slide depicts a timeline for project integrations. The company expects to
complete integrations of all of its regional ISPs by the third quarter of 2000
and begin integration of new acquisitions by the fourth quarter of 2000. The
company expects to complete integration of the west region (Lightspeed, The
Grid, and JPS) in the first quarter and the central region (Midwest, FGINet,
USIT, Internet Ramp, IndyNet, and ZoomNet) late in the first quarter or early in
the second quarter. The company expects to complete integration of the south
region (IPA, SouthWind, Feist, Horizon, PalmNet, and IAG) late in the second
quarter or early in the third quarter and the east region (D&E, TGF, and
SunLink) in the third quarter.]
<PAGE>
6. First Region Integration Update
[This slide depicts a timeline for project integrations. The company expects to
complete integrations of the California Implementation Approach. In Phase I,
Integration of Lightspeed, the primary goals are to: implement new systems,
invent new business processes and policies, create new Call Center organization
and structure, create a new Training/Testing Lab, select and implement
PBX/ACD/IVR, create Call Center package evaluation, and implement performance
scorecard.
In Phase 2, Consolidation of Lightspeed and The Grid, the company
plans to: implement new systems, refine business process and policies, refine
Call Center organization and structure, implement new PBX/ACD/IVR, implement new
Call Center packages, and refine performance scorecard.
In Phase 3, Integration of JPS with Lightspeed/The Grid, the company
plans to: implement new systems, refine business process and policies, refine
Call Center organization and structure, implement new PBS/ACD/IVR, implement new
Call Center Packages, create new Training/Testing Lab, and refine performance
scorecard.]
<PAGE>
7. Summary
o Building A Top Notch Organization
- Systems
- Business Processes
- People
- Culture
<PAGE>
o Integrated Solution
[This graphic depicts the Company's integrated solution as a jigsaw
puzzle in which customer care, the central piece, unites the other
pieces of the Company's solution, which are billing, order management,
trouble ticketing, and financials.]
<PAGE>
Q & A
<PAGE>
Consumer Product Set
James R. Bryant
<PAGE>
Agenda
. Why Standardization?
. Benefits of a Standardized Product Set
. Consumer Product Sets
. Summary
. Question and Answer Session
<PAGE>
Why Standardization?
. 184 Different Products in Three Categories
. 247 Pricing Plans
. Difficult to Bill
. Difficult to Support in Sales
. Difficult to Support in Fault Resolution
<PAGE>
How Did We Get There
. Looked at Current Offerings
. Economic Evaluation
. Competitive Landscape
. Local Markets
<PAGE>
Chaos to Control
. 26 ISPs . One Company
. 184 Products . 11 Base Products
. 247 Pricing Plans . 11 Pricing Plans
. Numerous . Standard Discount
Discount Plans Plan
. Ability to Have
Targeted Promotions
GRANDFATHERING
<PAGE>
Benefits of Standard Product Set
. Easier to Control and Integrate
. Simplifies Billing Requirements
. Easy to Support Technically
. Reduction in Training Requirements
. Easier to Sell
. Reduces Churn
<PAGE>
Consumer Analog Dial
. 1 Metered Product
. 3 Unlimited Products
. Standardized Setup Fee
. Standardized Discounts
. Value Added Products
<PAGE>
Consumer ISDN Dial
. Two Base Products
. Metered (Single and Dual Channel)
. Unlimited (Single and Dual Channel)
. Standardized Setup Fee
. Value Added Products
<PAGE>
Consumer Web Hosting
. Base offering of Four Products
. Same Products offered for Business Services
. Can be sold either by Call Centers or Business Sales
<PAGE>
Residential ADSL
. Not A National Access Product
. Regionalized Access Product
. Services that go with DSL Access Standard
. Requires a One Year Commitment
<PAGE>
Summary
. Standardized Product Set
. Four Analog Dial Products
. Two Basic ISDN Dial Products
. Four Web Hosting Products
. One Residential ADSL Product
<PAGE>
Question and Answer Period
<PAGE>
Engineering and Technology
Phillip Gross
November 11, 1999
<PAGE>
Overview
. Technology Drivers and Solutions
. Network Planning
. Systems Planning
. Regional Case Study
<PAGE>
Business Requirements
. Enhanced and consistent customer experience
. Lower overall costs
. Access and network costs
. Standard services
. Support for new services
. Broadband
. Wireless email
. Support brand conversion
<PAGE>
Engineering Solutions
. National Network Systems (NNS)
. Deploy regional networks to interconnect our companies
. Cost advantage of regional IXC's and CLEC's
. Upstream Internet connectivity via multiple Tier 1 ISPs
. Control NAP interconnectivity costs
. Install National Backbone when cost-justified
. Deploy redundant national NOC's and data centers
. Scalable Services Architecture (SSA)
. Scalable architecture
. Cost effective common platforms
. Highly robust
. Easily support new services
<PAGE>
National Network Structure
[This graphic divides the Company's National Network Structure into six layers:
the National Service Layer (consisting of Services and National NOC), the
National Network Layer of "upstream" Internet circuits (consisting of the
National Network Service), the Regional Services Layer (comprised of more
Services), the Regional Network Layer (consisting of Regional Networks), the POP
Layer (comprised of POPs), and the Inbound Telco Layer. From the National
Service Layer, Services and National NOCs are connected with the National
Network Service which is in turn connected to Regional Networks. The Services of
the Regional Services Layer are also connected to Regional Networks. Regional
Networks are linked to POPs which are connected to the Inbound Telco Layer.]
<PAGE>
Original Internet Connectivity
[This slide consists of a map of the United States illustrating the third party
providers supplying OneMain's ISPs with their corporate Internet connectivity.]
<PAGE>
Technology Regions
[This graphic displays OneMain's breakdown of the U.S. into two "Technology
Regions", East and West. The cities from which OneMain's ISPs operate are
highlighted on the map shown.
In the West: In the East
Western NOC, Eastern NOC
Western Data Center Wichita, KS
Sacramento, CA Winfield, KS
San Luis Obispo, CA Fort Smith, AR
Bakersfield, CA Washington, MO
Springfield, IL
Carbondale, IL
Indianapolis, IN
Flint, MI
Knoxville, TN
Portsmouth, OH
Ephrata, PA
Sunbury, PA
Altamonte Springs, FL
Merritt Island, FL
Burlington, VT]
<PAGE>
Engineering and Technology Organizational Chart
[This graphic depicts the Engineering and Technology organizational hierarchy,
headed by Phill Gross with Rebecca Ashton as his Assistant. Niels Jonker is the
Director of Services and Systems which includes systems architecture, systems
development, and systems administration. The Director of Network Engineering is
Zach Chambers and he is responsible for overall network architecture, standard
designs and procedures, the National Backbone Service, budget planning, national
contracts, and equipment certification. Technical Operations are divided between
two directors, Brad White in the West and Greg Collins in the East. Each is
responsible for regional network designs and deployments, network operations
centers (NOCs), design reviews and procurement approval, capacity management,
and the staff and directors located in their respective fields.]
<PAGE>
Network Planning Goals
. Inbound Telco: 10 - 20% cost reduction
. CLEC relationships
. LATA wide dialing
. Single trunk groups
. Colo
. SLA
. Regional Networks: 10 - 15% cost reductions
. Regional IXC's
. RFP responses
. Upstream Internet: 20 - 40% cost reduction
. RFP responses
<PAGE>
SSA Structure
[These slides contain flow charts designed to illustrate the interrelationships
between the Access, Service, and Storage components of the SSA Structure. On the
first slide, the components appear from up to down and each has written
descriptions. Arrows connect each component in a progression from up to down. An
arrow, from upper right to lower left, points from a graphic of a cloud
surrounding the word "Internet" to the Access component.
Access
Reliable Internet connectivity through multiple routers and multiple links
Switches take user requests and dispatch to Service tier.
Service
General purpose server farm provides customer accessible services (e.g., Mail,
News)
Storage
Multiple clustered file servers provide highly reliable file storage Various
redundant database servers provide authentication and other data.]
<PAGE>
SSA Architecture
[This slide shows a detailed look at the SSA Architecture, graphically
illustrating the pieces which comprise the Access, Service, and Storage
components of the SSA Architecture.]
<PAGE>
SSA Advantages
. Stair-Step Scaling and Budgeting
. No re-engineering for growth
. Add servers, Switches and Storage
. Will scale to tens of millions
. Open Upgradeable Service Architecture
. 95% standard mail software
. New services easily integrated
<PAGE>
New Services
. Broadband
. Wireless E-mail paging
. Business services
<PAGE>
Summary
. National Network Service
. Lower overall costs
. Increased robustness and manageability
. Scalable Services Architecture
. Enhanced and consistent customer experience
. Support for new services
. Support brand conversion
<PAGE>
Q & A
Engineering and Technology
Phillip Gross
November 11, 1999
<PAGE>
[OneMain.com logo]
Investor and Media Day
November 11, 1999
<PAGE>
Financial Overview
Joe Songer
Chief Controller, Acting CFO
<PAGE>
Agenda
. Organizational Structure
. Financial Outlook
. Key Take-Aways
<PAGE>
Organizational Structure
[This slide depicts the organizational structure of the company:
I. Joe Singer: Chief Controller, Acting CFO
A. Vicki Amand: Director of Finance, Internal Audit Acquisitions
B. Leara Dory: Director of Finance, SEC, Tax
C. Mark Ross: Director of Finance, Corporate Controller, Field ISP
Consolidation
1. Chip Hultman: Assistant Director of Finance, Filed ISP Analysis
a. Phil Cecchini: Regional Finance Director, South
b. Paul Boyd/Judy Woodard: Regional Finance Director, Central
2. Jen Fairfax: Corporate Accountant, Corporate Books
3. Tom Bidinger: Assistant Director of Finance, Field ISP Analysis
a. Carlton Miller: Regional Finance Director, East
b. Pete Engelken: Regional Finance Director, West
D. Bill Tolpegin: Director of Finance, Investor Relations, Wall Street
Relations
E. John Cagnina: Database Manager, Data Management]
<PAGE>
Network Cost Analysis
. Present Cost of Access Revenue (COAR) is 40%
. 20% Cost Reduction by Network Redesign and New Contracts
. Targeted COAR is 32% by 4Q 00
. West Region COAR Reduction Completed by 2Q 00
. Building the Network Infrastructure to Support our Growth and Cost Objectives
<PAGE>
Customer Care Analysis
. Regionalize Call Center Functions
. Improve Service Levels
- Long Term reduction in operating costs per subscriber
- Standardize performance reporting
- Skill-based call routing
- National Load Balancing
. We are Building the Call Center Infrastructure to Maintain a Long-Term
Relationship with Our Customers and Preserve "Your Hometown Internet"
<PAGE>
Sales and Marketing Analysis
. Current Sales and Marketing Cost is 15%
. Drive Down Sales and Marketing Costs by Regionalizing Marketing Efforts
. Advertising Costs, in Sales and Marketing budget, are to increase from 7% to
12% of Total Revenues
. The Increased Advertising Cost is Our Commitment to Investing in our BRAND and
Increasing the Momentum in Organic Growth
<PAGE>
G&A Analysis
G&A Conventional
. Cost Efficiencies Gained by our Regional Strategy
- The West Region's consolidation efforts have decreased G&A Cost by 2%
. Performance Enhanced by building Regional
teams
<PAGE>
Key Take-Aways
. Strong Subscriber Growth Momentum
. Focused Integration Mission
. Building a Strong Brand
. Development of Geographic Communities
. Building Cost Efficiencies by Regional and Network Planning
. Delivering on Our Promises
<PAGE>
Questions & Answers
<PAGE>
[OneMain.com logo]
Investor and Media Day
November 11, 1999
<PAGE>
Marketing:
Building the
OneMain.com Brand
Scott Hoyt
<PAGE>
Agenda
. Brand mission
. Positioning statement
. Value of one brand
. Integration strategy
. Integration objectives
. Integration deliverables/timelines
. Advertising metrics
. Q&A
<PAGE>
[Page consists of graphic depiction of logos of ISPs owned by OneMain.com:
Feist
ipa.net
the Internet Ramp
ZoomNet
Internet Access Group
U.S. Internet
Horizon Internet Technologies, Inc.
InterNET Solutions
SouthWind Internet Access, Inc.
CapeInternet
LebaNet
PennCom
FGInet
IndyNet
Together Networks
SuperNet
JPSnet
Lightspeed Net
UpLink
SunLink
Midwest Internet
thegrid.net
PalmNet Online]
<PAGE>
One Company
One Message
[OneMain.com logo]
<PAGE>
Positioning Statement
Marry the soul of the local
community ISP with the strength of
one common brand
<PAGE>
Marketing Team
[This slide contains a flow chart of the marketing team hierarchy:
I. Customer/Community
A. Field Marketing Supervisors
1. Corporate Marketing Support
a. Regional Marketing Directors
b. Field Marketing & Business Services
c. Strategic Planning
d. Corporate Communications]
<PAGE>
Value of One Brand
. Provides instant credibility...
consumers buy brand
. Drives organic growth and reduces churn
. Creates cost efficiencies
. Provides community bond with "national muscle"
<PAGE>
Integration Strategy
Leverage the strengths of the
OneMain organization in support
of the national brand, while
maintaining the integrity of
local/community based efforts
<PAGE>
Integration Strategy
. Organizational Strengths
. Well-designed integration plans
. Strong brand essence
. Compelling product differentiation
. Established local presence
. Respected strategic partner
. Solid marketing team
<PAGE>
Integration Strategy
. Transitional Migration
. Controls introduction of new brand
. Maintains integrity of local momentum
. Minimizes churn
. Delivers enhanced products/services
. Allows controlled customer notification process
<PAGE>
Integration Objectives
. Build the OneMain.com brand
. Promote within current and prospective markets
. Drive incremental organic growth
. Highlight geographic communities as product differentiator
<PAGE>
Integration Deliverables & Timelines
Discovery Phase I Visual Transition Brand Rollout
2Q/3Q '99 to Phase II to Phase III
3Q/4Q '99 1Q-3Q '00
<PAGE>
Phase I:
Discovery
2Q/3Q `99
. Communication audit & competitive analysis of local ISPs performed
. Corporate logo and website launched
. Arnold Communications retained as national agency
. OneMain.com "Brand Essence" defined
<PAGE>
Phase II:
Visual Transition
3Q/4Q `99
. Local websites updated with OneMain.com logos & links
. Local communications incorporate "a OneMain.com company" tagline
. Back to school promotion developed & executed with OneMain.com tagline (8-
9/99)
. Holiday campaign reflects OneMain.com brand essence (12/99-1/00)
<PAGE>
Phase III:
Brand Rollout
1Q/3Q `00
. Launch Geographic Communities
. Implement customer notification plan
. Convert signage and stage internal employee events
. Announce community initiatives
. Launch Brand advertising campaign
<PAGE>
Advertising as % of Revenue
[This slide contains a bar graph depicting advertising revenue as percentage of
total revenue. This slide contains projections through 4Q '00.]
1Q99 = 3.3%
2Q99 = 5.4%
3Q99 = 7.6%
4Q99 = 9.0%
1Q00 = 12.0%
2Q00 = 12.0%
3Q00 = 12.0%
4Q00 = 12.0%
<PAGE>
Summary
. We have one brand
. We have a well-defined business model
. We have market differentiation
. We have a sound integration plan
. We have an experienced team to execute
<PAGE>
Questions & Answers
<PAGE>
[OneMain.com logo]
Investors' Meeting
November 11, 1999
<PAGE>
Stephen Smith
Chairman and CEO
<PAGE>
Key Investor Questions
1. Why are OneMain's markets unique?
2. What is the competitive landscape?
3. What is our business plan for 2000?
4. Can OneMain execute its long-term substantial business model?
<PAGE>
Mission Statement
"Be the leading customer-driven
provider of Internet access,
Internet services and local
-----
content to smaller metropolitan
-------
markets and rural communities."
<PAGE>
OneMain Today
. Substantial scale
- More than 600,000 subscribers; in the top 10 of all ISPs
. Significant Growth
- Revenues and Subscribers grew:
. 87% and 110% during 1998
. average of 17.8% and 19.2% over the last nine quarters through Q2 1999
. Low Churn
- Less than 2.2% monthly through Q2 1999
. Word-of-Mouth referrals continue to exceed 65%
. Average Rev/Sub remains stable
<PAGE>
ONEMAIN: The Beginning
Recognized Fundamental Shift in ISP Industry
- Internet Access Becoming a Commodity
- Broadband Challenges Dial-up Service
- Market Entrants
- Consolidation
- Bundling of Services
<PAGE>
ONEMAIN: The Beginning
Fundamental Shift = Opportunity
. ISPs are built-in, ready-made distribution network for services, content and
revenues
. Smaller markets are high growth areas
- Under penetrated
- Low churn rates / high customer loyalty
- Appreciate high levels of customer service
- Gain utility from localized content
. Smaller markets are NOT the focus of national ISPs
---
<PAGE>
OneMain's Core Strategy:
"Not Just Another ISP"
. Focus on High Growth, Smaller Markets
- Establish beachhead through acquisition, drive organic growth
. Create Unique On-Line Experience for Users with "High Utility" Geographic
Communities
. Continued Delivery of Very High Level of Customer Service
. National Power, Local Presence!
<PAGE>
Post IPO Milestones
. Have acquired more than 100,000 additional subscribers; over 600,000
subscribers today
. Reported very strong 1st, 2nd and 3rd Quarter results
. Have exceeded all published analyst expectations
. Significantly strengthened Senior Management Team
<PAGE>
Internet Market Overview
[oval graphic around "31% CAGR"]
ISP Market Size
[This slide contains a bar graph of the OneMain Internet Market Overview
focusing on ISP Market Size. The graph shows a published projection that the
size of the ISP Market will rise from $6.8 billion in 1998 to $15.3 billion in
2001.]
<PAGE>
Internet Market Overview
Potential Subscribers
[This slide contains a bar graph of the OneMain Internet Market Overview
focusing on Potential Subscribers. The graph shows a published projection that
the number of potential subscribers will rise from 38 million in 1997 to 135
million in 2002.]
<PAGE>
Sampling of OneMain Markets
[This slide contains a map of the U.S. with pinpointed
cities and is designed to illustrate a sampling of OneMain
markets:
Sacramento, CA
San Luis Obispo, CA
[star graphic in which "AOL Bakersfield, CA
is a long distance phone Wichita, KS
call in more than 50% of Winfield, KS
OneMain.com's markets" is Fort Smith, AR
written] Washington, MO
Springfield, IL
Carbondale, IL
Memphis, TN
Indianapolis, IN
Flint, MI
Knoxville, TN
Portsmouth, OH
Williamsport, PA
Ephrata, PA
Sunbury, PA
Warren, PA
Altamonte Springs, FL
Merritt Island, FL
Burlington, VT
Osterville, MA]
<PAGE>
Smaller markets = unique growth opportunity
<TABLE>
<CAPTION>
OneMain.com National
Markets Averages
------- --------
<S> <C> <C>
Secondary & rural counties 90% 61%
AOL is long distance call 60% 20%
Internet household penetration 20-30% 38%
</TABLE>
We believe smaller markets will exceed National
penetration averaged over the long term!
<PAGE>
OneMain's Markets:
The AOL Disadvantage
. AOL is a long distance call in 60% of our markets
. Lack of network infrastructure creates costly barrier to market entry
. OneMain.com has first-to-market advantage and strong local community presence
. In markets where AOL is not a long-distance call, +50% of new users are AOL
refugees
<PAGE>
Debunking Broadband
Cable
. Only 16% of OneMain.com markets are served by cable Internet providers
More than 80% of our markets are served by 330 cable plants
. Nationwide, 33% of households have cable Internet access available
. However, only 3% of those households have signed up
<PAGE>
Debunking Broadband
DSL
. Only 500K subscribers to date
. Given 3-mile constraint, providers have poor track records serving secondary
and rural markets
<PAGE>
Debunking Broadband
OneMain's Position
. Jupiter estimates broadband's share of the online market to be only 25% by
2003
. We view broadband as a service upgrade for most of our customers
. However, we're meeting the demand today where available
- Recent 01 Communications agreement provides DSL to all of California
. But, Demand has been slow in our markets
- Reason: Price point given limited applications
<PAGE>
Free Access: Buyer Beware!
. Infrastructure does not serve secondary and rural markets
- Not available to 64% of OneMain.com markets
. Overall customer experience is poor
- Unreliable network, frequent disconnects if ads not viewed, poor or non-
existent tech support, hidden costs
. Business model is unprofitable
- Cost of access revenue per customer exceeds advertising revenue
. "You get what you pay for"
<PAGE>
PC Deals Unbundled
. Profitability barrier
- Most expensive component is providing adequate customer service
- Rebates drive average monthly revenue/customer to unsustainable levels
. Customers are waking up to realities
- slow connections, poor tech support, penalties upon cancellation
. Case study: Gateway/AOL deal
<PAGE>
Outlook for 2000
. Finalize integration of all systems
> Network
> Billing
> Customer Care
> Brand Conversion
. End of small acquisitions by mid-year; focus on organic growth to drive
subscriber base
<PAGE>
Business Focus
. Drive "Same Store" Revenue Growth
. Roll-out of Geo Communities
. Maintain Low Subscriber Churn
. Reduce Telecom Costs
. Selected Regional Integration
. Migration to Common Brand
. Capitalize Short-Term on Strong Acquisition Backlog
<PAGE>
"Same Store" Revenue Growth
. Quality of Service
. 65% Word-of-Mouth referrals
. Resellers
. Upselling
<PAGE>
OneMain.com Advantage
. Markets served = growth opportunity
. Superior service = low churn
. Integration strategy = cost efficiency & greater scalability
. Geographic communities = value proposition
<PAGE>
Investor and Media Day
ORGANIZATION OVERVIEW
By
Mike Read
November 11, 1999
<PAGE>
CORPORATE FUNCTIONS
-------------------
[This slide represents a flow chart of corporate functions:
I. Mike Read: President
A. Kevin Lapidus: General Counsel
B. Gayla Beagle: Human Resources
C. Joe Songer: Finance
D. James Bryant: Integration
E. Carlos Escaffi: Management Systems
F. Scott Hoyt: Marketing
G. Phill Gross: Technology
H. Cris Dolan: Content & Alliances
I. Theresa Cagnina: Office Manager
J. Rod Lefever: Product Management
K. Leo Doyle: Special Projects]
<PAGE>
OPERATING COMPANIES
-------------------
[This slide contains a flow chart of the operating companies:
I. Mike Read: Chief Operating Officer
A. Brad Jenkins: West
1. JPS
2. Lightspeed
3. The Grid
B. Wayne King: South
1. IPA
2. Southwind
3. Fiest
4. Horizon
5. Internet Solutions
6. PalmNet
7. IAG
C. Tom Woodard: Business Services
D. Todd Lawyer: Central
1. IndyNet
2. ZoomNet
3. USIT
4. Internet Ramp
5. Midwest
6. FGINet
E. Allon Lefever: East
1. D&E
2. Sunlink
3. PennCom
4. TGN
5. Cape Internet
6. Uplink]
<PAGE>
INTEGRATION
OVERVIEW
"MAKING LIFE SIMPLE"
<PAGE>
PLAN COMPARISON
- -----------------------------------------------
OLD PLAN NEW PLAN
. Billing . CD
. Geo-Communities
. Products
. CD . Networks
. Systems (E-Mail etc.)
. Brand . BOSS
. Billing
. Customer
Service
. Financial
. Brand
- -------------------------------------------------
<PAGE>
INTEGRATION MODEL
-----------------
[This slide depicts a flow diagram providing an overview of the Company's
Integration Model. The following are the components of the flow diagram, as they
appear from left to right on the slide. Arrows show the progression of the
diagram from left to right.
1. Consumer & Business
2. CD & Geographic Communities
3. Products
4. Networks & Systems
5. Billing & Financial
6. Customer service]
WHEN COMPLETE YOU GET THE BRAND
<PAGE>
WHAT MOTIVATED ONEMAIN
----------------------
<TABLE>
<CAPTION>
SIMPLIFICATION STANDARDIZATION IMPROVEMENTS
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
CD X X X
- ---------------------------------------------------------------------------------------
GEOGRAPHIC - X X
COMMUNITIES (Framework)
- ---------------------------------------------------------------------------------------
PRODUCTS X X -
- ---------------------------------------------------------------------------------------
NETWORKS - X X
(Quality & Cost) (Quality)
- ---------------------------------------------------------------------------------------
SYSTEMS - X X
- ---------------------------------------------------------------------------------------
CUSTOMER SERVICE X X X
(Processes) (Use the Best)
- ---------------------------------------------------------------------------------------
BILLING X X X
(Processes)
- ---------------------------------------------------------------------------------------
BRAND X X -
(Only One)
- ---------------------------------------------------------------------------------------
</TABLE>
LEADS TO COST REDUCTION
<PAGE>
WE HAVE THE TEAM
----------------
[This slide depicts a flow diagram providing an overview of the Company's
Integration Model. The following are the components of the flow diagram, as they
appear from left to right on the slide. Numbers show the progression of the
diagram from left to right.
1. Consumer & Business; 2. CD & Geographic Communities;
3. Products; 4. Networks & Systems;
5. Billing & Financial; 6. Customer service]
<TABLE>
<CAPTION>
=========================================================================================
ONEMAIN:
Jim Bryant
Cris Dolan Rod Lefever Phil Gross Carlos Escaffi Scott Hoyt
<S> <C> <C> <C> <C>
PARTNERS:
. MIT . UUCOM . Ernst & Young . Arnold
. TGIX . INS . Kenan . Sloane
. Razorfish . Peoplesoft
. Rockstar . Interface
</TABLE>
<PAGE>
BENEFITS OF INTEGRATION
-----------------------
CUSTOMER INVESTOR COMPANY
- -------- -------- -------
Easy Access for Value Add Solid Foundation
Customers
Better Performance Easy to "Add On" New
Improved Quality of Customers
Service Solid Cornerstone for
Growth New Experience
Simplified Product Set
Local Feel Great Future
New Experience National Power
WE ALL WIN
<PAGE>
INTEGRATION
. Simplify and Standardize
. Local Feel with National Power
. Grow and Reduce Costs
. Give Customers a New Experience
MAKE LIFE SIMPLE
<PAGE>
November 11, 1999
Introduction to Geographic Communities
Cris Dolan
EVP, Chief Content and Strategic Alliances Officer
<PAGE>
Agenda
. Overview of Geographic Communities
. Team and Organization
. Demonstration
. Financial Implications
. Timing and Implementation
<PAGE>
Definition and Mandate of Geographic Communities
"Instead of creating a single virtual homepage where every customer is given the
exact same information regardless of where they live, we are creating a series
of online geographic communities. What does this mean? When you logon to our
service, by virtue of your area code, OneMain.com will link you to a geographic
community specific to your region of the country. That enables us to provide you
with a lot more local, customized content with links to information and
entertainment that are important to you and people like you in your community."
Source: OneMain.com website
<PAGE>
Creation of Beta Geographic Community
Location: Bakersfield, CA
ISP: Lightspeed
Number of Subscribers: 15,000
Geographic Coverage: Bakersfield-Fresno
Key elements of process:
- ------------------------
. Research of beta demographics/customer survey
. Selection of content categories
. Prototype design
. Execution of content agreements
. Technology and content management architecture
<PAGE>
OneMain.com has partnered with several content providers on a national basis to
provide the necessary "Building Blocks" to subscriber ...
[Net2Phone logo] . Net2Phone co-branded Internet telephony
[theglobe.com logo] . theglobe.com co-branded communications
functionality (globelists, message
boards, homepage builder)
[GoTo.com logo] . GoTo.com co-branded, integrated search engine
[MyWay.com logo] . MyWay.com national/entertainment news and
ancillary content (e.g. family
features)
[mail.com logo] . Mail.com Web-based e-mail
<PAGE>
... but it is the local, granular content provided by local content partners
that will set geographic communities apart from competing portals
. Bakersfield.com, the on-line version of the Bakersfield Californian, is
OneMain.com's first local on-line newspaper alliance
. Bakersfield.com and OneMain.com will work together to bring co-branded local
content to subscribers
- Breaking local news
- Local sports headlines and scores
- Local business news
- Classified
. OneMain.com and Bakersfield.com will share ad revenue generated from
co-branded content
<PAGE>
Key external resources for beta development
[Razorfish logo] . Razorfish prototype design
[thaumaturgix.com, inc logo] . Thaumaturgix technology architecture
[Claritas logo] . Claritas customer demographic
research
[photograph of a man] . University of Toronto independent survey of
Professor customer preferences
<PAGE>
Strategic Partnerships
. MIT Media Lab Research alliance
. U.S. Chamber of Commerce National and regional
memberships
<PAGE>
Agenda
. Overview of Geographic Communities
. Team and Organization
. Demonstration
. Financial Implications
. Timing and Implementation
<PAGE>
The Content/Strategic Alliances team has organized itself to achieve maximum
flexibility in design and execution
[This slide is a flow chart of the Content/Strategic Alliances team. The team
is organized in such a way as to achieve maximum flexibility in design and
execution.
I. Strategy Group
A. Business Development/Sales (Corporate)
1. Business Development/Sales (Regional)
. News/media deals including sports and schools
. Recreation/entertainment
. CD distribution and other
B. Design Team (Corporate)
1. Design Team (Regional)
. Graphic designers
. HTML developers
. Technical producer for CD
C. Customer information and website databases
. Demographic reports
. Web usage reports (by market)
. CD distribution reports
. Web template/dynamic database (presentation and input of
content)
D. Product Development & Technology
. Database administrators
. Programmers
. Website architects]
<PAGE>
The content deal process is centered around structuring a basic rate card and
execution on a regional basis
[This graphic shows the relationship between Core Rate Cards and Deal Variables
via a bi-directional arrow between columns with those headings.
The Core Rate card is comprised of:
Customer/market research
Profile of ISP performance
. traffic
. usage
. chum
Inventory of existing deals
External research sources
The Deal Variables include:
ISP location/geography
Type of content
Precedent deals/alliances
Comparison of customer acquisition costs
Term/timing]
<PAGE>
Agenda
. Overview of Geographic Communities
. Team and Organization
. Demonstration
. Financial Implications
. Timing and Implementation
<PAGE>
Revenue Generated by OneMain.com Traffic
[This slide contains a graphical presentation showing how OneMain derives
revenues from regional traffic on its localized co-branded sites.]
<PAGE>
The revenue drivers associated with each content deal are affected by several
variables
. Subscriber growth assumptions
. Timing of rollout/implementation
. Penetration of content/feature
. Frequency of subscriber usage
. Traffic generated per user session
<PAGE>
Key items for completion in advance of national rollout
. Testing
. Claritas reports for OneMain.com local markets
. Focus groups and Surveys
. Beta rollouts [conversion/cut-over plan]
. Refinement of prototype and deal structures
<PAGE>
A key element of OneMain.com's rollout strategy will be devoted resources in the
field in each region.
. Each region will have at least one Business Development/Sales Manager
devoted to research and execution of new local content deals
- Online newspapers
- Local e-commerce and auctions
- Supplemental content
. A local producer will also be present in each region to ensure smooth
transition to the new interface
- Design features
- Technology and database standards
- Content Management
