Etherstack Plc · ASX:ESK
Etherstack — Investor Presentation (June 2016)
26 slides from Etherstack's investor presentation, Jun 16, 2016
Slide 1: Investor Update
For personal use only Investor Update Etherstack plc (ASX:ESK) June 2016
Slide 2: Disclaimer
2 Disclaimer For personal use only This presentation has been prepared by Etherstack plc (ARBN 156 640 532) (“Etherstack” or “the Company”). The information in this presentation is for information purposes only and is not investment, financial product, legal or tax advice. This presentation contains
Slide 3: Investor Presentation: Contents
3 Investor Presentation: Contents For personal use only About Etherstack – What We Do – Mission Critical Radio Networks – Tactical Radio Networks & Products – Technology Licensing – Historical revenues Multiple Revenue Streams – Network Equipment Sales – Specialised Communications Equipment Ethersta
Slide 4: Etherstack
4 Etherstack For personal use only Etherstack is a wireless technology company specialising in developing, manufacturing and licensing mission critical radio technologies. With a particular focus in the public safety, defence, utilities, transportation and resource sectors, Etherstack's technology a
Slide 5: About Etherstack – Mission Critical Radio Networks
5 About Etherstack – What We Do For personal use only Mission Critical Radio Networks Typically used by: Public Safety Organisations (police, fire, ambulance) Utilities (electric, gas, water) Mining/Resource Sector Transportation They form part of essential services infrastructure in every country E
Slide 6: About Etherstack – Tactical Radio Network Equipment
6 About Etherstack – What We Do For personal use only Tactical Radio Network Equipment Etherstack has designed and developed a “best in class” small form factor tactical repeater solution Used by national policing and defence organisations to provide secure ad hoc communications networks back to com
Slide 7: About Etherstack – Technology Licensing
7 About Etherstack – What We Do For personal use only Technology Licensing Other wireless equipment manufacturers license Etherstack technology for use in: Portable radio products (handhelds, in-vehicle, airborne radios) Radio network tower site equipment IP based core network solutions Cryptographi
Slide 8: Historical revenues/underlying NPAT and EBITDA
8 Historical revenues/underlying NPAT and EBITDA Note 1 For personal use only 25000 20000 15000 Revenue USD 000 10000 NPAT (underlying) EBITDA(underlying) 5000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 -5000 Since 2007, Etherstack has earned revenues in excess of A$100m, with the majority of th
Slide 9: 2016 Update & Outlook – Reduced Costs
9 2016 Update & Outlook For personal use only Reduced Costs The company is operating at its lowest cost base in over 6 years, through the rationalisation of product lines and facilities Operating and investing cash costs (excluding cost of sales) have fallen as graphed below: 900 800 Improving month
Slide 10: Multiple Revenue Streams – Network Equipment Sales
10 Multiple Revenue Streams For personal use only Network Equipment Sales Etherstack generates its largest revenues from mission critical radio network equipment sales Etherstack currently has an installed base of 5 major utility networks in the US, Canada and Australia including a major digital rad
Slide 11: Multiple Revenue Streams – Specialised Communications Equipment
11 Multiple Revenue Streams For personal use only Specialised Communications Equipment All electronics and software in these solutions are designed and manufactured by Etherstack Used in high value applications such as disaster recovery, policing and defence applications For example, Etherstack’s in
Slide 12: Multiple Revenue Streams – Technology Licensing
12 Multiple Revenue Streams For personal use only Etherstack’s technology licensing clients typically generate three types of revenue: 1. Technology access fees: Where a wireless equipment manufacture licenses Etherstack’s technology rather than develop it internally 2. Customisation and integration
Slide 13: Multiple Revenue Streams – Long Term Support
13 Multiple Revenue Streams For personal use only Long Term Support Each time Etherstack sells a mission critical radio network, the end user organisation typically enters into a 24x7 support agreement with Etherstack, either directly, or indirectly via a system integrator Lifetime of support revenu
Slide 14: 2016 Update & Outlook – Recent Contract Wins
14 2016 Update & Outlook For personal use only In 2015 significant signs of recovery in the US economy have helped drive underlying revenues in almost all aspects of Etherstack’s diverse revenue streams for the 2016 calendar reporting period Recent Significant Contract Wins Etherstack has had numero
Slide 15: 2016 Update & Outlook – Royalty, Support and Equipment Growth
15 2016 Update & Outlook For personal use only Royalty Growth Etherstack’s Q1 2016 royalty reports from other manufacturers were unusually high, potentially indicating a sector wide recovery Etherstack expects that new royalty streams from a new digital radio technology known as DMR (Digital Mobile
Slide 16: 2016 Update & Outlook – Revenue Forecast 2016
16 2016 Update & Outlook For personal use only Specialised Equipment Growth Etherstack is experiencing increased demand for its new tactical radio network products and seeing fresh orders The company is broadening its portfolio and regional certifications in this area to capitalise on demand Revenue
Slide 17: 2016 Update & Outlook – Cashflow and Rights Issue
17 2016 Update & Outlook For personal use only Stronger Cashflow 2016 has seen much improved cashflow on the back of new contract awards. It is expected that this will continue throughout 2016, and interest costs reduce as a result of the current equity issue Rights Issue The Company is currently un
Slide 18: Outlook Summary
18 Outlook Summary For personal use only Achieved structural changes in the Company’s revenue mix Significantly reduced operating and financing costs Witnessing growing demand across all products and services Benefiting from improved US economy Significant new contract wins already achieved in 2016
Slide 19: Other information
19 Other information For personal use only Board of directors profiles Executive Management profiles Issued capital and options Contacts © Etherstack © Etherstack 2015,2016 under NDA
Slide 20: Board of directors profiles
20 Board of directors profiles For personal use only David Deacon, Group Chief executive officer David has over 20 years’ experience in the wireless communications industry. Prior to Etherstack, David founded and ran an Australian wireless technology company, Indian Pacific Communications Pty Ltd un
Slide 21: Board of directors profiles
21 Board of directors profiles For personal use only Paul Barnes, Non executive director Paul has amassed considerable experience in venture development, financial management, corporate finance and M&A transactions. Paul is a Fellow of the Association of Chartered Certified Accountants and a Member
Slide 22: Executive Management Profiles
22 Executive Management Profiles For personal use only David Carter, Chief Financial Officer David worked within the audit and assurance practice of Coopers & Lybrand and PricewaterhouseCoopers for 12 years in Australia and The Netherlands. David has held senior finance roles in IT companies includi
Slide 23: Issued Capital and options
23 Issued Capital and options For personal use only Capital Structure (1:1 Share:CDI) CDIs currently on issue 72.8 million CDIs to be issued under shortfall offer 55.1 million Total CDIs after completion of the Offer 127.9 million Status of the current raise - Eligible shareholders have subscribed f
Slide 24: Contacts
24 Contacts For personal use only Etherstack plc Level 1 80, Abercrombie St, Chippendale NSW 2008 Phone +61 2 8399 7500 David Deacon, Group CEO, david.deacon@etherstack.com David Carter, Group CFO, david.carter@etherstack.com DJ Carmichael Pty Limited Level 14, Parmelia House 191 St Georges Terrace,
Slide 25: Contacts
25 Contacts For personal use only Media: Walbrook Investor Relations Ben Knowles ben.knowles@walbrookir.com.au +61 426 277 760 © Etherstack © Etherstack 2015,2016 under NDA
Slide 26: For personal use only
For personal use only London New York +44 207 734 0200 +1 917 661 4110 info.eu@etherstack.com info.na@etherstack.com Sydney Yokohama +61 2 8399 7500 +81 45 342 9050 info.au@etherstack.com info.jp@etherstack.com