Ambertech Limited · ASX:AMO
Ambertech — Investor Presentation (October 2021)
29 slides from Ambertech's investor presentation, Oct 20, 2021
Slide 1: Equity Capital Raising Presentation - October 2021
EQUITY CAPITAL RAISING PRESENTATION - OCTOBER 2021 ASX: AMO
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Overview This investor presentation (“Presentation”) has been prepared by Ambertech Limited (ACN 079 080 158) (“Ambertech” or “Company”) and is dated 20 October 2021. This Presentation has been prepared in relation to a proposed capital raising ("Capital Raising") com
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer Future performance This Presentation contains certain “forward looking statements”. Forward looking statements can generally be identified by the use of forward looking words such as, “expect”, “anticipate”, “likely”, “intend”, “should”, “could”, “may”, “predict”, “pl
Slide 4: Executive Summary
Executive Summary Ambertech Limited (ASX:AMO) is a leading value-added distributor of high technology audio-visual (AV) and communications solutions Distribution network of professional, commercial and residential installers, consumer electronics (CE) & musical instrument (MI) retailers, content
Slide 5: Executive Summary
Executive Summary Ambertech is implementing its strategy for revenue and margin growth across each of our market segments through the following M&A initiatives: Successful acquisition (Sept ‘21) of Noise Toys Imports MI business raising profile and reputation in MI market: Independent distribu
Slide 6: Ambertech Snapshot
Ambertech Snapshot
Slide 7: FY2021 Highlights
FY2021 Highlights Revenue NPAT EPS DPS EBITDA $80.1m $5.1m 6.7c 3.1c 36.5% 36.5% 549.2% 5.3c 2.8c Record full year sales and NPAT despite early impact of COVID-19 Strong cash generation, net debt reduced to $0.9m Earnings per share of 6.7 cents up 378% Working Capital up 27.4% Final dividend of 1.6
Slide 8: Capital Structure
Capital Structure Capital Structure (ASX:AMO) Dividends Share price (19 October 2021) $0.475 Final dividend 1.6 cents per share 52 week range $0.10/$0.475 Full year dividend 3.1 cents per share (interim 1.5 cents) Shares on Issue 79.0M Final dividend paid 5 October Options on Issue 1.8M DRP
Slide 9: Business Segments
Business Segments Integrated Solutions Integrated Solutions Professional Retail Supporting our dealer network with world Supporting a strong dealer network and a range of media and communications users Exclusive brand representation in areas class product solutions and support. with world class prod
Slide 10: Business Segments
Business Segments Integrated Solutions Professional Integrated Solutions Retail Of total revenue Revenue FY21 Of total revenue Of total revenue Revenue FY21 Revenue FY21 $0.5m to Typical contract size $1.0m to Typical contract size $36.3m 45% $2.0m $32.6m 41% $6.0m $11.3m 14% Including ~$4.5m in rec
Slide 11: Acquisitions
Acquisitions
Slide 12: Acquisitions – Noise Toys Imports
Acquisitions – Noise Toys Imports Noise Toys Imports was an independent distribution business in the MI market. Product Offering Brands Overview AMO identified the opportunity to add leading key brands and an industry recognised and respected resource capable of assisting in the further growth o
Slide 13: Other Acquisitions
Other Acquisitions Ambertech is well progressed to acquire a smaller business in one of our existing markets and is evaluating other acquisition opportunities that fit the Company’s acquisition criteria: Market segment fit Product fit Brand fit EPS accretive Hills AV acquisition refreshe
Slide 14: FY21 Financials
FY21 Financials
Slide 15: Financial Highlights
Financial Highlights Commentary (A$m) FY21 FY20 Revenue up 36.5% with growth across all reporting segments. Revenue 80.1 58.7 Markets most impacted by COVID-19 include live entertainment and tertiary education. Cost of Goods (54.4) (40.5) Hills AV acquired brands contributed $21.0M in revenue
Slide 16: Balance Sheet
Balance Sheet Balance Sheet Summary (A$m) FY21 FY20 (A$m) FY21 FY20 Current Assets 29.5 32.3 Inventory 12.9 16.9 Current Liabilities (15.6) (21.7) GPROI (Inventory) Working Capital 13.9 10.6 Adjusted Working Capital (excluding cash) 12.1 9.6 172% Non Current Assets 10.3 10.8 127% 115% 119% Non Curre
Slide 17: Cash Flow and Net Debt
Cash Flow and Net Debt Cash Flow Summary (A$m) FY21 FY20 Net Debt ($m) Cash provided by Operating Activities 5.5 1.3 Cash used in Investing Activities (0.5) (4.8) 4.4 Cash used in/provided by Financing Activities (4.2) 3.3 3.8 3.6 Net increase in cash 0.8 (0.2) (A$m) FY21 FY20 Total Finance Debt 2.7
Slide 18: Growth Strategy and Outlook
Growth Strategy and Outlook
Slide 19: Executing Growth Strategy
Executing Growth Strategy Ambertech has a strategy for revenue and margin growth across each of our market segments. These include the following key initiatives: Expanded our reach into more system sales where we take the role of a complete supplier. Recent examples being the ABC Professional pr
Slide 20: FY22 Outlook
FY22 Outlook Final Dividend of 1.6 cents per share for FY21. DRP in place for final dividend. Board have reaffirmed its intention of target dividend pay-out ratio of 45% to 55% for the full year. COVID-19 related lock-downs have led to inconsistent early sales results in some markets. Despite
Slide 21: Capital Raising
Capital Raising
Slide 22: Equity Capital Raising Overview
Equity Capital Raising Overview • Approximately $5.5m (~13.8m shares) via the following: • Placement to raise approximately $4.5m through the issue of ~11.8m fully paid ordinary shares to professional and sophisticated investors under the Company’s ASX Listing Rule 7.1 capacity Offer Size and Type •
Slide 23: Sources and Uses of Funds
Sources and Uses of Funds Sources of Funds Amount (A$m) Placement ~$4.5m Share Purchase Plan (capped at $2m) ~$1.0m Total Sources of Funds $5.5m Uses of Funds Amount (A$m) Executed acquisitions ~$2.0m Debt repayment ~$1.0m Other acquisition opportunities, working capital & transaction costs ~$2.5m T
Slide 24: Equity Capital Raising Timetable
Equity Capital Raising Timetable Event Time (AEDT) / Dates (2021) Trading halt and placement launch 20 October SPP Record Date 7.00pm (AEDT) 20 October Announce completion of placement and SPP Offer 21 October Trading halt is lifted and trading resumes on “ex-entitlement” basis 21 October Settlement
Slide 25: International Offer Restrictions
International Offer Restrictions International Offer Restrictions This document does not constitute an offer of New Shares of Ambertech Limited (Ambertech) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not
Slide 26: International Offer Restrictions
International Offer Restrictions Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in co
Slide 27: Appendix
Appendix
Slide 28: Recent Contract Wins and Agency Gains
Recent Contract Wins and Agency Gains Projects New Agencies Awarded a contract with Leonardo to upgrade the RAN Anzac fleet with Silvus radio solutions. Phase 2 is scheduled During the year: for delivery over the coming 12 months leaving one phase to be completed on the current contract. Jays He
Slide 29: Competitive Landscape
Competitive Landscape Integrated Solutions Professional Retail Streaming audio/video Communications IP radio Demand for small portable projection Market Opportunity Home entertainment Automation of TV, Post-Production Requirement for portable sound Commercial AV Music Production MI