Slide 1: Capturing the mobile technology opportunity at every stage of life
For personal use only Capturing the mobile technology opportunity at every stage of life Spacetalk Limited (ASX:SPA) Investor Presentation Capital Raise August 2023 spacetalk.co
Slide 2: Spacetalk has achieved rapid transformation
For personal use only Spacetalk Mobile Spacetalk Spacetalk Spacetalk has achieved rapid transformation, and the pace of change continues to accelerate. INVESTOR OVERVIEW 2
Slide 3: Rapid transformation and an exciting future for Spacetalk
spacetalk.co Rapid transformation and an exciting future for Spacetalk For personal use only Simon Crowther, CEO & MD Our goal is to be the most trusted provider of family safety Simon is a serial entrepreneur and CEO with and security at every stage of life. 20 years of commercial success rooted in
Slide 4: Transformation: leadership transformed Spacetalk within six months
spacetalk.co Transformation CEO and leadership have transformed Spacetalk within six months For personal use only February 2023 July 2023 Spacetalk was a Spacetalk is a wearables consumer electronics enabled software subscription hardware business and Mobile Virtual Network Operator (MVNO) business
Slide 5: Family safety technology business on a page
spacetalk.co S ’ family safety technology business on a page For personal use only One Two Emotional Three Four Customer Five Established Theme: Experiences: Product Sets: Segments: Revenue Streams: 1. Family Safety 1. Freedom 1. Wearable Hardware & 1. Schools and Educators 1. Hardware Sales Compani
Slide 6: Capital raise
spacetalk.co Capital raise Seeking to raise $2.7 million investment to fund growth For personal use only September 2023 $2.7m $0.022 per share Working Capital › Sufficient to achieve sustainable positive cash flow from H2FY24 Growth Strategy Delivery › Product: Launch Family MVNO Plans › Product: La
Slide 7: Investment highlights: Significant ARR growth
spacetalk.co Investment Significant ARR Growth highlights Spacetalk is focused on tripling ARR to $20-$25m within three years For personal use only Transformation Operational reset Annual Recurring revenue Turnaround continuing, with progress Business fundamentals reset, product Annual Recurring Rev
Slide 8: Annual Recurring Revenue (ARR)
spacetalk.co Investment Annual Recurring Revenue (ARR) highlights For personal use only 8.0 The strategic turnaround 7.0 2.3 plan is already yielding 2.2 tangible results 2.5 6.0 2.5 5.0 Millions ($) 4.0 3.0 6.0 • 30% growth in ARR from Q1 to Q4 of FY23 5.6 • Combined App & MVNO ARR growth of 5.0 50
Slide 9: Subscribers
spacetalk.co Investment highlights 80,000 For personal use only 14,000 70,000 The strategic turnaround 12,000 plan is already yielding 60,000 tangible results 10,000 MVNO Subscribers Total subscribers 50,000 8,000 40,000 6,000 30,000 • 18% growth in total APP & MVNO subscribers from Oct 22 to June 2
Slide 10: Quarterly Revenue Mix
spacetalk.co Investment Quarterly Revenue Mix highlights For personal use only 100% The strategic turnaround plan is already yielding 80% tangible results 60% 40% • Shift from device revenue to recurring revenue • Recurring revenue is 60% to total revenue in Q4 FY23 (Q4FY22: 55%). 20% 0% 1Q22 2Q22 3
Slide 11: Strategy execution
spacetalk.co Strategy execution Horizon 1 May – December 2023 For personal use only Capability Sales Products Stated › Hire key executives › Increase Young Families sales, margins & › Adventurer 2 Watch objectives › Build specialist capability lifetime value › New ‘Affordable’ Watch to deliver strat
Slide 12: Spacetalk product suite & market opportunity
For personal use only Spacetalk product suite & market opportunity spacetalk.co
Slide 13: Market opportunity: addressing family safety needs
spacetalk.co Market opportunity Addressing family safety needs For personal use only 01. 02. 03. 04. Schools and Young Seniors & Employers Educators Families Vulnerable Families & Workers We want to easily communicate I want to keep my kids safe, I want to remain independent, I want to ensure the sa
Slide 14: New products enable execution of our strategy
spacetalk.co New products enable the execution of our strategy, increase customer retention and increase subscription revenue For personal use only Any smartphone can be paired with Spacetalk’s new Family App and connected with new Spacetalk Mobile plans. Spacetalk’s value proposition of freedom and
Slide 15: Wearable hardware & companion apps
spacetalk.co Wearable hardware & companion apps Hardware sales covert to Spacetalk Mobile For personal use only subscribers at a high rate, meaning our MVNO customer acquisition cost is virtually zero. Adventurer Watch Companion App Spacetalk products 4G smartwatch and GPS device full of The Spaceta
Slide 16: Mobile Connection and Schools Messaging Suite
spacetalk.co Mobile and Schools For personal use only Mobile Schools Connection Messaging Suite Mobile Virtual Network Operator (MVNO) plans Mobile Virtual Network that operates on School attendance and parent message the Telstra Network and delivers a range of product suite, including analysis and
Slide 17: Market opportunity: on track to achieve ARR of $20m-$25m
spacetalk.co Market opportunity on track to achieve ARR of $20m - $25m in three years For personal use only FY23/24 FY22 FY231 Var Revenue from continuing operations ($m) 14.8 13.4 -9% Gross Profit from continuing operations ($m) 8.7 6.7 -23% GP margin (%) 59% 50% -8ppts Normalised Cost to Income Ra
Slide 18: Peer comparison
spacetalk.co Peer comparison 1 FY23/CY22 Spacetalk’s ASX market benchmark For personal use only is Life360 Inc (ASX:360). Annual Recurring Revenue (ARR) $8.3M $368.5M Valued at $1.56 billion. Revenue from continuing operations $13.4M $351.2M Normalised Continuing Operations ($3.0M) ($60M) EBITDA 311
Slide 19: Revenue Growth
For personal use only Revenue Growth spacetalk.co
Slide 20: Reset strategy driving tangible operational results
spacetalk.co Reset strategy driving tangible operational results For personal use only Retail eComm Spacetalk Mobile Sales Sales MVNO Subscribers 8% improvement in retailer & distributor terms in H2FY23 142% of target for eComm sales in Q4FY23 ~15,000 active subscribers in 8 months 17% YoY increase
Slide 21: Diversified revenue opportunity
spacetalk.co Diversified revenue opportunity Five established revenue streams, four customer segments, multiple channels For personal use only FY231 $M Actual Revenue Streams & Customer Revenue Go To Market & Revenue Products Segment Type Channels [Gross Margin] Hardware Sales: › Young Families One
Slide 22: Diversified revenue opportunity (continued)
spacetalk.co Diversified revenue opportunity Five established revenue streams, four customer segments, multiple channels For personal use only FY231 $M Actual Revenue Streams & Customer Revenue Go To Market & Revenue Products Segment Type Channels [Gross Margin] App Subscriptions: › Young Families R
Slide 23: Funds deployment
spacetalk.co Funds deployment Grow customer base, increase subscription revenue and customer lifetime value on strong foundation For personal use only Active Wearables Spacetalk Mobile Devices MVNO Subscribers ~60,000 ~42,000 ~15,000 Launched active devices active devices in active subscribers Novem
Slide 24: Corporate overview & opportunity
For personal use only Corporate overview & opportunity spacetalk.co
Slide 25: A strong leadership team
spacetalk.co A strong leadership team For personal use only Simon Craig Tonderai Crowther, Boshier, Maenzanise, CEO & MD COO CFO Joined February 2023 Joined February 2023 Joined March 2023 Simon is a serial entrepreneur and CEO with Craig has over 15 years’ experience working with Tonderai is an acc
Slide 26: Experienced management team
spacetalk.co Experienced management team For personal use only Chris Neary, Steve Fenton, Christine Storey, Chief Marketing & Vice President Head of People Digital Officer Sales & Culture Joined July 2023 Joined March 2023 Joined April 2023 Chris has worked in advertising and digital Steven Fenton i
Slide 27: Experienced management team
spacetalk.co Experienced management team For personal use only James Biddle, Peter Scott, Jamie Simonsen, Head of Business Head of Vice President Development, Schools Product Engineering Joined July 2023 Joined July 2023 Joined June 2023 James has extensive sales and marketing Peter has over 18 year
Slide 28: Safety at every stage of life
Safety at every stage of life For personal use only Spacetalk Limited (ASX:SPA) Investor Presentation Capital Raise July 2023 Spacetalk (ASX:SPA) Simon Crowther CEO and Managing Director P: 1300 087 423 The Capital Network Julia Maguire P: +61 2 8999 3699 E: julia@thecapitalnetwork.com.au
Slide 29: Important legal information
spacetalk.co Important legal information This presentation has been prepared by Spacetalk Ltd. (“Spacetalk,” or “Company,” or “SPA”). For personal use only This presentation: • has been prepared in good faither and with reasonable care. Neither SPA nor any other person makes any representation or wa