Dorsavi Ltd. · ASX:DVL
Dorsavi — Investor Presentation (October 2020)
25 slides from Dorsavi's investor presentation, Oct 22, 2020
Slide 1: Investor presentation October 2020
Investor presentation OCTOBER 2020
Slide 2: Important Information and Disclaimer
IMPORTANT INFORMATION AND DISCLAIMER Not financial product advice or offer This presentation does not constitute an offer of securities or investment, legal, taxation or other advice and the presentation does not take into account your investment objectives, financial situation or particular needs.
Slide 3: Executive Summary
EXECUTIVE SUMMARY • Revenue generating medical device company commercialising innovative motion analysis technologies Commercial stage that accurately measures muscle activity and movement wearables device company • Technology has attracted blue-chip customers including Amazon, Caterpillar and Heath
Slide 4: dorsaVi
dorsaVi
Slide 5: Unique, Validated and Proven Technology
UNIQUE, VALIDATED AND PROVEN TECHNOLOGY WHAT IS OUR TECHNOLOGY? Wearable sensors that measure movement and muscle activity at 200 frames per second paired with patented algorithms HOW DOES IT WORK? Movement - measured through use of accelerometers, magnetometers and gyroscopes Muscle - measured thro
Slide 6: Significant Investment Made with Key Competitive Advantages
SIGNIFICANT INVESTMENT MADE WITH KEY COMPETITIVE ADVANTAGES Only company with a single platform technology that is WORKPLACE & offered across both the workplace and clinical market, CLINICAL MARKET tailored and optimised specifically for each Patented algorithms ensures more accurate data with less
Slide 7: Successful Transition from Low to High Margin Revenue
SUCCESSFUL TRANSITION FROM LOW TO HIGH MARGIN REVENUE RECURRING REVENUE, FY18 FY19 FY20 PRODUCT-LED BUSINESS Consulting-led revenue Transitory phase, developing Improved and enhanced product, model, lower margin, high product, dual focus on increased focus on product-led ✓ Recurring revenue model pr
Slide 8: Increasing Recurring Revenue Underpins dorsaVi's Strategy
INCREASING RECURRING REVENUE UNDERPINS DORSAVI’S STRATEGY Recurring revenue (A$k) Recurring revenue as a % of total +33% CAGR +49% (absolute) 1,504k 74% 1,281k 51% 856k 25% FY18 FY19 FY20 FY18 FY19 FY20 Page 8 Source: Company financials
Slide 9: Robust and Resilient Business Model Proven During COVID-19
ROBUST AND RESILIENT BUSINESS MODEL PROVEN DURING COVID-19 Workplace customer 90% retention in FY20 Q4 FY20 Clinical customer A$373k 80% retention in FY20 Recurring revenues +10% QoQ Strategic partnership with further upside +13% pcp ~$180k of new recurring revenue deals won in Q1 FY21 Page 9 Source
Slide 10: Globally Diversified Blue-Chip Customer Base
GLOBALLY DIVERSIFIED BLUE-CHIP CUSTOMER BASE UK 20% FY20 revenue Strong traction in transport and USA construction 55% FY20 revenue Key target market going forward Past and current clients AUS Past and current clients 25% FY20 revenue Strong traction in supermarket retail and manufacturing Past and
Slide 11: Targeting Two Valuable Target Markets in the US
TARGETING TWO VALUABLE TARGET MARKETS IN THE US Core product lines Workplace Clinical HOSPITAL IN CORPORATE INSURANCE PHYSIO THE HOME aka Physical Therapy Contract with large, labour- Contract with insurance Provision of sensors to Provision of sensors from intensive operating companies to reduce ph
Slide 12: Workplace – Corporate: Significant Untapped US Market
WORKPLACE – CORPORATE: SIGNIFICANT UNTAPPED US MARKET Validated and proven technology Solving for a large, unmet and costly need in the US ▪ The total direct cost of non-fatal 87% reduction in lower back workplace in US is US$60bn1, with injuries, resulting in indirect costs up to 5x larger2 product
Slide 13: Workplace – Insurance: Large Upside with Network Effect
More companies sign WORKPLACE – INSURANCE: directly with dorsaVi LARGE UPSIDE WITH NETWORK EFFECT ▪ dorsaVi is introduced to companies through the insurer’s network Successful results seen Strategic partnership with insurance company ▪ Reduce worker compensation claims ▪ QBE Australia (QBE) has pre-
Slide 14: Clinical – Physical Therapy: Base Market with Room to Grow
CLINICAL – PHYSICAL THERAPY: BASE MARKET WITH ROOM TO GROW The dorsaVi Solution dorsaVi’s products are in over 300 sites in US1 ▪ Physical therapists need to be able to objectively assess their patients‘ movements in and out of the clinic 115 1 ▪ Complex, subtle movements need to be automatically 2
Slide 15: Clinical – Hospital in the Home: Orthopaedic Opportunity
CLINICAL – HOSPITAL IN THE HOME: ORTHOPAEDIC OPPORTUNITY The dorsaVi Solution Our tech touches every stage of the surgical process ▪ Hospitals are liable for the cost of subsequent admissions related to the original treatment ▪ To drive down costs, new data is sought to understand movement and align
Slide 16: Well Positioned to Deliver Next Phase of Growth
WELL POSITIONED TO DELIVER NEXT PHASE OF GROWTH Building blocks now ..to deliver strong ..and take advantage firmly in place.. operating leverage.. of strong tailwinds ✓ Years of R&D to ✓ Recurring revenue with ✓ Increasing corporate optimise technology low customer churn focus to reduce workplace i
Slide 17: Clear Plan to Cash Flow Positive in FY22
CLEAR PLAN TO CASH FLOW POSITIVE IN FY22 Cash FY21 FY22 flow Increase inflows – dorsaVi is targeting >25% recurring revenue growth in FY21 (see next page for further details) ▪ Build recurring revenue ▪ Monetisation of pilot products ▪ Secure new deals with new ▪ Diversify sales channel ▪ Expand sal
Slide 18: Targeting Recurring Revenue Growth of >25% in FY21
TARGETING RECURRING REVENUE GROWTH OF >25% IN FY21 WITH SIGNIFICANT WHITESPACE AHEAD Build recurring revenue Grow channel partners New global platform Continue growing revenue with proven Focus on strategic agreements with In talks with S&P500 customers, aided product, supported by strong tailwinds:
Slide 19: At a Value Inflection Point with Significant Value Upside
AT A VALUE INFLECTION POINT WITH SIGNIFICANT VALUE UPSIDE Market Cap / FY20 Revenue multiple of ASX-listed peers (x) 69.4x 36.6x 19.7x 19.9x 15.5x 16.7x 9.4x 7.0x 4.1x Market cap1 $9.7m $30.1m $46.9m $89.1m $192.7m $83.9m $77.7m $105.9m $153.2m Revenue2 $2.4m $4.3m $5.0m $5.7m $11.5m $4.3m $3.9m $2.
Slide 20: Investment Highlights
INVESTMENT HIGHLIGHTS SCALABLE WORLD-CLASS TECHNOLOGY Tailored motion sensor products developed over several years, uniquely available to the workplace and clinical market, and differentiated by its global approvals (FDA, TGA, CE Mark ) SUCCESSFUL TRANSITION TO HIGHER MARGIN, PRODUCT-LED MODEL Stron
Slide 21: Appendix
Appendix
Slide 22: Board of Directors
BOARD OF DIRECTORS Greg Tweedly Michael Panaccio Non-executive Chairman Non-executive Director • Director of Melbourne Health, • Former director at ImpediMed, Deputy Chair EPA Victoria and Sirtex Medical, Protagonist Chair of the Personal Injury Therapeutic and Energy Response Education Foundation •
Slide 23: Executive Team
EXECUTIVE TEAM Andrew Ronchi Matt May Director & Chief Executive Officer General Manager • Founder and CEO of dorsaVi from • 10+ years’ experience working for inception ASX listed product and services • Founding partner in five companies in the health and physiotherapy centres and former technology
Slide 24: Corporate Information
CORPORATE INFORMATION About dorsaVi Share price performance (last 6 months) ▪ Specialises in the development of wearable Acps sensor technology 7 ▪ Proprietary software to measure movement and 6 muscle activity ▪ Core focus on US workplace and clinical markets 5 Trading information 4 Share price (19
Slide 25: Contact us: Andrew Ronchi
Contact us: Website: www.dorsavi.com Andrew Ronchi Chief Executive Officer Social media: LinkedIn: dorsaVi T: +61 417 882 267 Twitter: @dorsavi E: ar@dorsaVi.com