Slide 1: FY23 Results
FY23 Results 30 AUGUST 2023 AI-Media Technologies Limited (ASX: AIM)
Slide 2: CEO and CFO quotes
“ AI-Media has successfully deployed the latest AI technologies to solidify ourselves as leaders in the live captioning industry. As the only vertically integrated player, we are uniquely positioned to lead and scale the global captioning market Tony Abrahams Co-founder, CEO & Shareholder (~15%) FY2
Slide 3: AI-Media at a glance
AI-Media at a glance AI-Media is the leading captioning, transcription and translation provider globally, with over 9 million minutes a month1 captured on its iCap platform Best-in-class technology, providing the only end-to-end captioning solution in market, from encrypting source data to encoding,
Slide 4: FY23 Key highlights
FY23 Key highlights Total revenue1 Tech revenue2 LEXI revenue Monthly LEXI minutes3 $61.8m $24.0m $7.8m >3.4m up $2.0m up 33% up 45% up 44% (FY22: $59.8m) (FY22: $18.0m) (FY22: $5.4m) (FY22: 2.4m) Total GPM Tech gross profit Total EBITDA Cash balance4 60% $20.2m $3.3m $17.0m up from 55% up 30% up >2
Slide 5: Celebrating 20 years leading and scaling the global captioning market
Celebrating 20 years leading and scaling the global captioning market An integrated product suite Our refreshed branding captures our passion for innovation, our commitment to pushing the boundaries of technology, and our unwavering focus on creating value for our customers. Milestone achievements ✓
Slide 6: Agenda
1 AI-Media update 2 FY23 financials Agenda 3 Strategy & outlook 4 Additional information 6
Slide 7: AI-Media update
o Al-Med update Al MEDIA >
Slide 8: AI-Media ecosystem
AI-Media ecosystem Market-leading captioning platform, providing customers with the only end-to-end solution 1 2 3 4 Video Input Encrypted Encoding Real-time Captioning Captioned Video Output Encoders and iCap network used by both customers and competitors Live or recorded Cloud, virtual, or Matches
Slide 9: Blue chip customers and new wins
Blue chip customers and new wins Trusted by global leaders in broadcasting, government and other sectors, with upside potential in existing customer base Select global customers $7.8 million in LEXI sales, including from: 9
Slide 10: Network traffic and LEXI growing strongly
Network traffic and LEXI growing strongly Increasing iCap usage (minutes) underpinning conversion opportunity to higher margin LEXI solutions iCap network usage (monthly minutes) LEXI usage (monthly minutes) +21% 9.1m 3.4m +44% 7.6m 2.4m 6.1m 1.0m Jun-21 Jun-22 Jun-23 Jun-21 Jun-22 Jun-23 Note: Base
Slide 11: Technology update
Technology update Strengthening our defensive moat by incorporating the latest advancements in AI and other emerging technologies Increased accuracy UX/UI EEG cloud update Advanced scheduling Agnostic AI Upgraded encryption & Integrated LEXI compatibility Multi-factor authentication product suite Im
Slide 12: FY23 financials
FY23 financials Al MEDIA >
Slide 13: Summary FY23 financials
Summary FY23 financials Technology focus underpins GP growth and margin expansion driving 200% increase in EBITDA and strong operating cashflow A$m FY23 FY22 Variance Growth % Services revenue 37.8 41.8 (4.0) (10%) Double-digit growth in technology revenue of 33%, Tech revenue 24.0 18.0 6.0 33% unde
Slide 14: Gross profit composition and margin growth
Gross profit composition and margin growth FY23 gross profit margin increasing from 55% in FY22 to 60% in FY23 Revenue and Gross Profit ($m) Gross Profit ($m) and GP margin (%) Total revenue Tech GPM increase Gross profit Services reflects scalability of technology 59.8 61.8 60% 55% 48.7 36.9 32.9 1
Slide 15: EBITDA performance up 200%
EBITDA performance up 200% >200% growth in EBITDA to $3.3m reflecting higher margin technology revenue and strategic OPEX investment EBITDA ($m) and EBITDA margin1 (%) FY22 to FY23 EBITDA bridge ($m) 5% Strategic OPEX investment, including targeted sales and marketing initiatives 2% 3.3 1.1 Overall
Slide 16: Strategy & outlook
Strategy & outlook Al MEDIA >
Slide 17: FY24 growth priorities
FY24 growth priorities Continued focus on enhancing technology solutions to drive a sustainable and scalable business model Leverage recent product releases (LEXI 3.0 and Transition of revenue composition and GP margin LEXI Toolkit) to drive growth. Accelerate conversion of 3rd party iCap users to L
Slide 18: Launching AI-powered LEXI Toolkit
Launching AI-powered LEXI Toolkit Enhancement of automatic captioning solutions to accelerate growth in technology revenue Commercialisation benefits P Larger addressable market Diversified and enhanced product offering expanding the customer base and creating new opportunities for growth P Superior
Slide 19: Upgrading and investing in iCap
Upgrading and investing in iCap iCap development to facilitate (minutes) growth with customer value front of mind Targeted improvements in iCap Enhanced Stronger privacy & Increased More reliability at scale security accuracy automation Customer uptime results of Encrypt connections and Deliver high
Slide 20: Industry landscape
Industry landscape Unique position as the only vertically integrated player in market – creating a compelling long-term value proposition Core business in captioning services Media & broadcast services Company Pre-recorded Captions ✓ ✓ ✓ ✓ ✓ ✓ Live Automated Captions ✓ ✓ ✓ ✓ ✓ ✓ Human Curated Di
Slide 21: Al MEDIA >
Al MEDIA > 21
Slide 22: Additional information
Additional information Al MEDIA >
Slide 23: Profit & loss statement
30-Jun-23 30-Jun-22 Var ($m) ($m) ($m) Revenue 61.8 59.8 2.0 Cost of sales (24.9) (26.9) 2.0 Gross Profit 36.9 32.9 4.0 Other income 0.5 0.3 0.1 Operating expenses (34.0) (32.1) (1.9) Profit & loss statement EBITDA 3.3 1.1 2.2 For the full year ended 30 June 2023 Depreciation and amortisation (4.9)
Slide 24: Balance sheet
30-Jun-23 30-Jun-22 Var ($m) ($m) ($m) Cash and cash equivalent 17.0 15.2 1.8 Trade receivables 10.5 11.2 (0.7) Other current assets 3.4 3.5 (0.1) Total current assets 31.0 30.0 1.0 Property, plant and equipment 4.5 4.8 (0.3) Intangibles 59.3 60.3 (1.0) Other non-current assets 6.0 7.5 (1.5) Total n
Slide 25: Cash flows
30-Jun-23 30-Jun-22 Var ($m) ($m) ($m) Receipts from customers (incl. of GST) 67.0 63.6 3.4 Payments to suppliers and employees (incl. of GST) (63.6) (59.8) (3.8) EEG associated acq. costs - (1.6) 1.6 Interest received 0.1 0.0 0.0 Other revenue 0.5 0.0 0.4 Interest and other finance costs paid (0.4)
Slide 26: Management
Management Strong and qualified management team to drive product development and commercialisation strategy TONY ABRAHAMS DONNA REID JAMES WARD BILL MCLAUGHLIN JOHN BIRD Co-Founder and CEO Chief Operating Officer Chief Sales Officer Chief Product Officer Chief Financial Officer • Tony co-founded AI-
Slide 27: Board
Board Highly skilled and experienced senior leadership team with decades of experience DEANNE WEIR TONY ABRAHAMS ALISON LOAT JOHN MARTIN CHERYL HAYMAN Non-Executive Chair Co-Founder and CEO Non-Executive Director Non-Executive Director Non-Executive Director • Deanne has served as • Tony co-founded
Slide 28: Leveraging AI advancements
Leveraging AI advancements Technology solutions bolstered by advancements in AI Refining LEXI through upgraded GPT and language processing models enhancing accuracy and improving customer experience Automatic captioning lowers manual transcription costs, providing quicker captioning turnaround and b
Slide 29: Leading capability
Leading capability Globally embedded iCap network and AI-underpinned product suite uniquely positions for growth World leading captioning network, infrastructure and solutions ✓ Offered as cloud software or ✓ Scalable cloud-based network ✓ Proprietary speech recognition hardware solution ✓ Encrypted
Slide 30: Rapid increases in automatic captioning quality
Rapid increases in automatic captioning quality Massive improvements in AI has delivered the fastest improvement in captioning quality to date Bad quality Good quality 98.2 98.7 The amount of content capable of being delivered with LEXI has risen LEXI 2.0 LEXI 3.0 from 60% to +90% 98 99 100 NER1 Qua
Slide 31: Disclaimer
Disclaimer This presentation (Presentation) contains summary information about AI-Media Technologies actual results, performance and achievements to differ materially from statements in this Limited and its subsidiaries (the Company or AI-Media) based on information as at 28 August Presentation. For
Slide 32: Further Information: AI-Media Technologies
Further Information: AI-Media Technologies Lisa Jones Company Secretary investorrelations@AI-Media.tv NWR Communications Melanie Singh Investor Relations melanie@nwrcommunications.com.au 32