Catapult Sports Ltd. · ASX:CAT
Catapult Sports — Catapult Group International — FY2017 Earnings Presentation
38 slides from Catapult Sports's earnings presentation, Aug 31, 2017
Slide 1: FY2017 Full Year Results
For personal use only FY2017 Full Year Results Joe Powell (CEO) and Shane Greenan (CFO) 31 August 2017 Catapult Group International Limited | ACN 164 301 197
Slide 2: Executing in line with our strategic pillars
For personal use only Executing in line with our strategic pillars Own the performance Leverage elite into Commercialise elite technology stack for prosumer wearable & video data elite sport Our Purpose • Aggressively grow share • Target prosumer market • Explore avenues to To build and improve the
Slide 3: Delivering an expanded product offering across our two key markets
Delivering an expanded product offering across our two key markets Transformational For personal use only FY16 FY17 FY18 year Tactical AMS Elite Video Elite c. 10,000 teams1 Data Commercialisation Elite Wearables Full prosumer release AMS Prosumer c. 10x – 20x1 PLAYERTEK by Catapult Software upgrade
Slide 4: Sustained track record of successful acquisitions
Sustained track record of successful acquisitions For personal use only Ubiquitous (or nearly ubiquitous) offering Relevant to Catapult’s existing elite Catapult’s strategic ‘For’ performance customer base acquisition checklist Software component – sold or able to be sold as SaaS Bonus: po
Slide 5: Establishing global scale
Establishing global scale For personal use only 131 employees 66 employees 108 employees Global staff breakdown North America EMEA & ROW APAC GA & Exec 12% Operations 33% Sales & Marketing 34% Technology 21% Regional revenue breakdown 60.8 Hub offices 73% Melbourne, Aus A$m Boston, USA 17.4 Chicago,
Slide 6: FY17 Key Achievements
FY17 Key Achievements For personal use only 1 Strong elite wearables growth • 52% YoY revenue growth (CAGR of 90% since FY14) and 62% of FY17 elite contracts sold on subscription vs 57% in FY16 2 Taking XOS to double digit growth • Successful integration saw top-line XOS growth accelerate to 10.4% i
Slide 7: 1.0 FY17 Financial Results
1.0 FY17 Financial Results For personal use only 7
Slide 8: Significant recurring revenue growth story
Significant recurring revenue growth story 1.1 Underlying EBITDA positive for the first time since subscription model commenced in 2012 For personal use only Recurring vs one-off statutory revenue Historical underlying EBITDA 60.8 2.9 3 136% CAGR1 71% 0 A$m A$m -0.9 17.4 -3 -2.5 11.3 53% 4.8 45% 28%
Slide 9: Summary financial performance
1.2 Summary financial performance For personal use only FY17 FY16 YoY • Transformational year supported by another strong $m $m change year of elite wearables sales delivering 52% YoY growth and addition of high quality business in XOS Capital revenue 17.2 8.1 112% • Catapult now predominantly a rec
Slide 10: Statutory to underlying EBITDA
For personal use only Statutory to underlying 5.0 EBITDA 3.3 2.9 2.5 • Capital raising, acquisition and integration costs following transformational A$m 0.0 0.4 year supporting acquisitions 0.8 and growth 0.7 • Share based payments costs 1.4 associated with employee -2.5 share plan and tranche of op
Slide 11: Strong working capital position leading into peak cash collections cycle
Strong working capital position 1.4 leading into peak cash collections cycle For personal use only • Group’s cash flow cycle sees strong receipts in Q1 as a Pro-forma Group operating cash receipts result of sales and billing seasonality, concentrated in Q4 Pre XOS acquisition Post XOS acquisition* •
Slide 12: Continued commitment to R&D and product investment
Continued commitment to R&D 1.5 For personal use only and product investment • Developed data commercialisation platform for live Research and development costs1 broadcast and 2nd screen apps • Re-engineered PLAYERTEK by Catapult app and web-based software layer • Development of sport specific advan
Slide 13: 2.0 Technology for elite sports
2.0 Technology for elite sports For personal use only 13
Slide 14: Integrated technology stack for elite sport
For personal use only Integrated technology Elite Expanded value proposition stack for elite Elite Video wearables sport • 1st key technology Market leader in training Game-day performance • 2nd key technology pillar in elite club pillar in elite club performance and broadcast environments Integrate
Slide 15: Large recurring revenue opportunity for Elite
Large recurring revenue opportunity for Elite For personal use only Underpenetrated market Growing addressable market Future revenue growth c. 10,000 teams1 $450m-$550m2 Data monetisation (commenced) AMS Analytics add-ons (scoping) Wearables Tactical analytics (scoping) Video Other technology stack
Slide 16: Integrated stack delivering a high quality growth story
2.3 Integrated stack delivering a high quality growth story For personal use only Integrated technology stack for elite sport 1 Very sticky products Extremely low churn, currently at c. 1.5% 2 High growth rate Elite wearables revenue up 52%, XOS revenue up 10.4%1 3 year wearable subscription con
Slide 17: Elite wearables business update
2.4 Elite wearables business update For personal use only • Strong top line revenue growth of 52% YoY % FY17 FY16 change • Continued increase in recurring revenue base, with 62% of FY17 Elite contracts sold on subscription vs 57% Elite wearables revenue 26.41 17.4 52% in FY16 • 58% of FY17 revenue f
Slide 18: Elite wearables: history of strong growth
Elite wearables 2.5 History of strong growth For personal use only Elite wearable revenue Elite wearables subscription base 90% CAGR1 13,780 units 26.4 42% 17.3 8,749 units A$m 11.2 47% 4,447 units 55% 58% 3.87 53% 48% 45% 52% FY14 FY15 FY16 FY17 FY15 FY16 FY17 Subscription Capital * Since FY14 18
Slide 19: Elite wearables operational highlights
Elite wearables 2.6 Operational highlights For personal use only Key achievements in FY17 • 3 league-wide deals • Released next-gen Openfield platform (including mobile and tablet apps) • Continued global ClearSky stadium installs – 16 stadiums and venues in 4 countries now complete • First commerci
Slide 20: League wide deals and data commercialisation
Broadcast overlay1 For personal use only League wide Agreement deals & data Catapult 1 commercialisation Successful year in FY17, demonstrating wearable data Data rights 2nd screen apps2 commercialisation possibilities in global first $ 2 League 3 Player benchmarking 4 Shoulder programming 5 G
Slide 21: ClearSky
ClearSky For personal use only Revolutionising Select ClearSky installations: player monitoring • Real-time positional accuracy • Proven live data feed commercialisation applications • Proven in sports that cover 18 of the top 20 leagues globally • Compelling global market opportunity, with FIFA and
Slide 22: Elite Video business update
2.9 Elite Video business update For personal use only YoY % • Successful integration saw top-line XOS growth FY17 FY16 change accelerate to 10.4% in FY171 (vs 3.6% in FY16) • Solid growth in elite level clients (in particular NCAA) Statutory revenue 33.3 - N/A leveraging integrated North American sa
Slide 23: Elite Video operational highlights
Elite Video 2.10 Operational highlights For personal use only Key achievements in FY17 • Accelerating revenue growth (10.4%1 in FY17 vs 3.6% in FY16) • Successful acquisition and integration into Catapult Group • Marquee client wins, including first international sale to German Ice Hockey team Eisbä
Slide 24: Our 1st video-based league-wide deal
For personal use only Our 1st video- based league- • The NHL is a professional ice hockey league composed of 31 teams – 24 in the United States wide deal and 7 in Canada • Considered the premier professional ice hockey league and the 5th largest professional sporting league (by revenue) in the world
Slide 25: Athlete Management System (AMS)
Athlete Management 2.12 System (AMS) For personal use only What is an AMS? • SaaS modularized cloud-based platform • Acts as a store of team data and information, including: – Player wellness and performance metrics – Injury and medical records – Wearable data – Links to video files • Permission bas
Slide 26: AMS by Catapult expands our data analytics offering
AMS by Catapult expands our data 2.13 analytics offering beyond the sporting field For personal use only • Acquired SportsMed Elite & Baseline products from SMG Technologies Pty Ltd for $1.9m upfront cash consideration1 • Capability to provide teams with a centralised data repository and analytics p
Slide 27: Investment into tactical analytics
2.14 Investment into tactical analytics For personal use only • Originally identified as a 2nd acquisition target at the capital raise in May 17 Why is tactical analytics a compelling opportunity? • In-depth due diligence on identified target complete • As a Group, when considering tech stack acquis
Slide 28: 3.0 Prosumer
For personal use only 28 3.0 Prosumer
Slide 29: Prosumer market opportunity
US Examples For personal use only Prosumer market Soccer American Football opportunity c. 1.8k athletes Elite c. 1.5k athletes We think the prosumer market could be 10x – 20x the size of the c. 25k athletes c. 73k athletes elite market (in # of teams) Prosumer business will be marketing driven We ar
Slide 30: Prosumer operational highlights
3.2 Prosumer operational highlights For personal use only Key achievements in FY17 Step change in PLAYERTEK sales • Successful integration into Catapult Group following Apr ‘17 re-launch • Measured build-up of prosumer team • PLAYERTEK by Catapult launched in April ‘17 2,524 PLAYERTEK by Catapult –
Slide 31: Prosumer roadmap & next steps
3.3 Prosumer roadmap & next steps For personal use only Aug 16 Apr 17 FY17 FY18 PLAYERTEK acquired PLAYERTEK by Team and platform Full prosumer Catapult launched build-out product release • Proven low-cost, • Proven hardware • Investment in marketing • Targeted FY18 release commercialised solution w
Slide 32: 4.0 Outlook
For personal use only 32 4.0 Outlook
Slide 33: Outlook
4.1 Outlook For personal use only • Strong growth of the elite wearables business, including the continued expansion of our recurring revenue base through subscription sales • Further integration of acquisitions as the business works towards the longer term goal of developing a fully- integrated per
Slide 34: Q&A
For personal use only 34 Q&A
Slide 35: 5.0 Appendix
For personal use only 35 5.0 Appendix
Slide 36: Strengthening balance sheet position
A Strengthening balance sheet position For personal use only 30-Jun-17 30-Jun-16 • Working capital position1 of +$7.6m (vs -$4.4m in FY16) Assets $m $m Cash and cash equivalents 16.7 3.6 – Healthy accounts receivable balance leading into Trade and other receivables 27.1 8.4 Q1 FY18 Inventory 3.3 2.1
Slide 37: Pro-forma EBITDA reconciliation
B Pro-forma EBITDA reconciliation For personal use only $m FY17 FY16 Statutory Result (3.7) (6.8) Capital raising and acquisition related costs 1.4 1.9 Integration costs 0.7 - Litigation and contract settlement costs 0.8 0.4 Severance costs 0.4 Share based payments costs 3.3 Underlying EBITDA 2.9 (4
Slide 38: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Catapult Group International Limited ACN 164 301 197 (‘Catapult’). Each recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set out below. None of Catapult and or its
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