Catapult Sports Ltd. · ASX:CAT
Catapult Sports — Catapult Group International — Investor Presentation (March 2018)
43 slides from Catapult Sports's investor presentation, Mar 26, 2018
Slide 1: Growth capital raising presentation
For personal use only Growth capital raising presentation 26 March 2018 Presenters: Joe Powell (CEO) Mark Hall (CFO) 1
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by Catapult Group International Limited ACN 164 301 197 (Catapult, or the Company), in relation to a proposed placement of fully paid ordinary shares (New Shares) to eligible investors in Australia and selected other jurisdictions
Slide 3: Disclaimer (cont'd)
D I S C L A I M E R ( c o n t ’d ) For personal use only Future performance This document contains certain 'forward looking statements', including but not limited to projections, guidance on future revenues, earnings, other potential synergies and estimates, outcome and effects of the Placement and
Slide 4: Agenda
AGENDA For personal use only 1. Our purpose, opportunity and strategy 2. Key growth drivers 3. Transaction summary 4 4
Slide 5: Our purpose, opportunity & strategy
For personal use only SECTION 1 OUR PURPOSE, OPPORTUNITY, & STRATEGY
Slide 6: Our purpose
OUR PURPOSE TO B U I L D A N D I M P R O V E T H E P E R F O R M A N C E O F For personal use only AT H L E T E S A N D S P O R T I N G T E A M S Optimise Performance Return to Competition Injury Risk Management Plan and deliver training stimuli that are Map player recovery and rehabilitation to Man
Slide 7: Our strategy
OUR STRATEGY OUR For personal use only S T R AT E G I C PILLARS OWN THE PERFORMANCE COMMERCIALISE ELITE LEVERAGE ELITE INTO TECHNOLOGY STACK FOR WEARABLE & VIDEO DATA PROSUMER ELITE SPORT How will we succeed? 1. Improve sports performance via technology and dominate the • Aggressively grow share • E
Slide 8: The Catapult elite product suite
OUR STRATEGY THE CATAPULT ELITE PRODUCT SUITE For personal use only INVESTMENT IN ELITE PRODUCTS TO DRIVE PENETRATION AND EXPAND REVENUE STREAMS 4. Product suite Integrated Performance Technology expansion Tactical AMS 3. Adjacent market expansion Stack Data Commercialisation 2. Core acquisition Eli
Slide 9: The elite addressable market
OUR OPPORTUNITY THE ELITE ADDRESSABLE MARKET For personal use only Underpenetrated market Growing addressable market Future revenue growth c. 10,000 teams1 $450m-$550m2 Plus, we think an additional 10,000 teams will push up into this market over time Data monetisation (commenced) AMS Analytics add-o
Slide 10: Large prosumer addressable market identified in soccer
OUR OPPORTUNITY LARGE PROSUMER For personal use only Our initial prosumer target Expansion prosumer customer personas ADDRESSABLE MARKE T persona IDENTIFIED IN SOC C E R There is a large, unaddressed market for wearable devices focused on team-based sports across multiple sports and multiple geograp
Slide 11: Key growth drivers
For personal use only SECTION 2 KEY GROWTH DRIVERS
Slide 12: Key growth drivers
KEY GROWTH DRIVERS For personal use only 1.GROW 2 . LW D s & 3.PROSUMER 4.INVEST 5 . O R G A N I S AT I O N A L ELITE D ATA LAUNCH IN GROWTH EXCELLENCE League wide deals signed in Major product Low penetration (16%) Acquired AMS1 in August 2017: Key hires: H1 FY18: enhancements across Hi
Slide 13: Solid group revenue growth driven by elite wearables
1. GROW ELITE SOLID GROUP REVENUE GROWTH For personal use only DRIVEN BY EL IT E WEARABLES GROUP H1 PRO-FORMA REVENUE PRO-FORMA REGIONAL REVENUE BREAKDOWN Elite Wearable Revenue 95% CAGR XOS Revenue 32 32 XOS Pro-Forma Revenue 1 New Products Revenue 28 28 4 17 71% A$m A$m 14 80% 7 14 4 18% 11 2 10%
Slide 14: Global elite dominance
1. GROW ELITE GLOBAL ELITE For personal use only UK’s Rugby Football League League-wide deal DOMINANCE 1,638+ Fimleikafélag Hafnarfjarðar ELITE CLIENTS ACROSS Catapult’s first Kawasaki Frontale SV Werder Breman Current J-League (Japan) Icelandic client WEARABLES, VIDEO AND AMS 4-time Bundesliga (Soc
Slide 15: Strong elite wearable growth supported by attractive customer economics
1.GROW ELITE STRONG ELITE WEARABLE GROWTH For personal use only SUPPORTED BY ATTRACTIVE CUSTOMER ECONOMICS ELITE WEARABLE SUBSCRIPTION BASE ELITE WEARABLES ARR (A$m) 15,763 H1 FY18 Churn1: 64% CAGR2 4.7% on a team basis 8.4% on a unit basis LTV / CAC1 7x 20.9 17.0 9.4 4.7 H1 FY14 H1 FY15 H1 FY16 H1
Slide 16: Elite video: performance meeting expectations
1.GROW ELITE ELITE VIDEO For personal use only PERFORMANCE MEETING EXPECTATIONS DURING KEY DEVELOPMENT PHASE XOS PRO-FORMA REVENUE (US$m) H1 FY17 – H1 FY18 0.1 Tactical 13.4 13.2 Internationalisation analytics -0.3 -0.1 product US$m 1 2 XOS H1 FY17 Coaching Content Hardware XOS H1 FY18 Revenue Solut
Slide 17: League-wide deals and data commercialisation
2.LEAGUE-WIDE DEALS AND DATA COMMERCIALISATION TWO NEW LEAGUE-WIDE … A N D F O U R N E W D ATA For personal use only DEALS… C O M M E R C I A L I S AT I O N S UK’s Rugby Football League AFL Women’s League 12/12 teams + England Live broadcast data. 5th Ashes Test Data for AFL Live Official App. Round
Slide 18: Strong momentum ahead of prosumer launch
3.PROSUMER LAUNCH STRONG MOMENTUM AHEAD OF PROSUMER For personal use only LAUNCH H1 FY18 PLAYERTEK SALES ALREADY 1.4x FY17 SALES • We’re on track to launch our new prosumer product in Q4 FY18 37% 5,334 3,903 * Brand new pod (40% smaller) and charging dock Brand new app with SmartCoach insights
Slide 19: Investing in product
4.INVESTING IN GROWTH INVESTING IN PRODUC T For personal use only GROUP R&D EXPENDITURE % group • Expenditure skewed toward product development and growth initiatives revenue A$m • Significant R&D and product investment focused on the following medium term objectives: 4.0 20% 3.7 i. extending value
Slide 20: Tactical analytics in development
4. INVESTING IN GROWTH ADVANCED TACTICAL SEARCH DATA VISUALISATIONS TA C T I C A L For personal use only Enhance video analysis with data driven Researching real time AR combining ClearSky search tools with video A N A LY T I C S Growing our data science and machine Data driven telestration
Slide 21: AMS acquired and integrated
4. INVESTING IN GROWTH AMS ACQUIRED AND For personal use only I N T E G R AT E D Seamless transition of clients and staff On-pitch data Off-pitch data Rebrand to AMS by Catapult Established API for Catapult Cloud Medical Now available in nine languages Elite wearables Established regional
Slide 22: Investment in people a key focus
5. ORGANISATIONAL EXCELLENCE INVESTMENT IN PEOPLE For personal use only A KEY FOCUS Appointment of Joe Powell – Chief Executive Officer Appointment of Mark Hall – Chief Financial JOE POWELL MARK HALL MARKUS ZIEMER Officer General Counsel & Company Corporate Leadership CEO, Catapult CFO and Gover
Slide 23: Catapult confirms FY18 guidance
FY18 GUIDANCE C ATA P U LT C O N F I R M S F Y 1 8 For personal use only GROUP REVENUE BY HALF (A$m) GUI DANCE Guidance range 81 76 • $76m-$81m group revenue representing 17%-25% growth on FY17 pro-forma 61 revenue 57%* • Underpinned by strong growth in elite wearables with subscription mix expected
Slide 24: Looking ahead
LOOKING AHEAD For personal use only Catapult has undergone a transformational 12 months through targeted M&A and continued strong organic growth of our market leading products. This has strengthened our global position and presence and we are uniquely positioned to unlock significant growth opportun
Slide 25: Transaction summary
For personal use only SECTION 3 TRANSACTION SUMMARY
Slide 26: Capital raising details
TRANSACTION SUMMARY C A P I TA L R A I S I N G D E TA I L S For personal use only Catapult is undertaking a ~A$25m equity raising to further unlock the significant growth opportunities in the addressable Elite and Prosumer markets, to deliver long-term growth to its shareholders. Fully underwritten
Slide 27: Use of funds
TRANSACTION SUMMARY USE OF FUNDS For personal use only • Catapult will allocate funding across key business units following the work completed on addressable markets, customer economics, customer product needs and long-term budget Use of Funds $m requirements: Elite sales & marketing $9.0m o Elite S
Slide 28: Offer timetable
TRANSACTION SUMMARY O F F E R T I M E TA B L E For personal use only Placement Trading halt and placement conducted Monday, 26 March 2018 Placement completion announcement lodged with ASX Tuesday, 27 March 2018 Catapult recommences trading Tuesday, 27 March 2018 Placement settlement Thursday, 29 Mar
Slide 29: Definitions
DEFINITIONS DEFINITIONS For personal use only Annual Recurring Revenue (ARR) Value of the Group’s recurring subscription revenue normalised for a calendar year. Customer Acquisition Cost (CAC) Sales, marketing and lead referral fees per unit Lifetime Value (LTV) Subscription contribution margin (ARP
Slide 30: Appendices
For personal use only APPENDICES
Slide 31: Risks
For personal use only a. RISKS
Slide 32: General risks
RISKS GENERAL RISKS For personal use only This section describes some, but not all, of the key risks associated with an investment in Catapult shares. These risks may affect the future operating and financial performance of Catapult and the value of Catapult shares. Before deciding whether to invest
Slide 33: General risks (cont'd)
RISKS G E N E R A L R I S K S ( c o n t ’d ) For personal use only Failure to protect intellectual property rights Catapult's success depends, in part, on its ability to obtain, maintain and protect its intellectual property, including its patents. Actions taken by Catapult to protect its intellectu
Slide 34: General risks (cont'd)
RISKS G E N E R A L R I S K S ( c o n t ’d ) For personal use only Recruitment and retention of key personnel risk The successful operation of Catapult's business relies on an ability to attract and retain experienced personnel and for those personnel to continue to successfully innovate and develop
Slide 35: General risks (cont'd)
RISKS G E N E R A L R I S K S ( c o n t ’d ) For personal use only North America and Europe There is no guarantee that Catapult will be able to retain or continue to grow its business in North America or Europe. Additional requirements for capital Catapult's capital requirements depend on numerous f
Slide 36: General risks (cont'd)
RISKS G E N E R A L R I S K S ( c o n t ’d ) For personal use only Absence of dividends The Board of Catapult has yet to establish a dividend policy, and does not expect to pay dividends in the near term. Catapult is not currently forecasting to make a profit and, while it continues to expand its bu
Slide 37: Key share and offer risks
RISKS KEY SHARE AND OFFER RISKS For personal use only Risks associated with an investment in shares There are general risks associated with investments in equity capital. The trading price of Catapult shares may fluctuate with movements in equity capital markets in Australia and internationally. Thi
Slide 38: Selling jurisdictions
For personal use only b. SELLING JURISDICTIONS
Slide 39: Selling jurisdictions
SELLING JURISDICTIONS SELLING JURISDICTIONS For personal use only Hong Kong This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the laws of Hong Kong) (the Companies (MISC) Ordinance), nor has it
Slide 40: Selling jurisdictions (cont'd)
SELLING JURISDICTIONS S E L L I N G J U R I S D I C T I O N S ( c o n t ’d ) For personal use only New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (FMCA). The New Shares may only be offered
Slide 41: Selling jurisdictions (cont'd)
SELLING JURISDICTIONS S E L L I N G J U R I S D I C T I O N S ( c o n t ’d ) For personal use only Singapore This document has not been and will not be registered as a prospectus with the Monetary Authority of Singapore (MAS) and the New Shares are offered by Catapult pursuant to exemptions invoked
Slide 42: Selling jurisdictions (cont'd)
SELLING JURISDICTIONS S E L L I N G J U R I S D I C T I O N S ( c o n t ’d ) For personal use only United Kingdom This document does not constitute a prospectus for the purpose of the prospectus rules issued by the Financial Conduct Authority (FCA) pursuant to section 84 of the Financial Services an
Slide 43: Play smart. Defy limits.
For personal use only PLAY SMART. DEFY LIMITS C ATA P U LT S P O R T S . C O M
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