Audinate Group Ltd. · ASX:AD8
Audinate — Shareholder Meeting (October 2023)
26 slides from Audinate's shareholder meeting presentation, Oct 24, 2023
Slide 1: FY23 Annual General Meeting
FY23 Annual General Meeting 24 October 2023 Authorisation: approved by the 1 Board of Audinate Group Limited
Slide 2: Chairman’s Presentation
Chairman’s Presentation 24 October 2023 2023 Annual General Meeting / AUDINATE | 2
Slide 3: A look back at where we’ve been…
A look back at where we’ve been… 2020 Customer orders Phase 1: pushed out Demand-side Factory Government shock Monthly shutdowns interventions revenue cut in half 21 August 2023 2023 Annual General Meeting / AUDINATE | 3
Slide 4: But that wasn’t all…
But that wasn’t all… 2021 - 2022 Chip shortages Many OEMs Phase 2: Forced forced to Supply-side Higher prices redesign of take similar shock Brooklyn II Pushed out or actions cancelled delivery dates 24 October 2023 2023 Annual General Meeting / AUDINATE | 4
Slide 5: Light at the end of the tunnel…
Light at the end of the tunnel… Highlights from FY23 US$ Revenue Net profit of up 40% YoY A$10.6M (including EBITDA recognition of up 156% $7.7m of tax $11M losses) to 24 October 2023 2023 Annual General Meeting / AUDINATE | 5
Slide 6: Meaningful product highlights as well…
Meaningful product highlights as well… Dante 34 OEM 48 video Cambridge UK Launch of AV-H and brands products and Silex first cloud AV-A signed up launched Brussels teams product released for Dante delivering video Dante video expertise Connect 24 October 2023 2023 Annual General Meeting / AUDINATE |
Slide 7: And a great start to the current year…
And a great start to the current year… Successful completion of capital raise $50M $20M private SPP placement Will help in accelerating our strategic goals in video and software 24 October 2023 2023 Annual General Meeting / AUDINATE | 7
Slide 8: CEO’s Presentation
CEO’s Presentation 24 October 2023 2023 Annual General Meeting / AUDINATE | 8
Slide 9: World-leading technology supplier to Pro-AV
World-leading technology supplier to Pro-AV Audinate is the company behind the Dante® media networking solution used in the professional AV industry Poland USA UK Belgium Japan 3,853 Dante-enabled 13 Mexico France Germany China Hong Kong Locations products Philippines Brazil 575 Total OEMs >220k bra
Slide 10: World-leading technology supplier to Pro-AV
World-leading technology supplier to Pro-AV Dante is in millions of devices and can be found in a diverse range of installations and applications across industries, including: Universities Conference Broadcast Corporate Houses of Arenas and Rooms Studios Campuses Worship Stadiums Recording Conferenc
Slide 11: Dante Product Map
Dante Product Map System Software (For system setup, management and troubleshooting) Dante Dante Domain Dante Audio Visual Controller Manager Director Integrators, Professionals & Consumers AVIO Network Adaptors PC/Mac/Cloud Software • Analogue • USB / Bluetooth • Dante Studio (AV) • Dante Virtual S
Slide 12: Leading Global Supplier of AV Networking
Leading Global Supplier of AV Networking Total audio products per protocol 400 4000 3,853 US$2bn OEM brands Total addressable shipping Dante 3500 market(1) enabled products 3000 2500 3,853 12x Dante enabled Market adoption 2000 products available of Closest on the market competitor 1500 1000 >220,00
Slide 13: Gross profit growth accelerates
Gross profit growth accelerates Variance US$M Gross Profit Other Key Financial Metrics vs FY22 US$35M CAGR % 33.4 130% A$69.7M Revenue 50.6% 2yr - 32% 5yr - 24% US$30M 120% US$46.7M US$ Revenue 40.0% 24.9 US$25M 110% 72.1% Gross Margin % (2.7%) - 19.2 US$20M 100% 15.0 15.6 US$15M 90% A$11.0M EBITDA
Slide 14: Profitability evident in scalable cost base
Profitability evident in scalable cost base Ongoing focus on innovation and R&D to maximise Operating leverage in the cost base is once again future growth opportunities evident as additional gross profit drives profitabilty Research and Development (A$M) Revenue, cost trends (A$M) 32% 69.7 80% 30%
Slide 15: Success in Dante Video
Success in Dante Video During FY23 all video objectives were achieved Dante AV-H released (uses H.264 codec) Dante AV-A launched and released (uses ASPEED codec) Dante Studio software released for AV professionals Video support added to Dante Domain Manager 26 design wins for Dante video products 34
Slide 16: Total Addressable Market
Total Addressable Market (TAM) 24 October 2023 2023 Annual General Meeting / AUDINATE | 16
Slide 17: New TAM better reflects Audinate’s market opportunity
New TAM better reflects Audinate’s market opportunity What is TAM? Rationale for update Approach Quantifies the potential revenue Elements of existing TAM date back Omdia were engaged due to their AV opportunity for a product or service to the IPO expertise. They are also the research house within a
Slide 18: Networked AV market opportunity is USD $2 billion
Networked AV market opportunity is USD $2 billion Audinate Updated TAM* USD $2bn* Audio share of Audio Market Audio Networking estimated at 9% Revenue opportunity for addressable audio $330m products including speakers, microphones, amplifiers, mixing consoles and signal processors Additional revenu
Slide 19: Implications
Implications Confirmed expectation opportunity greater than previously calculated New data provides additional conviction on existing strategy Forward estimates point to strong industry growth greater than long-term historical average Long runway for growth remains across all segments Valuable data
Slide 20: Capital Raise
Capital Raise 24 October 2023 2023 Annual General Meeting / AUDINATE | 20
Slide 21: Capital to accelerate growth strategy
Capital to accelerate growth strategy Continued strategic investment Deliver new and innovative products related to Dante audio installations, e.g. − IoT-style device management services (like Dante Director) Audinate M&A assessment framework − Software based signal processing solutions (like Dant
Slide 22: Outlook & Priorities
OUTLOOK & PRIORITIES 24 October 2023 2023 Annual General Meeting / AUDINATE | 22
Slide 23: Continuing growth FY24 Priorities
Continuing growth FY24 Priorities 1 2 3 4 5 Double the Release video ecosystem additional video Success with Improve Improve >30k video units and cloud Dante Connect scalability of profitability and in-field or products cloud offering cost base cashflow shipped 24 October 2023 2023 Annual General Me
Slide 24: FY24 Outlook
Global AV Industry Size FY24 Outlook 2022 2028 Easing of supply chain challenges means a return to business as usual US$285 US$402 BILLION BILLION Backlog at near-record levels provides good revenue visibility 2023 Global macro-economic uncertainty US$307 BILLION M&A opportunities surfacing to accel
Slide 25: Thank You
THANK YOU 24 October 2023 2023 Annual General Meeting / AUDINATE | 25
Slide 26: Important notice and disclaimer
Important notice and disclaimer Disclaimer Past performance Market share information To the maximum extent permitted by law, none of the Past performance information, including past share price All market share information in this presentation is based on Audinate Group Limited or its subsidiaries o