Etherstack Plc · ASX:ESK
Etherstack — Rapid Insights Investor Conference (November 2021)
31 slides from Etherstack's conference presentation, Nov 24, 2021
Slide 1: Corporate Presentation
For personal use only Corporate Presentation Etherstack plc (ASX:ESK) 25th November 2021 Authorised for release by David Deacon, CEO and David Carter, CFO
Slide 2: Company Overview
For personal use only Company Overview
Slide 3: A leading licensor of innovative wireless technology for mission-critical communications
A leading licensor of innovative wireless technology for mission-critical communications For personal use only Etherstack enables push-to-talk (PTT) communications for essential services, within and across advanced digital land mobile radio (LMR), cellular and satellite networks Globally diversified
Slide 4: Key Developments Timeline
Key Developments Timeline For personal use only January – June July – December January – June July – November 2020 2020 2021 2021 24 January 20 October 11 February 22 July Ergon Energy Network Expansion Licensing agreement with TPL EOS Defence Systems subcontract First contract under Samsung Order (
Slide 5: Leveraging innovative technology and IP adaptable across key platforms and customers
Leveraging innovative technology and IP that is adaptable across key platforms and customers Continued growth in LMR networks. Cellular networks adding material value now and into the future. Satellite networks likely to deliver For personal use only subsequent and future value PTT Technology Missio
Slide 6: Digital Land Mobile Radio (LMR) Networks
For personal use only Digital Land Mobile Radio (LMR) Networks
Slide 7: Digital LMR Networks: US$3.0b market opportunity
Digital LMR Networks A significant US$3.0b market opportunity exists for growth in target contracts For personal use only Developed a full suite of LMR core technologies for voice communications Scores of target sized contracts Etherstack target Etherstack target available for competition network co
Slide 8: Extensive experience delivering software based digital LMR networks
Digital LMR Networks Extensive experience delivering software based digital LMR networks For personal use only Enables rapid and reliable communication across networks including public safety, utilities, resources and transportation industries ▪ Networks are mission critical infrastructure - used A
Slide 9: Sustained growth via key customer wins
Digital LMR Networks Sustained growth via key customer wins For personal use only Currently targeting network contracts valued between US$0.5 – 20.0m in upfront revenues 2021 January – June July –2022 December 2023 January – June July –2024 December 2025 January – June 2020 2020 2021 2021 2022F Ethe
Slide 10: Cellular Networks (4G & 5G)
For personal use only Cellular Networks (4G & 5G ) (Mission Critical Push to Talk (MCPTX) over LTE)
Slide 11: Cellular networks: a large and growing market opportunity
Cellular networks (4G & 5G) A large and growing US$250 – 750m market opportunity Leveraging existing technologies to exploit significant opportunity in the immediate to medium-term For personal use only Contracts available for Upfront licensing Long term recurring competition fee potential revenue s
Slide 12: Evolving public safety communications – hybrid networks
Cellular networks (4G & 5G) Evolving public safety communications – hybrid networks For personal use only Etherstack’s software enables interoperability between traditional digital radio networks and New wireless technologies (wifi, 4G & 5G) is new 4G & 5G networks for public safety communications t
Slide 13: Global Teaming Agreement with Samsung delivers Etherstack's technology
Cellular networks (4G & 5G) A Global Teaming Agreement with Samsung delivers Etherstack’s technology to customers globally For personal use only To supply software solutions and ongoing support services to Samsung’s global telco carrier clients as part of Samsung’s 5G network roll-out Samsung Global
Slide 14: 5G expected to drive demand for MCPTX over LTE technology
Cellular networks (4G & 5G) 5G expected to drive demand for MCPTX over LTE technology For personal use only Global rollout of 5G networks is expected to drive demand for Etherstack MCPTX over LTE National carriers are expected to provide technology in coming years guaranteed public safety communicat
Slide 15: Samsung global teaming agreement drives additional growth
Cellular networks (4G & 5G) Samsung global teaming agreement drives additional growth Targeting more than 25 contract wins over the medium term For personal use only 2021 2022 2023 2024 2025 1 to 2 2 to 4 4 to 6 6+ 6+ New contracts New contracts New contracts New contract New contracts Samsung’s cli
Slide 16: Satellite Networks
For personal use only Satellite Networks
Slide 17: Well positioned to capitalise on low cost satellite technology opportunities
Satellite Networks Well positioned to capitalise on low cost satellite technology opportunities For personal use only Etherstack is ready to capitalise on emerging wireless communications opportunities made Falling satellite tariff costs the catalyst for available by new low cost satellite technolog
Slide 18: Financials
For personal use only Financials
Slide 19: Financial Highlights
Financial Highlights For personal use only Etherstack Revenue $8.4m - $8.6m Profitable and operating cash positive ▪ 2021 full year EBITDA US$2.5 million ▪ 2021 full year profit after tax USD $1.3m $4.1m - $4.3m guidance ▪ Operating cash positive for last 3 years $4.8m $4.7m Revenue is growing $2.3m
Slide 20: Sustained momentum in recurring revenue growth
Sustained momentum in recurring revenue growth For personal use only Recurring revenue has been steadily growing year on year with an increase in support contracts – high gross margin SaaS-like revenues REVENUE (US$M) REVENUE COMPOSITION 5.9 5.5 5.3 4.8 4.7 43% 50% 4.1 64% 61% 2.4 69% 71% 81% 4.8 3.
Slide 21: Increasing support contracts drives recurring revenue growth
Increasing support contracts drives recurring revenue growth 100% For personal use only Current customer retention Recurring revenues predominantly driven by support contracts in rate addition to royalty revenues NUMBER OF SUPPORT CONTRACTS 14 ~10 – 15 years 13 Lifetime duration of support contracts
Slide 22: Income Statement
Income Statement For personal use only US$'000 2017 2018 2019 2020 EBITDA positive operations supported by steadily growing recurring revenues Revenue from Contract with Customers 4,142 5,264 4,792 4,699 Recurring Revenue 1,508 1,682 1,838 2,331 Project and Product Revenues 2,634 3,582 2,954 2,368 E
Slide 23: Balance Sheet & Cash Flow Statement
Balance Sheet & Cash Flow Statement Balance Sheet Cash Flow Statement For personal use only US$'000 31-Dec-19 31-Dec-20 US$'000 2019 2020 Cash and cash equivalents 931 4,180 Net cash generated from operating activities 1,364 1,733 Trade and other receivables 1,870 1,410 Other current assets 247 446
Slide 24: Future Milestones
For personal use only Future Milestones
Slide 25: Strong outlook driven by focus on key strategic initiatives
Strong outlook driven by focus on key strategic initiatives For personal use only Expansion of existing Commencement Australian & of upgrades to virtualised International public switching solutions safety networks across installed base Cellular Networks LMR Networks Defence Upgrades Satellite networ
Slide 26: Appendix
For personal use only Appendix
Slide 27: Customer case studies
For personal use only Customer case studies Royal Canadian Mounted Police Western Australia Iron Ore Network The Royal Canadian Mounted Police (RCMP) are the federal and national Januarycommunication Large resources projects require “government grade” – June 2022F systems for operations and safety i
Slide 28: First Global Teaming Agreement Carrier Contract
First Global Teaming Agreement Carrier Contract For personal use only ▪ Etherstack has signed a long term supply contract with Samsung Electronics Co. Ltd, to provide Etherstack software solutions and ongoing support services to Samsung for a telecommunications carrier client of theirs as part of it
Slide 29: First Global Teaming Agreement Carrier Contract (cont…)
First Global Teaming Agreement Carrier Contract (cont…) For personal use only ▪ Total revenues for Etherstack comprising licence fees, project deployment revenues and support revenues are US$8.5 million, which includes US$1.2 million revenue previously announced on 18th February 2021 Key Terms of ▪
Slide 30: Glossary
Glossary For personal use only LTE – Long-Term A standard for wireless broadband communication for mobile devices and data terminals, increasing the capacity and speed using a different Evolution radio interface together with core network improvements MCPTX - Mission Critical Push A push-to-talk pro
Slide 31: Questions
For personal use only Questions Etherstack plc David Deacon, CEO 93A Shepherd Street, david.deacon@etherstack.com Chippendale NSW 2008 David Carter, CFO Phone +61 2 8399 7500 david.carter@etherstack.com Martin Duff, Corporate & Legal martin.duff@etherstack.com
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