Dti Group Ltd · ASX:DTI
Dti — Investor Presentation (February 2019)
27 slides from Dti's investor presentation, Feb 25, 2019
Slide 1: DTI Group Ltd 2019 Interim Results Presentation
DTI GROUP LTD 2019 Interim Results Presentation 26 February 2019 DTI GROUP LTD 2017 Interim Results Presentation [_] February 2017 PETER TAZEWELL Chief Executive Officer 1
Slide 2: Overview – H1 FY19
Overview – H1 FY19 • Revenue of $13.8 million, 68 per cent increase on FY18 Financial • Positive EBITDA of $0.3 million reflects improved product margins, benefit of cost reductions and positive R&D claim adjustment • $3.0 million negative cash flow from Operations due to increased working capital s
Slide 3: Highlights
Highlights • Record revenue performance and positive EBITDA • Maintained strong Contracted Order Book1 to support revenue • Maintained scheduled deliveries to critical projects (Sydney Metro, DART [Dallas], SFMTA [San Francisco]) • Secured new maintenance contract for Broward County (Florida, USA) •
Slide 4: H1 FY19 Financial Results
H1 FY19 FINANCIAL RESULTS IS. REOTI
Slide 5: Key Financial Metrics
Key Financial Metrics H1 FY19 H1 FY18 • Significant revenue Revenue $m 13.8 8.2 increase from pcp EBITDA $m 0.3 (6.0) • Positive EBITDA Underlying EBITDA $m 0.05 (3.3) • Improved Gross Margin Net profit/(loss) after tax $m (0.23) (5.3) • Nil term debt Earnings per share ¢ (0.001) (4.28) • Net trade
Slide 6: Balance sheet
Balance sheet $m H1 FY19 FY18 Cash 1.2 5.1 • Increased working capital Trade receivables 7.8 6.0 requirement driven by Other receivables 1.6 1.4 rail projects and Inventory 7.3 8.0 increased revenue Property, plant & equip 0.8 1.1 Intangible assets 1.1 0.3 • Negligible bank debt Other assets 0.4 0.1
Slide 7: Revenue
Revenue $m Revenue Split $m Revenue Growth 20 10 8 15 6 10 4 5 2 0 0 FY16 FY17 FY18 FY19 Maintenance Recurring Project H1 H2 H1 FY18 H1 FY19 • Strong revenue increase from pcp • Continued increase in Maintenance • Weighting to H2 will be less and Project revenues pronounced • Decline in Recurring re
Slide 8: Gross Margin
Gross Margin $m Revenue and Gross Margin 14 52.0% 12 42.0% 10 32.0% 8 22.0% 6 12.0% 4 2 2.0% 0 -8.0% H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 Revenue Gross Margin • Gross margin steadily improving over past three reporting periods • Attributed to increased focus on product margin, reduced overhead co
Slide 9: Technology and R&D Spend
Technology and R&D Spend • DTI has invested in R&D to create industry-leading product solutions for the global mass transit market • R&D cycle peaked in FY17 with the development of new products to meet the standards of the rail sector • R&D normalised at ~$2 million per annum Recurring R&D Marketin
Slide 10: Cash flow from Operations
Cash flow from Operations $'000s 315 (2,975) (3,971) 0 (2,000) (4,000) 10
Slide 11: Business Overview
BUSINESS OVERVIEW IS. REOTI
Slide 12: What we do . . .
What we do . . . • DTI designs, develops and installs world-leading surveillance, video analytics, and passenger information systems technology and services to the global mass transit industry • Utilising proprietary software with leading edge hardware (hybrid-recorders, commuter communications syst
Slide 13: Company Snapshot
Company Snapshot Share Price Corporate Details $0.25 6000 ASX Code DTI 5000 $0.20 Closing Share Price Volume (000s) 4000 (20 February 2019) $0.04 Share Price $0.15 3000 $0.10 Market Capitalisation $8.6 million 2000 $0.05 1000 Issued Shares 215,341,850 $0.00 0 Major Shareholders Board and Management
Slide 14: DTI's Business Model
DTI’s Business Model Opportunity for exponential growth driven by on-ground contracted positioning and recurring revenue Solution Business Recurring Development Development Prospects Contracts Revenue (R&D) & Marketing Maintain market- Product Grow prospects Prospects converted Ongoing orders from l
Slide 15: Key Drivers
Key Drivers R&D Ongoing R&D investment critical to development of new products and Investment application of new technologies Relationship Strengthen relationships with OEMs to allow DTI to participate in the design with OEMs and implementation phase of project tenders Increased awareness of public
Slide 16: Operational Update
Operational Update Americas EMEA Australasia • Sales of $6.2 million, up • Sales of $1.5 million, up • Sales of $6.1 million, up 126% from $2.8 million in 54.1% from $1.0 million 36% from $4.5 million in prior period in prior period prior period • Key transit operators, • Strong interest in DTI • St
Slide 17: Key Customers
Key Customers OEMs Municipal Authorities Transit Operators Integrators 17
Slide 18: Order Book and Pipeline
ORDER BOOK AND PIPELINE IS. REOTI
Slide 19: Order Book
Order Book $m 50 40 30 20 10 0 Bus Rail Preferred • Order Book support FY19 revenue. Future revenue supported by multi year contracts • Strong growth in rail sector with strong interest in DTI PIS systems • Expected $38 million in new orders expected to be awarded over next six months 19
Slide 20: Opportunity Pipeline
Opportunity Pipeline • Significant identified long term 19.8% 22.8% pipeline in excess of $370 million • Geographic segmentation remains similar with EMEA presenting 57.3% strongest opportunities • Market continues to be dominated by Australasia EMEA Americas rail which generally has higher 2.5% spe
Slide 21: Addressable Market
Addressable Market • DTI’s addressable market comprises: – Mobile surveillance systems, consisting of recorders, cameras and ancillary equipment; and – Passenger Information Systems, consisting of displays, audio communications and entertainment systems • Mobile Surveillance market is forecast at US
Slide 22: Strategy and Outlook
STRATEGY AND OUTLOOK lox, AXOTI
Slide 23: Strategies Short-term
Strategies Short-term Grow Revenue Base Production Cost Efficiencies Cost Down Strategy Overhead Reduction • Strong increase in • Product design • Review supply • Tight control of revenue compared finished leading to chain to reduce costs and working to FY18 stable production component costs capital
Slide 24: Strategies Medium and Long-term
Strategies Medium and Long-term Medium-term Long-term • Demonstrate profitability • Continue to leverage R&D investment in new market-leading • Ongoing monetisation of past R&D technology platform investment • Develop DTI hardware as platform • Target continued increased in for multiple technology a
Slide 25: Outlook
Outlook • Strong contracted order book1 of $37.7 million - $4.4 million added since 30 June 2018 • Identified Opportunity Pipeline of $375 million with $38 million to be awarded within six months • Near term completion of major projects – DART, Northern Line. Commencing significant multi-year contra
Slide 26: Disclaimer
Disclaimer Reliance on third party information The information and views expressed in this presentation were prepared by DTI Group Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified. No representation or warra
Slide 27: Contact Details
Contact Details PETER TAZEWELL Chief Executive Officer T: +61 8 9373 2905, 113 E: peter.tazewell@dti.com.au 27