Ai-media Technologies Limited · ASX:AIM
Ai-media Technologies — H1 FY22 Earnings Presentation
29 slides from Ai-media Technologies's earnings presentation, Feb 23, 2022
Slide 1: H1 FY22 Results Presentation
H1 FY22 Results Presentation 23 February 2022 Ai-Media Technologies Limited
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation (Presentation) contains summary information about Ai-Media Technologies Limited good faith assumptions as to the financial, market, regulatory and other relevant environments that will and its subsidiaries (the Company or Ai-Media) which is current B
Slide 3: Presenters
Presenters Making the world's content accessible for everyone Ai-Media is a global technology company delivering live and recorded captioning, transcription and translation Tony Abrahams John Bird Chief Executi ve Officer Chief Financi al Office r 3
Slide 4: H1 FY22 Highlights, Financials, Outlook, Q&A
01 H1 FY22 Highlights 02 Financials 03 Outlook 04 Q&A 4
Slide 5: H1 FY22 Highlights
H1 FY22 Highlights | As you can see, the pandemic has shad a significant impact 0 onthe ay chain. 7, ’ =A eS 2 a rok — ——
Slide 6: H1 FY22 Highlights
H1 FY22 Highlights + 29% +98% $15.9m Growth in Lexi / Smart Lexi Revenue Growth on PCP (H1 FY21) Cash balance at 31 December 2021 SaaS minutes on PCP $29.6m Revenue 47 million minutes delivered in Strong cash position to in H1 FY22 up from $22.9m H1 FY22 across all products execute on growth strateg
Slide 7: The Impact of Automatic Captioning (ASR) on Ai-Media
The Impact of Automatic Captioning (ASR) on Ai-Media The rapid adoption of free ASR tools has resulted in lower revenues from Live Enterprise Services; however, it has contributed to higher gross margin, improved EBITDA performance, and a larger Total Addressable Market Widespread Shift to free Low-
Slide 8: Ai-Media's ASR is Proven Top-Quality and Industry-Leading
Ai-Media's ASR is Proven Top-Quality and Industry-Leading Lexi can use Best-in-class AI-modelling Ai-Media's ASR utilises the multiple underlying ASR incorporating Natural gateway iCap delivery platform engines and flexible Language Processing, Deep to deliver the best, most custom dictionaries Lear
Slide 9: Full Product Suite
Full Product Suite Customers can opt for just one or two of AIM’s product offerings – or utilize the iCap gateway network to access all three for a truly seamless one-stop shop solution ENCODE + CAPTIONS DISPLAY Physical devices • HD492, HD1492 • AV650 Inserters • EN537 • 1452 SCTE-104 • CB515 • AV6
Slide 10: Global Sales Wins
Global Sales Wins Looking to accelerate revenue growth and compete effectively in the global market, Ai-Media’s sales teams have had significant wins with great customers in FY22 Deepened strategic customer accounts Existing iCap customers moving to Ai-Media's ASR 3 Global technology companies 2 Par
Slide 11: Exciting Early Customer Transitions to Ai-Media ASR
Exciting Early Customer Transitions to Ai-Media ASR A MARKET IN TRANSITION • On-demand convenience outweighs accuracy concerns for many use cases (e.g. university students and meetings on Zoom and MS Teams) • Short term headwinds from our legacy ACS business (FY22 Live Enterprise Services revenue ex
Slide 12: Case Study One
Case Study One ONE OF THE ’BIG FOUR’ US SPORTS ORGANISATIONS • This international sport has been using iCap-enabled devices for 8 years with an expanding in-house production suite, including full state-of-the-art IP video production which provides accessibility for all viewers • Subsidiary competiti
Slide 13: Case Study Two
Case Study Two LARGE ENTERPRISE UNIVERSAL DESIGN • Customer is a large global technology company with their own free consumer-grade ASR product and is a long-term Ai-Media customer • Wants to secure on-demand accessibility in its corporate meeting rooms with Lexi, to improve comprehension, mainly fo
Slide 14: Case Study Three
Case Study Three LONG TERM US-BASED UNIVERSITY • 2020 Legacy University customer of ACS was paying @US$99/ hour human delivered premium service • 2021 Cost saving and the availability of free ASR saw the university switch to free auto captions on Zoom • 2022 In order to increase the quality of the A
Slide 15: Continued Growth of SaaS Revenue
Continued Growth of SaaS Revenue Growing share of SaaS revenue driven by global rollout of connected Devices and SaaS products Revenue split by category COMMENTS Services SaaS Devices Other • SaaS and Devices revenue share increased by 44% from 18% to 26% compared to H1 FY21 on a pro forma basis inc
Slide 16: iCap Network (market) Growing and Lexi/Smart Lexi Accelerates
iCap Network (market) Growing and Lexi/Smart Lexi Accelerates Volume Growth COMMENTS 30 Services Lexi/Smart Lexi 3rd Party iCap • The transition to SaaS revenue is Minutes Millions accelerating and the network 20 (market) is growing • Lexi/Smart Lexi volume growth 5x 10 the growth in iCap, offsettin
Slide 17: Significant Potential to Increase Lexi volume
Significant Potential to Increase Lexi volume Minutes Delivered Volume COMMENTS 8 Milltion Minutes • Significant opportunity 7 exists to increase 6 penetration of Lexi/Smart Lexi into iCap 5 customer base Lexi Minutes: 4 ~20% of iCap • In Q2 FY22 Lexi is used 3 Volume in Q2 on 20% of iCap minutes, F
Slide 18: Competitive Advantages
Competitive Advantages Ai-Media’s live captioning and translation technology products are fully integrated in a leading and growing proprietary network and ecosystem (iCap) PROPRIETARY TECHNOLOGY SECURITY INTEGRATED SYSTEMS MULTILINGUAL GLOBAL FOOTPRINT ✓ Proprietary ✓ Data protection to ✓ Custom, f
Slide 19: Financials
e ) INg the Competitive environment,
Slide 20: Profit and Loss
Profit and Loss H1 FY22 H1 FY21 Var Var $m $m $m % REVENUE • Revenue growth is driven by EEG revenue for the 6 Total Revenue 29.6 22.9 6.7 29% months to December 2021 (acquired May 2021) Cost of sales (13.9) (14.1) 0.2 2% • Quality of revenue is improving with product mix Gross Profit 15.7 8.8 6.9 7
Slide 21: Balance Sheet
Balance Sheet 31-Dec-21 30-Jun-21 Var $'m $'m $m COMMENTS Cash and cash equivalent 15.9 17.9 (2.0) Trade receivables 11.4 12.2 (0.8) • $15.9m in cash and no company debt Other current assets 3.4 1.8 1.7 Total current assets 30.7 31.8 (1.1) • strong capacity to fund future growth Property, plant and
Slide 22: Cash flow
Cash flow REVENUE • Company achieved positive operating cash flow in H1 FY22 and expects this trend to continue in FY22 and beyond • Cash outflows for the period included EEG acquisition associated costs • Cash outflows from financing activity included share buy back and repayment of debt 22
Slide 23: Strong Growth in All Offshore Markets
Strong Growth in All Offshore Markets H1 FY22 H1 FY21 Var Var COMMENTS $m $m $m % • North America growth driven ANZ 9.5 9.1 0.4 4% by EEG acquisition North America 16.0 10.3 5.7 56% • ROW growth driven by new ROW 4.1 3.5 0.6 16% customer wins in EMEA Total 29.6 22.9 6.7 29% Revenue Geographic Mix %
Slide 24: Strong Growth in Broadcast Space
Strong Growth in Broadcast Space H1 FY22 H1 FY21 Var Var COMMENTS $m $m $m % • Live Broadcast growth off a low Live Broadcast 10.2 3.7 6.5 177% COVID-impacted FY21, and driven Live Enterprise 14.2 13.6 0.6 4% by EEG acquisition and new SaaS Recorded 5.2 5.6 (0.5) (8%) customer wins • Live Enterprise
Slide 25: Outlook
Outlook 25
Slide 26: Guidance for FY22
Guidance for FY22 The Ai-Media Board provides the following guidance for FY22 which takes into account H1 FY22 performance, year-to-date trading in CY2022 and the outlook for the remaining ~4 months of FY22 Forecast FY22 Forecast FY22 Forecast FY22 Revenue of Gross Margin of Positive $60-$62m 53-54%
Slide 27: Increasing Investment in iCap and Lexi / Smart Lexi
Increasing Investment in iCap and Lexi / Smart Lexi PARTNERSHIPS FOR SUCCESS ✓ iCap is Ai-Media’s proprietary gateway network Ai-Media launched its and the industry standard for delivering live Preferred Partner Program captioning throughout North America in collaboration with iCap’s preferred partn
Slide 28: Ai-Media's Roadmap to 2025
Ai-Media’s Roadmap to 2025 Establish iCap gateway Drive growth at network as global standard higher margins Become the go-to live captioning Increase revenue share of provider across the industry and our transformative SaaS around the globe product suite and devices Grow and diversify Enhance produc
Slide 29: Q&A For further information
Q&A For further information Investors Sue Sanossian Company Secretary +61 2 8870 7711 October 2021 investorrelations@ai-media.tv
Ai-Media Technologies — H1 FY22 Earnings Presentation on 6ix