Cyanconnode Holdings Plc · LSE:CYAN
Cyanconnode — H1 2020 Earnings Presentation
22 slides from Cyanconnode's earnings presentation, September 2020
Slide 1: Interim Results September 2020
INTERIM RESULTS l SEPTEMBER 2020 Presented by John Cronin, Executive Chairman & Heather Peacock, Group CFO A WORLD LEADER IN NARROWBAND RADIO FREQUENCY (RF) SMART MESH NETWORKS © CyanConnode 2019 1
Slide 2: H1 2020 Highlights
H1 2020 Highlights Increased revenue • Revenue increases by 48% to £1.499m Continued cost controls • Reduction in operating costs by 32% to £2.5m Significantly increased order • Order for 350,000 modules backlog • Deployment of 430,000 module order resumes • Commencement of rollout of Thailand proje
Slide 3: H1 2020 Business Update
H1 2020 Business Update • India • First two months of the period affected by Covid • Thereafter resumption of large contract won in 2018 (430,000 units) • Commencement of rollout of order for 142,000 units won in January 2020 • First revenue taken during the period for the 350,000 unit order won in
Slide 4: H1 2020 Financials
H1 2020 Financials © CyanConnode 2020 4
Slide 5: Financial results – P&L
Financial results – P&L 30-Sep-20 30-Jun-19 Consolidated Profit & Loss 6 months 6 months £’000 £’000 Revenue 1,499 1,014 Cost of Sales (668) (537) Gross Profit 831 477 Gross Profit % 55% 47% Other Operating Costs (2,148) (3,386) Amortisation and Depreciation (305) (235) Operating Costs (2,453) (3,62
Slide 6: Financial results – Balance Sheet / Cash Flow Statement
Financial results – Balance Sheet / Cash Flow Statement • Cash • H1 2020 cash outflows from operating activities were £1.8m lower than H1 2019 • H1 2020 cash and equivalents = £1m compared to £2.3m in H1 2019 • Approx £1.6m cash received from customers in H1 2020 vs £2m in H1 2019 • A further c. £0.
Slide 7: Post Period events
Post Period events Further increase in deliveries to customers – the graph below shows deliveries to the date of release of the Interim Results on 14 December 2020 © CyanConnode 2020 7
Slide 8: Post Period Highlights
Post Period Highlights • Revenue for the 8 months to end of November 2020 exceeds Increased revenue growth the 15-month period to March 2020 Continued cost controls • Continued tight controls on overheads • Appointment of new CEO / MD New team in India • Appointment of new COO • Appointment of new S
Slide 9: Post Period events: New Senior Management Team in India
Post Period events New Senior Management Team in India Ajoy Rajani – Managing Director and Chief Executive Officer of CyanConnode India • Highly experienced, well-regarded business leader within the Indian Power Sector • Held various senior positions with Reliance Communications and Reliance Energy
Slide 10: Looking ahead
Looking ahead • Solid foundations to deploy and further prove the technology thereby growing revenues • Large order backlog • Significantly increased volumes being shipped to customers • Further market opportunity in Rest of World • UAE • Nigeria • India – market opportunity • The Indian Government
Slide 11: COVID-19
COVID-19 • Unprecedented event affecting the global economy for almost a year • Health and wellbeing of employees first and foremost to the Company • CyanConnode adapted quickly to a remote working environment across the entire business, in line with Government guidelines • Main impact was as a resu
Slide 12: Summary
Summary • Next twelve months • Continued focus on delivery, revenue and cash collection • Focus on winning further orders to increase order backlog • Sufficient cash for the next 12 months • Further opportunities and focus for growth • New revenue models – SMaaS – per meter per month over 7-10 years
Slide 13: Appendix
Appendix © CyanConnode 2020
Slide 14: About CyanConnode
About CyanConnode • World leader in Narrowband Radio Frequency (RF) ➢ CyanConnode’s platform provides secure M2M communication ➢ Standards-based (IPv6, 6LoWPAN, IEEE 802.15.4g) • Omnimesh Platform incorporates all the elements required to deliver multi-application networks for smart city solutions •
Slide 15: Centre of Excellence
Centre of Excellence • Headquartered in Cambridge, UK, one of the leading technology hotspots in the world, with entities in Sweden and India – European engineering functions have been consolidated to Cambridge, providing operational and financial efficiencies Picture • World class engineering team
Slide 16: Narrowband RF Technology
Narrowband RF Technology CyanConnode’s RF Smart Mesh • Provides a hybrid (IoT) M2M data communication for utility Network technology smart city solutions – Standards-based, IPv6 LoWPAN narrowband RF technology ✓ Highly Reliable with cellular backhaul – Electricity and soon to be gas, water metering
Slide 17: Typical Smart Metering Deployment
Typical Smart Metering Deployment © CyanConnode 2020 17
Slide 18: Market Opportunity
Market Opportunity • CyanConnode’s technology is focused on smart Global meter market (2017) metering – a huge growth opportunity, with fewer than Gas 25% of the world’s 3bn meters currently smart $2.5bn • Global meter market estimated at $12bn in 2017- (21%) expected to grow by 9.34% CAGR to 2022 $
Slide 19: Customers and Partners
Customers and Partners Blue-chip client base and partner eco-system validates technology offering Customers Key customer deployments • Deployed >1m electricity meters and streets lights to date across approximately 20 customers globally UK SMIP • End customer typically an electricity utility with th
Slide 20: Revenue Models
Revenue Models • Perpetual licences for: Perpetual Modules, Gateways and licenses Software – one off payment plus 22% annual SMC • Term licenses for: Module, NEW Opex Term Gateway, Software over X model licenses years, plus 22% annual SMC • Support & maintenance contract: per device once Revenue ins
Slide 21: New Opex Model – realizing the vision of a new world
New Opex Model – realizing the vision of a new world • No upfront investment needed Per meter per month over a period of years (typically 10 years) • Barriers of high initial cost and comparative end use are subsequently overcome • Skills and knowledge transfer to local in-country teams • Local crea
Slide 22: Disclaimer
Disclaimer The information contained in this confidential document (“Presentation”) has been prepared by CyanConnode Holdings Plc (the "Company"). It has not been fully verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authori