Slide 1: FY19 Results Presentation
FY19 Results Presentation 23 August 2019 Lee Ellison – Chief Executive Officer Aidan Williams – Co-founder & Chief Technology Officer Rob Goss – Chief Financial Officer
Slide 2: Contents
Contents 1 Highlights and Achievements 2 Financial Performance and Metrics 3 New Products and Applications 4 Outlook 5 Appendices 2 FY19 Results Presentation 2
Slide 3: FY19 Highlights
FY19 Highlights Financial 34% A$2.8m A$3.6m A$24.0m Growth in revenue to US$20.3m EBITDA increased Operating cashflow increased Capital raised (A$28.3m / 44% Growth) from A$0.6m from A$1.0m via placement & SPP Operational 29% 2,134 22% Video & Software Growth in Dante units* Dante-enabled products I
Slide 4: Delivered against FY19 objectives
Delivered against FY19 objectives Objective Outcome Revenue growth consistent with historical USD performance • 34% USD revenue growth exceeded historical performance • Sales offices opened in Germany, Japan & China Geographically expand sales and support teams • Additional sales resources added in
Slide 5: Record of achievement and growing revenue
Record of achievement and growing revenue 20.3 15.2 11.3 8.7 6.7 USD $’m 2015 2016 2017 2018 2019 Audinate IPO New Sydney Office Dante integrated in Dante Via Dante over 500 products launched Audinate integrated in $24m capital expands to over 2,000 raise Hong Kong Germany products Broadway Dante IP
Slide 6: Driving growth & the network effect
Driving growth & the network effect Increase market Increase number of Dante Increase the number of awareness of Dante products per OEM OEMs adopting Dante Over 60,000 Over 2,100 270 Dante trained and certified Dante-enabled products OEM customers shipping professionals globally available on the mar
Slide 7: Competitive landscape – Networked Audio Products
Competitive landscape – Networked Audio Products Total audio products per protocol(1) 2500 2,134 2000 2,134 Dante Dante has 6x Number of Products Enabled 1500 the adoption versus closest Products competitor 1000 Note: Competitive product numbers 500 have not been Audinate is the clear global market
Slide 8: Financial Performance and Metrics
Financial Performance and Metrics 8 FY19 Results Presentation
Slide 9: Strong year on year growth in revenue and units shipped
Strong year on year growth in revenue and units shipped Revenue CAGR of 27.6% (5 yrs) at 74-75% GP margin CCM revenue driven by Brooklyn (32 & 64: 28% growth) and AVIO adapter sales Chips, cards & modules (‘CCM’) includes AVIO adapters Continued growth in established customers: Software in
Slide 10: Expansion delivering strong sales revenue growth
Expansion delivering strong sales revenue growth • Strong 44% AUD revenue growth (including (AU$’000s) FY19 FY18 Change FX benefit) Revenue 28,313 19,653 44% • Gross profit margin % reverted to historical Gross profit 21,063 14,642 44% levels in 2H19 Gross margin % 74.4% 74.5% (0.1%) • Employee expe
Slide 11: Continued investment in R&D
Continued investment in R&D • Growth in gross margin is used to fund new product initiatives • Ongoing focus on R&D spend, as innovation is core to the business • Capex % up in FY19 due to focus on video, including $0.8m of direct external costs Revenue & Cost trends (AU$) Research & Development (AU
Slide 12: Cash-flow statement
Cash-flow statement • Operating cash receipts & payments are (AU$’000s) FY19 FY18 consistent with the income statement and Receipts from customers 27,747 19,679 movements in working capital Payments to suppliers and employees (25,510) (19,165) Interest received 205 251 • R&D incentive is treated as
Slide 13: New Products & Applications
New Products & Applications 13 FY19 Results Presentation
Slide 14: Recent product releases
Recent product releases Dante AV Software Adaptors Software Dante AV • Dante AV Module • Dante AV Product Design Suite Software • Dante Embedded Platform for Linux-based AV devices Dante AVIO adapters - • Dante Application Library for family contains six PC/Mac Applications models released in • New
Slide 15: Dante AV – Audio and Video
Dante AV – Audio and Video Wall plate – laptop input Key FY20 goals: Dante AV Module* Dante AV Module • Drive design wins to generate FY21 • “AV-over-IP” networking module, OEM business model & beyond revenue pipeline • V+A+Network (1 video + 8 audio) • Broaden product offerings • Commercial launch
Slide 16: New Software Products
New Software Products Dante Application Library (DAL) Ceiling Microphone • Dante for PC/Mac applications Dante IP Core (today) / • Simple way for software developers Software products enable: Dante Embedded Platform to add Dante to their products • Wider proliferation, thru lowered • Launched June 2
Slide 17: Outlook
Outlook 17 FY19 Results Presentation
Slide 18: Growth trajectory to continue
Growth trajectory to continue • Audinate has historically delivered financial year US Dollar revenue growth in the range Audinate: between 26% to 31%, and it is anticipated that this trajectory will continue Pioneering the • Economic conditions and US tariffs may impact the near-term results, but th
Slide 19: Well positioned to deliver attractive long-term growth
Well positioned to deliver attractive long-term growth Audinate has the foundations in place to accelerate our product development and support the software transition of the AV industry over the medium term A$400m Audinate Total Addressable Market (‘TAM’)* Investing to double Audinate’s engineering
Slide 20: Summary
Summary Global market Attractive financial Innovative Significant market Strong customer Experienced leader profile products opportunity base management team • Dominant • High gross • Strong portfolio • AV market • Existing customer • Strong executive position as global margins of intellectual curre
Slide 21: Questions
Questions 21 FY19 Results Presentation
Slide 22: Appendices
Appendices 22 FY19 Results Presentation
Slide 23: Increasing OEM customer adoption: pipeline for growth
Increasing OEM customer adoption: pipeline for growth 300 OEM customers shipping Dante-enabled products 27% 270 250 CAGR in OEMs 228 shipping Dante 218 221 200 enabled products 194 179 150 158 142 100 106 92 50 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 Note: per financial year Audinate has g
Slide 24: Solid growth in product ecosystem
Solid growth in product ecosystem 2,134 • Product ecosystem with over 2,100 Dante-enabled products and growing with over 450 OEMs • 57% CAGR in product ecosystem • More than 6x number of products than the next digital audio networking technology 1,751 1,639 1,292 1,182 874 973 57% CAGR in Dante 681
Slide 25: Audinate products
Audinate products Products Audinate’s core technology, called Dante, distributes audio and video Customers signals across computer networks Audinate products OEM Products (OEM Brands) Dante comprises software and hardware that resides inside the audio and video products of Audinate’s Original Equipm
Slide 26: Dante Audio and Adaptors
Dante Audio and Adaptors Dante Audio Brooklyn Broadway Ultimo Adaptors • Hardware based implementations for a range of product counts and price points • Transports uncompressed audio signals across standard computer networks Dante Adaptors • Connects legacy equipment to Dante (mostly analogue) • Add
Slide 27: Dante Domain Manager
Dante Domain Manager Dante Domain Manager Complete Network Management System • Security • Usernames/passwords identify users • Roles control access to the system • Scalability • Create Dante systems spanning campus networks • Group Dante devices into logical managed systems • Visibility • Centralise
Slide 28: Balance sheet
Balance sheet (AU$’000s) FY19 FY18 Change ($) Cash 30,069 13,631 16,438 • Cash balance includes $19m in net Trade and other receivables 2,872 1,819 1,053 Current tax asset - 1,344 (1,344) proceeds from institutional placement, Inventories 1,803 1,225 578 with $4m received in July 19 from SPP Other 8
Slide 29: Important notice and disclaimer
Important notice and disclaimer Disclaimer Past performance IFRS and may be calculated differently by other companies. To the maximum extent permitted by law, none of the Past performance information, including past share price Market share information Audinate Group Limited or its subsidiaries or t