Cyanconnode Holdings Plc · LSE:CYAN
Cyanconnode — H1 2019 Earnings Presentation
16 slides from Cyanconnode's earnings presentation, Oct 1, 2019
Slide 1: Interim Results 2019
INTERIM RESULTS l 2019 l A WORLD LEADER IN NARROWBAND RADIO FREQUENCY (RF) SMART MESH NETWORKS © CyanConnode 2019 1
Slide 2: 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
Slide 3: H1 2019 Highlights
H1 2019 Highlights • Revenue of £1.0m achieved for H1 2019 (H1 2018 restated £1.3m) • 24% reduction in operating costs from £4.6m in H1 2018 to £3.5m in H1 2019 • Cash and investments totalling £2.4m at the end of H1 2019 with £0.8m receipt for R&D tax credit expected in Q3 • £1.3m of follow-on orde
Slide 4: Financial Results – P&L
Financial Results – P&L 30-Jun-19 30-Jun-18 31-Dec-18 Consolidated Profit & Loss 6 months 6 months 12 months £’000 £’000 £’000 Revenue 1,014 1,344 4,465 Cost of Sales -537 -342 -1,724 Gross Profit 477 1,002 2,741 Gross Profit Margin % 47% 75% 61% R&D Costs -1,030 -1,231 -2,466 Amortisation and Depre
Slide 5: Financial Results – Balance Sheet / Cash Flow Statement
Financial Results – Balance Sheet / Cash Flow Statement 30-Jun-19 31-Dec-18 30-Jun-18 Consolidated H1 2019 Consolidated Balance Sheet £’000 £’000 £’000 Cash-Flow Statement £’000 Intangibles 6,776 6,978 7,189 Cash at 1/1/2019 4,564 Investments (Bank Securities) 99 44 43 Property/Plant/Equipment 66 73
Slide 6: About CyanConnode
About CyanConnode • World leader in Narrowband Radio Frequency (RF) Smart Mesh Networks for smart city solutions • Blue-chip client base and partner eco-system validates technology offering • Vendor agnostic model allows multiple routes to market • Revenues in 2019 from existing contracts in UK, Ind
Slide 7: Market Opportunity
Market Opportunity • CyanConnode’s technology is focused on smart metering – a huge growth opportunity, with fewer than 25% of the world’s 3bn meters currently smart Global meter market (2017) Gas • Global meter market estimated at $12bn in 2017 - expected to grow by 14% CAGR p.a. $2.5bn (21%) • Sma
Slide 8: Customers and Partners
Customers and Partners Blue-chip client base and partner eco-system validates technology offering Customers Key customer deployments • Deployed over 1m electricity meters and streets lights to date across approximately 20 customers globally UK SMIP • End customer typically an electricity utility wit
Slide 9: 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 10: 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 11: India
India • Market leading position in India Indian smart metering market set to grow • Following the general election in May 2019 we expect to see a material acceleration of the Indian Smart Meters National Programme • In July, the government announced India plans to change all electricity meters to pr
Slide 12: Market Potential in India
Market Potential in India Accelerated Growth through Government initiatives Indian Smart Grid • Projected Spent $44.9 bn (2017 to 2022) (Smart meter, storage, Distribution automation) • Eleven Smart Grid demonstration/pilot projects with 50% govt grant in progress. (India Country Report by DST, Govt
Slide 13: APAC, Europe and Middle East
APAC, Europe and Middle East • Part of UK Smart Meter roll out of 53 South East Asia smart meter estimated growth million devises – Mesh radio – Not spots • South East Asia (ex-India) presents attractive market opportunity – pipeline for region > $200 million • Large opportunities in UAE, Thailand,
Slide 14: UK Smart Meter Implementation Programme – SMETS2
UK Smart Meter Implementation Programme – SMETS2 • Rollout meters commenced in Q4 2018. To date 1.8m SMET2 meters have been installed • Assumption that 10% of SMET2 meters under the Telefónica “not-spot” projected to deliver £25.7 million of revenues over a 15-year period • 500,000 prepaid licenses
Slide 15: Beijing Instruments
Beijing Instruments • December 2018, the Company signed its first agreement to license Beijing Instrument to manufacture its hardware • BI will pay a royalty to CyanConnode for each item manufactured under its reference designs • Experienced as Contract Equipment Manufacturers (“CEM”) to manufacture
Slide 16: China
China China's shipment of smart meters was 200 million units in 2018, at a CAGR of 6.8% during 2013-2018 • As IoT penetrates the public utility sectors, charging by meter allows the smart meter industry to grow at a solid pace. − Growth rate is expected to hold steady at 6.5% between 2019 and 2025 •