Catapult Sports Ltd. · ASX:CAT
Catapult Sports — Catapult Group International — Merger or Acquisition (July 2016)
46 slides from Catapult Sports's merger presentation, Jul 13, 2016
Slide 1: Catapult Acquires XOS and PLAYERTEK, Launches Equity Raising
For personal use only Catapult Acquires XOS and PLAYERTEK, Launches Equity Raising 13 July 2016
Slide 2: Disclaimer
Disclaimer This document has been prepared by Catapult Group International Ltd ABN 53 164 301 197 (Catapult). This document has been prepared in relation to Catapult's acquisition of XOS Technologies, Inc (XOS) and Kodaplay Limited (Kodaplay) trading as PLAYERTEK (PLAYERTEK), Catapult's fully underw
Slide 3: Disclaimer (continued)
Disclaimer (continued) Investment risk An investment in Catapult shares is subject to known and unknown risks, some of which are beyond the control of Catapult. Catapult does not guarantee any particular rate of return or the For personal use only performance of Catapult. Investors should have regar
Slide 4: Disclaimer (continued)
Disclaimer (continued) Future performance (continued) Except as required by law or regulation (including the ASX Listing Rules), Catapult undertakes no obligation to provide any additional or updated information whether as a result of new For personal use only information, future events or results o
Slide 5: Executive Summary
For personal use only Section 1 EXECUTIVE SUMMARY
Slide 6: Overview of the XOS Acquisition
Overview of the XOS Acquisition For personal use only Catapult has agreed to acquire 100% of XOS Technologies, Inc, a Delaware incorporated company (“XOS”), a US-based market leader in providing innovative digital and video analytic software solutions to elite sports teams in the United States ( “
Slide 7: Overview of the PLAYERTEK Acquisition
Overview of the PLAYERTEK Acquisition For personal use only Catapult has also agreed to acquire 100% of PLAYERTEK, a leading developer of wearable analytics software solutions for the prosumer market (“PLAYERTEK Acquisition”) – Total consideration of €3.3 million (A$4.9 million), with €2.4 million
Slide 8: Funding the Acquisitions
Funding the Acquisitions For personal use only To fund the cash consideration and transaction costs for the XOS Acquisition and PLAYERTEK Acquisition, Catapult will: – Launch an underwritten placement and accelerated pro rata non-renounceable entitlement offer to raise ~A$100 million – Issue A$1.3
Slide 9: Trading Update and Financial Impact of Acquisitions
Trading Update and Financial Impact of Acquisitions For personal use only As released to the market on 5 July, Catapult upgraded full year FY16 guidance for units ordered and total contract value (TCV) – Total units ordered of 8,354 (+63% on FY15)1 – Total Contract Value (TCV) of $29.4 million (+7
Slide 10: Catapult Acquisition of XOS
For personal use only Section 2 CATAPULT ACQUISITION OF XOS
Slide 11: XOS at a Glance
XOS at a Glance For personal use only A market leader in providing innovative digital and video analytic software solutions to elite sports teams in the United States Market leader specialising in designing custom digital video solutions to optimise sports coaching in the US professional and colle
Slide 12: XOS Customer Base
XOS Customer Base For personal use only Extensive customer base of >400 sports organisations with a current focus on Pro and NCAA Division 1 sports >400 sports organisations across two distinct team sport types – “Play based” sports such as football and baseball – “Flow” sports such as ice hockey,
Slide 13: XOS Thunder Product Family
XOS Thunder Product Family For personal use only Sophisticated video editing, tagging and analysis software solution for coaching staff, targeted at Pro and Division 1 NCAA programs Combines video, scouting and advanced analytics, creating a seamless cloud-based workflow and owning the technology
Slide 14: XOS Content Licensing
XOS Content Licensing For personal use only Content licensing connecting customers to major media entities Valuable strategic relationships based on connecting a wide range of video content rights-holders with some of the largest media licensee entities in the world Potential to leverage relatio
Slide 15: Compelling Strategic Rationale for XOS Acquisition
Compelling Strategic Rationale for XOS Acquisition For personal use only 1 Brings together leaders of wearable and video technology, the 2 key technology pillars in elite club environments Strengthens Catapult’s strategic positioning and operational platform to 2 accelerate its expansion globally an
Slide 16: Bringing together the leaders of wearable and video technology
Bringing together the leaders of wearable and video 1 technology, the 2 key technology pillars in club environments For personal use only Owning the athlete analytics ecosystem Integrated data and analytics + + Peripheral Applications Wearables Video Analytics Scouting Document management Video arch
Slide 17: Strengthens Catapult's strategic positioning and operational platform
Strengthens Catapult’s strategic positioning and 2 operational platform… For personal use only The acquisitions will enhance Catapult’s current sales and product development footprint, with the addition of 95 highly qualified and experienced personnel primarily across sales and R&D Addition of 21
Slide 18: Enabling Catapult to accelerate expansion globally and generate synergies
… enabling Catapult to accelerate its expansion 2 globally and generate significant synergies For personal use only Significant potential for cross-sell opportunities to accelerate Catapult’s market penetration in the U.S., and globally in the longer term Potential Cross-Sell Opportunity of Catapult
Slide 19: Next generation products integrating player data and video analytics
Enables Catapult to pioneer the development of next 3 generation products for elite sports which integrate player performance data analytics with video analytics For personal use only Combining video and wearable answers the two key questions: “what happened?” with “why did it happen?” Currently dat
Slide 20: Substantially accretive to revenues, recurring revenue base and EBITDA
Substantially accretive to Catapult’s total revenues, 4 recurring revenue base and EBITDA (pre-synergies) For personal use only Profitable business with attractive recurring revenue profile similar to Catapult XOS Financial Metrics (FY16) XOS Revenue Mix (FY16) Non-recurring revenue comprises hard
Slide 21: Acquisition of PLAYERTEK
For personal use only Section 3 ACQUISITION OF PLAYERTEK
Slide 22: PLAYERTEK: Platform to accelerate entry into the prosumer market
PLAYERTEK: Provides platform to accelerate Catapult’s entry into the prosumer market… For personal use only Demonstrate a Based in Ireland, PLAYERTEK has developed wearable Market validation, low cost sales analytics products primarily targeted at amateur footballers and show demand in and support
Slide 23: Leveraging the halo effect to enlarge the addressable market
…leveraging the halo effect of Catapult’s leading position in elite sports to enlarge the addressable market opportunity For personal use only US Examples Football Basketball NCAA NCAA Elite c. 75k c. 36k athletes athletes Increasing market opportunity c. 1.1m c. 1.0m athletes athletes Prosumer c. 1
Slide 24: Catapult Post-Acquisitions
For personal use only Section 4 CATAPULT POST-ACQUISITIONS
Slide 25: Continuing to Deliver on Catapult's Strategy
Continuing to Deliver on Catapult’s Strategy For personal use only The acquisitions will accelerate Catapult’s strategy and deliver long-term value to Catapult shareholders • Strengthened position to extend leading market share and own athlete analytics across the two Develop the leading key pilla
Slide 26: Pro-forma Revenue Splits
Pro-forma Revenue Splits For personal use only The acquisition of XOS will significantly increase Catapult’s U.S. based revenue and recurring revenue mix Pro-Forma Revenue Pro-Forma Revenue by Geography (FY16) By Type (FY16) APAC Other (ex. Aus) 2% 3% Australia 6% Europe 12% Non-Recurring 24% Re
Slide 27: Catapult's Strengthened Pro-Forma Earnings and Cash Flow Profile
Catapult’s Strengthened Pro-Forma Earnings and Cash Flow Profile For personal use only The XOS Acquisition will significantly increase Catapult’s total revenue and EBITDA and will accelerate Catapult’s transition to positive EBITDA and free cash flow in FY171 Catapult Standalone (FY16) Catapult Pro-
Slide 28: Catapult's Pro-Forma Balance Sheet
Catapult’s Pro-Forma Balance Sheet For personal use only Balance Sheet as at 31 December 2015 (A$m) Catapult XOS Transaction Pro-Forma Catapult & XOS as at 31-Dec-2015 as at 31-Dec-2015 Adjustments 1 Consolidated Current Assets Cash and cash equivalents 8.5 0.8 10.8 20.2 Trade and other receivables
Slide 29: Acquisition Terms and Funding
For personal use only Section 5 ACQUISITION TERMS AND FUNDING
Slide 30: Acquisition Terms and Funding
Acquisition Terms and Funding For personal use only Acquisition terms Purchase price for XOS of US$60 million (A$80.1 million) to be paid as cash Purchase price Purchase price for PLAYERTEK of €3.3 million (A$4.9 million) with €2.4 million (A$3.6 million) payable in cash and €0.9 million (A$1.3
Slide 31: Equity Raising Details
Equity Raising Details For personal use only Fully underwritten ~A$100 million equity raising comprised of: — a placement to raise approximately A$68 million1 (“Placement”) — a 1-for-10.65 accelerated non-renounceable entitlement offer to raise approximately A$32 milion1 Offer structure and size (
Slide 32: Offer Timetable
Offer Timetable For personal use only Placement and Entitlement Offer Date Trading halt and open Placement and Institutional Entitlement Offer Wed, 13-Jul 2016 Close Placement and Institutional Offer Thu, 14-Jul 2016 Resume trading, announce results of Placement and Institutional Entitlement Friday,
Slide 33: Appendix A: Risks
For personal use only Section 6 APPENDIX A: RISKS
Slide 34: Risks
Risks This section describes some, but not all, of the key risks associated with an investment in Catapult shares. These risks may affect the future operating and For personal use only financial performance of Catapult (including the operations of XOS and PLAYERTEK and the value of Catapult shares.
Slide 35: Risks (continued)
Risks (continued) For personal use only General Risks Technology and hosting Catapult relies on a third party hosting provider to maintain continuous operation of its technology platforms, servers and platforms hosting services and the cloud based environment in which Catapult provides its products.
Slide 36: Risks (continued)
Risks (continued) For personal use only General Risks Infringement of third party Other parties may develop and patent substantially similar or substitute products, processes or technologies to those used intellectual property rights by Catapult, and other parties may also allege that Catapult's pro
Slide 37: Risks (continued)
Risks (continued) For personal use only General Risks Manufacturing and product Catapult currently uses third party manufacturers to produce components of its products. There is no guarantee that these quality risks manufacturers will be able to meet the cost, quality and volume requirements that ar
Slide 38: Risks (continued)
Risks (continued) For personal use only General Risks Financial information and The forward looking statements, opinion and estimates provided in this presentation, including the Financial Forecasts, rely forecasts on various contingencies and assumptions. Various factors and risks, both known and u
Slide 39: Risks (continued)
Risks (continued) For personal use only General Risks Change in accounting Catapult is subject to the usual business risk that there may be changes in accounting standards or its own accounting standards policies which have an adverse impact on it. Key Acquisition Risks Completion risk Completion of
Slide 40: Risks (continued)
Risks (continued) For personal use only Key Acquisition Risks Reliance on information Catapult has undertaken a due diligence investigation process in respect of XOS and PLAYERTEK which included the provided review of financial and other information provided by the vendors of XOS and PLAYERTEK respe
Slide 41: Risks (continued)
Risks (continued) For personal use only Key Share and Offer Risks Risks associated with an There are general risks associated with investments in equity capital. The trading price of Catapult shares may fluctuate with investment in shares movements in equity capital markets in Australia and internat
Slide 42: Risks (continued)
Risks (continued) For personal use only Key Share and Offer Risks If you do not take up You should note that if you do not take up all or part of your entitlements, then you percentage shareholder in Catapult will entitlements you will be diluted be diluted and you will not be exposed to future incr
Slide 43: Appendix B: International Selling Restrictions
For personal use only Section 7 APPENDIX B: INTERNATIONAL SELLING RESTRICTIONS
Slide 44: International Selling Restrictions
International Selling Restrictions For personal use only International offer restrictions This document does not constitute an offer of new ordinary shares (Shares) of Catapult in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and t
Slide 45: International Selling Restrictions (continued)
International Selling Restrictions (continued) For personal use only New Zealand The following warning statement applies in relation to those New Zealand investors who are Wholesale Investors solely by reason of (continued) the minimum amount payable by them on acceptance of the offer being at least
Slide 46: International Selling Restrictions (continued)
International Selling Restrictions (continued) For personal use only United Kingdom This document does not constitute a prospectus for the purpose of the prospectus rules issued by the Financial Conduct Authority of the United Kingdom (FCA) pursuant to section 84 of the Financial Services and Market
Catapult Group International — Merger or Acquisition (July 2016) on 6ix