Audinate Group Ltd. · ASX:AD8
Audinate — Investor Presentation (February 2023)
34 slides from Audinate's investor presentation, Feb 13, 2023
Slide 1: Audinate 1H23 Investor Presentation
Audinate 1H23 Investor Presentation 13 February 2023 Aidan Williams – Chief Executive Officer Rob Goss – Chief Financial Officer Authorisation: This document was approved by the Board of Audinate Group Limited 13 February 2023 1H23 Investor Presentation Audinate Confidential | 1
Slide 2: World-leading technology supplier to Pro-AV
World-leading technology supplier to Pro-AV Audinate is the developer of the professional AV industry-leading Dante® media networking solution 3,688 Dante-enabled products 559 Total OEMs brands licensing Dante 186 Employees 11 Countries >200k Professionals trained on Dante 8 Languages supported 13 F
Slide 3: Dante Video and Audio Platform
Dante Video and Audio Platform AV Configuration & Management • Dante Controller • Dante Domain Manager • Dante Cloud Audio Visual Integrators, Professionals & Consumers AVIO Network Adaptors Audio & Video Software Tools • Analogue • Dante Studio (AV) • USB / Bluetooth • Dante Virtual Soundcard • Dan
Slide 4: Gross profit growth continues
Gross profit growth continues US$m Gross Margin Variance +30% Financial Highlights Prior Corresponding 6,000 120.0% Period $14.5 115.0% $13.7 A$30.8M Revenue 52.5% 4,000 110.0% 105.0% 2,000 US$20.6M US$ Revenue 39% $11.2 100.0% $10.6 95.0% 0,000 71.2% Gross Margin % (4.4%) - 90.0% $8.5 $8.6 85.0
Slide 5: Leading Global Supplier of AV Networking
Leading Global Supplier of AV Networking Total audio products per protocol 4000 3,688 >A$1bn Total addressable market(1) 3500 3000 OEM brands shipping Dante 391 enabled products 2500 2000 Dante enabled products 3,688 available on the market 1500 Market adoption of 12x closest competitor 1000 500 302
Slide 6: Strong progress on FY23 objectives
Strong progress on FY23 objectives FY23 Objectives Actions - Successful launch of next-gen Brooklyn 3 – last Brooklyn 2 orders 1. Support customer transition to more available - Broadway chip “end of life” with last buy orders chips & away from legacy products - Reference design transitions ongoing
Slide 7: Successful release of Brooklyn 3
Successful release of Brooklyn 3 • The Brooklyn module is the most widely deployed implementation of Dante and is used in hundreds of products including mixing consoles, digital signal processors and amplifiers • Brooklyn 3 is a drop-in replacement for Brooklyn 2, using a new chip • ~1,900 days of p
Slide 8: Dante Video momentum growing
Dante Video momentum growing Integrated Systems Europe tradeshow (February 2022) 13 February 2023 1H23 Investor Presentation Audinate Confidential | 8
Slide 9: Dante Video Update
Dante Video Update Progress since August 2022 Released Dante AV-H – Dante video software for OEMs Dante Studio – our PC/Mac video software offering is now commercially available Video product enhancements have been added to Dante Domain Manager 30 OEMs have licensed Dante Video with 20 video
Slide 10: Financial Performance
FINANCIAL PERFORMANCE 13 February 2022 1H23 Investor Presentation Audinate Confidential | 10
Slide 11: Chips, cards & modules drive revenue growth
Chips, cards & modules drive revenue growth Revenue (US$M) Dante units shipped 20.6 $20.0 18.6 4.7 300 $49 50 $50 14.8 4.8 $40 $15.0 13.9 250 238 40 $40 $38 $32 11.1 11.1 3.5 3.8 200 $36 30 10.3 10.0 9.3 $30 $10.0 1.6 2.3 3.4 150 180 20 1.6 1.9 15.6 $20 13.6 100 10 $5.0 8.5 8.6 10.3 10.8 $10 8.0 7.1
Slide 12: Additional revenue drives EBITDA growth
Additional revenue drives EBITDA growth EBITDA Waterfall (A$’000s) 1 2 3 4 1 Gross profit dollars reflects increased revenue vs pcp 2 # of employees up from 166 (1H22) to 186 (1H23) EBITDA (A$M) 4.3 3 Direct Marketing due increased trade show activity 4 Reflects increased software spend and return t
Slide 13: Ongoing revenue growth reinvested in R&D
Ongoing revenue growth reinvested in R&D • Ongoing focus on innovation and R&D to maximise future growth opportunities • Operating leverage in the cost base is again evident as additional revenue drives EBITDA growth Research and Development (A$M) Revenue, cost trends (A$M) 14.0 33% 40% 40 75% 32% 6
Slide 14: Income Statement
Income Statement 1 US$ revenue increased 39.3% to U$20.6M with A$ (A$’000s) 1H23 1H22 Change revenue increasing 52.5% to A$30.8M 1 Revenue 30,843 20,226 52% 2 Employee expenses were higher than 1H22 with Gross profit 21,949 15,295 43% headcount increasing from 166 (1H22) to 186 (1H23) Gross Margin %
Slide 15: Cash-flow Statement
Cash-flow Statement (A$'000) 1H23 1H22 1 Operating cash receipts & payments are consistent 1 Receipts from Customers * 29,795 20,081 with the income statement and movement in working 2 Payments to suppliers and employees * (28,089) (19,449) capital Interest received 204 81 Interest paid (35) (42) 2
Slide 16: Balance Sheet
Balance Sheet 1 Cash & term deposits of $37.9M, with no debt (A$’000s) 31 Dec 22 30 Jun 22 Change ($) 2 Trade and other receivables is $1.3M higher than 1 Cash 21,867 17,465 4,402 Term deposits 16,000 27,000 (11,000) 1H22 due to higher revenue 2 Trade and other receivables 7,845 6,513 1,332 3 Invent
Slide 17: Outlook
OUTLOOK 13 February 2023 1H23 Investor Presentation Audinate Confidential | 17
Slide 18: Continuing focus on growth
Continuing focus on growth 1. Support customer transition to more available chips & away from legacy products 2. Manufacturers to release Dante video products FY23 3. Generate > US$3 million in video revenue Priorities 4. Drive adoption of new Dante products 5. Continued focus on Operational Efficie
Slide 19: 2H23 Outlook
2H23 Outlook • 2H23 outlook consistent with statements made at the The pro-AV industry is expected to grow 11% release of our FY22 results in 2022, to hit a new high-water mark of $263 • Continue to target >200 employees at the end of billion globally. AVIXA estimates the industry FY23, albeit the l
Slide 20: Investment Highlights
Investment Highlights Global Market Leader Attractive Financial Profile Innovative Products • Dominant position as de- • Gross margins >71% • Broad intellectual property facto standard in audio supported by strong IP portfolio developed in networking Australia • Consistent historical • 12x market ad
Slide 21: ESG Highlights
ESG Highlights Employee Engagement Supporting Families Diversity & Inclusion & Wellbeing • Top quartile employee • Implemented new Paid • 29% female representation engagement Parental Leave policy with amongst senior executive industry leading leave leadership team • Employee Assistance Program, all
Slide 22: Questions
QUESTIONS 13 February 2023 1H23 Investor Presentation Audinate Confidential | 22
Slide 23: Appendices
Appendices 13 February 2023 1H23 Investor Presentation Audinate Confidential | 23
Slide 24: Audinate is Driving the Transformation of AV
Audinate is Driving the Transformation of AV Audinate Total Addressable Market (‘TAM’)* • Networked digital connectivity is replacing traditional, point-to-point analogue cabling The TAM for digital audio networking is A$400m annually Audinate share of for chips, cards, Audio Market in the AV indust
Slide 25: OEM business model
OEM business model Dante comprises chips, cards, modules and software that resides inside the audio and video products of Audinate’s Original Equipment Manufacturer (OEM) customers Audinate products OEM customers OEM products Modules Chips Software Cards 13 February 2023 1H23 Investor Presentation A
Slide 26: OEM Design Wins drive future revenue growth
OEM Design Wins drive future revenue growth OEM Product Buy Prototype Release New Pre-sales DESIGN WIN Design Dante Units Product Customer OEM OEM sells commits to Manufactures Dante- use Dante in more AV enabled AV new products products products • Design wins are a key step in the OEM sales cycle •
Slide 27: OEM Design wins through to product launch
OEM Design wins through to product launch Design Wins OEM Brands shipping & developing Dante-enabled Products Dante-enabled Products Ecosystem 84 3688 78 3610 Shipping product Developing product 3301 3123 2909 497 513 520 53 506 493 500 2738 471 440 44 42 42 426 41 94 103 129 2338 37 38 178 133 129
Slide 28: Dante Controller for AV Professionals
Dante Controller for AV Professionals Dante Controller • Free system setup tool • Downloadable from Audinate homepage • Registration required • Define virtual wires across the network • > 250,000 downloads • Manages audio and video signals • Simple & easy to use • Standard industry matrix view • Tra
Slide 29: Dante Audio and Adaptors
Dante Audio and Adaptors Dante Audio Chips & Modules 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
Slide 30: Dante Audio Software
Dante Audio Software Dante audio device software Reference Design IP Core Embedded Platform Application Library • Software based implementations for a range of product counts and price points • OEM customers, based on per unit royalty model • Transports uncompressed audio signals across standard com
Slide 31: Dante Video Products
Dante Video Products Dante AV Chips & Modules Dante AV Ultra Viper Dante AV-H Dante Studio • Dante AV Ultra and Viper are premium products targeting live venues, broadcasters, corporate board rooms and university lecture spaces. Studio Dante Software • Dante AV-H enables existing mainstream products
Slide 32: Dante Via & DVS for AV Professionals
Dante Via & DVS for AV Professionals Dante Virtual Soundcard (DVS) • Turns a computer into a Dante-powered workstation, integrating a Mac or PC with Dante- enabled audio equipment on a network • Connects to record, process and playout using any audio application and any combination of Dante-enabled
Slide 33: Dante Domain Manager for AV Professionals
Dante Domain Manager for AV Professionals Dante Domain Manager • Security • User logins and roles • Prevent unauthorised changes • Scalability • Create Dante systems spanning campus networks • Group Dante devices into logical managed systems • Visibility • Centralise Dante system management • Monito
Slide 34: Important notice and disclaimer
Important notice and disclaimer Disclaimer Past performance The non-IFRS measures do not have any standard definition under IFRS and may be calculated differently To the maximum extent permitted by law, none of the Past performance information, including past share price information, given in this p
Audinate Group — Investor Presentation (February 2023) on 6ix