Slide 1: Audinate 2017 Annual Results
For personal use only Audinate 2017 Annual Results August 2017 1
Slide 2: Important notice and disclaimer
For personal use only Important notice and disclaimer Disclaimer Past performance presentati on. The non-IFR S i nform ati on has not been s ubject to audit or r eview by Audinate's To the maxim um extent permi tted by l aw, none Past performanc e i nform ati on, i ncludi ng past exter nal auditor.
Slide 3: Table of contents
For personal use only Table of contents • Section 1 – FY17 Highlights • Section 2 – FY17 Financial Performance • Section 3 – Growth Strategy • Section 4 – FY18 Outlook • Appendices – Financial information – Background information 3
Slide 4: Audio is everywhere and so is Audinate
For personal use only Audio is everywhere and so is Audinate Dante distributes high quality digital audio signals over computer networks 4
Slide 5: Leading the digital transformation of the AV industry
For personal use only Leading the digital transformation of the AV industry Audinate Global l eader i n audio networking technology Customers products (OEM Brands) OEM Products • Used by the market leading AV brands (OEMs) Chips • 369 OEM brands as customers, with 1,182 Dante enabled products availa
Slide 6: Dante platform used in thousands of installations
For personal use only Commercial installation Broadcast Transport Stadiums Live s ound Milano Congress Centre Microsoft Production Studios Sydney Trains ANZ Stadium (Olympic Park) Ministry of Sound London Melbourne Convention and NBC USA Sydney Trains Lords Cricket Ground Foo Fighters Exhibition Cen
Slide 7: FY17 Highlights
For personal use only Section 1 FY17 Highlights 7
Slide 8: FY17 Financial highlights
For personal use only FY17 Financial highlights 30% growth in $0.8m* statutory $0.4m Pro forma revenue to $11.3m EBITDA compared EBITDA loss was (USD) to $0.1M loss pcp $0.3m better than prospectus forecast 1.2m in positive $14m in primary operating cashflow capital raised 8 *Statutory EBITDA exclud
Slide 9: FY17 Operational highlights
For personal use only FY17 Operational highlights 35% growth in 48% growth in 369 OEM brands Dante-enabled units shipped to have adopted Dante, products to 1182 180k up from 310 a year ago 2 new products launched 39,000+ online certification training Dante Broadway courses delivered chip and Dante
Slide 10: Strong growth in revenue and units shipped
For personal use only Strong growth in revenue and units shipped Revenue (USD$M) Dante units shipped Chips Modules and Cards $12 11.3 100% 200 Millions Thousands 180.7 90% 180 $1.6 $10 80% 160 8.7 70% 140 $8 $1.3 121.9 6.7 60% 120 6.0 $6 $1.2 50% 100 $1.2 $9.7 40% 80 73.1 $4 $7.4 30% 60 $5.5 43.1 $4
Slide 11: Leveraging the network effect
For personal use only Leveraging the network effect Total Dante-enabled products available 1,400 Number of Dante-enabled products 1182 1,200 1077 973 1,000 925 874 771 800 681 633 600 553 348 383 400 319 223 181 200 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Note: per
Slide 12: Increasing customer adoption: Pipeline for growth
For personal use only Increasing customer adoption: Pipeline for growth Total customers and customers with Dante-enabled products available Customers with Dante-‐enabled products available 369 346 Total customers 258 189 180 170 153 160 144 129 120 106 109 93 73 80 64 52 44 4Q13 1Q14 2Q14 3Q14 4Q1
Slide 13: FY17 Financial Performance
For personal use only Section 2 FY17 Financial Performance 13
Slide 14: 2017 Pro Forma Income Statement
For personal use only 2017 Pro Forma Income Statement Pro Forma Pro Forma • Overall 2017 Pro Forma Actual EBITDA is $0.3m A$('000) Forecast Actual favourable to 2017 Pro Forma Forecast Year Ended 3 0 J une FY17 $∆ %∆ FY17 Sales Revenue 14,596 467 3% 15,063 COGS (3,568) 234 (7%) (3,802) • Pro Forma o
Slide 15: 2017 Statutory Income Statement
For personal use only 2017 Statutory Income Statement A$('000) Statutory Statutory • Revenue growth of 30% in USD, Year Ended 3 0 J une FY16 $∆ %∆ FY17 currency impacts reduced the growth Sales Revenue 11,903 3,160 27% 15,063 COGS (3,062) (740) 24% (3,802) rate in AUD to 27% Gross Profit 8,841 2,420
Slide 16: Revenue
For personal use only Revenue Revenue (AUD $M) FY17 Revenue by region $16 15.1 100% 90% $14 11.9 80% $12 70% $10 60% 8.0 Asia, 33% Americas, $8 50% 6.5 38% 40% $6 30% $4 20% EMEA, 29% $2 10% $- 0% FY14 FY15 FY16 FY17 • Audinate bills its customers in USD, therefore revenue is sensitive to FX fluctu
Slide 17: Operating Costs
For personal use only Operating Costs Operating costs $ and % revenue Statutory operating costs 12 100% AUD #039;000s FY14 FY15 FY16 FY17 Millions 90% Employee related costs 4,311 4,206 5,885 7,290 10 80% Marketing expense 525 1,015 1,639 1,603 8 70% Administration & other opex 875 1,188 1,382 1,584 60
Slide 18: 2017 Pro Forma Cash-flow Statement
For personal use only 2017 Pro Forma Cash-flow Statement Pro Forma Pro-‐forma • Overall Pro Forma free cashflow was better A$('000) Forecast Actual Cash than prospectus forecast by $0.2m Cash Flows Flows Year Ended 3 0 J une FY17 $∆ %∆ FY17 • Increases in provisions and payables EBITDA (676) 313 (
Slide 19: 2017 Statutory Balance Sheet
For personal use only 2017 Statutory Balance Sheet AUD $’000s 30 June 2017 • Balance sheet reflect completion of IPO on 30 June 2017 Assets Cash & cash equivalents 18,694 – Cash includes $3m paid to selling shareholders in Receivables 2,030 July Receivable from issue of shares 4,062 – Receivable fro
Slide 20: Growth Strategy & FY18 Outlook
For personal use only Section 3 Growth Strategy & FY18 Outlook 20
Slide 21: Growth initiatives
For personal use only Growth initiatives 21 “Add the the V” • Drive market awareness and increase in AV Extend Dante into adoption of Dante among consultants, Video system integrators, and end customers • Expand sales, marketing and customer Establish the service to support new product application p
Slide 22: Dante Domain Manager
For personal use only Dante Domain Manager™ • Usernames/passwords identify users SECURITY • Roles control access to the system • Create Dante systems spanning campus networks SCALABILITY • Group Dante devices into logical managed systems • Centralise Dante system management VISIBILITY • Monitor syst
Slide 23: Dante Domain Manager Opportunity
For personal use only Dante Domain Manager Opportunity Builds upon the OEM product Dante Domain Manager is ecosystem • A software product • Addresses customers felt needs • A system management tool • Additive revenue opportunity • For system integrators and end • New channel users • Complements exis
Slide 24: FY18 Outlook
For personal use only Section 4 FY18 Outlook 24
Slide 25: 2018 Forecast
For personal use only 2018 Forecast A$('000) Forecast • FY18 prospectus forecast was calculated Year E nded 3 0 J une FY18 using an AUD/USD exchange rate of 77c. Sales Revenue 18,552 The sensitivity to changes in exchange rates COGS (4,428) is summarised in the table below (per page 79 Gross P rofit
Slide 26: 2018 Forecast
For personal use only 2018 Forecast AUD $’M Employment costs (4.2) Marketing spend (0.8) System & processes (0.3) Development capex 2.5 FY18 Pro Forma EBITDA ($1.2m) • New initiatives include DDM, Video & Adaptors – more than doubles the current addressable market • Expenditure relates to FTEs prima
Slide 27: Summary
For personal use only Summary Global market leader Significant market opportunity Dominant position as global AV market c urrently in the early stages leader in audio networking of transformation to digital networking Five times the market adoption of Audinate is perfectly positioned to its c losest
Slide 28: Thank you
For personal use only Thank you 28
Slide 29: Appendix 1: Financial Information
For personal use only Appendicies Appendix 1: Financial Information 29
Slide 30: 2017 Statutory Income Statement
For personal use only 2017 Statutory Income Statement A$('000) Statutory Statutory Reconciliation of s tatutory to pro forma income s tatements Year Ended 30 J une FY16 $∆ %∆ FY17 A$('000) Forecast Actual Sales R evenue 11,903 3,160 27% 15,063 Year Ended 30 J une FY16 FY17 FY17 COGS (3,062) (740) 24
Slide 31: 2017 Statutory Balance Sheet
For personal use only 2017 Statutory Balance Sheet $’000s 2016 $∆ %∆ 2017 Year Ended 30 J une 2016 $∆ %∆ 2017 Assets Cash & cash equivalents 3,108 15,586 501% 18,694 Receivables 1,915 115 6% 2,030 Receivable from issue of shares -‐ N/A N/A 4,062 Inventory 455 312 69% 767 R&D incentive 1,149 (247) (
Slide 32: 2017 Cash-flow statement
For personal use only 2017 Cash-flow statement A$('000) Statutory Cash F lows Year Ended 30 J une FY16 $∆ %∆ FY17 Cash flows f rom operating activities Receipts from customers (inclusive of GST) 11,764 3,316 28% 15,079 Payments t o suppliers and employees (inclusive of GST) (11,472) (2,936) 26% (14
Slide 33: Appendix 2: Background Information
For personal use only Appendices Appendix 2: Background Information 33
Slide 34: Audinate is the dominant global supplier of digital audio networking technologies
Audinate is the dominant global supplier of digital audio For personal use only networking technologies Dante platform distributes high quality digital audio signals over computer networks Selected Analogue s ignal distribution products Rapid product development Chips Commercially supported, turnkey
Slide 35: Audinate's current addressable market
For personal use only Audinate’s current addressable market Audio networking addressable Audio networking addressable market (A$m)(1) market drivers (1) • Collaboration in c orporate, government and institutional workplaces 454.6 • Strong pipeline of events and meetings 352.8 • Growth in t he live m
Slide 36: Selected products: Chips, Modules and Cards
For personal use only Selected products Chips, Modules and Cards Dante Ultimo (Chip) Dante B rooklyn II (Module) Cards Dante B roadway (Chip) Product launched in A pril 2017 Used in low channel Used in medium to h igh Peripheral soundcards a nd applications Used in medium channel channel a pplicatio
Slide 37: Selected products: Software
For personal use only Selected products Software Dante Controller Dante V irtual Dante V ia Dante Domain Soundcard Manager Software to e nable the Software-only sound card Software that turns a udio Product launch e xpected in configuration a nd setup o f enabling P C a nd Mac applications a nd com