Slide 1: ReadCloud Limited Investor Presentation
ReadCloud Limited Australia’s Leading eReading Solution Investor Presentation 10 June 2020 ASX : RCL, RCLO
Slide 2: The leading SaaS eReading solution for Australian secondary schools and VET
The leading SaaS eReading solution for Australian secondary schools and the Vocational Education and Training (VET) sector Delivers the full curriculum seamlessly and securely 350+ Schools ↑ 29%* - integrated from Publisher to Student - sophisticated social and collaborative learning tools that subs
Slide 3: Corporate snapshot
Corporate snapshot ASX Code: RCL, RCLO Substantial Shareholders Share Price (5 June 2020) $0.285 Amity Agency Pty Ltd 13.9% Market capitalisation (@ 28.5 cents) $27. 9m Thorney Group* 10.7% Shares on issue (listed) 97.9m Lars Lindstrom 8.7% Options on issue (listed) 16.7m Hunmar Holdings/Darren Hunt
Slide 4: ReadCloud delivers the entire curriculum digitally
ReadCloud delivers the entire curriculum digitally One application delivers a school’s complete eBook and digital resource requirements ● Over 200,000 eBooks from the world’s leading publishers ● Operates on all major hardware / operating systems and is accessible from any device online and off-line
Slide 5: ReadCloud's markets
ReadCloud’s markets Secondary Schools VET-in-School • Australia has an estimated 3.95 million students in over 9,500 • 242,000 secondary students undertake Vocational Education and primary and secondary schools Training (VET) courses within the school system2 • The immediate target market is 1.6 mil
Slide 6: The Australian school digital landscape
The Australian school digital landscape Key players targeting the Australian secondary school market ● ReadCloud ○ ReadCloud sells eBooks to schools from its library of 200,000+ eBooks under distribution agreements with over 50 textbook and novel publishers including the largest global publishers ○
Slide 7: Business model – Direct Schools
Business model – Direct Schools Direct distribution - ReadCloud sales team ● Key targets are book hire schools (circa 75% of secondary schools in Australia) ● Schools typically enter into 2-3 year contracts and contracts typically cover 2-4 year-levels in the first year with roll-out to additional y
Slide 8: Business model – Resellers
Business model – Resellers Reseller partners – School curriculum booksellers ● ReadCloud is the exclusive eReading platform for a range of Resellers that provide booklist services to secondary schools ● The Resellers are traditional booksellers who utilise the ReadCloud platform to provide an online
Slide 9: Business model – VET in Schools
Business model – VET in Schools ReadCloud’s offering ● Key targets are secondary schools offering Vocational & Educational Training (”VET”) courses to students in Years 10/11/12 who aren’t planning on going to university ● ReadCloud’s VET-in-schools business is a Registered Training Organisation (“R
Slide 10: Business model – Broader VET
Business model – Broader VET VET in Universities, TAFEs & RTOs ● ReadCloud’s key targets are publishers delivering course materials to VET students in Universities, TAFEs and RTOs ● ReadCloud provides these publishers with eBook encryption and a digital distribution and eReading platform ● The end-c
Slide 11: Growth strategy
Growth strategy Direct Schools VET in Schools School Reseller partners Broader VET • Expanded use of platform in • Expand into new schools • Expand the cost effective sales • New partnerships with existing schools across channel for the sale of the educational content publishers • Cross-selling Read
Slide 12: Strong ongoing growth
Strong ongoing growth ● Over 350 school customers (13% of the Australian secondary school market) ● Over 112,000 users of the ReadCloud platform (teachers & students) ● Strong growth in current financial year across both the full curriculum and VET-in- schools businesses ReadCloud platform users* Ju
Slide 13: Financial performance
Financial performance ● Compound annual revenue growth of 105.4% p.a. over last 3 financial years, driven by: ○ school and user growth, with minimal customer churn ○ growth of Average Revenue per User (ARPU) ● ARPU has grown at a compound annual growth rate of 32.4% over the last 3 financial years,
Slide 14: Outlook
Outlook ● COVID-19 update ○ The pandemic has had no negative impact on ReadCloud’s operations as staff can work effectively from home ○ 7 new Direct Schools have been signed up over the last two months via video conferencing, with no in-person sales contact ○ The pandemic has raised awareness of the
Slide 15: Key investment highlights
Key investment highlights ● ReadCloud is the leading digital education solution for Australian schools, delivering clear educational benefits and saving schools and parents money ● Large market opportunity in Australia with an immediate target market of 2,700 secondary schools with 1.6 million stude
Slide 16: Disclaimer
Disclaimer This presentation has been prepared by ReadCloud Limited (“Readcloud”), based on information available as at the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an investment decision. This
Slide 17: ReadCloud Limited Lars Lindstrom | CEO
ReadCloud Limited 284 Bay Street Brighton VIC 3186 Lars Lindstrom | CEO lars@readcloud.com 17