Audinate Group Ltd. · ASX:AD8
Audinate — Investor Presentation (September 2023)
29 slides from Audinate's investor presentation, Sep 7, 2023
Slide 1: Equity Raising Investor Presentation
Equity Raising INVESTOR PRESENTATION 7 September 2023 Authorisation: approved by the Aidan Williams – Chief Executive Officer Board of Audinate Group Limited Rob Goss – Chief Financial Officer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Disclaimer and important notice
Disclaimer and important notice Summary Information Effect of Rounding This Investor Presentation has been prepared by, and is the sole responsibility of, Audinate and is dated 7 September A number of figures, amounts, percentages, estimates, calculations of value and fractions in this Investor Pres
Slide 3: Disclaimer and important notice (cont’d)
Disclaimer and important notice (cont’d) Disclosure You acknowledge and agree that determination of eligibility of investors for the purposes of the Placement and the SPP is determined by reference to a number of matters, including legal and regulatory requirements, logistical and registry The Under
Slide 4: Disclaimer and important notice (cont’d)
Disclaimer and important notice (cont’d) Recipients must conduct their own independent investigation, evaluation and analysis of the matters and data set out Market data in this document, and rely entirely on such investigation and analysis. Recipients must form their own opinion as to whether or no
Slide 5: Executive summary
Executive summary Equity Raising Use of funds Financial summary Audinate Group Limited (“Audinate” or the Audinate intends to utilise the proceeds of the Audinate recently reported its FY23 results on “Company”) is raising: Equity Raising to: 21 August 2023 − A$50 million in a Placement to professio
Slide 6: Audinate is a leading provider of professional audio networking technologies globally
Audinate is a leading provider of professional Audio networking technologies globally Audinate Total Addressable Market Audinate has successfully executed on its growth strategy to-date (‘TAM’)* share of Audio What we have achieved to date Networking Market estimated at 10% (1) ▪ FY23 saw > 1 millio
Slide 7: Proposed use of funds – capital to accelerate growth strategy
Proposed use of funds – capital to accelerate growth strategy Continued strategic investment ▪ Deliver new and innovative products related to Dante audio installations, e.g. − IoT-style device management services (like Dante Director) Audinate M&A assessment framework − Software based signal process
Slide 8: Investment Highlights
Investment Highlights A Global Market Attractive Financial Innovative Large Market Strong Customer Experienced Leader (1) Profile Products Opportunity Base Management Strong position as Gross margins >72% Broad intellectual AV just starting Existing customer Founder-led de-facto standard in for FY23
Slide 9: Equity raising summary
Equity raising summary Fully underwritten Placement to raise A$50 million and non-underwritten Share Purchase Plan to raise up to A$20 million • Fully underwritten Placement to raise approximately A$50 million via the issue of 3.8 million new fully paid ordinary shares Placement structure (“New Shar
Slide 10: Equity raising timetable
Equity raising timetable Institutional Placement Date Trading halt and announcement of Placement and SPP Thursday, 7 September 2023 Placement bookbuild Thursday, 7 September 2023 Trading halt lifted and Audinate shares recommence trading on ASX Friday, 8 September 2023 Settlement of Placement Tuesda
Slide 11: Key risks and other disclosures
Key risks and other disclosures 7 September 2023 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Equity Raising Investor Presentation / AUDINATE | 11
Slide 12: Key risks
Key risks This Section describes some of the potential material risks associated with Audinate Group Limited ACN 618 616 916 (“Audinate” or the “Company”) business, the industry in which Audinate operates and the risks associated with an investment in Shares. Audinate is subject to a number of risks
Slide 13: Key risks (cont’d)
Key risks (cont’d) Risk Factor Summary Specific Risks Video market As Audinate evolves to provide more video offerings this exposes the business to a new series of risks, including the ability to attract new customers, competition from other video technology providers, effective product and strategy
Slide 14: Key risks (cont’d)
Key risks (cont’d) Risk Factor Summary Specific Risks Protection of The value of Audinate’s products is dependent on Audinate’s ability to protect intellectual property, including business processes and intellectual property know-how, copyrights and trademarks. There is a risk that Audinate may be u
Slide 15: Key risks (cont’d)
Key risks (cont’d) Risk Factor Summary Specific Risks Industry There is currently a minimal level of industry standardisation across the AV industry. There is a risk that future industry standardisation Standardisation across the AV industry could disrupt and adversely affect Audinate’s business. If
Slide 16: Key risks (cont’d)
Key risks (cont’d) Risk Factor Summary Specific Risks Data Security breach The Company’s facilities and systems as well as the facilities and systems used by the Company’s network partners, may be vulnerable to privacy and security incidents, security attacks and breaches, acts of vandalism or theft
Slide 17: Key risks (cont’d)
Key risks (cont’d) Risk Factor Summary General Risks Share Price and Audinate, as a publicly listed company on the ASX, is subject to general market risks applicable to all securities listed on a stock exchange. Volume Fluctuations This may result in fluctuations in the share price that are not expl
Slide 18: Foreign selling restrictions
Foreign selling restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold in the Plac
Slide 19: Foreign selling restrictions (cont’d)
Foreign selling restrictions (cont’d) This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold in
Slide 20: Foreign selling restrictions (cont’d)
Foreign selling restrictions (cont’d) This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold in
Slide 21: Overview of underwriting agreement
Overview of underwriting agreement Audinate has entered into a placement agreement with the Joint Lead Managers (“Underwriters”) dated 7 ▪ The Underwriters may also terminate the Underwriting Agreement and be released from their September 2023 (“Underwriting Agreement”). The Underwriters have agreed
Slide 22: Appendix: Supporting materials
Appendix: Supporting materials 7 September 2023 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Equity Raising Investor Presentation / AUDINATE | 22
Slide 23: World-leading technology supplier to Pro-AV
World-leading technology supplier to Pro-AV (1) Audinate is the company behind the Dante® media networking solution used in the professional AV industry Poland USA UK 3,853 Japan Dante-enabled 13 Belgium China Locations Mexico France products Germany Hong Kong Philippines 575 Brazil Total OEMs >220k
Slide 24: World-leading technology supplier to Pro-AV
World-leading technology supplier to Pro-AV (1) Dante is in millions of devices and can be found in a diverse range of installations and applications across industries, including: Universities Conference Broadcast Corporate Houses of Arenas and Rooms Studios Campuses Worship Stadiums Recording Confe
Slide 25: Dante Product Map
Dante Product Map System Software (For system setup, management and troubleshooting) Dante Dante Domain Dante Audio Visual Controller Manager Director Integrators, Professionals & Consumers AVIO Network Adaptors PC/Mac/Cloud Software • Analogue • USB / Bluetooth • Dante Studio (AV) • Dante Virtual S
Slide 26: ESG Highlights
ESG Highlights Employee Engagement Supporting Diversity Supply Chain Cyber Security Environment & Wellbeing Families & Inclusion Management Management Top quartile Implemented Paid 29% female Regular audit of key Strengthened IT, Completed initial employee Parental Leave policy representation on sup
Slide 27: Continuing growth: FY24 Priorities
Continuing growth FY24 Priorities 1 2 3 4 5 Double the Release Deliver video ecosystem additional video Success with initiatives to Improve Target >30k video and cloud Dante Connect improve profitability and units in-field or products cloud offering scalability of operating shipped cost base cashflo
Slide 28: Global AV Industry Size and FY24 Outlook
Global AV Industry Size FY24 Outlook (1) Easing of supply chain challenges means a return to 2022 2028 business as usual US$285 US$402 BILLION BILLION Backlog at near-record levels provides good revenue visibility 2023 Global macro-economic uncertainty US$307 BILLION M&A opportunities surfacing to a
Slide 29: Thank you
THANK YOU 7 September 2023 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Equity Raising Investor Presentation / AUDINATE | 29
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