Dti Group Ltd · ASX:DTI
Dti — Shareholder Meeting (November 2018)
35 slides from Dti's shareholder meeting presentation, Nov 20, 2018
Slide 1: 2018 Annual General Meeting
DTI GROUP LTD 2018 Annual General Meeting DTI GROUP LTD 2017 Interim Results Presentation [_] February 2017 20 November 2018 1
Slide 2: Agenda
AGENDA • Introduction • Notice of Meeting • Meeting Procedure • Chairperson’s Address • Resolutions • Closure of Formal Meeting • CEO Presentation 2
Slide 3: Financial Statements
FINANCIAL STATEMENTS To receive and consider the Financial Statements of the Company for the year ended 30 June 2018, consisting of the Income Statements, Statement of Financial Position, Statement of Changes in Equity, Statements of Cash Flows, the Directors’ Report, the Directors’ Declaration and
Slide 4: Resolution 1
RESOLUTION 1 As an ordinary resolution ▪ That Mr Neil Goodey, who retires in accordance with clause 13.2(a) of the Company’s Constitution and being eligible for election, is re-elected as a Director of the Company. For Against Open Abstain 129,364,387 56,714 103,164 5,195 4
Slide 5: Resolution 2
RESOLUTION 2 As an ordinary resolution ▪ That Mr Greg Purdy, who was appointed by the Board in accordance with clause 13.4 of the Company’s Constitution and being eligible for election, is elected as a Director of the Company. For Against Open Abstain 129,118,473 295,650 100,142 15,195 5
Slide 6: Resolution 3
RESOLUTION 3 As an ordinary resolution ▪ That Mr Steve Gallagher, who was appointed by the Board in accordance with clause 13.4 of the Company’s Constitution and being eligible for election, is elected as a Director of the Company. For Against Open Abstain 129,097,409 316,714 100,142 15,195 6
Slide 7: Resolution 4
RESOLUTION 4 As an ordinary resolution ▪ That Mr Andrew Lewis, who was appointed by the Board in accordance with clause 13.4 of the Company’s Constitution and being eligible for election, is elected as a Director of the Company. For Against Open Abstain 129,107,187 316,714 90,364 15,195 7
Slide 8: Resolution 5
RESOLUTION 5 As an ordinary resolution ▪ That for the purposes of ASX Listing Rule 7.2, exception 9 and all other purposes, the issue of performance rights, options and restricted shares under the DTI Group Limited Equity Plan (and the issue of the underlying securities that are the subject of those
Slide 9: Resolution 6
RESOLUTION 6 As an ordinary resolution ▪ That the Remuneration Report, as set out in the Company’s 2018 Annual Report, is adopted. For Against Open Abstain 62,344,581 1,115,609 90,364 65,137,562 • The vote on this resolution is advisory only and does not bind the Directors’ or the Company. • Votes c
Slide 10: Resolution 7
RESOLUTION 7 As a special resolution ▪ That the issue of equity securities up to 10 per cent of the issued capital of DTI Group Limited (at the time of the issue) calculated in accordance with the formula prescribed in ASX Listing Rule 7.1A.2 is approved For Against Open Abstain 122,177,599 7,246,52
Slide 11: Resolution 8
RESOLUTION 8 As an ordinary resolution ▪ That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, the issue of up to 300,000 unlisted performance rights to Peter Tazewell under the DTI Group Limited Equity Plan is approved For Against Open Abstain 127,116,901 1,367,211 1,013,375
Slide 12: Closure
CLOSURE Any other business which may be brought forward in accordance with the Company’s Constitution and the Corporations Act 2001 Close of meeting – Mr Neil Goodey, Chairperson 12
Slide 13: CEO Presentation
CEO PRESENTATION Mr Peter Tazewell 13
Slide 14: What We Do
WHAT WE DO . . . 14
Slide 15: Overview – FY18
Overview – FY18 • Revenue of $19.1 million, 20 per cent increase on FY17; in line with Financial guidance • EBITDA adversely impacted by impairment costs, but positive in 2H (pre-impairment) • Working capital reduced by $2.8 million, despite increased revenue • $0.3 million negative cash flow from O
Slide 16: IRIS Certification
IRIS Certification • IRIS Certification achieved • Critical for ongoing participation in rail industry • Also satisfies DTI’s requirements for ISO accreditation 16
Slide 17: FY18 Financial Results
FY18 FINANCIAL RESULTS 17
Slide 18: Key Financial Metrics
Key Financial Metrics FY18 FY17 • Revenue increased Revenue $m 19.1 15.9 20.4 per cent pcp EBITDA $m (10.1) (3.0) • Significant Underlying EBITDA $m (2.7) 0.5 impairment charges recorded Net profit/(loss) after tax $m (11.4) (5.8) • Positive 2H EBITDA Earnings per share ¢ (4.30) (5.20) (pre-impairme
Slide 19: Balance sheet
Balance sheet $m FY18 FY17 Cash 5.1 3.2 • Rail projects continue to Trade receivables 6.0 9.0 be working capital Other receivables 1.4 3.1 intensive – but net Inventory 8.0 8.0 working capital reduced Property, plant & equip 1.1 1.0 Intangible assets 0.3 5.6 • Negligible bank debt Other assets 0.1 0
Slide 20: FY19 Trading Update
FY19 TRADING UPDATE 20
Slide 21: Trading Update
TRADING UPDATE • 1H FY18 Revenue expected to exceed 1H FY17 • Contracted revenue forecast to be invoiced in FY18 of $19.2 million • Strong pipeline of projects that DTI is bidding. Major markets continue to be EMEA and North America • Operating Cash flow continues to be challenged by: – Working capi
Slide 22: Impairment
IMPAIRMENT • During FY18 DTI recorded impairment of $7.6 million • Impairment of capitalised R&D expenditure ($5.2 million) is not reflective of the future value to be derived from this investment Recurring R&D Marketing Prospects Contracts Revenue Year 0–1 Year 0–1 Years 0–2 Years 1–3 Years 5+ • Fu
Slide 23: Commercial Activities
COMMERCIAL ACTIVITIES • Product deliveries for Sydney Metro ahead of schedule and supply chain regularised. Initial 22 trainset order completed with potential for 37 trainset extension • DART Options (US$7 million) were awarded to DTI (Dec 2017) and due for completion in April 2019 • Northern Line (
Slide 24: Order Book and Pipeline
ORDER BOOK AND PIPELINE 24
Slide 25: Order Book
ORDER BOOK • Sustained strong Contracted Order Book • Strong growth in rail sector with global infrastructure spend • Order book does not include anticipated recurring work until PO is issued 25
Slide 26: Opportunity Pipeline
OPPORTUNITY PIPELINE • Significant identified long term pipeline of approx. $329 million • EMEA continues as strongest region with Australasian opportunities growing with increased investment • Market continues to be dominated by rail which generally has higher specifications and engineering effort
Slide 27: Strategies
STRATEGIES 27
Slide 28: Short Term
SHORT TERM Grow Revenue Base Production Cost Efficiencies Cost Down Strategy Overhead Reduction • Increased order • Product design • Review supply • Tight control of book1 by 25% finished leading to chain to reduce costs and working (over FY18) stable production component costs capital • Conversion
Slide 29: Medium and Long Term
MEDIUM AND LONG TERM Medium-term Long-term • Demonstrate continued profitability • Continue to leverage R&D investment in new market-leading • Ongoing monetisation of past R&D technology platform investment • Develop DTI hardware as platform • Target continued increased in for multiple technology ap
Slide 30: Demonstration
g. Cameras Saloon Cameras —_ Audio Speakers. PEI Passenger Emergency intercom TDR-6 Digital Video Recorder Lee rE a (>) Yo) EDI Network (Ethernet) = = External Destination Indicator Switch DDU Driver Display Unit Possenger Main Control Panel Information Display PowerAmplifier 2@ y) DEMONSTRATION NI,
Slide 31: Pantograph Height and Stagger
PANTOGRAPH HEIGHT AND STAGGER 31
Slide 32: 360 Camera Dewarping
360⁰ CAMERA DEWARPING 32
Slide 33: Outlook
OUTLOOK 33
Slide 34: Outlook
OUTLOOK • Contracted order book1 of approx. $35.9 million • Gibela/PRASA contract provides strong market entry opportunity for South Africa • Identified Opportunity Pipeline of $329 million • Strong investment across all markets • Global market for mobile surveillance and PIS experiencing strong gro
Slide 35: Disclaimer
DISCLAIMER Reliance on third party information The information and views expressed in this presentation were prepared by DTI Group Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified. No representation or warra