Swift Tv Limited · ASX:STV
Swift Tv — Investor Presentation (December 2018)
39 slides from Swift Tv's investor presentation, Dec 21, 2018
Slide 1: Acquisition of Medical Media
NETWORKS Acquisition of Medical Media December 2018 Swift Networks Group Limited (ASX: SW1)
Slide 2: Investor presentation December 2018
NETWORKS Investor presentation December 2018 | ASX: SW1 2
Slide 3: Executive Summary
WHO WE ARE: Swift Networks Group is a diversified media business: • Swift’s premium content from the world’s leading studios plus the customised information systems provide an engagement platform between our clients and their guests. 4-10 • Swift has positioned itself to own closed loop environments
Slide 4: The Story So Far
THE STORY SO FAR S W I F T O V E R V I E W 4
Slide 5: Introduction
#1 Media Company #6 Technology Company INTRODUCTION WHO WE ARE • Swift Networks Group is a diversified media business. World-class content delivered • Swift delivers customised content, communications and targeted advertising across to... secure closed networks. • Swift’s premium content from the wo
Slide 6: Who We Are
Trading Information 19 December 2018 Networks Group Limited (ASX: SW1) Share price $0.240 Shares quoted on the ASX 121,312,903 Carl Clump Non-Executive Chairman (Stepping Down) Xavier Kris Chief Executive Officer Market Cap (free float) $29,115,097 Paul Doropoulos Non-Executive Director Performance
Slide 7: Evolution of Swift's Platform
EXPANDING AUDIENCE + PREMIUM ADVERTISING = 2018 HIGHER MULTIPLE OF REVENUE GROWTH EVOLUTION OF SWIFT’S PLATFORM. CONTENT AUDIENCE With continued advances in technology, content and WORLD CLASS CONTENT MULTIPLE VERTICALS audiences since listing, Swift is now in a position to leverage this foundation
Slide 8: Premium Content. Global Reach.
PREMIUM CONTENT. GLOBAL REACH. Swift delivers premium content with international distribution rights from major content providers globally. Each interaction with the Swift system will feature a non-skippable pre-roll advertising opportunity. When movies or content are being viewed via a mobile devic
Slide 9: Large Screens + Mobile Devices + Engaging Technology = Premium Advertising Inventory
LARGE SCREENS + MOBILE DEVICES + ENGAGING TECHNOLOGY = PREMIUM ADVERTISING INVENTORY. WHO WE ARE SMART TV OR SET TOP BOX Welcome to Swiftville allows users to access information within a facility Premium entertainment on demand. Movies, TV SWIFT MOBILE at the touch of a button and allows venues to s
Slide 10: Data Rich Audiences
DATA RICH AUDIENCES EVERY CLICK TELLS A STORY. “SWIFT WILL GENERATE WHO WE ARE 190 MILLION USER INTERACTIONS IN THE NEXT 12 MONTHS.” Swift Networks can provide Research from stockbroking group Hartleys, advertisers with a much larger (released in November 2018), projected that Swift’s deployed rooms
Slide 11: Our Results
OUR RESULTS OUR RESULTS S W I F T O V E R V I E W 11
Slide 12: 900% Increase in Sites Since Listing in 2016
RAPID GROWTH AND AUDIENCE DIVERSIFICATION CONTINUES... 900% INCREASE IN SITES SINCE 2017 2018 LISTING IN 2016. HOSPITALITY AGED CARE RESOURCES OTHER OUR RESULTS The last 24 months has seen rapid growth in deployments, both in Australia and overseas. In line with its corporate strategy since listing,
Slide 13: $4.15 million EBITDA Turnaround
OUR RESULTS: CONTINUED HIGH GROWTH $4.15 million PERFORMANCE. EBITDA FY2018 FY2017 FY2016 Turnaround. • Scalable business model $m $m $m Change • Doubling of EBITDA margin year on year Total Revenue 22.28 17.00 14.44 54% OUR RESULTS Gross Margin 9.26 5.34 1.66 458% 89% Annualised EBITDA * 2.67 1.01
Slide 14: A Track Record of Building Target Audiences
A TRACK RECORD OF BUILDING TARGET AUDIENCES THROUGH ORGANIC GROWTH AND ACQUISITION. October 2017 January 2018 April 2018 May 2018 June 2018 July 2018 September 2018 December 2018 December 2018 Swift signs Swift wins Swift expands in Swift wins St Swift wins AST partnership Swift secures exclusive Sw
Slide 15: Our Strategy
OUR STRATEGY OUR STRATEGY S W I F T O V E R V I E W 15
Slide 16: Owning Closed Loop Environments
OWNING SWIFT FOCUSES ON OWNING FAST GROWING, CLOSED LOOP, OUT OF HOME MARKET VERTICALS. CLOSED LOOP ENVIRONMENTS HOTELS RESOURCES Currently the Swift platform is deployed on 4 continents in the Resources, Maritime, Aged Care, Retirement Living, Hospitality, Student Accommodation, Health and Governme
Slide 17: Growth Strategy: Phase
GROWTH STRATEGY: 1 PHASE 1 GROW THE CORE 2 PHASE 2 EXPAND CAPABILITIES 3 PHASE 3 DRIVE Optimise network/base via new & AUDIENCE technologies and analytics platforms. Apply to external opportunities (i.e. SaaS) ARTIFICIAL INTELLIGENCE OUR STRATEGY MEDICAL MEDIA INORGANIC GROWTH ACQUIRE NEW AUDIENCES
Slide 18: Medical Media
EST 2013 MEDICAL MEDIA MEDICAL MEDIA 18
Slide 19: Expanding the Audience
EXPANDING THE AUDIENCE MEDICAL MEDIA ESTIMATED 25% OF CURRENT GP MARKET IN AUSTRALIA. MEDICAL MEDIA 2800+ ADVERTISERS 2300+ SCREENS AUDIENCE OVER 5 MILLION EACH MONTH 19
Slide 20: Medical Media at a Glance
EST 2013 MEDICAL MEDIA AT A GLANCE LOCAL AND NATIONAL ADVERTISERS DELIVERED TO MEDICAL PRACTICES. CONTENT REACHING $7.4M OF OVER 5 ADVERTSING MILLION REVENUES MEDICAL MEDIA VIEWERS in FY18 up from $5.2m in FY17 EVERY MONTH PORTFOLIO OF GROWING NUMBER OF AN EXTENSIVE NETWORK OF EXISTING ADVERTISER RE
Slide 21: Messaging and Integrated Advertising Delivered in Waiting Rooms
MESSAGING AND INTEGRATED ADVERTISING DELIVERED IN WAITING ROOMS. 1,900 SCREENS IN OVER 1,400 MEDICAL MEDICAL MEDIA PRACTICES NATIONALLY REACHING CONSUMERS FOR EXTENDED DURATIONS IN A LOW DISTRACTION TRUSTED ENVIRONMENT. • The average medical practice will see 2,850 patients per month. • Efficient, l
Slide 22: DOOH or Die
DIGITAL OUT OF HOME DOOH OR DIE Swift Media is ideally positioned to capitalise on the growing OOH advertising market. RECENT DOOH M&A ACTIVITY IN THE MARKET HAS In recent months, businesses in the same market have been valued at multiples of up GENERATED PREMIUM VALUE: to 13.5x EBIDTA. THE RISE OF
Slide 23: Hyper-Local Advertisers
ESTABLISHED BREAKDOWN BY NETWORK OF ADVERTISER TYPE FY18 REVENUE BREAKDOWN BY SCREENS 91% ADVERTISER TYPE FY2018 Professional Trades 7% Hair & Beauty 6% Services MEDICAL MEDIA 9% Education & Learning 6% SCREEN Automotive Domestic BREAKDOWN BY HYPER-LOCAL 11% EXPANDING VERTICALS ADVERTISERS ADVERTISE
Slide 24: Medical Media Business Model
MEDICAL MEDIA BUSINESS MODEL 1 ESTABLISH SCREENS 2 SELL CONTEXTUAL ADVERTISING 3 ENGAGE CONSUMER MEDICAL MEDIA • Medical Media places screens at its cost within • Advertisers are offered different plans based on • Steady content loop to enhance viewer medical practices ads per screen per week / per
Slide 25: Medical Media Growth
MEDICAL MEDIA GROWTH STRONG GROWTH IN NETWORK & ADS * 2,000 FY13 TO FY18 FY13 TO FY18 MEDICAL MEDIA NUMBER OF SCREENS 1,500 $AUD PER SCREEN 4,000 1,000 3,000 $AUD P.A. PER SCREEN 2,000 500 # OF SCREENS 1,000 0 0 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 *Medical Media shifts focus
Slide 26: Medical Media's Strong Foundations
MEDICAL MEDIA’S STRONG FOUNDATIONS BARRIERS TO ENTRY STICKY CUSTOMERS MEDICAL MEDIA • Market penetration in the highly contested GP vertical: • Medium to long term agreements with GPs with automatic rollover. »» Medical Media has 25% target market of GP practices with 2 GP’s and above; and • Typical
Slide 27: Transaction Overview
TRANSACTION OVERVIEW TRANSACTION OVERVIEW PROPOSED ACQUISITION OF MEDICAL MEDIA 27
Slide 28: Introducing...
Introducing... TRANSACTION OVERVIEW • WORLD CLASS • ADVERTISING CONTENT CAPABILITY • ENGAGING • CAPTIVATED TECHNOLOGY AUDIENCE • CAPTIVATED • NETWORK OF AUDIENCE SCREENS 28
Slide 29: Transaction Overview
TRANSACTION OVERVIEW Swift is acquiring Medical Media for $25m, with an initial $4.5m in scrip and an additional $20.5m in Performance Shares to be issued subject to certain advertising revenue targets. STRUCTURE DIRECTORS (Swift Board) • Swift will purchase all the outstanding shares in Medical Cha
Slide 30: Valuation Metrics
VALUATION METRICS MEDICAL MEDIA TRANSACTION OVERVIEW CONSIDERATION A$M ADVERTISING REVENUE TARGET A$M Upfront 4.5 N/a Implied multiple is not more than 6X earnings Class C 5.5 10.0 for every milestone and significantly lower than recent M&A activity in Digital Out Of Class D 5.0 11.0 Home sector. Cl
Slide 31: Swift Capital Structure
SWIFT CAPITAL STRUCTURE PRE-TRANSACTION MEDICAL MEDIA VENDORS POST-TRANSACTION Ordinary shares 121,312,903 14,950,166 136,263,069 Performance shares 38,382,428 68,106,313 106,488,741 Options 8,892,156 - 8,892,156 Total 168,587,487 83,056,479 251,643,966 TRANSACTION OVERVIEW • 14.950m ordinary shares
Slide 32: Funding
FUNDING • Swift will fund 100% of the acquisition of Medical Media via the issuance of shares in Swift. • Swift will enter into a new banking facility from a tier-one lender for $6m (including $1.5m in contingent instruments) that will replace the existing $3m Bankwest banking facility. In conjuncti
Slide 33: Strategic Synergies
MEDIA STRATEGIC SYNERGIES TRANSACTION OVERVIEW MEDICAL MEDIA BRINGS BENEFITS TO SWIFT NETWORKS BRINGS BENEFITS THE SWIFT NETWORK TO THE MEDICAL MEDIA NETWORK • Expertise in DOOH advertising, the fastest • Extensive premium content library growing ad sector • Subscription revenue model • Significant
Slide 34: Merger Benefits
MERGER BENEFITS ACCRETIVE TRANSACTION THAT ACCELERATES GROWTH ACROSS ALL AREAS OF THE INTEGRATED BUSINESS COST REDUCTION KEY PERFORMANCE • Use Swift’s premium content in Medical Media’s screens. INDICATORS TRANSACTION OVERVIEW • Leverage combined scale to reduce supply costs. • Integrate operations
Slide 35: Merger Optimisation Through Technology
• Self-creation video advertising tool to generate incremental revenue through third party advertising. MERGER STATUS: CONTRACT AGREED OPTIMISATION TRANSACTION OVERVIEW • Offer audiences the ability to listen to the video audio, via proprietary technology in THROUGH Swift’s downloadable App. STATUS:
Slide 36: Board Changes
BOARD CHANGES TRANSACTION OVERVIEW DARREN SMORGON CARL CLUMP XAVIER KRIS NEW NON EXECUTIVE DIRECTOR NON EXECUTIVE CHAIRMAN CEO AND STEPPING DOWN FOR PERSONAL REASONS INTERIM EXECUTIVE CHAIRMAN Darren Smorgon is Managing Director of Carl Clump will take this opportunity Appointed as CEO of Swift Netw
Slide 37: Summary
SUMMARY 1. Swift continues to deliver on its strategic plan since listing, becoming a fully-fledged media business. 2. Acquisition of Medical Media provides scale with another captive audience and advertising capability. 3. Ideal combination of premium content, best of class technology and intellige
Slide 38: Networks
networks This presentation has been prepared by Swift Networks Group Limited ABN 54 006 222 395 (ASX: SW1) (“Swift”) in relation to the acquisition of the Medical Media business via acquiring all of the shares in Medical Channel Pty Ltd (“Transaction”). Summary information: The information contained
Slide 39: Networks
networks For more information, please contact: Xavier Kris George Nicholls Chief Executive Officer Chief Financial Officer www.swiftnetworks.com.au t: +61 8 6103 7595 t: +61 8 6103 7595 e: investor@swiftnetworks.com.au e: investor@swiftnetworks.com.au