Audinate Group Ltd. · ASX:AD8
Audinate — Shareholder Meeting (October 2017)
24 slides from Audinate's shareholder meeting presentation, Oct 27, 2017
Slide 1: 2017 Annual General Meeting
Audinate 2017 Annual General Meeting 27 October, 2017 1
Slide 2: Important notice and disclaimer
Important notice and disclaimer Disclaimer Past performance presentation. The non-IFRS information has not been subject to audit or review by Audinate's To the maximum extent permitted by law, none Past performance information, including past external auditor. The non-IFRS measures do of the Audinat
Slide 3: Annual General Meeting 2017
Annual General Meeting 2017 David Krall Chairman of the Board 3
Slide 4: Agenda
Agenda Welcome Chairman’s Address CEO’s Presentation Formal Business 4
Slide 5: Board of Directors
Board of Directors David Krall Lee Ellison Tim Finlayson Chairman of the Board Chief Executive Officer Non-Executive Director John Dyson Alison Ledger Roger Price Non-Executive Director Non-Executive Director Non-Executive Director 5
Slide 6: Highlights: Listing on the Australian Stock Exchange
Highlights: Listing on the Australian Stock Exchange • ASX Listing: 30 June, 2017 (“AD8”) • $21,000,000 capital raise • $14.0M primary capital • $7.0M secondary capital • Market cap of $120M* *(as of 24 October, 2017) 6
Slide 7: Dante distributes high quality digital audio signals over computer networks
Dante distributes high quality digital audio signals over computer networks Conference Casinos Stadiums Rooms Churches Parliament Hotels Transport Education Cruise Ships Concerts & Theatre Audio Is Everywhere So is Audinate 7
Slide 8: Leading the digital transformation of the AV industry
Leading the digital transformation of the AV industry Audinate Customers products (OEM Brands) OEM Products Chips Modules Cards Software 8
Slide 9: Audinate is the dominant global supplier of digital audio networking
Audinate is the dominant global supplier of digital audio networking • Audinate is the leading supplier of digital audio networking for the Professional AV industry • Audinate’s market leading Dante networking has been adopted by over 380 OEM brands • More than 5x OEM products available on the marke
Slide 10: Financial highlights – FY17
Financial highlights – FY17 $0.8M $0.3M 30% better than statutory $1.2M $14M growth in prospectus EBITDA in positive revenue to forecast pro in primary compared to operating USD 11.3M forma with capital raised $0.1M loss cashflow EBITDA loss pcp* of ($0.4M) *Statutory EBITDA excludes the one-off imp
Slide 11: Lee Ellison, Chief Executive Officer
Lee Ellison Chief Executive Officer 11
Slide 12: Benefits of Dante
Benefits of Dante Analogue signal distribution Rapid product development Commercially supported, turnkey solution for OEMs, with unsurpassed networking expertise Plug and play Auto discovery with one-click routing and stored network configuration Simplified connection management Simple, logical user
Slide 13: Operational highlights – FY17
Operational highlights – FY17 35% 48% Dante 39,000 369 growth in growth in Broadway online OEM brands Dante- hardware and Dante certification adopted enabled units shipped Adaptors courses Dante products to 180k launched delivered 13 Westfield Mall Shopping Centre- London, England
Slide 14: Strong growth in revenue and units shipped
Strong growth in revenue and units shipped Revenue (USD$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 $4.8 20% 40 $2 10% 20 $-
Slide 15: Number of Dante-enabled products
Leveraging the network effect Total Dante-enabled products available 1,400 1232 1182 1,200 Number of Dante-enabled products 1077 973 1,000 925 874 771 800 681 633 600 553 383 400 319 348 223 181 200 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Note: per calendar quart
Slide 16: Increasing customer adoption: Pipeline for growth
Increasing customer adoption: Pipeline for growth Total customers and customers with Dante-enabled products available Customers with Dante-enabled products available Total customers 383 346 258 189 180 185 170 153 160 144 120 129 106 109 93 64 73 80 52 44 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
Slide 17: Marketing initiatives – FY18
Marketing initiatives – FY18 • Work closely with OEM partners to increase penetration, and expand the Dante ecosystem to take advantage of the network effect • Drive market awareness and increase adoption of Dante among consultants, system integrators, and end customers • Expand sales, marketing and
Slide 18: Operational initiatives – FY18
Operational initiatives – FY18 • Investing in new product development initiatives to double the addressable market size • Introduce Dante Domain Manager software platform offering a suite of services to better manage, control and secure Dante-enabled networks • Launch cost-effective adapters to incr
Slide 19: Dante Domain Manager™
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 system status and changes
Slide 20: Dante Domain Manager opportunity
Dante Domain Manager opportunity Dante Domain Manager is Builds upon the OEM product ecosystem • A software product • Addresses customers felt needs • A system management tool • Additive revenue opportunity • For system integrators and end users • New channel • Sold into Dante installations • Comple
Slide 21: Revenue
Revenue Revenue (AUD $M) FY17 Revenue by region $20 18.6 $18 $16 15.1 $14 11.9 $12 Asia, 33% Americas, $10 Forecast 8.0 38% Actual $8 6.5 $6 $4 EMEA, 29% $2 $- FY14 FY15 FY16 FY17 FY18 • Audinate bills its customers in USD, therefore revenue is sensitive to FX fluctuations • Consistent record of str
Slide 22: Forecast – FY18
Forecast – FY18 A$('000) Forecast Year Ended 30 June FY18 • FY18 prospectus forecast was calculated using an Sales Revenue 18,552 AUD/USD exchange rate of 77c. The sensitivity to COGS (4,428) changes in exchange rates is summarised in the table below (per page 79 of the prospectus) Gross Profit 14,1
Slide 23: Summary
Summary Global market leader Significant market opportunity Dominant position as global AV market currently 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 closest competitor capitalise o
Slide 24: Meeting close
Meeting close Thank you for joining us today and your continuing support of the Company. 35