Slide 1: Growing Up to Growing Old: Capturing the family safety technology market
For personal use only Growing Up to Growing Old: Capturing the family safety technology market Spacetalk Limited (ASX:SPA) Investor Presentation August 2024 spacetalk.co
Slide 2: Parents share common concerns about raising kids
spacetalk.co Parents share common concerns about raising kids Spacetalk products address the safety and wellbeing needs of kids and parents For personal use only 59% 50% 43% of parents are of parents are of parents have concerned about their concerned about their concerns about their child’s social
Slide 3: Seniors want to remain independent for as long as possible
spacetalk.co Seniors want to remain independent for as long as possible Spacetalk products help the growing older population to stay at home safely for longer For personal use only By 2050, one in four Australians will be ~80% of Australians aged over 50 aged 65 years and over 2 want to age in place
Slide 4: From growing up to growing old, Spacetalk delivers family safety at every stage of life
spacetalk.co From growing up to growing old, Spacetalk delivers family safety at every stage of life For personal use only VISION Safety at every stage of life. Our unique Our unique ecosystem approach MISSION provides safety for the acquires whole families as To ensure family safety entire family.
Slide 5: Spacetalk is a family safety technology business
spacetalk.co Spacetalk is a family safety technology business that For personal use only develops and sells hardware and software products that address safety concerns at every stage of life Spacetalk Mobile is a MVNO that sells mobile plans that connect our products and families. Sp ac eta lk M ob
Slide 6: Product overview
spacetalk.co Spacetalk Loop Wearable Adventurer 2 Wearable Life Wearable Spacetalk Mobile Product overview For personal use only Spacetalk’s approach engages families early and is designed to retain them for Life MPERS Wearable Spacetalk Mobile life Adventurer 2 & Loop Wearables Seniors and workers
Slide 7: Turnaround complete and an exciting growth agenda for Spacetalk
spacetalk.co Turnaround complete and an exciting growth agenda for Spacetalk For personal use only Simon Crowther, The company has substantial, untapped opportunities to generate recurring revenue from CEO & MD software and hardware products. Joined February 2023 With a rapidly growing customer base
Slide 8: From transformation to growth
spacetalk.co From transformation to growth We have successfully reset and refocused the business and are now ramping up For personal use only etal s ac July 2023 August 2024 February 2023 ile ca mo etal o ile s ac m Spacetalk is a wearables Spacetalk is focused on Spacetalk was a consumer enabled so
Slide 9: Turnaround achievements
spacetalk.co Turnaround achievements Reset and Refocus February 2023 – July 2024 For personal use only In less than 17 months we have turned a FY23 loss of ~$14.6M into a Q4FY24 free cash flow of ~$0.3M and completely transformed the business. Cost Growth Product Selected › Team: Reduced headcount f
Slide 10: Ramp up: market expansion and product development
spacetalk.co Ramp up Spacetalk is focused on market expansion and product development For personal use only Growth Platforms Market Expansion › Growing international markets with new and active channel partners Growth Strategy Delivery › Product: Spacetalk App to increase customer lifetime value and
Slide 11: Growth strategy: significant growth opportunities
spacetalk.co Growth Significant growth opportunities strategy Spacetalk is delivering a multi-platform growth strategy… For personal use only Geographic Market Expansion Increase Customer Lifetime Value Seniors Market Development Targeted Marketing & Engagement Spacetalk has taken the first step to
Slide 12: Spacetalk product suite & market opportunity
For personal use only spacetalk.co Spacetalk product suite & market opportunity al ca et ile ac o s l m eta ac s ile o m spacetalk.co
Slide 13: Market opportunity: addressing family safety needs
spacetalk.co Market opportunity Addressing family safety needs For personal use only 01. 02. 03. Young Families Workers Seniors I want to keep my kids safe, I want to ensure the safety I want to remain independent, but give them the freedom to of my workers, particularly but ensure I am safe and can
Slide 14: Kids Wearables
Parents choose Spacetalk for a range of reasons: spacetalk.co • Connectivity before kids are old enough for a phone Kids • User by kids that are too young for their first phone, but need to stay in contact as they grow up Wearables • Independence and peace of mind Features: Spacetalk kids wearables
Slide 15: Seniors and their families choose Spacetalk
Seniors and their families choose Spacetalk for a spacetalk.co number of reasons: Adult • Government Funding Employers choose our Life wearable device Wearables • 100% funded* by NDIS and Commonwealth Homecare Support Programme (CHSP). because of reliability and versatility: Spacetalk Life wearables
Slide 16: Spacetalk App
spacetalk.co Spacetalk App Spacetalk app has been downloaded over 420,000 times and scores 4.6 out of 5 stars from 3,000+ ratings. For personal use only At the centre of the product ecosystem our app is the heart of the Spacetalk customer experience. • Parents use the app to connect to Spacetalk wea
Slide 17: Product Development
spacetalk.co Product Development Updated Spacetalk app will be a growth engine driving both user acquisition and retention For personal use only Any smart hone can e aired with S acetal ’s refreshed a and connected with S acetal Mo ile lans S acetal ’s value ro osition of freedom and eace of mind no
Slide 18: Spacetalk Mobile connects whole families
spacetalk.co Spacetalk Mobile connects whole families Plans connect Spacetalk wearable devices and connect kids when they get their first phone For personal use only Spacetalk Mobile is a Mobile Virtual Our Wearable Plans provide affordable, Network that operates on the Telstra reliable, connectivit
Slide 19: Go to market
spacetalk.co Go to market Spacetalk has an established and growing network of resellers, referrers and channel partners In addition to physical channels, investment into a new Shopify 2.0 platform, expert outsourced team and improved targeted marketing have set Spacetalk up for rapid ecommerce scale
Slide 20: Why we are different
spacetalk.co Why we are different Spacetalk has a number of unique points of difference in comparison to rivals For personal use only 01. 02. 03. Value Proposition Product Features Lifetime Value Engage families earlier School Mode Product Ecosystem Spacetalk products work together as a value Kids h
Slide 21: Financial Highlights
For personal use only spacetalk.co Financial Highlights spacetalk.co I N V E S TOR PR E S E N TA TI ON 21
Slide 22: Device Revenue
spacetalk.co Device Revenue Device Revenue up 30% For personal use only • Device Sales Growth #: Device sales grew by 18% year-on-year, from 38K units in FY23 to 45K units in FY24, predominately due to the increase in units due to the introduction of a budget (Loop) device. Device sales was the prim
Slide 23: Recurring revenue: App Revenue
spacetalk.co Recurring revenue: App Revenue # 45k - Total active App users (AU) For personal use only • Stable App User Base: Total active app users in Australia remained consistent at 85K year-on-year, reflecting a stable user base. However, our strategic focus has been on migrating users to mobile
Slide 24: Recurring Revenue: Mobile Revenue
spacetalk.co Recurring Revenue: Mobile Revenue Strong Subscriber Growth and Revenue Expansion in Spacetalk Mobile Subscriber Growth: For personal use only • The number of paying mobile subscribers more than doubled, growing by 107% from 15K in FY23 to 31K in FY24. This substantial increase reflects
Slide 25: Driving Revenue & Engagement through Strategic Mobile Expansion
spacetalk.co Driving Revenue & Engagement through Strategic Mobile Expansion Enhancing Customer Value and Ecosystem Integration For personal use only • Introduction and Success of Spacetalk Mobile: Spacetalk Mobile has significantly enhanced our ecosystem, with paying mobile subscribers doubling fro
Slide 26: Recurring Revenue: School Revenue
spacetalk.co Recurring Revenue: School Revenue Stable Gross Profit Margins For personal use only • Number of Schools: The number of schools utilizing Spacetalk services saw a slight decline of 3%, reducing from 1,133 in FY23 to 1,102 in FY24. • School Revenue: Correspondingly, school revenue experie
Slide 27: Spacetalk - Recurring Revenue streams
spacetalk.co Spacetalk - Recurring Revenue streams Focus on building a strong recurring revenue model For personal use only Recurring Revenue Streams: ARR Growth • App Subscriptions: ($2.4M) 10 9.7 The app enhances device functionality, driving user engagement and increasing 9 8.3 recurring subscrip
Slide 28: Revenue and gross profit summary
spacetalk.co Spacetalk - Revenue and gross profit summary Strong recurring revenue growth For personal use only • Revenue Growth: Overall revenue increased by 33%, from $13.46M in FY23 to $17.9M in FY24, driven by strong performance in mobile and device segments. • Mobile Revenue Increase: 13,455 Mo
Slide 29: Highlights: Profit and Loss
spacetalk.co Highlights : Profit and Loss Moving towards sustainable profitability For personal use only • Revenue from Continuing Operations: Revenue increased from $13.5M in FY23 to $17.9M in FY24, representing a 33% growth. This increase was driven by strong performance in both mobile services an
Slide 30: Progressing Towards Profitability
spacetalk.co Progressing Towards Profitability Demonstrating improved financial health and efficiency EBITDA: Half on half FY23 to FY24 For personal use only • EBITDA losses narrowed significantly from neg ($8.4M) in FY23 to neg($3.4M) in FY24, achieving a 59.5% improvement. The substantial reductio
Slide 31: Highlights: Cash Flow
spacetalk.co Highlights: Cash Flow Turning the Tide: Cash Flow Improvement For personal use only • Receipts from Customers: Receipts slightly decreased by 2% from $17.8M in FY23 to $17.4M in FY24. This decline reflects our strategic decision to exit less profitable operations and focus on more susta
Slide 32: Highlights: Cash Flow - Last 5 Quarters
spacetalk.co Highlights: Cash Flow Demonstrating improved financial health and efficiency Last 5 Quarters For personal use only • Consistent Improvement: FY23 to FY24 The pace of change in our cash flow has been consistently positive over the last five quarters. From Q4 FY23 to Q4 FY24, we have succ
Slide 33: Highlights: Balance Sheet
spacetalk.co Highlights: Balance Sheet Successful refinancing and extending borrowing For personal use only • Inventory Reduction: Inventory levels significantly decreased by 41%, from $2.6M in FY23 to $1.5M in FY24. This reduction aligns with our focus on better supply chain management and more acc
Slide 34: Successful Refinancing
spacetalk.co Successful Refinancing Our lender supporting our growth plans Refinancing and extension of loan facility provides us with significant financial flexibility For personal use only • Restructuring of loan repayments Significantly reduces financial risk and allows for greater investments in
Slide 35: Appendices
For personal use only spacetalk.co Appendices spacetalk.co I N VI ENSVTEOSRT OP RR EOS V E ENRT V A ITEI W ON 35
Slide 36: Experienced leadership team
spacetalk.co Experienced leadership team Our team have worked together before and have a track record of building global businesses and delivering outsized ASX growth. For personal use only Craig Gerhard Boshier, Beukes, COO CFO Joined February 2023 Joined January 2024 Gerhard is a seasoned entrepre
Slide 37: Market opportunity: demographic and technology growth markets
spacetalk.co Market opportunity Spacetalk is targeting demographic and technology growth markets $110B TAM Opportunity areas highlighted in red are For personal use only Parental Control Software Market extremely high growth software markets. $89.5B TAM USD$2.6B (2027) Illustrative example of market
Slide 38: Product ecosystem funding
spacetalk.co Product ecosystem funding Spacetalk products have utility across segments and can attract government funding For personal use only Kids wearables Spacetalk App Spacetalk Mobile Young Families s acetal mo ile s acetal mo ile ca Loop Adventurer Seniors wearables Spacetalk App Spacetalk Mo
Slide 39: Important legal information
spacetalk.co Important legal information This presentation has been prepared by Spacetalk Ltd. (“Spacetalk,” or “Company,” or “SPA”). For personal use only This presentation: • has been prepared in good faith and with reasonable care. Neither SPA nor any other person makes any representation or warr
Slide 40: Spacetalk Limited contact
For personal use only Spacetalk Limited (ASX:SPA) Investor Presentation August 2024 Simon Crowther CEO and Managing Director investors@spacetalk.co Follow us for updates: https://investorhub.spacetalk.co
Slide 41: For personal use only
For personal use only spacetalk.co spacetalk.com I N V E S T O R O VE R V I E W 41