Audinate Group Ltd. · ASX:AD8
Audinate — Shareholder Meeting (October 2024)
36 slides from Audinate's shareholder meeting presentation, Oct 22, 2024
Slide 1: Audinate FY24 Annual General Meeting
Audinate FY24 Annual General Meeting Authorisation: approved by the Board 22 October 2024 of Audinate Group Limited
Slide 2: Agenda
AGENDA • Welcome • Chairman’s Presentation • CEO’s Presentation • Formal Business • Notice of Meeting and voting procedure • Financial Reports, questions and comments • Resolutions 1 to 4 • Meeting Close 2024 Annual General Meeting 2
Slide 3: Chairman's Presentation
Chairman’s Presentation 2024 Annual General Meeting 3
Slide 4: Achievement FY24
Achievement FY24 FY24 OUTCOME TARGET A$91.5M FY21 (US$60M) Double revenue over medium- A$33.4M term (US$25M) 2024 Annual General Meeting 4
Slide 5: Key Strategic Pillars
Key Strategic Pillars Strengthen Grow Control & Audio Video Management • Expand into lower cost • Continue to build out video • Vision: interoperable control higher volume products platform capability and management of Dante networks, from anywhere • Shift to software • Ongoing focus on design wins
Slide 6: Entering FY24
Entering FY24 Macro Environment Covid Bump Chip in end-user Shortages spending Record Backlog Levels 2024 Annual General Meeting 66
Slide 7: First Half of FY24
First Half of FY24 Macro Environment Easing End Chip User Demand Availability Increasing OEM Inventory Levels 2024 Annual General Meeting 77
Slide 8: Market Opportunity and Long-Term Prospects Unchanged
Market Opportunity and Long-Term Prospects Unchanged Audinate TAM: 2023 Annual General Meeting • Market Opportunity Unchanged: analysis did not reveal any factors that would alter the total market opportunity or TAM for Audinate • Confident in Market Share: no reason to believe that Audinate will ca
Slide 9: FY25 Underway…
FY25 Underway… Continue to focus on our new products like Dante Director …balanced with financial outcomes … and potential M&A activity 2024 Annual General Meeting 9
Slide 10: CEO's Presentation
CEO’s Presentation 2024 Annual General Meeting 10
Slide 11: World-leading Technology Supplier to Pro-AV
World-leading Technology Supplier to Pro-AV Audinate is the company behind the Dante® media networking solution used in the professional AV industry 660 4,176 Total OEM 13 Dante-enabled brands licensing Locations Poland products Dante products USA UK Belgium Japan France China Mexico Germany Hong Ko
Slide 12: FY24 Gross Profit Growth Accelerates
FY24 Gross Profit Growth Accelerates Variance Other Financial Metrics US$M Gross Profit vs FY23 $50M 98.0% $44.5 $45M A$91.5M Revenue 31.3% $40M 93.0% $35M $33.4 US$60.0M US$ Revenue 28.4% 88.0% $30M $24.9 $25M 74.3% Gross Margin % 3.1% 83.0% $18.8 $20M $15.6 $15M 76.4% 78.0% A$20.4M EBITDA* 85.5% 7
Slide 13: FY24 Objectives Achieved
FY24 Objectives Achieved FY24 Objectives Achievements 1. Double the video ecosystem - Strong growth in 2H to substantially over-achieve target >30k video units-in-field or shipped - Next-generation Dante AV Ultra product complete (first OEM product shown at ISE) 2. Release additional video and cloud
Slide 14: Demand for Dante Remains Strong
Demand for Dante Remains Strong Dante Trained and Certified Professionals Interest in Dante continues to be strong across key metrics: (cumulative) 271k AV professionals trained on Dante grew 22% 223k 183k 150k Units of retail software sold to AV professionals up 22%1 120k Downloads of Dante Control
Slide 15: Leading Global Supplier of AV Networking
Leading Global Supplier of AV Networking Total audio products per protocol 660 4500 "Over the past 12 months Dante 4,176 >US$2bn OEM brands again increased it’s dominance in Total addressable audio networking technology. An shipping Dante 4000 market order of magnitude more products enabled products
Slide 16: Ongoing traction in Video
Ongoing traction in Video In FY24 we have… Achieved FY24 objective to double the video ecosystem (target substantially over-achieved) 54 Dante AV partners / OEMs licenced for video up from 34 at FY23 84 Dante video products launched by customers at the end of FY24, up from 48 products at FY23 Next-g
Slide 17: Driving Revenue: FY25 Priorities
Driving Revenue FY25 Priorities 1 2 3 4 Double down on sales Get customer video Successfully deliver Dante Director - & marketing activities products to market new Dante products to ongoing development to drive revenue with repeat orders broaden revenue base of technology and infrastructure 2024 Ann
Slide 18: FY25 Outlook Global AV Industry Size
FY25 Outlook Global AV Industry Size 2023 2029 US$306 US$422 Customer re-balancing of inventory holdings and rate of OEM’s clearing raw materials to influence revenue BILLION Shorter order lead times – now back to pre-COVID 2024 BILLION levels US$325 Ongoing customer preference for software-based BI
Slide 19: Q1 Trading Update
Q1 TRADING UPDATE • Audinate delivered unaudited gross profit of US$7.2 million Long-term strategic thesis for Audinate remains strong (A$10.6M) in Q1 FY25 • Expanding Dante Device Base - 6 million+ devices in use and • Factors affecting Q1 performance - shorter order lead times, more than 1 million
Slide 20: Welcome Our Recent New Hires to Audinate
Welcome Our Recent New Hires to Audinate Chris Rollinson Nick Peace Tim Neal Chief Financial Officer Chief Strategy Officer Vice President, Digital Services & Company Secretary 2024 Annual General Meeting 20
Slide 21: Appendix
Appendix 21
Slide 22: Investment Highlights
Investment Highlights Global Market Attractive Financial Innovative Large Market Strong Customer Base Experienced Leader Profile Products Opportunity Management Dominant position Gross margins >74% Broad intellectual AV just starting digital Existing customer base of Founder-led as de-facto supporte
Slide 23: FY24 ESG Highlights
FY24 ESG Highlights Employee Engagement Supporting Diversity Supply Chain Cyber Security Environment & Wellbeing Families & Inclusion Management Management Preparation for climate- Top quartile Over the past two years, 14 Females represent 26% of Regular audit of key Strengthened IT, privacy related
Slide 24: Formal Business
Formal Business 2024 Annual General Meeting 24
Slide 25: Meeting Procedure
Meeting Procedure • Quorum • Notice of Meeting - taken as read • Voting Procedure • YELLOW CARDS indicates a voting shareholder or proxy holder or duly appointed representatives for the Meeting. You may comment, ask questions and vote at the Meeting. • BLUE CARDS indicates a non-voting shareholder.
Slide 26: Consideration of Reports (General Q&A)
Consideration of Reports (General Q&A) • The 2024 Annual Report contains the Financial Report, Directors’ Report and the Independent Auditor’s Report. • This item is the receipt and consideration of the Reports of Audinate Group Limited. This is not a resolution. • General questions or comments abou
Slide 27: Resolution 1: Re-election of Director – Mr Tim Finlayson
Resolution 1: Re-election of Director – Mr Tim Finlayson That for the purposes of clause 15.6 of the Company’s Constitution and for all other purposes, Tim Finlayson, who retires and being eligible, is re-elected as a Director of the Company. 2024 Annual General Meeting 27
Slide 28: Resolution 1: Re-election of Director – Mr Tim Finlayson
Resolution 1: Re-election of Director – Mr Tim Finlayson Proxy Results FOR 36,035,095 (96.06%) AGAINST 1,254,155 (3.34%) OPEN 224,427 (0.60%) ABSTAIN 37,099 2024 Annual General Meeting 28
Slide 29: Resolution 2: Re-election of Director – Mr John Dyson
Resolution 2: Re-election of Director – Mr John Dyson That for the purposes of clause 15.6 of the Company’s Constitution and for all other purposes, Mr John Dyson, who retires and being eligible, is re- elected as a Director of the Company. 2024 Annual General Meeting 29
Slide 30: Resolution 2: Re-election of Director – Mr John Dyson
Resolution 2: Re-election of Director – Mr John Dyson Proxy Results FOR 34,916,266 (93.08%) AGAINST 2,372,984 (6.33%) OPEN 224,427 (0.60%) ABSTAIN 37,099 2024 Annual General Meeting 30
Slide 31: Resolution 3: Remuneration Report
Resolution 3: Remuneration Report That for the purposes of section 250R(2) of the Corporations Act and for all other purposes, the Company’s Remuneration Report for the financial year ended 30 June 2024, as set out in the Directors’ Report, be adopted. 2024 Annual General Meeting 31
Slide 32: Resolution 3: Remuneration Report
Resolution 3: Remuneration Report Proxy Results FOR 36,912,091 (98.89%) AGAINST 191,716 (0.51%) OPEN 222,707 (0.60%) ABSTAIN 69,254 2024 Annual General Meeting 32
Slide 33: Resolution 4: Issue of Performance Rights to CEO
Resolution 4: Issue of Performance Rights to CEO That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, the issue of 89,201 Performance Rights to Mr Aidan Williams under the Audinate Long Term Incentive Plan on the terms described in the Explanatory Memorandum which forms part
Slide 34: Resolution 4: Issue of Performance Rights to CEO
Resolution 4: Issue of Performance Rights to CEO Proxy Results FOR 36,951,004 (98.88%) AGAINST 197,335 (0.53%) OPEN 223,027 (0.60%) ABSTAIN 24,402 2024 Annual General Meeting 34
Slide 35: Questions?
Questions? 2024 Annual General Meeting 35
Slide 36: Thank you for joining us today
Thank you for joining us today 2024 Annual General Meeting 36