Catapult Sports Ltd. · ASX:CAT
Catapult Sports — Merger or Acquisition (June 2021)
48 slides from Catapult Sports's merger presentation, Jun 23, 2021
Slide 1: Strategic Acquisition of SBG to Accelerate Growth
NOT FOR RELEASE TO US WIRE SERVICES OR DISTRIBUTION IN THE UNITED STATES STRATEGIC ACQUISITION OF SBG TO ACCELERATE GROWTH June 23, 2021 Will Lopes Chief Executive Officer Hayden Stockdale Chief Financial Officer CATAPULTSPORTS.COM
Slide 2: Important Notices and Disclaimers
SBG ACQUISITION IMPORTANT NOTICES AND DISCLAIMERS This presentation (Presentation) is dated June 23, 2021 and has been prepared by Catapult Group International Limited (ABN 53 164 301 197) (Company or Catapult). By accessing or attending this presentation, you acknowledge and agree to the terms set
Slide 3: Important Notices and Disclaimers (Cont.)
SBG ACQUISITION IMPORTANT NOTICES AND DISCLAIMERS (CONT.) KEY ASSUMPTIONS Certain information in this presentation, particularly forward looking information, is based on general and specific assumptions. General assumptions include those customary when preparing such information, including no materi
Slide 4: Important Notices and Disclaimers (Cont.)
SBG ACQUISITION IMPORTANT NOTICES AND DISCLAIMERS (CONT.) THIRD PARTY INFORMATION AND MARKET DATA This presentation contains information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, reliabil
Slide 5: Key Highlights
SBG ACQUISITION KEY HIGHLIGHTS SBG Global Leader New Clients and Markets Next-Gen Technology Strong Financial Performance ACQUISITION ➔ Global leader of video and data ➔ Immediately adds 20 new marquee ➔ Improves time-to-market by ~2 ➔ Materially accretive analysis solutions to elite flow sports cli
Slide 6: Executive Summary
SBG ACQUISITION EXECUTIVE SUMMARY ➔ Strategic Acquisition of SBG Global leader of video and data analysis solutions to elite flow sports teams and motorsport • Improves time-to-market by ~2 years for contextualizing performance data in video • Creates significant workflow time savings for customer
Slide 7: Our Strategy to Drive Customer Value
SBG ACQUISITION OUR STRATEGY TO DRIVE CUSTOMER VALUE PLATFORM DATA CONTEXTUALIZATION GROWTH ➔ Platform of ➔ Data generates ➔ Contextualizing data ➔ Drives Customer solutions for new insights that helps coaches Value sports that support teams to understand addresses multiple relationship of data ➔ Tr
Slide 8: We Operate in a Large & Growing Global Sports Tech Market
SBG ACQUISITION WE OPERATE IN A LARGE & GROWING GLOBAL SPORTS TECH MARKET ➔ The global sports technology market was valued at $15.7 billion in 2020 and is expected to reach $40.2 billion by 2026, a CAGR of 17.5% ➔ Within this our core market segment of analytics and wearables is expected to reach $1
Slide 9: Strategic Acquisition of SBG
STRATEGIC ACQUISITION OF SBG CATAPULTSPORTS.COM
Slide 10: SBG Acquisition Summary
SBG ACQUISITION SBG ACQUISITION SUMMARY Strategic acquisition of video data solutions that accelerates growth in an Catapult is uniquely positioned to win unpenetrated section of our core market Success in cross-selling to Performance & Health customers SBG is the global leader of video and
Slide 11: SBG Fits and Accelerates Our Strategy
SBG ACQUISITION SBG FITS AND ACCELERATES OUR STRATEGY ➔ Accelerates development of contextualizing performance data in video Improves time to market by ~two years versus in-house development Complements development strategy for Vision ➔ Enhances our platform Accelerates the consolidation of ou
Slide 12: How SBG Accelerates Our ACV Growth
SBG ACQUISITION HOW SBG ACCELERATES OUR ACV GROWTH ➔ Accelerates our Tactics & Coaching ACV growth Significantly accelerates competitive position in video solutions for soccer and rugby Closes feature gaps necessary to drive ACV growth outside of NAM complementing Catapult’s current penetration
Slide 13: SBG Product Suite
SBG ACQUISITION SBG PRODUCT SUITE MatchTracker visualization ➔ MatchTracker Product for soccer and rugby that can import all the most relevant player tracking and event data in real-time to generate new and customizable metrics Visualizes complex performance data using field graphics intuitive t
Slide 14: SBG Leading Technology
SBG ACQUISITION SBG LEADING TECHNOLOGY ➔ Innovative leader in video and analytics for high data dependence motorsports 13 years of video technology advancements Single solution to capture vast amounts of live data and video High profile partners include Mercedes, BMW, Porsche, Audi Strong le
Slide 15: New Clients and Markets
SBG ACQUISITION NEW CLIENTS AND MARKETS ➔ Adds 20 new marquee clients from the top 100 teams in soccer and rugby ➔ The EPL and Bundesliga are two of the most competitive competitions in the world for new video and tactical analysis technologies. SBG and Catapult combined will have the following cust
Slide 16: SBG Strong Growth Trajectory
SBG ACQUISITION SBG STRONG GROWTH TRAJECTORY 6.0 100 ➔ Annual growth in soccer ACV 90 has averaged 130% over past 3 5.0 80 years 4.0 70 ➔ SBG have seen a remarkably 60 fast adoption of their technology in a mature market ACV US$M Clients 3.0 50 70% of EPL using at least one 40 product within 4 yea
Slide 17: SBG Significantly Exceeds the SaaS Rule of 40
SBG ACQUISITION SBG SIGNIFICANTLY EXCEEDS THE SAAS RULE OF 40 ➔ SBG acquisition is well supported by the Rule of 40 ➔ Our evidence-points support over-achieving on a Rule of 40 FY21 ACV growth of 28% and EBITDA margins Growth in the Vision customer base (our flow-sport video of 28% solution) of
Slide 18: SBG SaaS Metrics
SBG ACQUISITION SBG SAAS METRICS ➔ On a standalone basis, the SBG acquisition is materially accretive to Catapult’s ACV growth, ACV Churn, customer number growth, free cash flow, and all margins (including our Rule of 40 constituent metrics) ➔ Strong multi-solution customer acceptance: common SBG vi
Slide 19: Financial Impact
SBG ACQUISITION FINANCIAL IMPACT ➔ SBG’s revenue and ACV both grew by 28% in FY21 ➔ 100% of revenues are subscription ➔ We expect SBG’s ACV growth to accelerate through ➔ Positive free cash flow, EBITDA and NPAT despite significant investment in R&D as a percentage of revenue Its combination with
Slide 20: Accelerating Investment to Capture Growth
ACCELERATING INVESTMENT TO CAPTURE GROWTH CATAPULTSPORTS.COM
Slide 21: Accelerating Growth with an Increase in Capital Investment
SBG ACQUISITION ACCELERATING GROWTH WITH AN INCREASE IN CAPITAL INVESTMENT ➔ Equity raising to ensure Catapult is fully funded for its planned accelerated organic investment over the next two years ➔ Plan to invest $20-25M in organic growth opportunities over the next two years Support continued r
Slide 22: Outlook
SBG ACQUISITION OUTLOOK ➔ Confident SBG will support and improve our continued strong short- and medium-term ACV growth ➔ Potential to accelerate SBG’s revenue and ACV growth through: The combination of SBG with Catapult’s global sales force and large customer base, and An increased investment i
Slide 23: Equity Raising Summary
EQUITY RAISING SUMMARY CATAPULTSPORTS.COM
Slide 24: Sources and Uses of Funds
SBG ACQUISITION SOURCES AND USES OF FUNDS ➔ Proceeds of the placement and SPP will fund the SBG acquisition and an acceleration of investment in technology, product, data science, and scaling over the next two years, to capture further growth This includes investment to integrate and expand the co
Slide 25: Equity Raising Details
SBG ACQUISITION EQUITY RAISING DETAILS ➔ Offer structure and size: Underwritten placement of 24.5M Catapult shares to eligible investors to raise $35M (~A$47M) A Share Purchase Plan (SPP) to raise up to a further $5M(~A$7M) Subject to shareholder approval, a placement to independent non-execut
Slide 26: Timetable
SBG ACQUISITION TIMETABLE Event Date Announcement of Placement Wednesday, 23 June 2021 Announce completion of Placement and trading halt lifted Thursday, 24 June 2021 Settlement of New Shares Tuesday 29 June 2021 Allotment, quotation and trading of New Shares Wednesday, 30 June 2021 Timetable is ind
Slide 27: Appendices
APPENDICES CATAPULTSPORTS.COM
Slide 28: Appendix 1 – Summary of Key Risk Factors
SBG ACQUISITION APPENDIX 1 – SUMMARY OF KEY RISK FACTORS This section sets out some of the key risks associated with any investment in Catapult, together with risks relating to participating in the Placement which may affect the value of securities in Catapult. The risks are not set out in order of
Slide 29: Summary of Key Risk Factors (Cont.)
SBG ACQUISITION APPENDIX 1 – SUMMARY OF KEY RISK FACTORS (CONT.) ➔ Integration risk The integration of SBG carries numerous risks, including potential delays, additional unanticipated costs in implementing necessary changes, and difficulties in integrating various operations. These risks may be ex
Slide 30: Summary of Key Risk Factors (Cont.)
SBG ACQUISITION APPENDIX 1 – SUMMARY OF KEY RISK FACTORS (CONT.) ➔ Acquisition may not proceed There is a risk that the Acquisition may not complete on the current terms and expected timing, or at all due to, among other factors a failure to satisfy any of the conditions precedent to the share and
Slide 31: Summary of Key Risk Factors (Cont.)
SBG ACQUISITION APPENDIX 1 – SUMMARY OF KEY RISK FACTORS (CONT.) Operational risks ➔ COVID-19 risks The COVID-19 crisis has caused significant disruption in sports globally. As Catapult announced on March 27, 2020, the Company acted decisively to ensure the safety of all employees and customers, w
Slide 32: Summary of Key Risk Factors (Cont.)
SBG ACQUISITION APPENDIX 1 – SUMMARY OF KEY RISK FACTORS (CONT.) ➔ Technology and hosting platforms Catapult relies on third-party hosting providers to maintain continuous operation of its technology platforms, servers and hosting services and the cloud-based environment in which Catapult provides
Slide 33: Summary of Key Risk Factors (Cont.)
SBG ACQUISITION APPENDIX 1 – SUMMARY OF KEY RISK FACTORS (CONT.) ➔ Foreign exchange Foreign exchange rates are particularly important to Catapult’s business given the significant amount of revenue which Catapult derives outside Australia. Catapult’s financial statements are prepared and presented
Slide 34: Summary of Key Risk Factors (Cont.)
SBG ACQUISITION APPENDIX 1 – SUMMARY OF KEY RISK FACTORS (CONT.) ➔ Further product development risk Catapult has developed its athlete video and tracking technology and software products and continues to invest in further systems and product development. Catapult cannot be certain that further d
Slide 35: Summary of Key Risk Factors (Cont.)
SBG ACQUISITION APPENDIX 1 – SUMMARY OF KEY RISK FACTORS (CONT.) ➔ Future growth demands Catapult aims to continue its revenue growth, consideration of future acquisitions and potential expansion into new market segments. The Company anticipates that this will result in an increased level of respo
Slide 36: Summary of Key Risk Factors (Cont.)
SBG ACQUISITION APPENDIX 1 – SUMMARY OF KEY RISK FACTORS (CONT.) General market risks ➔ Investment risks There are risks associated with any investment in a company listed on the ASX. These risks apply generally to any investment on a stock exchange, and the value of Catapult shares may rise above
Slide 37: Summary of Key Risk Factors (Cont.)
SBG ACQUISITION APPENDIX 1 – SUMMARY OF KEY RISK FACTORS (CONT.) General market risks ➔ Laws and regulations may change Catapult is subject to, and must comply with, a variety of laws and regulations in the ordinary course of its business. These laws and regulations include those that relate to fa
Slide 38: Appendix 2 – Summary of International Offer Restrictions
SBG ACQUISITION APPENDIX 2 – SUMMARY OF INTERNATIONAL OFFER RESTRICTIONS ➔ This document does not constitute an offer of new Shares in Catapult in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the new Shares may not be offered
Slide 39: Summary of International Offer Restrictions (Cont.)
SBG ACQUISITION APPENDIX 2 – SUMMARY OF INTERNATIONAL OFFER RESTRICTIONS (CONT.) ➔ Singapore This document and any other materials relating to the new Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, thi
Slide 40: Summary of International Offer Restrictions (Cont.)
SBG ACQUISITION APPENDIX 2 – SUMMARY OF INTERNATIONAL OFFER RESTRICTIONS (CONT.) ➔ United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of sec
Slide 41: Appendix 3 – Key Terms of Underwriting Agreement
SBG ACQUISITION APPENDIX 3 – KEY TERMS OF UNDERWRITING AGREEMENT ➔ As noted above Catapult and the Lead Managers have entered into an underwriting agreement which the Lead Managers will subscribe for (or procure subscribers for) Shares offered under the general Placement that are not acquired by eli
Slide 42: Key Terms of Underwriting Agreement (Cont.)
SBG ACQUISITION APPENDIX 3 – KEY TERMS OF UNDERWRITING AGREEMENT (CONT.) a condition to completion of the Acquisition Agreement becomes incapable of satisfaction by the time required for its satisfaction; a party is or becomes in material default of any of the terms and conditions of the Acquisi
Slide 43: Key Terms of Underwriting Agreement (Cont.)
SBG ACQUISITION APPENDIX 3 – KEY TERMS OF UNDERWRITING AGREEMENT (CONT.) any director or officer of the Company is investigated for, or charged with, a criminal offence relating to any financial or corporate matter relating to the Company (including the Placement), or any director of the Company i
Slide 44: Key Terms of Underwriting Agreement (Cont.)
SBG ACQUISITION APPENDIX 3 – KEY TERMS OF UNDERWRITING AGREEMENT (CONT.) legal proceedings against the Company or any other Group Member are commenced or any regulatory body commences any enquiry or public action against a Group Member (*); any offer document contains a statement or fact that is
Slide 45: Key Terms of Underwriting Agreement (Cont.)
SBG ACQUISITION APPENDIX 3 – KEY TERMS OF UNDERWRITING AGREEMENT (CONT.) ➔ The ability of a Lead Manager to terminate the Underwriting Agreement in respect of the above termination events denoted with an asterisk (*) will depend on whether the Lead Manager has reasonable grounds to believe and does
Slide 46: Appendix 4 – Key Terms of Acquisition Agreement
SBG ACQUISITION APPENDIX 4 – KEY TERMS OF ACQUISITION AGREEMENT Catapult Group International Ltd (Catapult or the Company) has entered into a Sale and Purchase Agreement dated 22 June 2021 with the Gareth Griffith Trust, James Vowles, and Mark Riches (the Agreement), under which the Company is acqui
Slide 47: Key Terms of Acquisition Agreement (Cont.)
SBG ACQUISITION APPENDIX 4 – KEY TERMS OF ACQUISITION AGREEMENT (CONT.) ➔ The Agreement is not subject to any conditions precedent. The only completion condition imposed on Catapult is the announcement by it of a proposed equity issuance by it to institutional investors to raise gross proceeds of at
Slide 48: Play Smart
I\ PLAY SMART CATAPULTSPORTS.COM