Dti Group Ltd · ASX:DTI
Dti — H1 FY17 Earnings Presentation
29 slides from Dti's earnings presentation, Feb 24, 2017
Slide 1: DTI Group Ltd 2017 Interim Results Presentation
DTI GROUP LTD 2017 Interim Results Presentation 24 February 2017 DTI GROUP LTD 2017 Interim Results Presentation [_] February 2017 PETER TAZEWELL RICHARD JOHNSON Chief Executive Officer Commercial Director 1
Slide 2: Overview – H1 FY17
Overview – H1 FY17 • Revenue of $5.5 million Financial • Underlying EBITDA adversely impacted by revenue lag and costs associated with new product launch • Balance sheet strengthened by $11.5 million capital raising • $0.9 million negative cash flow from Operations • Additional resources into growin
Slide 3: Responding to Growth Challenges
Responding to Growth Challenges • Completed Capital raising of $11.5 million • Continued investment in R&D • Launched new products – MDR-6, TDR-6 train recorder, Commuter Communications System • Expanded sales/business development team • Investment in business processes and systems • Expanded Execut
Slide 4: H1 FY17 Financial Results
H1 FY17 FINANCIAL RESULTS PETER TAZEWELL 4
Slide 5: Key Financial Metrics
Key Financial Metrics H1 FY17 H1 FY16 Revenue $m 5.4 8.7 • Revenue shortfall compared to FY16 EBITDA $m (2.3) 0.1 • Recognition of non- Underlying EBITDA $m (1.3) 0.23 recurring charges Net profit/(loss) after tax $m (2.7) (0.2) against inventory Earnings per share ¢ (2.85) (0.23) and capitalized R&
Slide 6: Revenue Analysis
Revenue Analysis $m 20 15 10 5 0 FY14 FY15 FY16 FY17 H1 H2 REVENUE ANALYSIS • H1 Revenue adversely impacted by project delays and commercial terms • FY17 revenue expected to be weighted to H2 • FY17 FY revenue based on contracted revenue 6
Slide 7: Underlying EBITDA
Underlying EBITDA $m FY17 FY16 Statutory EBIT (3,043,942) (374,268) Depreciation / Amortization 712,010 496,420 Reported EBITDA (2,331,932) 122,152 Foreign Exchange losses 376,571 (64,619) Warranty Provision 189,943 NRV adjustment – inventory 258,128 143,327 Capitalised R&D impaired 241,912 Underlyi
Slide 8: Balance sheet
Balance sheet $m H1 FY17 FY16 • Improved cash position Cash 8.4 0.6 from capital raising Trade receivables 4.2 6.4 Other receivables 1.5 2.7 • Negligible bank debt Inventory 6.7 5.8 • Ongoing research and Property, plant & equip 1.2 1.1 Intangible assets 5.8 4.4 development activities Other assets 0
Slide 9: Cash flow from Operations
Cash flow from Operations $'000s 9,300 7,779 6,200 3,100 (886) (2,718) (2,332) 0 (3,100) 9
Slide 10: Order Book and Pipeline
ORDER BOOK AND PIPELINE RICHARD JOHNSON 10
Slide 11: Order Book
Order Book $m 20 16 12 8 4 0 Bus Rail • Order Book growing in line with increased marketing effort • Strong growth in rail sector with global infrastructure spend • Order book does not include anticipated recurring work until PO is issued 11
Slide 12: Global Market
Global Market • Global market for mobile video 1,000 Video Sureveillance Equipment - Market Sector surveillance equipment forecast 800 to grow at 6.9 per cent per 600 annum 400 • Market dominated by law 200 enforcement (31%) and transit 0 2012 2017 buses (29%) Cars & Taxis Law enforcement Trains & T
Slide 13: Opportunity Pipeline
Opportunity Pipeline Timing of Contract Award • Substantial Opportunity $m 160 Pipeline in excess of $417 million • Pipeline unwinds over 120 next four years based on expected contract 80 award dates • Significant proportion in tender phase 40 • Contracted work supports revenue 0 through FY17 and in
Slide 14: Opportunity Pipeline
Opportunity Pipeline • Significant identified long term pipeline Contracted Tendered Identified • Strong tendering activity • Growing rail market provides strong growth potential • Stable bus market supports Bus Rail Law Enforcement baseload business • North America and EMEA represent strong growth
Slide 15: Business Model and Strategy
BUSINESS MODEL AND STRATEGY PETER TAZEWELL 15
Slide 16: Company Snapshot
Company Snapshot SHARE PRICE CORPORATE DETAILS $0.60 1,400 $0.50 1,200 ASX Code DTI 1,000 Issued Shares 126,671,579 Volume (000s) $0.40 Share Price 800 $0.30 600 Share Price (16 Feb 2017) $0.42 $0.20 400 $0.10 200 Market Capitalisation $53.2 million $0.00 0 MAJOR SHAREHOLDERS BOARD AND MANAGEMENT Ch
Slide 17: What we do . . .
What we do . . . • DTI designs, develops and installs world-leading surveillance, video analytics, and passenger information systems technology and services to the global mass transit industry • Utilising proprietary software with leading edge hardware (hybrid-recorders, commuter communications syst
Slide 18: DTI Key Customers
— NIE Sie a DTI Key Customers ALSTOM (59 BOMBARDIER SEPIA BRISBANE CITY the evolution of mobility v larnrod Eireann Irish Rail voLGREN SJEMENS —Ovnersevrai_ <>] More than Just a Journey STADLER Ansaldo SIS EST QDELATIM A Hitachi Group Company DESIGNED TO DELIVER Government of Western Australia Publi
Slide 19: Business Model
Business Model Other Rail Policing Taxi Bus 19
Slide 20: Strategy
Strategy • Leverage investment in software and product development into new projects • Partner with aggregators in the rolling stock manufacturing industry • Continue to grow share of maintenance and recurring revenue • Focus on project execution • Expand support structure in EMEA and Americas 20
Slide 21: Products and Future Developments
PRODUCTS AND FUTURE DEVELOPMENTS RICHARD JOHNSON 21
Slide 22: Current Products
Current Products • Passenger Announcement Amplifier – Intelligent networkable amplifier – Multi-zone and Hearing Aid loop • Passenger Information Display – High intensity smart display – Self-contained and centralised messaging • Mobile Digital Recorder – Built-in switch catering for megapixel IP ca
Slide 23: Current Products
Current Products • Passenger Emergency Intercom – Networkable intercom with integrated hearing-aid loop • Dynamic Route Map – 48” ultra wide screen intelligent display – Daisy chain networkable 23
Slide 24: Technology Roadmap
. x Technology Roadmap Signs / Passenger Generic LED Information Display Generic LED- Analouge Internal IP (DTI Design) Low Profile Side View Forward View Heavy Rail Side Views Rall Generic IP Cameras Analouge Cameras Passenger Emergency Intercom Public Address Passenger Intelligent DDU Information
Slide 25: Outlook
OUTLOOK PETER TAZEWELL 25
Slide 26: Outlook
Outlook • Continued investment in R&D activities • Growing Order Book and strong Opportunity Pipeline • Near term opportunities in Australia, US, UK, South Africa, Sweden, France and Poland • Product development keeping DTI at forefront of technology curve • $20 million in new projects to be awarded
Slide 27: Summary
Summary • Recapitalisation of Company complete • Growing Opportunity Pipeline as the Company participates more into the rail market • Growing awareness of DTI and its capabilities in key European, African and North American markets • Order Book supporting future revenue • Company maturing and implem
Slide 28: Disclaimer
Disclaimer Reliance on third party information The information and views expressed in this presentation were prepared by DTI Group Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified. No representation or warra
Slide 29: Contact Details
Contact Details PETER TAZEWELL RICHARD JOHNSON Chief Executive Officer Commercial Director T: +61 8 9373 2905 T: +61 8 9373 2905 E: peter.tazewell@dti.com.au E: richard.johnson@dti.com.au 29