Ai-media Technologies Limited · ASX:AIM
Ai-media Technologies — H1 FY21 Earnings Presentation
36 slides from Ai-media Technologies's earnings presentation, Feb 23, 2021
Slide 1: Making the World's Content Accessible – For Everyone
Making the World’s Content Accessible – For Everyone 23 February 2021 H1 FY21 Results Presentation 1
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation (Presentation) contains summary information about Access Innovation Holdings Limited and its subsidiaries (the Company or Ai-Media) which is current as at 23 February 2021. By attending an investor presentation or briefing, or accepting, accessing or
Slide 3: Presenters
Presenters Deanne Weir Non-Executive Chair • Director of Ai-Media since 2010, appointed Chair August 2013 • Former media lawyer and senior executive at Telstra, Austar and Foxtel • Currently Chair at Seer Data & Analytics, Sydney Film Festival, Grata Fund and Global Sisters Tony Abrahams Chief Execu
Slide 4: Agenda
Agenda 1. Overview of Ai-Media 2. H1 FY21 Highlights 3. Financial Performance 4. Operational Performance 5. Outlook 6. Appendix 4
Slide 5: Overview of Ai-Media
Overview of Ai-Media 5
Slide 6: Ai-Media
Ai-Media Ai-Media is a global technology services business whose proprietary cloud-based platform translates speech-to-text in multiple languages using a combination of artificial and human intelligence and machine learning. 6
Slide 7: Ai-Media at a glance
Ai-Media at a glance Three Key Product Lines Global Growth • Live Enterprise • Operations in four key regions; ANZ, North • Live Broadcast America, EMEA and Asia • Recorded • Executing domestic and international growth initiatives that are supported by regulatory requirements and home working Invest
Slide 8: A large and diverse customer base supporting revenue growth
A large and diverse customer base supporting revenue growth Growth in Pro Forma revenue: FY18 – FY21F1 (A$m) Large and diverse customer base Over 2,300 customers globally ~US$1.1m 50.0 CAGR 18% upside potential in FY21 from two High level of repeating revenue 45.0 US acquisitions 40.0 Diversif
Slide 9: H1 FY21 Highlights
H1 FY21 Highlights 9
Slide 10: H1 FY21 Highlights
H1 FY21 Highlights Agreed to $22.7 million 7.1 million acquisitions of Services Revenue Captioned Approximate Minutes cash balance as of 31 Caption IT and Oct 2020 CaptionAccess 29% on pcp1 99%+ repeating revenue 37% on pcp (A$1.9m paid Jan 2021) $8.8 million 60% per cent $8.8 million Gross Profit R
Slide 11: Leading global media access provider across three key product lines
Leading global media access provider across three key product lines Live Enterprise Live Broadcast Recorded H1 FY21 Revenue 60% 16% 24% 2 Growth vs pcp 55% -11% 16% (pro forma) Service description Live captions and interpreting in real time Live captions in real time for broadcasters High-quality re
Slide 12: Financial Performance
Financial Performance 12
Slide 13: Profit and Loss
Profit and Loss 1 H1 FY21 H1 FY20 (1) Var Var Revenue: $m $m $m % • H1 FY21 Service revenue growth of 26% pcp, driven by Service revenue 22.7 18.0 4.7 26% increasing demand for accessibility services in remote work Other revenue 0.2 0.9 (0.7) (79%) environment. 29% growth on currency neutral basis.
Slide 14: Balance Sheet
Balance Sheet Notes 31-Dec-20 30-Jun-20 Var $m $m $m Comments: Cash and cash equivalent 1 8.8 3.0 5.8 Secured deposits 1 0.3 0.3 - 1. Movements in cash are discussed on slide 15. Trade receivables 2 8.4 5.4 3.0 Other receivables 1.1 0.7 0.3 2. Growth in trade receivables is driven by increase in sal
Slide 15: Cashflow
Cashflow • The overall cash position is in line with the company forecast and net cash used in operating activities will continue to reduce in H2 FY21. • Cash outflows for the period included IPO related payments which included: • ACS vendor loan • payments to close out Ai-Media’s prior employee sha
Slide 16: Operational Performance
Operational Performance 16
Slide 17: Key Operating Metrics – H1 FY21 v H1 FY20
Key Operating Metrics – H1 FY21 v H1 FY20 H1 FY21 H1 FY20 FY21F Actuals Pro forma Prospectus (Reported Currency) (Pro Forma Forecast) Key operating metrics Total captioned minutes (millions) 7.1 5.2 13.8 Total captioned minutes (% increase pcp) 37.4% 21.2% 23.0% Services revenue / captioned minute (
Slide 18: Services revenue growth rate tracking ahead of prospectus forecast
Services revenue growth rate tracking ahead of prospectus forecast Services Revenue (A$’m) • Higher proportion of Services revenue 26% growth in reported currency derived offshore in USD, CAD, GBP and (29% currency neutral growth) SGD ~ 61% in H1 FY21. • Movement in AUD / USD in H1 FY21 had an adver
Slide 19: Strong growth in offshore markets
Strong growth in offshore markets Segment Revenue H1 FY20 H1 FY21 Var Var $m $m $m % ANZ 8.9 8.9 (0.0) (0.5%) North America 7.5 10.3 2.8 37.9% ROW 1.2 3.5 2.3 195.0% Total 17.6 22.7 5.1 29.2% Services Revenue Geographic Mix % • Strong growth across all offshore markets H1 FY20 (Pro Forma) H1 FY21 (A
Slide 20: Customer Mix Analysis
Customer Mix Analysis Services Revenue by Customer Mix % H1 FY20 (Pro Forma) H1 FY21 (Actuals) 21% 28% 32% • Continuous shift from Broadcast clients toward Government, Corporate and 45% $17.6m 29% $22.7m Education clients • Strong growth in Live Enterprise 34% revenue from 50% of total revenue in 40
Slide 21: Annual gross profit and gross profit margin %
Annual gross profit and gross profit margin % Gross profit margin % improvement expected in FY21 • A series of cost-saving improvement projects including the implementation of new technology along with identified labour cost savings $ millions • Margin improvements at ACS from the utilisation of the
Slide 22: Key customer wins
Key customer wins Fa DALLAS Cy i COLLEGE “ P set ANSING | iw) dgoiley! By gjall Sus CITVFSYONE® = SAS: ALJAZEERA MEDIA NETWORK se WAYNE STATE fi - UD 6 Tit siry University of Houston WISCONSIN TA DOWNTOWN oo Toor oo = —— COMMUNITY ano PARLIAMENT rsity f Colorado FE INICAL COLLEGES BHM media z
Slide 23: Outlook
Outlook 23
Slide 24: Growing global market forecast to be US$14.7bn by 2022
Growing global market forecast to be US$14.7bn by 2022 • Frost & Sullivan’s forecast decline in the addressable market in 2020 incorporates a COVID-19 impact of US$1.3 billion • COVID-19 has accelerated the adoption of video as a core communications tool for education and work, with a resulting sign
Slide 25: Multiple levers of growth
Multiple levers of growth Acquisition opportunities • Consider strategic acquisition opportunities that compliment current Organic growth business operations strategy • Up-sell and cross-sell to existing customers • Attract new customers Product innovation • Strong growth opportunities in Live Enter
Slide 26: Acceleration in consolidation opportunities across our markets
Acceleration in consolidation opportunities across our markets 26
Slide 27: Upside on Prospectus forecast revenue growth of 20%
Upside on Prospectus forecast revenue growth of 20% • Reaffirm FY21 Prospectus forecasts across existing business including $43.8m in FY21 Services revenue Services Revenue Growth HY21 notwithstanding stronger $A • Completion of Caption IT and Caption Access acquisitions on 29% 4 January 2021 provid
Slide 28: Tribute to Leonie Jackson
Tribute to Leonie Jackson IN LOVING MEMORY Jenie Jackson 16 JANUARY 1971 — 17 JANUARY 2021 4
Slide 29: Q&A
‘a i media Q&A
Slide 30: For further information
For further information Visit our investor relations website: https://investorrelations.ai-media.tv/Investor-Centre/ Investors: Media: Sue Sanossian Clive Mathieson Company Secretary Cato & Clive +61 2 8870 7711 +61 411 888 425 investorrelations@ai-media.tv clive@catoandclive.com 30
Slide 31: Appendix
Appendix 31
Slide 32: Key financial and operational metrics by half
Key financial and operational metrics by half 1H FY21 1H FY20 Pro forma Key operating metrics Total captioned minutes ('000) 7.1 5.2 Services revenue / captioned minute 3.2 3.5 Cost / captioned minute 2.0 2.1 Margin per minute 1.2 1.3 Key financial metrics Services revenue growth 26.3% 21.2% Revenue
Slide 33: Investment highlights
Investment highlights 1 Large and growing market supported by regulatory requirements and COVID-19 tailwinds 2 Established global presence and employee network 3 Industry leading platform providing a scalable business model 4 Large and diverse customer base with repetitive revenue 5 Strong revenue g
Slide 34: A cloud based scalable technology platform
A cloud based scalable technology platform 34
Slide 35: Accuracy driven by the combination of human curation & machine capability
Accuracy driven by the combination of human curation & machine capability Increased data required more Curated data increases accuracy rules and less accuracy and efficiency (>8%* error) (~0.5% error) * Based on NER captioning quality assessments utilising the scores from the best-performing ASR eng
Slide 36: Competitive advantages driven by business model and technology platform
Competitive advantages driven by business model and technology platform • Ai-Media provides fast, high-quality accurate and secure captioning and translation services • Maintains leading live capabilities, global reach, proprietary and leading technology which is improving the accessibility of globa
Ai-Media Technologies — H1 FY21 Earnings Presentation on 6ix