Etherstack Plc · ASX:ESK
Etherstack — Investor Presentation (July 2021)
29 slides from Etherstack's investor presentation, Jul 22, 2021
Slide 1: Corporate Presentation
Corporate Presentation For personal use only Etherstack plc (ASX:ESK) 22 July 2021 Authorised for release by David Deacon, CEO and David Carter, CFO
Slide 2: First Global Teaming Agreement Carrier Contract
First Global Teaming Agreement Carrier Contract ▪ Etherstack has today signed a long term supply contract with Samsung Electronics Co. Ltd, to provide Etherstack software For personal use only solutions and ongoing support services to Samsung for a telecommunications carrier client of theirs as part
Slide 3: First Global Teaming Agreement Carrier Contract (cont…)
First Global Teaming Agreement Carrier Contract (cont…) ▪ Total revenues for Etherstack comprising licence fees, project deployment revenues and support revenues are US$8.5 million, For personal use only which includes US$1.2 million revenue previously announced on 18th February 2021 Key Terms of th
Slide 4: Company Overview
For personal use only COMPANY OVERVIEW
Slide 5: Etherstack Overview
Etherstack Overview Etherstack is a leading licensor of wireless communication software, enabling push-to-talk (PTT) communications for For personal use only essential services, within and across advanced digital land mobile radio, cellular and satellite networks ▪ Core network products are high mar
Slide 6: Our Three Core Markets
Our Three Core Markets Etherstack licenses innovative wireless communications technology across three key platforms For personal use only Terrestrial digital land mobile radio Satellite Push to Talk (PTT) Cellular networks (4G & 5G) networks networks Wireless communication networks, Mission Critical
Slide 7: Customer Base
Customer Base Etherstack has a globally diversified base of high quality customers/End users across various industries For personal use only Royal Canadian Mounted Police 7
Slide 8: Key Developments Timeline
Key Developments Timeline 22 July First contract under For personal use only Land mobile radio networks Samsung Teaming Arrangement Cellular networks (US$8.5 million, including US$1.2 Recurring / Potential for recurring revenue previously (i.e Network has 10 year+ life) announced) 30 June 18 Decembe
Slide 9: Etherstack 1H 2021 Guidance
Etherstack 1H 2021 Guidance Etherstack Revenue ▪ Etherstack provided a trading update on 6 July 2021, Contracted For personal use only announcing revenue guidance for the half year ending 30 June 2H 2021 2021 to be US$4.2m 1H 2021 ▪ Half year 2021 revenue of US$4.2m represents a 76% increase Revenue
Slide 10: Cellular Networks (4G & 5G)
For personal use only CELLULAR NETWORKS (4G & 5G ) (MISSION CRITICAL PUSH TO TALK OVER LTE)
Slide 11: Evolving public safety communications – hybrid networks
Evolving public safety communications – hybrid networks Etherstack’s software enables interoperability between traditional and new 4G & 5G networks for public safety For personal use only communications. Mission Critical Push To Talk (MCPTX) over LTE ▪ Availability of new wireless technologies (wifi
Slide 12: Rollout of new communications technologies – migration
Rollout of new communications technologies – migration Global rollout of 5G networks is expected to drive demand for Etherstack MCPTX over LTE technology in coming years For personal use only Mobile Population Coverage (%) by Technology1 94% 94% 95% 95% 95% 95% 95% 96% 96% 95% ▪ 5th generation mobil
Slide 13: Targeted Contracts Going Forward
Targeted Contracts Going Forward Etherstack is targeting 25+ contract wins over the medium term For personal use only Etherstack targeted additional contract wins under teaming agreement 1 – 2 new contracts 4 – 6 new contracts 6+ new contracts 2021 2022 2023 2024 2025 2 – 4 new contracts 6+ new cont
Slide 14: Cellular Networks: Etherstack Market Opportunity
Cellular Networks: Etherstack Market Opportunity For personal use only Contracts available for Upfront licensing Long term recurring revenue competition fee potential stream 60 – 90 US$2 – 8m High Margins in OECD countries over ~5 years1 Typically per contract comparable to enterprise SaaS peers Eth
Slide 15: Digital Land Mobile Radio Networks
For personal use only DIGITAL LAND MOBILE RADIO NETWORKS
Slide 16: Digital LMR Networks
Digital LMR Networks Etherstack has deep experience delivering software based digital land mobile radio networks across public safety, For personal use only utilities, resources and transportation industries ▪ Digital Land Mobile Radio (LMR) networks typically used in public safety, utilities, trans
Slide 17: Case Studies
Case Studies Royal Canadian Mounted Police Western Australia Iron Ore Network For personal use only The Royal Canadian Mounted Police (RCMP) are Large resources projects require essential communications for the federal and national police service of Canada, operations and safety in hazardous environ
Slide 18: Market Snapshot
Market Snapshot ▪ The global market for critical communications was estimated to be US$14.4b in 2020 1 For personal use only US$14.4b ▪ The global critical communications market is forecasted to grow at a CAGR of 6.7% from 2020 to 2027, to reach a value of US$22.7b1 Value of global critical communic
Slide 19: Digital LMR Networks: Terrestrial Market Opportunity
Digital LMR Networks: Terrestrial Market Opportunity For personal use only Etherstack target Scores of target sized contracts Etherstack target addressable market available for competition network contract size 150 – 250 US$0.5 – 20m US$3.0b addressable network deployments in target regions annually
Slide 20: Satellite Networks
For personal use only SATELLITE NETWORKS
Slide 21: Secure Push To Talk Communications over Satellite
Secure Push To Talk Communications over Satellite Etherstack is ready to capitalise on emerging wireless communications opportunities made available by new low cost For personal use only satellite technology ▪ Advances in satellite technologies has seen an unprecedented number of satellites launched
Slide 22: Financials
For personal use only FINANCIALS
Slide 23: Recurring Revenue
Recurring Revenue Etherstack recurring revenue has been steadily growing year on year For personal use only Revenue (US$m) Revenue Composition 5.9 5.5 5.3 43% 50% 4.8 4.7 64% 61% 71% 69% 4.1 2.4 81% 4.8 3.6 2.4 15% 2.9 2.6 0.8 2.1 50% 42% 1.5 High gross 39% 36% 2.3 2.3 margin 31% 29% 1.7 1.9 Telecom
Slide 24: Recurring Revenue Contracts
Recurring Revenue Contracts Growing recurring revenue For personal use only Number of support contracts base driven by increasing number of support contracts 14 13 ▪ Recurring revenues predominantly driven by support contract revenues, however also includes royalty revenues 11 11 ▪ Support contracts
Slide 25: Income Statement
Income Statement EBITDA positive operations For personal use only US$'000 2017 2018 2019 2020 supported by steadily Revenue from Contract with Customers 4,142 5,264 4,792 4,699 growing recurring revenues Recurring Revenue 1,508 1,682 1,838 2,331 Project and Product Revenues 2,634 3,582 2,954 2,368 ▪
Slide 26: Balance Sheet & Cash Flow Statement
Balance Sheet & Cash Flow Statement Balance Sheet US$'000 31-Dec-19 31-Dec-20 Strong balance sheet position For personal use only Cash and cash equivalents 931 4,180 a foundation to invest in Trade and other receivables 1,870 1,410 Other current assets 247 446 growth Intangibles 3,295 3,516 Other no
Slide 27: Future Milestones
For personal use only FUTURE MILESTONES
Slide 28: Summary
Summary Key operational milestones achieved by Etherstack leading Strong outlook for 2021 and going forward driven by focus For personal use only up to 2021 on key strategic initiatives: ▪ April 2019 – New radio network contract for public safety and emergency services personnel in the State of Idah
Slide 29: Etherstack plc
For personal use only Etherstack plc London New York +44 207 734 0200 +1 917 661 4110 93A Shepherd Street, info.eu@etherstack.com info.na@etherstack.com Chippendale NSW 2008 Sydney Yokohama Phone +61 2 8399 7500 +61 2 8399 7500 +81 45 342 9050 info.au@etherstack.com info.jp@etherstack.com David Deac