Etherstack Plc · ASX:ESK
Etherstack — H1 2021 Earnings Presentation
24 slides from Etherstack's earnings presentation, Aug 20, 2021
Slide 1: 1H CY21 Results Presentation
1H CY21 Results Presentation For personal use only Etherstack plc (ASX:ESK) 20 August 2021 Authorised for release by David Deacon, CEO and David Carter, CFO
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Etherstack plc (ARBN 156 640 532) (“Etherstack” or “the Company”). The information in this presentation is for For personal use only information purposes only and is not investment, financial product, legal or tax advice. This presentation contains s
Slide 3: H1 CY21 Operational Highlights
For personal use only H1 CY21 OPERATIONAL HIGHLIGHTS
Slide 4: 1H CY21 Highlights
1H CY21 Highlights For personal use only First carrier deal with Samsung (announced July 2021) - multiple other Samsung pursuits 01 advancing rapidly Increased rate of contract wins – 6 contracts won YTD CY21 diversified across cellular, mining, 02 government, and Defence business lines 03 Follow on
Slide 5: Solid Deal Flow H1 CY21
Solid Deal Flow H1 CY21 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 December
Slide 6: Positive Defence & Government Exposure Demonstrated
Positive Defence & Government Exposure Demonstrated ▪ Increased global infrastructure and stimulus spending creating For personal use only optimal business environment outlook for next 3 – 5 years ▪ Governments globally are increasing spend on public safety and defence projects due to current world
Slide 7: Forefront of 5G Public Safety Communications Rollouts
Forefront of 5G Public Safety Communications Rollouts For personal use only ▪ Announced in June 2020, the Samsung Global Teaming Agreement has Samsung offering Etherstack’s MCPTX based technologies to Samsung’s telecommunications carriers globally A$11m+ Samsung Global Teaming ▪ MCPTX is a new “push
Slide 8: 1H CY21 Financial Highlights
For personal use only 1H CY21 FINANCIAL HIGHLIGHTS
Slide 9: 1H CY21 Financial Highlights
1H CY21 Financial Highlights For personal use only Revenue Growth: revenue is US$4.3m up 79% on the prior corresponding period (“pcp”), with growth across all 01 revenue streams: ▪ Recurring revenues from long term support contracts have increased 30% from pcp ▪ Royalty revenues driven by sales of l
Slide 10: Highlights: 1H CY21 – Record revenue in 1H CY21
Highlights: 1H CY21 – Record revenue in 1H CY21 For personal use only ▪ Revenue for the half year is US$4.3m up 79% Revenue (US$m) 1H Revenue on the prior corresponding period (“pcp”), with 2H Revenue growth across all revenue streams: US$5.4m Revenue ▪ Recurring revenue from long term US$4.8m US$4.
Slide 11: Highlights: 1H CY21 – Growing our recurring revenue base
Highlights: 1H CY21 – Growing our recurring revenue base For personal use only Support Revenue (US$m) 1H Support Revenue ▪ Support revenue for first half of FY2021 grew 2H Support Revenue 30% to US$1.0m compared to US$0.8m for the first half of FY2020 Support US$1.5m US$1.6m (Recurring) ▪ Attributab
Slide 12: Highlights: 1H CY21 – Positioned for growth
Highlights: 1H CY21 – Positioned for growth • Strong EBITDA result: US$1.5m EBITDA for the half year (US$0.8m for the pcp) For personal use only Profitability • Net profit after tax: US$0.8m profit for the half year (US$2.3m loss for the pcp) Continued ▪ The Company has invested a further US$1.4m (H
Slide 13: Company Overview
For personal use only COMPANY OVERVIEW
Slide 14: 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 14
Slide 15: 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 16: Case Studies
Case Studies Royal Canadian Mounted Police Western Australia Iron Ore Project 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 17: Our Solutions
Our Solutions 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 margin. T
Slide 18: 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 19: 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 20: Etherstack – Key Competitive Strengths
Etherstack – Key Competitive Strengths For personal use only ✓ 20+ years of intellectual property development across LMR and carrier communications ✓ Global presence ✓ Established support base – stable SAAS-like revenues ✓ Key reference clients established including RCMP and WA resources sector clie
Slide 21: CY21 – Outlook and Milestones
For personal use only CY21 – OUTLOOK AND MILESTONES
Slide 22: Etherstack 2H CY21 Outlook
Etherstack 2H CY21 Outlook Etherstack Revenue For personal use only ▪ Etherstack has already achieved contracted revenue for 1H Support Revenue 2H 2021 of US$4.2m, comprised of: 2H Support Revenue Additional 2H 2021 wins 2H 2021 Contracted 2H 2021 Revenue ‒ US$3.0m in contracted revenues not associa
Slide 23: Key milestones
Key milestones 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: ▪ June 2019 – Order from the US State Department & supply contract with an Australian state police force ✓
Slide 24: 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