Audinate Group Ltd. · ASX:AD8
Audinate — Investor Presentation (August 2023)
36 slides from Audinate's investor presentation, Aug 21, 2023
Slide 1: FY23 Investor Presentation
FY23 INVESTOR PRESENTATION 21 August 2023 Authorisation: approved by the Aidan Williams – Chief Executive Officer Board of Audinate Group Limited Rob Goss – Chief Financial Officer 1
Slide 2: World-leading technology supplier to Pro-AV
World-leading technology supplier to Pro-AV Audinate is the company behind the Dante® media networking solution used in the professional AV industry Poland USA UK Belgium Japan 3,853 Dante-enabled 13 Mexico France Germany China Hong Kong Locations products Philippines Brazil 575 Total OEMs >220k bra
Slide 3: World-leading technology supplier to Pro-AV
World-leading technology supplier to Pro-AV Dante is in millions of devices and can be found in a diverse range of installations and applications across industries, including: Universities Conference Broadcast Corporate Houses of Arenas and Rooms Studios Campuses Worship Stadiums Recording Conferenc
Slide 4: Dante Product Map
Dante Product Map System Software (For system setup, management and troubleshooting) Dante Dante Domain Dante Audio Visual Controller Manager Director Integrators, Professionals & Consumers AVIO Network Adaptors PC/Mac/Cloud Software • Analogue • USB / Bluetooth • Dante Studio (AV) • Dante Virtual S
Slide 5: Gross profit growth accelerates
Gross profit growth accelerates Variance US$M Gross Profit Other Key Financial Metrics vs FY22 US$35M CAGR % 33.4 130% A$69.7M Revenue 50.6% 2yr - 32% 5yr - 24% US$30M 120% US$46.7M US$ Revenue 40.0% 24.9 US$25M 110% 72.1% Gross Margin % (2.7%) - 19.2 US$20M 100% 15.0 15.6 US$15M 90% A$11.0M EBITDA
Slide 6: Leading Global Supplier of AV Networking
Leading Global Supplier of AV Networking Total audio products per protocol 400 4000 3,853 >A$1bn OEM brands Total addressable shipping Dante 3500 market(1) enabled products 3000 2500 3,853 12x Dante enabled Market adoption 2000 products available of Closest on the market competitor 1500 1000 >220,00
Slide 7: Covid related supply chain impacts
Covid related supply chain impacts Chip shortages Supplier price increases Dante price increases (10-25%) Spot inventory buys Factory closures Record design wins Variable delivery dates Dante product redesign Record demand (backlog) Over the three-year period impacted by COVID and supply chain disru
Slide 8: FY23 objectives achieved
FY23 objectives achieved 1 2 3 4 5 Support customer Manufacturers Generate Drive adoption Continued FY23 transition to more to release Dante >US$3 million of new Dante focus on Objectives available chips & video products in video products Operational away from legacy revenue Efficiency products Acti
Slide 9: Success in Dante Video
Success in Dante Video During FY23 all video objectives were achieved Dante AV-H released (uses H.264 codec) Dante AV-A launched and released (uses ASPEED codec) Dante Studio software released for AV professionals Video support added to Dante Domain Manager 26 design wins for Dante video products 34
Slide 10: More growth for Dante Video
More growth for Dante Video In the FY24 year ahead Enhancements to Dante AV-H and Dante AV-A Transition legacy Viper board customer to virtual ASSP model – per unit moderation in gross profit dollars Release next generation Dante AV Ultra product – building upon initial product combined with element
Slide 11: Audinate continues to innovate
Audinate continues to innovate Dante Connect Dante Professional Services What is it? Dante Connect delivers in-sync audio directly Dante Professional Services team provides system from Dante networks to cloud services for seamless design, design review & consulting, advanced online production anywhe
Slide 12: Financial Performance
FINANCIAL PERFORMANCE 21 August 2023 FY23 Investor Presentation / AUDINATE | 12
Slide 13: Revenue growth continues
Revenue growth continues Revenue (US$M) Dante units shipped ('000s) 1,200 $50.0 $46.7 1,064 1,000 $40.0 $11.6 816 $33.4 756 470 800 $30.0 $25.0 $8.7 515 530 330 $20.3 $20.4 600 326 $20.0 $6.8 398 $15.2 $3.2 $4.2 163 190 $34.6 400 $2.3 $24.4 150 595 $10.0 $17.9 430 486 $16.6 $15.8 200 352 341 $12.5 2
Slide 14: Income Statement
Income Statement (A$'000) FY23 FY22 Change Change US$ revenue increased 40.0% to US$46.7M - A$ revenue Revenue 69,699 46,292 23,407 51% increased 50.6% to A$69.7M Gross profit 50,228 34,591 15,637 45% Gross margin relatively strong in FY23 at 72.1% - movement Gross Margin % 72.1% 74.7% due to produc
Slide 15: Additional gross profit drives EBITDA growth
Additional gross profit drives EBITDA growth EBITDA Waterfall (A$M) 13.0 (5.1) (0.9) (2.3) 3 11.0 4 2.0 4.3 2 1 - 1 2 3 4 EBITDA (A$M) FX tailwind Gross profit Headcount up Mainly due to dollars from 178 incremental strengthening improved due (FY22) to 197 travel ($1.1m) USD against to US$13.4M (FY2
Slide 16: Profitability evident in scalable cost base
Profitability evident in scalable cost base Ongoing focus on innovation and R&D to maximise Operating leverage in the cost base is once again future growth opportunities evident as additional gross profit drives profitabilty Research and Development (A$M) Revenue, cost trends (A$M) 32% 69.7 80% 30%
Slide 17: Cash-flow Statement
Cash-flow Statement (A$'000) FY23 FY22 FY23 Operating Cashflow to EBITDA Bridge Receipts from Customers * 71,171 43,021 EBITDA $11.0m Payments to suppliers and employees * (59,123) (41,935) Reverse non-cash Share-based payments $2.5m Interest received 617 182 Investment in working capital ($1.1m) Ca
Slide 18: Balance Sheet
Balance Sheet (A$’000s) 30-Jun-23 30-Jun-22 Change ($) Cash & term deposits of $40.0M, with no debt Cash 24,031 17,465 6,566 Term deposits 16,000 27,000 (11,000) Inventory increased to $6.7M from $5.6M due to expanding business Trade and other receivables 6,267 6,513 (246) Inventories 6,707 5,601 1,
Slide 19: Outlook
OUTLOOK 21 August 2023 FY23 Investor Presentation / AUDINATE | 19
Slide 20: Continuing growth FY24 Priorities
Continuing growth FY24 Priorities 1 2 3 4 5 Double the Release Deliver video ecosystem additional video Success with initiatives to Improve >30k video units and cloud Dante Connect improve profitability and in-field or products cloud offering scalability of cashflow shipped cost base 21 August 2023
Slide 21: Global AV Industry Size and FY24 Outlook
Global AV Industry Size FY24 Outlook 2022 2028 Easing of supply chain challenges means a return to business as usual US$285 US$402 BILLION BILLION Backlog at near-record levels provides good revenue visibility 2023 Global macro-economic uncertainty US$307 BILLION M&A opportunities surfacing to accel
Slide 22: Investment Highlights
Investment Highlights Global Market Attractive Financial Innovative Large Market Strong Customer Experienced Leader Profile Products Opportunity Base Management Dominant position as Gross margins >72% Broad intellectual AV just starting Existing customer Founder-led de-facto standard in supported by
Slide 23: ESG Highlights
ESG Highlights Employee Engagement Supporting Diversity Supply Chain Cyber Security Environment & Wellbeing Families & Inclusion Management Management Top quartile Implemented Paid 29% female Regular audit of key Strengthened IT, Completed initial employee Parental Leave policy representation on sup
Slide 24: Questions
QUESTIONS 21 August 2023 FY23 Investor Presentation / AUDINATE | 24
Slide 25: Appendices
APPENDICES 21 August 2023 FY23 Investor Presentation / AUDINATE | 25
Slide 26: Audinate is Driving the Transformation of AV
Audinate is Driving the Transformation of AV Audinate Networked digital connectivity is replacing Total Addressable Market share of (‘TAM’)* Audio Market traditional, point-to-point analogue cabling in the AV industry estimated at 10% Software-based AV systems are replacing hardware AV systems, in t
Slide 27: OEM business model
OEM business model Dante comprises chips, Audinate products OEM customers OEM products cards, modules and software that resides inside the audio and video products of Chips Audinate’s Original Equipment Manufacturer (OEM) customers Modules Cards Software 21 August 2023 FY23 Investor Presentation / A
Slide 28: OEM Design Wins drive future revenue growth
OEM Design Wins drive future revenue growth OEM Buy Release DESIGN Pre-sales Product Prototype New WIN Design Dante Units Product OEM OEM sells Manufactur Dante- es more AV enabled AV products products Design wins are Customer commits From design win to a key step in the to use Dante in product rele
Slide 29: OEM Design wins through to product launch
OEM Design wins through to product launch Design Wins OEM Brands shipping & developing Dante-enabled Products Dante-enabled Products Ecosystem 3,853 3,610 142 126 3,123 538 506 513 2,738 95 500 82 78 440 138 103 129 2,134 178 170 410 400 371 328 270 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Slide 30: Dante Controller
OEM Design Wins drive future revenue growth Dante Controller Free system setup tool • Downloadable from Audinate homepage • Registration required • Define virtual wires across the network • > 250,000 downloads Manages audio and video signals Simple & easy to use • Standard industry matrix view • Tra
Slide 31: Dante Audio and Adaptors
Dante Audio and Adaptors Dante Audio Chips & Modules Brooklyn Broadway Ultimo Adaptors • Hardware based implementations for a range of product counts and price points • Transports uncompressed audio signals across standard computer networks Dante Adaptors 32 & 64 audio channel 8 & 16 audio channel 2
Slide 32: Dante Audio Software
Dante Audio Software Dante audio device software Reference Design IP Core Embedded Platform Application Library • Software based implementations for a range of product counts and price points • OEM customers, based on per unit royalty model • Transports uncompressed audio signals across standard com
Slide 33: Dante Video Products
Dante Video Products Dante AV Chips & Modules Dante AV Ultra Viper Dante AV-H Dante AV-A • Dante AV Ultra and Viper are premium products targeting live venues, broadcasters, corporate board rooms and university lecture spaces. Dante Software • Dante AV-H enables existing Premium Dante AV Fully integ
Slide 34: Dante Via & DVS for AV Professionals
Dante Via & DVS for AV Professionals Dante Virtual Dante Via Soundcard (DVS) • Routes audio from • Turns a computer into a devices and applications Dante-powered to one another – up to 16 workstation, integrating a audio channels Mac or PC with Dante- • Connects devices and enabled audio equipment a
Slide 35: Dante Domain Manager for AV Professionals
Dante Domain Manager for AV Professionals Dante Domain Manager Security • User logins and roles • Prevent unauthorised changes Scalability • Create Dante systems spanning campus networks • Group Dante devices into logical managed systems Visibility • Centralise Dante system management • Monitor syst
Slide 36: Important notice and disclaimer
Important notice and disclaimer Disclaimer Past performance Market share information To the maximum extent permitted by law, none of the Past performance information, including past share price All market share information in this presentation is based on Audinate Group Limited or its subsidiaries o