Slide 1: AoFrio FY23 Results Presentation
AoFrio FY23 Results Presentation March 2024 AoFrio Company Confidential ©2024 Greg: Hello everyone. Thank you for making time today to join AoFrio’s FY23 results presentation. My name is Greg Balla, I am the CEO of AoFrio, and I am looking forward to presenting today. 1
Slide 2: Safe harbour
Slide 2 Safe harbour We will be making some forward-looking statements today and as these are predictive in nature, they are subject to a number of risks and uncertainties relating to the company, its operations and the markets in which it competes. Some things are beyond the control of the company
Slide 3: Presenters
Slide 3 John Scott Chairman AoFrio Greg Balla Howard Milliner CEO AoFrio CFO AoFrio AoFrio Company Confidential ©2024 Greg: I also have presenting with me today, Howard Milliner, CFO of AoFrio and John Scott our Board Chairman will say a few words as a summary. 3
Slide 4: Agenda
Slide 4 Agenda 01 02 03 04 Year in review Business update FY24 outlook Q&A AoFrio Company Confidential ©2024 Greg: The agenda for the today is on the screen. We are going to provide some context for the FY23 year, a business update highlighting the progress we’ve made against our business strategy a
Slide 5: Year in Review: Revenue Trend
Slide 5 Year in Review: Revenue Trend Growth NZ$000’s Influenced by 2019 61,72 Pre-Covid Levels 2020 36,88 Covid 2021 64,22 Recovery 2022 74,32 Component shortages 2023 66,55 Overstocking and macroeconomic issues AoFrio Company Confidential ©2024 Howard: Thanks Greg. Our Annual Report was released l
Slide 6: Customer purchasing and demand in 2023
January that they would be purchasing 5 fewer containers in 2023. Other customers said their demand would also be less. Demand began to increase in the 2nd half. Our view is COVID has delayed our Growth by three years. 5
Slide 7: Year in Review – Financials
Slide 6 Year in Review – Financials Revenue Gross margin EBITDA Operating Cash Revenue down 10.5% Gross margin up 2.3pp EBITDA down $0.6m Operating Cash up $8.3m $66.6million 30.0% 1.0million $3.9million AoFrio Company Confidential ©2024 Howard: 2023 ended as we have reported. Revenue for the year a
Slide 8: Year in Review - H1 vs H2
Slide 7 Year in Review- HI vs H2 NZ$000’s H1-23 H2-23 Increase Revenue NZ$000’s 30,108 36,444 +6,336 Gross margin 30.5% 29.8% EBITDA -703 +1,712 +2,415 Operating cash inflow -2,823 +6,771 AoFrio Company Confidential ©2024 Howard: Performance in the 2nd half was a big improvement on the 1st half. Thi
Slide 9: Year in Review - IoT Growth
Slide 8 Year in Review- IoT Growth NZ$000’s Motors IoT Revenue NZ$000’s 31,498 35,054 Gross margin 17.1% 41.7% AoFrio Company Confidential ©2024 Howard: The other trend I would like to highlight is the growth in our IoT business. In 2015 we had no IoT revenue at all. Our first IoT product was launch
Slide 10: Business update
Slide 9 Business update AoFrio Company Confidential ©2024 Greg We are now going spend time discussing what AoFrio is focussed on in FY24 and as part of that I would like to re-present the slide we discussed at the Analyst Briefing and the ASM in May last year. 9
Slide 11: Growth aspirations to deliver shareholder returns
Slide 10 Growth aspirations to deliver shareholder returns Growth funded from internally generated cash flow Connected IoT Annual Growth Serviceable Market Share ESG Metrics devices Available Market Gender Diversity :40:40:20 10m 30% $6B ??% Net Zero by 2040 AoFrio Company Confidential ©2024 Greg: T
Slide 12: Connected Devices
Slide11 Connected Devices AoFrio Company Confidential ©2024 Greg: On the previous slide we talked about a target of 10m connected devices, this slide show the progress we are making as we increase the number of assets connected to our platform. The growth strategies I will discuss soon will further
Slide 13: Growth plans
Slide 12 Growth plans • For the Cold Drink Equipment (CDE) market we are focused on: • Entering new geographies for IoT • Increasing value for customers by leveraging the data and algorithms in our platform • Energy management • Other asset types that can be connected • Entering adjacent markets: Fo
Slide 14: Product and engineering team focus
The graph on the right-hand side shows the change in focus of the product & engineering team. The team had spent 18 months focused on support existing products due to the electronic component shortages as we have previously discussed but are now focused on New Product development supporting growth i
Slide 15: New Product and Market Development
Slide 13 New Product and Market Development • ECR 2 26W o New higher-power ECR 2 26W motor is near-launch. o Several customer trials underway. • Network Pro o Network Pro ONE launched Oct 2023 o Network Pro TWO estimated launch H2 2024 • Remote Asset Management o Launched capability to change cooler
Slide 16: Network Pro ONE and remote asset management
multiple coolers, the Network Pro ONE is targeted as a cost-effective new build and retrofit cellular connected solution for single coolers. This new option has been well-received by customers, with trials underway across 13 different OEMs/Bottlers, primarily in North America. We received our first
Slide 17: Spotlight on Food Service and Retail
Slide 14 18 Spotlight on Food Service and Retail $17B 16 14 12 • Solution definition: working with two potential customers as development partners 10 8 • Onboarding next 3 potential customers for solution validation starting March. 6 4 $4.5B • Subscription revenue. 2 $900M • Plan to launch the first
Slide 18: Food service and retail development partners
to March 2024. • The second development partner is a major global supermarket chain in South America aiming to automate their refrigeration monitoring and alerting system. This has now moved from a proof of concept to a multi site trial which will run until the end of July24. • We have commenced wor
Slide 19: AoFrio Technology Platform
Slide 15 AoFrio Technology Platform IoT devices DevOps tools Services Mobile Databases Data lake Web Visualisation QA tooling Cloud to cloud Monitoring AoFrio Company Confidential ©2024 Greg: In these presentations we spend a lot of time talking about the hardware part of our solution, i.e the top l
Slide 20: Technology platform modernisation
like machine learning and AI. This diagram looked very different 2 years ago we have invested in modernising the platform and with rapid technology change it will continue to evolve. 15
Slide 21: ESG progress
Slide 16 ESG progress • In FY23 we completed a review of ESG framework, achievements include: o Updated Board and Committee charters. o Sustainability Policy and a Modern Slavery Statement launched. o EcoVadis Bronze Medal. • Next steps include: o Establishing baselines for reporting and target sett
Slide 22: Culture and board changes
We have been evolving our organizational culture focusing on global collaboration, inclusivity, and innovation. Areas highlighted in the employee engagement (72% average score) and diversity, equity, and inclusion surveys (80% inclusion score). As part of the Board succession planning process, the B
Slide 23: FY24 outlook
Slide 17 FY24 outlook • AoFrio expects FY24 to show positive momentum, initial revenue from new solutions and geographies, including: o The launch of a new solution for energy reduction in the CDE market. o Commence entering the US & EMEA regions for CDE o The first targeted solution release for the
Slide 24: FY24 guidance
launch activity to revenue and gross margin generation and we are tightly managing operational expenditure. This should ensure that both ongoing operations and growth activities can be funded through internally generated cash flows. AoFrio’s FY24 revenue guidance is $70m to $80m, 13% at the midpoint
Slide 25: Summary
Slide 18 Summary • FY23 Revenue $66.6m EBITDA $1m • Guidance FY24 $70-80m EBITDA $2.5m • Focus on execution • Growth plans funded from internally generated cash flow. AoFrio Company Confidential ©2024 John Scott Thank you, Greg, This feels like it could be shaping up to be the most normal year, what
Slide 26: Q&A
Q&A AoFrio Company Confidential ©2024 Greg: Now I’ll open up to questions 19
Slide 27: Thank you
Thank you AoFrio Company Confidential ©2024 20
Slide 28: Contact details
Email: sales@aofrio.com LinkedIn Telephone: +64 9 477 4500 Twitter Website: www.aofrio.com AoFrio AoFrio Company Company Confidential Confidential ©2024 ©2024 21