Slide 1: Annual General Meeting
For personal use only Annual General Meeting ReadCloud Limited ASX: RCL, RCLO 27 November 2019
Slide 2: Sales Update
For personal use only Sales Update 2
Slide 3: Sales Update – FY20
Sales Update – FY20 For personal use only • ReadCloud now has 350+ school customers for year 2020 including schools using ReadCloud for Vocational Education and Training (“VET“) courses (representing 98% CAGR since FY16) • This represents a 13% market share of the total number of secondary schools i
Slide 4: Sales Update – School Users
Sales Update – School Users For personal use only Users • Direct sales efforts for the 2020 school year have focused Channel Nov-18 Nov-19 % increase on targeting larger schools and going deeper and wider in existing schools 1. Direct Schools 17,000 36,000 112% • Whilst the selling season for the 20
Slide 5: Recent Wins
Recent Wins For personal use only Wins across all four Channels of the business since the end of FY19. Direct Schools VET in Schools Resellers Broader VET • A number of new Direct • VET In School students are • Following the exit from the • Distribution partner Australian whole-of-school 3-year expe
Slide 6: FY19 Highlights
For personal use only FY19 Highlights 6
Slide 7: FY19 Operational Highlights
FY19 Operational Highlights For personal use only ● At the conclusion of FY19: ○ 277 School customers on the ReadCloud platform (↑ 296% over FY18). ○ 80,000 ReadCloud users (↑ 60% over FY18). ● ReadCloud entered the VET in schools sector in November 2018 with the acquisition of Australian Institute
Slide 8: FY19 Financial Highlights
FY19 Financial Highlights For personal use only ● FY19 Total revenue of $4.8 million (↑ 125% over FY18). ● Record school revenue of $4.3 million (↑ 145% over FY18), driven by: ○ expanded use of the ReadCloud platform within existing direct schools (26% organic revenue growth from direct schools that
Slide 9: FY19 Financials – Underlying EBITDA
FY19 Financials – Underlying EBITDA For personal use only FY19 FY18 ● 125% revenue growth. Sales and fee revenue $4,316,479 $1,756,527 ● Publisher and bookseller fees for FY19 grew in line with increased eBook sales: Other revenue $492,089 $378,545 ○ gross margins on eBook sales to curriculum Total
Slide 10: FY19 Financials – Balance Sheet
FY19 Financials – Balance Sheet For personal use only Note 30-Jun-19 30-Jun-18 1. Strong cash position at year-end. Cash and cash equivalents 1 3,067,599 4,593,330 2. Includes FY19 R&D tax refund ($0.4 million) Trade and other receivables 2 470,165 548,940 received in the December 2019 quarter. Prep
Slide 11: FY19 Financials – Cash Flows
FY19 Financials – Cash Flows For personal use only 30-Jun-19 30-Jun-18 ● FY19 Underlying EBITDA closely approximated net cash used in operating activities. Receipts from customers 4,538,336 1,771,460 ● Positive cash flow from operating activities in the Payments to suppliers (5,363,134) (2,261,435)
Slide 12: Technology Platform
Technology Platform For personal use only ● Major enhancements to the ReadCloud technology platform ready for the 2020 school year, ensuring it continues to be the leading digital solution for schools: ○ extra development resource employed since FY19 year-end ○ media overlay development phase 1 depl
Slide 13: Growth Strategy
For personal use only Growth Strategy 13
Slide 14: Growth Strategy
Growth Strategy For personal use only Direct Schools VET in Schools Resellers Broader VET • Expanded use of platform • Win more new schools • Win more reseller • Increase partnerships in existing schools across arrangements with with educational content • Cross-selling ReadCloud additional year leve
Slide 15: Market Opportunity
Market Opportunity For personal use only Immediate Market Broader Market Opportunity Opportunity 4.2 million 242,000 students enrolled 1.6 million students in VET courses students in 2,700 in VET-in- with 4,193 secondary schools school training in Australia1 courses2 providers in Australia3 Secondar
Slide 16: Key Investment Highlights
For personal use only Key Investment Highlights 16
Slide 17: Key Investment Highlights
Key Investment Highlights For personal use only ● ReadCloud is the leading eReading platform for Australian schools delivering clear educational benefits ● Large market opportunity in Australia with 2,700 secondary schools educating 1.6 million students ● Growing rapidly (98% CAGR since FY16) being
Slide 18: Disclaimer
Disclaimer For personal use only This presentation has been prepared by ReadCloud Limited (“Readcloud”), based on information available as at the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an inve
Slide 19: ReadCloud Limited
For personal use only ReadCloud Limited 1/426 Glenhuntly Rd Elsternwick VIC 3185 Lars Lindstrom | CEO lars@readcloud.com 19