Slide 1: FY21 Results Presentation
23 August 2021 Aidan Williams – Co-founder & Chief Executive Officer Rob Goss – Chief Financial Officer Authorisation: This document was approved by the Board of Audinate Group Limited
Slide 2: Overview of Audinate Today
Overview of Audinate Today Products World-leading supplier of Growing network digital media networking effect of Dante Dante comprises software and hardware that resides inside the audio for the Professional AV enabled products in and video products of Audinate’s Original Equipment Manufacturer indu
Slide 3: Leading Global Supplier of Digital Media Networking
Leading Global Supplier of Digital Media Networking Highlights Total audio products per protocol 3500 3,255 >A$1bn Total addressable market(1) “Dante continues to be the 3000 dominant force” RH Consulting 371 OEM brands shipping Dante 2500 enabled products 2000 3,255 Dante enabled products available
Slide 4: Audinate growth continues
Audinate growth continues Historical Gross Margin (US$M) Variance Financial Highlights PCP % US$20M 19.2 15.0 15.6 79.0% A$33.4M Revenue 10.1% US$15M 11.3 77.0% US$25M US$ Revenue 22.5% US$10M 8.3 76.6% 76.4% 6.2 75.0% 76.4% Gross Margin (0.2%) - US$5M 74.5% 74.8% 74.4% 74.3% US$0M 73.0% A$3.0M
Slide 5: Another year of consistent execution
Another year of consistent execution FY21 Objectives Actions • Upfront fees replaced by annual subscription pricing model Drive designs wins during economic downturn & • Record number of design wins for FY21 (#105) prime the pump for economic recovery • 66 new OEMs added during FY21 • Recruitment of
Slide 6: OEM Design Wins drive future revenue growth
OEM Design Wins drive future revenue growth OEM Product Buy Prototype Release New Pre-sales DESIGN WIN Design Dante Units Product Customer OEM OEM sells commits to Manufactures Dante- use Dante in • New annual subscription model (vs up-front more AV enabled AV new products products products technolo
Slide 7: Dante video and audio together is now reality
Dante video and audio together is now reality • Six OEM Dante video products released:- 2 x PTZ Cameras, 4 Encoders/Decoders • Enables all-Dante A&V systems to be deployed • Good number of design wins, with pipeline growing – but COVID has been a headwind • Recruited experienced video development te
Slide 8: First Dante Video products released
First Dante Video products released Dante AV Module • “AV-over-IP” networking module, OEM business model • V+A+Network (1 video + 8 audio) • First design win FY20 • OEM products released FY21 Dante AV Product Design Suite • Full HDMI-over-IP product design • Accelerate OEM time to market & enable OD
Slide 9: Financial Performance
FINANCIAL PERFORMANCE 23 August 2021 FY21 Results Audinate Confidential | 9
Slide 10: Software & adapter sales drive revenue growth
Software & adapter sales drive revenue growth Revenue (US$M) Dante units shipped ('000s) 25.0 756 Software units ↑72% 20.3 20.4 6.8 515 530 326 15.2 3.2 4.2 398 11.3 2.3 163 190 8.7 1.5 275 150 16.6 17.9 175 15.8 95 430 12.5 352 341 9.7 65 248 7.4 180 110 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18
Slide 11: Income Statement
Income Statement • US$ revenue increased 22.5% to U$25M with A$ (A$’000s) FY21 FY20 Change revenue negatively impacted by currency impacts Revenue 33,369 30,317 10% • Gross margin remained consistent at 76.4% Gross profit 25,504 23,208 10% • Employee expenses increased from prior year with Gross Mar
Slide 12: Additional revenue drives EBITDA growth
Additional revenue drives EBITDA growth 1 2 3 4 5 1 Gross Margin dollars improved due to extra US$4.6M revenue EBITDA (A$M) 2 A$ strengthening against US$ (FY21: 75.0c v FY20: 67.2c) 3.0 3 Recruitment of video development team in Cambridge (UK) 2.8 2.0 4 Return to paying staff bonuses in FY21 0.8 0.
Slide 13: Operating leverage supports ongoing R&D
Operating leverage supports ongoing R&D • Ongoing focus on innovation and R&D to maximise future growth opportunities • A$1.1m in research costs incurred in FY21 by the new Cambridge (UK) team • Operating leverage in the cost base is once again evident as additional revenue drives EBITDA growth Rese
Slide 14: Cash-flow Statement
Cash-flow Statement • Operating cash receipts & payments are consistent with (A#039;000) FY21 FY20 the income statement and movement in working capital Receipts from Customers * 33,484 31,635 Payments to suppliers and employees * (27,677) (27,258) • Government subsidies relate to COVID (mainly Interest
Slide 15: Balance Sheet
Balance Sheet • Cash & term deposits of $65.4M, with no debt (A$’000s) 30 Jun 21 30 Jun 20 Change ($) • Trade receivables up $1.3M consistent with the Cash 38,429 29,285 9,144 improved sales performance Term deposits 27,000 - 27,000 Trade and other receivables 3,199 1,850 1,349 • Inventory balance m
Slide 16: Outlook
OUTLOOK 23 August 2021 FY21 Results Audinate Confidential | 16
Slide 17: Increasing demand v global supply uncertainty
Increasing demand v global supply uncertainty • Record backlog of sales orders for future months Audinate survey of Dante -enabled products in development by OEM • Industry sales sentiment at all time high in July customers (AVIXA Survey) N/A • Strong pipeline of new products >10 5% None (based on s
Slide 18: FY22: driving adoption & improving ease of use
FY22: driving adoption & improving ease of use FY22 1. Drive design wins for Dante video and next generation software products Priorities 2. Launch new Dante video software and cloud services products 3. Pursue initiatives to reduce adoption friction, including in-field activation 4. Improve adoptio
Slide 19: Return to historical revenue growth in FY22
Return to historical revenue growth in FY22 • Record levels of demand as the AV industry recovers from the impact of earlier COVID lock-downs • Good trading conditions experienced during the start of FY22 • COVID related risks now relate to global supply chain uncertainty and are impacting both Audi
Slide 20: Investment Highlights
Investment Highlights Global Market Attractive Financial Innovative Leader Profile Products • Dominant position as de- • Gross margins >75% • Broad intellectual property facto standard in audio supported by strong IP portfolio developed in networking Australia • Consistent historical • 19x market ad
Slide 21: Questions
QUESTIONS 23 August 2021 FY21 Results Audinate Confidential | 21
Slide 22: Appendices
Appendices 23 August 2021 FY21 Results Audinate Confidential | 22
Slide 23: Audinate is Driving the Transformation of AV
Audinate is Driving the Transformation of AV • Networked digital connectivity is Audinate Total Addressable Market (‘TAM’)* replacing traditional, point-to-point The TAM for digital audio networking is analogue cabling in the AV A$400m annually Audinate share of for chips, cards, Audio Market module
Slide 24: Accelerating OEM Adoption: Pipeline Growth
Accelerating OEM Adoption: Pipeline Growth OEM Brands shipping Dante-enabled Products 23% CAGR 371 growth in 328 OEMs 270 221 194 158 106 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Audinate has grown to 371 OEM brands have 129 OEM brands are 529 OEM brands announced products in currently developing their fi
Slide 25: Consistent Growth in Product Ecosystem
Consistent Growth in Product Ecosystem • Product ecosystem includes 3,255 Dante-enabled 3,255 products and growing, with 529 OEMs • 34% CAGR in product ecosystem • 19x number of products than the next digital audio 2,804 networking technology 2,134 1,639 34% 1,182 CAGR in Dante 874 ecosystem of prod
Slide 26: Dante Controller
Dante Controller Dante Controller • Free system setup tool • Downloadable from Audinate homepage • Registration required • Makes virtual wires • > 250,000 downloads • Manages audio and video signals • Simple & easy to use • Standard industry matrix view • Training provided via Dante Certification •
Slide 27: Dante Audio and Adaptors
Dante Audio and Adaptors Dante Audio 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 • Connects legacy equipment to Dante (mostly analogue) • Add
Slide 28: Software Products
Software Products Dante Application Library (DAL) • Dante for PC/Mac applications Ceiling Microphone • Simple way for software Software products enable: Dante IP Core (today) / developers to add Dante to their products • Wider proliferation, thru lowered Dante Embedded Platform • Launched June 2019,
Slide 29: Dante Domain Manager
Dante Domain Manager Dante Domain Manager Complete Network Management System • Security • Usernames/passwords identify users • Roles control access to the system • Scalability • Create Dante systems spanning campus networks • Group Dante devices into logical managed systems • Visibility • Centralise
Slide 30: Important notice and disclaimer
Important notice and disclaimer Disclaimer Past performance The non-IFRS measures do not have any standard definition under IFRS and may be calculated differently To the maximum extent permitted by law, none of the Past performance information, including past share price by other companies. Audinate