Catapult Sports Ltd. · ASX:CAT
Catapult Sports — Catapult Group International — H1 FY2018 Earnings Presentation
37 slides from Catapult Sports's earnings presentation, Feb 22, 2018
Slide 1: Interim Result H1 FY2018
For personal use only INTERIM RESULT H1 FY2018 22 February 2018 Presenters: Joe Powell (CEO) Mark Hall (CFO)
Slide 2: Agenda
AGENDA For personal use only 1. Results overview 2. Financial results 3. Our purpose, opportunity and strategy 2 2
Slide 3: Results Overview
For personal use only RESULTS OVERVIEW Joe Powell, CEO 3
Slide 4: Key Highlights
Group Revenue (A$m) Group Net Operating Cash Prosumer unit sales Flow (A$m) (# of units) For personal use only 5,334 32 9.2 31%1 28 627%2 4 365% KEY HIGHLIGHTS 25 1,146 1.3 Strong elite wearable growth underpinning Group result H1 FY17 H1 FY18 H1 FY17 H1 FY18 H1 FY17 H1 FY18 Pro forma XOS revenue Pr
Slide 5: Executing on FY18 Priorities
EXECUTING ON FY18 PRIORITIES For personal use only 1.GROW 2.LWDs & 3.PROSUMER 4.INVEST 5.ORGANISATIONAL ELITE DATA LAUNCH IN GROWTH EXCELLENCE Elite wearable revenue League wide deals Major product Acquired AMS: Key hires: up 34% YoY signed with: enhancements across • Integration complete
Slide 6: Strong Elite Wearable Revenue Growth
1. GROW ELITE STRONG ELITE WEARABLE REVENUE GROWTH For personal use only SUPPORTED BY ATTRACTIVE CUSTOMER ECONOMICS ELITE WEARABLES REVENUE (A$m) ELITE WEARABLES ARR (A$m) 64% CAGR2 +34% v PcP 20.9 14.2 17.0 10.6 7.1 9.4 4.5 4.7 H1 FY15 H1 FY16 H1 FY17 H1 FY18 31 Dec 14 31 Dec 15 31 Dec 16 31 Dec 17
Slide 7: Continued Growth in Elite Subscription Base
1. GROW ELITE CONTINUED GROWTH IN ELITE SUBSCRIPTION BASE For personal use only H1 ELITE WEARABLE UNITS SOLD ELITE WEARABLE SUBSCRIPTION BASE (# of units) 15,763 H1 FY18 Churn1: 4,240 4.7% on a team basis 3,834 8.4% on a unit basis 3,407 34% 31% 62% 69% 66% 38% H1 FY16 H1 FY17 H1 FY18 H1 FY14 H1 FY1
Slide 8: Elite Video Performance Meeting Expectations
1. GROW ELITE ELITE VIDEO For personal use only PERFORMANCE MEETING EXPECTATIONS DURING KEY DEVELOPMENT PHASE XOS PRO-FORMA REVENUE (US$m) H1FY17 - FY18 0.1 Tactical 13.4 13.2 Internationalisation analytics -0.3 -0.1 product US$m 1 2 XOS H1 FY17 Coaching Content Hardware XOS H1 FY18 Revenue Solution
Slide 9: Global Elite Dominance
1. GROW ELITE GLOBAL ELITE For personal use only UK’s Rugby Football League DOMINANCE League-wide deal 1,638+ Fimleikafélag Hafnarfjarðar ELITE CLIENTS ACROSS Catapult’s first Kawasaki Frontale SV Werder Breman Current J-League (Japan) Icelandic client WEARABLES, VIDEO AND AMS 4-time Bundesliga (Soc
Slide 10: League Wide Deals and Data Commercialisation
2. LEAGUE WIDE DEALS AND DATA COMMERCIALISATION 2 NEW LEAGUE- …AND 4 DATA For personal use only WIDE DEALS… COMMERCIALISATIONS UK’s Rugby Football AFL Women’s League League 12/12 teams + England Live broadcast data. 5th Ashes Data for AFL Live Official App. National Team 8/8 teams Test (2017/18 Ashe
Slide 11: Large Prosumer Addressable Market Identified in Soccer
3. PROSUMER LAUNCH LARGE PROSUMER For personal use only Our initial prosumer Expansion prosumer customer personas ADDRESSABLE MARKET target persona IDENTIFIED IN SOCCER There is a large, unaddressed market for wearable devices focused on team-based sports across multiple sports and multiple geograph
Slide 12: Strong Momentum Ahead of Prosumer Launch
3. PROSUMER LAUNCH STRONG MOMENTUM AHEAD OF For personal use only PROSUMER LAUNCH H1 FY18 PLAYERTEK SALES ALREADY 1.4x FY17 SALES • We’re on track to launch our new prosumer product in Q4 FY18 37% 5,334 3,903 * Brand new pod (40% smaller) and charging dock Brand new app with SmartCoach insights
Slide 13: Investment in Elite Product Suite
4. INVESTING IN GROWTH INVESTMENT IN ELITE PRODUCT SUITE For personal use only TO DRIVE PENETRATION AND EXPAND REVENUE STREAMS 4. Product suite expansion Integrated Performance Tactical Technology Stack AMS 3. Adjacent market expansion Data Commercialisation 2. Core acquisition Elite Video +Internat
Slide 14: AMS Acquired and Integrated
4. INVESTING IN GROWTH AMS ACQUIRED For personal use only AND INTEGRATED Seamless transition of clients and staff On-pitch data Off-pitch data Rebrand to AMS by Catapult Established API for Catapult Cloud Medical Now available in nine languages Elite wearables Established regional sales pl
Slide 15: Tactical Analytics in Development
4. INVESTING IN GROWTH ADVANCED TACTICAL SEARCH DATA VISUALISATIONS TACTICAL For personal use only Enhance video analysis with data Researching real time AR combining driven search tools ClearSky with video IN DEVELOPMENT ANALYTICS Growing our data science and Data driven telestration to hel
Slide 16: Investment in People a Key Focus
5. ORGANISATIONAL EXCELLENCE INVESTMENT IN PEOPLE For personal use only A KEY FOCUS Appointment of Mark Hall – Chief Financial Officer Appointment of Markus Ziemer - General JOE POWELL MARK HALL MARKUS ZIEMER Counsel and Company Secretary General Counsel & Corporate Leadership CEO, Catapult CFO
Slide 17: FY18 Guidance & Priorities
FY18 GUIDANCE & PRIORITIES CATAPULT CONFIRMS For personal use only FY18 REVENUE & EBITDA GUIDANCE • $76m-$81m group revenue representing 17%-25% on pro-forma FY17 revenue • Positive group underlying EBITDA CONTINUING TO EXECUTE IN LINE WITH OUR FY18 PRIORITIES: 1. GROW ELITE Elite wearable revenue u
Slide 18: Financial Overview
For personal use only FINANCIAL OVERVIEW Mark Hall, CFO 18
Slide 19: Contents
CONTENTS For personal use only 1. Summary Financial Performance 2. Revenue by Product 3. EBITDA 4. Cashflow 5. Segment Results 6. Investing in Product 7. Guidance 19 19
Slide 20: Summary Financial Performance
SUMMARY FINANCIAL PERFORMANCE For personal use only H1 FY17 % change H1 FY18 H1 FY17 Pro-forma YoY vs $m $m $m Pro-forma Capital revenue 8.3 4.7 5.8 43% • Pro-forma takes into account impact of XOS financials prior to acquisition (12 Subscription revenue 23.7 20.1 22.7 4% August 2016) Other revenue
Slide 21: Income by Product
INCOME BY PRODUCT REVENUE BY PRODUCT For personal use only H1 FY17 – H1 FY18 PRODUCT CONTRIBUTION TO REVENUE (CONSTANT CURRENCY BASIS1) (A$m) 3.8 0.2 1.3 32.4 28.5 -0.5 -0.8 H1 FY17 Pro-Forma Elite Wearables Core Elite Video Other Elite Video New Products FX Adjustment H1 FY18 Group Group Revenue Re
Slide 22: Underlying EBITDA
UNDERLYING EBITDA EBITDA MOVEMENT REFLECTS INVESTMENT IN GROWTH ACROSS ELITE AND NEW PRODUCTS For personal use only A$m EBITDA RECONCILIATION H1 FY17 - H1 FY18 6 Frontline investment = $(6.5)m of $(8.4)m expense contribution 2.9 2.2 3 1.8 1.6 -2.3 -2.3 -0.9 0 -3.3 -3 -0.5 -1.4 -3.9 -0.4 -0.9 -5.2 -6
Slide 23: Cash Flow
CASH FLOW STRONG CASH FLOW GROWTH AND For personal use only IMPROVED CASH POSITION H2 FY17 – H1 FY18 GROUP CASH BALANCE RECONCILIATION (A$m) 45.4 1.9 16.7 0.1 18.2 -37.6 -0.4 -6.3 -1.5 Cash balance as Receipts from Government Supplier and Other operating Investment in Cash flows Cash flows from Cash
Slide 24: Segments
SEGMENTS POSITIVE EBITDA CONTRIBUTION FROM For personal use only ELITE WEARABLES AND ELITE VIDEO Corporate H1 FY18 ($m) Wearables Elite Video New Products Total Costs Revenue – external customers 14.2 16.9 1.3 - 32.4 Segment EBITDA 1.4 4.3 (3.3) (7.6) (5.2) H1 FY17 ($m) Revenue – external customers
Slide 25: R&D Investing in Product
R&D INVESTING IN PRODUCT For personal use only R&D EXPENDITURE (A$m) % group • Expenditure skewed toward product development and growth revennue A$m initiatives 4.0 20% 3.7 • Significant R&D and product investment focused on the following 0.3 medium term objectives: i. extending value proposition to
Slide 26: FY18 Guidance
FY18 GUIDANCE CATAPULT CONFIRMS For personal use only GROUP REVENUE BY HALF (A$m) REVENUE & EBITDA Guidance range 81 GUIDANCE 76 61 • $76m-$81m group revenue representing 17%-25% growth on FY17 pro-forma revenue 57%* • Underpinned by strong growth in elite wearables with subscription mix expected to
Slide 27: Looking Ahead
LOOKING AHEAD For personal use only Catapult has undergone a transformational 12 months through targeted M&A and continued strong organic growth of our market leading products This has strengthened our global position and presence and we are uniquely positioned to unlock significant growth opportuni
Slide 28: Purpose, Opportunity, Strategy
For personal use only PURPOSE, OPPORTUNITY, STRATEGY 28
Slide 29: Our Purpose
OUR PURPOSE TO BUILD AND IMPROVE THE PERFORMANCE For personal use only OF ATHLETES AND SPORTING TEAMS Optimise Performance Return to Competition Injury Risk Management Plan and deliver training stimuli Map player recovery and Manage training load to minimise that are appropriate to the needs rehabil
Slide 30: Establishing the Elite Addressable Market
ADDRESSABLE MARKET ESTABLISHING THE ELITE ADDRESSABLE For personal use only MARKET Universe: We catalogued ALL teams in ALL leagues from 166,093 teams Total national, to professional and semi-professional. market Excluded: Teams that we don’t consider elite. Medium probability: The total We complete
Slide 31: The Elite Addressable Market
ADDRESSABLE MARKET THE ELITE ADDRESSABLE MARKET For personal use only Underpenetrated market Growing addressable market Future revenue growth c. 10,000 teams1 $450m-$550m2 Plus, we think an additional 10,000 teams will push up into this market over time Data monetisation (commenced) AMS Analytics ad
Slide 32: Our Strategy
OUR STRATEGY OUR For personal use only STRATEGIC PILLARS OWN THE COMMERCIALISE LEVERAGE ELITE PERFORMANCE ELITE WEARABLE & INTO PROSUMER TECHNOLOGY STACK VIDEO DATA How will we succeed? FOR ELITE SPORT 1. Improve sports performance via technology and dominate the industry • Aggressively grow • Explo
Slide 33: Appendices
For personal use only APPENDICES 33
Slide 34: Elite Wearable Subscription Base Reconciliation
APPENDIX ELITE WEARABLE SUBSCRIPTION BASE For personal use only RECONCILIATION Units Elite Subscription Fleet (30 June 2017) 13,780 New subscription units sold 2,794 Churn - subscription contracts not renewed (582) Teams reducing number of units under subscription (179) High School switching to PLAY
Slide 35: Definitions
APPENDIX DEFINITIONS For personal use only Annual Recurring Revenue (ARR) Value of the Group’s recurring subscription revenue normalised for a calendar year. Customer Acquisition Cost (CAC) Sales, marketing and lead referral fees per unit Lifetime Value (LTV) Subscription contribution margin (ARPU l
Slide 36: Play Smart. Defy Limits.
For personal use only PLAY SMART . DEFY LIMITS CATAPULTSPORTS.COM 36
Slide 37: Disclaimer
DISCLAIMER DISCLAIMER For personal use only • This presentation has been prepared by Catapult Group International Limited ACN 164 301 197 (‘Catapult’). Each recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set out below. • None of Cata
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