Slide 1: FY20 Results Presentation
FY20 ResultsPresentation Aidan Williams – Chief Executive Officer Rob Goss – Chief Financial Officer 1 FY20 Results Presentation
Slide 2: Overview of Audinate today
Overview of Audinate today World-leading supplier Growing network effect Products of digital media with number of Dante- Dante comprises software and hardware that resides inside the audio networking for the enabled products in market and video products of Audinate’s Original Equipment Manufacturer
Slide 3: Delivering on medium-term priorities
Delivering on medium-term priorities Audinate has the foundations in place to accelerate our product development and support the software transition Audio of theNetworking AV industry for Pro-AV over the medium term A$400m Medium-term strategic priorities Achievements in FY20 Investing to double Aud
Slide 4: FY20 Highlights
FY20 Highlights Financial A$30.3m A$2.0m 76.6% A$29.3m Revenue EBITDA Gross profit margin Cash on hand (US$20.4m) at 30 June 2020 Operational 2,804 57,000 21% A$40.0m Dante-enabled Professionals Increase in OEMs Capital raised products on the trained on Dante shipping Dante via placement & SPP marke
Slide 5: Leading global supplier of digital media networking
Leading global supplier of digital media networking Highlights Increasing market awareness and adoption of Dante >A$1bn Total addressable market(1) 3000 2,804 Total audio products per protocol(1) 2500 328 OEM customers shipping Dante Dante has 8x enabled products 2000 the adoption versus closest com
Slide 6: COVID-19 impact and response
COVID-19 impact and response Audinate is well positioned to capitalise on medium-term growth objectives, despite taking prudent measures during COVID-19 COVID-19 impact and measures adopted Continued conviction for medium-term priorities • Addition of contract manufacturing in Malaysia and internal
Slide 7: Laying the foundation for accelerated adoption
Laying the foundation for accelerated adoption Lead over closest competitor People trained on Dante1 Unique website visitors Dante Certification Training (up 39%) (up 185%) (up 65%) 57k • Free training for industry 1,095k 8.2x professionals – including designers, system integrators & end users 27k •
Slide 8: Dante Video
Dante Video Dante AV Module • Several design wins, with Yamaha, Bolin and • “AV-over-IP” networking module, Patton publicly announced OEM business model *Indicative video products • V+A+Network (1 video + 8 audio) • Dante AV Product Design Suite shipped in • Commercial launch June 2019 April 2020 •
Slide 9: Financial Performance and Metrics
Financial Performance and Metrics 9 FY20 Results Presentation
Slide 10: Resilient repeat revenue base
Resilient repeat revenue base 30% increase in software revenue driven by Dante Domain Manager, US$ Revenue CAGR of 24% royalties, and retail software sales Gross Profit margin approaching 77% CCM revenue impacted by COVID-19, especially Brooklyn modules – Chips, cards & modules (‘CCM’) inc
Slide 11: Income Statement
Income Statement • A$2m revenue growth (including FX benefit) despite COVID-19 and (AU#039;000) FY20 FY19 Change US Tariff impacts Revenue 30,317 28,313 2,004 • Gross profit margin percent improved from 74.4% to 76.6% Gross profit 23,208 21,063 2,145 • Employee expenses increased mainly due to an addit
Slide 12: Continued investment in R&D
Continued investment inR&D • Growth in gross margin is used to fund new product initiatives • Ongoing focus on R&D spend, as innovation is core to the business • Increased spend on R&D due to focus on Dante video, Dante Embedded Platform & Dante Application Library Revenue and Cost Trends (AU$M) Res
Slide 13: Cash-flow statement
Cash-flow statement • Operating cash receipts & payments are consistent with the (AU#039;000) FY20 FY19 income statement and improvements in working capital balances • Government grants primarily relates to JobKeeper & other COVID- Receipts from Customers 31,635 27,747 19 related grants Payments to sup
Slide 14: Balance sheet
Balance sheet (AU$’000s) Cash FY20 29,286 FY19 30,069 Change (783) Trade and other receivables 1,849 2,872 (1,023) Inventories 1,645 1,803 (158) • Cash to increase subsequent to year end due to $40m equity raise Other 993 812 181 Current assets 33,773 35,556 (1,783) • Inventory levels now around tar
Slide 15: Outlook
Outlook 15 FY20 Results Presentation
Slide 16: Independent Forecast of Audio over IP growth
Independent Forecast of Audio over IP growth Audinate: • Market data forecasts Audio over IP volume toPioneering triple over the Networked Audio Units the five-year period between 2020 – 2024 (Thousands) future of AV • During COVID-19 the biggest impact is on expensive higher 1597 end products (whic
Slide 17: Focus areas for the year ahead
Focus areas for the year ahead Medium-term strategic priorities FY21 objectives Investing to double Audinate’s engineering and • Drive designs wins during economic downturn & prime R&D functions over the next two years the pump for economic recovery Digital Audio • Broaden Dante video product offeri
Slide 18: Audinate strongly positioned to deliver on its strategy
Audinate strongly positioned to delivery on its strategy • Cash at bank approximately $68 million1 to pursue growth agenda and potential M&A Audinate: • Recent monthly revenue run-rate improved from May but currently below the level required Pioneering the to generate revenue growth in FY21 – we rem
Slide 19: Summary
Summary Global Market Attractive Financial Innovative Products Leader Profile • High gross margins supported • Dominant position as global by strong IP • Broad intellectual property leader in audio networking portfolio developed in • Consistent historical revenue • 8x market adoption of its growth f
Slide 20: Questions
Questions 20 FY20 Results Presentation
Slide 21: Appendices
Appendices 21 FY20 Results Presentation
Slide 22: Audinate is driving the transformation of the AV industry
Audinate is driving the transformation of the AV industry A$400m • Networked digital connectivity is replacing Audinate Total Addressable Market (‘TAM’)* traditional, point-to-point analogue cabling The TAM for digital audio networking is Audinate share of Audio Market in the AV industry A$400m annu
Slide 23: Solid growth in product ecosystem
Solid growth in product ecosystem • Product ecosystem with over 2,804 Dante-enabled products and growing with over 524 OEMs 2,134 2,804 • 38% 5 year CAGR in product ecosystem • More than 8x number of products than the next digital audio networking technology 2,134 products 38% 1,639 5 year CAGR in D
Slide 24: Increasing OEM customer adoption: pipeline for growth
Increasing OEM customer adoption: pipeline for growth OEM customers shipping Dante-enabled products 25% 328 5 year CAGR in 270 OEMs shipping Dante enabled 221 products 194 158 106 FY15 FY16 FY17 FY18 FY19 FY20 Note: per financialyear Audinate has grown to 328 OEM customers have 176 OEM customers are
Slide 25: 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 26: Dante Controller
Dante Controller Dante Controller • Free system setup tool • Downloadable from Audinate homepage • Registration required • Makes virtual wires • > 250,000 downloads • Simple & easy to use • Standard industry matrix view • Training provided via Dante Certification • Devices appear automatically • Int
Slide 27: Software Products
Software Products Dante Application Library (DAL) Ceiling Microphone • Dante for PC/Mac applications Dante IP Core (today) / • Simple way for software developers Software products enable: Dante Embedded Platform to add Dante to their products • Wider proliferation, thru lowered • Launched June 2019,
Slide 28: 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 29: Application of AASB Leases
Application of AASB 16 Leases • Audinate applied the new lease accounting standard with effect from 1 July 2019 • The disclosure on the right is extracted from page 28 of the financial statements to set out the accounting treating in both the income statement and cashflow statement for FY19 and FY20
Slide 30: 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