Slide 1: 2018 Full Year Results Presentation
DTI GROUP LTD 2018 Full Year Results Presentation 30 August 2018 DTI GROUP LTD 2017 Interim Results Presentation [_] February 2017 PETER TAZEWELL Chief Executive Officer
Slide 2: Overview – FY18
Overview – FY18 • Revenue of $19.1 million, 20% increase on FY17; in line with Financial guidance • EBITDA adversely impacted by impairment costs, but positive in 2H (pre-impairment) • Working capital reduced by $2.8 million, despite increased revenue • $0.3 million negative cash flow from Operation
Slide 3: Highlights
Highlights • Record revenue of $19.1 million; achieving 20% growth • Continued growth (25%) in contracted Order Book1 to $45.2 million including Preferred Tenderer status • Major new contract with Metro Trains Melbourne • Maintaining scheduled deliveries to critical projects (Sydney Metro, Oman Bus,
Slide 4: FY18 Financial Results
FY18 FINANCIAL RESULTS 4
Slide 5: Key Financial Metrics
Key Financial Metrics FY18 FY17 • Revenue increased Revenue $m 19.1 15.9 20.4% pcp EBITDA $m (10.1) (3.0) • Significant Underlying EBITDA $m (2.7) 0.5 impairment charges recorded Net profit/(loss) after tax $m (11.4) (5.8) • Positive 2H EBITDA Earnings per share ¢ (4.30) (5.20) (pre-impairment) Divi
Slide 6: Revenue
Revenue $m Revenue Split $m Revenue Growth 20 10 15 8 10 5 5 3 0 - FY15 FY16 FY17 FY18 Maintenance Secondary Sales Project FY 2017 FY 2018 H1 H2 • Strong increase in maintenance • Strong revenue increase from pcp revenue and secondary product sales • Ongoing weighting to H2 • Strong increase in recu
Slide 7: Revenue
Revenue FY 2017 16.5% $m Revenue Categories 61.3% 22.2% 10 8 6 Maintenance Secondary Sales Project 4 FY 2018 17.9% 2 48.4% 33.7% 0 Maintenance Secondary Sales Project FY15 FY16 FY17 FY18 Maintenance Secondary Sales Project • Strong increase in maintenance revenue and secondary sales driven by US bus
Slide 8: Technology and R&D Spend
Technology and R&D Spend R&D spend 8 Millions 7 • DTI has invested in R&D to 6 create industry-leading 5 product solutions for the 4 global mass transit market 3 • R&D cycle peaked in FY17 2 1 with the development of new 0 products to meet the 2013 2014 2015 2016 2017 2018 standards of the rail sect
Slide 9: Balance sheet
Balance sheet $m FY18 FY17 Cash 5.1 3.2 • Rail projects continue to Trade receivables 6.0 9.0 be working capital Other receivables 1.4 3.1 intensive – but net Inventory 8.0 8.0 working capital reduced Property, plant & equip 1.1 1.0 Intangible assets 0.3 5.6 • Negligible bank debt Other assets 0.1 0
Slide 10: Cash flow from Operations
Cash flow from Operations $000s 4,000 1,888 2,000 (307) (11,384) (10,128) 0 (2,000) (4,000) (6,000) (8,000) (10,000) (12,000) 10
Slide 11: Business Overview
BUSINESS OVERVIEW 11
Slide 12: What we do . . .
What we do . . . • DTI designs, develops and installs world-leading surveillance, video analytics, and passenger information systems technology and services to the global mass transit industry • Utilising proprietary software with leading edge hardware (hybrid-recorders, commuter communications syst
Slide 13: Company Snapshot
Company Snapshot Share Price Corporate Details $0.25 6000 ASX Code DTI 5000 $0.20 Closing Share Price Volume (000s) 4000 (27 August 2018) $0. 079 Share Price $0.15 3000 $0.10 Market Capitalisation $17 million 2000 $0.05 Issued Shares 215,341,850 1000 $0.00 0 Major Shareholders Board and Management C
Slide 14: DTI’s Business Model
DTI’s Business Model Opportunity for exponential growth driven by on-ground contracted positioning and recurring revenue Solution Business Recurring Development Development Prospects Contracts Revenue (R&D) & Marketing Maintain market- Product Grow prospects Prospects converted Ongoing orders from l
Slide 15: Key Drivers
Key Drivers R&D R&D investment has allowed DTI to grow its contracted order book1 by 160% Investment from $17.4 million to $45.2 million over the past 18 months Relationship Strengthen relationships with OEMs to allow DTI to participate in the design with OEMs and implementation phase of project ten
Slide 16: Key Milestones Achieved
Key Milestones Achieved • Strategic focus on major rail projects has resulted in continued revenue growth and major project awards (Sydney Metro, MTM, Northern Line) • Significant R&D investment of $21 million over past five years has created industry leading product solutions for the global mass tr
Slide 17: Global Project Execution
Global Project Execution Map Key Complete In Progress Key Prospect • DTI has a successfully demonstrated its ability to secure and execute projects globally • Strong validation of world-class product suite by spread of global project success • Ability to roll-out product on a global scale 17
Slide 18: Operational Update
Operational Update Americas EMEA Australasia • Sales of $5.8 million, up • Sales of $3.6 million, up • Sales of $9.7 million, up 14.8% from $5.0 million 25.4% from $2.9 million 17.2% from $8.3 million in prior period in prior period in prior period • Key transit operators, • Strong interest in DTI •
Slide 19: Key Customers
Key Customers OEMs Municipal Authorities Transit Operators Integrators 19
Slide 20: Order Book / Opportunity Pipeline
ORDER BOOK OPPORTUNITY PIPELINE 20
Slide 21: Order Book
Order Book 50 $m 40 30 20 10 0 Bus Rail Preferred • Order book continues to grow in line with marketing effort • Strong growth in rail sector with strong interest in DTI Passenger Information Systems (63% weighting for opportunities identified) • Order book does not include anticipated recurring wor
Slide 22: Opportunity Pipeline
Opportunity Pipeline Opportunity Pipeline - Region • Significant identified long term pipeline in excess of $405 million 19.9% 25.8% • EMEA presenting strongest opportunities for new growth • Americas includes significant Latin American 54.4% opportunities for expansion • Australia provides DTI with
Slide 23: Opportunity Pipeline
Opportunity Pipeline Mobile Surveillance Passenger Information Systems • Global market for mobile video • Market forecast for Passenger Information surveillance equipment forecast to grow Systems (excluding CCTV) to be US$21.4 at CAGR of 12.1% to 2021 billion by 2022, growing at CAGR of 23% • DTI is
Slide 24: Strategy and Outlook
STRATEGY AND OUTLOOK 24
Slide 25: Strategies Short-term
Strategies Short-term Grow Revenue Base Production Cost Efficiencies Cost Down Strategy Overhead Reduction • Increased order • Product design • Review supply • Tight control of book1 by 51% in finished leading to chain to reduce costs and working past 12 months stable production component costs capi
Slide 26: Strategies Medium and Long-term
Strategies Medium and Long-term Medium-term Long-term • Demonstrate continued profitability • Continue to leverage R&D investment in new market-leading • Ongoing monetisation of past R&D technology platform investment • Develop DTI hardware as platform • Target continued increased in for multiple te
Slide 27: Outlook
Outlook • Continued growth in contracted order book1 to $45.2 million • Identified Opportunity Pipeline of $405 million with $28 million to be awarded within six months • Global demand for mobile surveillance and passenger information system equipment continues to be strong • DTI has developed a str
Slide 28: Disclaimer
Disclaimer Reliance on third party information The information and views expressed in this presentation were prepared by DTI Group Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified. No representation or warra
Slide 29: Contact Details
Contact Details PETER TAZEWELL Chief Executive Officer DTI Group Ltd T: +61 8 9479 1195 E: peter.tazewell@dti.com.au WEBSITE www.dti.com.au 29