Beam Communications Holdings Limited · ASX:BCC
Beam Communications — Investor Presentation (March 2019)
25 slides from Beam Communications's investor presentation, Mar 19, 2019
Slide 1: Investor Presentation – March 2019
19 March 2019 The Manager Market Announcements Platform Australian Securities Exchange Investor Presentation – March 2019 The company is meeting with various investor groups and the attached presentation is for the benefit of all shareholders. Yours faithfully Michael Capocchi Managing Director
Slide 2: Investor Presentation
Investor Presentation March 2019 © Beam Communications
Slide 3: Disclaimer
Disclaimer This document has been prepared by Beam Communications Holdings Limited and comprises written material/slides for a presentation concerning Beam Communications Holdings Limited and its subsidiaries. The presentation is for information purposes only and does not constitute or form part of
Slide 4: Company Snapshot
Company Snapshot • Established innovator, designer and manufacturer of narrow-band mobile satellite devices • Long track record dating back to 2000 • Clients include some of the world’s biggest satellite companies (Iridium, Thuraya and Inmarsat) • Worldwide distribution channels (Telstra, Singtel, K
Slide 5: Investment Proposition
Investment Proposition Earnings inflection point: FY19 turning point with profitable base business and material growth upside from new product launches Fast Growing Market: Exposed to high-growth global satellite comms & IoT markets Strong Balance Sheet: Well-funded to grow (cash + undrawn debt of ~
Slide 6: Clients & Partners
Clients & Partners Beam has an extensive network of Tier-1 satellite distribution partners that spans every country across the globe covering thousands of outlets and points of presence. Designed & manufactured the Developed and Japanese Telco Operator, Iridium GO! device. Longstanding manufactured
Slide 7: Board with the Right Experience
Board with the Right Experience Simon Wallace Michael Capocchi David Stewart Carl Hung Corporate lawyer and equity Over 20 years’ experience in Experienced and successful President and CEO of Season partner in Dentons. the ICT industry. Held senior entrepreneur in ICT industry. Group International,
Slide 8: Favourable Market Dynamics
Favourable Market Dynamics 7 Investor Presentation © Beam Communications
Slide 9: Growth of Narrow-band Satellite
Growth of Narrow-band Satellite Units Land Maritime Aero • Euroconsult forecast number of global satellite 12,000,000 mobile phone & data devices to growth nearly 11% CAGR (2016-2026) 10,000,000 • Biggest growth from IoT/M2M applications 8,000,000 that require always-on low data bandwidth • Low Powe
Slide 10: Best Opportunities for Satellite IoT/M2M
Best Opportunities for Satellite IoT/M2M GROWTH OPPORTUNITIES USER SEGMENTS MAIN APPLICATIONS FOR SAT.IOT • Scanning Supply Chain • Tracking (assets, vehicles and containers) LOW HIGH Beam’s initial range • Cold chain maintenance of new devices will • Telematics (tracking, eCall…) target Supply Chai
Slide 11: Convergence of Satellite & LTE
Convergence of Satellite & LTE Relatively new product category Beam created Dual-band most This includes Beam is world’s first dual- relevant to connected developing other band hotspot applications that vehicles, boats, dual-mode device for require dependable mobile asset products based Thuraya in 2
Slide 12: Diversified Earnings Streams
Diversified Earnings Streams 11 Investor Presentation © Beam Communications
Slide 13: Iridium Opportunity
Iridium Opportunity Secured development agreement with Iridium in 2012 to design and manufacture Iridium GO! device Beam will partner with Iridium First order shipped in FY14 to develop new terminals for and BCC received 6th order Iridium NEXT (e.g. marine, in Feb 2019 vehicular and IoT devices) Fur
Slide 14: Thuraya Opening New Markets
Thuraya Opening New Markets Developed world’s first dual-band hotspot for Thuraya called, Thuraya WE First order of 3,000 units ($4.3m) completed in December 2018 Thuraya WE launched in Middle East, Europe and planning to launch soon in China Other Thuraya partners expected to commence selling the W
Slide 15: Beam Branded Products
Beam Branded Products Innovates, designs and manufactures a broad range of terminals and accessories for Iridium and Inmarsat as Beam branded products These products support, Voice, Data, Messaging and IoT/M2M applications The “BEAM” branding will expand into the new range of LTE/Satellite as well a
Slide 16: SatPhone Shop
SatPhone Shop Wholly-owned subsidiary SPS recorded 35% pcp of Beam and is Telstra’s growth in 1HFY19 and largest satellite dealer in momentum carrying Australia through into 2H. SPS sells Iridium SPS also rents Equipment, Beam equipment and sells manufactured terminals airtime services and accessori
Slide 17: New LTE / IoT Products
New LTE / IoT Products Expanding product Target segments: vehicular portfolio to include LTE (recreational, emergency, logistics), & dual-band solutions maritime and remote locations. Applications: in-vehicle WAN, M2M/IoT, payment, tracking & monitoring, ticketing, digital signage, geolocation, flee
Slide 18: Earnings Inflection Point
Earnings Inflection Point 17 Investor Presentation © Beam Communications
Slide 19: Sustained Turnaround
Sustained Turnaround $m Revenue: First Half & Second Half Split 14 1H 2H 12 • 1HFY19 EBITDA $1.54m vs. FY18 full year EBITDA of -$607K 10 • Expecting to return to profit in 8 FY19 and FY20 following two 6 years of losses 4 • 2HFY19 is forecast to be at least as good as 2HFY18 but won’t 2 match recor
Slide 20: Solid Earnings Base FY19 & FY20
Solid Earnings Base FY19 & FY20 Beam Branded SatPhone Shop Contracted Iridium GO! Positive Products (SPS) Orders NPAT Revenue from Beam Branded Products alone is enough to produce a positive EBITDA based on current growth trend Beam Branded Products and SPS sales growth accelerating (14% p.a. since
Slide 21: Additional Revenue Opportunities
Additional Revenue Opportunities Additional New LTE / IoT Additional Dual- Launch of Develop new Thuraya WE devices Mode Satellite / new JV device for Iridium orders LTE terminals product NEXT These opportunities are expected within the next 12-18 months 20 Investor Presentation © Beam Communication
Slide 22: Milestones
Milestones New Cat M1 / Additional New Joint New Dual- NBIoT New Iridium Iridium GO!* Launch New Venture Mode Personnel Satellite & Thuraya LTE Products Business Satellite / LTE and Industrial Terminals WE Announced Terminals devices Orders* Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 * Timing of these orders i
Slide 23: Peer Comparison
Peer Comparison Beam’s relative income to market capitalisation COMPANY REVENUE FY18 EBITDA FY18 SHARE PRICE (1YR) MARKET CAP Speedcast International (SDA) $882.8m $187.6m -31.5% $929m SKY and Space Global (SAS) Negligible -$7.1m -80.7% $61m AddValue Technologies* $5.8m -$12.7m -42.5% $45m Mobilicom
Slide 24: Summary
Summary ✓ On track to deliver Leveraged to fast Profitable business Multiple near-term significantly stronger growing IoT/M2M with established track milestones results in FY19 market record High growth with Improving earnings Funded for current relatively defensive stability with wider growth initia
Slide 25: Thank You
Thank You 24 Investor Presentation © Beam Communications
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