Etherstack Plc · ASX:ESK
Etherstack — Investor Presentation (October 2016)
21 slides from Etherstack's investor presentation, Oct 14, 2016
Slide 1: Investor presentation Etherstack plc (ASX:ESK) October 2016 Update
For personal use only Investor presentation Etherstack plc (ASX:ESK) October 2016 Update
Slide 2: Disclaimer
2 Disclaimer For personal use only This presentation has been prepared by Etherstack plc (ARBN 156 640 532) (“Etherstack” or “the Company”). The information in this presentation is for information purposes only and is not investment, financial product, legal or tax advice. This presentation contains
Slide 3: What we do
3 What we do For personal use only Mission Critical Radio Networks Specialized Communications equipment Technology Licensing Long term Support Etherstack’s LTE25TM Application allows Royalties government users to communicate securely with traditional emergency radio Customisation and Integration ser
Slide 4: Mission critical radio networks
4 Mission critical radio networks For personal use only Typically used by: Public Safety Organisations (police, fire, ambulance) Utilities (electric, gas, water) Mining/Resource Sector Transportation They form part of essential services infrastructure in every country Etherstack designs, manufacture
Slide 5: Mission critical radio networks - Revenue
5 Mission critical radio networks - Revenue For personal use only Etherstack generates its largest revenues from mission critical radio network equipment sales Etherstack currently has an installed base of 5 major utility networks in the US, Canada and Australia including a major digital radio netwo
Slide 6: Specialised Communications Equipment
6 Specialised Communications Equipment For personal use only Etherstack has designed and developed a “best in class” small form factor tactical repeater solution Used by national policing and defence organisations to provide secure ad hoc communications networks back to command-and-control from anyw
Slide 7: Specialised Communications Equipment - Revenue
7 Specialised Communications Equipment - Revenue For personal use only All electronics and software in these solutions are designed and manufactured by Etherstack Used in high value applications such as disaster recovery, policing and defence applications For example, Etherstack’s in-vehicle repeate
Slide 8: Additional Revenue Streams
8 Additional Revenue Streams For personal use only Technology Licensing Other wireless equipment manufacturers license Etherstack technology for use in: Portable radio products (handhelds, in-vehicle, airborne radios) Radio network tower site equipment IP based core network solutions Cryptographic s
Slide 9: Additional Revenue Streams (contd.) Long Term Support
9 Additional Revenue Streams (contd.) For personal use only Long Term Support Each time Etherstack sells a mission critical radio network, the end user organisation typically enters into a 24x7 support agreement with Etherstack, either directly, or indirectly via a system integrator Lifetime of supp
Slide 10: Additional Revenue Streams (contd.)
10 Additional Revenue Streams (contd.) For personal use only Ongoing royalties Typically on a per unit shipped by the manufacturer using Etherstack technology. Recurring royalties have been consistently growing for Etherstack with a noticeable lift in DMR royalties 2016 Customisation and integration
Slide 11: Solid Growth in Core Industry
11 Solid Growth in Core Industry For personal use only Public Safety communications is a growing global industry From marketsandmarkets.com, November 2015 "Public Safety and Security Market by Solution, Service, Vertical (Homeland Security, Emergency Services, Manufacturing, and Others), and Region
Slide 12: Customers, Licensees, End users
12 Customers, Licensees, End users For personal use only North America Japan Allegheny Energy JVC Kenwood (Pennsylvania/Maryland) NEC Corporation Jersey Central Power & Light (New Jersey) Icom Inc Royal Canadian Mounted Police Australia Ergon Energy (Queensland) Cisco Systems Federal & State public
Slide 13: Over $100m in Revenue since 2007
13 Over $100m in Revenue since 2007 For personal use only 25000 20000 15000 Revenue USD 000 10000 NPAT (underlying -see Note 1) 5000 EBITDA(underlying - see Note 1) 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 -5000 Majority of revenue was earned in North America. The GFC led economic slowdown enc
Slide 14: October Update – Positive 2016 Outlook
14 October Update – Postive 2016 Outlook For personal use only Increased revenues, reduced costs, new contract wins The company expects 2016 revenues to be between USD $5.8m to $6.1m versus USD $2.2 m for 2015 Growing recurring revenue stream base will help smooth out Etherstack’s historically ‘lump
Slide 15: 2016 Update & Outlook: Significantly Reduced Costs
15 2016 Update & Outlook For personal use only Significantly Reduced Costs The company is operating at its lowest cost base in over 6 years, through the rationalisation of product lines and facilities. Operating and investing cash costs excluding cost of sales were reduced Interest costs are declini
Slide 16: 2016 Update & Outlook: IP and Stronger Balance Sheet
16 2016 Update & Outlook For personal use only Intellectual Property Has Been Maintained and Enhanced Notwithstanding reduced operating and investing cash costs the company has maintained and enhanced its intellectual property portfolio and continues to invest in new products. The R&D investment in
Slide 17: Recent significant contract wins
17 Recent significant contract wins For personal use only Recent Wins Etherstack has had numerous new digital radio network wins in the past 12 months that are in various stages of deployment including: New US & Canadian policing networks New US Federal networks, such as the US Dept of Interior New
Slide 18: 2016 Positive Outlook
18 2016 Positive Outlook For personal use only Specialised Equipment Growth Etherstack is experiencing increased demand for its new tactical radio network products. The company is broadening its portfolio and regional certifications in this area to capitalise on demand. Royalty Growth Etherstack’s Q
Slide 19: Outlook Summary
19 Outlook Summary For personal use only Achieved structural changes in the Company’s revenue mix Significantly reduced operating and financing costs Witnessing growing demand across all products and services Benefiting from improved US economy Significant new contract wins already achieved in 2016
Slide 20: Contacts
20 Contacts For personal use only Etherstack plc Level 1 80, Abercrombie St, Chippendale NSW 2008 Phone +61 2 8399 7500 David Deacon, Group CEO, david.deacon@etherstack.com David Carter, Group CFO, david.carter@etherstack.com Media: Walbrook Investor Relations Ben Knowles ben.knowles@walbrookir.com.
Slide 21: Global office contacts
For personal use only London New York +44 207 734 0200 +1 917 661 4110 info.eu@etherstack.com info.na@etherstack.com Sydney Yokohama +61 2 8399 7500 +81 45 342 9050 info.au@etherstack.com info.jp@etherstack.com