Etherstack Plc · ASX:ESK
Etherstack — Investor Presentation (December 2020)
23 slides from Etherstack's investor presentation, Dec 9, 2020
Slide 1: Corporate Presentation
For personal use only Corporate Presentation Etherstack plc (ASX:ESK) December 2020 Authorised for release by David Carter
Slide 2: Etherstack Snapshot
2 Etherstack Snapshot For personal use only Who we are • Etherstack is an established wireless technology company serving public safety, electric utility, resource and defence sectors across the globe • We develop and license wireless technologies to other equipment vendors as well as design, manufa
Slide 3: Business Overview
3 Business Overview For personal use only Terrestrial Digital (VHF, UHF, 700MHZ) Cellular Networks (4G & 5G) Satellite PTT Networks (GS, LEOS, MEOS) Traditional Digital Mission Critical Push to Talk Push to Talk (PTT) Over Satellite LMR Products (MCPTT) Solutions Advances in satellite communications
Slide 4: December 2020 - Australian Department of Defence Contract Win
4 December 2020 - Australian Department of Defence Contract Win For personal use only Etherstack’s Defence Technology Expertise • Small form factor tactical communications products, providing secure communications on the move. Supplied to US federal agencies for some years • Cryptographic modules an
Slide 5: June 2020 - Samsung Global Teaming Agreement
5 June 2020 - Samsung Global Teaming Agreement For personal use only Partnership to Deliver Next Generation MCPTT • Emerging cellular standard to provide public safety solutions within 4G and 5G cellular networks • Builds on Etherstack’s digital land mobile radio technologies embedded within Samsung
Slide 6: Etherstack Market Opportunity
6 Etherstack Market Opportunity For personal use only Global Telcos Global Push to Talk National carriers expected to provide guaranteed capacity to public Market Size safety agencies in each country (e.g. bushfires, ambulance, policing) Initial focus is on 37 OECD countries – approximately 100 -120
Slide 7: Etherstack Market Trends
7 Etherstack Market Trends For personal use only Etherstack is leveraged to government and infrastructure spend ü Etherstack is influenced by government and industry infrastructure spending which flows to areas such as public safety, utilities, defence and resource projects ü Unprecedented global st
Slide 8: Etherstack Traditional Business
8 Etherstack Traditional Business For personal use only Digital Land Mobile Radio Networks • Used by police, fire, ambulance services, utilities, resources etc. • Typical lifespan 10-15 years (= long term govt. backed support contracts) • Electric utilities: in recent years, Etherstack has deployed
Slide 9: Recurring Revenue: Network Deployments drive Support Revenues
9 Etherstack Traditional Business For personal use only Recurring Revenue: Network Deployments drive Support Revenues • As we deploy more networks, our long-term support revenues continue to grow • Support revenues have increased by over 350% since 2014 (an CAGR of 36.7% over the past 5 years) • New
Slide 10: Etherstack Licensing and OEM business
10 Etherstack Licensing and OEM business For personal use only Technology licensing & OEM supply • Etherstack licenses core wireless technologies, such as ”air interface protocol stacks” to wireless equipment manufacturers for embedding in chipsets within their products • The company also supplies a
Slide 11: Etherstack Underlying Tech Trends – 5G
11 Etherstack Underlying Tech Trends – 5G For personal use only Etherstack Key Technology Trends: 1. Evolution to MCPTT (Mission Critical Push To Talk a.k.a. MCPTX) • Ubiquitous availability of broadband wireless technologies (wifi, 4G & 5G) in urban areas is transforming emergency services and publ
Slide 12: Etherstack Underlying Tech Trends – Satellite
12 Etherstack Underlying Tech Trends – Satellite For personal use only Etherstack Key Technology Trends: 2. PTT over Satellite Solutions • Advances in satellite communications technologies and launch vehicle platforms have seen an unprecedented number of satellites launched in the past 12-24 months
Slide 13: Etherstack Evolving Business
13 Etherstack Evolving Business For personal use only MCPTT Networks Focus • Developments in MCPTT will require the development of hybrid cellular and traditional narrowband public safety networks to serve public safety and security services over the next two decades • The initial focus from our lar
Slide 14: Etherstack Revenue Mix
14 Etherstack Revenue Mix For personal use only How we derive revenues • Etherstack supplies wireless products and technologies to the essential communications industry globally in the form of finished products, digital radio network systems and technology licensed to other manufacturers for inclusi
Slide 15: 2021 Vision: New Products & Partnerships
15 2021 Vision: New Products & Partnerships For personal use only Innovation and Investment in R&D Etherstack has invested in excess of US$20 million into our suite of intellectual property assets and has developed a substantial intellectual property portfolio that generates revenue streams from div
Slide 16: Building on Success
16 Building on Success For personal use only Key accomplishments 2019 – 2020 YTD Key short and medium term milestones April New radio network contract for public safety and 2019 emergency services personnel in the State of Idaho • Release of new MCPTX products Public Safety • Announcement of first t
Slide 17: December 2020 Business update
17 December 2020 Business update For personal use only Selected business achievements in 2020 include: • Global Samsung Partnership: Ongoing development and integration activities with Samsung, in parallel with Samsung pursuit of initial orders; • Royal Canadian Mounted Police: First contract order
Slide 18: Growing high margin, recurring revenue base
18 Growing high margin, recurring revenue base For personal use only Recurring Revenue Number of significant supported US 1.8m networks US 1.7m 13 Estimated lifetime of US 1.5m current networks are typically 11 11 10 – 15 years 9 US 1.1m 7 6 US 0.6m 2015 2016 2017 2018 2019 Up to 2015 2016 2017 2018
Slide 19: Income Statement
19 Income Statement For personal use only US$'000 2017 2018 2019 1H 2020 • Recurring Support revenues driven by multiple contract wins including: ─ Ergon Energy ─ First Energy – Allegheny Energy Revenue from Contract with customers 4,239 5,366 4,792 2,405 ─ First Energy – Jersey Central Power & Ligh
Slide 20: Balance Sheet & Cash Flow Statement
20 Balance Sheet & Cash Flow Statement For personal use only US$'000 Pro-Forma 1-July-20 1 US$'000 FY17 FY18 FY19 1H FY20 Cash and bank balances 1,480 Net cash generated from operating activities (599) 1,528 1,364 1,354 Net cash flow (used in) investing activities (819) (1,267) (1,223) (502) Trade a
Slide 21: Disclaimer
21 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 contain
Slide 22: Contacts
22 Contacts For personal use only Etherstack plc 93A Shephard Street, Chippendale NSW 2008 Phone +61 2 8399 7500 David Deacon, CEO, david.deacon@etherstack.com David Carter, CFO, david.carter@etherstack.com ©©Etherstack © Etherstack Etherstack 20202018 2015, under NDA
Slide 23: For personal use only
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