Slide 1: Investor Presentation
For personal use only Investor Presentation ReadCloud Limited ASX: RCL, RCLO May 2019 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by ReadCloud Limited (“Readcloud”), based on information available as at the date of this presentation. The information in this presentation is For personal use only provided in summary form and does not contain all information necessary to make an inve
Slide 3: Corporate summary
Corporate summary For personal use only Stock Overview Substantial Shareholders ASX code RCL Amity Agency Pty Ltd 16.3% Share Price (3 May 2019) $0.325 Thorney Group 11.5% Market capitalisation (@ 32.5 cents) $28.5m Lars Lindstrom 9.7% Shares on issue (listed) 44.2m Hunmar Holdings/Darren Hunter* 8.
Slide 4: Company overview
Company overview For personal use only ReadCloud is a leading provider of software solutions, including eBooks, to schools within Australia ● ReadCloud delivers the full school curriculum, including Vocational Education and Training (“VET”) content, integrated seamlessly from publisher to student ●
Slide 5: ReadCloud is a complete eLearning solution
ReadCloud is a complete eLearning solution For personal use only 5
Slide 6: Revenue streams
Revenue streams For personal use only School Curriculum VET in Schools Resellers Broader VET • Users are secondary school • Users are secondary school • Users are secondary school • Users are VET students in students and teachers in years students and teachers in years students and teachers in years
Slide 7: Recent financial & operational highlights
Recent financial & operational highlights For personal use only $2.3 million 80,000 43 1H19 Revenue ReadCloud users ReadCloud Curriculum customer schools 97% on 1H18 60% on FY18 115% on FY18 ($1.2 million) (50,000 users) (20 schools) 74 140 257 ReadCloud Reseller schools ReadCloud VET Schools School
Slide 8: ReadCloud recently partnered with ATP
ReadCloud recently partnered with ATP For personal use only In April 2019, ReadCloud entered into a 3-year exclusive Strategic Distribution Agreement with Australian Training Products (“ATP”) ● ATP provides a range of bespoke learner resources for both Australian and international customers across V
Slide 9: Market opportunity
Market opportunity Immediate Market Opportunity Broader Market Opportunity For personal use only 242,000 4.2 million students 1.6 million students students in enrolled in VET in 2,700 secondary VET courses with 4,193 schools in Australia1 in-school training providers in courses2 Australia3 Secondary
Slide 10: Strong growth in school and user numbers and revenue
Strong growth in school and user numbers and revenue For personal use only Recent wins ● 5 new direct school customers since announcement of ReadCloud’s 1H19 result ● 49 new VET customer schools signed up in WA ● 1 new reseller in Mackay, QLD ● A ReadCloud competitor LearningField recently decided t
Slide 11: Update on AIET acquisition
Update on AIET acquisition For personal use only ● AIET is a leading Registered Training Organisation (“RTO”) that provides Vocational Education and Training (“VET”) courses and accreditation that enables secondary schools to offer VET courses under AIET's RTO licence ● ReadCloud acquired 100% of AI
Slide 12: 1H19 Financials
1H19 Financials For personal use only 1H19 1H18 ● Sales and fee revenue up 102% ● % Margin on eBook sales (sale and fee revenue excluding software Sales and fee revenue $2,083,226 $1,032,484 licence revenue less publisher and bookseller fees) consistent with Other revenue $255,201 $153,197 prior per
Slide 13: Consolidated Balance Sheet
Consolidated Balance Sheet For personal use only Note 31-Dec-18 30-Jun-18 1. $1.55 million received from customers in March 2019 quarter Cash and cash equivalents 2,915,920 4,593,330 2. Comprises capitalised software development ($1.9 million), goodwill ($0.7 million) and other intangibles acquired
Slide 14: Growth Strategy
Growth Strategy For personal use only School Curriculum VET in Schools Resellers Broader VET • Expanded use of platform in • New schools • Cost effective sales channel • Partnerships with educational existing schools across content publishers looking for • Cross-selling ReadCloud • New reseller arra
Slide 15: Outlook
Outlook For personal use only ● Revenue for 2H19 expected to exceed 1H19 revenue ($2.3 million) which will be more than double the revenue of FY18 ($2.1m) ● Additional schools signed up since 1H19 (both curriculum schools and for VET courses) ● Additional penetration of school year levels in existin
Slide 16: Investment summary
Investment summary For personal use only ● ReadCloud is the leading digital education solution for Australian schools delivering clear educational benefits ● It has rapidly grown from 50 school customers when listed in February 2018 to over 250 school customers in school year 2019 ● Revenue for 2H19
Slide 17: ReadCloud Limited contact
For personal use only ReadCloud Limited 426 Glenhuntly Rd Elsternwick VIC 3156 Contact: Lars Lindstrom - CEO - lars@readcloud.com 17