Slide 1: TZ Limited FY14 Full Year Preliminary Results
TZ LIMITED FY14 FULL YEAR For personal use only PRELIMINARY RESULTS 27th August 2014 “FY14 was a milestone year … TZ is demonstrating and delivering the characteristics of a true high growth, global technology business.” www.tz.net
Slide 2: What We Will Cover
What We Will Cover For personal use only 1 2 3 4 5 TZ Business 2014 Financial Operational Business Strategy, 2015 Key Priorities Overview Performance Highlights Growth Drivers, and Outlook Competitive Strengths www.tz.net Slide | 2
Slide 3: TZ Business Overview
For personal use only TZ Business 1 Overview www.tz.net Slide | 3
Slide 4: 2014 key metrics
For personal use only 208% 76 10 2014 Revenue Growth Total Patents Granted 2014 New HW +SW Products Launched > 40 12 42 Large Corporate Countries where Number of Staff Customers TZ Products are Sold www.tz.net Slide | 4
Slide 5: TZ Business Overview
TZ Business Overview TZ is the market leader in SMArt Device technology – SMA actuated, IP enabled, intelligent fastening and locking devices controlled remotely via software. For personal use only TZ technology provides enhanced security and asset protection through remote monitoring and softwa
Slide 6: TZ Snapshot
Business Streams TZ Snapshot infrastructure Data Centre Rack Security Company Purpose protection For personal use only market size: ~ 25M installed base TZ is the leader in SMArt Device™ technology + 2M new cabinets per year combining state-of-the-art SMA actuated addressable opportunity: > US$120
Slide 7: Financial Performance
For personal use only Financial 2 Performance www.tz.net Slide | 7
Slide 8: Financial Performance – Continuing Operations
Financial Performance – Continuing Operations 2014 2013* Preliminary Audited Change % For personal use only REVENUE A$8.5M A$2.8M 208% EBITDA (A$8.5M) (A$11.8M) 28% Normalised EBITDA (A$5.6M) (A$6.3M) 11% NPAT (A$11.8M) (A$16.5M) 28% Normalised NPAT (A$8.9M) (A$11.1M) 20% EPS (cents) (4.4)
Slide 9: Normalised EBITDA and NPAT
Normalised EBITDA and NPAT EBITDA NPAT For personal use only 2014 Preliminary 2013 Audited 2014 Preliminary 2013 Audited (A$’000s) (A$’000s) (A$’000s) (A$’000s) (8,479) (11,803) (11,789) (16,524) Add Back: Net loss on movement in fair value of derivative liabilities - 380 - 380 Net loss on renegotia
Slide 10: Revenue Growth Accelerating
Revenue Growth Accelerating For personal use only A$6M infrastructure packaged asset protection delivery A$5.4M A$5M A$1.2M to A$2.4M A$1.6M to A$5.4M A$4M Backlog: A$0.3M Backlog: A$3.0M Backlog means purchase Backlog means purchase orders received but goods orders received but goods A$3M not yet d
Slide 11: Sales by Business Unit
Sales by Business Unit 2014 2013 For personal use only Preliminary Unaudited Change % IXP REVENUE A$2.4M A$1.2M 100% PAD REVENUE A$5.4M A$1.6M 238% INFINITY REVENUE A$0.7M N/A TOTAL BACKLOG A$3.3M A$0.6M 450% TOTAL A$11.8M A$3.4M 247% TZ met guidance of >$A8M in sales as outlined in the 2013
Slide 12: Investing for Growth
Investing for Growth 2014 2013 Change % For personal use only OPERATING REVENUE A$8.48M A$2.75M 208% COST OF GOODS 50% 50% No Change GROSS MARGIN 50% 50% No Change EMPLOYEE BENEFITS EXPENSE A$5.74M A$3.85M 50% OCCUPANCY EXPENSE A$0.28M A$0.22M 27% COMMUNICATIONS EXPENSE A$0.11M A$0.13M 18% P
Slide 13: Operational Highlights
For personal use only Operational 3 Highlights www.tz.net Slide | 13
Slide 14: FY14 Major Events
FY14 Major Events AUG Acquisition of Infinity Design to support internal development initiatives Intelligent Locker contract wins as TZ pursues US University and College market For personal use only Accelerated roll-out of Sing Post POPStation Locker Network – 100 Locker Banks by YE 2014 NOV Large I
Slide 15: Infrastructure Protection
For personal use only infrastructure protection www.tz.net Slide | 15
Slide 16: IXP Sales Highlights
IXP Sales Highlights Europe and the Middle East Major supply contract for significant For personal use only Defence Agency project Expanding business with major IT service providers North America Strong growth into US Govt, Asia Defense, Banking and Financial Sectors New Distribution Partner
Slide 17: Customer testimonial: Control Circle
““The electronic locking system we deployed didn’t provide the full accountability that we need For personal use only to meet our customers’ strict security standards, so we went shopping for a new solution. We considered solutions offered by dedicated rack manufacturers and we also looked at TZ. On
Slide 18: Packaged Asset Delivery
For personal use only packaged asset delivery www.tz.net Slide | 18
Slide 19: PAD Sales Highlights
PAD Sales Highlights Europe For personal use only Won supply contract for Poste North America Italiane Parcel Locker pilot Asia Expanding business with On-going supply contract for world recognised IT and 100 Locker Banks for Sing technology corporations for Post Accountable Mail offering Wo
Slide 20: Poste Italiane selection testimonial
“Poste Italiane selected TZ, following an extensive evaluation lasting over a year For personal use only and involving several stages of qualification. TZ was judged to be the best provider because the solution represented the best value in terms of reliability, ease of use, customisation possibilit
Slide 21: IXP Product Development
IXP Product Development For personal use only Launch TZ SwingHandle™ to Improve software capability to support Launch annual support and target traditional handle market larger DC deployment needs: maintenance offering Introduced world’s first in-situ Upgraded IXP Bridge Firmware Established a
Slide 22: PAD Product Development
PAD Product Development For personal use only Launch Day Locker Management Expand PAD platform software Expand Corporate Mail software System offering: capability to support Postal offering: offering: Secured specification as Built new Client Software engine Extended Corporate Mail Westpac’s p
Slide 23: Other Initiatives
Other Initiatives For personal use only OurPAD Development: Expand PAD platform software into Next Generation NFC Devices: Development of production mobile applications: Extend TZ SMArt Device thinking version of OurPAD based on New mobile phone app for Postal to leverage NFC (near field partn
Slide 24: Execution Strategy, Growth Drivers and Sensitivities
For personal use only Execution Strategy, 5 Growth Drivers and Sensitivities www.tz.net Slide | 24
Slide 25: Execution Strategy
Execution Strategy For personal use only 1 2 3 4 5 Remedial Strengthen Innovate, Awareness, Accelerated New Product Marketing, Growth Development Commercialisation Fixed corporate Eliminate debt, Develop and launch Explore and contract Expand technology structure and improve financial position, new
Slide 26: IXP Growth Drivers
IXP Growth Drivers Where adopted, there are two TZ Smart Locking Devices on every Frost & Sullivan TZ Management cabinet in the data centre … 4,000 Projections Estimates 25,000,000 installed base of data For personal use only centre cabinets globally 3,500 2,000,000 date centre cabinets Racks De
Slide 27: PAD Growth Drivers
PAD Growth Drivers Postal organisations and logistics companies are exploring automated parcel locker to: Improve operational efficiency For personal use only and address the increasing costs associated with unsuccessful first try deliveries to households Provide cost effective and convenient ph
Slide 28: Sensitivities
Sensitivities TZ sales highly dependent on infrastructure roll-out … Delays in deployment could impact timing of revenue recognition. TZ only recognises sales revenue when the product is dispatched. For personal use only A number of major postal tender submissions are pending where TZ is short l
Slide 29: 2015 Key Priorities and Outlook
For personal use only 2015 Key Priorities 5 and Outlook www.tz.net Slide | 29
Slide 30: Key Priorities
Key Priorities For personal use only 1 focus on revenue growth … >$15M FY15 sales target 2 improve manufacturing cost … target 15% overall GM gain 3 build annuity revenue stream … higher value SW offerings 4 explore partnership opportunities to leverage TZ IP and technology www.tz.net Slide | 30
Slide 31: Focus on Revenue Growth
Focus on Revenue Growth Infrastructure Protection: Secure OEM supply relationships for TZ SwingHandle to penetrate existing mechanical lock market and build For personal use only opportunities for future TZ electronic upgrade. Increases total available market substantially. Build sales momentum
Slide 32: Improve Manufacturing Cost Base
Improve Manufacturing Cost Base For personal use only Successfully transition primary manufacturing of proprietary TZ components to China to materially GM Device Unit Cost improve manufacturing cost base Gain Build sourcing capability in Asia to improve purchasing economies for off-the-shelf har
Slide 33: Build Annuity Revenue Streams
Build Annuity Revenue Streams For personal use only Move from single software license to higher value Average Software Sale custom Application / Server / Integration software package offering Establish new enterprise software licensing models to support major Client – Server deployments Expand
Slide 34: Explore Partnership Opportunities
Explore Partnership Opportunities A.D.A.M. Parcel Locker Network For personal use only Proof of concept Pilot has been established to prove Locker Network viability to potential partners. Explore partnering opportunities for A.D.A.M. Parcel Locker Network to enable end-to-end B2C and C2C offerin
Slide 35: Outlook and Conclusions
Outlook and Conclusions FY14 milestone year: verified market opportunities, proven business model, disciplined execution and cost control, global customer endorsements and contract wins, strong momentum into FY15 For personal use only FY14 revenue guidance achieved. New guidance for FY2015 >$15M
Slide 36: For personal use only
For personal use only “I believe that remotely controlled devices with integrated intelligence capable of manipulating things in space will be integral to building and maintaining the infrastructure of the built world … There are no other devices like ours in production and we are out in front of th
Slide 37: Important Notice
Important Notice For personal use only The information contained in this presentation is given in good faith and has been prepared from information believed to be accurate and reliable. The information presented does not take into account your individual financial circumstances and it is not designe