Catapult Sports Ltd. · ASX:CAT
Catapult Sports — FY2018 Earnings Presentation
28 slides from Catapult Sports's earnings presentation, Aug 16, 2018
Slide 1: 2018 Results
2018 RESULTS 16 AUGUST 2018 PRESENTERS: Joe Powell, CEO Mark Hall, CFO
Slide 2: Executing Our Strategy
EXECUTING OUR STRATEGY -2-
Slide 3: Own the Performance Technology Stack
LEVERAGE ELITE Innovative product PLAYR released in June 2018 and available INTO PROSUMER throughout UK, Ireland, Europe and USA OWN THE • AMS acquired, integrated and delivering new business PERFORMANCE • Our first integrated 3 product solution sold into US market TECHNOLOGY STACK FOR • Video solut
Slide 4: FY18 Highlights
FY18 HIGHLIGHTS 4 -4-
Slide 5: Strong Results, Profitable Core, Innovation Continues
STRONG RESULTS PROFITABLE CORE INNOVATION CONTINUES • Pro-forma revenue growth +19% to • Core* business is EBITDA and cash • $9.1m invested in R&D $76.8m flow positive • Launched PLAYR prosumer product in • ARR $53.4m (+16%) driven by Elite • UEBITDA^ $8.0m June 2018 wearable ARR +29% • Free cash fl
Slide 6: Strong Results
STRONG RESULTS CORE BUSINESS GROWTH IS BEING POWERED BY ELITE WEARABLES, ELITE VIDEO AND AMS: • Elite wearable revenue +29%, Elite video revenue +6% and +17% in H2 up from -5% in H1 • More than 200 new clients signed in FY18 • AMS has already delivered 20 new clients and has a large cross sell oppor
Slide 7: Strong Results - New Clients
STRONG RESULTS - NEW CLIENTS >1,800 CLIENTS 82 COUNTRIES 35 SPORTS 7
Slide 8: Profitable Core
PROFITABLE CORE • CORE EBITDA GROWTH +38% • ELITE WEARABLES SUBSCRIPTION GROWTH CONTINUES $8.0m 17,098 $5.8m • +27% in FY18 (device numbers) • Total FY18 sales of 9,422 devices, up 1% 1,837 • FY18 subs mix at 57%, down from adjusted FY17 59% FY14 FY15 FY16 FY17 FY18 FY17 FY18 • ARPU STABLE* • ARR IS
Slide 9: Innovation Continues
INNOVATION CONTINUES ENHANCING THE CORE; • 25 new analytic metrics deployed to >250 teams • Expanding into new markets with Catapult Vison and increasing revenue per client • Developing innovative new products eg. tactical analytics IN PROSUMER; • Launched PLAYR on 6 June 2018 • Addressable market o
Slide 10: Innovation Continues - Catapult Vision
INNOVATION CONTINUES - CATAPULT VISION Catapult Vision was launched ahead of schedule and provides easy-to-use video tagging and analytical tools that were built with input from coaches around the world. A key feature is the inherent integrations with Catapult’s performance data. 10
Slide 11: Innovation Continues - Successful PLAYR Launch
INNOVATION CONTINUES - SUCCESSFUL PLAYR LAUNCH 11
Slide 12: FY18 Financials
< -Y18 FINANCIALS
Slide 13: Profit and Loss Statement
PROFIT AND LOSS STATEMENT FY18 FY17 FY17 % change $m $m $m YoY vs Reported Reported Pro-forma* Pro-forma • Revenue growth driven by strong result in elite wearables (up Capital revenue 24.0 17.2 18.3 31% 29%) Subscription revenue 51.5 43.0 45.5 13% Other revenue 1.3 0.6 0.6 117% • Higher capital rev
Slide 14: Revenue Growth
REVENUE GROWTH UNDERPINNED BY GROWTH IN RECURRING REVENUE $76.8m 2.4 Subs. 1.0 0.3 51.5 1.3 0.4 2.2 $64.4m 4.7 Subs. 45.5 60% of elite revenue growth and 48% of total revenue growth driven by growth in elite products recurring revenue Other Other 25.3 18.9 FY17 Subscription Capital sales Other Subsc
Slide 15: Expenses
EXPENSES EXPENSE GROWTH BELOW REVENUE GROWTH SCALED FOR GROWTH STAFF BY REGION OPEX +14% (PRO-FORMA) (STAFF NUMBERS) Labour Non-labour 350 300 250 200 150 288 311 100 50 125 0 FY17 FY18 Jun-16 Jun-17 Jun-18 EMEA Americas Asia Pac 15
Slide 16: Segments
SEGMENTS POSITIVE EBITDA CONTRIBUTION FROM ELITE WEARABLES AND ELITE VIDEO • Core underlying EBITDA* $8.0m entirely attributable to H2FY18 FY18 ($m) Wearables Elite Video New Products Corporate Costs Total • New products revenue $3.4m comprises Revenue – external customers 34.0 39.4 3.4 - 76.8 PLAYE
Slide 17: Cash Flow
FY18 GROUP CASH BALANCE RECONCILIATION (A$m) 2.1 CASH FLOW 77.3 STRONG CASH FLOW Net operating cash flow +6.4m GROWTH AND 24.6 31.7 IMPROVED CASH POSITION 16.7 -73.0 -14.4 -1.5 Cash balance as at 30 Receipts from Government grants Supplier and employee Investment in PP&E Cash flows relating to Cash
Slide 18: Stronger Balance Sheet Provides Platform for Growth
STRONGER BALANCE SHEET PROVIDES PLATFORM FOR GROWTH 30-Jun-18 30-Jun-17 Assets $m $m Cash and cash equivalents 31.7 16.7 Trade and other receivables 31.1 27.1 Inventory 3.8 3.3 • Working capital position1 of $13.5m up from +$7.6m in FY17 PP&E 8.7 7.7 • Trade and other receivables balance up 15% due
Slide 19: Profitable Core - EBITDA Reconciliation
PROFITABLE CORE - EBITDA RECONCILIATION $17.9m $1.1m $8.0m $1.4m $1.5m -$13.9m $1.0m -$6.0m -$1.1m ELITE WEARABLE & CORP. COSTS EMPLOYEE SHARE OTHER NEW PRODUCT CORE UNDERLYING NEW PRODUCTS NEW PRODUCTS UNDERLYING VIDEO EBITDA PLAN COSTS ONE-OFF ITEMS SHARE OF CORP. EBITDA EBITDA SHARE OF CORP EBITD
Slide 20: Cashflow Positive Core
CASHFLOW POSITIVE CORE $2.3m -$0.4m $2.8m $2.3m $1.1m $1.1m $6.0m -$9.6m FY18 GROUP FCF NEW PRODUCTS NEW PRODUCT OTHER NEW BUSINESS OTHER OTHER FY18 CORE FCF EBITDA SHARE OF CORP. ONE-OFF EXPENSE CAPEX ONE-OFF CORP. WORKING CAPITAL COSTS ITEMS CAPEX ITEMS 20
Slide 21: Strategy & Outlook
€ STRATEGY & OUTLOOK
Slide 22: Our Strategy
OUR STRATEGY OWN THE LEVERAGE ELITE INTO PERFORMANCE COMMERCIALISE ELITE WEARABLE& PROSUMER TECHNOLOGY STACK VIDEO DATA FOR ELITE SPORT 22
Slide 23: Own the Performance Technology Stack for Elite Sport
OWN THE PERFORMANCE TECHNOLOGY STACK FOR ELITE SPORT CATAPULT’S STACK INCREASE PENETRATION OF ADDRESSABLE MARKET AMS DRIVING GROWTH AND EFFICIENCY THROUGH THE LEVERAGE SCALABLE FOUNDATIONS CORE BUSINESS INCREASE PRODUCT INTEGRATION ACROSS EXISTING CUSTOMERS ELITE VIDEO TACTICAL ANALYTICS EXPANDING A
Slide 24: Leverage Elite into Prosumer
LEVERAGE ELITE INTO PROSUMER WEARABLE DEVICE PRODUCT ENHANCEMENT OTHER SPORTS TEAM LAYER ~20M ADDRESSABLE MARKET SMARTCOACH SALES AND MARKETING MARKETING AND CHANNEL ACTIVATION AND OPTIMISATION CHANNELS PROFITABLE GROWTH 24
Slide 25: Commercialise Elite Wearable and Video Data Partnerships
COMMERCIAL ELITE WEARABLE AND VIDEO DATA PROVEN IN AUSTRALIAN PARTNERSHIPS MARKET OPERATING CAPABILITIES CONTINUE TO PROGRESS IN OTHER MARKETS PROFITABLE GROWTH 25
Slide 26: FY19 Guidance
FY19 GUIDANCE • CONTINUED STRONG In-line with The Group’s long term guidance provided in March 2018 Catapult is on track to generate positive cash flow at the Group level by FY21. GROWTH FROM THE CORE In FY19 Catapult sees continued strong growth in the core business and upside from Prosumer. • UPSI
Slide 27: Appendix: Statutory to Underlying EBITDA
2.5 APPENDIX: STATUTORY TO UNDERLYING EBITDA 1.5 1.0 • Capital raising, acquisition and integration costs following 0.0 transformational year supporting 0.4 acquisitions and growth 0.1 0.3 • Share based payments costs 0.6 associated with employee share plan and tranche of options awarded to director
Slide 28: Appendix: Elite Wearable Subscription Base
APPENDIX: UNITS ELITE WEARABLE SUBSCRIPTION BASE ELITE SUBSCRIPTION FLEET (30 JUNE 2017) 13,437* NEW SUBSCRIPTION UNITS SOLD 5,330 CHURN - SUBSCRIPTION CONTRACTS NOT RENEWED (1,013) TEAMS REDUCING NUMBER OF UNITS UNDER SUBSCRIPTION (199) TEAMS SWITCHING TO PLAYERTEK OR CAPITAL ARRANGEMENT (457) ELIT