Slide 1: FY18 Results Presentation
FY18 Results Presentation Lee Ellison – Chief Executive Officer Aidan Williams – Co-founder & Chief Technology Officer 27 August 2018 Rob Goss – Chief Financial Officer
Slide 2: Record results & successful launch of new products
Record results & successful launch of new products • Global leader in audio networking, distributing top quality digital audio signals over computer networks • Exceeded prospectus forecasts for revenue, new product revenue, cash-flows, EBITDA & NPAT • Strong growth in Dante enabled products, OEM cus
Slide 3: FY18 exceeded Prospectus forecasts
FY18 exceeded Prospectus forecasts 3 FY18 Results Presentation
Slide 4: 35% growth delivers revenue of USD $15.2m
35% growth delivers revenue of USD $15.2m A$19.7m 75% A$0.6m A$2.5m A$1.0m Revenue Gross Margin EBITDA NPAT up from a Net cash from loss FY17 ($20.2m) operating activities Sydney Trains Sydney, Australia 4 FY18 Results Presentation
Slide 5: Operational results above plan
Operational results above plan 39% 38% 58% 438 18,000+ OEM product growth in growth in Dante OEMs people trained growth to 1,639 chips, cards & software units licensed Dante on Dante this year modules Westfield Mall Shopping Centre London, England 5 FY18 Results Presentation
Slide 6: Growing network effect
Growing network effect Number of Dante-enabled products drives economic network effect 1,639 1,292 1,182 973 CAGR 65% in 874 number of 681 553 Dante-enabled 348 products 223 available in the market 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 Note: per financial half-year 6 FY18 Results Presentation
Slide 7: Strong growth in revenue and Dante units shipped
Strong growth in revenue and Dante units shipped Revenue (US$M) Dante units shipped (‘000s) 398 150 15.2 275 2.3 11.3 95 1.5 175 8.7 6.7 0.9 65 6.0 12.5 248 9.7 180 7.4 4.8 5.5 110 73 43 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Chips Cards & Modules Software Other Chips Cards & Modules Soft
Slide 8: FY18 Financials
FY18 Financials 8 FY18 Results Presentation
Slide 9: FY18 income statement
FY18 income statement (AU$’000s) Investing for growth in FY18 Year Ended 30 June FY18 FY17 Change (%) Sales 19,653 15,063 30% • Sales driven by 38% growth in shipments & 58% Cost of goods sold (5,011) (3,802) 32% growth in software units Gross margin 14,642 11,261 30% • Strong gross profit margin (7
Slide 10: Investing in new product initiatives
Investing in new product initiatives Operating costs $ and % revenue AUD$M Research & development expenditure AUD$’000s 88% 78% 75% 68% 70% 5.7 14.1 2.9 2.8 10.5 3.3 8.9 1.6 2.3 2.8 1.4 1.6 2.2 2.3 1.1 6.4 5.7 1.6 1.4 1.2 0.6 0.9 1.0 0.5 8.8 1.5 2.9 7.3 2.2 5.9 1.7 1.4 4.3 4.2 0.7 FY14 FY15 FY16 FY1
Slide 11: FY18 cash-flow summary
FY18 cash-flow summary (AU$’000s) FY18 FY17 Change ($) • Positive underlying operating cashflow of Cash flows from operating activities $1.9m for FY18 - net IPO impacts (897) (797) (100) - underlying cash flows from operating activities 1,933 2,037 (104) • Total underlying cashflow for FY18 was Net
Slide 12: Statutory balance sheet
Statutory balance sheet (AU$’000s) 30 June 18 30 June 17 Change ($) • Cash movement mainly due to $4.0m IPO Cash and cash equivalents 13,631 18,694 (5,063) related impacts (refer slide 11) Trade and other receivables 1,819 2,030 (211) Receivable from issue of shares 0 4,062 (4,062) • Receivables dec
Slide 13: Robust core business + new products
Robust core business + new products 13 FY18 Results Presentation
Slide 14: Growth Drivers
Growth Drivers • Robust core audio networking business – Strong historic growth in revenue and units shipped (see slide 7) – 1639 products shipping from 221 manufacturers, and growing – Strong pipeline of 217 manufacturers yet to ship first product (see slide 21) – Plenty of runway for growth – mana
Slide 15: Dante AVIO Adaptors – Network Everything
Dante AVIO Adaptors – Network Everything Dante for Introduced 6 new “Problem solver” for Dante AVIO “brown-field” installations Dante AVIO products System Integrators Adapters Online retail & Pull through Shipped Q4 country distributors Dante products • Rationale D - Add Dante to brown-field AV inst
Slide 16: Dante Domain Manager – System Management Software
Dante Domain Manager – System Management Software Logging & Auditing Dante AVIO Secure Control Scale beyond a LAN Adapters Sales Channel Established Shipped Q3 Sold to Installed Base (System Integrators) • Commercial launch Feb 2018 at Integrated Systems Europe (ISE) tradeshow – Approaching 100 rese
Slide 17: Dante Video: Distribute video signals across an IT network
Dante Video: Distribute video signals across an IT network Common management for Lower installation and Independent routing of audio and video cabling costs Audio and Video signals Prototype Demonstrated Displaces expensive Integration with Dante June 2018 matrix switches Domain Manager • Dante AV –
Slide 18: Key Priorities to drive ongoing growth in FY19
Key Priorities to drive ongoing growth in FY19 • Geographically expand of sales and support teams • Broaden our suite of core Dante products to accelerate penetration within OEMs • Invest in the development of our Dante video solution by end of FY19 • Continue the roll-out of Dante Domain Manager an
Slide 19: Appendicies
Appendicies 19 FY18 Results Presentation
Slide 20: Core business growth strategy
Core business growth strategy Increase the number of OEMs adopting Dante Increase penetration of Dante throughout each OEM brand’s product portfolio Increase market awareness of Dante products Educate end users, system designers Encourage existing OEM customers to Continue to sign new OEM partner an
Slide 21: Increasing OEM customer adoption: pipeline for growth
Increasing OEM customer adoption: pipeline for growth OEM customers shipping Dante-enabled products 438 392 346 217 Mfrs 258 Yet to ship 221 189 180 192 144 160 120 109 73 93 52 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 OEM Customers shipping Dante-enabled products Total OEM Customers Audina
Slide 22: Competitive landscape – Networked Audio Products
Competitive landscape – Networked Audio Products Total products per protocol(1) 1800 1639 1600 Audinate is the clear global 1400 Number of Products market leader compared to 1200 competing audio networking 916 1000 solution providers. 800 618 Dante has nearly five times the 600 adoption of its close
Slide 23: Statutory cash-flow statement
Statutory cash-flow statement (AU$’000s) FY18 FY17 Change ($) Cash flows from operating activities Receipts from customers 19,679 15,079 4,600 Payments to suppliers and employees (19,166) (14,407) (4,759) Interest received 251 52 200 Interest and other finance costs paid - (2) 2 R&D incentive (resea
Slide 24: Important notice and disclaimer
Important notice and disclaimer Disclaimer Past performance IFRS and may be calculated differently by other companies. To the maximum extent permitted by law, none of the Past performance information, including past share price Market share information Audinate Group Limited or its subsidiaries or t