Slide 1: H1 2023 Update March 2023
H1 2023 For personal use only Update March 2023 Reset & stabilisation underway Moving to growth phase
Slide 2: Important notice
Important notice For personal use only This presentation has been prepared by Spacetalk Ltd. (“Spacetalk,” or “Company,” or “SPA”). Information contained in this presentation: • is intended to be general background information only, and is not intended that it be relied upon as advice to investors o
Slide 3: Statement of Profit or Loss Highlights
Statement of Profit or Loss Highlights 6 Months Ended For personal use only 31/12/2022 31/12/2021 $m $m Revenue 9.3 12.5 Gross Profit 4.5 7.0 H12023 (Loss)/profit before tax (9.2) (2.5) Net profit for the period attributable to owners of the company (9.2) (1.8) Financial 6 Months Ended 31/12/2022 31
Slide 4: Financial Highlights: Group Revenue
H12023 Financial Group Revenue For personal use only Highlights $25.0 GROUP REVENUE BY QUARTER • Revenue down 26% as we stopped unprofitable Kids Smartwatch to be replaced Q1 Q2 Q3 Q4 with profitable alternative in Q4 $20.0 • Strong revenue contribution $4.1 by JumpySIM $15.0 $4.3 $3.0 $10.0 $1.1 $3
Slide 5: ARR
H12023 For personal use only ARR ARR $7.4m +29% pcp +43% wearables pcp 8 6 2.5 2.3 4 2.6 2.2 5 2 3.5 0.3 1.3 2.3 0 0 H1 FY2019 H1 FY2020 H1 FY2021 H1 FY2022 H1 FY2023 Wearables app subs + Jumpysim Schools
Slide 6: Cash flow & cash management
Cash flow & cash management For personal use only • $4.2m Cash at 31 December 2022 Cash flow by quarter in AUD millions • 2Q23 positive cash flow* for quarter versus 1 cash burn in previous quarters 0.5 • Significant improvement in operating cash flow 0.4 for H1 of -$0.96m vs -$3.6m PCP 0 4Q21 1Q22
Slide 7: Capital Raise Complete
For personal use only • Non-renounceable entitlement offer announced in November was closed on 23 December raising $1.15m (before costs) • A further $1.23m (before costs) was raised in the short fall placement concluded in February 2023, including $230k from Directors Capital • Total raised was $2.4
Slide 8: Restructured Debt Facility
For personal use only Restructured • Renegotiated Pure debt facility of $5m finalized in December 2023 Debt Facility • Reduced interest rate • Pushed out maturity date of 2nd debt tranche ($2m) to 1 July 2024. 1st tranche ($3m) still to 20 March 2025. • Improved covenants better aligned with Company
Slide 9: Management team background
Management team background For personal use only Simon Crowther Craig Boshier CEO and Managing Director COO Simon Crowther is a serial entrepreneur and CEO with 20 years Craig Boshier has over 15 years’ experience working with of commercial success rooted in the technology sector. Simon high-growth
Slide 10: Strategic Review: Focused Goals & Disciplined Execution
Strategic Review For personal use only Focused Goals & • Brand – Building upon Spacetalk’s strong brand equity, Disciplined we will align our ecosystem of products around this Execution central brand. • Digital Channels – Leveraging our existing digital footprint, and developing new forms of digital
Slide 11: Focused Goals & Disciplined Execution
For personal use only Focused Goals & • Schools Business – We will renew our focus on Disciplined engaging state and private school networks with our highly profitable schools SaaS product suite. Execution • Cost Management – We will increase our focus on cost management within the business as we co
Slide 12: Summary
Summary For personal use only Cash Flow Kids watch re-entry ARR Increase Positive in Q2 in Q4 Growth strategy Cost and cash Recapitalised Strong management Management team
Slide 13: About Spacetalk
This announcement has been For personal use only authorized by the Spacetalk Board. Spacetalk Ltd. (ASX:SPA) is a global technology provider of secure communication solutions for families to stay connected and protected. Spacetalk’s range of all-in-one smartphone GPS watches for children (Spacetalk
Slide 14: spacetalkwatch.com
For personal use only spacetalkwatch.com