Audinate Group Ltd. · ASX:AD8
Audinate — Investor Presentation (February 2020)
30 slides from Audinate's investor presentation, Feb 24, 2020
Slide 1: 1H20 Results Presentation
1H20 Results Presentation Audinate Group Limited: Level 7, 64 Kippax St, Surry Hills NSW 2010 Aidan Williams – CEO & Co-Founder Authorisation: This document was approved by the Board of Audinate Group Limited Rob Goss – Chief Financial Officer
Slide 2: Audinate: pioneering the future of the AV industry
Audinate: pioneering the future of the AV industry The Dante Dante technology distributes audio & video signals across computer networks platform is used in thousands of Audinate is the leading supplier of digital audio & video networking for the installations professional AV industry globally Melbo
Slide 3: 1H 2020 highlights – ongoing growth across financial and operational metrics
1H 2020 highlights – ongoing growth across financial and operational metrics Financial Highlights US$m Gross Margin • A$ revenue growth of 14.1% 80% • US$ revenue growth of 7.9% $8.5 • Gross margin A$ up 20.0% • 77.1% gross margin, up from 73.3% $7.5 76% $7.5 • A$2.9m operating cash flow, up from A$
Slide 4: Interest in Dante stronger than ever
Interest in Dante stronger than ever Increasing number of Dante Increasing market awareness Increasing number of products per OEM of Dante OEMs adopting Dante 2,371 Now >80,000 292 Dante-enabled products Dante trained and certified OEM customers shipping available on the market individuals globally
Slide 5: Competitive Landscape
Competitive Landscape Now 2,518 post ISE tradeshow 2500 Total audio products per protocol(1) 2371 2000 2,371 Dante Number of Products 1500 Dante has 7x Enabled the adoption versus closest competitor Products 1000 Audinate is extending its lead as the 500 clear global market leader in audio 343 166 n
Slide 6: Well positioned to deliver attractive long-term growth
Well positioned to deliver attractive long-term growth Audio Networking for Pro-AV Audinate has the foundations in place to accelerate our product development and support the software transition of the AV industry over the medium term A$400m Investing to double Audinate’s engineering and Team increa
Slide 7: Revenue & Operational Execution
Revenue & Operational Execution • Continued delivery of mature chips, cards & modules products – Meet demand for the 147 newly launched Dante audio products – Using Malaysian manufacturing to avoid US import tariffs • Complete delivery of new products, unlocking repeat orders: – Dante AV Product Des
Slide 8: Financial Performance and Metrics
8 Financial Performance and Metrics
Slide 9: Growth in units shipped complemented by increased software units
Growth in units shipped complemented by increased software units Revenue CAGR of 27.6% (5 yrs) with GP margin growing from Growth in software units driven by royalties & retail sales 75% historically to > 77% due to software growth DDM is also a significant contributor to revenue growth Chip
Slide 10: Income statement
Income statement • 14% AUD revenue growth driven by strong (AU$’000s) 1H20 1H19 Change software sales and favourable FX impacts Revenue 16,147 14,151 14% • Improved gross margin % due to favourable Gross profit 12,453 10,378 20% product mix of higher software sales and Gross margin % 77.1% 73.3% (3.
Slide 11: Positive EBITDA growth, while maintaining R&D focus
Positive EBITDA growth, while maintaining R&D focus • Audinate continues positive momentum across key financial metrics, while still investing for growth • Ongoing focus on innovation and R&D to maximise future growth opportunities Revenue, cost trends (AUD) EBITDA 80% $18 M $1.9 M 75% $1.7 M $15 M
Slide 12: Cash-flow statement
Cash-flow statement (AU$’000s) 1H20 1H19 • Strong growth in operating cashflow - receipts & Receipts from customers 16,367 13,950 payments are consistent with the income statement Payments to suppliers and employees (13,581) (13,470) Interest received 121 102 • New Sydney office impacted payments fo
Slide 13: Balance sheet
Balance sheet (AU$’000s) 31 Dec 19 30 Jun 19 Change ($) • Cash includes $3m “cash in transit” from sale of Cash 34,349 30,069 4,280 former CEO shares, which is offset by other current Trade and other receivables 2,614 2,872 (258) liabilities of an equivalent amount Inventories 971 1,803 (832) Proper
Slide 14: New Products & Applications
New Products & Applications
Slide 15: Dante AV – Audio & Video
Dante AV – Audio & Video Incumbent Video Technologies • HD BaseT (not an IP solution, point-to-point, equivalent of analogue audio cables) • Vertically integrated OEMs with own proprietary solution • Various networked IP solutions including JPEG 2000, SVDOE & ASpeed https://www.ravepubs.com/how-dant
Slide 16: Dante AV – Audio & Video
Dante AV – Audio & Video Dante AV Module • Four designs wins including Yamaha & Bolin • “AV-over-IP” networking module, OEM business model • Dante AV Product Design Suite expected to • V+A+Network (1 video + 8 audio) ship in March 2020 due to product • Commercial launch June 2019, modifications for
Slide 17: Dante Embedded Platform & Application Library
Dante Embedded Platform & Application Library Dante Embedded Platform (DEP) Dante Application Library (DAL) • QSC launch expected in March 20 • Shure launched a software Digital Signal Processer using • Audinate building licensing DAL & also added DDM capability to their product range capability int
Slide 18: Outlook
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Slide 19: Well positioned to deliver attractive long-term growth
Well positioned to deliver attractive long-term growth Audio Networking for Pro-AV We remain confident in Audinate’s position to capitalise on the analogue to digital transition that is gathering pace within the AV industry A$400m Near-term Outlook Medium-term Priorities • Macro-economic conditions
Slide 20: Summary
Summary Global market Attractive financial Innovative Significant market Strong customer Experienced leader profile products opportunity base management team • Dominant • High gross • Strong portfolio • AV market • Existing customer • Strong executive position as global margins of intellectual curre
Slide 21: Questions
ANN - “Hi “Hi ii di
Slide 22: Appendices
Appendices
Slide 23: Audinate is driving the transformation of the AV industry
Audinate is driving the transformation of the AV industry A$400m • Networked digital connectivity is replacing Audinate Total Addressable Market (‘TAM’)* traditional, point-to-point analogue cabling The TAM for digital audio networking is Audinate share of Audio Market in the AV industry A$400m annu
Slide 24: Increasing OEM customer adoption: pipeline for growth
Increasing OEM customer adoption: pipeline for growth 300 OEM customers shipping Dante-enabled products 292 26% 270 250 CAGR in OEMs shipping Dante 228 218 221 200 enabled products 194 179 158 150 142 100 106 92 50 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 Note: per financial year Audin
Slide 25: Consistent growth in product ecosystem
Consistent growth in product ecosystem 2,371 • Product ecosystem with nearly 2,400 Dante-enabled 2,134 products and growing with over 490 OEMs • 47% CAGR in product ecosystem • 7x number of products than the next digital audio 1,751 networking technology 1,639 1,292 1,182 47% 973 CAGR in Dante 874 e
Slide 26: Audinate products
Audinate products Products Audinate’s core technology, called Dante, distributes audio and video Customers signals across computer networks Audinate products OEM Products (OEM Brands) Dante comprises software and hardware that resides inside the audio and video products of Audinate’s Original Equipm
Slide 27: Dante Controller
Dante Controller Dante Controller • Free system setup tool • Downloadable from Audinate homepage • Registration required • Makes virtual wires • > 250,000 downloads • Simple & easy to use • Standard industry matrix view • Training provided via Dante Certification • Devices appear automatically • Int
Slide 28: Dante Audio and Adaptors
Dante Audio and Adaptors Dante Audio Brooklyn Broadway Ultimo Adaptors • Hardware based implementations for a range of product counts and price points • Transports uncompressed audio signals across standard computer networks Dante Adaptors • Connects legacy equipment to Dante (mostly analogue) • Add
Slide 29: New Software Products
New Software Products Dante Application Library (DAL) Ceiling Microphone • Dante for PC/Mac applications Dante IP Core (today) / • Simple way for software developers Software products enable: Dante Embedded Platform to add Dante to their products • Wider proliferation, thru lowered • Launched June 2
Slide 30: 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
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