Audinate Group Ltd. · ASX:AD8
Audinate — Investor Presentation (July 2020)
22 slides from Audinate's investor presentation, Jul 22, 2020
Slide 1: Audinate Group Limited Equity raising – investor presentation
Audinate Group Limited Equity raising – investor presentation 22 July 2020 Equity Raising Presentation NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Disclaimer and important notice
Disclaimer and important notice Summary Information Investment Risks This presentation has been prepared by, and is the sole responsibility of, Audinate Group Limited ACN 618 616 916 (“Audinate” or the An investment in Audinate shares is subject to investment and other known and unknown risks, some
Slide 3: Disclaimer and important notice
Disclaimer and important notice Disclaimer Future Performance Neither the Company, nor the Underwriters nor any of their respective related bodies corporate and affiliates, and their respective Past performance information provided in this document may not be a reliable indication of future performa
Slide 4: Executive summary
Executive summary Audinate Group Limited (“Audinate” or “the Company”) is raising: • A$28 million via a fully underwritten Institutional Placement to professional and sophisticated Equity Raising investors at an issue price of A$5.15 per share (“Placement”); and • up to A$12 million in a Share Purch
Slide 5: World-leading supplier of digital media networking
World-leading supplier of digital media networking Highlights Increasing market awareness and adoption of Dante >A$1bn Total addressable market(1) 3000 2,804 Total audio products per protocol(1) 2500 292 OEM customers shipping Dante Dante has 8x enabled products 2000 the adoption versus closest comp
Slide 6: Operational update
Operational update Audinate is well positioned to capitalise on medium-term growth objectives, despite taking prudent measures during COVID-19 COVID-19 impact and measures adopted Continued conviction for medium-term priorities • Addition of contract manufacturing in Malaysia and internal auditing o
Slide 7: Unaudited FY20 results
Unaudited FY20 results FY20 Revenue(1) FY20 EBITDA(1,2) US$20.4m A$2.0m (A$30.3m) Pro-forma cash FY20 Gross margin(1) position ~77% ~A$56m(3) 1) Approximate figures based on unaudited results 2) EBITDA is exclusive of non-recurring costs and includes CEO transition costs of A$0.6m and redundancy cos
Slide 8: Equity raising summary
Equity raising summary Fully underwritten Placement to raise A$28 million and non-underwritten Share Purchase Plan to raise up to A$12 million • Fully underwritten Placement to raise approximately A$28 million via the issue of 5.4 million new ordinary fully paid shares (“New Shares”) at A$5.15 per s
Slide 9: Proposed use of funds
Proposed use of funds Audinate is well positioned to take advantage of current market opportunities to strengthen its global leadership position 1• Increase investment in engineering, R&D capabilities and business infrastructure to extend its market-leading position in the audio networking space 2•
Slide 10: Equity raising timetable
Equity raising timetable Institutional Placement Date Trading halt and announcement of Placement and SPP Wednesday, 22 July 2020 Placement bookbuild Wednesday, 22 July 2020 Trading halt lifted and Audinate shares recommence trading on ASX Thursday, 23 July 2020 Settlement of Placement Monday, 27 Jul
Slide 11: Key risks
Key risks This Section describes some of the potential material risks associated with Audinate’s business, the industry in which Audinate operates and the risks associated with an investment in Shares. Audinate is subject to a number of risks, both specific to the Company’s business activities and o
Slide 12: Key risks (cont'd)
Key risks (cont'd) Risk Factor Summary Specific Risks The introduction of new or increased trading tariffs, import or export duties or other trade restrictions may affect Audinate’s competitiveness in, and limit its access to, particular markets. In Tariffs and duties particular, if the United State
Slide 13: Key risks (cont'd)
Key risks (cont'd) Risk Factor Summary Specific Risks Audinate sells chips and printed circuit board modules which incorporate its software. These devices are manufactured or supplied by third parties. A disruption to supply of these components or the manufacturing of these devices could have a mate
Slide 14: Key risks (cont'd)
Key risks (cont'd) Risk Factor Summary General Risks Audinate, as a publicly listed company on the ASX, is subject to general market risks applicable to all securities listed on a stock exchange. This may result in fluctuations in the share price that are not explained by the performance of Audinate
Slide 15: Foreign selling restrictions
Foreign selling restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold in the Plac
Slide 16: Foreign selling restrictions (cont'd)
Foreign selling restrictions (cont'd) This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold in
Slide 17: Overview of underwriting agreement
Overview of underwriting agreement Audinate has entered into a placement agreement with the Joint Lead Managers (Underwriters) dated 22 July 2020 (Underwriting Agreement). The Underwriters have agreed to fully underwrite the Institutional Placement to raise A$28 million (Placement Amount) via the is
Slide 18: Thank you
Thank you 18 Equity Raising Presentation
Slide 19: Appendix: Supplementary information
Appendix Supplementary information 19 Equity Raising Presentation
Slide 20: Audinate - Pioneering the future of AV
Audinate - Pioneering the future of AV World-leading supplier Growing network effect Products of digital media with number of Dante- Audinate’s core technology, called Dante, distributes media signals networking for the enabled products in market across computer networks Professional AV industry 2,8
Slide 21: 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 194 products 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 22: Growth drivers
Growth drivers Robust core audio networking business • Market leadership position in digital audio networking • 2,804 products shipping from 292 manufacturers, and growing • Strong pipeline of Dante from 179 manufacturers yet to ship first product • Continued conversion from analogue connected syste