Spacetalk Limited · ASX:SPA
Spacetalk — Shareholder Meeting (November 2019)
25 slides from Spacetalk's shareholder meeting presentation, Nov 29, 2019
Slide 1: Annual General Meeting and Trading Update
Annual General Meeting and Trading Update 29 November 2019 Available with Video Download Streaming at: https://mgmwireless.com/wp-content/uploads/2019/11/MWR-AGM-Presentation-ASX-291119.pdf
Slide 2: Highlights
Highlights Good afternoon and thank you for Retail distribution UK attending today’s tripled launch Annual General Meeting We have had a very successful 12 months YTD* revenue up more than $4.3m 60% marketing campaign under way with high- profile advertising *Year to date is 1 July to 22 November 20
Slide 3: Wearables – new, fast-growing market
Wearables – new, fast-growing market ‘30% of all Smartwatch sales Global ‘spending will be children on wearables aged 5-13’ forecast to be $52B in 2020’ Gartner Research ‘Smartwatches are on pace to achieve the greatest revenue Smartwatch sales potential among forecast to grow all wearables from $17
Slide 4: SPACETALK distribution tripled
SPACETALK distribution tripled Australia New Zealand 588 stores 189 stores JB Hi-Fi SPARK Officeworks (NEW) Noel Leeming (NEW) The Good Guys (NEW) Harvey Norman (NEW) JB Hi-Fi (NEW) SPACETALK UK e-commerce store Sky Mobile 4
Slide 5: SPACETALK’s high value for Mobile Network Operators
SPACETALK’s high value for Mobile Network Operators Australia Total population aged 5-12 ▪ SPACETALK market-leading, very high quality and easy to use product with comprehensive customer 2,090,459 $1.6b Revenue service potential ▪ Driving new sales to large new market sector, children 5-12 years old
Slide 6: SPACETALK’s high value for Mobile Network Operators
SPACETALK’s high value for Mobile Network Operators Total population aged 5-12 UK ▪ Average cost of acquisition generally four 5,558,975 £14.5b Revenue times average revenue per user (ARPU) potential ▪ Contract lengths of 24 months or less allow relatively little time for a telco to generate a posit
Slide 7: Watershed UK growth opportunity
Watershed UK growth opportunity • Aug-19 agreement with Sky Mobile, part of Sky UK which 66 million 1 million has 23 million subscribers and is owned by Comcast People in UK Sky Mobile • Sky selling SPACETALK on a £10 per month, 36-month (3x Australia) customers plan • MGM receives full wholesale pa
Slide 8: Appendix
Increasing users of SPACETALK Appendix 8
Slide 9: Trading update
Trading update ▪ Revenue YTD* above $4.0 million exceeds Revenue FY20 YTD last year’s entire first half, with Christmas still to come ▪ UK post-launch sales ($425,000 YTD) more Revenue already than double the first six months if sales up more than post-launch in Australia ▪ Marketing in UK has ben l
Slide 10: SPACETALK unit sales
SPACETALK unit sales SPACETALK sales Strong Christmas ▪ Sales of 12,800 SPACETALK units YTD* sales anticipated already exceeds 11,000 for 1H FY19 ▪ Over 10,000 SPACETALK units sold in Australia and New Zealand YTD ▪ Sales through SPACETALK website lower, as marketing promotes purchase at retail stor
Slide 11: Growing recurring revenue
Growing recurring revenue All My Tribe App sales Strong Christmas ▪ AllMyTribe App - allows parents to control sales anticipated who kids can call and send message to ▪ Enables SMS messaging, safe zones and alerts, SOS alerts and GPS tracking ▪ Consistently growing, recurring software services reven
Slide 12: Christmas marketing campaigns under way
Christmas marketing campaigns under way $4.3m Australia and New Overall marketing Zealand program underway November 2019 – ▪ Officeworks TV March 2020 campaign already started ▪ Australian and New Zealand stores stocked with SPACETALK $1.9m including JB Hi-Fi, Officeworks and The To be funded by MGM
Slide 13: UK marketing campaign
UK marketing campaign UK – £1 million marketing campaign ▪ Begins 2 December, 2019 ▪ Fully funded by Sky as part of exclusivity agreement ▪ Includes high-impact TV commercials, electronic and direct mail, public relations, social media and co-branded product promotion 13
Slide 14: New product opportunities
New product opportunities Rapidly assessing new market opportunities that can leverage MGM’s technology: 4G watch release in Aged care People with Field development (possible FY20 disabilities Workers (expect FY20) launch) 14
Slide 15: School communications
School communications Australian school communications solutions since 2002 ▪ Stable, profitable, subscription business ▪ Continues to perform steadily ▪ New products to be introduced in second half, 1,400 expected to restart growth schools 1.7m parents 15
Slide 16: Summary
Summary Sales of SPACETALK ▪ Building a new category for children’s wearables expected to grow ▪ YTD revenues up 60% on same time in FY19; Australia and already a first half record 4x to 90,000 New Zealand distribution ▪ Sales of SPACETALK on dynamic growth in FY20 increased to trajectory Opportunit
Slide 17: Appendix
Appendix 17
Slide 18: Market - leading data security
Market - leading data security SPACETALK is the most secure in the market: ▪ All data is hosted in Australia and the UK ▪ Data Encrypted between AllMyTribe app, servers and SPACETALK ▪ Two-factor authentication used in pairing process ▪ Hardware to chip level tested as secure ▪ Apps, server software
Slide 19: SPACETALK Simply Safer Phones for Kids
SPACETALK Simply Safer Phones for Kids 19
Slide 20: Key features
Key features Water Resistant SMS Messaging Aish, Safe Contact List A High Security Weather Up to 24 hr Battery CNY @ Reminder Alarms Location on Demand ’ Step Counter MGM SPACETALK Simply Safer Phones for Kids
Slide 21: The SPACETALK difference
The SPACETALK difference 3G Mobile High Band 3G Mobile Low Band Reliable mobile coverage across Australia and UK Complies with Australian, NZ and UK telecommunications network requirements Tested and certified to Australian, NZ and UK standards and safe for kids 2018 audit by The University of Adela
Slide 22: Appendix - Leadership team
Appendix - Leadership team Mark Fortunatow Jarred Puro Paul Cooper Nathan De Rozario Megan Coleman Chief Executive Officer Director of Finance and General Manager Wearables SPACETALK Director of Marketing and E- BSc (MaSc) BEc Corporate Services Formerly Microsoft, Nokia Marketing & Sales Commerce S
Slide 23: Officeworks
Officeworks Christmas TVC All Networks From 14/11/19 Officeworks Big ideas. Lowest prices. SPAC=ZTALK
Slide 24: SKY Mobile
SKY Mobile (UK) TVC SKY TV From 06/12/19 sky mobile SPAC=TALK
Slide 25: SPACETALK
SPACETALK TVC (w/ retail callout) SPAC=ZTALK