Audinate Group Ltd. · ASX:AD8
Audinate — Goldman Sachs Emerging Tech Conference 2017
28 slides from Audinate's conference presentation, Nov 28, 2017
Slide 1: Goldman Sachs – Emerging Tech Conference
Audinate Goldman Sachs – Emerging Tech Conference 28 November 2017 1
Slide 2: Important notice and disclaimer
Important notice and disclaimer Disclaimer Past performance presentation. The non-IFRS information has not been subject to audit or review by Audinate's To the maximum extent permitted by law, none Past performance information, including past external auditor. The non-IFRS measures do of the Audinat
Slide 3: Dante distributes high quality digital audio signals over computer networks
Dante distributes high quality digital audio signals over computer networks Conference Casinos Stadiums Rooms Churches Parliament Hotels Transport Education Cruise Ships Concerts & Theatre Audio Is Everywhere So is Audinate 3
Slide 4: Leading the digital transformation of the AV industry
Leading the digital transformation of the AV industry Audinate Customers products (OEM Brands) OEM Products Chips Modules Cards Software 4
Slide 5: Benefits of Dante
Benefits of Dante Analogue signal distribution Rapid product development Commercially supported, turnkey solution for OEMs, with unsurpassed networking expertise Plug and play Auto discovery with one-click routing and stored network configuration Simplified connection management Simple, logical user
Slide 6: Audinate Today
Audinate Today Global business, based in Australia • Spinout from NICTA (Data61/CSIRO) • Established international customer base • Main office in Sydney, offices in the USA, UK, HK Global leader in audio networking technology • Used by the market leading AV brands (OEMs) • 383 OEM brands as customer
Slide 7: Increasing customer adoption: Pipeline for growth
Increasing customer adoption: Pipeline for growth Total customers and customers with Dante-enabled products available Customers with Dante-enabled products available Total customers 383 346 258 189 180 185 170 153 160 144 120 129 106 109 93 73 80 64 44 52 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Slide 8: Competitive landscape: Number of Products
Competitive landscape • There are several competing audio networking solution providers; however, Audinate is the clear global market leader • Dante has over four times the adoption of its closest competitor Progression of products supporting audio networking solutions(1) 1000 900 Dante 916 (now at
Slide 9: Strategy Overview
Product development initiatives 1. Dante software & applications 2. Adapter products 3. Video products Strategy Provide Software to better manage and Proliferate Dante by enabling connection Use Dante to transport video with audio maintain Dante-enabled networks of analogue end-points (Add the “V” i
Slide 10: Financials – FY17 & FY18
Financials – FY17 & FY18 10
Slide 11: 2017 Statutory Income Statement
2017 Statutory Income Statement A$('000) Statutory Statutory • Revenue growth of 30% in USD, Year Ended 30 June FY16 $∆ %∆ FY17 currency impacts reduced the growth Sales Revenue 11,903 3,160 27% 15,063 rate in AUD to 27% COGS (3,062) (740) 24% (3,802) Gross Profit 8,841 2,420 27% 11,261 Employee rel
Slide 12: Strong growth in revenue and units shipped
Strong growth in revenue and units shipped Revenue (USD$M) Dante units shipped Chips Modules and Cards $12 11.3 100% 200 Millions Thousands 180.7 90% 180 $1.6 $10 80% 160 8.7 70% 140 $8 $1.3 121.9 6.7 60% 120 6.0 $6 $1.2 50% 100 $1.2 $9.7 40% 80 73.1 $4 $7.4 30% 60 $5.5 43.1 $4.8 20% 40 $2 10% 20 $-
Slide 13: 2018 Forecast
2018 Forecast AUD $’M Employment costs (4.2) Marketing spend (0.8) System & processes (0.3) Development capex 2.5 FY18 Pro Forma EBITDA ($1.2m) • New initiatives include DDM, Video & Adaptors – more than doubles the current addressable market • Expenditure relates to FTEs primarily focused on new pr
Slide 14: 1Q18 – Appendix 4C
1Q18 – Appendix 4C Cash collections $4.5m • Cash collections for first quarter were $4.5m compared to $4.4m for the last quarter of 2017. The appreciation of the Australian dollar against the USD had a modest impact on cash receipts. Measured in USD cash, receipts increased more than 7.5% relative t
Slide 15: Summary
Summary Global market leader Significant market opportunity Dominant position as global AV market currently in the early stages leader in audio networking of transformation to digital networking Five times the market adoption of Audinate is perfectly positioned to its closest competitor capitalise o
Slide 16: Thank you
Thank you 16
Slide 17: Appendices: Appendix 1: Financial Information
Appendicies Appendix 1: Financial Information 17
Slide 18: 2017 Statutory Income Statement
2017 Statutory Income Statement A$('000) Statutory Statutory Reconciliation of statutory to pro forma income statements Year Ended 30 June FY16 $∆ %∆ FY17 A$('000) Forecast Actual Sales Revenue 11,903 3,160 27% 15,063 Year Ended 30 June FY16 FY17 FY17 COGS (3,062) (740) 24% (3,802) Statutory EBITDA
Slide 19: Operating Costs
Operating Costs Operating costs $ and % revenue Statutory operating costs 12 100% AUD $'000s FY14 FY15 FY16 FY17 Millions 90% Employee related costs 4,311 4,206 5,885 7,290 10 525 1,015 1,639 1,603 80% Marketing expense 8 70% Administration & other opex 875 1,188 1,382 1,584 60% Total Operating Cost
Slide 20: 2017 Statutory Balance Sheet
2017 Statutory Balance Sheet AUD $’000s 30 June 2017 • Balance sheet reflect completion of IPO on 30 June 2017 Assets Cash & cash equivalents 18,694 – Cash includes $3m paid to selling shareholders in Receivables 2,030 July Receivable from issue of shares 4,062 – Receivable from issue of shares ($4.
Slide 21: 2017 Cash-flow statement
2017 Cash-flow statement A$('000) Statutory Cash Flows Year Ended 30 June FY16 $∆ %∆ FY17 Cash flows from operating activities Receipts from customers (inclusive of GST) 11,764 3,316 28% 15,079 Payments to suppliers and employees (inclusive of GST) (11,472) (2,936) 26% (14,407) Interest received 38
Slide 22: Forecast – FY18
Forecast – FY18 A$('000) Forecast Year Ended 30 June FY18 • FY18 prospectus forecast was calculated using an Sales Revenue 18,552 AUD/USD exchange rate of 77c. The sensitivity to COGS (4,428) changes in exchange rates is summarised in the table below (per page 79 of the prospectus) Gross Profit 14,1
Slide 23: Appendix 2: Background Information
Appendices Appendix 2: Background Information 23
Slide 24: Audinate's current addressable market
Audinate’s current addressable market Audio networking addressable Audio networking addressable market (A$m)(1) market drivers(1) • Collaboration in corporate, government and institutional workplaces 454.6 • Strong pipeline of events and meetings 352.8 • Growth in the live music market • Growth in t
Slide 25: Sound Reinforcement industry overview
Sound Reinforcement industry overview Market size(1) Sound Reinforcement products(1) Product % of digital Audio networking for Pro-AV A$352.8m Microphones 36% A$352.8m (Audinate’s directly Sound Reinforcement market(1) addressable market) 5-year CAGR: 2.9% Mixers 15% 10.7 10.0 9.3 Sound Reinforcemen
Slide 26: Selected products
Selected products Chips, Modules and Cards Dante Ultimo (Chip) Dante Brooklyn II (Module) Cards Dante Broadway (Chip) Product launched in April 2017 Used in low channel Used in medium to high Peripheral soundcards and applications Used in medium channel channel applications network option cards (e.g
Slide 27: Selected products
Selected products Software Dante Controller Dante Virtual Dante Via Dante Domain Soundcard Manager Software to enable the Software-only sound card Software that turns audio Product launch expected in configuration and setup of enabling PC and Mac applications and computer second half FY18 Dante enab
Slide 28: Intellectual property
Intellectual property Audinate has a total of 38 granted or In the key markets of… pending patents across 8 families… 1 25 granted patents - USA - Germany 2 13 pending patent applications - UK IP will be held in a separate 3 legal entity within the Group - China 28
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