Etherstack Plc · ASX:ESK
Etherstack — Wilsons Advisory Rapid Insights Institutional Investor Conference (May 2022)
29 slides from Etherstack's conference presentation, May 26, 2022
Slide 1: Wilsons Advisory Rapid Insights Institutional Investor Conference
For personal use only Wilsons Advisory Rapid Insights Institutional Investor Conference Corporate Presentation Etherstack plc (ASX:ESK) 26 May 2022 Authorised for release by David Deacon, CEO and David Carter, CFO
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Etherstack plc (ARBN 156 640 532) (“Etherstack” or “the Company”). The information in this presentation is for For personal use only information purposes only and is not investment, financial product, legal or tax advice. This presentation contains s
Slide 3: Business Overview
For personal use only Business Overview
Slide 4: A leading licensor of innovative wireless technology for mission-critical communications
A leading licensor of innovative wireless technology for mission-critical communications For personal use only Etherstack enables push-to-talk (PTT) communications for essential services, within and across advanced digital land mobile radio (LMR), cellular and satellite networks Globally diversified
Slide 5: Our Three Core Markets
Our Three Core Markets For personal use only PTT Technology Mission Critical Push to Digital Land Mobile Satellite Push to Talk Talk (MCPTX) over cellular Radio (LMR) networks (PTT) networks networks (4G & 5G) Digital wireless terrestrial communication Mission Critical Push to Talk (MCPTX) over Deve
Slide 6: Key Developments Timeline
Key Developments Timeline For personal use only July – December January – June July – December Jan – May 2020 2021 2021 2022 11 February 28 February 20 October 22 July EOS Defence Systems Previously announced Licensing agreement with TPL First contract under Samsung subcontract (A$500,000) Samsung c
Slide 7: Digital land mobile radio (LMR) networks
For personal use only Digital land mobile radio (LMR) networks
Slide 8: Digital LMR Networks
Digital LMR Networks Digital Land Mobile Radio (LMR) Networks Etherstack has deep experience delivering software based digital land mobile radio networks across public For personal use only safety, utilities, resources and transportation industries Public safety A globally diversified base of high q
Slide 9: A significant US$3.0b market opportunity exists for growth in target contracts
Digital LMR Networks A significant US$3.0b market opportunity exists for growth in target contracts Developed a complete range of LMR technology for public safety & mission critical voice communication For personal use only systems Scores of target sized Etherstack target $3.0b Etherstack target con
Slide 10: Cellular Networks (4G & 5G)
For personal use only Cellular Networks (4G & 5G ) (Mission Critical Push to Talk over LTE)
Slide 11: Evolving public safety communications – hybrid networks
Cellular networks (4G & 5G) Evolving public safety communications – hybrid networks Etherstack’s software enables interoperability between traditional digital New wireless technologies (wifi, 4G & 5G) is For personal use only radio networks and new 4G & 5G networks for public safety transforming pub
Slide 12: A large and growing US$250 – m market opportunity
Cellular networks (4G & 5G) A large and growing US$250 – 750m market opportunity For personal use only Contracts available for Upfront licensing Long term recurring competition fee potential revenue stream 60 - 90 US$2 – 8m High Margins In OECD countries over ~5 years1 per contract comparable to ent
Slide 13: Etherstack leveraging LMR transition to 4G/5G Core Market
Cellular networks (4G & 5G) Etherstack leveraging LMR transition to 4G/5G Core Market Etherstack leveraging Public Safety agency transition to 4G/5G Core Market with direct contract awards with For personal use only Samsung and AT&T in the US to develop and deliver new product for this pipeline ▪ De
Slide 14: Satellite Networks
For personal use only Satellite Networks
Slide 15: Secure Push To Talk Communications over Satellite
Secure Push To Talk Communications over Satellite For personal use only Etherstack is ready to capitalise on emerging wireless communications opportunities made available by new low-cost satellite technology Falling satellite tariff costs the catalyst for change in the communications sector US$56.0b
Slide 16: 2021 Financial highlights
For personal use only 2021 Financial highlights
Slide 17: 2021 Financial highlights
2021 Financial highlights For personal use only 81% 142% Strong YOY Revenue growth YOY EBITDA growth to US$2.6m Balance sheet with to US$8.50m no external debt Recurring revenue growth $1.45m 12% $3.36m $1.37m increase over YOY Increase in recurring FY21 operating cash flow. An 2020 underlying NPAT
Slide 18: Solid pipeline of contract wins driving growth
Solid pipeline of contract wins driving growth For personal use only First Carrier contract - Strategic contracts Samsung for MCPTX • US$8.5m contract covering licences, integration & initial 3 years • Initial direct AT&T contract win of support • Substantial delivery on the December 2020 announced
Slide 19: Strong performance and growth driven by key contract wins
Strong performance and growth driven by key contract wins For personal use only Etherstack Revenue, Operating Cash Multiple growth drivers have & EBITDA (USD ‘000) delivered strong revenue growth in FY21 $8,504 81% growth over FY2020 to US$8.5m $5,264 guidance $4,792 $4,699 Strong project revenues $
Slide 20: Recurring revenue remains a core focus for Etherstack
Recurring revenue remains a core focus for Etherstack For personal use only Etherstack Recurring Revenue Recurring Support Revenues continue (USD ‘000) to grow • 12% increase on FY2020 to $1,776 2,331 2,277 • 227% increase since 2014 driven by: 1,838 743 500 • New networks 1,682 1,508 348 • Incremen
Slide 21: Income Statement
Income Statement For personal use only US$'000 2018 2019 2020 2021 Revenue increases driving EBITDA growth Revenue from Contract with Customers 5,264 4,792 4,699 8,504 ▪ 142% EBITDA growth vs FY20 Recurring support and Royalty revenue 1,682 1,838 2,331 2,277 Project and Product Revenues 3,582 2,954
Slide 22: Balance Sheet & Cash Flow Statement
Balance Sheet & Cash Flow Statement Balance Sheet Cash Flow Statement For personal use only US$’000 31-Dec-20 31-Dec-21 US$’000 2020 2021 Cash and cash equivalents 4,180 3,038 Net cash generated from operating activities 1,733 3,368 Trade and other receivables 1,410 2,439 Other current assets 446 53
Slide 23: Growth strategy
For personal use only Growth strategy
Slide 24: “Land and expand” case studies
“Land and expand” case studies For personal use only WA Resources Electric Utilities • Initial order May 2020 • 3 US utilities within the First Energy group • New order A$1m in May 2022 • ATCO – Alberta, Canada • Aggregate orders over A$2.3 million • Ergon/Energex – Qld, Australia Royal Canadian Mou
Slide 25: Sustained growth in LMR Core Network via key customer wins
Sustained growth in LMR Core Network via key customer wins Currently targeting network contracts valued between US$0.5 – 20m in upfront revenues, historically winning 1-2 For personal use only customer LMR networks per year 2021 January – June July –2022 December 2023 January – June July –2024 Decem
Slide 26: Samsung global teaming partnership drives additional growth
Samsung global teaming partnership drives additional growth For personal use only Etherstack is targeting more than 25 contract wins over the medium term MCPTX market is rapidly developing for the lead telco carriers in major OECD economies • Contract lead times are presently longer than anticipated
Slide 27: Strong outlook driven by focus on key strategic initiatives
Strong outlook driven by focus on key strategic initiatives For personal use only “Land and Expand” Commencement Expansion of of upgrades to existing Australian virtualised & International switching solutions public safety across installed networks base Cellular Satellite Networks LMR Networks Defen
Slide 28: Etherstack investment fundamentals
Etherstack investment fundamentals Continued growth in LMR networks. Cellular networks adding material value now and into the future. Satellite For personal use only networks likely to deliver subsequent and future value Leveraged to Government Established Global Targeted Growth: Samsung, and indust
Slide 29: For personal use only
For personal use only 64 Rose Street, London New York Chippendale NSW 2008 +44 207 734 0200 +1 917 661 4110 info.eu@etherstack.com info.na@etherstack.com Phone +61 2 8399 7500 David Deacon, CEO Sydney Yokohama david.deacon@etherstack.com +61 2 8399 7500 +81 45 342 9050 info.au@etherstack.com info.jp
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