Nexteq Plc · LSE:NXQ
Nexteq — Quixant — H1 2018 Earnings Presentation
21 slides from Nexteq's earnings presentation, 2018
Slide 1: Quixant plc Results: 6 Months to 30 June 2018
QUIXANT PLC RESULTS 6 Months to 30 June 2018 Jon Jayal Gary Mullins Creston Preddy Chief Executive Officer Global Strategic Sales Director Chief Financial Officer
Slide 2: Global Providers of Specialist Software-Enabled Hardware
GLOBAL PROVIDERS OF SPECIALIST SOFTWARE-ENABLED HARDWARE Market leading outsourced provider of specialised computer platforms with integrated low-level software for manufacturers of pay to-play machines for the gaming market Leveraging established Densitron division provides Sustained double- reputa
Slide 3: Investment Case
INVESTMENT CASE The only specialist Making inroads outsourced provider with the largest of gaming platforms gaming manufacturers Major Very strong gaming new geographies customer retention opening up to gaming Considerable scope Opportunity to leverage for long term growth with engineering capabilit
Slide 4: Strategic Progress Made in the Period
STRATEGIC PROGRESS MADE IN THE PERIOD Progress Management Continuing Maintenance re-positioning structure penetration of margin Densitron strengthened of the largest despite challenging with high value with key hires global gaming electronic component product and and implementation manufacturers sup
Slide 5: Financial Review
FINANCIAL REVIEW
Slide 6: 2018 HY Financial Performance in Line with Expectations
2018 HY FINANCIAL PERFORMANCE IN LINE WITH EXPECTATIONS 2018 HY 2017 HY 2017 FY Revenue $50.3m $56.9m $109.2m Gaming Division $31.4m $37.8m $71.1m Gaming platforms $29.0m $30.2m $54.8m Gaming monitors $2.4m $7.6m $16.3m Densitron Division $18.9m $19.1m $38.1m Adjusted EBITDA1 $8.0m $10.2m $19.7m Gam
Slide 7: Robust Performance from Gaming and Densitron in Line with Expectations
Robust performance from Gaming and Densitron in line with expectations ROBUST PERFORMANCE FROM GAMING AND DENSITRON IN LINE WITH EXPECTATIONS Gaming 19.1 % SALES BY HALF Densitron 18.9 GAMING H1 H2 20.1 37.8 2013 39% 61% 31.4 2014 39% 61% 21.2 2015 37% 63% 13.6 2016 40% 60% 12.4 2017 53% 47% H1 2014
Slide 8: Revenue Bridge ($m)
REVENUE BRIDGE ($M) 56.9 -1.2 -5.3 -0.2 50.2 Revenue ($m) 1H 2017 Gaming platforms Gaming Monitors Densitron 1H 2018 8
Slide 9: Cash Bridge ($m)
CASH BRIDGE ($M) Balance operating activities Investing activities Financing activities 7,505 -3,677 166 -715 -1,388 Gross cash ($m) -1,669 -202 11,194 380 225 -2,315 9,504 Dec-17 Operations Receivables Payables Inventory Interest & Tax Acquisition of Acquisition of Dividend Repayment of Proceeds fr
Slide 10: Operational Review
w—__ Quixant OPERATIONAL REVIEW
Slide 11: Consolidating Our Market-Leading Position
CONSOLIDATING OUR MARKET-LEADING POSITION Strong gaming platform business performance, with significant growth in sales to the largest gaming manufacturers Gross margin increased to 36% despite electronics component shortages due to proactive strategic purchasing Developing gaming monitor business w
Slide 12: Continued Innovation to Deliver Enhanced Value
CONTINUED INNOVATION TO DELIVER ENHANCED VALUE Three patents Value of the Quixant Gaming Continued investment applied for over Ecosystem continues to attract in R&D to enhance the period even the largest customers software / hardware platform EXAMPLE CASE STUDY: TRACING TOOL - QxATS Tracing tool dev
Slide 13: Using the Quixant Ethos to Drive Growth in Densitron and Monitors
USING THE QUIXANT ETHOS TO DRIVE GROWTH IN DENSITRON AND MONITORS MONITORS DENSITRON Focus on development of differentiated Ongoing rationalisation of product portfolio products to enable margin expansion towards HMI solutions which incorporate our own IP Strategic decision not to oversell in lower
Slide 14: Strengthening the Business for Sustained Growth
STRENGTHENING THE BUSINESS FOR SUSTAINED GROWTH BOLSTERING OUR OVERCOMING ELECTRONICS INFRASTRUCTURE INDUSTRY HEADWINDS Management team strengthened Maintaining stock levels of vital ▪ Group Head of Corporate Operations components as the global shortage ▪ Group HR Manager continues ▪ Allowing us to
Slide 15: Looking Ahead
LOOKING AHEAD
Slide 16: Market Drivers
MARKET DRIVERS The Japanese opportunity – RELATIVE SIZE OF MAJOR MACAU significant, long term development $62,167m GAMING MARKETS ▪ Integrated Resorts Bill passed (2015) ▪ Strong domestic interest in gaming, JAPAN Pachinko is hugely popular in Japan 2nd largest ▪ Major casino development expected by
Slide 17: Summary and Outlook
SUMMARY AND OUTLOOK Robust first 6 months providing Growing revenue from major Gaming monitor portfolio confidence in achieving market gaming manufacturers as re-balanced / refocused on expectations of strong growth in well as continued growth higher margin products revenue and profit for the full y
Slide 18: Appendix
w—__ Quixant APPENDIX
Slide 19: Background
BACKGROUND Quixant was founded in 2005 by current senior requirements and regulations of the management and listed on AIM in May 2013. gaming and slot machine industry. Headquartered in the UK with manufacturing High quality scalable, cost effective in Taiwan and offices in North America, manufactur
Slide 20: Board of Directors
BOARD OF DIRECTORS Michael Peagram Jon Jayal Nick Jarmany Independent Chief Executive Officer Executive Vice Chairman Non-Executive Chairman Cresten Preddy Guy Millward Guy van Zwanenberg Current Chief Incoming Chief Independent Financial Officer Financial Officer Non-Executive Director Gary Mullins
Slide 21: Group Structure
GROUP STRUCTURE ▪ UK incorporated company ▪ Group management and strategy Quixant plc ▪ Financial management ▪ Group intellectual property Quixant plc Densitron Quixant UK Quixant USA Quixant Italia (Taiwan Branch) Technologies ▪ Hardware design ▪ Sales (outside Americas) ▪ Sales to the Americas ▪ S