DTI Group Ltd 2015 Financial Year Presentation

Transcription

1 DTI Group Ltd 2015 Financial Year Presentation

2 Important notice and disclaimer This presentation has been prepared by DTI Group Ltd ACN ( DTI or the Company ). Summary information: This presentation contains summary information about DTI and its activities current as at August The information in this presentation is of a general nature and does not purport to be complete nor does it contain all of the information that an investor should consider when making an investment decision. It contains information in a summary form and should be read in conjunction with DTI s other periodic and continuous disclosure announcements to ASX available at: including DTI s full year audited results filed with ASX on 28 August Not an offer: This presentation is not a prospectus or product disclosure statement and does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. Not financial product advice: This presentation does not contain all of the information which an investor may require to make an informed decision about whether to subscribe for or purchase DTI shares. This presentation is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account the objectives, financial situation or needs of individual investors. Before making an investment decision, prospective investors should consult their stockbroker, solicitor, accountant or other professional advisor. This presentation does not constitute an offer to issue or sell securities or other financial products in any jurisdiction. The distribution of this presentation outside Australia may be restricted by law. Past and future performance: Past performance information is given for illustrative purposes only and is not, and should not be relied upon, as an indication of future performance. This presentation also contains certain forward-looking statements with respect to the financial condition, results of operations, projects, contracts and business of DTI and certain plans and objectives of the management of DTI. These forward-looking statements involve known and unknown risks, uncertainties and other factors which are subject to change without notice. Forward-looking statements are provided as a general guide only and there can be no assurance that actual outcomes will not differ materially from these statements. Neither DTI, nor any other person, gives any representation, warranty, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statement will actually occur. In particular, such forward-looking statements are subject to significant uncertainties and contingencies, many of which are outside the control of DTI. Further, none of DTI, its officers, agents or employees, except to the extent permitted by law, accept responsibility for any loss, claim, damages, costs or expenses arising out of or in connection with the information contained in this presentation. Investors should independently satisfy themselves as the accuracy of all information contained herein. Financial data: All dollar values are in Australian dollars ($ or A$) unless stated otherwise. 2

3 Review of Corporate Activities Listed on ASX in early December: Previously operated as a public unlisted company for 10.5 years million new shares. Issue price of $0.30. Underwritten by Baillieu Holst. DTI conducted an IPO to satisfy shareholder spread requirements and to: Provide additional working capital and funding to support future growth. Enhance the Company s flexibility for possible acquisitions. Benefit from increased profile from being a listed entity million shares (77.4%) out of escrow with release of FY2015 audited financial accounts. Audited FY15 annual report completed before end of August. 3

4 Full Year Review P&L Current Historical Key FY15 Observations $000s FY15 FY14 Revenue from sale of goods 12,146 17,686 Revenue from the rendering of services 2,560 2,112 Operating revenue 14,706 19,798 R&D grant Net foreign exchange gains Other income 0 1 Non-operating revenue 1, Total revenue 15,993 20,725 Cost of goods sold (6,999) (9,895) Employee benefits expense (4,821) (5,044) Other expenses (2,588) (2,709) EBITDA 1,529 3,077 Depreciation/amortisation (885) (967) EBIT 640 2,110 Net interest (expense) income Net profit (loss) before tax 691 2,193 Income tax (expense) benefit (577) (1,077) Net profit (loss) after tax 114 1,116 Operating revenue and performance is lower than FY14 due to the deferral of tender awards and slower than expected ramp up in the production of new buses in the US. Service Bureau revenue has increased by 21% from $2.11 million to $2.56 million. Gross Margin has had a slight increase from 50.0% to 52.4% principally due to increased volume purchases and cost reduction efforts. Expenditure on marketing has increased from $0.733 million to $1.033 million resulting in an increased prospects pipeline. Other expenses have been reduced. Depreciation and amortisation has declined and is forecast to decline in FY16. 4

5 Full Year Review Balance Sheet ($000s) Current Assets Current Historical Cash and cash equivalents 3,840 1,448 Other financial assets Trade and other receivables 6,310 5,747 Inventories 4,612 2,544 Other current assets Total current assets 15,293 10,004 Non-current Assets Plant and equipment Intangible assets 2,518 2,055 Other receivables Total non-current assets 3,622 3,159 Total assets 18,914 13,388 Current Liabilities Trade and other payables 3,720 2,882 Borrowings Provisions - - Total current liabilities 3,739 2,895 Non-current Liabilities Borrowings Provisions Other financial liabilities Total non-current liabilities Total liabilities 4,236 3,213 Net assets 14,678 10,175 Equity Contributed equity 13,724 9,274 Reserves (79) 1,139 Retained Profits 1,032 (238) Total equity 14,678 10,175 Key observations Cash increased due to IPO and exercise of Options Inventories increased due to increased WIP, adjustment to short lead time requirements in specific markets and bulk purchasing to decrease COGS. Intangible assets increased due to net capitalisation of development on key products. Trade and other payables increased as a result of increased inventories coupled with excellent payment terms. 5

6 Segment Review - Australia Sales of $7.88 million, stronger second half, but down from $9.46 million for FY14. Maintained strong market position with sales to wide range of customers. Signed multi-year maintenance contract with the Dyson Group, 2 year supply with Brisbane City Council, plus 8 pilot cash in transit van systems. Signed a supply contract with Yarra Trams. C2 Citadis Trams (5), all completed. Yarra has 487 trams, approximately 10% have third party CCTV systems which have been supplied with the tram. DTI is the first to retrofit a system on a tram which does not have CCTV. New Victorian Government has allocated budget for 132 B-Class tram life extension. 6

7 Segment Review - EMEA Sales of $2.93 million, up from $1.52 million in FY2014. UK Received order for systems as part of Eversholt Rail Class 321 refurbishment, Total rail cars now over 700 with Eversholt. Majority operate as part of London commuter rail. Received order for 100 systems for new buses built by Alexander Dennis Limited. France Opened office in July 2014 in Besancon. Received orders for 100 systems for buses in Besancon, 66 for SMT Artois-Gohelle. Received order for 36 systems to outfit all of the Marseille metro. Poland Received initial order for 5 systems from PESA for trams in Gdansk. Received order for 30 systems for Lodz and a further 16 systems from Modertrans for Gdansk. South Africa Received an order for 30 systems for Tshwane Buses in Pretoria, 106 for Cape Town buses. Opened an office in South Africa in February

8 Segment Review - Americas Sales of $3.89 million, down from $8.82 million in FY14. Sales delayed due to the delay in the manufacture of buses for a significant customer. DTI is well position in the US market with a number of the largest sites in the US. 2,100 systems in one site, over 2,000 in a second site, and 1,200 in a third site. In July 2014, DTI announced that its solution has been specified in a bus procurement tender issued by the San Francisco MTA. The procurement tender includes the manufacture of up to 454 buses over 5 years. Deliveries have now commenced. In January, DTI created a wholly owned subsidiary in the US. The subsidiary forms an important part of DTI s growth strategy. Subsidiary an effective structure for DTI to become closer to specific customers in the market. Direct sales commenced in June Provides slight net source of US funds (+ve Revenue and Profit) on declining AUD. 8

9 UNITED STATES Customer Data Recording Units Sold (DRU / MDR) Cameras Sold Various cities bus 14,359 14,438 Various cities rail 511 Kratos Defense (San Francisco) bus 1,439 12,951 Total 13,918 22,823 DTI Global Installations UNITED KINGDOM Customer National Express Birmingham buses Eversholt Rail Group rail Data Recording Units Sold (DRU / MDR) Cameras Sold 628 5, Total 994 5,832 SOUTH AFRICA Customer AUSTRALIA Customer Data Recording Units Sold (DRU / MDR) Data Recording Units Sold (DRU / MDR) Cameras Sold Cape Town bus 233 Cape Town law enforcement 40 Tshwane 30 Total 303 Cameras Sold San Francisco Birmingham London France Poland Holland Belgium Perth Buses 1,765 12,255 Adelaide Buses 1,007 6,035 Canberra Buses 667 2,668 UNITED ARAB EMIRATES Brisbane Buses 922 7,376 Customer Data Recording Units Sold (DRU / MDR) Cameras Sold Queensland Rail Tasmania Buses 243 1,215 VDL (Dubai Buses) 523 4,184 Total 523 4,184 Dubai Ansaldo (driverless trains and crossings) Perth Taxis TOTAL Victorian Buses Business Segment Data Recording Units Sold (DRU / MDR) Cameras Sold Perth Rail Bombardier Rail 83 1,168 Bus 22,241 70,802 Rail 1,492 4,006 Taxi High-value freight Law enforcement 40 Total 24,152 75,900 Pretoria Cape Town Perth NSW Buses 145 1,160 Total 5,758 34,562 Adelaide Melbourne Sydney Canberra Tasmania Brisbane New Zealand 9

10 Outlook Outlook for DTI in the mobile security market remains strong. Record number of prospects, over 100. Record prospect value, well over $200 million. Prospects vary in size from $24K to $43 million ($43 million will probably be split into 3 or 4). Prospects vary in duration from 2 months to 13 years. Mix of retrofit and new build. Excellent pathfinder projects. Yarra Trams, Cash in Transit Vans. PESA (rail manufacturer), Modertrans (rail refurbishment), Tarnów (Bus). SEPTA (first sales in June 2015). Marseille (metro), STM Artois-Gohelle (Bus). Numerous trials. (UK, Sweden, France, Australia, Poland, Egypt, Turkey). 10

11 Growth strategy Extend its offering and global reach in key target markets DTI s is extending its offering and global reach in key target markets, including its business development drive in the European Union where DTI a new office in France and Poland and won its first projects with business partners Cibest and DTI Polska. Extend the development of market opportunities in the Middle East and South Africa. Increased marketing of DTI s products and solutions to key markets and customers through indirect and direct marketing, such as major transit exhibitions including UITP in Milan, UTP in France, Trako in Poland, and APTA in the US. Target rail manufacturers including Alstom, Bombardier, Hitachi, Pesa, Rotem, and Siemens. ISO9001 Quality Assurance Certification which is particularly important in Europe and rail. Increase capacity to deliver new projects through increasing the Company s inventory base. Continue to invest in developing innovative technology Expand through additional business partners and acquisition DTI remains focused on its R&D program and continues to create new or improved products and solutions to improve its customer offering and market position. DTI Central Software Platform. Pantograph (4 Patents registered, 2 now submitted for International Patent Application). MDR6 Recording Platform (IP centric). The mass transit security industry remains fragmented with the industry comprising a number of small to mid-size product and service providers that typically focus on a specific region or mode of transit (e.g. bus, rail, law enforcement vehicles). DTI sees opportunities by investing in new joint ventures, business partners, or via the acquisition of, or investment in, complementary businesses both within Australia and internationally, particular in North America and Europe. 11

12 Expansive Core Software Capabilities Vehicle Tracking Scratch Graffiti Sensor G-Force Driver Behaviour Schedule Adherence CCTV Passenger Counting Bus Lane Enforcement Bus Passenger Counting Signage, PA Complimentary Static CCTV Data Recording Other Law Enforcement DTI Core Software Rail CCTV Train Data Recording Pantograph Vehicle Tracking CCTV Taxi Rail Crossings Driverless Trains Driver Alarm CCTV Vehicle Interface Vehicle Tracking 12

13 Key strengths Profitable software focused technology Company with world leading reference sites. Strong market position and capability. Exposure to attractive high-growth mobile security market. Innovative customer solutions supported by investment in R&D. Significant and growing recurring revenue stream. Scalable business model. Strong customer relationships. Strong business partners. Experienced Board and management team. Global terrorism driving increasing customer demand. 13

14 Guidance 2016 Financial Year DTI remains confident in its outlook as it seeks to drive growth via its strong pipeline of opportunities. The Company's ongoing investment in research and development aims to ensure continued innovation and market leadership of the products and services that DTI offers to the global mass transit industry and other related markets. Based on its current assessment of existing and anticipated new orders and projects DTI is aiming to achieve at least a 50% increase in FY16 EBITDA compared to FY15 EBITDA 14