For personal use only Half Yearly Results FY2020 RCW:ASX | - - PowerPoint PPT Presentation

Half Yearly Results – FY2020

RCW:ASX | February 2020

For personal use only

Agenda

H1 FY20 Achievements Business Update H1 FY20 Financial Information Summary and Outlook

For personal use only

3

A Reflection on H1 FY20 Achievements

88% of sales revenue from overseas, which included $875k generated from the European region Core business unit has line of sight for cashflow break-even in FY20 Restructured business into Core and New Products business units Expanded presence in US market with new client wins in industrial and financial sectors Successfully delivered first major Presence Control project in Belgium License and Recurring revenue growth of 91% and 40% (YoY) respectively

36% (YoY) sales revenue growth to $6.0m in H1 FY20 Strong H1 revenue growth

For personal use only

Agenda

H1 FY20 Achievements Business Update H1 FY20 Financial Information Summary and Outlook

For personal use only

5

LIMITATIONS

Siloed systems Siloed internal processes Siloed safety, security and compliance

IMPACT

Compromised safety, security and compliance Unexplored improvement potential

ENTERPRISE SYSTEMS

>$100 BILLION PA

CYBER SECURITY INDUSTRY

>$100 BILLION PA

Strategically Positioned

ESRM MARKET

• Physical security and

IT convergence

• RightCrowd is at the tip of

the industry’s technology transformation

• Currently, only a few

companies addressing this market

PHYSICAL SECURITY INDUSTRY

>$100 BILLION PA

RightCrowd is well positioned to capitalise on the emerging Enterprise Security Risk Management (ESRM) market

For personal use only

6

Identities and access rules baked into systems and applications

Logical security

CONVERGED PHYSICAL AND LOGICAL ACCESS CONTROL

Physical security

Centralised Access Control Lists (ACL) Role-based Access Control Systems (RBAC) Attribute-based Access Control Systems (ABAC) Mechanical locks and keys Electronic locks and badges Physical Access Control Systems (PACS)

very little identity software innovation

Opportunity for integrated Attribute- based Physical Access & Presence Control

The Market – Evolution and Convergence

For personal use only

7

RightCrowd Product Strategy – Physical Security

Employee Portal Contractor Portal Visitor Portal USERS LOCATIONS Business Systems Learning Management Systems IT / HR Systems Admin Portal Security Officer

RightCrowd Rules & Workflow Engine Physical Access Control System

Phone app Security wearable Existing badges

Integrated Attribute-based Access and Presence Control

For personal use only

8

RightCrowd Product Strategy – Logical and Physical Convergence

Auditors IT Administrators Compliance Managers Security Officers Line Managers USERS OUTCOMES

REMEDIATION IT / HR Systems Custom Applications Cloud Applications Mainframe Legacy Systems Off-the-Shelf Applications Physical Security Ticketing Systems Identity & Access Management

• Continuous User Access Compliance
• Lightweight, fast deployment and rapid ROI
• Visibility of user access within logical and physical systems
• User access reviews for every system, made easy
• Reduce cost, mitigate risk and boost productivity

Analytics Engine

Positioning in cyber security market to capitalise on growing “Insider Threat” within corporations

• Identifies user access issues across a

multitude of systems

• Can notify relevant personnel for

resolution via email

• Output can be used for remediation
• f user access issues

For personal use only

9

PARTNERING WITH THE WORLD’S LARGEST PHYSICAL ACCESS CONTROL SYSTEM COMPANIES, THAT CONTROL ~70% OF THE GLOBAL MARKET.

Channel opportunities

Majority of large

• rganisations run

access control from one

• f these vendors

RightCrowd’s partners have their hardware in several hundred thousand environments Integrating with and holding long- term partnerships with leading global security firms provide RightCrowd strong growth potential Successfully built trust resulting in growing number of

• pportunities that will provide a

long tail of revenue

RightCrowd is in the early growth phase of a very large, relatively untapped market as the physical security sector progresses along the digitisation path.

For personal use only

10

Remove the queue Making visitors part of evacuation management Efficient lobby

• perations

Big group, no problem See the big picture

Visitor Management

The enterprise standard for Visitor Management.

RightCrowd Product Offering – Core

Improve hosting experience

Workforce Management

Ensures continuous validation that everyone on site is right. On-boarding and access management Competencies and certifications Time on-site Fatigue management Random drug and alcohol testing Automated access revocation

For personal use only

11

Flexible configuration and deployment Cover every location Continuous visibility Frictionless evacuation Improve emergency response Eliminate muster stations Integrates with any access control or business system Continuous visibility Simplified compliance reporting Automated data collection Dynamic audit generation Monitor security issues in real-time

Evacuation Management

Real-time evacuation headcount for everyone on site.

Access Analytics

Presents the health of access compliance in a single view.

11

RightCrowd Product Offering – New Products

Digital badgeholders Visualise physical security Leverages existing PACS infrastructure Flexible deployment model Mobile App allows two- way zone notifications to users and security Tethering of visitors

Presence Control

Providing companies the next layer of physical security.

For personal use only

Agenda

H1 FY20 Achievements Business Update H1 FY20 Financial Information Summary and Outlook

For personal use only

13

PROFIT OR LOSS Group Results (AUD'000s) H1 FY20 H1 FY19

% Change YoY

Sales Revenue 5,967 4,382 +36% Other Income 274 289 -5% Total Income 6,242 4,672 +34% Total Expenses 10,806 7,757 +39% Profit before Income Tax (4,564) (3,085)

• 48%

Income Tax Expense (31) (32) Net Profit for the Year (4,595) (3,117)

• 47%

H1 FY20 Financial Performance

Growth in sales revenue driven by new license sales mainly in North America for workforce and visitor management solutions. Annual Recurring Revenue (ARR) more than $3.3m as at 31 Dec 19. New Products division (Presence Control, Evacuation Management, and Access Analytics products) generating early revenue from first deployments, adding $0.2m of revenue for the period. Expenses predominantly driven by employee related costs ($7.9m) – the increase on H1 FY19 driven by Ticto and Offsite Vision acquired entities (adding $2.0m additional cost in H1 FY20). Adoption of AASB16 in this reporting period using modified retrospective approach resulted in minimal impact on net profit given limited number of Company operating office leases.

For personal use only

14

BALANCE SHEET Group Results (AUD'000s) 31-Dec-19 30-Jun-19

% Change YoY

Current Assets 6,811 9,941

• 31%

Non-Current Assets 17,492 16,098 +9% Total Assets 24,303 26,039

• 7%

Current Liabilities 6,099 4,377 +39% Non-Current Liabilities 1,141 224 +410% Net Assets 17,063 21,439

• 20%

Issued Capital 39,691 39,651 +0% Reserves 729 783

• 7%

Retained Earnings (23,357) (18,995)

• 23%

Total Equity 17,063 21,439

• 20%

H1 FY20 Financial Performance

Cash balance closes at $3.82m, down from $4.97m at end June. Trade and Other Receivables at $2.45m, down from $4.37m at end June due to receipt of government R&D rebate during H1 FY20. Increase in Non-Current Assets, Current, and Non-Current Liabilities driven by adoption of AASB 16 – Leases. Operating leases now recorded on balance sheet as Right-of-Use Assets and Lease Liabilities. Changes in Equity driven by:

• Share issuance relating to Offsite Vision acquisition

based on achieving Year-1 performance targets

• Transfer of Share Option Reserve to Retained Earnings

following Share issuance.

• Retained earnings movement through net loss

for the half-year.

For personal use only

Agenda

H1 FY20 Achievements Business Update H1 FY20 Financial Information Summary and Outlook

For personal use only

16

Summary and Outlook

Completion of current large deployment projects and preparation for substantial new projects in sales pipeline Extending existing global PACS channel relationships through white labelling of workforce management solutions Renewal of RightCrowd IQ customer contracts and acceleration of pipeline with dedicated sales coverage and emerging channel partners Increasing proportion of revenue relating to recurring software revenue and license fees Presence Control sales momentum to increase with successful reference site, distribution partners and additional European sales headcount Core business unit projected to achieve cashflow break-even in FY20

RCW maintains full year FY20 outlook of $13m+

• f sales revenue (40%+ growth YoY)

36% (YoY) sales revenue growth to $6.0m in H1 FY20.

License and Recurring revenue growth of 91% and 40% (YoY) respectively

For personal use only

Contact

Peter Hill CEO peter.hill@rightcrowd.com James Stewart CFO/COO james.stewart@rightcrowd.com

For personal use only

The information in this Company presentation has been prepared by RightCrowd Ltd (“RightCrowd” or the “Company”) for the exclusive use of the party to whom the Company delivers this presentation (“Recipients”). The purpose of this presentation is to provide the Recipient with general information concerning the Company. This Company presentation is confidential. Its disclosure, use, reproduction, storage and transmission is not permitted without the written consent of the Company. The Company and the Company’s advisors (including their respective directors, partners, consultants and the employees, related bodies corporate, the directors, shareholders, managers, partners, employees or agents of them) (Information Providers) are not under any obligation to correct, update or revise this Company presentation or any written or oral communications transmitted to the Recipient. This presentation is provided to the Recipient for information only. It is not to be considered as a recommendation by the information providers that a Recipient invest in the Company or acquire an asset of the Company, or that the investment is a suitable investment for the Recipient. This Company presentation does not constitute investment, accounting, financial, legal or tax advice. The Information Providers do not make any representation or warranty (express or implied) as to the accuracy, reliability, reasonableness or completeness of the contents of this presentation. To the maximum extent permitted by law, the Information Providers expressly disclaim all liability, and the Recipient releases them from any claim, (whether arising from negligence or otherwise) for, or based on, or relating to information (including any estimates) contained in this presentation,

• r for any errors in, or omissions from, this presentation or for any written or oral communications transmitted to the Recipient, except for any liability which cannot

be excluded as a matter of law. This Company presentation may include certain statements, estimates or projections with respect to the anticipated future performance of the Company, the projects, or both. Those statements, estimates or projections are based on assumptions about future events and management actions that may not necessarily take place and are subject to significant uncertainties, many of which are outside the control of the Company. Those assumptions may, or may not, prove correct. No representation is made as to the accuracy of those statements, estimates or projections. Each Recipient should make its own enquiries and investigations regarding the assumptions, uncertainties and contingencies which may affect the future operations of the Company, and the impact that different future

• utcomes may have on the Company.

Disclaimer

For personal use only