FY2017 Full Year Results Joe Powell (CEO) and Shane Greenan (CFO) 31 August 2017
Catapult Group International Limited | ACN 164 301 197
FY2017 Full Year Results Joe Powell (CEO) and Shane Greenan (CFO) - - PowerPoint PPT Presentation
FY2017 Full Year Results Joe Powell (CEO) and Shane Greenan (CFO) 31 August 2017 Catapult Group International Limited | ACN 164 301 197 Executing in line with our strategic pillars Own t n the he per erformance e Lev ever erage e e
FY2017 Full Year Results Joe Powell (CEO) and Shane Greenan (CFO) 31 August 2017
Catapult Group International Limited | ACN 164 301 197
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Our ur Pur Purpose To build and improve the performance of athletes and sporting teams Wha hat do do w we do do? We make and sell technology platforms to improve sports performance
Own t n the he per erformance e techno hnology s stack f for elit elite s spor
in elite sport globally
elite customer relationships
leadership
Lev ever erage e e elite e into pro rosume mer
with a dedicated offer
brand
Commercialise e e elite e wea earable le & & vid ideo d data
generate incremental income from elite performance data Ho How w will l we s succeed?
1. Improve sports performance via technology dominate the industry globally 2. Aspirational, disruptive brand and company with highly motivated, engaged staff 3. Build a fast-growing, high margin, recurring revenue business
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10,00 000 t teams1
10x – 20x 20x1
1 In # of teams. Management estimate.
Delivering an expanded product offering across our two key markets Elite Wearables PLAYERTEK Elite Video Data Commercialisation Tactical AMS Full prosumer release FY16 16 FY17 17 FY18 18 PLAYERTEK by Catapult
Software upgrade, 3PL, global e-commerce platform
AMS
Acquired Developed In development
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Key d ey driver er Completed eted Elite te m market et s share
Q1 FY15
no r rev evenue ue g growth wh when a en acqu quir ired ed t to C CAGR o
20% through F gh FY17
Tech ch s stack ck e expansi sion
Q1 FY17
Pro-forma r rev even enue g e growt wth o
FY17 vs 3 3.6% in F FY16
Prosumer market e t entr try
Q1 FY17
livered 1 d 1.8x m more s e sales es t than Q1 – Q3 c combined ed2
Tech ch s stack ck e expansi sion
Q1 FY18
leader for analytics solutions for elite sports
Catap apult’s s strat ategic c acquis isit itio ion c checklis list
Ubiquitous (or nearly ubiquitous) offering ‘For’ performance Software component – sold or able to be sold as SaaS Relevant to Catapult’s existing elite customer base Bonus: potential prosumer application
1 Pro-forma, USD basis. Includes XOS revenue from 1 July 2017 2 Pro-forma basis. 344 units sold prior to the close of the PLAYERTEK acquisition in August 2016
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(vs 125 125 a year a ago) Hub offi
Melbourne, Aus Boston, USA Chicago, USA London, UK Leeds, UK Regional Leader ership T Team Matt Bairos – CEO Elite, Americas Barry McNeill – CEO Elite, ROW Benoit Simeray – CEO Prosumer Global s staf aff b breakdown
Op Operatio ions 33% Technol
21% Sales es & M Market eting 34% GA & A & Ex Exec 12%
131 e 131 employees Nort rth A Ameri rica ca 66 e employe
EMEA & & ROW OW 108 e 108 employees s AP APAC AC
16% 7% 13% 4% 34% 16% 36% 73% 17.4 60.8 FY16 FY17 A$m
Regio ional r rev even enue b ue brea eakdo down
Australia APAC (ex Australia) EMEA USA
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Strong e g elite w wearable les gr growth
Takin ing X g XOS t to double le d digit git gr growth
First y year of posit itiv ive u underly lyin ing E EBITDA Transformatio ional a l acquisit itio ions
Digi gita tal: Compelling combination, bringing together market leaders in wearable and video tech for elite teams
YERTEK: Proven, commercialised solution accelerating Catapult’s entry into the prosumer market
S: Parent-layer AMS product widening the scope of Catapult’s analytics offering and tech stack across elite and prosumer (acquisition closed Q1 FY18)
Valid idated d data commercia ialis lisatio ion m model a and delivered ed key l ey lear arnings
Continued R R&D &D delivering s significant p product e enhancement
Layin ing d down p prosumer f foundatio ions
YERTEK EK b by Cata tapult t paving the way for full prosumer release in FY18
deliv ivered 1 1.8x mor more s sale ales than an Q Q1 – Q3 c combined2
Organis isatio ional e l excelle llence
1 Pro-forma, USD basis. Includes XOS revenue from 1 July 2017 2 Pro-forma basis. 344 units sold prior to the close of the PLAYERTEK acquisition in August 2016
1 2 3 4 5 6 7 8
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54% 47% 28% 45% 53% 71%
4.8 11.3 17.4 60.8
FY14 FY15 FY16 FY17
A$m
Recurring vs one-off statutory revenue
One-off Recurring Other
Underlying EBITDA positive for the first time since subscription model commenced in 2012
1 Since FY14
136% 136% C CAGR1
2. 2.9
3 FY14 FY15 FY16 FY17 A$m
Historical underlying EBITDA
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FY17 17 $m $m FY16 $m YoY change Capital revenue 17. 17.2 8.1 112% 112% Subscription & services1 revenue 43. 43.0 9.2 368% 368% Other revenue 0. 0.6 0.1 860% 860% Tota tal r revenue 60. 60.8 17.4 249% 249% Statutory EBITDA (3.7) 7) (6.8) 44% 44% Underlying EB EBITDA 2. 2.9 (4.4) Pro-forma underlying EBITDA 3. 3.7 3.4 Statutory net loss after tax (13. 3.6) 6) (5.9) (131)%
year of elite wearables sales delivering 52% YoY growth and addition of high quality business in XOS
business
relating to acquisitions and share based payments
depreciation and amortisation profile
1 Subscription and services revenue includes elite wearables subscription revenue, XOS SaaS revenue, XOS support and maintenance revenue, and XOS content licensing revenue 2 Annual recurring revenue = Monthly recurring revenue x 12
2.7 7.3 13.5 46.1 30 Jun 14 30 Jun 15 30 Jun 16 30 Jun 17 A$m
Group annual recurring revenue2
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1.4 0.7 0.8 0.4
3.3 2.9
0.0 2.5 5.0 Statutory EBITDA Capital raising and acquisition costs Integration costs Litigation and contract settlement costs Severance costs Share based payment costs Underlying EBITDA
A$m
and integration costs following transformational year supporting acquisitions and growth
associated with employee share plan and tranche of
as approved at AGM
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5.7 4.4 3.8 5.2 14.2 13.7 10.6 14.4 8.4
10 20
Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17* Q2 FY17 Q3 FY17 Q4 FY17
A$m
Pro-forma Gr Group operatin ing c cash r receip ipts
Operating cash receipts XOS pro-forma Q1 cash receipts
result of sales and billing seasonality, concentrated in Q4
in FY18
receivable balance of $26.8m and total available funds
– Cash: $16.7m – Undrawn facility: $4.5m
* Pro-forma basis, including XOS cash receipts from 1 July 2017 converted to AUD based on an AUD:USD exchange rates of 0.75
Pre XOS acquisition Post XOS acquisition*
12 12
1.4 2.5 5.3 FY15 FY16 FY17
A$m
Research and development costs1
broadcast and 2nd screen apps
web-based software layer
extending value proposition and driving entry into new sports
iPhone apps) with multi-language support
1 Expensed research costs plus capitalised hardware IP and internally development software costs
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Integr grated t technolo logy s stack now posit itioned t to deliv iver insights across o
and o
h activ ivit itie ies
Elite wearables Elite V e Video eo AM AMS Othe her tech ch s stack ck expa pans nsion Expa pande nded v d value ue proposition
commercialisation
pillar in elite club environments
category pioneer
pillar in elite club environments
integrate player performance data analytics and video analytics
application
pitch and off-pitch data sources
management system Market leader in traini ning ng performance e data Game me-day performance and broadcast data and video Advanced club ub adm dmini nistration n and comms platform Expanded into
pitch h data aggregation & analytics
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We Wear arab ables Video eo AMS MS
,500 Current C t Cata tapult t t teams
000 t 0 team ams1
1 Based on bottom-up management analysis 2 Management estimate
Growing addr ddressable ble m market Unde nderpe pene netrated m market $450 $450m-$550m 550m2
Data monetisation (commenced) Analytics add-ons (scoping) Tactical analytics (scoping) Other technology stack expansion opportunities
Future rev even enue g e growth
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Integ egrated t tec echnology stack f for el elite e sport
Very sticky products
Extremely low churn, currently at c. 1.5%
High growth rate
Elite wearables revenue up 52%, XOS revenue up 10.4%1
Recurring revenue stream
3 year wearable subscription contracts
Longer tenure for league-wide deals
Genuine global leader
Extremely dominant in market share, global footprint &
IP portfolio
True network effect
Via data aggregation, benchmarking, player trading,
multiple product offering
1 2 3 4 5
1 Pro-forma, USD basis. Includes XOS revenue from 1 July 2017
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FY17 17 FY16 YoY % change Elite wearables revenue 26. 26.41 17.4 52% 52% Elite wearables ARR 19. 19.0 13.5 40% 40% Cumulative subscription base 13,780 780 8,749 58% 58% Total units sold 9, 9,71 712 8,354 16% 16% % subscription sales 62% 62% 57% # of client teams
,200
12% 12% 10%
in FY16
highlighting high return on customer acquisition costs
* Based on our current number of client teams and management estimates 1 Statutory wearables segment recorded revenue of $27.4m (includes prosumer revenue) 2 Lifetime Value (LTV) = Subscription contribution margin (ARPU less COGS and support, service and retention costs) modelled
based on a 10-year customer life. Customer Acquisition Cost (CAC) = Sales, marketing and lead referral fees per unit
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52% 45% 53% 58% 48% 55% 47% 42% 3.87 11.2 17.3 26.4 FY14 FY15 FY16 FY17
A$m
Elite wearable revenue
Subscription Capital
4,447 447 units ts 8,749 749 units ts
13, 13,78 780 uni units
FY15 FY16 FY17
Elite wearables subscription base
90% 90% C CAGR1
* Since FY14
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Key a ey achiev evem ements in F FY17
mobile and tablet apps)
– 16 stadiums and venues in 4 countries now
complete
Key p prio iorit itie ies for F FY18 Y18
enhancements
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Broad adcast o
erlay1 2nd
nd screen a
n apps ps2 Player benchmarking Shoulder programming Gaming
Successful y year i in FY17, Y17, dem emonstrat ating w wear arable d e data commercia ialis isatio ion p possib ibil ilit itie ies i in gl global f l first
Catapult ult Leagu gue
Dat ata r a rights $
Agreem ement
1 State of Origin; 2 AFL Telstra App
1 2 3 4 5
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commercialisation applications
MLB approving the use of wearable devices in-game in FY17
Selec ect Clea earSky i inst nstallations: s:
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accelerate to 10.4% in FY171 (vs 3.6% in FY16)
leveraging integrated North American sales team
FY17 17 FY16 YoY % change Statutory revenue 33. 33.3
/A Pro-forma revenue1 37. 37.2 33.72 10. 10.4% ARR 27. 27.2 26.12,3 4% 4% Client teams
430
Market penetration 4. 4.3% 3% 4.0% % recurring revenue 79% 79% 79%
2 Based on XOS management financials 3 Converted from USD to AUD based on average AUD:USD exchange rates of 0.728 over FY16
32.6 33.7 37.2 FY15 FY16 FY17
A$m
XOS pro-forma revenue2
10. 10.4% 3.6% 6%
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Key a ey achiev evem ements in F FY17
3.6% in FY16)
Catapult Group
sale to German Ice Hockey team Eisbären Berlin
video eo-based l league-wide d e deal al w with t the e NHL Key p prio iorit itie ies for F FY18 Y18
internationalisation
tactical analytics and tech stack product integration
BAS ASKETBALL LL
1 Pro-forma, USD basis. Includes XOS revenue from 1 July 2017
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31 t 31 teams Catapul pult’s f first video deo-ba based d league ue-wid ide d dea eal
composed of 31 teams – 24 in the United States and 7 in Canada
league and the 5th largest professional sporting league (by revenue) in the world In-game video will be streamed live to each NHL teams’ bench via multiple tablet displays supplied by Apple Inc. Minimum 2.5 year term All clips and associated data, notes and on-screen annotations will also automatically sync with the teams’ XOS ThunderCloud coaching system, for use in training and post-game analysis
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Wha hat i is a an n AMS?
modularized c cloud-based p platform
including:
– Player wellness and performance metrics – Injury and medical records – Wearable data – Links to video files
staff to:
– run analytics and output reports across data
sets covering their entire playing group
– Securely manage team calendars and player
communication from within the platform Analy lytic ics l layer t that h help lps sportin ing o g orga ganis isatio ions make ake better er a and m more i e informed ed d dec ecisions
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Elite wearables Elite video
portsMed d Elite & & B Baseline ne products f from SMG T MG Technolo logie ies P Pty Ltd f for $1. $1.9m 9m u upfront cash consid ideratio ion1
repository and analytics platform across a wide range
Catapult’s existing client base
introduce them to Catapult’s family of products
streams to feed advanced algorithms
cross-sell opportunity in key target markets
1 Additional $0.25m of cash & $0.25m of CAT scrip payable to SMG subject to performance hurdles relating to successful transfer and transition of the products to Catapult. Up to $2m of
additional deferred cash consideration over the next 2 years, payable on incremental revenue generated from Catapult AMS
On On-pitch d data Off ff-pitch d data Team management Wellness Strength & conditioning Medical
Data sources Data sources
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capital raise in May 17
undertake a side-by-side build vs buy analysis
acquisition both operationally and financially
FY18 and FY19
potential applications of this product throughout FY18
approach to key tactical considerations
the elite technology stack
Why hy i is tactical a analytics a s a compel pelling oppo pportunity?
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US E Examples es
We think the prosumer market could be 10x – 20x the size of the elite market (in # of teams) Prosumer business will be marketing driven We are t taking a a measured inves estment a approac ach t to lever erage e th the h halo effe effect fr from o
elite customer ers
Sources: Professional league data from Catapult IPO prospectus. College data from the NCAA 2015-16 Sports Sponsorship and Participation Rates Report. High school data from the 2014-15 High School Athletics Participation Survey. Consumer data from the 2013 Sports, Fitness and Leisure Activities Topline Participation Report, Soccer data from U.S Soccer Federation Media Guide 2016. Management estimates.
Socce ccer Ame merican an Fo Footba ball
.8k a athletes
73k a athlete tes
HIGH H SC SCHO HOOL
c.
.1m a athletes c.
.4m t total parti ticipants ts
m tot
l parti ticipants ts
.5k a athletes
.1m athlete tes
.3m athlete tes
25k a athlete tes
HIGH H SC SCHO HOOL
440k a athletes
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1,379 1 2,524 524 Q1 - Q3 FY17 Q4 FY17 PLAYERTEK units sold
Step change in PLAYERTEK sales following Apr ‘17 re-launch
Key a ey achiev evem ements in F FY17
– re-engineered software and major upgrade to
– PLAYERTEK platform has been an invaluable sandbox
to develop our prosumer strategy
1 Pro-forma basis. Includes 344 units sold prior to PLAYERTEK acquisition closing
PLAYER YERTEK EK b by C Catapult relaunch i in Q4 d delivered 1.8x mor more s sale ales t than an Q Q1 – Q3 c combined
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Measur ured p d prosum umer i inv nvestmen ent i in FY18
–
Verifying market opportunity
–
Developing prosumer-focused sales and marketing structures
–
Scaling back-end manufacturing and logistics processes
–
Prosumer-focused rebrand
ique a and c d compe pellin lling g value lue p proposit itio ion
–
Unaddressed market for wearable device focused on team-based sports
–
Access to scalable content allowing users to compare themselves to the stars
–
Linked to an authentic brand tied to elite sports performance
Aug 1 g 16 Apr 1 r 17 FY17 17 FY18 18
PLAYER ERTEK a EK acquired PLAYER ERTEK b EK by Catapult l launched Team m and p d platform m bui build-out Full p l prosumer product r rele lease
commercialised solution
entry into prosumer market
wearable and re- engineered software
manufacturing supply chain, 3PL established to support scale
and sales platform to unlock nascent brand equity and educate market
to support prosumer economics
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the continued expansion of our recurring revenue base through subscription sales
towards the longer term goal of developing a fully- integrated performance technology platform
analytics to deliver on unmet client needs
and fan engagement initiatives
in November
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Assets 30-Jun-17 17 $m 30-Jun-16 $m Cash and cash equivalents 16.7 3.6 Trade and other receivables 27.1 8.4 Inventory 3.3 2.1 PP&E 7.7 4.2 Goodwill 53.1 1.2 Other intangibles 41.2 4.2 Other assets 10.2 6.5 Total Assets 161.3 30.2 Liabilit litie ies Trade and other payables 8.5 5.7 Employee benefits 6.1 3.3 Deferred revenue 23.1 8.2 Other liabilities 8.8 4.3 Total liabilities 46.5 18.2 Total E Equity 114.8 11.9
– Healthy accounts receivable balance leading into
Q1 FY18
fleet growth
transformational XOS and PLAYERTEK acquisitions
subscription contracts
1 Calculated as current assets less current liabilities
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$m $m FY17 FY16 Sta tatutory R Result (3.7) (6.8) Capital raising and acquisition related costs 1.4 1.9 Integration costs 0.7
0.8 0.4 Severance costs 0.4 Share based payments costs 3.3 Underlying EB EBITDA 2.9 (4.4) Pro-forma adjustment for XOS 0.81,2 7.82 Pro ro-forma u underlying EB EBITDA 3.7 3.4
1 XOS acquisition closed in August 2016. Pro-forma result represents full FY17 EBITDA equivalent 2 Adjustment made on a constant currency basis (AUDUSD 0.75)
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