Presentation to Market Eye 7 November 2018 Technology Conference 1 - - PowerPoint PPT Presentation

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NetComm Wireless Limited

Presentation to Market Eye Technology Conference

Ken Sheridan – CEO and Managing Director 7 November 2018

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WHO IS NETCOMM?

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R&D centres

250

employees

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Regions Since 1982

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NETCOMM’S YEARS OF EXPERIENCE

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THE NETCOMM STORY

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ATTRACTIVE MARKET FUNDAMENTALS

The Telecommunications Sector is BIG

100 200 300 400 500 600 2016 2017 2018 2019 2020 2021 2022 2023

Billion (USD)

Telecom Equipment Market (Billion USD)

CAGR 10%

BIG STABLE GROWING

$562B

Source: Market Research Future

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WHY NETCOMM?

Our Passion

The world will never stop being connected. As technology evolves, the opportunity to connect everyone’s life only becomes greater.

Everyone’s Connected Life Matters

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FTTH IS THE PREFERRED OPTION BUT TIME CONSUMING AND EXPENSIVE TO ROLL OUT

Long Distances Location inaccessible Customer Objections Civil Works

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WHAT NETCOMM DELIVERS

Products that connect everyone’s life

Connections in homes that really work

• Improve in-house connectivity
• Better Wi-Fi experience all

throughout the house

• Connect even the outer corners of

your home to high speed Broadband

FIXED BROADBAND

Connect even more FTTC subscribers

• Millions of homes are passed with

fibre, but not all of them can be connected to the fibre network

• Connect homes to the FTTH

network, using a DPU with G.fast to allow fiber like speeds

FTTdp

Connect even more remote users

• Go beyond the easy connections
• Broadband is a commodity and 100%

coverage required by governments

• Offer an alternative to traditional

Fixed Broadband service with reduced cost and time

FIXED WIRELESS

Connect even more machines

• Connect machines and increase

revenue by expanding your market potential

• Improve your business services
• ffering

INDUSTRIAL IoT

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Deep customer engagement

• Solving customer problems, exactly
• Nimble approach
• Allows more connections
• Enabling narrow and deep strategy

CUSTOMER STRATEGY – NARROW AND DEEP

Target – Double digit number of customers

New Products Product 1 Product 2 Product 3

Transactional

• Legacy industry methodology
• Standard product
• Doesn’t solve all problems
• Not everyone ends up being connected

COMPETITORS BUILD AND THEY WILL COME NETCOMM

• LISTEN. INNOVATE. SOLVE.

UNIQUE, NOVEL SOLUTION GENERAL, STANDARD SOLUTION PAST FUTURE NOW

Product

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WHERE WILL NETCOMM BE IN 3 YEARS?

COMMUNICATE

Respected global voice

EXPAND GLOBALLY

3 Continents

CUSTOMERS

10 International Customers

• Timely and informative

communication to all stakeholders

• Worldwide marketing presence
• Acknowledged for global thought-

leadership

• Target: USA/Canada, UK/Europe

and Australia/New Zealand

• Sales and engineering presence

active for each customer account

• Broaden customer base
• Target: At least 10 x Tier 1

customers by 2022

• “Narrow and deep”, with multiple

products sold to a customer

NEXT BIG THING

Global leader in 5G FW

• Early to market with “commercial”

Fixed Wireless 5G solutions

• Recognized as top 5G FWA

CPE vendor

Status to Date:

• New Director of Marketing and

Communications appointed

• Strategic focus being placed on

international marketing and communication

Status to Date:

• Active sales in Australia/NZ and

USA/Canada and Sales team established in UK

• R&D centers in Australia and USA

Status to Date:

• 3 key Tier 1 customers signed up
• 2 existing customers committed

to second generation or new products

• 4 field/lab trials with new customers

Status to Date:

• Ongoing discussions with multiple

Tier 1 operators globally

• Accelerated investment in R&D
• Leveraging > 10 years’ of experience

in fixed wireless

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INVESTING IN 5G – THE TIME IS NOW!!

2 4 6 8 10 12 14 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Billion USD

5G-Based FWA CPE Unit Shipment Revenue by Region: 2019-2030 (US$ Billion)

Asia Pacific Eastern Europe Latin & Central America Middle East & Africa North America Western Europe

>$12B

Source: SNS Research

Fixed Wireless – The First use case for 5G

• Viable alternative for traditional Fixed Broadband technologies
• Total Addressable market of more than US$12 billion
• Key markets: North America and Western Europe

5G at the core of all future applications

• Security concerns with Chinese vendors globally
• Chinese vendors already banned from Australia and USA
• NetComm ideally placed to fill the gap as western vendor

Source: ABC News August 23, 2018

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RECORD FULL-YEAR RESULTS

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LONG TERM STRATEGY DELIVERING RECORD FULL-YEAR RESULTS

GROUP REVENUE

86%

STRONG BALANCE SHEET

$27.3m

Cash & no debt

OPERATING CASH FLOW

$23.7m

2.9

times

RECORD NET PROFIT AFTER TAX

$8.0m

Turnaround from $1.8m loss

RECORD EBITDA

$20.5m

5.7

times

RECORD REVENUE

$181.7m

69%

GROSS MARGIN

37.2%

2.8%

from 34.4% From our high growth business

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IN SUMMARY…

COMMUNICATE EXPAND GLOBALLY CUSTOMERS NEXT BIG THING

Respected global voice 3 Continents 10 International Customers Global leader in 5G FW

IN THE NEXT 3 YEARS

Strong FY18 delivers on promised step change in operations and results

• Strong growth across Revenue, Margin,

EBITDA and Net Profit

• Operating cashflow underpins ungeared

balance sheet with $27.3m cash

• Multiple opportunities with global

Tier 1 telcos in pipeline at various stages of progress

• Investment into 5G to underpin

accelerated growth in the medium term

• Consolidates rebased position, and

prepares the company for its next step change in FY20

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QUESTIONS?

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DISCLAIMER Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect NetComm Wireless Limited current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside the control of NetComm Wireless Limited. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Because actual results could differ materially from NetComm Wireless Limited current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained herein with caution.

• Listen. Innovate. Solve.