NetComm Wireless Limited Presentation to Market Eye ...

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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?

3R&D centres

250employees

3Regions Since 1982

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NETCOMM’S YEARS OF EXPERIENCE

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THE NETCOMM STORY

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ATTRACTIVE MARKET FUNDAMENTALSThe Telecommunications Sector is BIG

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2016 2017 2018 2019 2020 2021 2022 2023

Bill

ion

(U

SD)

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 inaccessibleCustomer Objections Civil Works

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WHAT NETCOMM DELIVERSProducts 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 offering

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 DEEPTarget – 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

COMPETITORSBUILD AND THEY WILL COME

NETCOMMLISTEN. INNOVATE. SOLVE.

UNIQUE, NOVEL SOLUTIONGENERAL, STANDARD SOLUTION

PAST FUTURENOW

Product

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WHERE WILL NETCOMM BE IN 3 YEARS?

COMMUNICATERespected global voice

EXPAND GLOBALLY3 Continents

CUSTOMERS10 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 THINGGlobal 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!!

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2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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ion

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 2.9times

RECORD NET PROFIT AFTER TAX

$8.0m Turnaround from $1.8m loss

RECORD EBITDA

$20.5m 5.7times

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?