© Future Fibre Technologies Limited
1HFY17FinancialResultsHalfyearended31December2016
Hs
© Future Fibre Technologies Limited 2
ForwardLookingStatements
ThispresentationisgivenonbehalfofFutureFibreTechnologiesLimited(FFT).
Informationinthispresentationisforgeneralinformationpurposesonly,andisnotanofferorinvitationforsubscription,purchase,orrecommendationofsecuritiesinFFT.CertainstatementsinthisdocumentregardingtheCompany’sfinancialposition,businessstrategyandobjectivesmaycontainforward-lookingstatements(ratherthanbeingbasedonhistoricalofcurrentfacts).
Any forward-lookingstatementsarebasedonthecurrentbeliefsoftheCompany’smanagementaswellasassumptionsmadeby,andinformationcurrentlyavailableto,theCompany’smanagement.Forward-lookingstatementsareinherentlyuncertainandmustbereadaccordingly.Therecanbenoassurancethattheunderlyingassumptionswillprovetobevalid.
AlldatapresentedinthisdocumentreflectsthecurrentviewsoftheCompanywithrespecttofutureevents.Forward-lookingstatementsaresubjecttorisks,uncertaintiesandassumptionsrelatingtotheoperations,resultsofoperations,growthstrategyandliquidityoftheCompany.Tothemaximumextentpermittedbylaw,theCompany,itsofficers,employeesandagentsdonotassumeanyobligationtoreleaseanyupdatesorrevisionstotheinformation(includinganyforwardlookingstatements)inthispresentationtoreflectanychangetoexpectationsorassumptions,anddisclaimallresponsibilityandliabilityforanylossarisingfromrelianceonthispresentationoritscontent.
© Future Fibre Technologies Limited 3
HighlightsReleaseofnextgenerationtechnology
• FFTannouncedthecommercialreleaseofAuraAi-2– anewproductplatformfeaturingextendeddetectionrange,enhancedintrusionlocationaccuracy,andcutresilientcapabilities.
NewdistributionagreementforSecurePointPlatform
• FFTsignedanagreementwithleadingSouthAmericanbaseddistributorMinipa- deliveringimmediateaccesstoanextensivedistributionnetworkandsectorsincludingUtilities,TransportandOil&Gas.
ContinueddemandforFFTintrusiondetectionsolutions
• Oil&GasperimetersecuritycontractinEasternEuropevaluedatA$560K.
• MilliondollarperimetersecuritycontractforMiddleEastAirport.
• SecureFenceordervaluedatapproximatelyA$460KtoprotectgovernmentfacilityinEurope.
• A$1.4MorderforFFTAuratoprotectMiddleEastPowerPlantperimeteranddatanetwork.
• PerimetersecuritycontractsacrosstheMiddleEastwithatotalvalueofA$962K.
• PerimetersecuritycontractforrailextensionprojectSEAsiaandordersforSecurePointcontrollerstoprotect16USsolarplants.TotalvalueofapproximatelyA$900K.
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StrategyandGrowth
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FFTStrategy|GrowthHorizons
TIME
ESTABLISH(FY17)
Strengthenandenternewregions(Growsales&supportinSEA,Turkey,Brazil/LA,EasternEuropeandAfrica)
InvestinDistributionandNetworkSecuritymarkets
(Adddistributionpartnerships,growsalesandsupportteams)
ConsolidatePerimetermarketcompetitiveadvantage
(Introduceartificialintelligenceandnextgenerationplatforms)
GROW(FY18)
Growrecurring%oftotalrevenues(Applicationandsoftwarelicensing)
Expandsalesfromnewapplications(Monitoringandincidentdetection)
IncreasecompetitiveadvantageinDistribution,NetworkSecurity
andPipelinemarkets(Extendtechnologycapabilitiesand
useofartificialintelligence)
LEAD(FY19+)
LeadinPerimeter,PipelineandNetwork(Leadacrossverticalsandgeographies
withnextgenerationproductrangeandcapabilities)
Increasesalesfocusonnewapplications(Addsalescapacityandreach- directandviapartnerships)
Broadenrangeofsolutions(Addandintegratecomplementary
technologiesandservices)
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GrowthHorizonsScorecard
FY17Goals Progress
Strengthen andenternewregions
(Growsales& supportinSEA,Turkey,Brazil/LA,EasternEuropeandAfrica)
✔
• NewGlobalSaleDirectorhasaddedsalesappointmentsinMiddleEast,EasternEurope,andtheAmerica’s.
• Continuetoinvestinglobalsalesandsupportcapabilityandcapacityin2HFY17.
Invest inDistributionandNetworkSecuritymarkets
(Adddistributionpartnerships,growsalesandsupportteams)
✔
• AgreementsignedwithleadingSouthAmericanbaseddistributorMinipa.
• ContinuetopursueagreementswithdistributionpartnersintheUSandotherkeyterritories.
• Addedasenior(MilitaryandCommercial)industryITspecialisttotheNetworkSecurityprogram
Consolidate Perimetermarketcompetitiveadvantage
(Introduceartificialintelligenceandnextgenerationplatforms)
✔
• OngoinginvestmentindevelopmentofinnovativeIP(Fence andBuried).
• NextgenerationproductplatformAuraAi-2released.
• Advancedburiedsolutionforborderandadjacentapplicationsoutperformingcompetitorsinrecentoverseastrials.
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FFT’sinvestmentinR&DyieldsnewAuraAiplatform
InJanuary2017,FFTannouncedthecommercialreleaseofAuraAi-2– anew2channelproductplatformfeaturingextendeddetectionrange,enhancedintrusionlocationaccuracy,andcutresilientcapabilities.AuraAi-2:
• Positionsthe companytodriverevenuegrowth
• SupportsFFT’sexpansionintonewmarkets
• Deliversimprovedproductmarginsandprovidesmanufacturingscalebenefits
• Employsdatadrivenartificialintelligencetoenhanceintrusiondetectioncapabilities
• Deliversstrongcompetitiveadvantageswithunrivalledhigh-sensitivitydetectionandanincreasedrangeofupto60kmpercontrollerforfenceapplications,andfurtherforburiedapplications
• Successfultrialscompletedatanumberofoverseasfacilities- resultinginfirstorders
• AuraAi-2willbeshowcasedatISCWestinLasVegasinApril2017.
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ContinuedR&DInvestment
• Circa$2.3MinvestmenttoenhanceFFTsolutionstogrowmarketposition.
• FocusonthedevelopmentofinnovativeintellectualpropertytofurtherstrengthensolutioncapabilitiesinbothPerimeterandBuriedapplications.
• Patentpendingforcovertburiedcablesolutionforheighteneddetectionofpedestrians/walkingintrudersinawiderangeofsoiltypes.
• CompetitivetestingofFFT’sadvancedburiedsolutionforborderapplicationshasresultedinFFTconsistentlyoutperformingcompetitors.
• ProgressingthecontinuedinterestinFFTsolutionsforadjacentmarketapplications–mining/traffic.
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FinancialPerformance
© Future Fibre Technologies Limited 10
FY16 Challenges
• Oil price
• Major project delays
• Behind on recruitment.
• Investment in products to remain competitive
Overview
• Revenue$6.4M.
• EBITDAloss$3.0M.
• Netlossaftertaxof$3.0M.
• 124.0Msharesonissue.
• Netassetsof$21.1M.
• Netcashpositionof$9.8Mat31December2016,withnoexternaldebtorborrowings.
• Strongsalesfunnelofopportunities.
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FinancialPerformance
AUD$M 1HFY16 2HFY16 1HFY172HFY17Forecast
TotalRevenue 9.1 6.4 6.4 11.8- 16.8
Gross Margin(%ofSalesRevenue) 56% 69% 58% 53%- 62%
OperatingExpenses 5.6 9.1 6.6 6.6– 8.0
EBITDA (0.7) (4.8) (3.0) 0.1– 0.3
EBIT (1.0) (5.2) (3.3) (0.6)– (0.4)
Profit/(loss)after tax (0.8) (5.0) (3.0) 0.0– 0.2
Cashreceipts fromcustomers 6.3 5.8 7.1 8.0– 12.0
GrossProfit 4.8 4.2 3.5 7.3– 8.9
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BalanceSheet
AUD$M 31Dec 2016 30Jun2016
Cashandcashequivalents 9.8 12.1
Otherassets 15.1 16.0
Totalassets 24.9 28.1
Borrowings - -
Otherliabilities 3.7 3.9
Totalliabilities 3.7 3.9
Total equity 20.1 24.2
• Noexternaldebtorborrowings.
• Cashbalanceof$9.8Mat31Dec2016($12.2Mat30June2015).
• Fullyfundedgrowthstrategyforfutureperiods.
• $3.3Mofinventorytomeetcurrentandfutureorders.
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GuidanceandOutlook• Forecastingrevenuesofbetween
$18Mto$23MforFY17.• IncreaseoverFY16fullyearrevenues
of$15.5M.• $3Mofforecastrevenuesrecently
receivedandwillbebookedonshipment.
• FurtherFY17reveneuesofapprox$11Mexpectedtobegeneratedfromcustomersinadvancedstagesofbusinessdevelopment/procurementcycle.
• Totalexpenses(incl.COGS)forFY17expectedtorangefrom$24Mto$26M.
• FFTexpectssmallimprovementinnetincomeforFY17comparedwithFY16.
• Asat31December2016,FFThad$9.8Mcashatbank,nodebt.
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