Shareholder Update 1
For personal use only
For personal use only
IMPORTANT NOTE This presentation for TZ Limited is designed to provide a high level overview of aspects of the operations of the TZ Group, including comments about TZ's expectations of the outlook for future years as the date of the presentation. This presentation may contain forward-looking statements relating to the TZ Group that are based on management's own current expectation, estimates and projections about matters relevant to the TZ Group's future financial performance. References in this presentation to assumptions, estimates and outcomes and forward-looking statements about assumptions, estimates and outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal and external factors that may have a material effect on future business performance and results. No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of the TZ Group or the likelihood that assumptions, estimates or outcome will be achieved. Any forward-looking statements made in this presentation are based on information presently available to management and TZ Limited assumes no obligation to update any forward-looking statements. While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only. TZ Limited, its officers and management exclude and disclaim any liability in respect of anything done in reliance on the presentation. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity. You should make your own enquiries and take your own advice in Australia (including financial and legal advice) before making an investment in the TZ Limited's shares or in making a decision to hold or sell your shares.
Disclaimer
2
For personal use only
Strong revenue growth from established supply contracts with large corporate clients
Nearly 300% revenue growth forecast in 2014 to > AUD$8M
Operating businesses expected to be profitable by end FY2014
Parcel Lockers
– –
Singapore Post – 100 Smart Locker Banks deployed by end of 2014 Large supply contracts under negotiation with US Corporates and Postal and Logistics Operators: Major US technology corporation expected to triple Locker Bank deployment over next 24 months Master locker supply agreement with large US conglomerate … first deployment completed, next scheduled in early 2014
Additional Locker supply agreements are under negotiation with well known Financial Services, IT and Software multi-nationals
–
TZ’s Australian Parcel Locker network (ADAM) is live with Property Owners, Carriers and Temando (e-merchant channel) Business is generating revenue on a pay-for-use basis – transaction fee per parcel delivery/pick-up
IXP – Data Centre Infrastructure Protection
– – –
Solution of choice with major Data Centres in US, Europe and Australia … IXP turnover to more than double this fiscal year Transition from manual “key-lock” to “electronic micro-security – growth driven by compliance and governance mandates Revenues from Hardware Sales, Software Licenses and annuity revenue for software and technical support
Company Status
3
Board of Directors:
Share Price Chart:
For personal use only
(as at 4/10/2013)
Mark Bouris
Kenneth Ting
Paul Casey
Executive Chairman
Executive Director and Company Secretary
Non- Executive Director
Management:
Capital Structure:
Top Shareholders:
(TZL 2013 Annual Report)
Number of Shares on Issue: Listed Options:
(TZL 2013 Annual Report)
200,7076,219 43,254,253
John Wilson
Consultant to the Board
William Leong
Chief Operating Officer, Telezygology, Inc.
Glenn Bevan
Head of Innovation and Design, TZI Australia Pty Limited
Benjamin Ford
Regional Manager, Technical Services, TZI Australia Pty Limited
National Nominees Limited
8.30%
Deutsche Bank AG London
7.17%
Deutsche Bank AG London (QVT Fund L/P A/C)
5.81%
UBS Nominees Pty Limited
4.18%
HSBC Custody Nominees (Australia) Limited
4.12%
Company Snapshot
4
For personal use only
ITEM
Amount ($’000s)
HIGHLIGHTS
Loss After Income Tax Expense
-$23,204
Sale of PDT completed - now trading on a ‘normalised basis’
Total Purchase Orders of AUD$3.4M were received before the end of the 2013 fiscal year, representing a 57% sales growth against the equivalent period last year.
Trading revenue of AUD $2.753M invoiced to 30 June 2013.
Backlog of ~ AUD$660,000 will be shipped in the July to September Quarter.
Loss included significant non-cash/non-recurring expenses
Revenue growth of nearly 300% expected in FY2014 (to >$8M)
Operating costs have reduced by over 20%
Operating business is expected to be profitable by Q4 2014
Add Back Non-Cash and Financing Expenses: Loss due to PDT divestment (non-recurring)
$6,680
Loss due to QVT Convertible Notes
$1,125
Loss due to Derivative Liabilities Impairment of Good Will (non-recurring)
$380 $4,010
Financing Costs
$3,675
Depreciation and Amortisation Expense
$1,040
Actual Cash Loss
-$6,294
FY 2013 Accounts
5
EMEA:
For personal use only
Plan Revenue:
> AUD$0.7M
AMERICAS: Plan Revenue:
> AUD$2.8M
APAC:
TZ REVENUE TARGET FY 2014 > AUD$8.0M
Plan Revenue:
> AUD$4.5M 50% of Plan Target is underpinned by committed supply
2014 Revenue Targets
6
For personal use only
Q1 INVOICED REVENUE (AUD)
OUTSTANDING POs (AUD) *
IXP – DATA CENTRES
$419,296
$80,553
PAD – PARCEL LOCKERS
$693,020
$1,696,439
$1,112,317
$1,776,992
OPERATING BUSINESS
* Orders received but not yet shipped and invoiced
Q1 2014 Preliminary Sales Results
7
For personal use only
IXP - DATA CENTRE BUSINESS
PAD – PARCEL LOCKER BUSINESS NEW SPECIFIED DATA CENTRE EUROPE
AUD$360,000 DATA CENTRE EXPANSION AUSTRALIA
AUD$670,000
CORPORATE LOCKER SUPPLY USA
AUD$690,000 POSTAL LOCKER SUPPLY SINGAPORE
45 locker banks ordered
100 locker banks 2014 Stated Objective
2014 Committed Supply
8
+
SOFTWARE
+
SERVICES
Asset Manager
`
For personal use only
HARDWARE
HARDWARE SALE: Turn-Key Locker Build Electronic Hardware
LICENSE AND ANNUITY REVENUE: (Client Software License (fee per Kiosk) Server Software Establishment Fee (once off payment) Server Software License (fee per Kiosk) Annual Maintenance Fee – Hardware and Software (annual fee per Kiosk)
PAD Revenue Model
FEE FOR SERVICE: Design Customisation Software Customisation Installation and Commissioning Services Technical Support Services
9
PAD Revenue (USD$)
For personal use only
$7,000 $6,000 $5,000
$4,000 $3,000 $2,000 $1,000 $0 FY 2010
FY 2011
FY 2012
FY 2013
FY 2014 Target
Significant revenue growth anticipated in all PAD sectors
Strong sales in corporate sector … major Multi-Nationals
Postal offering validated by Singapore Post
Secured multi-year supply relationships
Strong levels of engagement in Postal and Logistics market
PAD Business Growth
10
For personal use only
TZ awarded Singapore Post Smart Locker Tender in September 2012.
45 Locker Banks ordered to date:
–
Initial five (5) pilot Locker Banks deployed in March 2013. Open to the Singapore public in April 2013.
–
On back of strong public acceptance, additional ten (10) Locker Banks deployed in September 2013.
–
Order for another 30 Locker Banks issued for deployment from November 2013 to end of January 2014.
Singapore Post stated objective is to have a total 100 Locker Banks deployed across Singapore in 2014.
Each Locker Bank comprises 80 to 115 Locker Units depending on location.
Singapore Post Supply
11
For personal use only
Five (5) sites currently live … 19 lockers being manufactured will be deployed starting in October.
Relationships with Property Partners … GPT, AA Holdings (BP Vic), AusFuel, Secure Parking.
Relationship with Temando to drive demand through e-merchant channel
Early adopter e-merchants secured pending web integration … Pamper Hamper currently live
Relationships established with Toll, TNT and Fastway Couriers
Failed delivery service up and running on a per transaction fee basis with Toll and Fastway.
Waters B2B business offering up and running … per transaction fee. Currently prospecting with other B2B business customers
A.D.A.M. Parcel Locker Network
12
For personal use only
HARDWARE
HARDWARE SALE: TZ Locking Devices Interconnect Modules Gateways Sensors Readers / Scanners
+
SOFTWARE
LICENSE AND ANNUITY REVENUE: Software License (fee per 512 devices) Client Access License (fee per seat) Device Access License (fee per device connected) Annual Software Maintenance Fee
IXP Revenue Model
+
SERVICES
FEE FOR SERVICE: Installation Services System Commissioning Technical Services Software Customisation Integrator Accreditation
13
IXP Revenue (USD$)
For personal use only
$4,000 $3,000 $2,000 $1,000 $0 FY 2010
FY 2011
FY 2012
FY 2013
FY 2014 Target
Significant revenue growth anticipated
Established base of reference customers
Secured supply relationships
On-going supply as DC expands or new sites constructed
Strong pipeline of specification – US, Europe, APAC
IXP Business Growth
14
For personal use only
GENERAL
FY 2014 Company trading on a normalised basis post sale of PDT
Significant revenue growth to be delivered in FY 2014 through both IXP and PAD businesses from established supply contracts
Established supply contracts underpin >50% of the Company’s target revenue for FY 2014 … >AUD$8M
Operating businesses expected to be profitable by end FY2014
BUSINESS UNIT SPECIFIC
IXP experiencing strong sales and market penetration in existing and new geographies worldwide driven by regulatory and compliance mandates
IXP retained customer base represent the largest IT, Technology and Data Centre companies from around the world
PAD business is growing exponentially based on very large supply contracts in the Corporate and Postal Logistics sectors
Strong visibility in the Corporate and Postal sectors is driving awareness and strong demand for supply proposals
ADAM roll out progressing well – there will be 14 sites live by the end of the calendar year with an additional 10 sites live in early 2014
ADAM transactional parcel volume is starting to build as Carrier partners expand Locker services and Temando make available e-Merchant channel
Summary
15
Appendices 16
For personal use only
2013
For personal use only
2013 Accounts Revenue from continuing operations Other income Expenses Raw materials and consumables used Employee benefits expense Occupancy expense Depreciation and amortisation expense Communications expense Professional and corporate services Travel and accommodation expense Development costs Impairment of goodwill Share of losses in JV Loss of sale of JV Net loss on renegotiation of convertible notes Net loss on movement in fair value of derivative liabilities Other expenses Finance costs Loss before income tax expense from continuing operations Income tax expense Loss after income tax expense from continuing operations Loss after income tax expense from discontinued operations
Loss after income tax expense for the year
2012
$ '000s Less Non-Cash + Finance
2013 Adjusted
2,753
2,753
0
0
(1,359) (3,850) (219) (1,040) (131) (1,933) (762) (380) (4,010) 0 0 (1,125) (380) (407) (3,675) (16,518) (6) (16,524) (6,680)
*
(23,204)
2012 Accounts Revenue from continuing operations
2,778
Net gain on movement in fair value of derivative liabilities
3,605
10,230 6,680
(1,359) (3,850) (219) 0 (131) (1,933) (762) (380) 0 0 0 0 0 (407) 0 (6,288) (6) (6,294) 0
Expenses Raw materials and consumables used Employee benefits expense Occupancy expense Depreciation and amortisation expense Communications expense Professional and corporate services Travel and accommodation expense Development costs Impairment of goodwill Share of losses in JV Loss of sale of JV Net loss on renegotiation of convertible notes Net loss on movement in fair value of derivative liabilities Other expenses Finance costs Loss before income tax expense from continuing operations Income tax expense Loss after income tax expense from continuing operations Loss after income tax expense from discontinued operations
16,910
(6,294)
Loss after income tax expense for the year
1,040
includes $115K for PDT sale transaction 4,010 0 0 1,125 380 3,675 10,230
$ '000s
2013 Business Performance
*
(872) (4,774) (214) (1,068) (121) (2,336) (677) (785) 0 (161) (386) 0 0 (1,138) (4,815) (10,964) (1) (10,965) (1,396)
(12,361)
Less Non-Cash + Finance
includes $650K due to W/T refund (3,605)
2012 Adjusted 2,778 0
2,825 1,396
(872) (4,774) (214) 0 (121) (2,336) (677) (785) 0 0 0 0 0 (1,138) 0 (8,139) (1) (8,140) 0
4,221
(8,140)
1,068
161 386
4,815 2,825
17