25 Nov

AIM Presentation Morgans Technology Conference

Registered Office Corporate Office Level 6, 277 William Street, Melbourne VIC 3000 Level 1, 103 Miller Street, North Sydney NSW 2060 ASX ANNOUNCEMENT 25 November 2021 AIM Presentation Morgans Technology Conference 25 November 2021 Melbourne, Australia, 25 November 2021: Ai-Media Technologies Limited (“ Ai-Media” or “ Company” ) (ASX: AIM) a global provider of technology-driven live and recorded captioning, transcription and translation services, is pleased to provide the presentation to be delivered virtually at the Morgans Technology Conference today. Authorised for release by the Company Secretary. ENDS Further Information AIM NWR Communications Sue Sanossian Company Secretary +61 2 8870 7711 investorrelations@ai - media.tv Simon Hinsley Director +61 401 809 653 simon@nwrcommunications.com.au About Ai-Media Founded in Australia in 2003, technology company Ai-Media has become a global leader in the provision of high-quality live and recorded captioning, transcription and translation services. Its technology platform combines artificial intelligence and human expertise to deliver speech-to-text accuracy in three price points: automated (Lexi), semi-automated (Smart Lexi), and premium (Ai- Live). The company is the biggest captioning provider in the Australian market, with clients including major free-to-air and pay television networks, and has a growing international footprint, with offices in Australia, the US, UK and Canada. Globally, Ai-Media technology delivers 7 million minutes of live and recorded media content, and online events and web streams every month. Ai-Media (ASX: AIM) commenced trading on the ASX on 15 September 2020. For more information on Ai-Media please visit https://www.ai-media.tv/ IMPORTANT NOTICES This announcement is not financial product or investment advice, a recommendation to acquire securities or accounting, legal or tax advice. It does not constitute an invitation or offer to apply for securities. It has been prepared without taking into account the objectives, financial or tax situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and needs and seek legal and taxation advice appropriate for their jurisdiction. Ai-Media is not licensed to provide financial product advice in respect of an investment in securities. 25 November 2021 Ai-Media Technologies Limited Morgans Technology Conference 2 This presentation ( Presentation ) contains summary information about Ai-Media Technologies Limited and its subsidiaries (the Company or Ai-Media ) which is current as at 25 November 2021. By attending an investor presentation or briefing, or accepting, accessing or reviewing this Presentation, you acknowledge and agree to the terms set out below. Summary information: This Presentation has been prepared for information purposes only and is a summary only. It should be read in conjunction with Ai-Media’s most recent financial report and other periodic and continuous disclosure information lodged with the Australian Securities Exchange ( ASX ), which is available at www .asx.com.au . Reliance should not be placed on information or opinions contained in this Presentation and, subject only to any legal obligation to do so, the Company does not have any obligation to correct or update the content of this Presentation. Not financial product advice: This Presentation does not, and does not purport to, contain all information necessary to make an investment decision, is not intended as investment or financial advice (nor tax, accounting or legal advice) and must not be relied upon as such. This Presentation does not take into account the investment objectives, financial situation or needs of any particular investor. Investors are encouraged to seek independent professional advice when deciding if an investment in the Company is appropriate. The Company is not licensed to provide financial product advice in respect of its own securities. This Presentation is not a prospectus, product disclosure statement or other offering document under Australian law (or any other law). It is not, and does not constitute, an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. Investment risk and past performance: An investment in Ai-Media shares is subject to known and unknown risks, some of which are beyond the control of the Company and its directors. The Company does not guarantee any particular rate of return or the performance of Ai-Media. Past performance is not, and should not be relied on as being, indicative of future performance. Future performance and forward-looking statements: This Presentation includes forward looking statements, which can generally be identified by the use of words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “outlook”, “forecast” and “guidance”, or other similar words. They may include, without limitation, statements regarding plans, strategies and objectives and anticipated business developments. Forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause Ai-Media’s actual results, performance and achievements to differ materially from statements in this Presentation. Forward- looking statements are based on the Company’s good faith assumptions as to the financial, market, regulatory and other relevant environments that will exist and affect Ai-Media’s business and operations in the future. The Company does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and may events are beyond the reasonable control of the Company. Readers are cautioned not to place undue reliance on forward-looking statements, particularly in the current economic climate and given the significant volatility, uncertainty and disruption caused by the COVID-19 pandemic. Forward-looking statements in this Presentation are only made as at the date of this Presentation and the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in assumptions on which any such statement is based. Industry data and third party information: Industry data and third party information used in this Presentation may have been obtained from research, surveys, reports or studies conducted by third parties, including industry or general publications. Neither Ai-Media nor its representatives have independently verified any such market or industry data. Financial information : This Presentation contains historical financial information based on the Company’s results for the 12 month period ending 30 June 2021 and prior comparative periods. All financial information disclosed in this Presentation is presented in Australian dollars unless otherwise noted. Any discrepancies between totals and sums of components in tables and figures contained in this Presentation are due to rounding. Disclaimer: To the maximum extent permitted by law, Ai-Media and its officers, directors, employees, agents and advisers: (1) disclaim all responsibility and liability (including, without limitation, any liability arising from fault, negligence or negligent misstatement) for any loss arising from this Presentation or reliance on anything contained in or omitted from it or otherwise arising in connection with this Presentation; (2) disclaim any obligation or undertaking to release any update or revision to the information in this Presentation to reflect any change in expectations or assumptions; and (3) do not make any representation or warranty, express or implied, as to the accuracy, reliability, completeness of the information in this Presentation or that this Presentation contains all material information about Ai- Media or that a prospectus investor or purchaser may require in evaluating a possible investment in Ai- Media or acquisition of shares, or the likelihood of fulfilment of any forward-looking statement. Important notice and disclaimer 3 01 02 03 From the Chair Chief Sales Officer Q&A 4 Ai-Media is a one-stop shop for live and recorded captioning, transcription and translation solutions – globally Presenters Making the world's content Deanne Weir Chair accessible for everyone John Bird Chief Financial Officer James Ward Chief Sales Officer 5 From the Chair 6 1. Source: Frost & Sullivan Live human curation = Ai-Live Premium + bundles, including recorded Premium Semi-automated = Smart Lexi Smart Lexi Automated = Lexi Lexi Tiers From any language, to any language Live Recorded Streamed in any format to any device Platform and Services A one -stop shop in a growing US$20B market 1 $50m R&D investment in Ai-Media’s technology platform 1 2,200+ invested in three acquisitions since Sept 2020 $48m global customers, diversified revenue by customer and region 3,000+ skilled contractors As highlighted since May, the EEG acquisition is transformational, delivering AIM an industry leading platform, network and ecosystem to directly address global growth opportunities in attractive market segments and territories 7x Growth in minutes captioned YoY 7 Growing SaaS product suite Further gross margin improvements as SaaS revenue increases Launched SubSilo™ +75% 22.7 million minutes delivered in Q1 FY22 across all products Growth in Lexi / Smart Lexi SaaS minutes on PCP Q1 FY22 highlights + 35% $14.9m Revenue in Q1 FY22 Revenue Growth on PCP (Q1 FY21) >50% Up from 39% on PCP Gross Margin $15.5m Strong cash position to execute on growth strategy Cash balance at 30 September 2021 Buy-back Program to commence from 15 November 2021 Program of up to 2 million shares 8 Existing EEG market New sales opportunities Market Leader In US Ta k ing Ai -Media’s EEG product suite global • EEG is a dominant player in US live captioning market working with blue chip clients in broadcast, enterprise and government space • Significant opportunity to grow SaaS products in new markets • State-of-the-art technology and extensive Ai-Media network of customers will drive growth in coming years 9 100% 72% 9% 16% Services SaaS Hardware Other 9 Q1 FY22 Q1 FY21 Ai -Media is aiming to increase SaaS revenue • Services revenue share is projected <50% by the end of FY23 • Increasing share of SaaS revenue in sales mix driven by commercial rollout globally of new product lines • Services revenue FY21 Margin >40% • SaaS revenue FY21 Margin >75% • Hardware revenue FY21 Margin >70 % 3% 1 0 Chief Sales Officer 1 1 A future driven by iCap 1 1 • Infrastructure installation (cloud, virtual, and hardware) is the fastest and most robust foundation to embed iCap with customer systems • Ai-Media provides its customers with Premium, Smart Lexi, and Lexi solutions on the iCap network • Infrastructure sales today will provide future SaaS revenue for upcoming years iCap is the ubiquitous global live distribution platform for captioning, transcription and translation and is ground-breaking for both customers and Ai-Media Cloud-connected adaptive learning network Static circuit board Ai-Media’s visionary solution Standard solution ? No requirement to disturb customer with set-up details ? No additional infrastructure required to enable Lexi TM /Smart Lexi TM . All connected through the iCap cloud ? No patching in and out video feeds Manual patching in and out video feeds Manual loading of topic models ? Intelligent pre-loading of topic models Requires set-up confirmation with customers Needs additional infrastructure to enable all elements of live captioning to be fed into circuit board ? Upgrade and future-proof via cloud updates 1 2 Establish iCap network as global standard Become the go-to live captioning provider across the industry and around the globe Drive growth at higher margins Increase revenue share of our transformative SaaS product suite and hardware Ai -Media’s roadmap to 2025 Grow and diversify customer base Capitalise on increasing demand for live captioning across new segments and territories Enhance product suite and technology Continued investment in platform to further improve the quality of our product offerings 1 3 • Ai-Media is focussed on integrating its iCap network and platform with high value broadcast and enterprise customers • Ai-Media is disrupting high end premium services and unlocking new greenfield markets in the high-end automatic captioning and translation through Lexi and Smart Lexi which are delivered over iCap in multiple languages • 99.99%+ uptime across the iCap network with almost 100 million minutes a year delivered • Automatic captioning is transforming the industry, with distribution platforms playing a central role • This is a risk to Ai-Media at the low end, and an opportunity at the high end • Expected to be a significant opportunity for the business in the years ahead Ai-Media is disrupting the high end of the industry • Ai-Media expects some Live Enterprise businesses to migrate to third party platforms offering free ASR tools such as Zoom, MS Teams, and lecture capture systems • Ai-Media continues to retain select customers who partially migrated, however seek the quality that is not provided on third party platforms Using the best premium automatic captioning delivered over the iCap network and ecosystem Opportunity Low end impact High end impact 1 4 1 4 UN Convention on Rights of Persons with Disabilities • In November 2021, India’s Ministry of Information & Broadcasting announced draft accessibility standards for TV Programmes which require the delivery of sub-titles, closed captioning, and sign language • The draft rules would be notified under the Rights of Persons with Disabilities Act, 2016, once implemented • Convention on Rights of Persons with Disabilities (“CRPD”) Ratifications / Accessions: 175 Signatories: 160 3% Sources: https://www.un.org/disabilities/documents/maps/enablemap.jpg https://mib.gov.in/all_broadcasting_documents Providing Ai-Media with expansion opportunities into new markets October 2021 Q&A I nvestors Sue Sanossian Company Secretary +61 2 8870 7711 investorrelations@ai-media.tv For further information
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