AMBERTECH LIMITED — AGM Information 2020

Nov 9, 2020

ANNUAL GENERAL MEETING 10 NOVEMBER 2020

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ORDER OF PROCEEDINGS

Chairman’s Introductions Managing Director’s Presentation Questions Formal Business Closure

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CHAIRMAN’S INTRODUCTIONS

Board Members

Peter Wallace – Chairman Peter Amos – Managing Director Tom Amos, David Swift and Santo Carlini – Non Executive Directors Robert Glasson – COO and Company Secretary

Auditor

Martin Coyle – BDO East Coast Practice

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MANAGING DIRECTOR’S PRESENTATION Peter Amos

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OUR PROFILE

Media Systems Commercial Installations Defence, Law Enforcement & Security Residential Installations

Commercial Installations

Professional Products

Home Entertainment

Amber Technology is a leading value-added distributor of audio-visual and communications solutions. We support a network of professional, commercial and residential installers, consumer electronics (CE) & musical instrument (MI) retailers, content creators, broadcasters, and users of communications infrastructure across Australia and New Zealand.

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OUR FINANCIALS

	Revenue $m	EBITDA $m	NPAT $m	Working Capital $m	Operating Cash Flow $m	Net Debt $m
FY20	58.7	3.3	0.8	10.6	1.3	3.8
FY19	57.2	(0.3)	(1.3)	6.7	(0.5)	4.4

• Successful integration of acquisition of Hills Audio Visual division (“HAV”).

• Turnaround in EBITDA and NPAT achieved with strong second half.

• Increase in revenue despite Covid-19 impact.

• Cash flows strong in second half, resulting in lower debt levels and improved working capital. New facility negotiated.

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HAV Acquisition

	Ex-HAV Brand Revenue $m
1H FY20	0.6
2H FY20	8.9
FY20	9.5

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1H FY20 2H FY20
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• Achieving through successful capital raising.

• Successful transfer of 26 new staff.

• Significant increase in brand portfolio and customer base.

• Strong second half revenue performance – full year impact to flow in FY21.

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Our Results Half on Half

	Revenue $m	EBITDA $m	NPAT $m	Restructure Costs $m	JobKeepe Subsidy $m	r	Underlying EBITDA $m
H1 FY20	25.6	(0.4)	(1.6)	0.7	-		0.3
H2 FY20	33.1	3.7	2.4	-	(1.1)		2.6
FY20	58.7	3.3	0.8	0.7	(1.1)		2.9

• Results in 2H FY 20 significantly improved.

• Underlying result, adjusting for the one off costs associated with the acquisition, and the benefit of the JobKeeper subsidy, show the same trend.

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MANAGING THE IMPACT OF COVID-19

• Impact most significant in Q4 FY20.

• Biggest impact has been on live entertainment & events, and education.

• JobKeeper subsidy important to cash flow across FY20 (and 1H FY21).

• Proactive expense management underpinned solid cash flow.

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OUR SEGMENTS

Reporting Segment		Market	Products and Services New Reporting Segment
Professional		Media Systems	• Supply, installation and support of major systems for the Broadcast and Post Production industry Professional • Specific products focussed on defence and law enforcement. • Products for professional users spanning music, studios, broadcasters and post production
		Defence, Law Enforcement & Security
		Professional Products
Lifestyle Entertainment		Residential Installation	• A range of exclusive brands complementary to the residential installation space. Integrated Solutions • A range of exclusive brands focusing on commercial and educational clients.
		Commercial Installation
		Major Retail	• A focus on exclusive product representation in areas where product differentiation is clear in capability and value; including home cinema, universal remote controls and AV accessories. Retail
NZ		Subset of the above markets	• Subset of the above products and services. Consolidate into other primary segments

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OUR STRATEGY

• Opportunity Growth Initiatives

• Professional • Leverage capabilities to deliver more system sales as complete supplier. Recent examples include the ABC and Ausbiz.

• • Focus on increasing our recurring services model of multi year support contracts. • Increasing our own IP capability with the acquisition of Australian Monitor. The R&D for new product development continues with four new products in development.

• Integrated • Consolidate on market opportunities provided by expanded product portfolio and market presence Solutions gained from HAV acquisition • Identify and deliver on opportunities arising from changing nature of workplace arrangements including working from home.

• Retail • Introduction of a range of new low cost LED based projectors to the market. • Consolidate position as market leading supplier of universal remote controls.

• Acquisition • AMO is actively looking at acquisitions, with a number already identified in each area of the business.

• • We have disciplined framework for approaching relevant acquisition opportunities.

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OUTLOOK

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1H FY21 Results Guidance (unaudited)

	Revenue $m	EBITDA $m	JobKeeper Subsidy $m		Underlying EBITDA $m
H1 FY21 Forecast Range	34.0-38.0	3.6-4.0	(1.1)		2.5-2.9
Previous half – H2 FY20	33.1	3.6	(1.1)		2.5
Prior comparative period - H1 FY20	25.6	(0.4)	-		(0.4)

• FY21 trend has improved on the last quarter of FY20.

• Substantial growth over previous corresponding period despite Covid-19, primarily due to successful HAV acquisition.

• Underlying proforma EBITDA after adjusting for removal of Jobkeeper subsidy remains on positive trend.

• New finance facilities secured and in place.

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FY21 Contract delivery and wins

• Delivery of ABC contract announced in FY20 FY21 has occurred in 1H of FY21.

• New wins include:

• Supply of display technology into a major tertiary education facility. Delivery in 1H of FY21; and

• Supply and support of communications equipment into a law enforcement facility. Delivery in 1H of FY21.

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Important Information and Disclaimer

This information has been prepared by Ambertech Limited. This document contains background information about Ambertech Limited current at the date of this presentation. The presentation is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation.

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This presentation does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risk, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

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Forward Looking Statements

This presentation may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside of the control of Ambertech Limited. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under law and the ASX Listing Rules, Ambertech Limited does not undertake any obligation to update or revise any information or any of the forward-looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward-looking statement is based.

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