AMBERTECH LIMITED — AGM Information 2023

Nov 22, 2023

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AGM Presentation 2023

ASX:AMO 23 November 2023

A leading value-added distributor of high-technology audio visual, broadcast and communications solutions

PROFESSIONAL INTEGRATED SOLUTIONS

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Media Systems

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Commercial Installations

Supply, installation and support of systems for the Broadcast and PostProduction industry

A range of exclusive brands focusing on commercial and educational clients

Residential Installations

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Defence Law Enforcement Security Specific products focussed on defence, law enforcement, emergency services.

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A range of exclusive brands complementary to the residential installation space.

Professional Products

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Specialist Hi-Fi

Products for professional users across music, studios, broadcasters and postproduction.

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Renowned high-fidelity brands for personal audio devices, advanced home audio components and digital accessories.

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Musical Instruments

Guitars, instruments and music technology for musicians of all levels.

RETAIL

Home Entertainment

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Exclusive brand representation in areas where product differentiation is clear in capability and value, including remote controls, portable projectors, TV stands and headphones.

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140 staff servicing a Centralised, highly Recognised as industry Unmatched after wide-range of skilled operational, preferred supplier sales support, with customers across Aus customer service and across multiple +35 years experience and NZ technical support segments staff

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2023 Highlights

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$84.2m $4.9m $1.9m $2.1c Revenue EBITDA NPAT EPS up 9.4% on pcp $10m[[1]] 1.5c Convoy Strong Headroom to Dividend per Business acquired pursuit further share and integrated position

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$10m [[1]]
Headroom to
pursuit further
M&A
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Strong Working capital position

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1. After Net Debt of $4.7 million as at 30 June 2023

FY23 Financial snapshot

(A$m)	FY23	FY22
Revenue	84.2	77.0
Cost of Goods	(55.5)	(50.0)
Gross Profit	28.7	27.0
GP Margin (%)	34.1%	35.1%
EBITDA	4.9	7.5
EBITDA Margin (%)	5.8%	9.7%
EBIT	3.8	6.2
EBIT Margin (%)	4.5%	8.1%
NPBT	2.7	4.6
NPAT	1.9	3.7
Adjusted NPAT (Jobseeker FY22)	1.9	3.1
EPS (cents)	2.1	4.2
Div PS (cents)	1.5	3.1

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(A$m)	FY23	FY22
Current Assets	42.9	35.1
Current Liabilities	23.2	14.4
Working Capital	19.7	20.7
Adjusted Working Capital (excluding cash)	18.1	18.5
Non-Current Assets	9.4	9.4
Non-Current Liabilities	6.6	7.9
Net Assets	22.5	22.2
Intangibles	(4.7)	(4.3)
Net Tangible Assets	17.8	17.9
(A$m)	FY23	FY22
Cash provided by Operating Activities	0.4	1.9
Cash used in Investing Activities	(3.0)	(2.0)
Cash provided by Financing Activities	2.0	0.6
Net (decrease)/ increase in cash	(0.6)	0.5

4

Strategic updates and priorities

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Business Growth of M&A Expansion into Brand development development Australian Monitor aligned verticals investment Continued Ability to leverage Proven track record Opportunities are Significant growth investment in established of M&A with developing for potential with business infrastructure and successful expansion into existing portfolio development knowledge base, to integration, aligned verticals. with largely activity, develop AMO including the Witnessing exclusive strengthening owned Australian successful competitive representation of relationships & Monitor Brand for integration of advantage as leading brands. increasing barrier to new export January 2023 diversified business Business structure entry. Ongoing markets Convoy acquisition. technology ensures that belief in value add Further growth via converges across individual brand via marketing, the addition of new multiple markets. focus is retained as training, service and brands, & business business grows technical support acquisition

Expansion into Brand development aligned verticals

Diversified brand portfolio drives competitive advantage

Ambertech is well-positioned to capitalise across differentiating segments as a complete supplier, leveraging our full-service distribution model

Suppliers are Dealer Competitors Ambertech is expanding networks are don’t traverse uniquely across multiple expanding the breadth of positioned to markets via capabilities to Ambertech’s understand and product service multiple offering to support each of development markets market these markets and business as a complete acquisition supplier

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Continued focus on growth via brand development

Ambertech’s strong reputation is attracting market leading brands to seek representation

Expansion into aligned verticals becoming realistic with new suppliers recognising our business expertise and market reputation

Current brand portfolio consists of brands at various development cycle stages

Over 25% of current brands retain high growth capacity with potential to deliver further revenue growth in coming years

Ongoing evaluation of emerging brands to bring new technologies and solutions to market

Business structure ensures that individual brand focus is retained as business grows

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Increasing scale with a disciplined acquisition strategy

Adding further scale in a sustainable manner by targeting opportunities, which:

• Increase market share and footprint in current markets

• Enhance value proposition and cater to evolving customer needs

• Gain technological competence and owned IP to foster sustainable growth

• Achieve economies of scale through operational efficiencies and improved customer satisfaction

• Limit brand conflict and retain focus on individual brands through growth journey

Demonstrated track-record of successful integrations

Acquisition	Date	Market	Acquisition Price	Goodwill	Annual Revenue^
Hills AV Business	Nov 2019	Commercial AV	$4.6m	$0.8m	$25M
Noise Toys	Sep 2021	Musical Instruments	$0.6m	$0.2m	$2M
Connected Media Australia	Oct 2021	Commercial & Residential AV	$1.3m	$0.3m	$3M
Convoy International	Jan 2023	Specialist HiFi	$2.8m	$0.5m	$5M

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^ Based on preliminary FY24 brand estimates.

Own brand development and expansion

Developing AMO owned Australian Monitor Brand for new export markets:

• Engineered in Australia, Australian Monitor is a leader in commercial AV amplifiers and speakers

• Currently over 90% of sales are domestic

• Significant opportunity to leverage international relationships for this brand

• Growth in international sales to assist with scale and pricing of manufacture

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Momentum continues with further wins

YTD Project Wins and agency gains

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Major Retail
Integrated Solutions Professional
•
Contract for the supply of $3m
worth of SSL consoles delivered in
H1 FY2024
•
Ongoing contribution of the
Network Ten contract. Revenue in
the order of $12m over 5 years with
$4.0M due in FY2024
•
Major law enforcement agency
contract for $2.2M
•
Several upgrades with national
broadcasters.
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FY24 updates and outlook

Continuing to execute on our expansion objectives

• YTD FY24 has started strongly with multiple project milestones completed and new wins secured.

• Dealer based business continues to grow despite ongoing economic challenges.

• Strong pipeline of Defence, Law Enforcement and Emergency Services work for future periods.

• Current expectations for 1H FY24:

• Revenue forecast in the range of $47m to $50m (Dec 22: $40.5m).

• EBIT forecast in the range of $2.8m to $3.4m (Dec 22: $1.5m).

• NPAT forecast in the range of $1.5m to $1.9m (Dec 22: $0.7m).

• Ongoing dividend payout commitment (target payout ratio of min 50% of NPAT)

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Projected Growth

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1H FY22 & 2H FY22 adjusted for Covid19 support payments received.

Strong project contribution this half and growth across the business.

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12

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Appendices

Capital Structure

Capital Structure	Capital Structure
Share price (22 November 2023)	$0.21
52-week range	$0.20/$0.355
Shares on Issue	95.2M
Options on Issue	3.5M
Market capitalisation	$20.0M
Net debt (30 June 2023)	$4.7M
Enterprise Value	$24.7M

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Substantial Shareholders	%
Appwam Pty Limited	29.8%
Wavelink Systems	7.8%
Amos Super Fund	5.6%
Greig & Harrison	5.5%
Sub-total	48.7%
Top 20	69.9%

Important Notice and Disclaimer

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Future performance

This Presentation contains certain “forward looking statements”. Forward looking statements can generally be identified by the use of forward looking words such as, “expect”, “anticipate”, “likely”, “intend”, “should”, “could”, “may”, “predict”, “plan”, “propose”, “will”, “believe”, “forecast”, “estimate”, “target” “outlook”, “guidance” and other similar expressions within the meaning of securities laws of applicable jurisdictions and include, but are not limited to, indications of, or guidance or outlook on, future earnings or financial position or performance of Ambertech, the outcome and effects of the Offer and the use of proceeds, including the impact of the acquisition. The forward looking statements contained in this Presentation are not guarantees or predictions of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of Ambertech, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. Refer to the risks section of this Presentation for a summary of certain general and Ambertech specific risk factors that may affect Ambertech. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward looking statements, including the risk factors set out in this Presentation. Investors should consider the forward looking statements contained in this Presentation in light of those disclosures. The forward looking statements are based on information available to Ambertech as at the date of this Presentation. Except as required by law or regulation (including the ASX Listing Rules), Ambertech undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward looking statements.

Effect of rounding

A number of figures, amounts, percentages, estimates, calculations of value and fractions in this Presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this Presentation.

Investment risk

An investment in New Shares is subject to investment and other known and unknown risks, some of which are beyond the control of Ambertech including possible loss of income and principal invested. Ambertech does not guarantee any particular rate of return or the performance of Ambertech, nor does it guarantee the repayment of capital from Ambertech or any particular tax treatment. In considering an investment in Ambertech shares, investors should have regard to (amongst other things) the risks outlined in this Presentation.

Disclaimer

To the maximum extent permitted by law, no representation or warranty, express or implied, is made as to the currency, accuracy, reliability or completeness of information in this Presentation and each of Ambertech and their respective advisers, affiliates, related bodies corporate, directors, officers, partners, employees and agents excludes and disclaims all liability, including without limitation for negligence or for any expenses, losses, damages or costs incurred by you as a result of your participation in the Offer and the information in this Presentation being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise. Ambertech, the lead manager and their advisors make no recommendations as to whether investors or their related parties should participate in the Offer. Statements made in this Presentation are made only as at the date of this Presentation. The information in this Presentation remains subject to change without notice. Ambertech reserves the right to withdraw the Offer or vary the timetable for the Offer without notice.