AMBERTECH LIMITED — Investor Presentation 2020

Feb 27, 2020

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Investor Presentation

28th February 2020

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Ambertech Overview

Customers

• More than 800 customers across Australia and New Zealand

• Approximately 520 shop fronts

• Leading customers across key verticals

Partners

• Over 200 dealers in custom audio video install/ integration

• 105 dealers in commercial AV and 210 dealers in professional products

• Currently 68 distribution agreements with over 45% for 8 years or more

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Market Traction

• Multi award winner

• Leading supplier of AV technology support

• Leading products for technology bundling of products and services for audio and visual media

• Nine Network, Seven Network

• RutledgeAV

• Foxtel, TVNZ

• JB HIFI, Harvey Norman

• NSW Police

• Leonardo

• Programmed

• Fredon

• AV Australia

• GM Multimedia

• Pro AV

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Ambertech Strategic Pillars

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Leading Australian distributor of technology equipment solutions operating through six key strategic pillars

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Commercial Audio Visual

Custom Installation Products

Professional Products

A range of exclusive brands focusing on commercial and educational clients .

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

Products for professional users spanning music, studios, broadcasters and post production.

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Media Systems

Supply, installation and support of major systems for the Broadcasters, and production industry.

Defence Law Enforcement Security

Specific products focussed on defence and law enforcement.

Major Retail

A focus on exclusive product representation in areas where product differentiation is clear in capability and value.

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Half Year Results

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Key Information
The following information is provided to the ASX under listing	rule 4.2A.
	31 Dec 19	31 Dec 18	Movement
	$’000	$’000	$’000	%
Revenuefrom ordinary activities	25,599	32,473	(6,874)	(21.2)
(Loss)/Profit after income taxfor the period attributable to
members	(1,577)	335	(1,912)	(571)
Net (loss)/profitfor the period attributable to members	(1,577)	335	(1,912)	(571)

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Amber Integration of HAV

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• Integration near complete of HAV staff to Amber Technology – HR departments from both companies worked together to transition employment agreements and entitlements and from January Amber has integrated the sales, manufacturing, warehousing and support into our Warriewood facility

• Brands – The portfolio are a number of well-regarded AV brands including Australian Monitor, Williams Sounds and Grandview projector screens have been included and some Amber brands retired. The Amber portfolio was finalised in January 2020

• Sales – The Amber warehouse was extended and upgraded to accommodate the new Agency stock and fulfillment is now fully operational. We worked closely with Hills towards minimal disruption in the ordering process during this transition phase

The increased range and depth in the AV market is already showing through with sales teams in January performing very well. Our focus is on building sales by serving the AV markets in Australia and New Zealand with the best AV sales and support organisation.

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Major Projects

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Ambertech has a number of major project initiatives that it expects to progress in this current FY20 and beyond

• Ambertech announced that it had supplied the hardened and agile Silvus radio systems for use in Emergency Services and Fire Services when the commercial cellular radio services either fail or are unable to cope. These radio systems were successfully deployed in the recent fires and provided the reliable critical infrastructure under extreme conditions. Larger scale deployments on the back of this success are now underway.

• Ambertech has been awarded a contract with Leonardo to upgrade the RAN Anzac fleet with Silvus radio solutions. Phase 1 is scheduled for delivery in May 2020 ($A900K for Phase 1) and there are two subsequent phases.

• Modernisation of domestic television production facilities. These are continuing ongoing contracts including software maintenance.

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Outlook & Guidance

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Guidance & Outlook

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The acquisition of HAV provided Ambertech with the right people, products and customer partnerships to drive growth into FY20 and beyond

• Ambertech expects revenue and EBIT in the range of A$68m to $70m and A$1.8m to $2m respectively in FY20, which includes 5 months contribution from HAV to the combined group due to completion delays in the acquisition

• Ambertech is projecting that it expects revenue and EBIT to be on track for the 1H FY21 under the current business conditions. There is a watching brief on the supply chain issues arising out of the China Covid19 virus control

• The Board of Directors have agreed to pay a final dividend going forward, targeting a pay-out ratio of between 45 – 55%

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Roadmap for FY20

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Key pillars of future growth:

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1 Sustain strong momentum into FY20
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• Focus on opportunities from within existing agencies, as well as the potential for new agency or business acquisition

• Pipeline for project business with our media systems partners is substantial, we anticipate continued success in the area for the FY20

• Increase commitment to customer retention and customer acquisition programs through increased resourcing, and focused go to market programs

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2 Expand distributor, partner and channel development
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• Deepen distributor, partner and channel development activities to support growing market development and expansion

• Expand development of AV partner network with HAV product penetration into existing Ambertech customer base

• Continue strong software release cadence across all platforms

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Pursue accretive corporate opportunities

• Continue to review market for accretive M&A opportunities to accelerate AV technology to market roadmap and enhance go to market opportunity

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Important Notice and Disclaimer

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, E.L. & C Baillieu Limited 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.