AMBERTECH LIMITED — Investor Presentation 2024

Feb 21, 2024

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Half Year Results Presentation December 2023

ASX:AMO 22 February 2024

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 focused 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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H1 2024 Highlights

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$50.9m
$3.6m $1.6m $1.7c
Revenue
EBITDA NPAT EPS
up 25.6% on pcp
Organic $8m [1]
1.2c Strong
Business growth Headroom to
Dividend per Working capital
driven by existing pursuit further
share position
agencies M&A
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1. After Net Debt of $5.8 million as at 31 December 2023

FY24 strategic updates and priorities

Business development investment

Growth of M&A Australian Monitor

• •

• Continued Leveraged investment in established business infrastructure and development knowledge base activity • Further

• Proven track record of M&A with successful integration

• Further

• • Strengthened development of relationships, AMO owned increasing barrier to Australian Monitor entry Brand

• January 2023 Convoy acquisition, integration completed

• Further growth potential via the addition of new brands, & business acquisition

• •

• Investment in value Export market add via marketing, expanding via new training, service and distribution partners technical support

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1[St] Half Operational Highlights

Brand development

• Significant growth potential with existing portfolio

• Implementation of new AP automation system

• Expansion of HR platform to further engage with our people

• Largely exclusive representation of leading brands

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

• Commissioning of business wide CRM to provide reporting efficiencies and inform future decision making

Momentum continues with further wins

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Project Wins and agency gains

Integrated Solutions Professional Major Retail • • Expansion into Contract for the supply of $3m worth building automation of SSL consoles delivered in H1 and lighting control FY2024 systems. • Ongoing contribution of the Network • Ten contract. Revenue in the order of Continued emphasis $12m over 5 years with $4.0M due in on brands with FY2024 unique features. • • Major law enforcement agency Brands address contract for $2.2M retailers’ growth strategy.

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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• Expansion of international dealer network underway in H1 FY24 with three new dealers added.

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Strong project contributions underpinned earnings

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Revenue ($m)

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50.9
40.8
38.3
1HFY22 1HFY23 1HFY24
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• 25.7% increase in revenue, totalling $50.9 million for the half

• Significant project deliveries in the half, underpinned profitability

• Strong improvement in EBITDA with an 80% increase on pcp to $3.6 million

NPAT ($m)

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1.6 1.6
0.7
1HFY22 1 1HFY23 1HFY24
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• Delivery of important project work during the half, including Network 10 and The Sydney Opera House supported top-line growth

• NPAT saw ~114% increase to $1.6 million compared to pcp

• Fully franked interim dividend of 1.2 cps

• 1H FY22 adjusted for Covid-19 support payments received.

10

H1 FY24 Financial snapshot

(A$m)	H1 FY24	H1 FY23
Revenue	50.9	40.5
Cost of Goods	33.9	26.4
Gross Profit	17.0	14.1
GP Margin (%)	33.3	34.8
EBITDA	3.6	2.0
EBITDA Margin (%)	7.1	4.9
EBIT	2.9	1.5
EBIT Margin (%)	5.7	3.7
NPBT	2.2	1.0
NPAT	1.6	0.7
EPS (cents)	1.8	0.8
Div PS (cents)	1.2	0.5

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(A$m)	H1 FY24	FY23
Current Assets	42.4	42.9
Current Liabilities	21.6	23.2
Working Capital	20.8	19.7
Adjusted Working Capital (excluding cash)	19.2	18.1
Non-Current Assets	8.6	9.4
Non-Current Liabilities	5.7	6.6
Net Assets	23.7	22.5
Intangibles	(4.3)	(4.7)
Net Tangible Assets	19.4	17.8
(A$m)	H1 FY24	FY23
Cash provided by Operating Activities	0.3	1.9
Cash used in Investing Activities	(0.2)	(2.0)
Cash provided by Financing Activities	(0.1)	0.6
Net (decrease)/ increase in cash	-	0.5

11

Revenue growth across the business

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Revenue growth ($m)

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0.5
0.7
9.2
50.9
40.5
1HFY23 Integrated solutions Professional Major retail 1HFY24
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12

FY24 updates and outlook

Continuing to execute on our expansion objectives

• First half included completion of multiple project milestones.

• Second half has begun well with an ongoing focus on strategic growth, margin improvement and EBIT/Sales %

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

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

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Appendices

Capital Structure

Capital Structure	Capital Structure
Share price (20 February 2024)	$0.255
52-week range	$0.20/$0.295
Shares on Issue	95.2M
Options on Issue	3.5M
Market capitalisation	$24.3M
Net debt (31 December 2023)	$5.8M
Enterprise Value	$30.1M

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Substantial Shareholders	%
Appwam Pty Limited	30.7%
Wavelink Systems	7.8%
Amos Super Fund	5.6%
Greig & Harrison	5.5%
Sub-total	49.6%
Top 20	70.1%

Important Notice and Disclaimer

The material contained in this presentation has been prepared by Ambertech Limited (“AMO”) and is general background information only about the businesses, operations and activities of AMO and its subsidiaries, current as at the date of this presentation. The information is provided in summary form only and does not purport to be complete or comprehensive. The information in this presentation should not be considered is advice or a recommendation for investment purposes, as it does not take into account your particular investment objectives, financial position or needs. These factors should be considered, with or without independent professional advice, when deciding if an investment is appropriate.

This presentation may contain forward looking statements with respect to the operations and businesses of AMO. The assumptions underlying these forward-looking statements involve circumstances and events that have not yet taken place, and which are subject to uncertainty and contingencies outside AMO’s control. Readers are cautioned not to place undue reliance on any forward-looking statements. AMO does not undertake any obligation to public release the result of any revisions to forward looking statements in this presentation or to otherwise update forward looking statements, whether as a result of new information, future events, or otherwise, after the date of this presentation. Past performance is not a reliable indication of future performance.

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To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of the material contained in this presentation is accepted by AMO.