AUDINATE GROUP LIMITED — AGM Information 2023

Oct 23, 2023

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24 October 2023
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FY23

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Board of Audinate Group Limited1

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Chairman’s Presentation

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A look back at where we’ve been…

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2020
Customer
orders
Phase 1:
pushed out
Demand-side Factory Government
shutdowns interventions
shock Monthly
revenue
cut in half
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But that wasn’t all…

2021 - 2022 Chip shortages Many OEMs Phase 2: Forced forced to Supply-side Higher prices redesign of take similar shock Brooklyn II Pushed out or actions cancelled delivery dates

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Light at the end of the tunnel…

Highlights from FY23

Net profit of A$10.6M

(including EBITDA recognition of up156% $7.7m of tax losses) to $11M

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Meaningful product highlights as well…

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Dante 34 OEM 48 video Cambridge UK Launch of brands and Silex first cloud AV-H and products AV-A signed up launched Brussels teams product released for Dante delivering video Dante video expertise Connect

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And a great start to the current year…

Will help in accelerating our strategic goals in video and software

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CEO’s Presentation

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World-leading technology supplier to Pro-AV

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Audinate is the company behind the
Dante [®] media networking solution
used in the professional AV industry
Poland
USA
UK
Belgium Japan
3,853 13 Mexico France China
Dante-enabled Germany Hong Kong
Locations
products Philippines
Brazil
575
Total OEMs >220k
brands Professionals
licensing trained on Dante
HQ Sydney
Dante
Australia
8
197
Languages
Employees
supported
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World-leading technology supplier to Pro-AV

Dante is in millions of devices and can be found in a diverse range of installations and applications across industries, including:

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Conference Rooms

Houses of Worship

Broadcast Studios

Arenas and Stadiums

Universities

Corporate Campuses

Conference Centres

Theatres

Recording Studios

Transportation

Amusement Parks

Zoos

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Dante Product Map

System Software

(For system setup, management and troubleshooting)

Dante Domain Manager

Dante Controller

Dante Director

Audio Visual Integrators, Professionals & Consumers

PC/Mac/Cloud Software

AVIO Network Adaptors

• Dante Studio (AV) • Dante Virtual Soundcard

• Analogue • USB / Bluetooth

• Dante Via • Dante Connect

Embedded Audio

Embedded Video

Manufacturers

Software

Software

Chips, Cards & Modules

Chips, Cards & Modules

(OEMs)

• Dante Embedded Platform

• Brooklyn

• Dante AV Ultra • Dante AV-H

• • Viper Board • Dante AV-A

• Ultimo • Dante Application Library

Original Equipment Manufacturers

• Broadway • Dante Ready

• IP Core

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Leading Global Supplier of AV Networking

Total audio products per protocol

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3,853
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400 4000
US$2bn OEM brands
Total addressable shipping Dante 3500
market [(1)] enabled products
3000
2500
3,853 12x
Dante enabled Market adoption 2000
products available of Closest
on the market competitor 1500
1000
>220,000 500
Professionals 333
trained on Dante 138
0 8 7
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Dante Ravenna AVB/Milan Others
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• 1) RH Consulting, Networked Audio Products 2023 and Audinate company data

1) Omdia research and management estimate

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Gross profit growth accelerates

Gross profit growth accelerates	Gross profit growth accelerates
11.3 15.0 15.6 19.2 24.9 33.4 74.5% 74.4% 76.6% 76.4% 74.7% 72.1% 60% 70% 80% 90% 100% 110% 120% 130% US$0M US$5M US$10M US$15M US$20M US$25M US$30M US$35M FY18 FY19 FY20 FY21 FY22 FY23 Gross Profit Gross Margin % US$M Gross Profit CAGR % 2yr - 32% 5yr - 24%		Other Key Financial Metrics Variance vs FY22
		A$69.7M Revenue 50.6%
US$0M US$5M US$10M US$15M US$20M US$25M US$30M US$35M	11.3 15.0 15.6 19.2 24.9 33.4 74.5% 74.4% 76.6% 76.4% 74.7% 72.1% 60% 70% 80% 90% 100% 110% 120% 130% FY18 FY19 FY20 FY21 FY22 FY23 Gross Profit Gross Margin % CAGR % 2yr - 32% 5yr - 24%
		US$46.7M US$ Revenue 40.0%
		72.1% Gross Margin % (2.7%) -
		A$11.0M EBITDA 156.4%
		A$40.0M Cash & Term Deposits ($4.4M) -
		A$1.4M Net Profit Before Tax $5.8M

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Profitability evident in scalable cost base

Ongoing focus on innovation and R&D to maximise future growth opportunities

Operating leverage in the cost base is once again evident as additional gross profit drives profitabilty

Research and Development (A$M)

Revenue, cost trends (A$M)

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32% 69.7 80%
25 29% 30% 31% 65
30% 75%
24% 24%
20 16.9 25%20% 55 72% 70% 50.2 70%
15 14.3 2.1 15% 45 65% 67% 65% 39.2 65%
1.1 60%
10.7 10% 35
10 9.1 5% 55%
5.7 6.7 1.1 7.4 10.5 12.1 0% 25 56% 50%
0.8
5 5.9 -5%
2.9 15
4.5 45%
1.1 -10%
0 2.8 1.4 2.1 2.1 2.8 2.7 -15% 5 40%
FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23
Research Initial Cambridge Research Revenue Gross Margin $ Opex Opex as % of revenue
Internal Development External Development
R&D as % of revenue
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Success in Dante Video

During FY23 all video objectives were achieved

Dante AV-H released (uses H.264 codec)

Dante AV-A launched and released (uses ASPEED codec)

Dante Studio software released for AV professionals Video support added to Dante Domain Manager

26 design wins for Dante video products

34 OEM brands have now licensed Dante video products

48 Dante video products launched by customers (up from seven at 30 June 2022)

>10,000 video endpoints shipped

>US$3m in revenue from video products

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Total Addressable Market (TAM)

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New TAM better reflects Audinate’s market opportunity

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What is TAM?

Rationale for update

Approach

Quantifies the potential revenue opportunity for a product or service within a specific market (assuming 100% market share)

Elements of existing TAM date back to the IPO

Omdia were engaged due to their AV expertise. They are also the research house for AVIXA (AV industry body)

Historically, data was not available to fully estimate TAM

Commissioned research on AV market size, segment addressable by networking and unit numbers by product categories

TAM calculation is based on the current Dante product set at 2023 prices

An expanded Dante product set has resulted in a larger TAM

Mapped to existing Dante product set & current price list

Market has grown with time, impacted by post COVID trends

Denominated in US$ to match revenue billing currency

Excludes adjacent market opportunities

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Networked AV market opportunity is USD $2 billion

Audinate Updated TAM[] USD $2bn

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Audio share of Audio Market
Audio
Networking estimated at 9%
Revenue opportunity for addressable audio $330m
products including speakers, microphones,
amplifiers, mixing consoles and signal processors
Software
Video
Services for
Revenue opportunity for cameras,
Pro-AV
displays, projectors, signal routing and $890m
switching products
Software
Revenue opportunity for management control
Video
software (Dante Domain Manager) and Dante
Networking
PC/Mac software for AV professionals $780m
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Additional revenue opportunity to fulfill Dante software vision is incremental to the TAM and not depicted in the TAM pie chart

• Based on Omdia research and management estimates

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Implications

Confirmed expectation opportunity greater than previously calculated

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New data provides additional conviction on existing strategy Forward estimates point to strong industry growth greater than long-term historical average Long runway for growth remains across all segments Valuable data to support intuition on additional software opportunity

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Capital Raise
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24 October 2023
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Capital to accelerate growth strategy

Continued strategic investment

• Deliver new and innovative products related to Dante audio installations, e.g.

• IoT-style device management services (like DanteDirector)

• Software based signal processing solutions (like Dante Connect)

• Build the “operating system for AV”

Win in Video

• Build on early success in Video – replicate Audiosuccess

• Drive execution of strategic Videoplan, with benefit of capitalto invest

• Accelerate full video product portfolio, e.g.

• Dante Connectto supportvideo

• Full range of PC / Mac software apps

Flexibility to explore pipeline of M&A opportunities

• Bolt-on M&A opportunities have been identified to accelerate video and cloudstrategy

• Audinate successfully acquired and integrated the Silex video business in 2022and has successfully established operations and business unitsacross a range of countries

• Strategy to consider additional video capabilities is important to potentially accelerate the next phase of growth

Audinate M&A assessment framework

Technology / IP

• Acquisition of technologies relevant to our strategic roadmap including video compression, software-based signal processing, IoT-style device management, etc.

• e.g. video compression technology obtained via acquisitionof the Silex Insight video business

Skills and people

• Skills and people to enhance internal capabilities

• e.g. video software expertise obtained in the Cambridge office via “acquihire”

Enhanced capabilities

• Businesses or assets that have complementary products or services in existing or adjacentmarkets

Financially attractive

• Audinate has a disciplined approachto valuation and funding to ensure transactions are on financially attractive terms and providea strategic benefit to Audinate

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OUTLOOK & PRIORITIES

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Continuing growth

FY24 Priorities

1 2 3 4 5 Double the Release Success with Improve Improve video ecosystem additional video >30k video units and cloud Dante Connect scalability of profitability and cloud offering cost base cashflow in-field or products shipped

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Global AV Industry Size

FY24 Outlook

Easing of supply chain challenges means a return to business as usual

Backlog at near-record levels provides good revenue visibility

Global macro-economic uncertainty

M&A opportunities surfacing to accelerate organic growth plans in video and cloud

Additional headcount of 15% between core and growth opportunities in video, cloud & professional services

Improved profitability & cashflow

Transition to software by OEMs expected to recommence but likely neutral for gross profit

Growth in US$ gross profit dollars consistent with historical performance

2028 2022 US$402 US$285 BILLION BILLION 2023 US$307 BILLION

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The pro-AV industry AVIXA estimates the is expected to grow industry will grow nearly in over 8% 2023, 41% 6 years to hit a new high-water mark of to US$402 billion US$307 billion globally . in 2028

Source: AVIXA 2023 Industry Outlook and Trends Analysis

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THANK YOU

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Important notice and disclaimer

Past performance

Disclaimer

Past performance information, including past share price information, given in this presentation is given for illustrative purposes only and should not be relied upon as an indication of future performance.

To the maximum extent permitted by law, none of the Audinate Group Limited or its subsidiaries or their directors, employees or agents accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness or correctness, likelihood of achievement of reasonableness of any forecasts, prospects, statements or returns contained in this presentation. Such forecasts, prospects, statements or returns are by their nature subject to significant uncertainties and contingencies. Actual future events may vary from those included in this presentation.

Future performance

Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions.

Financial information

Certain financial data included in this presentation is 'non IFRS financial information.' These measures are used internally by management to assess the performance of the business and make decisions on the allocation of resources and are included in this presentation to provide greater understanding of the underlying financial performance of the Group's operations. When reviewing business performance, this non-IFRS information should be used in addition to, and not as a replacement of, measures prepared in accordance with IFRS. Readers are cautioned not to place undue reliance on any nonIFRS financial information and ratios included in this presentation. The non-IFRS information has not been subject to audit or review by Audinate's external auditor.

Summary information

This presentation is for information purposes only is not a recommendation or advice in relation to Audinate or any product or service offered by Audinate or any of its subsidiaries. The information in the presentation is of a general nature only and is not intended to be relied upon as advice to investors or potential investors.

Currency

All amounts in this presentation are in Australian dollars unless otherwise stated.

The non-IFRS measures do not have any standard definition under IFRS and may be calculated differently by other companies.

Market share information

All market share information in this presentation is based on management estimates and internally available information, unless otherwise indicated.

No offer of securities

Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell Audinate securities in any jurisdiction.

Reliance on third party information

The views expressed in this presentation contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by Audinate.

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