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DTI GROUP LTD — Investor Presentation 2016
Nov 13, 2016
64790_rns_2016-11-13_420deb74-ac0b-4ef3-866b-aa8c7161c3ab.pdf
Investor Presentation
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Additional Information to Investor Presentation
14 November 2016 – DTI Group Ltd (ASX: DTI) ( DTI ) is pleased to provide additional information on the investor presentation released to the market on 7 November 2016.
As shown in the 7 November 2016 investor presentation, the future outlook for DTI is strongly reinforced by the record number of prospects currently being pursued with a corresponding value of $400 million compared to $200 million 12 months ago. These prospects represent over 100 potential projects with approximately 76% in the rail market by value. The expected timing of the award of the contracts by market segment is shown in the chart below in the corresponding financial years and according to market segement.
Bus projects typically have shorter decision lead times than rail as shown in the chart. Project duration varies on the prospective projects from between 3 and 192 months and valued between $100,000 and $58 million. The average value of prospective bus projects is $1.1 million with an average decision lead time of 17 months and the average value of prospective rail projects is $4.78 million with an average decision lead time of 22 months.
Prospects – Expected Award Timing
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----- Start of picture text ----- $m160140120100 OtherBus80Rail60 Total40200FY2016/17 FY2017/18 FY2018/19 FY2019/20----- End of picture text -----
Note :
Factors influencing decisions on prospects proceeding are uncertain, may change and are generally outside the control of DTI. However, DTI considers that it is well positioned to win a number of the prospects.
31 Affleck Rd | Perth Airport WA 6105 T +61 8 9479 1195 | F +61 8 9479 1190 DTI Group Ltd | ABN 15 069 791 091 www.dti.com.au
Additional Information to Investor Presentation 14 November 2016
As mentioned in DTI’s 2016 annual report, DTI’s recurring revenue totalled $8.95 million for the year which represented 54.5% of total sales, up from 38.0% at the half year. This recurring revenue includes $2.57 million from maintenance activities plus a further $6.38 million of ongoing monthly sales to companies such as bus and rail manufacturers. These ongoing monthly sales are primarily due to fleet renewal programmes where contracts can extend for up to 10 years. For example, DTI announced in July 2014 that its advanced surveillance solution has been specified in a bus procurement tender issued by the San Francisco MTA. This bus procurement tender includes the manufacture of up to 454 buses over a five-year period with orders having now commenced. Other examples include bus procurements for the Brisbane City Council, Perth PTA, Philadelphia and light rail vehicles for San Francisco. With DTI’s advanced surveillance solution being increasingly specified as the system of choice, it is expected that recurring revenue will continue to increase in future years.
About DTI Group
DTI develops and provides world-leading surveillance, video analytics, and commuter communication systems technology and services to the mobile transit industry worldwide. Core technology development and system design activities are undertaken from the Company’s head office.
Enquiries Richard Johnson Chief Executive Officer DTI Group Phone: +61 8 9479 1195 www.dti.com.au
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