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SPACETALK LTD — Investor Presentation 2022
Feb 20, 2022
65842_rns_2022-02-20_a59a12a9-58ea-41ad-a0dc-109500e61f03.pdf
Investor Presentation
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Important notice
- This presentation has been prepared by Spacetalk Ltd. ("Spacetalk," or "Company," or "SPA"). Information contained in this presentation:
- is intended to be general background information only, and is not intended that it be relied upon as advice to investors or potential investors and is not an offer or invitation for subscription, purchase, or recommendation of securities in Spacetalk • should be read in conjunction with Spacetalk's financial reports and market releases on ASX • may include forward-looking statements about Spacetalk and the environment in which Spacetalk operates, which are subject to significant uncertainties and contingencies, many of which are outside the control of Spacetalk – as such undue reliance should not be placed on any forward-looking statements as actual results or performance may differ materially from these statements • includes statements relating to past performance, which should not be regarded as a reliable guide to future performance • includes certain financial information which Spacetalk considers useful to assist in evaluating Spacetalk's performance, however, such information has not been subject to audit or review in accordance with Australian Auditing Standards All dollar values are in Australian dollars (A$) unless otherwise stated. • HY = half financial year ended 31 December
Definitions:


About Spacetalk 1


About Spacetalk
Who We Are
Spacetalk Ltd. is a global technology provider of secure communication solutions for families to stay connected.
What we stand for
Connecting families
Smartphone watches purpose-built for kids and seniors, with software designed to enhance their independence while enabling guardians to ensure their safety and care.
What we deliver What sets us apart
Proprietary end-to-end design, engineering and product development, with software built in-house and IP created and owned. Tested, certified and ranged by global tier-1 mobile network operators and mass market retailers, meeting the highest standards of security, privacy and usability.




7
2
Half year results summary


HY2022 Financial Highlights
Group: Record performance. Strong wearables sales with flow on to App revenues

HY2022 Financial Highlights
Group: Record performance, attributable to strong Device sales + App revenue

HY2022 Wearables Summary

11
Wearables Business



Our Network Operator Partners

Our Retail Partners






Strategy & outlook
3


Wearables Market Continues to Grow
WORLDWIDE VOLUME (M UNITS) OF
The wearables category is forecast to experience strong worldwide growth.

Source: Futuresources

Smartwatch Headmounted display Smart clothing Ear worn Wristband Sports watch
FORCAST UNIT SHIPMENTS OF WEARABLE DEVICES WORLDWIDE FROM 2017 TO 2019 AND IN 2022 (IN MILLIONS), BY CATEGORY
Source: Gartner © Statista 2018 Additional Information Worldwide: 2017 to 2018
Wearables Market Continues to Grow
The wearables category is forecast to experience strong worldwide growth.

$81.5 billion in 2021, an 18.1% increase from $69 billion in 2020… The rise in remote work and increased interest in significant factor driving market growth." Source: Gartner Research, IDC.
Source: Gartner Research.
"Market forecast predicts that shipments of wrist-worn wearables will hit 232 million units in 2021, a growth of 20% from an already solid 2020. Of sales in 2021, 142 million units will be
Trading Update
Group revenues in January 2022 were ahead of January 2021 by 15%.

sales promotion in March 2022 in collaboration with distribution partners.

continue to improve. Nordic sales continue to grow since November 2021.

modest. Investments in awareness, operational systems refinement, and search algorithm optimization continue.
FY2022 Report Card
| FY2022 Report Card | |
|---|---|
| FY22 Objectives(reference August 2021) | |
| STATUS/PROGRESS | |
| OBJECTIVE | |
| 50% total revenue growth relpcp | |
| Grow top-line revenue | |
| 56% wearables revenue growth relpcp | |
| Expand Spacetalk LIFE distribution | On-going engagement with aged care operators andservice providers |
| New ecosystem functionality, languages and revenue streams | Major update in October 2021 –Level UpAdded functionality and 6 new languages |
| Paid premium services in development | |
| Expand global penetration | Distribution expanded to North America and Nordicregions |

| OrganisationalCapability | ||
|---|---|---|
| WHO | ROLE | PRIOR |
| Apple, Kinsa, FitBit | ||
| MrJim Quinn | Chief Operating Officer | |
| MrMark Moloney | Global Sales Director | JB HiFi, Sony Pictures |
| MrMartin Darbyshire | Chief Design Officer | Tangerine |
| WHO | ROLE | PRIOR |

FY2021 Key Takeaways
| FY2021 Key TakeawaysScorecard: Record revenue and improved returns through more products and new channels,with continued high customer satisfaction | ||||
|---|---|---|---|---|
| Growing GlobalOpportunity | •Wearables one of fastest growing consumerelectronics segments.•Kids wearables one of fastest growing withinwearables segments.•High correlation between awareness and sales growth | QualitymanagementAnd Governance | •Non-Executive Director appointed•Chief Design Officer appointed•Chief Operating Officer appointed•Global Sales Director appointed•Russell Reynolds & Associates engaged for Chair search | |
| Expandeddistribution | •Expanded distribution to USA•Expanded distribution to Canada•Expanded distribution to Norway•Expanded distribution to Sweden•Expanded distribution to Denmark•Expanded distribution to Finland | Positionedfor Growth | •Market leading product•Competitive strategic advantage from end-to-endownership and control of technology•Expanding global distribution footprint and infrastructure•Investment in next generation of wearables | |
| Revenue Growth | •50% total revenue growth relpcp•56% wearables revenue growth relpcp•57% device sales growth relpcp•67% app revenue growth relpcp•52% app ARR growth relpcp | LookingForward andInnovating | •Next generation wearable in development•App enhancement in development•Paid Premium Services in development | |


Connecting families | safe | engaging | reliable
This announcement has been authorized by Spacetalk CEO Mark Fortunatow.
Spacetalk Ltd. (ASX:SPA) is a global technology provider of secure communication solutions for families to stay connected and protected. Spacetalk's range of all-in-one smartphone GPS watches for children (Spacetalk KIDS and Spacetalk ADVENTURER) and seniors (Spacetalk LIFE) are purpose built with tailored features, design qualities and best practice data encryption, security and privacy technologies, for families to stay confidently connected. Fun, fashionable, secure and technologically advanced, Spacetalk devices deliver confidence for the child and senior wearer, enhanced controls for the guardian, and engaging functionalities for the whole family to stay connected. The Spacetalk App is designed to provide a family environment for fun, engaging and secure media consumption beyond its device control functionalities for the guardian. Every linked contact – parents, grandparents, extended family members and friends – regardless of whether they are Android or iOS users, can interact with linked Spacetalk devices and each other through the Spacetalk App. Spacetalk was founded in 2001 and listed on the ASX in 2003 as MGM Wireless Limited, which developed the world's first SMS student absence notification platform for schools and went on to become Australia's most successful school messaging company. On 12 November 2020 the Company changed its name to Spacetalk Ltd. Investor Centre: https://investors.spacetalkwatch.com/
Investor Enquiries Dimitri Burshtein Investor Relations and Corporate Development +61 493 041 751 [email protected]


spacetalkwatch.com
