Announcement PDF Spectur Business Update – Presentation ASX Announcement | 31 October 2023 Outdoor sensing, thinking and acting solutions and platforms company Spectur Limited (ASX: SP3) \ present the attached deck today (Tuesday 31 October 2023), available at the Spectur InvestorHub portal: https://investorhub.spectur.com.au/link/Ve95oe Managing Director of Spectur, Gerard Dyson, provides an overview of Spectur, the Q1 activities, future strategy and addresses some recent questions. The attached presentation forms the basis of the market update. Ends. This ASX release is authorised by the Board of Directors of Spectur Limited. To stay up to date on news and announcements, register your details on the Spectur investor portal. For further information, please contact: Spectur Limited Gerard Dyson – Managing Director p: +61 (08) 9414 9059 e: investors@spectur.com.au About Spectur Limited Spectur Limited (ASX:SP3) is an Australian-based developer of security, surveillance and warning solutions powered by solar, IoT [Internet of Things], camera and cloud-based technology. The Company owns the rights to its innovative hardware and disruptive cloud-based systems which are deployed to provide solutions to industries including government and utilities, and the building, construction, and civil sector. Spectur’s core products are solar powered warning, deterrence and surveillance systems and associated cloud-based platforms. These systems incorporate cameras, lighting, audible warnings, and a hardware IoT platform, remotely accessed and connected via 3G/4G technology to a cloud-based platform. The offering is complemented by a longer distance, 24-hour thermal camera deterrence solution, suitable for customers with long perimeters. Spectur is used and trusted by small business to multinationals and the Company is currently implementing a strategic growth plan to build market dominance in the Australian government and utilities sector to meet demand for innovative, remote camera and IoT solutions. To learn more, please visit: www.spectur.com.au Spectur Limited (ASX:SP3) Investor Briefing, 31 October 2023 Presented on InvestorHub at https://investorhub.spectur.com.au/announcements Disclaimer This document has been prepared as a summary only and does not contain all information about Spectur Limited’s (the “Company’s”) assets and liabilities, financial position and performance, profits and losses, and the rights and liabilities attaching to the Company’s securities. This document should be read in conjunction with any public announcements and reports (including financial reports , third party studies and disclosure documents) released by the Company. Certain statements made in this presentation are forward-looking statements. These forwardlooking statements are not historical facts but rather are based on Spectur Limited’s current expectations, estimates and projections about the industry in which Spectur Limited operates, and its beliefs and assumptions. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” and similar expressions are intended to identify forward -looking statements. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. These statements are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Spectur Limited, are difficult to predict and could cause actual results to differ materially from those expressed or forecast in the forwardlooking statements. Spectur Limited cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Spectur Limited only as of the date of this presentation. This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities, nor the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law. This document does not purport to be complete and is for informational purposes only: it does not represent financial advice. Persons needing advice should consult their stockbroker, bank manager, solicitor, accountant or other independent financial advisor. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. Spectur Limited will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority. 2 3 + 1 Things 1. Re-introduce you to Spectur 2. Walk through our latest highlights 3. Show how we are going to get dominant chunk of a large and growing market Answer some questions that have recently arisen 3 Beaches Construction sites Bush or parkland No lifeguard, surveyor, coastal scientist? No security guard, safety officer, contracts manager? No ranger, security officer, waste manager? Technology can fill some critical elements of these roles It just needs to sense, think and act… …but what about power and data? 4 Our Mission We make communities safer, smarter and more sustainable in temporary, remote and unpowered outdoor areas. We do this by leveraging our unique solar-powered, sensing, thinking and acting hardware connected via an easy, open and AI-assisted could and interface. 5 No People No Data Cable No Power Cord • Safety and warning Challenges we solve • Security and surveillance • Environmental and coastal monitoring • Smart cities and AI platforms …in off-grid, temporary and outdoor settings 6 The solution platform Client Cloud Fully integrated Video & Data Analytics Platform Sense Think Act Modular AI 3rd Parties ON DEVICES ON CLOUD OFF SITE 7 Imagine an ecosystem… Native hardware Add-ons Storage Cloud Apps 3rd party applications Unique hardware Native applications Connected to 3rd party hardware Smart cloud Store Add-ons Apps Data Storage Developers… 8 Spectur… Native hardware Add-ons 3rd party applications • • • • • • • • LPR Environmental Counting more Storage Cloud Apps Poles Bases STA-Power more Phone apps Connected to Smart cloud Web apps Native applications • • • • • Security Safety Live view Timelapse more 3rd party hardware Store Nascent Add-ons • • • • Trailers Cameras Lights more Apps Data Storage Developers… 9 $ Unique competitive advantages Purchase, lease or rent • To suit all commercial imperatives • Only turnkey solution for resellers Sense – Think – Act Deployable remotely • Solves full problem • No grid/recharging needed • Sense: multiple sensors • Runs 24/7 • Think: make decisions • Rapid deployment • Act: do something useful • Cost, power, data efficient Fully integrated 100% Australian Modular and Open • Many devices, one interface • Data stays in ANZ • Designed as a platform • Easy use via app or web • Australian designed and manufactured • APIs for multiple integrations • Cameras, sensors, AI, data • Cloud and edge • Eliminates security issues • Fully programmable • No humans needed • Zero native competitors • Presents all data in one place 10 Quarter 1 highlights 11 Q1 FY24 Revenue and sales Highlights • Total revenue $2.063m up 25% on Q1 FY23 • Recurring revenue $1.286m up 38% on Q1 FY23 • Record quarter of sales with $1.827m • Opportunities: o Local / state government o Construction and LPR o Telecommunications o Security resellers o AI and sensing o Safety and warning • Pipeline continues to grow 12 Q1 FY24 Cashflow Highlights • $720k of net operating cash used including o Inventory growth ($142k) o One-off and annual costs ($346k) $232k underlying net operating cash used • Cash balance at end of quarter $0.866m • Operating expenses include 3CT and SNZ entities. • Q1 always has seasonal high cash outflows – not an analog for full year performance • Cash balance at 23 October 2023 $1.452m (down $70k on 30 June 2023) • Debt balance at 23 October 2023 $500k (down from $650k on 30 June 2023) 13 Other Q1 FY24 achievements • Two new NEDs engaged (Rhett Morson / Marco da Silva) – support future growth plans • $75K placement to Marco da Silva at 2c (a premium to 5-day VWAP and last traded price) • Hardware stack refresh – improvements on all key metrics o HD6 complete and pending launch (HD5 ended production) o STA7 first production run in progress (STA6 ended production) o Next generation UI / UX commenced (V1.0 in field trials in Q2) • In-house marketing (starts 25 October 2023) • Cash control • Overhead control • Margins improvement Business primed for profitable growth • Infrastructure built for scale • Better customer experience • Improving overheads / margins • Growing top line 14 Capital Structure Key Metrics as at 30 October 2023 Top Shareholders (as at 30 October 2023) Share Trading Information ASX code SP3 Listed on ASX 01/08/2017 Current share price (cents) 1.7 Market cap $3.9m 52 week closing high (cents) 3.5 52 week closing low (cents) 1.7 Capital Structure Current Shares on issue 229.5m Performance Rights on issue 28.7 m Unlisted Options 49.9m Share Register APPWAM Pty Ltd 9.13% Coastalwatch Holdings Pty Ltd 3.51% Jomaho Investments Pty Ltd 3.45% Sandhurst Trustees Ltd <Equit Inv Dragonfly A/C> 2.34% Mr Peter John Ferris 2.27% Fry Super Pty Ltd <INXS Super Fund A/C> 1.83% D & G Liontos <Francis Alexandra S/F A/C> 1.70% Anneis Pty ltd <Avislad A/C> (Pending Non-Executive Director) 1.63% National Nominees Limited 1.63% D & G Amarakoon <Duro Super Fund> 1.59% BNP Paribas Nominees Pty Ltd <IB AU NOMS Retail Client DRP> 1.56% Dr GJ Dyson (Managing Director) 1.48% Mr DJ Cooper (Non-Executive Chairman) 1.45% Top 20 shareholders 43.3% Sondance Pty Ltd <Jolpet A/C> 1.21% % of register owned by Board & KMPs 3.82% Mr Mark Damon Kawecki 1.18% What is the future for Spectur? 16 Scope of opportunity Selected scope of immediate indicators in Australia STATUS QUO SCOPE OF OPPORTUNITY Beaches >200 devices installed 12,000 beaches Construction >250 customers 5,750 companies (20+ FTEs) Mobile towers >200 sites and growing 21,472 towers Military >4 DoD bases protected and hundreds 63 bases more DoD assets Councils >60 councils served 562 councils medium & large 17 Scope of opportunity Long term opportunity STATUS QUO Geography Customers o Major Australian / NZ capitals o o o o Government and Utilities Building and construction Institutional Resellers SCOPE OF OPPORTUNITY o Regional Australia and NZ o Rest of world o o o o o Mining and Energy Agriculture Defense Logistics AI and IoT partners Solutions o Security and surveillance o Safety, warning and comms o Maritime and environmental o Endless smart city applications o Integrated sensing and camera data management and action Platforms o Nascent o Power and Camera Platforms o AI Marketplace Strategy – Leverage the built foundation • • Sales Channels ANZ Market domination Drive for profitability Growth & Profit • Expand reseller push (45% growth in FY23) • • Market expansion Solution expansion • Platform • Online sales • Accelerate outbound sales, integrated with marketing • Drive integrated Spectur - 3CT solutions Markets • Outbound focus on Construction, Government, Utilities, Resellers • Consider additional sectors / geographies • Test Mining and AI Platform markets • Integrate 3CT cloud platform Product • Scalable, modular high margin hardware/software stack • ”ACT”- investigate edge robotics • Expand AI / sensing offerings • Build online portals • Drive down cost to serve and improve UX Operational Excellence • Improve GM% • Automation, systems and processes • Constrain overhead growth FY24 FY25 FY26 19 Summary Making communities safer, smarter and more sustainable Deep technology moat and proven product market fit. Metrics improving in Q1 and positioned for ongoing improvement in GM%, EBITDA, and cash performance Executing a profitable growth strategy, to target a large and growing market Questions From our Investor hub and elsewhere 21 Questions • • • • • • • • • • Are you going to have an in-person AGM? What is happening with resellers? Why did subscriptions go down? Why are staff costs up compared with last year? Is the business performance actually improving? Why is this quarter operating cash more than last quarter? One off and admin costs are so high – why? What is with the one-off costs? When will you stop burning cash? Are you relying on R&D return to get over the line next quarter? To ask your questions and get answers, visit https://investorhub.spectur.com.au/ Contact Us Investor enquiries Spectur Limited (ASX:SP3) Gerard D yso n MANAGING DIRECTOR investors@spectur.com.au