A global leader in voice technology solutions that bring Android, Wi-Fi and VoIP together. April 2016 Apivio Systems Inc. (APV.V)
Dis isclaim imer THIS PRESENTATION HAS BEEN PREPARED BY APIVIO SYSTEMS INC. (THE “COMPANY”) SOLELY AS AN INTRODUCTION TO THE COMPANY AND ITS TECHNOLOGY. This Presentation is the sole responsibility of the Company. Information contained herein does not purport to be complete and is subject to certain qualifications and assumptions and should not be relied upon for the purposes of making an investment in the securities or entering into any transaction. The information and opinions contained in the Presentation are provided as at the date of this Presentation and are subject to change without notice and, in furnishing the Presentation, the Company does not undertake or agree to any obligation to provide recipients with access to any additional information or to update or correct the Presentation. No stock exchange, securities commission or similar regulatory authority has passed on the merits of any securities referred to in the Presentation, nor has it passed on or reviewed the Presentation. The Company is developing a new and unproven technology. It is subject to a large number of very significant challenges including the risk that no viable product will ever be developed and even if one is developed there is the risk that no market will exist for it. The Company is competing against companies with much greater resources and the Company’s continued existence is dependent on its ability to secure additional financing. The Presentation may contain “forward looking information” within the meaning of applicable Canadian Securities legislation concerning, among other things, the size of the market for potential applications of the Company’s technology and the timing of further technical development of the Company’s projects. There can be no assurance that the plans, intentions or expectations upon which these forward looking statements and information are based will occur. “Forward looking statements” and “forward looking information” are subject to a variety of risks, uncertainties and assumptions, including those discussed in the annual Management Discussion and Analysis and under “Risk Factors” in the Company’s public filings at www.sedar.com. Some of the factors which could affect future results and could cause results to differ materially from those expressed in the forward looking statements and information contained herein include: Risk of technological non-feasibility, obsolescence and inadequate economics, dependence on key personnel and key relationships with the Company’s technology licensor. Forward-looking statements and information are based on the beliefs, estimates and opinions of management at the date the statements are made and are subject to change without notice. The Company does not undertake to update forward-looking statements or information if management believes estimates or opinions or other circumstances should change. The Company also cautions potential investors that investments in new technology are inherently risky. cc 2
Our Vis ision on the Evolu lution of the Office Phone Office phones will become “smart” as happened with cell phones In the future, all enterprise phones will be smart desk phones 3
NEC Rela lationship Exp xpands Apiv ivio Horiz izons Monet Series UT880: Highlighting Apivio as an Innovative Company • Entrenched platform for high-margin, recurring revenue Android apps • Collaborating with NEC to develop more apps 4
Lucrativ ive Rela lationship wit ith NEC Fueli ling Growth Monet Series UT880 • NEC is the exclusive distributor • 10,000 UT880 phones shipped to NEC North America in 2015 • Received follow-on PO from NEC in March 2016 • NEC is introducing the UT880 globally (beyond North America) • The UT880 will be certified to work on third party PBX’s to reach a broader market 5
Monet Serie ies UT880: Sold Through NEC • NEC is the third largest enterprise telephony vendor globally • Sells more than 1.5 million phones annually Cisco Others 15% 31% Avaya 12% NEC Digium 3% 10% Huawei 4% Unify Aastra Technologies 6% 4% Alcatel-Lucent Mitel Microsoft 6% 4% 5% *Nokia is undergoing an acquisition of Alcatel-Lucent *Mitel Acquired Aastra in November, 2013 6
Appli lications for Vertical Markets Voice / Video Recording Security SIP Clients RFID Security Media Interface (motion) Cordless Smoke Detectors Wi-Fi 7
Android Apps: Recurrin ing Revenue Busin iness 8
Dext xter Se Serie ries Phones: : St Stable le, Growin ing, g, Defensib ible le Busin iness Dexter VoIP Phones • More than 5 million phones sold • Barrier to entry due to software customization • 25%+ CAGR over last three years 9
Demonstrated Revenue and EBIT ITDA Growth 10
EBIT ITDA Posit itiv ive for Last Seven Quarters 11
Stronger Bala lance Sheet Stronger cash position after 7 quarters of positive EBITDA and financing in March 2015 Debt is flat despite increase in sales. 12
Stronger Bala lance Sheet Significant improvement in networking capital over the last two years 13
Superior Result lts from Korean Subsidiary Moimstone Korea (000’s) 2015 2014 Revenue 59,694 46,415 EBITDA 2,814 1,643 Add back: Head Office Management Fees 622 671 R&D for North American Products 2,111 1,003 Adjusted EBITDA 5,548 3,316 Adjusted EBITDA % 9.3% 7.1% • The Korean Subsidiary (“MK”) sells to Korean Tier -1 telephone carriers • Korean business producing YoY revenue and EBITDA growth • High barrier to entry due to customization done for Korean customers • MK funds R&D on new products for Korean and North American markets 14
Wi Wi-Fi Phone: Dis isrupts Dect & ATA Products More than 100k sold in Korea 15
Investment Hig In ighli lights Market Capitalization C$M 2015 2014 2013 (in C$ millions, except per share) Share Price (March 31, 2016) $0.40 Revenue $60 $46.6 $35 Basic Shares Outstanding Adj. EBITDA $2.1 $1.4 ($0.1) 52.8 Market Capitalization $21.1 Cash $5.5 $1.8 $3.0 Debt (as on Dec 31, 2016) ($6.8) Debt $6.8 $7.5 $6.7 $5.5 Cash Options proceeds APV stock valuation… $0 Enterprise Value $22.4 Korean legacy business ~4x EV/EBITDA alone Entire company ~0.4x EV/Sales Ticker: TSXV:APV 80 Employees in Canada and South Korea 52 Week Hi/Low C$0.28/C$0.65 Rob Bakshi CEO Insiders Own 21% David Pais CFO 2015 Revenue/Employee $750K 16
Exp xperienced Management Team Key Management • Serial technology entrepreneur that has built and sold businesses Rob Bakshi • Founder and former CEO of Silent Witness Enterprises President & CEO • CFO at 3 successful companies over the last eleven years. David Pais • Most recently, CFO of a BC based manufacturing company that was sold to a Boston based NYSE CFO listed US Public company for $60M • Senior Vice President at Ernst & Young Corporate Finance, specializing in M&A and financing • 8 years at Moimstone Korea, initially as head of Sales promoted to COO and then to CEO, Korea J. Y. Ahn • Experience working in Sales, Management and Logistics in several tech companies in Korea CEO, Moimstone Korea • Electrical Engineer from Hanyang University, International Business Professional course from Kotra • 19 years at leading electronics companies including Dasan Networks, Dain Telecom, nSYSTech and S. H. Shin Hanwha working on Switching systems, Semiconductors, VoIP & Wi-Fi and DSL solutions CTO, Moimstone Korea • 5 years of experience at Moimstone. • Bachelors Degree in Electronics and Computer Engineering from Korea University • 20 years of experience with finance and accounting at Dansung Electron, Vodus and Kolon J. S. Kang International CFO, Moimstone Korea • 7 years running the Moimstone Korea Finance department • Passed the US CPA Examination, degree in Business Administration from Konkuk University • 7 years of experience managing major sales accounts and International Sales for Moimstone Korea Chang Il An • Headed Sales and Sales Engineering positions in Wareplus Co. and Wellink Co. Executive Director - Sales • Degree in Information and Communications from Dong Seoul College 17
Catalysts for Growth • Global NEC deployment • High margin, recurring app revenue will improve business model and earnings profile • Extend channel to include non-NEC dealers, service providers and phone companies 18
In In Conclu lusion Disrupting the VoIP phone market with a smart Android deskphone Global exclusive partnership with NEC Named as Top 10 VoIP solution provider by Enterprise Telephony Magazine Korean business generated $55M in revenue in ‘ 15, EBITDA positive and funds R&D for new products Low Valuation: ~4x EV/EBITDA of Korean biz or 0.4x revenue 2016 TSX Venture 50 Company 19
Questions? • Rob Bakshi, CEO • David Pais, CFO • Sean Peasgood, IR T: 604-761-2100 T: 604-340-9866 T: 416-565-2805 rbakshi@apivio.com dpais@apivio.com Sean@SophicCapital.com 20
Recommend
More recommend
