For personal use only Investor Presentation November 2016 1
For personal use only DISCLAIMER Statements and material contained in this Presentation, particularly those regarding possible or assumed future performance or potential growth of the Company, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law none of the Company, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault of 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 or reasonableness or any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Before making an investment decision, you should consider, with or without the assistance of a 2 financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances.
ASX:FZO For personal use only Innovative cyber safety platform provider Post TNT deal 1 to consumers, schools & telcos. Share price ~20c Targeting a fast growing and underserved market segment. Shares on issue 61,977,706 67,144,372 Founded in 2013 by four telco & technology executives. Performance shares 2 28,000,000 30,999,997 Raised $9.5m to date including $6m IPO in Options 3 18,474,709 24,474,709 July 2016 (3X oversubscribed). Market Cap (at 20c) $12,395,541 $13,428,874 Strong direct to consumer, partner and wholesale business models. Cash (at 30 Sep) $4.8m Live in AU and USA and in Philippines through wholesale with major telco PLDT. Recently acquired leading school cyber 1 Assume shareholders agree Sonar/MyNet acquisition tech Sonar & MyNet. Accelerates 2 Three performance based tranches. Refer IPO prospectus. commercialisation and provides immediate 3 Advisor, board and performance based employee options. access to 200,000 users in Australia/USA. 3
The Problem SEXTING | DIGITAL DEMENTIA | INFOMANIA | BULLYING | STALKING | GROOMING | SCREEN TIME For personal use only DIGITAL FOOTPRINT | PORN ADDICTION | GAMBLING ADDICTION | SEXUALISATION | IN-APP PURCHASES 45 % pre-teens using unsafe social media 4700 % increase in porn web-search after school 81 % teen girls feel pressured to share nudes 90 % boys under 16 have visited porn sites 60 % girls under 16 have visited porn sites 70 % teens believe cyber-bullying is endemic < 25 % teens get enough sleep 72 k boys in Australia with problem gambling 4
Fragmented Approaches For personal use only COMPLEX | EXPENSIVE | NARROW FEATURES | NOT-INTEGRATED | POOR SUPPORT Home School Carrier Enterprise 5
The Impact A HUGE AND UNTAPPED MARKET For personal use only Cyber Safety <50% parents try anything (most give up) <14 % kids mobile devices have any controls US$ 2Bn Sexting global parental control software market +10 % year on year growth ~2-4 % of the potential market captured today 6
The majors For personal use only can’t solve it! Limited reach | Free internet & privacy | Legacy business models 7
Our universal solution For personal use only SIMPLE | ONE POLICY EVERYWHERE | AFFORDABLE | VALUE ADDING | ADVANCED FEATURES Family Zone App Family Zone Client Family Zone Mobile Family Zone Box Family Zone FCL FZ Firewall Smartphones PCs & Macs Filtered Mobile Consumer & Consumer & School & Tablets Data Small Business Business Enterprise Family Zone Cloud Platform 8 An integrated ecosystem of cyber safety & security products serving parents, communities, enterprises and the providers of access.
Acquisition of Sonar MyNet Business Case For personal use only ✔ Cyber security solution for Education Integration creates a compelling solution: ✔ Owned by Tesserent (ASX:TNT) ✔ Full transparency at school & home ✔ Safe mobile devices on campus ✔ Global solution provider ✔ Low cost / parent pays models ✔ Harmonised policies + Cyber Expert ✔ Advanced tech (SSL decryption and more) ✔ 180 installs live in AU ✔ 47 going live in USA Family Zone consumer Family Zone Cyber Experts offerings part of school consumer services build programmes on the ✔ Circa 200,000 kids online & growing security offering recommended to parents Family Zone platform Established global distribution ✔ Digital citizen/welfare functions Engagement of Rob Smyth & Nick Conolly ✔ Includes tech on FZO roadmap Immediate revenue: +$850k/a & growing ✔ Schools “influencer” not valued $1m @ 30c placement to Rob Smyth
Our products Consumer Education Enterprise For personal use only Family subscriptions License fees per server Subscriptions per user Integrated consumer tech Cyber Expert subscriptions Services - high margin Services ~ $100pa Services ~ 100% margins Cost recovery on hardware Services ~ 90% margins Family Zone Box ($89) 10
Our products For personal use only Consumer, Direct Consumer, Wholesale 11
Our products For personal use only Education Enterprise 12
Points of Difference For personal use only TRUSTED | RESPONSIVE | STICKY | SIMPLE Strong Simple (In Access Points) (Cloud controlled) Distribution Affordable (Access Partners) (Designed for scale) Advanced Eco-System (All Features) (Designed to adopt) Embedded inside schools & communities 13
Channels Direct to Consumer Carriers Distributors For personal use only ✔ Wholesale co-branded ✔ Retail bundled offers ✔ Targeting T1 carriers in SEA ~ 400m subscribers ✔ Developed world targets AUS & USA MVNOs Regional ISPs in USA Access providers Enterprise security Telco carrier SME ✔ Direct & inbound ✔ Affiliates ✔ Schools ✔ Cyber Experts ✔ Retail partners 14
Scenarios For personal use only Service revenue at take-up scenarios School scenarios 10% 20% 30% Addressable Markets 227 schools 227k families $2.8m $5.5m $8.2m Families Schools 300 schools 300k families $3.7m $7.3m $10.9m 5.5m 10k 400 schools 400k families $4.9m $9.7m $14.5m 100m 100k Philippines scenarios 1% 2% 5% PLDT Fixed 2.4m target homes $0.8m $1.6m $4.0m 45m 75k Smart Mobile 12m target kids $1.8m $3.6m $8.9m Philippines 147m 170k Indonesia The numbers described above are based on the assumptions stated in the table. These are not a forecast of FZO’s future revenue. Revenue assumptions: School families: AU$120/yr per Zone; Philippines: AU$1.1/m per Service; 2.5 services per Fixed Zone. 15
Progress Consumer Partners For personal use only Registered Devices ✔ Launched Aus Jul 2016 ✔ National radio Nov 2016 ✔ Soft live USA Dec 2016 ✔ 12 Cyber Experts ✔ Computer Troubleshooters ✔ School ICT providers ✔ School booklists ✔ MVNO discussions Education ✔ 180 school installations in AU ✔ 47 school installations in USA ✔ Access to +200,000 parents ✔ Tesserent global reseller 16
Progress Carrier Wholesale For personal use only ✔ Launching with PLDT Nov 16 ✔ Active discussions in SEA ✔ Supported by Fidelio Enterprise ✔ Late stage discussions with major carriers 17
The Team Experienced Global Telecom, Technology & Sales Executives For personal use only Consulting | Software | Education | Start-up | Retail Distribution Tim Levy Crispin Swan John Sims Phil Warren Managing Director Executive Director Non Exec Chairman Non Exec Director Rob Smyth VP Sales 18
Summary For personal use only Strategy Positioned for acceleration ✔ Massive, global, growing & untapped market ✔ Generating revenue in AU, USA & Philippines ✔ Consumer model -> momentum ✔ Wholesale contract with a major T1 telco ✔ School model -> leverage In discussions with many others ✔ Carrier model -> acceleration ✔ Cyber experts -> trust ✔ Embedded in 230 schools ~ 200k families Leverage for consumer sales Q1 17 Team Expanding school footprint via resellers ✔ Sales distribution & VP in place ✔ Relevant experience & personally invested ✔ AcquireBPO contact centre live Value Adds Globally scalable ✔ Content, big data & trade sale ✔ Broadest cyber solution in any market 19
Recommend
More recommend
