ASX: SW1 FY20 Results August 31, 2020 Pippa Leary, CEO Geoff Greenberg, CFO
SWIFT MEDIA TRANSITIONING TO A STRONGER FUTURE ▪ CEO Messages ▪ What is Swift? Swift is a specialist media company delivering a high proportion of recurring subscription revenue in Mining and ▪ FY20 Update Resources, Aged Care and Health and Wellbeing, complemented further by additional ▪ Strategic Progress advertising revenues from the Health and Wellbeing ▪ Financials screens. ▪ Growth Strategies ▪ Summary and Outlook 1
CEO MESSAGES FY20 was a transformational year focused on the fundamental strengthening of people, processes and product to transition to growth in FY21 and beyond. Good progress has been made in: • Upgrading the skills on the board and leadership team – several senior new management additions and board • Streamlining out of non-core verticals – 3 down from 11, outsourced national sales in Health and Wellbeing • Strengthening the core – new fit for purpose product built in Aged Care, improved sales process and capabilities implemented • Strengthening the financial base – improve balance sheet, convertible loans retired, reduced cost base • FY20 revenue up +9%, includes full impact of loss making Medical Media business (remediation complete), organic EBITDA improved FY21 will continue to be a transition year. Swift is committed to delivering against a clear strategy focused on building a more agile and profitable business: • Continue to upgrade sales, processes and capabilities – focus on building and converting sales pipeline • Capitalise on the capex boom in Mining and Resources, deliver $3.2m in new project revenue, maintain high renewal rate and strengthen our suite of products and services • While COVID-19 has slowed our rollout plans, installation of 800 rooms across 5 facilities is promising. Plans to capitalise on increased need for communication solutions to address isolation and compliance requirements coming out of COVID-19 and Aged Care Royal Commission. • Evaluating strategic options in Health and Wellbeing • Continue to look at initiatives to strengthen the balance sheet 2
SWIFT MEDIA Swift is a specialist media company that provides entertainment and communication solutions to connect and engage communities in: MINING & RESOURCES HEALTH & WELLBEING AGED CARE Australia’s leading DOOH health & wellbeing network in Delivering secure closed networks with Making life better by helping residents and their customised communications and content. contextually relevant, captive audience environments. carers engage, communicate and belong. • Digital Out of Home advertising • • Design and construction of networking Time saving, facility managed infrastructure in remote locations communications, noticeboard and live • Standards' compliant communication tool streaming system delivered via TV • • Site managed communications system Health & Wellbeing content designed to • delivered via TV and smart device Aged Care specific relaxation and exercise inform, educate and entertain patients at applications content to improve quality of life, reduce the point of care isolation and support dementia sufferers • Movies, TV on Demand, Sport (Foxtel • Following strategic review, the Health & • partnership) In-room access to premium entertainment Wellbeing network has been significantly curated specifically for Aged Care restructured to reduced costs • Indigenous, mental health and wellbeing • • content Family mobile application to stay connected Partnership with XTD to drive national with loved ones advertising growth • Remote and onsite technical support 3
FY20 PERFORMANCE REVIEW Encouraging results despite a difficult Q4 due to COVID $23.1 m $3.9 m $21.2 m UP UP UP UP UP UP $19.2 m $3.3 m $17.9 m Consolidated Co 9% 9% Re Recurring 7% 7% 18% 18% Re Revenue Re Revenue Project Re Revenue FY19 FY20 FY19 FY20 FY19 FY20 $327 DOWN UP UP DO DOWN WN $13.6 m $13.5 m $290 -8% Mining & -1% -1 Re Revenue 13% 13% EBITDA Re Resources Re Revenue Per Ro Room -$1.2 m -$1.3 m FY19 FY20 FY19 FY20 FY19 FY20 41.3% 40.9% 61,900 $2.1 m UP UP 58,600 DOWN UP UP $1.9 m Residential Ag Re Aged 11% 11% -5 -5% 1% 1% Care Re Ca Revenue Ro Rooms Gross Profit FY19 FY20 FY19 FY20 FY19 FY20 4
FY2020 STRATEGIC IMPROVEMENTS 2020 has been as a transformational year as we rebuild Swift. We are enhancing product, making growth investments, upgrading skillsets and positioning the business for long term sustainable growth. We have made good progress despite COVID challenges: Upgrading the skills on the Streamlining Swift Strengthening the Core Strengthening the board and leadership team financial base ✓ ✓ ✓ New Board Director: Peter ✓ Discontinued loss making Focused team on 3 core Successfully completed Gibbons in Perth (Mining verticals $5.2m in capital raising product lines e.g. Lumiair and Resources and Aged ✓ ✓ ✓ Refocused Health and Realigned sales team Secured refinance with Care sectors) Wellbeing to local and building a pipeline in Pure Asset ✓ New Board Director: Kathy advertising, outsourced Mining and Resources Management for $8m Ostin (ex KPMG Aged national sales for patient ✓ ✓ Built product capabilities Significant cost savings Care Practice) and practitioner facing and new “fit for purpose” achieved from two screens ✓ New Chief Financial products in Aged Care restructures ✓ Officer, Geoff Greenberg Continuing to license ✓ Paid off convertible debt content in Hospitality ✓ New Chief Customer and ✓ JobKeeper support Strategy Officer and new through COVID Chief Sales Officer 5
FUNDAMENTAL OPERATIONAL REBUILD Transforming Swift from an opportunistic business to a focused, competitive strategy driven business . NEW SWIFT OLD SWIFT • 11 verticals including maritime, hospitals, esports, student accommodation, overseas hospitality • 3 verticals that have the ability to be scalable and profitable One Team Focussed • Loss of focus in core of Mining and Resources and Lack of Focus • One team with deep knowledge of multiple verticals limited knowledge in other verticals on 3 Core Verticals • Acquired businesses not integrated and team spread thin • • Acquisition of loss making MM business (-$800k/mth) Clear strategy to turn around business and grow in core Clear Strategy and based on a flawed strategy (advertising on Swift verticals Opportunistic Strategic Decision • screens) Closed unprofitable verticals and non-revenue generating Decision Making • Making Expensive legacy leases and content agreements contracts • • Unrealistic commercial agreements Business transformation delayed by COVID • New product development function based on customer input • No product capabilities – reactive development, Customer Focussed Lack of Core • Upgrading sales capabilities and processes products not fit for purpose, lagging competitors Product and Sales • Rebuilding sales pipeline and relationships in market – 18 Capabilities • Lack of sales capabilities – no forecasting skills, Teams month sales cycle opportunistic sales at low margin, no partner/reseller strategy, unrealistic pipeline • Values based empowered culture • People processes – values, KPIs, job descriptions, performance • Authoritative culture Empowered Culture Lack of Internal • reviews People and Culture systems and processes missing and Improved Systems and • Automated data reporting – finished Netsuite project, resolving • Manual reporting and lack of financial visibility Processes Processes data integrity issues • Improving financial visibility and systems Account • No account management function • Account management function Dissatisfied Management, • Dissatisfied customers in all verticals outside • Focus on retention and make-goods for unhappy customers Customers Proactive Support Mining & Resources • Building fit for purpose products to better meet needs • and Training Support functions stretched to breaking as a result 6
FY20 PROGRESS BY VERTICAL MINING & RESOURCES HEALTH & WELLBEING HOSPITALITY & OTHER AGED CARE ✓ Developed new Swift Plus ✓ Renewed $3.4m in contracted ✓ Hibernation through COVID and ✓ Hibernation through COVID establishment of new profitable product from idea to launch in 5 revenue ✓ Negotiated reduced content months local sales model ✓ Won 5 jobs in Q4 worth $3.2m rates during COVID ✓ Installed Swift Plus in 800 ✓ Implemented CRM to enable including Rio Tinto Western ✓ $300k in cost savings by exiting rooms across 5 providers during Turner, Atlas Iron Ltd Corunna increased local sales retention underutilised content suppliers COVID including Adventist Downs, Mineral Resources Ltd ✓ Moved content Care, Applewood and Rivervue ✓ Offered clients relief on their ✓ Installed COVID quarantine production inhouse and ✓ Established an Account accounts for three months to camp outsourced ad production retain them management function ✓ Adapted Swift Plus for mobile, ✓ XTD partnership for national ✓ My Family My Community app road and rail camps advertising sales evolution - video, photo and text ✓ Inside Practice partnership for ✓ Refocused delivery team messaging to families without winning $1m+ in variations sales of Connect Network requiring onsite installation ✓ Assessing strategic options ✓ Developed Aged Care brand following inbound interest 7
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