Presentation to Market Eye 7 November 2018 Technology Conference 1 - PowerPoint PPT Presentation

NetComm Wireless Limited Ken Sheridan – CEO and Managing Director Presentation to Market Eye 7 November 2018 Technology Conference 1

WHO IS NETCOMM? 250 3 3 employees R&D centres Regions Since 1982 2

NETCOMM’S YEARS OF EXPERIENCE 3

THE NETCOMM STORY 4

ATTRACTIVE MARKET FUNDAMENTALS The Telecommunications Sector is BIG Telecom Equipment Market (Billion USD) $562B 600 BIG CAGR 10% 500 400 Billion (USD) 300 STABLE 200 100 GROWING 0 2016 2017 2018 2019 2020 2021 2022 2023 Source: Market Research Future 5

WHY NETCOMM? Our Passion Everyone’s Connected Life Matters The world will never stop being connected. As technology evolves, the opportunity to connect everyone’s life only becomes greater . 6

FTTH IS THE PREFERRED OPTION BUT TIME CONSUMING AND EXPENSIVE TO ROLL OUT Customer Objections Location inaccessible Long Distances Civil Works 7

WHAT NETCOMM DELIVERS Products that connect everyone’s life FIXED WIRELESS FTTdp INDUSTRIAL IoT FIXED BROADBAND Connect even more remote users Connect even more FTTC subscribers Connect even more machines Connections in homes that really work • • • • Go beyond the easy connections Millions of homes are passed with Connect machines and increase Improve in-house connectivity fibre, but not all of them can be revenue by expanding your market • • Broadband is a commodity and 100% Better Wi-Fi experience all connected to the fibre network potential coverage required by governments throughout the house • • Connect homes to the FTTH Improve your business services • • Offer an alternative to traditional Connect even the outer corners of network, using a DPU with G.fast to offering Fixed Broadband service with your home to high speed Broadband allow fiber like speeds reduced cost and time 8

CUSTOMER STRATEGY – NARROW AND DEEP Target – Double digit number of customers PAST NOW FUTURE NETCOMM COMPETITORS LISTEN. INNOVATE. SOLVE. BUILD AND THEY WILL COME Product 1 New Products Product Product 2 Transactional Deep customer engagement • • Legacy industry methodology Solving customer problems, exactly • • Standard product Nimble approach • • Doesn’t solve all problems Allows more connections • • Not everyone ends up being connected Enabling narrow and deep strategy Product 3 GENERAL, STANDARD SOLUTION UNIQUE, NOVEL SOLUTION 9

WHERE WILL NETCOMM BE IN 3 YEARS? COMMUNICATE EXPAND GLOBALLY CUSTOMERS NEXT BIG THING Respected global voice 3 Continents 10 International Customers Global leader in 5G FW • • • • Timely and informative Target: USA/Canada, UK/Europe Broaden customer base Early to market with “commercial” communication to all stakeholders and Australia/New Zealand Fixed Wireless 5G solutions • Target: At least 10 x Tier 1 • • • Worldwide marketing presence Sales and engineering presence customers by 2022 Recognized as top 5G FWA active for each customer account CPE vendor • • Acknowledged for global thought- “Narrow and deep”, with multiple leadership products sold to a customer Status to Date: Status to Date: Status to Date: Status to Date: • • • • New Director of Marketing and Active sales in Australia/NZ and 3 key Tier 1 customers signed up Ongoing discussions with multiple Communications appointed USA/Canada and Sales team Tier 1 operators globally • 2 existing customers committed established in UK • • Strategic focus being placed on to second generation or new Accelerated investment in R&D • international marketing and R&D centers in Australia and USA products • Leveraging > 10 years’ of experience communication • 4 field/lab trials with new customers in fixed wireless 10

INVESTING IN 5G – THE TIME IS NOW!! Fixed Wireless – The First use case for 5G 5G at the core of all future applications • • Viable alternative for traditional Fixed Broadband technologies Security concerns with Chinese vendors globally • • Total Addressable market of more than US$12 billion Chinese vendors already banned from Australia and USA • • Key markets : North America and Western Europe NetComm ideally placed to fill the gap as western vendor 5G-Based FWA CPE Unit Shipment Revenue by Region: 2019-2030 (US$ Billion) >$12B 14 12 10 Billion USD 8 6 4 2 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Asia Pacific Eastern Europe Latin & Central America Middle East & Africa North America Western Europe Source: SNS Research Source: ABC News August 23, 2018 11

RECORD FULL-YEAR RESULTS 12

LONG TERM STRATEGY DELIVERING RECORD FULL-YEAR RESULTS RECORD REVENUE RECORD EBITDA $ 181.7 m $ 20.5 m 5.7 69% times RECORD NET PROFIT AFTER TAX $ 8.0 m Turnaround GROUP REVENUE from $1.8m loss 86 % From our high growth business OPERATING CASH FLOW $ 23.7 m 2.9 times GROSS MARGIN STRONG BALANCE SHEET 2.8% 37.2 % from 34.4% $ 27.3 m Cash & no debt 13

IN SUMMARY… Strong FY18 delivers on promised step change in operations and results  Strong growth across Revenue, Margin, EBITDA and Net Profit  Operating cashflow underpins ungeared balance sheet with $27.3m cash NEXT BIG THING  Multiple opportunities with global CUSTOMERS Global leader Tier 1 telcos in pipeline at various in 5G FW EXPAND GLOBALLY 10 International stages of progress Customers COMMUNICATE 3 Continents  Investment into 5G to underpin Respected global voice accelerated growth in the medium term  Consolidates rebased position, and prepares the company for its next step change in FY20 IN THE NEXT 3 YEARS 14

QUESTIONS? 15

DISCLAIMER Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect NetComm Wireless Limited current intentions, plans, expectations, assumptions and beliefs about future events Listen. Innovate. Solve. and are subject to risks, uncertainties and other factors, many of which are outside the control of NetComm Wireless Limited. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Because actual results could differ materially from NetComm Wireless Limited current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained herein with caution. 16