2014 Full year results Anthony Sethill, CEO Jonathan Apps, CFO

Transcription

1 2014 Full year results Anthony Sethill, CEO Jonathan Apps, CFO April, 2015

2 Contents 1. Overview 2. Healthcare 3. Digital Audio 4. Financials 5. Summary 1

3 Wireless technology - medical devices and digital audio Sensium Healthcare: pioneer in patient monitoring Frontier Silicon - innovator in connected audio - #1 in chips / modules for digital radio Wireless Healthcare Connected audio Digital radio Full year Group revenues: 26.2m (up 19.5%) 2

4 Highlights (FY 2014) Financials Group revenues: 26.2m (2013: 21.9m) up 19.5% EBITDA loss: 9.8m (2013: loss 9.4m) Cash: 12.5m (31 Dec 2014) Healthcare SensiumVitals evaluated / trialled in 16 hospitals in seven territories (US, UK, France, Germany, Italy, Portugal and Australia) 1 System robustness and user interface enhancements completed March 2015 US distribution rights regained March 2015 Digital Audio Connected audio and digital radio revenues up 15.1% and 17.0% respectively driven by market growth and new design wins Next generation digital radio chip shipped end of 2014 Connected audio next generation chip to ship by year end (1) As of 31 March

5 Contents 1. Overview 2. Healthcare 3. Digital Audio 4. Financials 5. Summary 4

6 SensiumVitals first went live in hospitals in May 2014 First deployments: - Spire Healthcare, UK - Hurley Medical Center, US Well received, but enhancements required to: - improve system stability - enhance user interface 5

7 System enhancements completed March 2015 System stability - complex RF environments causing interference to bridge (bug fixes required) - patches now connect to system more quickly and reliably Connecting patches to system Patch Bridge Hospital IT More intuitive user interface SensiumVitals screenshot - vital signs readings and trend data - alerts / notifications for clinicians 6

8 SensiumVitals has been trialled in 16 hospitals 1 Paid-for trials Pipeline (200+) Evaluations 2 (12) Integrated Trials 2 (4) Conversions (0) Qualified leads - confirmed interest Test deployment - not integrated with hospital IT Test deployment - integrated with hospital IT Hospitals converting to long term contracts 90% of customer meetings lead to confirmed interest 12 evaluations started Q1 15 (Europe & RoW) Three trials Q2/Q3 14 (two in UK, one in US) Q1 15 one trial in Australia Apr 15 four further trials: QE Birmingham (NHS), and Saudi Arabia (3) Aim to convert hospitals in trial phase (1) As of 31 March (2) Some hospitals start with evaluations before moving to integrated trials; some move straight to integrated trial once at trial stage, only minimal technology work is required to move to conversion 7

9 North American distribution rights North America 2015 North America 2014 US large but complex market Sensium s partner made limited progress in US By terminating, we regain control of our destiny in key territory Establishing small, focused, business development team Alesia Jackson appointed VP, Business Development, USA Priorities: - key accounts (potential to be reference sites) - develop strategic options for region 8

10 Priorities for 2015 and beyond Commercial Establish SensiumVitals in key accounts in Europe, Middle East, Australia and US reference sites and long term customers Health Economics Evidence to demonstrate economic benefits of SensiumVitals Targeting UK study by end 2015 Product development Additional system functionality: ECG and accelerometer Paediatrics (system currently approved for adults) this year Extra vital signs (blood pressure, blood oxygenation) Longer term Move into adjacent markets, e.g. care homes, in-home monitoring 9

11 Contents 1. Overview 2. Healthcare 3. Digital Audio 4. Financials 5. Summary 10

12 Wi-Fi connected audio is taking off Wi-Fi connected audio volumes 1, millions Speakers Soundbars AVR Other Growth driven by - activities of Amazon, Apple and Google ( content ecosystems ) - awareness of wireless audio - falling costs of Wi-Fi technology, Key sectors: wireless speakers and soundbars (1) Source: Futuresource (2014), Frontier Silicon analysis; Other includes speaker docks & integrated audio systems 11

13 Frontier offers manufacturers end-to-end solutions Frontier integrated solutions Technology Content ecosystems Device manufacturers + Multi-room Interoperable App control e.g. Bang & Olufsen, Bowers & Wilkins, Harman Kardon, Philips, Pure Frontier provides manufacturers with one stop shop solutions offering world class audio technologies with integrated access to content streaming services 12

14 Frontier s current solutions are performing well Recent design wins for Venice 6.5 Starting from Internet Radio, expanded in wireless speakers - relationship with Spotify - multi-room functionality Significant designs from Philips and Bowers & Wilkins with ten others now using Frontier s multi-room app Strong growth expected in

15 Next generation chip to launch end 2015 New high powered chip sampling now on course to launch end 2015 Offering improved Wi-Fi performance / additional functionality, e.g. - hi-res audio - multi-channel audio (e.g. 5.1) - access to additional content ecosystems Significant step towards wireless streaming audio speakers replacing standard home audio system Frontier well positioned to be major player Significant revenues from

16 DAB market volumes are increasing dramatically DAB/DAB+ volumes, millions Growth driven by: DSO in Norway (2017), Switzerland ( ) UK DSO decision possibly in 2017 transmitter roll-out under way 12 new national services in strong German commitment to DAB emergence of new territories e.g. Italy, France, Poland (1) Consumer and automotive aftermarket receivers 15

17 Chorus 4: core platform for next three to five years Chorus 4 four chips in one ROM First shipments end of 2014 RF Baseband & apps processor Audio DAC All new Sony models will incorporate Chorus 4 50% power saving enhanced performance and functionality lower cost / higher margins Expect to sell over 20 million units in next three years 16

18 Frontier Silicon priorities for 2015 and beyond Current connected audio Continue to enhance software for new functionality Drive sales with additional design wins Next gen connected audio Complete development of next generation chip end of 2015 Secure further design wins to accelerate revenue growth in 2016 Digital radio Use Chorus4 to drive revenues, improve margins and retain share Investment phase completed aim to optimise profitability 17

19 Contents 1. Overview 2. Healthcare 3. Digital Audio 4. Financials 5. Summary 18

20 2014 Income statement m m Revenue Cost of Sales (14.8) (12.2) Gross margin Research & development costs (11.8) (9.1) Sales & administrative costs (9.4) (10.0) EBITDA (9.8) (9.4) Depreciation and amortisation (2.9) (3.0) Other non trading costs Loss for the period (12.2) (10.8) Unit volumes shipped (m) Unit volumes and revenues significantly higher than full year 2014 volumes expected to reach 4.3m R&D costs unchanged project focus on Chorus 4 (Digital Radio) and Danube (Connected Audio) - Chorus 4 taped out August 14 - Danube taped out December 14 Sales and administrative costs increased due to investment in Healthcare sales & support headcount and forex losses Other non-trading costs relate primarily to R&D tax credits and foreign exchange gains offset by noncash share-based payments 19

21 Cash flow statement m 31 Dec Dec 13 Loss before tax (13.5) (13.3) Amortisation & depreciation Impairment Share based payments Net movement in working capital balances Other Tangible & Intangible fixed asset additions (2.3) (2.9) Proceeds of share issues Cash position ahead of expectations Targeting cash flow break-even in 1H 2016 six months later than previously planned, following - slippage in timing of healthcare deployments - upgrade in specification of connected audio chip (longer development times) Net change in cash (9.0) 6.3 Cash at end of year

22 Segmental information m Healthcare Digital Audio Group Total Revenue Cost of Sales (0.4) (14.4) - (14.8) Gross profit Research & development (1.8) (10.0) - (11.8) Sales, admin & other expenses (1.9) (7.0) (0.5) (9.4) Total overheads (3.7) (17.0) (0.5) (21.3) EBITDA (3.4) (5.9) (0.5) (9.8) Healthcare Expected to start gaining hospital conversions in 2015 Digital Audio Digital radio - nearing completion of investment phase - will start generating cash flows to support other business lines Connected audio - still in investment phase - existing products selling well. 21

23 Balance sheet m 31 Dec Dec 13 Non-current assets Goodwill Other intangible assets Property, plant and equipment Current assets Inventory Tax receivable Trade and other receivables Cash and cash equivalents Total assets Cash at year-end was 12.5m Current liabilities Trade and other payables Equity Share capital Contingent consideration Share premium Share based payment reserve Foreign exchange (0.1) (0.1) Retained earnings (74.9) (62.7) Total equity and liabilities

24 Contents 1. Overview 2. Healthcare 3. Digital Audio 4. Financials 5. Summary 23

25 Performance against 2014 objectives Healthcare Connected Audio Objectives for 2014 Create effective global sales & marketing platform Enhance functionality Extend content streaming partnerships New chip in mid 2015 How we did Platform established, but revenues delayed as system enhancements were required North American rights regained revenues delayed, but strengthens our strategic position System robustness and enhanced UI completed Positive engagements with content ecosystems New chip six months later than original plan due to upgrade in specification for major new ecosystem initiative Digital Radio Drive growth of DAB / DAB+ market Complete 4 th generation chip Market growth accelerated in 2014 and Frontier increased market share 4 th generation chip commenced shipping Dec 14 24

26 Strategic and financial objectives Strategic goals - Establish SensiumVitals as global leader in vital signs monitoring - Connected Audio: establish Frontier as a leading silicon and software provider - Digital Radio: maximise profit Financial objectives - Sustained positive cash-flows in H Significant revenue growth over next three years 25

27 Thank You Contact: (CEO) (CFO)