Investor Presentation - November 2019 - AI video analytics for large scale surveillance networks providing 'real-time' critical event detection ...
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Investor Presentation AI video analytics for large scale surveillance networks providing ‘real-time’ critical event detection. November 2019
Regulatory and Legal
iCetana Pty Ltd ACN 140 449 725 (the Company) is the issuer of this presentation. The issue of this presentation is intended only for the person or entity to which it has been transmitted.
Not a disclosure document: This presentation is not a disclosure document for the purposes of Chapter 6D of the Corporations Act 2001 (Cth) (Corporations Act) and does not purport to include the information required of such
a disclosure document. It has not been lodged with or approved by any regulatory authority, such as the Australian Securities and Investments Commission (ASIC) or the Australian Securities Exchange (ASX).
The purpose of this presentation is to provide the recipients with summary information so they can consider participating in IPO to be undertaken by the Company.
Confidentiality: The presentation is provided on a strictly confidential basis and is not to be published. It is not intended for, and must not be distributed to, any person other than as transmitted by or on behalf of the Company.
Any disclosure to the advisers of the recipients must be on a confidential basis, for the purpose only of assessing the presentation as adviser to the recipients. The information contained in this presentation or subsequently
provided to the recipients whether orally, electronically or in writing by or on behalf of the Company or its employees, agents, advisers and consultants is provided on the terms and conditions of this disclaimer.
Forward-looking statements: This presentation contains forward-looking statements. Those forward-looking statements reflect views held only as at the date of this presentation. Any such statement is subject to inherent risks
and uncertainties. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement, and such deviations are both normal and to be expected. Recipients must make
their own assessment about the likelihood of a matter, about which a forward looking statement is made, occurring. The Company makes no representation about the likelihood of a matter, about which a forward-looking
statement is made, occurring. The Company and its directors, employees, agents, advisers and consultants: give no representation or warranty to a recipient of this presentation as to the accuracy or completeness of the
statements contained in this presentation or in relation to any other matter; and to the fullest extent permitted by law, disclaim responsibility for and have no liability to a recipient of this presentation for any error or omission
in or for any statement in this presentation.
Reliance on presentation: A recipient of this presentation must make their own assessment of the matters contained herein and rely on their own investigations and judgment in making an investment in the Company. This
presentation does not purport to contain all of the information a recipient of this presentation requires to make an informed decision whether to invest in the Company. Specifically, this presentation does not purport to contain
all the information that investors and their professional advisers would reasonably require to make an informed assessment of the Company’s assets and liabilities, financial position and performance, profits, losses and
prospects. The Company has ledged a prospectus for an initial public offering of its shares (IPO). Recipients of this presentation who are considering participating in the IPO must make investment decisions based on the
prospectus and their own investigations and not this presentation.
Not a recommendation or financial advice: The information in this presentation is not a recommendation to subscribe for securities in the Company and does not constitute financial advice. Any person who intends to subscribe
for securities must conduct their own investigations, assessment and analysis of the Company and its operations and prospects and must base their investment decision solely on those investigations and that assessment and
analysis. Prospective investors should consult their own legal, accounting and financial advisers about an investment in the Company.
No other material authorised: The Company has not authorised any person to give any information or make any representation in connection with any proposed offer of securities. A prospective investor cannot rely upon any
information or representations not contained in this presentation.
Upcoming IPO: For the purposes of section 734(5)(b) of the Corporations Act, the Company notes the following:
• the Company intends to conduct an IPO to raise up to $5 million by an issue of ordinary shares under a prospectus;
• anyone who wants to acquire shares under the IPO will need to complete an application form that will be in or will accompany the IPO prospectus; and
• a copy of the IPO prospectus is available on the Company's website (https://icetana.com) or from the Company's registered office.
.
Must not be published
1
A video analytics software company
• AI driven video analytics software that dramatically improves
active monitoring of surveillance networks
Video Management
• Self learns “normal” movement patterns
System
• Abnormal movement highlighted in real time
• Complements existing video management systems to remove noise
and increase efficiency for operators
• Revenue generated from software-as-a-service SaaS (per
camera) and enterprise contracts
• The world leader in motion video analytics
2
Investment proposition
iCetana has initial sales globally including North America, Australia, Middle East, London and Japan.
iCetana is now poised to make a ‘step change’ in penetrating the rapidly growing global market for video
analytics solutions focussed around artificial intelligence and machine learning
The product is real and generating growing sales.
Rapid growth in Genuine IP with Enterprise grade Experienced Recurring
significant global solution in and externally leadership team Revenue
market production validated . .
✓Market growing to ✓9+ Years of development ✓Partner channel ✓Experience in ✓SaaS based revenue
over A$12b by 2023 ✓A$10m invested in strategies enterprise software, ✓Strong revenue
product to date ✓‘multiplier effects’ product management growth
driving strong pipeline and B2B distribution
✓Operating in 38 global
sites growth
3
Surveillance challenges
• Cameras are 98% used for recording only
• A great many cameras, but not enough
operators
• real time monitoring is not in place
• Existing video analytics fail customers
• Cannot scale for busy scenes/large networks
• Rules based systems prone to errors
• Huge surveillance infrastructure
investments fail to identify
• Health and safety issues or
• Manufacturing/production challenges
4
A booming market
Video analytics spending will reach Software is the fastest
US$8.6bn (A$12bn+) by 2023 growing segment with SaaS
growing at ~22% per annum as a big part of this growth
80 GLOBAL VIDEO SURVEILLANCE & ANALYTICS MARKET
70
Non Analytics (15% growth) 8.6
60
Analytics (21.5% growth) 7.3
50 6.0
US$B 5.0
40
4.1
3.4
30 61.1
2.8
53.2
46.6
20 40.8
35.7
31.2
27.3
10
0
2017 2018 2019 2020 2021 2022 2023
Source:
• Research and Markets - Video Surveillance - Global Market Outlook (2017-2026) published 2018.
• Markets and Markets – Intelligent Video Analytics Market, published 2018.
5
The iCetana solution
6
How it works…
2 weeks and billions of pixels to understand normal
The LiveWallTM only displays anomalous events
Delivering great outcomes for clients
Strong Business Case
• Increase speed of response and
reduce impact of threats
• Generate real-time insights from
huge video data streams
• Improve ROI of security
infrastructure
• Mitigate impact of events
(physical and reputational)
9iCetana today
• 9+ years of AI/Machine Learning
development
• A$10m+ invested into the underlying
technology
• Patents in US, Japan, and Australia +
• Over 10,000 cameras and 35 customer
sites
• Largest site 2,400 cameras
• Customers in campus’, casinos, retail,
office building, manufacturing, and
military security Offices in Perth. Dubai, London and representative staff in the US
10A selection of customers and partners
Operating across a number of verticals and focused on securing additional industry verticals in the coming years
including prisons, healthcare and financial services
Majid al Futtaim University of
Perth based US Health Care US Diversified
shopping centre California San
Universities (x2) reference hospital Multinational
Diego
Global
manufacturer of
banknotes
All logos and names used with permission
STRICTLY COMMERCIAL IN CONFIDENCE 11The iCetana business model
12Scaling our B2B distribution model
ENTERPRISE SALES REMOTE TECHNOLOGY NEW R&D
Value Added Resellers MONITORING VENDORS GPU and Camera
Direct engagement Server and VMS systems
• Chubb • Chubb • HPE • nVidia
• Prosegur • Securitas • Dell • Axis/Canon
• Convergint • G4S • Rasilient • Bosch
• Stanley • Downer • Milestone • Panasonic
• Delco • ADT • Genetec • Ricoh
• Cisco
13What’s happened this year…
iCetana has received $1.6m in
Active deals have grown since
new purchase orders so far this
last December by 460%.
calendar year (10 ½ months)
300 Active deals (10½ months)
250
200
Number
150
100
50
0
Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19
14Sales structure transformation
The sales structure has rapidly moved to a recurring-revenue
model over the past 4 years
Recurring Enterprise (up-front)
2016 7% 93%
2017 20% 60%
2018 45% 55%
2019 53% 47%
15Company leadership
Kevin Brown Damon Watkins Matt Macfarlane Shane Cranswick
Chief Operations Chief Revenue Chief Executive Chief Financial
Officer Officer Officer Officer
• Led the tech team that drove • Experienced enterprise • Founding CEO of iCetana • Chartered Accountant and
VGW from $300/day to software sales executive 9 years Venture Capital Company Secretary
$1.4m/day and recent CEO of a listed management, successful • Over 15 years of
• Proven track record in software ASX fintech angel investor and experience including with
delivery that delights customers • Track record in enterprise entrepreneur listed ASX companies
and empowers dramatic growth sales growth through • Experienced technology and • Ex Anderson and Apollo
in revenues direct and channel software development Group
• Ex Nearmaps and WABN strategies commercialisation leader
16Board of directors
• Highly respected enterprise software executive, with extensive experience with new technology
Mark Potts platforms in Australia and the US
Chairman Elect • Previous CTO and VP Corporate Strategy with HP Enterprise
• Director of Resolute Mining (ASX/LSE: RSG)
Matt Macfarlane • Founding CEO of iCetana, 9 years Venture Capital management, successful angel investor and
Chief Executive entrepreneur
Officer • Experienced technology and software development commercialisation leader.
• Geoff is an experienced Chairman, Executive Director and Chief Executive
Geoff Pritchard
Executive Director • Actively engaged in Governance, Strategy Consulting, Corporate Advisory, Venture Capital and
Private Equity to the Superannuation, Family Office, Financial Services and Technology Sectors
Justin Mannolini • Lawyer, director and former investment banker, focusing on mergers & acquisitions, equity
Non Executive capital markets transactions, and corporate governance advice to public, private and
Director - Elect government entities
17ASX IPO
18Corporate overview
Post ‘start up’ company with deep experience, a proven product, clear vision and foundation clients seeking new capital of
A$5m to drive growth
Capital Structure at IPO Post $5.0 million IPO
Shares on Issue 137.5 m
Performance Shares 3.0 m
Options 47.0 m
Market Cap at IPO $27.5m
Cash Raised at IPO (A$) $5.0m 18%
Debt Nil
Enterprise Value at IPO (A$) $22.5m 12%
Refer to Appendix 1 for detailed Capital Structure
70%
Major Shareholders
Go Capital Tech Fund 2 Pty Ltd 28.4%*
Yuuwa Capital LP 24.0%*
Curtin University 7.1%*
Skiptan Pty Ltd 10.5%*
Founders and others 11.8% New shares Non-escrowed Escrowed*
IPO Investors 18.2% *Includes both voluntary agreements entered into prior to the lodgement of the prospectus and
*escrowed shareholders ASX imposed restrictions
19Use of funds
Market activity is accelerating as customers refine their strategy and technology solutions
with regards analytics.
The market is ready to grow and opportunities require capital investment to close.
Go-to-market and Accelerate Product
Working Capital
People Roadmap
✓Refine segment based GTM and ✓Improved financial strength to ✓Implement filtering functions
improved sales capability pursue Tier 1 opportunities for greater client “delight”
✓Further develop indirect sales ✓Assist move from “enterprise” ✓Accelerate aspects of the
model with channel partners to more “SaaS” style contract product roadmap (VMS and
pricing with clients technical standards)
✓Refine skills mix in sales,
technical delivery and AI/ ✓Targeting financial self ✓increase levels of sophistication
machine learning sufficiency in AI driven video analytics and
machine learning filters
20Investment proposition
iCetana has initial sales globally including North America, Australia, Middle East, London and Japan the product is real and
generating growing sales. iCetana is now poised to make a ‘step change’ in penetrating the rapidly growing global market for
video analytics solutions focussed around artificial intelligence and machine learning
Rapid growth in Genuine IP with Enterprise grade Experienced
significant global solution in and externally leadership team Recurring Revenue
market production validated .
✓Video analytics market ✓9+ years of AI/Machine ✓Enterprise client base in a ✓Strong leadership team with ✓iCetana’s SaaS based revenue
expected to grow to over Learning development highly intermediated market experience in enterprise model allows the company to
A$12b by 2023, at a CAGR of lends itself to lower cost software, product build on existing customers
✓A$10m invested in product to
21.5% indirect sales and partner management and B2B without the requirement for
date with patents in US, Japan,
channel strategies reducing distribution significant additional sales and
✓Software component expected and Australia
customer acquisition cost and marketing costs
to grow ahead of market ✓Operating in 38 global sites generating ‘1 to many’
average reducing software ✓Strong revenue growth
multiplier effects expected to continue and
✓Accelerating adoption of development risk
technology by clients seeking ✓‘multiplier effects’ driving targeting stable operating cost
✓Portfolio of paying clients, strong pipeline growth as base
improved insights from existing providing organic growth channel partners become
security infrastructure opportunities familiar with the solution
Source:
• Research and Markets - Video Surveillance - Global Market Outlook (2017-2026) published 2018.
• Markets and Markets – Intelligent Video Analytics Market, published 2018
21Register your interest today IPO@icetana.com.au
22Appendix
Appendix 1 - detailed capital structure
Below is the indicative capital structure at IPO: 1. Performance Rights Allocated to Management
Capital Structure at IPO # Rights Milestone Expiry Date
750,000 $4m Revenue in the 12-month audited period ending 30 June 2021 30 June 2021
Shares on Issue 137.5 m 750,000 $6m Revenue in the 12-month audited period ending 31 Dec 2021 31 December 2021
Performance Shares1 3.0 m 750,000 $10m Revenue in the 12-month audited period ending 31 Dec 2022 31 December 2022
750,000 $12m Revenue in the 12-month audited period ending 31 Dec 2024 31 December 2024
Options to Existing Shareholders2 30.0 m
2. Options Allocated to Existing Shareholders
Employee Share Option Plan (ESOP)3 9.4 m
# Options Details
Options to Former Employees4 2.0 m 15 million $0.30 exercise price, vesting 2 years from listing, expiring 3 years from listing
Broker Options5 5.6m 15 million $0.50 exercise price, vesting 3 years from listing, expiring 5 years from listing
Shares on Issue – Fully Diluted 187.5 m 3. 9,377,393 million Employee Share Option Plan options
4. 2,044,037 million “continuing options” to former staff
($0.16 exercise price, expiry 2 February 2021)
5. 5,626,436 million unlisted broker options ($0.30 exercise price, 3-year term)
33Contact Matt Macfarlane ceo@icetana.com.au +61 400 605 960
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