Huddly As · OSL:HDLY
Huddly As — IPO Roadshow (February 2021)
43 slides from Huddly As's IPO roadshow presentation, Feb 8, 2021
Slide 1: Company Presentation
Company Presentation 8 February 2021
Slide 2: Important information and disclaimer
Important information and disclaimer The information in this presentation (the "Presentation") has been prepared by Huddly AS (the "Company" or "Huddly" and, together with its subsidiaries, the "Group") solely for use in dialogue with possible investors in a contemplated private placement of shares
Slide 3: The Huddly Team / The Huddly Heritage
The Huddly Team The Huddly Heritage Stein Ove Eriksen Co-Founder & CEO ▪ Background from Cisco and Tandberg ▪ World-leading engineering competence Graham Williams Executive Chairman ▪ In-house software, hardware & design team Øystein Drageset CFO ▪ Developed and designed in Norway Knut Helge Teppan
Slide 4: The Huddly Story
The Huddly Story Founded by a team with extensive industry experience who saw an opportunity for a video camera that was: ▪ Software defined ▪ Small form factor ▪ Wide angle image ▪ Quality output at attractive pricing, compatible with leading video conferencing platforms 4
Slide 5: Investment highlights
Investment highlights Validated as strategic Disruptive technology Rapid video collaboration partner to major players in unlocking new ways of growth the video collaboration collaboration ecosystem Strong historical growth Attractive growth outlook and profitability 5
Slide 6: Huddly unlocks new video collaboration opportunities
Huddly unlocks new video collaboration opportunities ▪ Software and processing capacity included in the camera ▪ The intelligence at the end point enables a variety of new services ▪ Improved video conferencing user experience ▪ Easy to add new features via software Hardware Software defined defined
Slide 7: Revolutionising the camera experience for huddle rooms
Revolutionising the camera experience for huddle rooms Small camera, big experience Game-changing intelligence ▪ Compact and powerful ▪ On-device AI, CPU and neural engine ▪ Software-enhanced and upgradable ▪ «Genius» AI features ▪ 150° field of view ▪ «InSights» Analytics API ▪ Software-upgradable
Slide 8: Huddly brings new features improving the end-user's video experience
Huddly brings new features improving the end-user´s video experience, but also tools for the administrator Genius framing What you see ▪ Identify people and take away open space around them ▪ Automatically adjust to changes in number of people ▪ Optimal presentation of those present in the room Opti
Slide 9: From niche to challenger in multiple categories
From niche to challenger in multiple catagories 2017 2018 2019 2020 Huddly GO Huddly IQ Innovative Best in class Small to medium offering in Huddle rooms go niche offering rooms niche market mainstream goes viral Catering to a Work from Home office home kit massive market Extended video Canvas New c
Slide 10: Huddly Canvas – Solution for sharing whiteboards in meetings
Huddly Canvas – Solution for sharing whiteboards in meetings 10
Slide 11: Canvas – Solution for sharing whiteboards in meetings
Canvas – Solution for sharing whiteboards in meetings What you see Tailored solution for capturing and sharing whiteboards in meeting rooms ▪ Remote education, large-room lectures, businesses ▪ Seamless integration with Microsoft Teams and Zoom to enable canvas stream with the push of a button What
Slide 12: Next generation camera platform
Next generation camera platform Two cameras for different room sizes Smart Camera Smart Camera XL ▪ Huddly also offers cameras for large rooms – Smart Camera XL brings Huddly’s features into a new segment of video conferencing ▪ IP connectivity provides improved scalability, simple installation, mor
Slide 13: Second generation Work From home Kit with Huddly ONE
Second generation Work From home Kit with Huddly ONE ▪ This month we are launching Huddly ONE, certified for Microsoft Teams, designed for home office usage ▪ Huddly ONE will include our new software feature, Portrait Lighting ▪ Portrait Lighting uses artificial intelligence to understand the lighti
Slide 14: Certified with leading platforms
Certified with leading platforms Whatever video client you prefer, Huddly just works. + 14
Slide 15: Large and established market with significant potential
Large and established market with significant potential Total addressable market (USDbn)1 Total servicable market (USDbn) Remote students Remote students & teachers & teachers 5.1 0.3 Meeting rooms Meeting rooms 18.0 3.5 USD Remote workers USD Remote workers 36.0 88.8bn 5.9 14.1bn Classrooms 29.7 Cl
Slide 16: Hybrid working environments will have a positive effect on Huddly
Hybrid working environments will have a positive effect on Huddly 1st structural shift 2nd structural shift Pre Covid-19 Covid-19 Post Covid-19 Office-to-office Huddle Huddle Office desk rooms rooms Modus Home office operandi 3 Conference Office desk Conference rooms Home office rooms Substitution f
Slide 17: Huddly's Go-to-Market strategy
Huddly’s Go-to-Market strategy Strategic partners Channel partners ▪ Selected, high-quality accounts only ▪ Focus on Americas and EMEA ▪ Huddly as camera component in kits/bundles Collaboration to build first class products Presence in relevant channels to drive and technology with top global provid
Slide 18: Successfully expanding partnerships with global leaders
Successfully expanding partnerships with global leaders B - series R - series M - series Hangouts Google Hangout Microflex Advance meet kit Mercury Meet Series meet kit & IntelliMix One 2017 2018 2019-20 18
Slide 19: Profitable, strong growth
Profitable, strong growth Year-on-year growth of ~67% Quarterly revenue (MNOK) EBIT % 120 60% 112 100 96 50% Growth driven by 84 ▪ Strategic partners and 80 40% 74 channel partners 67 60 30% ▪ Extended product 45 portfolio and SW features 43 (GO, IQ, Canvas, Series 40 20% 31 33 One) 20 16 15 14 10%
Slide 20: Profitability driven by improved scale on fixed cost base
Profitability driven by improved scale on fixed cost base Gross margin development Opex and D&A as % of revenue 70% 100% 91% 59% 59% 60% 54% 55% 53% 50% 80% 75% 47% 50% 38% 56% 56% 40% 60% 30% 34% 40% 30% 28% 27% 20% 20% 10% 0% 0% Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '18 Q1 '19
Slide 21: 2020 estimate indicates ~95% revenue growth versus 2019
2020 estimate indicates ~95% revenue growth versus 2019 Revenue development (MNOK) 400 365 ▪ Revenue of approximately 365 350 MNOK in FY 2020 300 ▪ Increase in OPEX in Q4 ’20 versus 250 three first quarters in 2020 200 187 150 100 77 50 16 0 2017 2018 2019 2020e EBIT -49 -61 2 871 1) LTM as of Q3 ‘
Slide 22: 2021 guidance
2021 guidance Revenues Gross Margin Opex / D&A Accelerated investments in Revenue of 500 MNOK to products, go-to-market and Around 50% 600 MNOK in FY 2021 support functions to accommodate for growth 22
Slide 23: Growth roadmap
Growth roadmap Capitalize on software with new features and revenue models Extend reach with new strategic partners, additional channels, and strengthened sales resources Expand TAM with new products 23
Slide 24: Huddly
= Huddly
Slide 25: Appendix
Appendix 25
Slide 26: Listing rationale and use of proceeds
Listing rationale and use of proceeds Listing rationale Use of proceeds Accelerate inhouse R&D and Fund organic and inorganic growth integration with partners Increased volume with large strategic Working capital related to higher partners requires a stronger balance volumes sheet Offer stronger liq
Slide 27: P&L
P&L Audited Audited Unaudited Unaudited P&L (MNOK) 2018 2019 YTD Q3 2019 YTD Q3 2020 Revenue 77 187 120 254 Cost of goods sold - 51 - 89 - 59 - 109 Gross profit 26 98 61 144 Operating expenses - 64 - 56 - 45 - 41 EBITDA - 38 42 16 103 Depreciation & amortization - 23 - 39 - 28 - 30 EBIT - 61 2 - 12
Slide 28: Balance sheet
Balance sheet Audited Unaudited Audited Unaudited Assets (MNOK) 31-Dec-19 30-Sep-20 Equity and liabilities (MNOK) 31-Dec-19 30-Sep-20 Intangible assets 66 80 Total equity 117 193 Tangible assets 6 7 Total non-current assets 72 87 Total long term liabilities 7 11 Inventory 0 4 Accounts payable 39 44
Slide 29: Shareholders
Shareholders Rank Shareholder Country Holding Stake ▪ GJEH PTY ATF and ATF G+J Williams are 1 GJEH Pty Ltd ATF GJEH Family Trust Australia 21,745,616 11.4% companies owned by CoB Graham Williams 2 MERTOUN CAPITAL AS Norway 15,069,216 7.9% 3 STAFF HOLDING AS Norway 12,488,000 6.5% ▪ Mertoun Capital A
Slide 30: Selling shareholders overview
Selling shareholders overview Shareholder Position in Huddly Shareholding Maximum sale shares % of shareholding GJEH PTY LTD ATF GJEH FAMILY TRUST Chairman 21,745,616 4,349,123 20% STAFF HOLDING AS 12,488,000 3,122,000 25% ELECTRIC WORK AS 2,566,640 2,566,640 100% SOM HOLDING AS CEO 11,210,928 2,240
Slide 31: Fully diluted shares
Fully diluted shares As of 25 January 2021 (adjusted for 1:16 share split) Weighted avg. ▪ Total of 191,227,424 shares outstanding Total exercise Dilution item # of shares exercise price price in NOK ▪ 2,769,968 warrants outstanding under existing warrant pool (NOK) (exercise price at nominal value)
Slide 32: Board of Directors
Board of Directors Graham Williams Per Haug Kogstad Kristian Kolberg Jostein Devold Chairman Board member Board member Board member Led Australia’s iVision from being a small Private investor in start ups and early phase Owner / Partner of Kolberg Gruppen which is MD of Mertoun Capital since 2010, a
Slide 33: Risk factors
Risk factors 33
Slide 34: Risk factors (I/IX)
Risk factors (I/IX) Investing in the Company's shares (the "Shares") involves inherent risks. Before making an investment decision, investors should carefully consider the risk factors and all information contained in this Presentation. The risks and uncertainties described herein are the principal
Slide 35: Risk factors (II/IX)
Risk factors (II/IX) 1 . 3 The markets i n which the Group operates are highly competitive The Group operates in a highly competiti ve and rapidly changing global market place, including in the U.S. The Group's success de pends on numerous factors, including its ability to successfully market and se
Slide 36: Risk factors (III/IX)
Risk factors (III/IX) 1 . 7 The Group is exposed to risk related to intellectual property rights As a technology group that delivers AI-powered video conference hardware and software, the Group depends highly on its copyright, trademark, industrial design, trade secret and other related laws and con
Slide 37: Risk factors (IV/IX)
Risk factors (IV/IX) 1 .10 Risks related to third parties The Group is dependent on partners, suppliers, and other third partie s to supply certain products and services in order to successfully conduct i ts operations. If the supply of such products and services is delayed, not given priority or do
Slide 38: Risk factors (V/IX)
Risk factors (V/IX) 1 .13 Risks related to acquisitions The Company may consider making strategic acquisitions to support its strategy and business plans. Successful growth through acquisitions i s dependent upon i.e. the Company's ability to identify suitable acquisition targets, conduct appropriat
Slide 39: Risk factors (V/IX)
Risk factors (V/IX) 2. 3 The Group is exposed to risk relating to data protection and data privacy regulations, licenses, etc. The Group receives, stores and processes personal information and other user data through its business and operations in multiple jurisdictions. This makes the Group exposed
Slide 40: Risk factors (VI/IX)
Risk factors (VI/IX) 3. 3 Future debt arrangements could limit the Group's liquidity and flexibility Any future debt arrangements could limit the Group's liquidity and flexibility in obtaining additional financing and/or in pursuing other business opportunities. Further, the Group's future ability t
Slide 41: Risk factors (VII/IX)
Risk factors (VII/IX) 4. R ISKS RELATED TO THE SHARES 4. 1 There may not be a n active and liquid market for the Shares and the price of the Shares may fluctuate significantly An investment in the Shares is associated with a high degree of risk and the price of the Shares may not develop favourably.
Slide 42: Risk factors (VIII/IX)
Risk factors (VIII/IX) 4. 5 The share price may not be equal f or all selling investors The Norwegian rules on takeover bids does not apply to the Company, hence the minority protection of voluntary and mandatory bids for the Shares doe s not apply. There is a risk that minority shareholders will no
Slide 43: Risk factors (IX/IX)
Risk factors (IX/IX) 4. 10 The Company has substantial payment obligations on the occurrence of a change of control event The Company has historically awarded synthetic options to employees whereby the holders are entitled to a bonus payment triggered by a sale of more than 50% of the Shares in the