Nexteq Plc · LSE:NXQ
Nexteq — Quixant — FY2018 Earnings Presentation
23 slides from Nexteq's earnings presentation, 2018
Slide 1: Quixant plc Results – Full Year to 31 December 2018
Full Year to 31 December 2018 QUIXANT PLC RESULTS Jon Jayal Guy Millward Chief Executive Officer Chief Financial Officer
Slide 2: Global Provider of Specialist Software-Enabled Hardware
GLOBAL PROVIDER OF SPECIALIST SOFTWARE-ENABLED HARDWARE Market leading outsourced provider of specialised computer platforms with integrated low-level software for manufacturers of pay to-play machines for the gaming market Leveraging established Densitron division provides Sustained double- reputat
Slide 3: Investment Case
INVESTMENT CASE Proven effectiveness in delivering technically innovative products to a highly Strength of balance sheet regulated global market – can be applied to other verticals High barriers to entry Strong cash generation due to regulation and and low leverage provides blend of hardware opportu
Slide 4: Key Takeaways from the Period
KEY TAKEAWAYS FROM THE PERIOD Continued growth Maintenance Progress Management of platform market of margin re-positioning structure share to 13% Densitron strengthened Growth in business Early recognition and Initial results from Key hires with new business action to mitigate broadcast sector and i
Slide 5: Financial Review
FINANCIAL REVIEW
Slide 6: 2018 Profit and Loss
2018 PROFIT AND LOSS $m 2018 2017 Var Revenue Gaming Division 77.6 71.1 9% Core business continues double-digit Gaming platforms 62.5 54.8 14% growth Gaming monitors 15.1 16.3 (7%) Densitron Division 37.5 38.1 (2%) Gaming monitors declines year-on-year as low margin business is reduced 115.2 109.2 5
Slide 7: 2018 Cash Flow
2018 CASH FLOW $m 2018 2017 Operating cash flows before working 17.4 18.0 capital (Increase)/decrease in receivables (11.0) 0.9 Decrease/(increase) in inventories 1.8 (8.3) Timing of Q4 sales reduces cash conversion from operations – largely in Increase/(decrease) in payables 3.8 (0.1) December. Str
Slide 8: Operational Review
w—__ Quixant OPERATIONAL REVIEW
Slide 9: Gaming Division Segmental Analysis
GAMING DIVISON SEGMENTAL ANALYSIS Gaming platform sales by product family Gaming monitor sales by product type 70,000 18 38 16 60,000 264 14 50,000 5.9 12 6.4 34,091 Quantity 40,000 10 $m 33,952 30,000 8 9,938 6 20,000 10.4 7,813 4 8.7 10,000 17,013 10,177 2 2018 2017 2018 2017 Cost Effective Mid-ra
Slide 10: Gaming Platforms
GAMING PLATFORMS Strong gaming platform business performance, continuing track record of double digit revenue growth Gross margin maintained, despite electronics component shortages Revenue growth from 2017 business wins contributing to growth in sales of cost effective platforms and diversifying re
Slide 11: Case Study on Novomatic
CASE STUDY ON NOVOMATIC 2012 2013 2014 2015 2016 2017 2018 2019 Work Novomatic Quixant starts Mass commences on publish article supplying production engagement on announcing platforms to commences on a niche, Quixant as Novomatic UK “QuNo” which bespoke strategic subsidiary Astra is designed as a te
Slide 12: Continued Innovation to Deliver Enhanced Value
CONTINUED INNOVATION TO DELIVER ENHANCED VALUE Three patents applied for Value of the Quixant Gaming Continued investment over the period. One Ecosystem® continues to attract in R&D to enhance granted in early 2019 even the largest customers software / hardware platform EXAMPLE CASE STUDY: TRACING T
Slide 13: Using the Quixant Ethos to Drive Profitable Gaming Monitor Product Business
USING THE QUIXANT ETHOS TO DRIVE PROFITABLE GAMING MONITOR PRODUCT BUSINESS Topper MONITORS Focus on development of differentiated products to enable margin expansion Strategic decision to withdraw from Main highly price sensitive main-screen Screens market Button deck range performing well – 13,150
Slide 14: Clear Densitron Strategy and Encouraging Signs for Growth
CLEAR DENSITRON STRATEGY AND ENCOURAGING SIGNS FOR GROWTH DENSITRON Strategy to be an enabler of Human Machine Interface control surfaces focused at vertical markets Broadcast sector identified as first vertical focused opportunity UReady rackmount ready product range won TV Technology “2018 Best in
Slide 15: Broadcast Market Value Chain
BROADCAST MARKET VALUE CHAIN $600bn revenue $51bn total revenue $22bn equipment Control & Monitoring segment addressable market est. $2bn
Slide 16: Strengthening the Business for Sustained Growth
STRENGTHENING THE BUSINESS FOR SUSTAINED GROWTH STRENGTHENED MANAGEMENT DISCIPLINE & TOOLS ▪ Divisional organisational structure established Corporate Shared Quixant plc Services ▪ Restructuring of Densitron for globalised org structure (HR, Legal, IT, Finance) ▪ Senior appointments ▪ Group CFO – Gu
Slide 17: Looking Ahead
LOOKING AHEAD
Slide 18: Gaming Core Business Market Drivers
GAMING CORE BUSINESS MARKET DRIVERS The Japanese opportunity – RELATIVE SIZE OF MAJOR MACAU significant, long term development GAMING MARKETS $62,167m ▪ Integrated Resorts Bill paving way for integrated resorts (2015) ▪ Goal for first resort open by 2025 JAPAN ▪ Significant gaming market growth oppo
Slide 19: Summary and Outlook
SUMMARY AND OUTLOOK Gaming monitor portfolio Strong performance in core gaming Strong new business opportunity refocused on platforms with growth in revenue pipeline for future years of >$30m higher margin products – button from new business wins deck Densitron continues to Strengthened management S
Slide 20: Appendix
w—__ Quixant APPENDIX
Slide 21: Background
BACKGROUND Quixant was founded in 2005 by current senior requirements and regulations of the management and listed on AIM in May 2013. gaming and slot machine industry. Headquartered in the UK with manufacturing High quality scalable, cost effective in Taiwan and offices in North America, manufactur
Slide 22: Board of Directors
BOARD OF DIRECTORS Michael Peagram Jon Jayal Nick Jarmany Independent Chief Executive Officer Executive Vice Chairman Non-Executive Chairman Guy Millward Guy van Zwanenberg Chief Independent Financial Officer Non-Executive Director Gary Mullins Gaye Hudson JJ Lin Group Strategic Independent Manufact
Slide 23: Balance Sheet 31 December 2018
BALANCE SHEET 31 DECEMBER 2018 $m 2018 2017 PPE 6.1 6.2 Intangible assets 15.5 14.3 Investment property 0.6 0.7 Timing of Q4 sales increases Deferred tax asset 0.2 0.2 receivables abnormally – largely in Non-current assets 22.5 21.3 December. Strong cash collection in Q1 2019 so far, >$20m. Inventor