Tern Plc · LSE:TERN
Tern — H1 2018 Earnings Presentation
19 slides from Tern's earnings presentation, September 2018
Slide 1: Creating Value from Technology
Creating Value from Technology Interims September 2018 Private and Confidential 1
Slide 2: Disclaimer
Disclaimer The information contained in these slides and the accompanying oral presentation (together, the "Presentation") have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA"). If any person is in any doubt as to the contents of th
Slide 3: Tern at a Glance
Tern at a Glance ➢ AIM listed investment company created in 2013 ➢ Investment Focus: The Internet of Things (IoT) ➢ Six portfolio companies including Device Authority and InVMA which are making strong headway in the Significant shareholders growing IoT security space John Mahtani 6.7% ➢ Emphasis on
Slide 4: Vision
Vision “to become the leading investment company specialising in IoT by unlocking opportunities others haven’t seen or thought possible to deliver significant returns for shareholders" 4
Slide 5: Key Trends in the IoT
Key Trends in the IoT 20 ➢ Companies offering IoT platform software CAGR=40% (2018-2023) 18 and services will bring in nearly $18 billion 17 16 annually by 2023 14 ➢ Translating to $0.44 per IoT device globally, up from $0.32 per device in 2018 12 12 ➢ As the number of IoT devices continues to 10 ri
Slide 6: Global Spending: Manufacturing by Type ($b)
Global Spending: Manufacturing by Type ($b) ➢ Hardware spending at manufacturers will Hardware (CAGR=11%) Software (CAGR=22%) drop from 27% of the sector’s IoT spending Services (CAGR=21%) in 2018 to 20% by 2023 75 ➢ Software and services will make up more of the total, at 32% and 31%, respectively
Slide 7: VR Spending in Healthcare
VR Spending in Healthcare Global 2025 VR/AR Market Share, By Use Case In billions (USD) Military $1.4 \ Retail $1.6 Real estate $2.6 Education $0.7 tern” ee BI INTELLIGENCE
Slide 8: Tern Headlines June 2018
Tern Headlines June 2018 tern”
Slide 9: First Six Months of 2018 - Headlines
First Six Months of 2018 - Headlines ➢ Raised £3.1m and retired convertible loan note facility ➢ £1.5m invested in existing portfolio and new portfolio company FVRVS (FundamentalVR) ➢ Aggregate turnover of principal portfolio companies increased by 126% from 2016 to 2017 and forecast to increase 50%
Slide 10: Tern Investment Portfolio First half of 2018
Tern Investment Portfolio First half of 2018 10
Slide 11: Device Authority Limited
Device Authority Limited A UK company providing IoT applications policy driven encryption, strong device identity and automated credential management through Device Authority’s KeyScaler™ Platform ➢ New partners: SyroCon Consulting, Eonti, LTI, Gemalto and support for Microsoft Azure IoT Hub ➢ Recog
Slide 12: InVMA Limited
InVMA Limited A product and systems integrator building IoT solutions for specific market needs ➢ Launched AssetMinder, a product that monitors and manages data from all types of sensors ➢ Integration of AssetMinder with Device Authority’s KeyScaler ➢ New partnerships and contracts, including suppor
Slide 13: flexiOPS/Wyld Technologies Limited
flexiOPS/Wyld Technologies Limited A UK company offering ad hoc mesh networking platform that creates resilient networks that enable broader use of IoT devices ➢ flexiOPS focused on aiding the growth and development of Wyld Technologies ➢ Wyld Technology is building out its development team and mesh
Slide 14: FundamentalVR (FVRVS Limited)
FundamentalVR (FVRVS Limited) ➢ A UK company developing a flight simulator for surgeons ➢ Large market: Growth from $25.9B in 2015 to $38.4B in 2024* - shortage of physicians, nurses and other health workers worldwide increasing to 7.5 million by 2035 ➢ Begun to use funds to refine SaaS model ➢ Focu
Slide 15: Seal Software Group Limited and Push Technology Limited
Seal Software Group Limited A leader in contract discovery and analytics ➢ Announced numerous new contracts and strategic partnerships, including global partnership with DocuSign ➢ Award winning: — Named 2018 Cool Vendor in Content Services by Gartner; — Won award for Outstanding Data Analytics Solu
Slide 16: Interim results
Interim results tern”
Slide 17: June 2018 Headlines
June 2018 Headlines 30 June 30 June 31 December 31 December 2018 2017 2017 £’000 £’000 £’000 Net assets 13,943 10,787 10,581 ROI – value of investment portfolio 11,550 10,601 10,218 Total assets 14,222 11,031 11,069 Cash 1,539 336 274 (Loss)/Profit (221) (469) (1,690) 17
Slide 18: Balance Sheet
Balance Sheet 30 June 30 June 31 December 2018 2017 2017 £'000 £’000 £’000 Investments 11,550 10,601 10,218 Current Assets 2,672 430 851 Total Assets 14,222 11,031 11,069 Current liabilities 279 169 277 Long term liabilities - 75 211 Equity 13,943 10,787 10,581 Total Equity and liabilities 14,222 11
Slide 19: Questions?
Questions? 20 Eastbourne Terrace London, W2 6LG e: [email protected] t: 020 3807 0222 ternplc.com 19