Baylin Technologies, Inc. · TSX:BYL
Baylin Technologies — Investor Presentation (October 2016)
27 slides from Baylin Technologies's investor presentation, October 2016
Slide 1: Baylin Technologies Inc. Investor Presentation Mid 2016
C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . B AY L I N T E C H N O L O G I E S I N C . Investor Presentation Mid 2016 A leading global provider of innovative antenna solutions. 1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . This presentation contains “forward-looking information”, which may include, but is not limited to, statements with respect to future events or the future financial and operating performance of Baylin Technologies
Slide 3: Who We Are
WHO WE ARE C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . u Commenced business in 1978. Completed initial u End users include Samsung, Motorola, Arris and public offering on TSX November 2013. Greenwave. End-users Cisco, Linksys, Comcast u World leader in antenna design and manufactu
Slide 4: Capital Markets and Financial Snapshot
CAPITAL MARKETS AND FINANCIAL SNAPSHOT C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . BYL-‐TO Aug 8 2016 Price C$2.02 Market Capitaliza3on C$38.0m Issued Shares : Basic 18.7m Fully Diluted 18.8m Insider Ownership ~65% Net Cash (June 2016) U$5.4m Enterprise Value C$34.3m 44
Slide 5: Bold Decisions Yield Results
BOLD DECISIONS YIELD RESULTS C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . 2015 transition year Head office Strategic hiring in Fixed costs Results evident in Significant resulted in significant moved to Canada all product lines rationalized. 2016 with positive investments made company
Slide 6: Key Themes in the Antenna Market
KEY THEMES IN THE ANTENNA MARKET C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . u Accelerating growth in mobile data demand, small cell deployment and network densification. u Growing demand for more capable and intelligent networks as smart devices and connections will increase 67% b
Slide 7: Carriers Under Fire as Data Demand Explodes
CARRIERS UNDER FIRE AS DATA DEMAND EXPLODES C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . Devices Network Constraints Accelerating Per User Require Innovative, Data Demand Cost-effective [1-3X] Per Device 5X* Antenna Solutions * Source: Cisco White Paper 2015-2020 "Carriers Under Fire
Slide 8: Divisional Structure
DIVISIONAL STRUCTURE C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . Manufacturing Engineering DAS & Mobile Network Small Cell 88
Slide 9: Product Lines: Mobile
PRODUCT LINES Mobile C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . u Total Addressable Antenna Market is approximately US$900mm, growing at around 30% per year. u Key growth drivers in this segment include: – increasing number of devices per person; – increasing data usage per device
Slide 10: Product Lines: Networking
PRODUCT LINES Networking C L E A R S I GC NL AE LA SR . S S I OG U N N A DL S I N. VS EO S U T N M D E I N N T V S E . S T M E N T S . u Total Addressable Antenna Market approximately US$400 million, growing at 27% per year. u Baylin's antennas improve wireless internet connectivity, video distrib
Slide 11: Product Lines: DAS and Small Cell
PRODUCT LINES DAS And Small Cell C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . u Total Addressable Antenna Market is u Baylin has installed thousands of DAS and approximately US$2 billion, growing at 70% small-cell systems in sports facilities, per year. including all the major stadi
Slide 12: Manufacturing
MANUFACTURING C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . u Facilities located in China, South Korea and Vietnam. u Provides Baylin with competitive advantages of optimized design, cost- effective manufacturing and minimizes lead time to market. u Facilities are among the most tec
Slide 13: Engineering
ENGINEERING C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . u State of the art chambers and test equipment. u Numerous patents and intellectual knowledge. u Design centers in 4 countries across 3 divisions that create a very unique and diverse offering. u Developed several game chang
Slide 14: Customers
CUSTOMERS C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . 14 14
Slide 15: Geographical Revenue
GEOGRAPHICAL REVENUE C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . WESTERN HEMISPHERE ASIA 15 15
Slide 16: Customer Diversification
CUSTOMER DIVERSIFICATION C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . 2013 2016 17% 21% 3% 63% 80% Three Customers One 16% customer Mobile Infrastructure Network Mobile Infrastructure Network 16 16
Slide 17: Decades of Innovation
DECADES OF INNOVATION C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . 1 st u 1st Mobile antenna u 1st embedded antenna u 1st MIMO antenna u 1st small size low PIM MIMO phone antenna u 1st MIMO antenna for stadiums u 1st Through Ceiling and Above Ceiling mounting kit offerings u 1s
Slide 18: Award Winning Innovation and Design Is Baylin's Core Advantage
A W A R D W I N N I N G I N N O VAT I O N A N D D E S I G N I S B AY L I N ’ S C L CORE ADVANTAGE E A R S I G N A L S . S O U N D I N V E S T M E N T S . Almost 2,000 Design unique custom Centres in antennas Israel, South designed. Korea, China and the US. 83 Over one patents filed relating to desig
Slide 19: Competition
COMPETITION C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . H I G H B A R R I E R S T O E N T R Y ! Carriers, service providers RF technology and exper3se Highly-‐specialized, No single compe3tor and OEM's have required to design and technologically advanced covers all of Baylin’s chall
Slide 20: Growth Initiatives
GROWTH INITIATIVES C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . Organic Acquisitions • Focus on innovation in each of three Positioned to enhance growth by adding: key segments. • technological capabilities. • Expansion into more sophisticated • new geographical markets. product lines
Slide 21: Improving Results – 1: Revenue and Adjusted EBITDA
IMPROVING RESULTS – 1 C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . R E V E N U E A D J U S T E D E B I T D A 21 21
Slide 22: Improving Results – 2: OPEX
IMPROVING RESULTS – 2 C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . O P E X One time costs on HQ move to Canada 22 22
Slide 23: Improving Results – 3
IMPROVING RESULTS – 3 C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . 23 23
Slide 24: Financial Performance
FINANCIAL PERFORMANCE C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . 2015 2016 US$M Q1 Q2 Q3 Q4 Q1 Q2 Sales 8.0 10.0 12.1 13.0 15.8 15.7 Gross Profit 1.0 2.2 2.7 3.1 4.2 4.5 Gross Profit % 13% 22% 23% 24% 27% 28% R&D 1.6 1.5 1.6 1.7 1.8 1.9 Sales & Marketing 1.2 1.1 1.0 1.4 0.9 0.7 G&A
Slide 25: Financial Performance
FINANCIAL PERFORMANCE C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . USD’M Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Cash 17.7 16.3 12.3 11.4 6.7 8.1 Working Capital (Ex Cash) 5.8 5.1 6.4 4.9 6.7 7.1 Total Assets 58.6 56.0 52.2 49.6 47.9 47.6 Current Liabilities 17.5 17.9 17.5 18.4 16.8 17.0
Slide 26: Baylin Comparables
BAYLIN COMPARABLES C L E A R S I G N A L S . S O U Sales N (Mn) D I N EBITDA V E (Mn) S T M EPS E N T EV/Sales S . EV/EBITDA P/EPS Last Closing Market EV Price Currency High Low FY + 1 FY + 2 FY + 1 FY + 2 FY + 1 FY + 2 FY + 1 FY + 2 FY + 1 FY + 2 FY + 1 FY + 2 Cap (Mn) (Mn) Aug 11, 2016 Airgain AIR
Slide 27: Summary
SUMMARY C L E A R S I G N A L S . S O U N D I N V E S T M E N T S . u Will benefit from exponential growth of data delivered wirelessly. u Emerging from reorganization stronger than ever before. u Poised for growth through acquisitions (with support of majority shareholder). u Growth in revenues
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