Norsat International Inc.

Transcription

1 Norsat International Inc. Annual General Meeting May 7, 2014

2 Chairman of the Board Fabio Doninelli

3 Norsat International Inc. Annual General Meeting May 7, 2014

4 Agenda Corporate Update Financial Review Outlook and Growth Strategy Question and Answers Words from the Chairman Closing Remarks 4

5 Corporate Update Dr. Amiee Chan, President & CEO

6 Forward Looking Statements Statements in this presentation relating to matters that are not historical fact are forward-looking statements. These are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those outlined in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: general economic conditions, changes in technology, reliance on suppliers, managing rapid growth, global sales risks, limited intellectual property protection, competition, mergers and strategic transactions by competitors, the continued availability of existing bank loans and credit facilities and other risks and uncertainties described in Norsat s public filings with securities regulatory authorities. While all efforts are made to ensure the accuracy of the information, Norsat assumes no liability for incorrect, incomplete, or missing information from this presentation. Past performance is not necessarily indicative of future performance. 6

7 Vision Statement To be the premier provider of innovative communication solutions for remote and challenging applications. 7

8 The Market Opportunity is Significant Connected World* 2 Billion People Unconnected World 5 Billion People Norsat connects the Unconnected World through highly valuable applications Total Internet Users as of March 31,

9 Infrastructure Non-existent/Insufficient Military theatre Developing nations and communities Remote and/or harsh environments (e.g. Oil & Gas or Mining camps) Transportation/Maritime industries (e.g. On the Move applications) Infrastructure Damaged Disaster relief and response Mission Critical Communications Public Safety Transportation Security and defense Photo: Norsat NewsLink System Used after 2010 Haiti Earthquake 9

10 The Norsat Platform Land Mobile Radio WiFi Satellite WiMax LTE M2M 10

11 Microwave Components Microwave components used in satellite user ground stations enable the transmission & reception of microwave radio signals to & from satellites for audio, video, or digital processing. Products: Market leading receivers (LNB) ground, marine, and airborne applications Transmitters (BUCs and SSPAs) incl. the compact & powerful ATOM series Transmit Growing portfolio including airborne receivers, high efficiency BUC/SSPA, and Ka band Rx and Tx solutions Receive Markets Served: system integration, marine, broadcasting, military, government, education Revenue: 20-25% of total 11

12 Satellite Solutions Norsat fly-away satellite terminals deliver video, voice, and data connectivity in challenging applications and environments around the globe. Products: C, X, Ku, Ka band flyaway terminals (0.45 to 4.5m antennas) Maritime stabilized antennas Satcom on the Move Remote Network Solutions Emergency Response Tool Kits Markets Served: military, government, broadcasting, maritime, enterprise, natural resources Revenue: 10-20% of total 12

13 Sinclair Technologies For over 60 years, Sinclair Technologies has been the industry leader in providing high reliability antennas, and RF conditioning products and solutions for wireless communications in extreme environments. Products: 700/800 MHz, Aviation, VHF/UHF, Tetra Band Antennas, Filters & Systems Comshel heavy-duty antenna housings Markets Served: public safety, defense, national and local security communications networks, military, utilities, natural resources, transport (road, rail, air, marine, etc.) Revenue: 50 55% of total 13

14 Sinclair Products Overview Antennas & RF Conditioning Products Low PIM Dipole Antennas High performance fiberglass collinear antennas Enclosed dipole array antennas Panel antennas Excelsior Mobile Antennas Yagi Antennas High performance transport antennas Excaliber rail and transport antennas Log periodic/data antennas Expandable multi-couplers Compact combining solutions Mobile duplexers Base Station duplexers Tower top amplifiers Cavity ferrite and trunking transmitter combiners Receiver multi-couplers Custom antenna combining systems 14

15 New Growth Initiatives: M2M Solutions Norsat s M2M Solution, Sentinel RMC offers customizable, real time monitoring and control for remote sites around the world. Sentinel RMC features: Turnkey solution including hardware, web-based interface & data storage Real time stats from multiple monitoring inputs Global data access System monitors and alarms Choice of backhaul options Markets Served: oil & gas, natural resources, telecommunications, public safety, governments, utilities 15

16 Complete Solutions Provider Design & Development Supply Chain Delivery & Service Support & Warranty Leading-edge designs & extensive technology expertise High quality supply chain and ISO certified in Canadian facilities Co-ordinated logistics, infield installation and training Available technical support and best in industry warranties 16

17 Recent Achievements CVG Acquisition - Advancing our core business Augmenting our product portfolio Enhancing IP for our Satellite and Microwave business units Awarded contracts in excess of $4.0M over the past year Awarded a $13.3M R&D program under SADI - has allowed for the development of: ATOM and ELEMENT Series BUCs & SSPAs, TXC Series of Ceramic Combiners, Low profile transportation antennas (SM 700), High performance broadband antenna (SE 41X) Signed 3 year contract with Public Works & Government Services Canada for supply of UHF/VHF antennas for up to $1.5M 17

18 Financial Update Mr. Arthur Chin, CFO

19 USD Millions Annual Revenue and Adjusted EBITDA $45 $42.4 $40 $35 $30 $37.8 $36.4 $25 $20 $19.8 $15 $10 $5 $0 $4.2 $4.8 $5.1 $2.8 *11% *11% *14% Revenue Adjusted EBITDA * Adjusted EBITDA Margin 19

20 2014 First Quarter Summary (In 000 s) March 31, 2013 March 31, 2014 Revenue $ 8,354 $ 9,117 Net Income $ 412 $ 2,117 Adjusted EBITDA $ 797 $ 1,592 EPS $ 0.01 $

21 Strong Balance Sheet December 31, 2012 December 31, 2013 March 31, 2014 Cash and Cash Equivalents $ 5.1M $ 3.3M $ 2.9M Working Capital $ 7.5M $ 10.0M $ 11.4M Debt $ 7.0M $ 4.4M $ 3.9M Shareholders Equity $24.2M $26.4M $27.4M 21

22 Outlook & Growth Dr. Amiee Chan, President & CEO

23 Outlook Revenue improvement in first half of 2014 on increased customer activity and new product releases in the Microwave and Sinclair divisions Continued challenges for Satellite Division created by reduced military spending Balanced efficiency in operations with ongoing strategic investment throughout the Company 23

24 Longer-Term Strategy Broaden product and services portfolio Diversify into new market verticals such as: commercial, resource, transportation and public safety sectors Continue to focus on R & D Add recurring revenue streams Pursue merger and acquisition opportunities Maintain profitable growth 24

25 QUESTIONS & ANSWERS

26 Words from the Chairman Fabio Doninelli

27 Growth Addition of several new products for markets that have a strong opportunity for growth SATCOM Baseband kits ATOM BUCs and SSPAs Ceramic Filters Microwave products for O3b Network M2M Solution- Remote Site Monitoring and Control New BUCs, LNBs & more SM700, SE412 Microwave Filters 27

28 Growth- Sinclair Division 28

29 Growth- Sinclair Division State of the art, lightweight ceramic combiner Over $15M opportunity 29

30 Growth- Microwave Although already a leader in commercial LNB s, moving towards greater market share as leading transmitter (BUC & SSPA) provider Transmit Receive 30

31 Opportunities Focus on Mergers & Acquisitions Acquisition of new Assets: low cost of acquisition, easy repayment and high value IP and assets A synergistic increase in product lines 31

32 USD Millions Financial Strength January 21, March 31, 2014 $30 $25 $27.4M $20 $15 $12.75M $10 $5 $3.85M $0 Jan '11 Jun'11 Dec '11 Jun '12 Dec '12 Jun'13 Dec-13 Mar '14 Cash+AR-AP Acquisition loan and promissory note Shareholders' Equity 32

33 Management Team Amiee Chan, President and CEO (2006) Arthur Chin, CFO (2011) Ken Broom, General Manager (2013) Brian Donnelly, VP Sales and Marketing (2012) Bob Reeve, VP Sales and Bus. Dev. (2014) Michael Schefter, Director of Engineering (2006) Kang Lan, Director of Engineering (2011) Frank So, Director of Operations (2012)

34 COFFEE AND REFRESHMENTS 34