Investor Presentations
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THE WORLD’S FIRST PERSONALIZED TV. Linius Investor Roadshow February 2020 ASX:LNU 1 Disclaimer This document has been prepared by Linius Technologies Limited (LNU). The information contained in this document is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. The information contained in this document is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. In preparing and providing this document, LNU has not considered the objectives, financial position or needs of any particular recipient. LNU strongly suggests that investors consult a financial advisor prior to making an investment decision. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. 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This document is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities in any jurisdiction, and neither this presentation nor anything contained in it forms the basis of any contract or commitment. Without limiting the foregoing, this document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities of LNU have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. 2 Having invested in and established Vision & Mission the assets required to meet our vision, we can now roll out across the VISION: To make all the world’s video accessible as data video value chain. MISSION: To become the defacto standard for the management and broadcast of video COMMERCIALIZATION: Linius patented Video Virtualization EngineTM (VVE) to deliver to mass markets in 3 ways: - Self service to global markets through a SaaS model - Mass distribution through partners and re-sellers - Industry specific divisions and solution sets built around VVE 3 We are tech ready, patent ready, commercially ready and our partners are engaged. Status: ✓ We’ve targeted and won in Sports: - Soccer / Football – SportsHero & Essendon Football Club - Racing – Racing.com - Basketball – National Basketball League (NBL) ✓ We’ve targeted and won in News: - News aggregator - Newstag ✓ We’re now focused on 3 priorities: - Win more and win BIG validating clients - Deploying our most recent wins - Exercising our model of replication ✓ In parallel we have partners engaged and ready: - MSFT, IBM, AWS, Stats Perform, Akamai, Brightcove, Oxagile 4 Personalised Channels Demonstration 5 Linius has published market research on the appeal & propensity to purchase personalized channels 96% of respondents said they would be likely to use a personalized channel if it were offered as an additional service by their TV provider. 77% of respondents said they would be more likely to renew their subscription if they were offered personalized channels. £14.30 (A$27) per month is the average price respondents said they would pay for their own personalized channel, on top of existing subscription fee. 9.2 hours per week is the average time respondents said they spent watching football and football related news. Quantum Market Research - The Future of TV Market Demand, November 2019. Full research report can be accessed at https://try.Linius.com/personalizedchannels 6 SaaS – revenue model (utilizing our publicly available rate card) A simple example of a broadcaster with 2.5 million subscribers: Subscribers 2.5 million Subscription (new) $5 per month Client average revenue (new) $12.5M per month It is purposely simple. We virtualize Linius revenue of $3.15M per month based on: the video, enrich it - 50 new games per month, at 90 minutes per game with metadata, and - Each subscriber watching 18 hours per month play out personalized videos. Linius Revenue Virtualization $0.0092 per min $41.40 Enrichment $0.300 per min $1,350 Personalization $0.0022 per min $3.15M per month Based upon each subscriber watching 18 hours per month. The Quantum Market Research indicated 40 hours is actually spent per month (9.2 hours per week). 7 Recent successes – we are on strategy to enter mega markets Recent Successes Addressable Market • Linius tech in the SportsHero app and through ‘white • Global value of sports media rights was US$49.5b in label’ solutions, including the mobile app, ‘Kita Garuda’, 2018, of which football accounted for 40% developed for the Football Association of Indonesia (PSSI). ($19.8B).1 Sky Sport alone has 22.9 million subscribers Kita Garuda mobile app being aggressively promoted to globally. 2 PSSI’s 80M fans across Indonesia. • Successful launch of Replay Hub Stage 1. Search and • assemble video on any horse, any jockey, any track – on The top 10 gambling companies in the world make up the fly. Second stage in development with personalized 80% of global betting. Bet 365 alone has 45 million channels to feature race replays, Racing.com TV channel customers.3 and racing news. • Linius has entered into a Licensed Agreement with the • Basketball has over 1 billion followers. Its a major sport National Basketball League (NBL) for Video in USA with NBA generating over $4.75 billion a year in Personalization. NBL will be able to provide every viewer revenue.4 The NBA is broadcasted to 86M subscribers with a hyper-personalized video experience. via ESPN in the USA.5 • Essendon Football Club (EFC) is the first AFL Club to sign • The Australian Football League (AFL) has 1.1 million up to the Linius Sports Club Solution. It focuses on Club Members,6 with fans watching 3.5 hours each delivering operational and commercial benefits for a week, (with some regular season games reaching over 100,000 users). 7 sporting organisation’s proprietary media content. 1. Sports Business Consulting, Global Media Report 2018 / 2. thisismoney.co.uk/money/ 3. bet365.com.au / 4. totalsportek.com/most-popular-sports/ 5. thewaltdisneycompany.com/ 6. afl.com.au / 7. media.kayosports.com/aussies-cant-get-enough-sport Personalization beyond sports – other core verticals Vision Strategy Status Green light for global roll out Increased Outsource to Commercial POC completed, Co-sell agreement w/ MSFT signed, On boarding MSFT Corporate communication Microsoft with initial briefings completed. and compliance Metadata generated by Microsoft’s Video Indexer. Technology market ready and deployed. Personalization Partner with Green light for global roll out News delivers the news Commercial POC’s completed , First aggregator partnership – Newstag. answer to driving aggregators and Metadata available through AI, predominantly MS Video Indexer. news subscription news clients Technology market ready and deployed. Green light for global roll out Security Instant Engage advisors actionable Commercial Deep engagement with UK agencies. Early engagement with US agencies. & Defense to facilitate intelligence introductions Metadata Available through AI. Technology available and deployable off the shelf. Green light for global roll out Enhanced Outsource via Commercial Currently integrating with Kaltura (6.7% OVP market share), promoting on Education learning and product Kaltura marketplace; signed agreement with Media Amp,