INVESTOR PRESENTATIONAUGUST 2019
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The Family Zone ecosystem is unique in providing a complete end-to-end solution for schools in terms of duty of care and educational outcomes, with the addition of community engagement and support.
Yugon ChobanoffIT Director, John XXIII College
Family Zone Cyber Safety Ltd(ASX: FZO)
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DISCLAIMERStatements and material contained in this Presentation, particularly those regarding possible or assumed future performance or potential growth of the
Company, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. 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. To the maximum extent permitted by law none of the Company, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault of negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness or any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances.
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SOCIAL IMPACT
Keeping children safe, protecting their mental health
and supporting education.
PATENTED INNOVATION
Technical IP and innovative model aimed at creating cyber
safe communities.
$100B OPENMARKET
Estimated $100B untapped, global cyber safety markets in
education and consumer.
GLOBALLYSCALABLE
Rapid deployment into schools & telcos, accesses
parents for upsell.
FAST GROWING
SCHOOL FOOTPRINT
AT A GLANCE
FAST GROWING
RECURRING REVENUEFAST GROWING
PAYING SUBSCRIBERS
As at June 30, 2019
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>600K USERS
>900SCHOOLS
10 TELCOS
8COUNTRIES
458 USA SCHOOLS
9 UK SCHOOLS
438 ANZ SCHOOLS
AT A GLANCE
As at July 31, 2019
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Starts accessing the internet
Gets their first personal device
Views their first ‘adult’ content
Spends 4-6 hrs per day online
AGE 4 AGE 6 AGE 8 AGE 12 AGE 16AGE 10
Gets their first mobile phone
THE AVERAGE CHILD IN 2019
by the age of 16 almost all children are regularly exposed to
cyber bullying, pornography, sexting and gambling
THE PROBLEMF
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THE PROBLEM
Internet related disorders are the
fastest growing mental health issues in history
In Asia, 26% of adolescents display symptoms of internet & gaming addiction.
Youth self esteem has fallen every year since 2012 - the launch of the smartphone.
Technology use is having a negative impact on: ⇨ Cognitive function ⇨ Mental health ⇨ Learning outcomes
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87%
of teens have been exposed
CYBERBULLYING
6hrs
on social media & gaming per day
TIME ONLINE
75%
of teens get insufficient & disrupted sleep
POOR SLEEP
93%
of teen boys & 63% of girls access regularly
PORNOGRAPHY
THE PROBLEM
Parents are concerned however they’re
overwhelmed, outsmarted and time poor
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Seniors
Juniors
Children
Kids
SOCIAL MEDIA USE AT SCHOOL
THE PROBLEM
Schools have a legal duty of care however
mobility is creating distractions and risks
30%
of students are being distracted at anytime
OFF TASK
35%
of students use VPNs to bypass school policy
OFF GRID
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AT SCHOOL WHEN MOBILE AT HOME
Technology for school networks and classrooms
Technology to control all devices used by children
Technology to manage home networks and parental controls
THE SOLUTION
World first & Patented!
a common platform across all networks and all devices
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COMMUNITY EXPERTS TELCOS & ODMS
Family Zone’s platform allows schools to run cyber safety
programs across the entire parent community
Family Zone Cyber Expert Program allows experts to build
consulting and education services around the platform
Family Zone’s Partner Program allows telcos and device
manufacturers to integrate cyber safety into their offerings
THE SOLUTION
A platform approach..
creates a collaborative ecosystem
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Family Zone’s world-first ecosystem approach leverages schools, telcos and devices to
create this opportunity.
Estimated there is <4% take-up of parental controls globally.
✓ Incomplete / localised products
✓ Incompatibility with school needs
✓ Lack of interoperability
✓ Awareness only now taking hold
THE OPPORTUNITY
Parents controls is currently ~ $2.5B/a
$100B Untapped Global Opportunity
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SUBSCRIPTION INCOME
SUBSCRIPTION INCOME
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THE BUSINESS MODEL
DIRECT & RETAILMarketing to parents through
direct and online channels.
SCHOOLSSign up for “Student Licenses” and
deploy in school networks.
TELCOS & ODMsAccess best practice cyber
safety offerings.
INSTALLATIONSSchools, Telcos and ODMs promote or preload Family Zone onto children’s
devices. Schools ensure off-network compliance.
PREMIUM PARENTAL CONTROLSParents upgrade to premium enforcement options. Services are paid by the parent or school.
Where applicable revenue is shared with the telco partners.
FREE INSIGHTS FOR PARENTSSchools, telcos & ODMS introduce Family Zone to parents.
Parents receive free reports, alerts, cyber safety expert advice and education.
CHANNELS
ACTIVATION
UPGRADE
ENGAGEMENT
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SCHOOL SOLUTION
SCHOOL MANAGER
Manage student activity at network administration
MOBILE ZONE AGENTS
Manage off-net activity on personal & learning devices
CLASSROOMTOOLS
Transformed teaching with transparency & control
DEVICE MANAGER
Device & app management for school devices
Family Zone Education Solutions
Holistic approach for compliance & classrooms
Sold direct to private schools and with channel partners to public school districts. Charged as a Student License.
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PREMIUM PARENTAL CONTROLS
Family Zone Insights
Free tool for parents
Usage reporting
Location tracking
Alerts for adult content
Alerts for unsafe apps
Cyber expert advice
You have an Alert for Jonno. Download Zone Manager to view.
Required by Schools and promoted by our Telco & ODM partners.
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Filter Web Content
ScreenTime
Manage Social
Manage Streaming
Restrict Apps
Works with Schools
Manage Gaming
Disable Features
Reports & alerts
Safe Home WiFi
PREMIUM PARENTAL CONTROLS
Family Zone Premium Parental Controls
Controls for all networks & devices
Premium parental control service. $5.95/m for 3 children & devices. Direct sales and upgrades from Insights.
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Successful ANZ Trials 438 Schools216 promoting Family Zone+40% parent take-up
Entered US late 2018Signed > $1M in 8 monthsSigned 6 major resellersLive in 50 districts458 Schools
USA Schools Market100,000 schools50M studentsClear product fitReseller modelLow cost to acquire
Proven products, now shifting to scale!
SCHOOLS ENGINE ROOMF
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ACHIEVEMENTS
DIRECT & RETAIL SCHOOLS TELCOS & ODMs
9KPAYING ACCOUNTS
+40%PARENT TAKE-UP
72KPAYING ACCOUNTS
6US RESELLERS
+900CLIENTS
57KPAYING ACCOUNTS
482kLICENSED STUDENTS
+50US DISTRICTS
$630KFY 2019 REVENUE
$440KFY 2019 REVENUE
$3.4MFY 2019 REVENUE
10TELCOS
2RETAILERS
2ODMs
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PARTNERS
Resellers & RetailersODMsTechnology
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FAMILY ZONECORPORATE
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ORDINARY SHARES
MARKET CAP (@20c) *
TOP 20 SHAREHOLDERS
FOUNDERS & EXECUTIVES
200,627,835
$40M
53%
13%
CAPITAL STRUCTURE
11,774,99711,774,997
7,500,0001,000,000
32,049,998
Performance Shares$10m Rev’ by Aug 19^$20m Rev’ by Aug 20^$9.25m Rev’ from NZ^Various
5,888,4384,321,3405,335,0003,950,0001,033,5303,296,339
23,824,647
Options25c Exping (29 Aug 2019)33c Employee (19 Sep 2019)30c Employee (15 Dec 2019)30c-60c (expiring in 2020)75c-90c (expiring 2021)18c-25c (expiring 2022)
Notes* Calculated based on issued securities as at 31 July 2019. ^ Founder performance shares & rights have targets of $10m and $20 in annual revenue by 29 Aug 2019 and 29 Aug 2020 respectively. Remaining performance securities are subject to performance of the New Zealand operation and Linewize technology.
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Tim LevyManaging Director
Ross YoungVP North America
Ben TriggerCTO
Crispin SwanExecutive Director
Sales
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Key Team Members
Founded by ex telco & tech executives.
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CONTACT
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COMPANY
Investor Centrefamilyzone.com/au/investor
Automic Registry ServicesPhone: +61 8 9324 2099Email: [email protected]
Tim LevyManaging [email protected]+61 413 563 333
Investor RelationsTim DohrmannNWR [email protected]+61 468 420 846
Public RelationsTim AllertonCity Public [email protected]+61 412 715 707
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