future fibre technologies (asx:fft) - australian …© future fibre technologies limited 3...

© Future Fibre Technologies Limited

Future Fibre Technologies (ASX:FFT)A global leader in fibre optic security and safety solutions

PHYSICAL

Investor)Presentation)July)2015

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© Future Fibre Technologies Limited 2

Forward Looking Statements

This presentation is given on behalf of Future Fibre Technologies Limited (FFT).

Information in this presentation is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in FFT.

Certain statements throughout this document regarding the Company’s financial position, business strategy and objectives of Company management for future operations, are forward-looking statements rather than historical or current facts.

Such forward-looking statements are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to the Company’s management. Such statements are inherently uncertain, and there can be no assurance that the underlying assumptions will prove to be valid.

All data presented in this document reflect the current views of the Company with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. F

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Highlights

• Successfully listed on ASX in May 2015 – raising $21M of new capital.

• Strong and continued customer demand from core markets.

• Growing demand from new markets.

• Increase in pipeline of projects in line with growth in sales headcount.

• Strong growth in revenue forecast for 2H15 (approx. $12M).

• Well positioned for FY15 revenue forecast of $17.720M (+34.5%) and EBIT $1.927 (+20%) in line for Prospectus forecast.

• Strong cash position post IPO, enabling continued roll out of global growth.

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Share Capital

• Total Shares on Issue: 121,404,450

• Total Options on Issue: 13,535,990

• Shares escrowed until 11/05/16: 85,694,820 (70.6%)

• Top 20 Shareholders hold 89% of Shares

Major Shareholders No. Shares %)Shares %)Shares)escrowed until)

11/05/16

Al&Alhia Holding Company 27,000,000 22.2% 100%

Pierce&Group&Asia 19,229,940 15.8% 100%

Plexis Holdings&Limited 12,978,420 10.7% 100%

Seafirst&Australia&Pty&Ltd 8,517,540 7.0% 100%

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FFT – Fibre Optic Intrusion Detection Solutions

• Future Fibre Technologies (FFT) started as a research company in the 1990s -focused on the development of innovative fibre optic sensors.

• Today, FFT develops, manufactures, markets and provides technical services for advanced technology laser fibre optic security systems.

• FFT security systems detect terrorists, criminals and other intruders.

• Technology deployed by the most security conscious industrial, military andgovernment organisations around the globe.

• FFT’s advanced fibre optic security systems detect and locate: - perimeter intrusions (fence and buried)- third-party interference on oil and gas pipelines, and- attempts to tap sensitive data network communications cables.

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FFT – Fibre Optic Intrusion Detection Solutions

• 800+ systems in more than 55 countries, first systems sold in 2002.

• Recognised as the NUMBER 1 provider of fence-mounted perimeter security in the world.

Globally Future Fibre Technologies was the market leader for fence-mounted sensors in 2013 with a share of 17.3%.

IHS – World Market for Electronic Perimeter Security Equipment

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TURNING A FIBRE OPTIC CABLE INTO A SENSING MEDIUM TAKES A VERY SIMPLE IDEA AND TURNS IT INTO A POWERFUL TOOL

• No power or electronics are required in the field.

• High reliability and low maintenance.

• Consistent over very long distances.

• Real time sensing performance.

• Intrinsically safe – immune to EMI, RFI and lightning.

• Can use existing fibre optic infrastructure.

• Extremely cost-effective security solution.

• Proven technology and proven performance.

The Fibre Optic AdvantageF

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How FFT Solutions Work

• Attempted intrusions of a perimeter, pipeline or data networks typically involve the physical disturbance of the fence, soil at the perimeter or around a buried pipeline, or of the actual fibre optic data cable itself.

• Using a combination of active laser electronics (requiring power), passive fibre optics (requiring no power) and proprietary software, FFT intrusion detection systems feature advanced sensors that “listen” for signals associated with an intrusion attempt around the sensor and infrastructure being protected.

• Active electronics are housed in a safe and secure location, making them immune to tampering and environmental impacts such as lightning strikes that can damage field deployed electronics.

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How FFT Solutions Work

• All field-deployed components are passive fibre optics – requiring no power or additional infrastructure.

• When the FFT system determines an event to be an intrusion, FFT CAMS (Central Alarm Monitoring System) records the information in a secure database, converts the location of the event on the fibre to GIS (Geographic Information System) co-ordinates of the physical site and notifies local security staff to verify the intrusion.

• FFT CAMS can also instruct video surveillance to pan to the intrusion location. Local operational protocols can also be programed into FFT CAMS to alert management via email or smartphone.

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Perimeter FenceDetecting fence climbing, lifting and cutting intrusion

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Buried (Covert) PerimeterHidden detection of walking, crawling and digging using buried cable

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Pipeline Protecting against theft, fire, explosions and environmental damage

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Data NetworkProtecting against cyberattacks and data theft

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SOFTWARE MANAGEMENT SYSTEM FOR ALL FFT INTRUSION DETECTION SYSTEMS

• Displays alarms and controls zones on the site map.

• Interfaces to network management systems and mobile devices.

• Logs alarms and operator responses.

• Provides advanced client/server architecture with redundancy.

• Integrated to more than 25 different Security Management Software Systems

FFT CAMS (Central Alarm Monitoring System)

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CAMS IntegrationF

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Example of Signal Discrimination

RECEIVED SIGNAL FROM THE SENSOR OF FENCE CLIMBS DURING HEAVY RAIN

PROCESSED SIGNAL

HEAVY RAIN RECOGNISED

DYNAMIC THRESHOLDSIGNAL DISCRIMINATION IN

ACTION – CLEAR DETECTION OF CLIMBS DURING HEAVY RAIN

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FFT USES PROPRIETARY TECHNOLOGY TO DELIVER HIGH SENSITIVITY TO INTRUSIONS WITHOUT THE PENALTY OF NUISANCE ALARMS

• Intelligent event classification processes the signals, identifying and reducing nuisance alarms due to environmental noise such as rain, wind, aircraft, traffic etc. while simultaneously maintaining the same high levels of sensitivity.

• Advanced multi-parameter signal analysis improves intrusion event signal discrimination by clearly identifying what is a ‘real’ event and what is a nuisance alarm.

FFT Advantage: Signal DiscriminationF

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FFT Product ApplicationsF

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Product LeaderWidest price points and performance range for perimeter security

FFT Secure Fence TM

FFT Secure Pipe TM

FFT Secure Link TM

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FFT Product Matrix

SECURE POINT SECURE ZONE SECURE FENCE 408 SECURE FENCE SECURE PIPE SECURE LINK FFT AURA

PRIMARY APPLICATION

Small perimeters (<1000m), sliding

gates, block valves, field mounted or

remote controller options.

Small to medium length perimeter

fences requiring a centrally installed

multi-zone controller

Medium sized or remote perimeters

requiring a sensitive zone based solution

with lead-in cable up to 40km

Medium to large perimeter fences

requiring a centrally installed controller,

location of intrusions, and few nuisance alarms

Protection of buried pipelines against

third part interference (TPI) or

illegal tapping of contents.

Protection of fiberoptic and data communications

networks against physical intrusion.

Sites requiring high sensitivity, buried

intrusion detection, or cut immunity

ZONES OR CHANNELS PER CONTROLLER 2 8 or 16 8 Unlimited Unlimited Unlimited 2,666

SENSOR FIBER TYPE Single mode Multimode Single mode Single mode Single mode Single mode Single mode

MAX SENSOR CABLE LENGTH

3.2km (2 zones) 500m 40km 40km straight or 80km

perimeter 40km40km straight or

80km in a ring configuration

16km or 40km

INSENSITIVE LEAD IN CABLE LENGTH (MAX.) 10km 6km 40km 40km 40km 40km 16km or 40km

LOCATION ACCURACY Within the zone only Within the zone only Within the zone only 10m to 25m 150m or better 10m to 25m 6m to 10m

SENSOR OPERATING TEMP

Std. -30C to +70COpt. -55C to +85C

Std. -30C to +70C Opt. -55C to +85C






CONTROLLER OPERATING TEMP -30C to +65C +5C to +35C +5C to +40C 0C to +45C +10C to +35C +10C to +35C +5C to +40C

POWER CONSUMPTION <3W 120W 150W 150W 160W 160W 400W max

DIMENSIONS19" Rackmount 1U,

300x250x70 Wall with Optional

NEMA enclosure19" Rackmount 4U 19" Rackmount 4U 19" Rackmount 4U 19" Rackmount 4U 19" Rackmount 4U 19" Rackmount 4U

ALARM OUTPUTForm C contacts, TCP/IP, optional

SDKTCP/IP, dry contacts,

optional SDKTCP/IP, dry contacts,





optional SDK

FFT CAMS VERSION FFT CAMS SP & Lite (Optional)

FFT CAMS Lite (Optional)

FFT CAMS Enterprise (Optional)

FFT CAMS Enterprise

FFT CAMS Enterprise

FFT CAMS Enterprise

FFT CAMS Enterprise

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Factors Driving Demand for Perimeter Security Solutions

Global unrest

According to the US State Department, terrorist attacks rose 43% worldwide in 2013. The threat of terrorism is continuing to evolve rapidly.

Government security mandates and operational legislation

Strong growth in perimeter security with the retrofit and new construction of infrastructure including chemical facilities, airports and prisons.*

Risks to business continuity

Corporations are implementing risk management initiatives to ensure business continuity from deliberate or accidental damage – including data theft.

Innovation in intrusion technology

New cost effective, high performance perimeter detection technologies aresupporting industry demand and driving growth of infrastructure upgrades.*IHS – World Market for Electronic Perimeter Security Equipment 2013

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Growing Application Markets

Perimeter

The world market for perimeter security sensors was estimated to be worth $273 million in 2014 and is forecast to grow to $327 million in 2017 (CAGR 6.2%).

Pipeline

The global pipeline safety market is estimated to be $4.35 billion in 2013 and is expected to grow to $6.73 billion in 2018 (CAGR 9.1%).

Data Network

Worldwide spending on information security will reach $71.1 billion in 2014, an increase of of 7.9% over 2013, with the data loss prevention segment recording the fastest growth at 18.9%.

US$)million CY14 CY15 CY16

Total&Market&Perimeter Security&Sensors 273 290 308

FFT&Share&of&Total&Market 4% 5% 6%

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FFT World Market Share

Table&3.45Market'Shares'for'Perimeter'Security'Fence'MountedWorld&201022013&2&$&Revenues

Company'Name 2010'Share 2012'Share 2013'Share Difference'2010>2012

Difference'2012>2013

1 Future&Fiber&Technologies 14.5% 16.0% 17.3% 1.5% 1.3%

2 Magal 10.4% 11.4% 10.6% 1.0% 20.8%

3 CRH 6.4% 6.0% 5.5% 20.4% 20.5%

4 Optex 3.9% 4.8% 4.8% 0.9% 0.0%

5 Optellios 3.8% 3.9% 3.9% 0.1% 0.0%

6 Gallagher 3.5% 3.3% 3.5% 20.2% 0.2%

7 Fibertron 2.8% 3.0% 3.2% 0.2% 0.2%

8 G4S 3.3% 3.0% 2.9% 20.3% 20.1%

9 El2Far&Electronics&Systems 2.9% 2.9% 2.8% 0.0% 20.1%

10 Haverkamp 2.6% 2.7% 2.7% 0.1% 0.0%

Others 45.9% 43.0% 42.8% 22.9% 20.2%

(1)&The&market&shares&represent&the&state&of&the&market&in&2012&and&do&not&reflect&acquisitions&made&since.

Source:'IHS Sep>13

Notes

IHS: World Market for Electronic Perimeter Security Equipment - 2013

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Diverse Market Sectors

UTILITIES

CHEMICAL, OIL, GAS)&)MINING

MILITARY

GOVERNMENT

TRANSPORTATION

COMMERCIAL&)RESIDENTIAL

CORRECTION)FACILITIES)&)BORDERSFor

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Examples of FFT Customers - System IntegratorsF

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Examples of FFT Customers – End UsersF

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FFT Global Support

Existing offices Melbourne Singapore New Delhi Dubai JohannesburgLondon Washington DC San Francisco

Proposed new offices Amsterdam Abu Dhabi Brisbane Mexico City Hong Kong

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Competitive Landscape

FFT competes with other fibre optic intrusion detection providers:

• Fence mounted – Optex/Fiber Sensys (USA), Optellios (USA), CRH/Geoquip (UK), Remsdaq (UK) and smaller country based manufacturers.

• Buried perimeter and pipeline - OptaSense (UK), Fotech Technologies (UK).

• Data Network- Network Integrity Systems (USA) and Lynx Photonics (Israel).

FFT also competes with, and has the opportunity to take market share from, non-fibre technologies including copper cable, buried volumetric, infrared and video based intrusion detection systems.

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Go to Market ModelF

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Growing List of Active ProspectsBroad geographic spread

• FFT’s wide range of intrusion detection solutions is driving future sales growth.

• Identified viable new projects are up from US$7.2M per month (2013) to US$12M per month (2H15).

• Broad geographic spread of prospects driven by FFT international offices.

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Substantial Revenue PipelineFY16/17 total opportunities US$187M

• Average monthly additions of new opportunities approaching US$12M per month - up 50% on prior year.

• Sales headcount increased by 30% in the last 4 months, with further additions planned in 1H16.

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Growing Sales Headcount F

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Outlook

Growth outlook

• World leading technology installed in more than 55 countries with a blue chip user base.

• Growing global security concerns driving increasing demand and rapid adoption of FFT technology.

• Attractive industry fundamentals underpin future growth.

• Strong project pipeline continues to grow and convert.

• $17.6M cash (at 31/06/15) and no debt supports growth initiatives.

• Strong lift in revenue and earnings as company executes growth strategy.

Prospectus financial guidance

Step jump in revenue from 1H15 to 2H15 reflects the deployment of additional resources and gives the Board and Management team confidence in reaffirming Prospectus forecasts:

• Revenue forecast $17.720M

• EBIT forecast $1.927M

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Revenue Split by Application

• Continued strong demand for Perimeter, growing demand for Pipe and Network.

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Current Revenue SplitForecast FY15

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Growth StrategySummary

Invest in sales and support

- Add Sales and Technical Support staff to increase geographic and industry coverage.

- Establish channel partnerships to address higher volume, lower price markets.

- Increase recurring revenues from software and technical services.

- Establish product management and GTM strategy for new Secure Link applications.

Differentiate on product performance

- Enhance current leadership position with continued R&D to expand product applications.

- Expand FFT solutions within adjacent safety market segments.

Provide exceptional customer service

- Expand approved 3rd party integrations and partner with security software companies.

- Increase and enhance system integrator training and support offerings.For

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Key FinancialsFinancial Year as at 30 June

Profit &)Loss Actual Forecast

$AUD (‘000) FY14 FY15

Revenue 12,279 17,300

Gross&Margin % 71.1% 60.2%

Operating&Expenses 6,731 7,755

EBITDA 2,005 2,664

Net&Margin&% 16.3% 15.4%

EBIT 1,609 2,254

NPBT 1,630 2,269

NPAT 1,630 2,269

Notes:V NPAT&(Net&Profit&After&Tax)&is&EBIT&(Earnings&Before&Interest&and&Taxes)&plus&interest&income,&less&interest&costs&paid&or&payable,&less&

Australian&company&taxes&payable&(currently&30%&of&taxable&income).V FFT&currently&has&unutilised&tax&losses&of&$7.4m&which&is&expected&to&ensure&that&the&company&does&not&need&to&pay&any&taxes&for&

the&forecast&period.

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Financials Pro-forma Balance Sheet as at 30 June 2014

$AUD (’000) Actual)30)June2014 Pro[forma30)June)2014Balance)Sheet)

After)IPO)EntriesCurrent Assets Cash& and case& equivalents 879 15,118

Trade and& other&receivables 4,959 4,999

Inventories 1,390 1,390

Other current& assets 576 576

Current& tax& assets 1 1

Total)current)assets 7,805 22,084Non[current Assets Plant& and&equipment 582 582

Intangibles 1,518 1,518

Other& nonVcurrent assets V V

Total&nonVcurrent& assets 2,100 2,100

Total)assets 9,905 24,184Current Liabilities Trade& and other&payables 1,223 1,223

Provisions 531 531

Interest& bearing& debt 12 12

Current& tax& liabilities V V

Total current)liabilities 1,766 1,766Non[current)Liabilities Provisions 303 303

Interest& bearing& liabilities 32 32

Total&nonVcurrent liabilities 335 335

Total)liabilities 2,101 2,101Net assets 7,804 22,083

Equity Issue& capital 24,277 38,556

Reserve V V

Accumulated& losses (16,473) (16,473)

Total equity 7,804 22,083

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The TeamExecutives and Board

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future fibre technologies (asx:fft) - australian …© future fibre technologies limited 3...

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