for personal use only - asx · innovative cyber safety platform provider to consumers, schools...
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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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ASX:FZOInnovative cyber safety platform provider to consumers, schools & telcos.
Targeting a fast growing and underserved market segment.
Founded in 2013 by four telco & technology executives.
Raised $9.5m to date including $6m IPO in July 2016 (3X oversubscribed).
Strong direct to consumer, partner and wholesale business models.
Live in AU and USA and in Philippines through wholesale with major telco PLDT.
Recently acquired leading school cyber tech Sonar & MyNet. Accelerates commercialisation and provides immediate access to 200,000 users in Australia/USA.
Post TNT deal1
Share price ~20c
Shares on issue 61,977,706 67,144,372
Performance shares2 28,000,000 30,999,997
Options3 18,474,709 24,474,709
Market Cap (at 20c) $12,395,541 $13,428,874
Cash (at 30 Sep) $4.8m
1 Assume shareholders agree Sonar/MyNet acquisition
2 Three performance based tranches. Refer IPO prospectus.
3 Advisor, board and performance based employee options.
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The ProblemSEXTING | DIGITAL DEMENTIA | INFOMANIA | BULLYING | STALKING | GROOMING | SCREEN TIME
DIGITAL FOOTPRINT | PORN ADDICTION | GAMBLING ADDICTION | SEXUALISATION | IN-APP PURCHASES
45%
4700%
81%
90%
60%
70%
<25%
72k
pre-teens using unsafe social media
teen girls feel pressured to share nudes
increase in porn web-search after school
boys under 16 have visited porn sites
girls under 16 have visited porn sites
teens believe cyber-bullying is endemic
teens get enough sleep
boys in Australia with problem gambling 4
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Fragmented ApproachesCOMPLEX | EXPENSIVE | NARROW FEATURES | NOT-INTEGRATED | POOR SUPPORT
Home School Carrier Enterprise
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The Impact
<50%
<14%
parents try anything (most give up)
kids mobile devices have any controls
US$2Bn+10%
~2-4%
global parental control software market
of the potential market captured today
year on year growth
Cyber Safety
Sexting
A HUGE AND UNTAPPED MARKET
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Limited reach | Free internet & privacy | Legacy business models
can’t solve it!
The majors
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Our universal solutionSIMPLE | ONE POLICY EVERYWHERE | AFFORDABLE | VALUE ADDING | ADVANCED FEATURES
Family Zone App Family Zone Client Family Zone Box Family Zone FCL FZ Firewall
SmartphonesTablets
Family Zone Mobile
PCs & Macs Filtered Mobile Data
Consumer & Small Business
Consumer & Business
School & Enterprise
Family Zone Cloud Platform
An integrated ecosystem of cyber safety & security products serving parents, communities, enterprises and the providers of access.8
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Integration creates a compelling solution:
✔ Full transparency at school & home✔ Safe mobile devices on campus✔ Low cost / parent pays models✔ Harmonised policies + Cyber Expert✔ Advanced tech (SSL decryption and more)
✔ Cyber security solution for Education
✔ Owned by Tesserent (ASX:TNT)
✔ Global solution provider
✔ 180 installs live in AU
✔ 47 going live in USA
✔ Circa 200,000 kids online & growing
✔ Digital citizen/welfare functions
✔ Includes tech on FZO roadmap
✔ Schools “influencer” not valued
Acquisition of Sonar MyNetBusiness Case
Family Zone consumer offerings part of school
security offering
Family Zone consumer services
recommended to parents
Cyber Experts build programmes on the
Family Zone platform
Established global distribution
Engagement of Rob Smyth & Nick Conolly
Immediate revenue: +$850k/a & growing
$1m @ 30c placement to Rob Smyth
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Our productsConsumer Education Enterprise
Family subscriptionsCyber Expert subscriptions
Services ~ $100pa Services ~ 90% marginsFamily Zone Box ($89)
Subscriptions per userServices - high margin
Cost recovery on hardware
License fees per serverIntegrated consumer techServices ~ 100% margins
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Points of Difference
Distribution(Access Partners)
Advanced(All Features)
Affordable(Designed for scale)
Eco-System(Designed to adopt)
TRUSTED | RESPONSIVE | STICKY | SIMPLE
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Strong(In Access Points)
Simple(Cloud controlled)
Embedded inside schools & communities
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✔ Wholesale co-branded✔ Retail bundled offers✔ Targeting T1 carriers in SEA ~ 400m subscribers✔ Developed world targets AUS & USA MVNOs Regional ISPs in USA
ChannelsDirect to Consumer Carriers Distributors
✔ Direct & inbound✔ Affiliates✔ Schools✔ Cyber Experts✔ Retail partners
Enterprise securityTelco carrier SME
Access providers
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Scenarios
School scenarios227 schools 227k families $2.8m $5.5m $8.2m
10% 20% 30%
300 schools 300k families $3.7m $7.3m $10.9m400 schools 400k families $4.9m $9.7m $14.5m
Service revenue at take-up scenarios
Philippines scenariosPLDT Fixed 2.4m target homes $0.8m $1.6m $4.0m
1% 2% 5%
Smart Mobile 12m target kids $1.8m $3.6m $8.9m
5.5m
100m
Families
45m
147mPhilippines
Indonesia
10k
100k
Schools
75k
170k
Addressable Markets
The numbers described above are based on the assumptions stated in the table. These are not a forecast of FZO’s future revenue.
Revenue assumptions: School families: AU$120/yr per Zone; Philippines: AU$1.1/m per Service; 2.5 services per Fixed Zone.
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✔ Launched Aus Jul 2016✔ National radio Nov 2016✔ Soft live USA Dec 2016✔ 12 Cyber Experts✔ Computer Troubleshooters✔ School ICT providers✔ School booklists✔ MVNO discussions
Progress
✔ 180 school installations in AU✔ 47 school installations in USA✔ Access to +200,000 parents✔ Tesserent global reseller
Consumer
Education
PartnersRegistered Devices
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ProgressCarrier Wholesale
✔ Launching with PLDT Nov 16✔ Active discussions in SEA✔ Supported by Fidelio
Enterprise✔ Late stage discussions with major carriers
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The TeamExperienced Global Telecom, Technology & Sales Executives
Consulting | Software | Education | Start-up | Retail Distribution
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Tim LevyManaging Director
Crispin SwanExecutive Director
John SimsNon Exec Chairman
Phil WarrenNon Exec Director
Rob Smyth VP SalesFor
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Strategy✔ Massive, global, growing & untapped market✔ Consumer model -> momentum✔ School model -> leverage✔ Carrier model -> acceleration✔ Cyber experts -> trust
Team✔ Relevant experience & personally invested
Value Adds✔ Content, big data & trade sale
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SummaryPositioned for acceleration✔ Generating revenue in AU, USA & Philippines
✔ Wholesale contract with a major T1 telco In discussions with many others
✔ Embedded in 230 schools ~ 200k families Leverage for consumer sales Q1 17 Expanding school footprint via resellers
✔ Sales distribution & VP in place
✔ AcquireBPO contact centre live Globally scalable
✔ Broadest cyber solution in any marketFor
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