FLEET UPDATE JUNE 2017

Transcription

1 JUNE 2017

2 Executive Summary Paul Angelatos, SVP - Fleet, Rail and Off-Road As I reflect on the past 24 months, I am buoyed by the achievements in the 2017 financial year (FY). We have continued to focus on our direct sales and our customer base is growing steadily across the world. The work we have done with our Fleet Management Solutions (FMS) partners is starting to bear fruit. The MiX Telematics Seeing Machines integrated solution is now complete and being rolled out across the MiX network. We have been working closely with MiX at all levels of the organisation to ensure that we leverage opportunities to cost effectively grow the Guardian business. Our regional distributors have improved their performance and as previously noted, we continue our work with other key FMS partners to ensure we are equipped to continue to harness the opportunities these relationships present while reinforcing our direct sales efforts. I am delighted to announce that Guardian has added another $13M of total contract value to the since the half-year results bringing the current total of new contracts for the year (as at end June) to just over $29M. We have over 130 customers globally and this will continue to grow as we have now launched in the UK and many of our US based customer assessments come to an end with high probabilities of translating into sales for that region. The transformation into a longer-term contracted, recurring monthly revenue streams provides greater revenue predictability with average contract terms ranging between 36 and 60 months in length. We are focused on retaining our existing customers, while working on increasing sales from our other 2 channels to market, FMS partners and distributors. In conclusion, we are confident that the Guardian business will continue to forge growth for the company, and as we focus on product development and aftermarket services, Seeing Machines will add significant value for our customers and ultimately, our shareholders.

3 Dashboard North America Current Guardian Assessments Asia Pacific Assessments in progress UK, Europe Middle East, Africa Latin America Under Negotiation FY 2015 Customer Order Book Delivered / Undelivered FY 2016 FY 2017 Cumulative revenue to date Contract value not yet recognised as revenue Total Contract Value (TCV)** v Revenue Fleet FY 2015 FY 2016 FY 2017 TCV Revenue ** Total Contract Value refers to total value of hardware fees plus ongoing monitoring fees for the total life of all current Guardian System contracts, average being 36 months.

4 UK/Europe Featured customer FRESHLINC UK-based FreshLinc recently signed a contract to fit all 320 of its trucks with Seeing Machines Guardian System. It s a major commitment for a growing private company that can count Asda, Aldi, Waitrose, Lidl and Bakkavor among the clients for its transport and warehousing services for chilled foods. In this interview Lee Juniper, Managing Director of FreshLinc, explains why he chose Guardian. He also reveals how, from the very beginning of the trial, this technology helped further improve FreshLinc s safety culture, protecting drivers and the general public. Q. HOW IS THE INSTALLATION BEING ROLLED OUT ACROSS THE FLEET? Lee Juniper: We already have 10 trucks with test units from the 10-month assessment and will be rolling out the Guardian system very aggressively into the remaining 310 vehicles over 8 weeks, beginning before the end of June Q. YOU MENTION THE TRIAL ASSESSMENT TOOK 10-MONTHS, CAN YOU EXPLAIN MORE ABOUT HOW EXHAUSTIVE IT WAS? Lee Juniper: We assessed Guardian at two of our depots: Alconbury, which handles containers going to and from the port to customer sites and Spalding, which is a national transport hub for the UK and to the Continent. For us we wanted to see the difference Guardian made to the 2 operations. As you can imagine, trying something new and different we were a little bit sceptical about the technology. Could it actually do what it says on the tin? 10 months is a long time and much of that was because I personally wanted to understand a little bit more. Initially we tested for 2 periods of 30 days, one without any alarms and notifications and 30 days with all the alarms and notifications. In that initial period we established that the technology did actually work. Thereafter, I wanted to be sure that Seeing Machines was up to working with us and delivering the level of service we required. After all, it is a big commitment for a company like ours. So roughly 8 months was me testing them to see how committed they were. I have to say, throughout the whole period Seeing Machines were truly exceptional and passed any test I set them. Q. HOW EFFECTIVE WAS THE GUARDIAN SYSTEM IN REDUCING FATIGUE AND DISTRACTION EVENTS AMONG YOUR DRIVERS DURING THIS 10-MONTH ASSESSMENT PERIOD? Lee Juniper: The results were staggering with fatigue and distraction events reduced by 80% with the Guardian system on. Q. DID YOU ALSO EVALUATE ANY COMPETING SYSTEMS? Lee Juniper: No, for a simple reason: there isn t any system that I know of in the UK or Europe that can do what the Guardian system does, which is help prevent accidents due to fatigue or distraction in real time. Having spoken to a number of our peer group in Europe they re also wowed by it. Q. YOU RE CLEARLY PASSIONATE ABOUT IMPROVING SAFETY, IS THAT THE MAIN IMPETUS BEHIND INSTALLING GUARDIAN? Lee Juniper: Installing the system is a reasonable cost to us but we believe it is worth it. We want to be responsible and do the right thing. This isn t about profits: but helping the driver that sits behind that wheel. Their job is hard enough as it is. I want the driver to go home at the end of their shift. I don t want the heartache of attending a funeral. I ve had to do that a few times in my career. Sadly, one of our employees was killed almost exactly one year ago driving to work in his own car. He was reading his text messages. While we weren t responsible in any way for his death, attending his funeral strengthened my resolve to do more to protect our employees.

5 Operations Update Fleet Management Solutions MiX Telematics Integration Integration between Seeing Machines Guardian System and MiX Telematics is now being rolled out across the MiX network with co-branded marketing and sales material. In short, the integration will provide customers with the following benefits when using both MiX and Guardian solutions: Event details can be displayed for use in dashboards and live telematics systems Events can be retrieved directly by the customer or by MiX to display alongside other driver and vehicle data collected Event details can be more easily analysed with MiX data to produce a much richer picture of driver behaviour Events are available to retrieve approximately 2 mins after the event occurs providing close to real time display information. The system is being assessed by two multi-national organisations, one in South Africa and one in Asia and the results are being closely monitored in collaboration with the fleet managers to ascertain the best way forward. With a record week of 290 installations behind us, the Operations team for Guardian is well-equipped to support increased demand for connecting fleets across our global customer base. Across the Guardian installed base and calculated to the end of May 2017, the following snapshot provides insight into what is being managed by the Tucson based SafeGuard Centre across 1.9M total detected events. Our rate of installation is being supported by our trained installers around the world and at this point, we are pleased to confirm that we have 138 Certified Installers, 14 Certified Assistants and 12 Field Support Specialists (trainers). Recently we have installed fleets in Australia, New Zealand, Singapore, Thailand, South Africa, Kazakhstan, India, UK, USA, Canada, Chile and Brazil. Confirmed Fatigue Events Confirmed Distration Events Activated Fatigue Intervention Plans Cumulative Events Safeguard Centre Cumulative Events Safeguard Centre ERICA COLLINS, SVP OPERATIONS, GUARDIAN COMMENTED: OUR ANNUAL CUSTOMER SATISFACTION SURVEY IS A GOOD BENCHMARK FOR THE OPERATIONS TEAM S PERFORMANCE GLOBALLY AND I M DELIGHTED THAT THIS YEAR S SURVEY REVEALED A 90% POSITIVE SATISFACTION RESULT.

6 South East Asia Distributors In Focus Kiattana increases targets for Thailand KGP Co, a subsidiary company of Kiattana, was introduced to provide a safety system and solution for drivers and is an authorised importer and distributor for Seeing Machines Guardian System in Thailand. KGP will connect a total of 1,000 Guardian units by 30 June 2017, focused on corporate heavy-duty trucks and buses. Further to this, they expect to have 4,000 units sold by 31 December 2017 and achieve 6,000 connected units by 30 June Malaysian Truck Show Guardian was launched in Malaysia at the end of May when Guardian SEA (Singapore based distributor) exhibited at the Malaysia Truck Show in Kuala Lumpur. As well as the exhibition space, Guardian SEA sponsored the R&R area in the exhibition hall. This proved successful as it s where people went to get complimentary food and beverages, with Guardian branded coffee cups! Brand awareness was really positive, with many enquiries about the solution. Much of the discussion centred around the need for this technology in Malaysia. We are also pleased to confirm that the first 2 Malaysian fleet assessments began in mid-july. It s great to see increasing uptake across the South East Asia region. MEK MONSEREENUSORN, MANAGING DIRECTOR, KGP CO SAID: WITH RELATIVELY HIGH RATES OF ROAD ACCIDENTS IN THAILAND, I THINK OUR ACCIDENT-PREVENTION TECHNOLOGY WILL BE WORTH FOR FLEET OWNERS TO INVEST. WE ARE COMMITTED TO SAFETY AND THE PREVENTION OF ACCIDENTS SO WORKING WITH INNOVATIVE PRODUCTS LIKE GUARDIAN MEANS WE CAN TRULY OFFER OUR CUSTOMERS A QUALITY SOLUTION THAT IMPROVES THE SAFETY STANDARD WITHIN OUR INDUSTRY OVERALL AND SAVES LIVES.

7 Seeing Machines strives to provide informative and regular communication to investors. We trust you find the information in this quarter s fleet investor update useful. We encourage you to contact us if you have any questions regarding this update. THANK YOU HEAD OFFICE: Level 1, 11 Lonsdale Street Braddon ACT Australia (e): investors@seeingmachines.com (t):