1. No category

saves lives
Annual General Meeting
21 October 2014
Terry Winters, Chairman
Ken Kroeger, CEO
V201410009 Copyright Seeing Machines Limited
Disclaimer
• 
The information contained in this confidential document ("Presentation") has been prepared by Seeing Machines Limited
(the "Company"). It has not been fully verified and is subject to material updating, revision and further amendment.
• 
While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders,
directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or
warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this
Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any
interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly
disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers
take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious,
statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained
herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation.
• 
This Presentation may contain forward-looking statements that involve substantial risks and uncertainties, and actual
results and developments may differ materially from those expressed or implied by these statements. These forwardlooking statements are statements regarding the Company's intentions, beliefs or current expectations concerning, among
other things, the Company's results of operations, financial condition, prospects, growth, strategies and the industry in
which the Company operates. By their nature, forward-looking statements involve risks and uncertainties because they
relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements
speak only as of the date of this Presentation and the Company does not undertake any obligation to publicly release any
revisions to these forward-looking statements to reflect events or circumstances after the date of this Presentation.
• 
This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders,
directors, officers, agents, employees or advisers. In particular, this Presentation does not constitute an offer or invitation
to subscribe for or purchase any securities and neither this Presentation nor anything contained herein shall form the
basis of any contract or commitment whatsoever. Each party to whom this Presentation is made available must make its
own independent assessment of the Company after making such investigations and taking such advice as may be deemed
necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements
of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters.
Copyright Seeing Machines Limited |
Slide 2 of 33
Contents
Terry Winters, Chairman:
•  Vision & Overview
•  Directors and management
•  FY14 Financial Highlights
•  Recent Highlights
Ken Kroeger, CEO:
•  Strategic Plan
•  Target Markets
•  Product Direction
•  Investing in future growth
Appendix:
•  FY14 Financial Detail and Trend
Copyright Seeing Machines Limited |
Slide 3 of 33
Terry Winters
Chairman
Seeing Machines’ Vision
To enhance operator performance and safety
through real-time monitoring and intervention
enabled by intelligent sensing technologies.
Overview
• 
Seeing Machines is a leading supplier of Driver/Operator Safety Monitoring
technology and services
• 
Developing technology for next-generation Advanced Driver Assistance Systems
(ADAS)
• 
Headquartered in Australia, offices in USA and Chile
• 
AIM listed (SEE), with high quality institutional shareholders
• 
Building a combination of hardware, software licensing and royalty revenue streams
• 
Investing in mining & construction, automotive, commercial road transport, rail,
simulators (including aviation) and consumer electronics markets
• 
Focused sales strategy - partnering with major OEM’s to target global markets
–  Takata - one of world’s largest automotive tier-1 safety suppliers
–  Samsung - world’s largest mobile device manufacturer
–  Caterpillar - world’s largest mining equipment supplier and 4th largest rail supplier
Copyright Seeing Machines Limited |
Slide 6 of 33
Strengthened Board / Non-executive directors
Terry Winters - Chairman (Melbourne, Australia)
Chairman and director of several Australian / International listed and private companies Founder of Optus,
Australia’s second largest telecommunications carrier Extensive capital raising, public markets and social
enterprise experience
Jim Walker (Perth, Australia.)
Extensive experience in mining industry with 13 years as CEO of WesTrac (Caterpillar dealer). Chairman of
Macmahon Holdings, Non-Executive Director Skilled Group, RAC Holdings (WA), and State Training Board
(WA).
Rudy Burger (California, USA)
Has founded five US digital media tech. companies, run a European public company, and served as a senior
executive for two global 500 companies. Currently Founder of an investment bank headquartered in
California. Non-Executive Director of another AIM listed technology company based in Cambridge, UK.
David Gaul (Canberra, Australia.)
Over 20 years’ experience in high-tech commercialisation. Co-founder, Non-Executive Director and past
President of CEA Technologies, a successful technology company. He was Aust. Tech. Entrepreneur in 2003
and Aust. Export Hero in 2010.
Mike Roberts (London, UK)
Private investor and an active SM shareholder since 2005. Previously with JPMorgan- Emerging Markets
Group, where his responsibilities were primarily in the trading, sales and placement of corporate debt in
the Eastern Europe, Africa and Middle East regions.
Copyright Seeing Machines Limited |
Slide 7 of 33
Strengthened Board / Non-executive directors
Ken Kroeger
CEO and Managing Director (Canberra, Australia)
Extensive technology and commercialisation background. Founded international simulation and
training business later sold to Halliburton subsidiary in 2008.
James Walker
CFO and Finance Director (Canberra, Australia)
Extensive commercialisation and international high growth business experience
Industry experience as Acting CEO, CFO & COO of driver fatigue monitoring company
Public market (ASX), IPO and M&A experience.
Ken Davis
SVP Global Sales and Marketing (Melbourne, Australia)
Long term Business to Business sales & marketing leadership experience across many industry sectors
involving most sales channels. Extensive experience in sales strategy, management and training
workshops in over 30 countries.
Paul Angelatos
SVP Operations (Canberra, Australia)
Extensive project, program and general management experience with major multi national services
company. First career as a commissioned military officer. Experienced supply chain professional with
operational experience both domestically and abroad. Established successful local management
consulting firm prior to joining Seeing Machines.
Copyright Seeing Machines Limited |
Slide 8 of 33
Strengthened Board / Non-executive directors
David Nagy
SVP Product Management (Mountain View, California, USA)
Extensive product management and marketing experience ranging from startups through Apple and
Dell. Strong product-market planning, development, and launch skills in mobile and Web, cloud
computing, application development, and SMB/enterprise software across the telematics,
transportation & logistics, retail & distribution, field service and consumer markets.
Buzz Dean
SVP Engineering (Mountain View, California, USA)
Deep technology development background - silicon through enterprise solutions
Senior leadership experience scaling product development in angel-funded through to public
companies (Apple, Microsoft).
Tim Edwards
Chief Technology Officer (Melbourne, Australia)
Co-founder, Systems engineering​ background
Technology strategy & leadership.
Andrew Neilson
SVP Legal & Commercial, Company Secretary (Melbourne, Australia)
Legal and commercial executive with hands-on experience managing growing companies.
Lawyer with top-tier firm plus regional general counsel for global companies.
Management experience with ASX & AIM listed company commercialising technology for global
markets. Copyright Seeing Machines Limited |
Slide 9 of 33
FY14 Financial Highlights
• 
Total revenue increase of 39% to A$17,762,246 (2013: A$12,735,741)
• 
Gross profit increased by 34% to A$10,012,894 (2013: A$7,492,697) due to:
– 
a change in product mix resulting from higher DSS sales
– 
the sale of services, including engineering consulting services
– 
decline in faceLAB® and faceAPI™ sales
• 
Existing DSS mining business remained profitable
• 
Significant investment in additional R&D (up to A$2.6m from A$1.4m in 2013)
• 
Investment in systems and infrastructure to enable growth into new markets
• 
Resulted in a net loss of A$2,706,380, a decline from last year’s profit
• 
Cash at June 2014 increased to A$22,764,774 (June 2013: A$835,001) due to:
– 
proceeds from capital raised in December 2013 and January 2014 (A$27,977,575)
– 
increased investment in inventory to fulfil the customer orders
– 
initial investment in expanding entry into an extended set of industry sectors
– 
developing scalable infrastructure to enable increased scaling of field support capabilities within
the Company’s main Driver Safety Solution (“DSS”) markets
• 
Employees - up from 47 (June 2013) to 90 at 30 June 2014
Copyright Seeing Machines Limited |
Slide 10 of 33
Recent Highlights
• 
Continuing to cement leadership position in mining sector
• 
Continuing to secure distribution channels for current products:
– 
Signing more CAT dealers to increase penetration into mining industry
– 
Established JV in Chile with long term distributor to cover South America
– 
Agreement with insurer to access commercial road transport market in South Africa
• 
Signed joint development agreements with top-tier OEM partners to develop new products
• 
Outsourced manufacturing to drive down costs, increase quality and scalability
• 
Building the base for future growth: Investing in experienced and capable executive team,
engineering resources and infrastructure; Sales & marketing; Increased R&D to expand IP and
product offering for strategic markets
• 
Strong interest from multiple additional automotive OEMs for new ADAS car & truck products
• 
Assessing IP opportunities for future ADAS & Vehicle to Vehicle systems
• 
Spinning off non-core businesses – Truefield (Eye Health) & Research centric eye gaze product
Copyright Seeing Machines Limited |
Slide 11 of 33
Ken Kroeger
CEO
Strategic Plan
Opportunity
Horizon 1
Horizon 3
Horizon 2
ADAS
opportunities
Commercial fleets
Road vehicles
(after market business)
Market > 310m vehicles (globally) –
10.3m in USA
(TAKATA Alliance –
for OEM markets)
Market > 65m+ new each year
Mining
(CAT Alliance –
sales through CAT Dealers)
Market > 150,000 vehicles
Rail
(Alliance with Electro Motive
Diesel (Caterpillar))
Market >200,000 locomotives
Consumer electronics
(Samsung Technology
MOU)
Market > US$1.4t (2015)
Aviation, Simulators/
Consoles
Market > 31,000 new planes
(next 20 years)
Time to pay-off
Over the next two years, we expect mining’s share of SEE revenues to reduce as a % of total
revenues, as sales begin to shift initially towards the commercial road transport market, rail
and passenger vehicles, and then consumer electronics
Copyright Seeing Machines Limited |
Slide 13 of 33
Market Segment Size
Copyright Seeing Machines Limited |
Slide 14 of 33
Advanced Driver Assistance Systems (ADAS)
•  ADAS: systems developed to automate, adapt &
enhance vehicle systems for safety and better driving
•  ADAS technology is critical in accident proof, self
driving, semi-autonomous & autonomous vehicles
– 
Preventing accidents: texting while driving is the biggest
killer of teenage driving males in the USA
– 
Self driving & autonomous: Next generation ADAS (&
relevant legislation) requires a driver to be ready and able
to resume control at all times
•  Recent investment in ADAS growth:
– 
Aug 2014: Mobileye, an outward facing ADAS technology
company IPO on NYSE for $4.5bn on forecast revenues of
$130m. Current market cap ~$9.5bn.
– 
Sep 2014: ZF Friedrichshafen buys TRW Automotive for
$11.7bn, to secure access to technology for self-driving
vehicles:
“Driver assistance and autonomous driving is a key
source of future growth” - Dr Sommer, ZF CEO
•  Seeing Machines partners with Takata’s ADAS product
road map
http://itersnews.com/?p=14123
Copyright Seeing Machines Limited |
Slide 15 of 33
Seeing Machines & ADAS Peers
Mobileye
Seeing Machines
Peer 1, Listed
Seeing Machines
+
DSS
+
Current IP
Partner IP
Pedestrian
Collision
Warning
Pedestrian
Collision
Warning
Distraction
Detection
Speed
Monitoring
Lane
Departure
Warning
Lane
Departure
Warning
Microsleep
Detection
Inertia Based
Driver Score
Card
Forward
Collision
Warning
Forward
Collision
Warning
Eye Gaze
Region of
Interest
Headway
Monitoring
Headway
Monitoring
Geo
Positioning
Speed
Monitoring
Curve
Overspeed
Inertia Event
Detection
Forward &
Driver Facing
DVRs
24/7
Monitoring
3rd Party IP
Next Generation DSS
Commercial road transport
- Rich ADAS capability
- Aftermarket product
- OEM & dealer installed offering
- Subscription based contracts
- Monitoring services revenue
- Insurance industry ready
- Advanced state of development
- Proven technologies
- Early 2016 launch
- Multiple channels to market
Copyright Seeing Machines Limited |
Slide 16 of 33
Automotive
Opportunity
• 
Market size - 65m new cars & 22m new commercial vehicles in 2013
Action
• 
Mutually exclusive 15 year licensing agreement with Takata for ADAS driving
monitoring systems
• 
Takata is one of the world’s leading tier-1 automotive safety suppliers, to global
OEMs
• 
Alliance includes new passenger vehicles, buses, commercial trucks
• 
Ongoing funding of joint product and market development, access to Takata IP for
application outside automotive and for after-market
• 
Seeing Machines receives mix of minimum licence fees & royalties
• 
Developing product for 1st OEM customer now and >10 other major OEMs showing
interest
• 
Will need more resources to develop products for all these OEMs
Copyright Seeing Machines Limited |
Slide 17 of 33
Commercial Road Transport
Opportunity
• 
Market size > 310m vehicles (globally) – 10.3m in USA
• 
USA – 30-40% heavy truck crashes due to driver fatigue – distraction estimated
to be higher
Action
• 
Active trials underway with customers in South Africa, Europe and Australia
• 
Developing new, lighter / more cost effective product for the commercial fleet
market
• 
Expected to be available mid-2015 (aftermarket), then integrated as OEM
product (longer term)
• 
Assessing opportunities to integrate or acquire other technologies, to develop
“ADAS” solution for commercial vehicles
• 
Establish international indirect sales partners
Copyright Seeing Machines Limited |
Slide 18 of 33
Rail
Opportunity
• 
Rail safety is a $13 billion market
• 
25,000 class 1 locomotives in the USA, excluding subways
• 
Become market leader through first to market approach
• 
Driven by impending government regulations
Action
• 
Strategic agreement with Electro-Motive Diesel, Inc. (EMD) / Progress Rail
• 
Caterpillar owned - 4th largest global rail company - above & below the track solutions
• 
Exclusive agreement to develop Seeing Machines’ DSS technology for the rail industry
• 
Aftermarket and OEM integrated solution
• 
Strong end customer interest (3 trial partners already identified)
• 
Successful market launch at InnoTrans, now working on the details of joint product development
and marketing
Copyright Seeing Machines Limited |
Slide 19 of 33
Mining
Opportunity
• 
Accidents endanger lives and cause lost productivity
• 
60-65% of mining accidents are caused by fatigue
• 
Runaway vehicles are a significant risk factor in an open cut mine
• 
Single customer had over 131,000 fatigue events in last 12 months (350
trucks)
Action
• 
38,000
DSSmining is proven, around the world, to significantly reduce the number
of incidents, reduce the possibility of accidents and to save lives
• 
Exclusive agreement with Caterpillar, world’s largest mining equipment
150,000
supplier
• 
CAT Dealers being signed up, trained, supported; and now generating sales
• 
DSS being installed in vehicles other than haul trucks - increases market
opportunity
• 
Working with CAT to combine DSS technology with CAT’s own technology
products and safety services – including in non-mining industries
Market Growth
Opportunity
Haul Trucks VS.
Other Mining vehicles
Copyright Seeing Machines Limited |
Slide 20 of 33
Mining
Wave 3 – Nth America
•  Wagner (Prospecting)
•  Finning CAN (Prospecting)
•  Toromont CAN (Prospecting)
•  Wyoming Mach (Prospecting)
•  Cashman (Prospecting)
Wave 1 - APAC
•  WesTrac, WA (Prospecting)
•  WesTrac, NSW (Prospecting)
•  Hastings Deering (Prospecting)
Wave 4 – EAME
•  Finning, UK (Prospecting)
Wave 2 - LATAM
•  Finning SA (Prospecting)
•  Matco (Prospecting)
•  MAQSA (Closing)
•  GECOLSA (Prospecting)
•  Sotreq
•  IIASA
•  TRACSA
Market Position
• 
• 
• 
57% increase in revenues in
FY2014
Over 30 active sites
Operational activities in 11
countries
• 
• 
Onboarding CAT Dealers
Building annuity revenue base
Copyright Seeing Machines Limited |
Slide 21 of 33
Mining – Growing Recurring Base
DSSi Mining Vehicles
1,200
2014 DSSi Mining Vehicles by Region
1,134
1,000
ROW
16
801
800
Latin
America
268
600
400
347
263
200
0
Australasi
a
425
North
America
345
2013 H1 2013 H2 2014 H1 2014 H2
Copyright Seeing Machines Limited |
Slide 22 of 33
Consumer Electronics
Opportunity
• 
Enormous consumer electronics global market – forecast of US$1.4 trillion in 2015*
Action
• 
MoU signed with SEMCo in Sep 2014 - formalizes almost two years of close collaboration
• 
Working towards a joint development agreement
• 
SEMCo is a multinational electronic component company, part of the Samsung Group
• 
SEMCo and Seeing Machines appoint dedicated engineering teams to a collaborative R&D program, and
assign business development resources tasked with supporting key markets
• 
Samsung will help Seeing Machines to drive mass-market adoption of face & eye tracking technology
Seeing Machines’ eye tracking algorithms are industry best. I believe that these
technologies will radically enhance the user experience and ultimately change the
way that people use their electronic devices.
Mr Sunkyu Lee, VP of Product Planning at SEMCo
Copyright Seeing Machines Limited |
Slide 23 of 33
Aviation / Simulators
•  Currently investigating aviation opportunities – business and
investment plans to be completed by March 2015
•  FOVIO is the showpiece of our development work in eye tracking
for complex environments
•  FOVIO sales to the research market have been spun out to leading
distributor (Eye Tracking Inc.) to allow management to focus on the
six core markets
Console
operators
After market
simulators
Commercial
aviation
Control rooms
Copyright Seeing Machines Limited |
Slide 24 of 33
Investing in Future Growth
Many opportunities for Seeing Machines’ technology in a number of large global markets.
Continue to building our own resources & assess strategic options to accelerate product portfolio & revenue
growth.
Investment priorities over next 12-18 months include:
• 
• 
• 
Develop and embed Seeing Machines’ technology into new products:
– 
Vehicles for multiple major OEMs with Takata
– 
Aftermarket product for commercial fleets (adding in other sensors and capabilities)
– 
New product for rail locomotives (EMD)
– 
Consumer electronics applications (SEMCo)
– 
Expand application of DSS technology to all Caterpillar fields of operation
Investment in technology and engineering capabilities:
– 
Automotive-grade driver monitoring engine
– 
Value engineering to continue to reduce product costs
– 
Next-generation technology to encompass multi camera eye gaze tracking
– 
Additional “sensing” capabilities
Ongoing investment in staff, resources and infrastructure to drive sales in multiple markets, through
distribution partners (Caterpillar) as well as direct sales (commercial road transport).
Copyright Seeing Machines Limited |
Slide 25 of 33
Summary
TECHNOLOGY ON INVESTORS’ RADAR
ADAS driving investment, valuations and
corporate activity
CONSUMER ELECTRONICS
MOU with SAMSUNG
Massive opportunity to be developed
GLOBAL LEADING PARTNERS
Able to attract and partner with global
companies
AUTOMOTIVE
Global Alliance with TAKATA
ADAS Applications
STRONG MANAGEMENT TEAM
Experienced and expanded team
– ready for growth
RAIL
Global Alliance - PROGRESS RAIL
Cementing relationship across another
CAT core business
SCALABLE BUSINESS MODEL
Multiple revenue sources,
Across multiple markets
COMMERCIAL ROAD TRANSPORT
(after market product)
Large direct market
BEST IN CLASS TECHNOLOGY
With wide applications
- validated by industrial partners
MINING
Global Alliance with CATERPILLAR
Driving Ongoing Growth
Copyright Seeing Machines Limited |
Slide 26 of 33
Appendices
•  FY14 Financial Detail and Trends
Copyright Seeing Machines Limited |
Slide 27 of 33
FY14 Revenue
Revenue (A$m)
2014 Revenue Mix (A$m)
$20.0
$17.8
$18.0
$16.0
$14.0
Core Tech
A$1.0m
$12.7
FaceLab /
API
A$1.3m
$12.0
$10.0
$8.0
$7.8
$6.0
DSS
A$14.5m
$4.0
$2.0
$0.0
2012
2013
2014
Copyright Seeing Machines Limited |
Slide 28 of 33
FY14 and historic Profit & Loss
Year ended 30 June (A$000)
2014
2013
2012
Revenue
17,762
12,736
7,824
COGS
-6,743
-4,200
-2,716
Gross Profit
11,019
8,536
5,108
Research and development
-2,553
-1,400
-1,604
Sales and marketing
-4,382
-2,485
-1,883
-867
-812
-746
-5,335
-3,236
-2,608
-585
-49
-2
-13,722
-7,982
-6,843
-2,703
554
-1,735
-0.0041
0.0012
-0.0042
Occupancy & infrastructure
Corporate and administration
Other
Total expenses
Net profit (loss) before & after tax
Earnings per share (A$)
Copyright Seeing Machines Limited |
Slide 29 of 33
FY13 to 14 Operating Profit Bridge
•  Significant revenue growth: 39%
•  Together with new capital allowed for accelerated investment in core technology
•  Resulted in operating loss for FY2014 as we enter new markets
6.0
2.0
FX
General
S&M
R&D
Operating (loss) 2014
-4.0
Sales margin
-2.0
Sales volume
0.0
Operating profit 2013
A$m
4.0
-6.0
Copyright Seeing Machines Limited |
Slide 30 of 33
FY14 and historic Balance Sheet
As at 30 June (A$000)
2014
2013
2012
22,765
835
578
8,457
4,652
1,936
31,222
5,487
2,514
456
382
256
Intangibles
1,289
1,016
480
Total non-current assets
1,745
1,398
736
Total assets
32,967
6,885
3,250
Payables
2,585
2,500
1,487
926
640
534
49
11
79
3,560
3,151
2,100
29,407
3,734
1,150
Cash
Other current assets
Total current assets
Plant & equipment
Provisions – current
Provisions – non-current
Total liabilities
Net assets
Copyright Seeing Machines Limited |
Slide 31 of 33
FY14 and historic Cash Flow
Year Ended 30 June (A$000)
2014
2013
2012
14,640
9,781
6,971
1,164
1,009
758
-21,028
-11,576
-8,721
-5,224
-786
-992
Net payments plant and equipment
-163
-256
-23
Net payments intangibles
-448
-629
-56
Cash from investing
-611
-885
-79
Net cash from issue of shares /other
28,029
1,923
0
Cash from financing activities
28,029
1,923
0
Net movements
22,194
252
-1,071
Cash – closing balance
22,765
835
578
Cash receipts from customers
Other cash receipts
Total payments
Cash from operations
Copyright Seeing Machines Limited |
Slide 32 of 33
saves lives
Thank you
V201410009 Copyright Seeing Machines Limited