Title: Interim results for the six months to 31 March 2005
1A new generation of filtering antennas for
wireless devices
Interim results for the six months to 31 March
2005
David Wither Chief Executive Officer Sitkow
Yeung Chief Financial Officer
2Interim highlights
- Turnover increased by 268 to 1.0m (20040.3m)
- 325,000 units shipped (up 563 Y-O-Y)
- Operating loss before exceptional non-recurring
costs of 2.4m (2004 1.9m) - Loss before tax of 2.7m (2004 1.9m)
- Strong demand for Sarantels antennas continues
to outstrip capacity - - New equipment installed
- - Additional equipment ordered to further expand
capacity - Pipeline development for GPS and next generation
market sectors on track - TomTom now using Sarantels antenna in its GPS
receiver - Order book at 31 March 2005 over 2.0m, up 400
year on year
3AIM IPO highlights
- Admission to AIM completed 2 March 2005
- 21,951,220 ordinary shares placed at 82p with
institutions (approx 42 of enlarged share
capital) - Raised 16.7m net of expenses
- Initial market cap of 43.0 million
- Reasons for and benefits of IPO
- To provide additional capital for future growth
- To position Sarantel as a major supplier of
antenna technology - To assist in recruiting and retaining staff
- To fund working capital
- To increase sales and marketing activities
4Company Overview
- Sarantel manufactures revolutionary filtering
antennas for wireless devices - The antennas allow optimal network performance,
with less interference - Superior accuracy and reliability for GPS
- Easy to use omni directional
- Reduced radiation into the body
5Profit and Loss Account
6Revenue growth
7Balance Sheet
8Cash flow
9Operational Review
- Three new IP patent applications
- Commissioning almost complete with new equipment
- Design wins with a number of new customers
including Taiwanese ODM - TomTom now using Sarantels antenna in its GPS
receiver - World class team now in place to help transition
Sarantel from a niche provider to a high volume
supplier
10GPS The Core Market
The GPS market rapid growth and low penetration
rates (lt10)
- Sarantels Core GPS Markets
- PDAs Smartphones
- GPS-enabled mobile phones
- Recreational tracking devices
- Telematics asset tracking devices
- Key Features of Target Market Segments
- Hand-held
- Body-worn
- Small devices
- Mobile users
- Concealed installation
- High incumbent installation cost
Source PA Consulting, ABI Research, Company
Analysis
- Analysis
- SAM greatest in hand-held segments
- PDAs Smartphones will eat into telematics
market - Sarantel antenna offers great cost benefit in
telematics segments
11Satellite Radio
Truly Portable Satellite Radio Products Sarantel
Holds the Key
- US Satellite Radio Market
- 2 players XM Satellite Radio (1) and Sirius
(2) - Both players exceeding subscriber forecasts
- Satellite radio handhelds a large, untapped
opportunity - Early (XM) product suffers from problems directly
solved by Sarantel - What Wins for Sarantel
- Hand and body effects on reception
- Reducing size of radio
- Filtering to increase signal actually received by
radio - Consistency of pattern and gain
Source XM and Sirius filings, Automotive News
and William Blair Company, L.L.C. estimates
- Analysis
- Expect both players to compete hard in handhelds
- High take-rate by dedicated consumers
- Opportunity to increase TAM in fixed mobile
(e.g., automotive) applications - DMB represents similar opportunity
12Outlook
- Strong order book for the remainder of the
financial year - - at 31 March 2005 over 2.0m, up 400 year
on year -
- Growth expected in target markets
- Strong demand for Sarantels antennas continues
to outstrip capacity - - New equipment installed
- - Additional equipment ordered to further expand
capacity - The Board looks to the future with confidence
13Appendix
14Technology Benefits Illustrated
- Small Near-Field Benefits
- Battery power consumption
- Ease of integration
- Low interference
- Antenna Types
- Conventional Patch, PIFA, Whip, Quadrifilar
helix (air core) - Sarantels filtering antenna
15Sarantels Patented Design
Dielectric Core
Helical Track
8
-
18mm
8
-
18mm
Balun
Feed
Feed
Cable
Cable
- 11 core patents with 200 international filings
- The depositing of a 3D pattern on a dielectric
core - The shape of the balun
- The helical track on the core
- The feed cable
- IP is within both design and production
This antenna could be to the 21st century what
the light bulb was to the 20th century Oliver
Leisten, founder of Sarantel Financial Times,
November 9, 2004
16Current Customer Applications
Savox GPS Accessory to Police Radio
Precisa GSM/GPS Phone
Laipac GPS/GSMSecurity Phone
SkyHawke Golf Range Finder
Forward Technology Sportsman Tracking Device
TomTom Mobile phone accessory
Stellus Systems GPS SDIO Card
Royaltek Windows-based GPS PDA
SysOnChip GPS Accessory
MiTAC Windows based GPS PDA
1750 Customers Partners Worldwide
18Potential Benefits - Lower SAR
Twisted loop antenna lowers energy absorbed by
the head by approx 90
SAR Specific absorption rate Published data plus
RFI Ltd Characterisation. IndexSAR supplied the
image
19Advantages for customers
20Advantages for end users
21Customer Quotes
- XMSR
- 'The advantages of Sarantels antenna
are compelling and they offer XMSR
significant integration benefits which will
help accelerate time-to-market for future
products. We were also particularly impressed by
the antennas performance when the portable radio
was held close to the human body. - Vice President, RF Systems, XM Satellite Radio
- Philips
- 'Sarantel's antenna is ideal for small, handheld
or body worn GPS applications where there is no
room for a ground plane. It is also easier to inte
grate than other solutions since no iterative
fine-tuning of the layout is required and this
helped us get results more quickly. - Development Engineer, Philips
- Motorola
- 'Sarantel are very responsive to technical
questions, good to work with on a technical level
and they provide data that Motorola can trust -
honest, good physics.' - Engineering Director, Motorola
22Clear Competitive Differentiation
GPS
Satellite Radio
Wi-Fi/Bluetooth
Market
Examples of Competitors
Mobile voice
Fixed
Fixed
3G
Mobile
3G
Consumer handheld
Automotive
Consumer handheld
Automotive
Antenna Technology
Sarantels filtering antenna
-
Centurion
Whip
Garmin Murata Kyocera
Patch
Antenova Centurion Filtronic
PIFA
Applicable
Partially Applicable
Not Applicable
- Exploiting a new space for filtering antennas
- Poised for domination across emerging growth
markets
23World Class Team