Member Info for Seeing-2020

Tough decisions were made this week to take $12m from the cost base, $1m per month.

It's not the job to the CEO & CFO to be popular they get paid to make the hard decisions that others might get too emotional to make.

They have my full support and I look forward to hearing more details on the plans when they stand in front of shareholders next week.

Brock, just as well you aren't invested anymore as you can't read a set of accounts.

Don't think investing in a high return share like this is for you.

You have sold up, so don't come on here pretending to be knowledgeable when you are too lazy to read the RNS correctly before talking rubbish.

They have taken out $12m from operational expenses not cost of sales, read your first comment and admit you were wrong rather than trying to find an alternative negative spin.

I'm sure Martin will explain it really slowly for the hard of understanding on Wed, you can then ask him why it wasn't in the half year results.

Financial Results and Outlook - Martin Ive, CFO

You didn't see it in the H2 forecast, because they didn't issue a H2 forecast (laughing emoji).

The cost reduction was completed this week so the savings flow from next week, ie the start of Q4.

$12m (dollars not pounds) annualised, really simple maths $1m a month saving from Q4, which falls directly to the bottom line.

I remember the good auld days when we had quality deramping and people read an RNS before trying to pick holes in it.

Sad really

The savings come from the organisation restructure, which they very clearly state was "commented this month" so pretty obvious you aren't going to see that in accounts to Dec 31st, as it wasn't completed then. It's nothing to do with cost of sales.

"The Company commenced a detailed review of the organisation in December 2024, which was completed this month, and has led to a strategic reorganisation of the Company's management structure and the Executive Team. As a result of the consolidated changes over the review period, Seeing Machines has reduced annualised operating expenses by ~US$12 million, significantly reducing its ongoing cost base"

I am sure he added some value to the board over the years, but personally I am not a fan of a seat on the board just because they represent a large shareholder.

My view is board members should be chosen for their individual skills and attributes

The actions announced today create a $1m improvement in monthly cashflow runrate immediately.

So we enter Q4 FY25 next week with an improved runrate by $1m, so a lot closer to breakeven than we thought we were yesterday.

Well done to Paul & Martin for making the hard decisions, never easy to make headcount reductions, but they needed to control the cost line.

FY24 we had 421 staff, costs of $50m plus super. So looks like they have reduced the paybilll by around 25%.

$12m reduction is very material, takes $1m of the monthly cashburn.

They can't control auto numbers but they have taken action to deal with what they can control.

Organisational Update

The Company commenced a detailed review of the organisation in December 2024, which was completed this month, and has led to a strategic reorganisation of the Company's management structure and the Executive Team. As a result of the consolidated changes over the review period, Seeing Machines has reduced annualised operating expenses by ~US$12 million, significantly reducing its ongoing cost base. Combined with expected increases in Aftermarket revenues and gross margin, as well as anticipated growth in global adoption of DMS as transport safety regulations ramp up in Europe by July 2026, the Board expects that Seeing Machines will achieve a cash flow break-even run rate during the calendar year 2025.

AC,

The event is full as per recent RNS

Please note that the in-person attendance, being held at the offices of Stifel Institutional, is now fully subscribed. The event will also be recorded and made available on the Seeing Machines website.

Extract from the Dec 2021 design win

This program covers an expansive number of vehicle models with mass production scheduled from early 2024 and an initial lifetime value of A$125 million. While representing the largest awarded DMS program to date, there also remains significant upside potential based on OEM expansion plans. Delivery is via the Company's deeply embedded Driver Monitoring Engine (FOVIO e-DME software library) configured for both driver and occupant state sensing, enabling a rich set of regulated and premium safety and convenience features.

Isb, no is the simple answer.

The Valeo solution is for level 2+, think supercruise or bluecruise, so to support hands off the steering wheel.

Magna mirror is DMS & OMS for Ncap and GSR

Brock, have a word with yourself.

"If i was intending to bid" lol, you are a small PI who sold their small holding, you aren't Warren Buffet

Urban, I will happily admit I was wrong on the timing, I like to use The Big Short analogy, so I am very patient and will wear my village idiot hat until I am no longer wrong.

I wouldn't choose Seeing2030 as the oracle, back in the day he was Philtronic and I can only assume he got frustrated and bored of Filtronic and sold as a bitter man, it has since 20 bagged. I can only hope he sells SEE also and something similar happens

Breaking, are we married?

The popular view in my house is I am the village idiot, and at 2p I remain the holder of that crown.

A well balanced post by Chris Menon

https://www.safestocks.co.uk/

The business has plenty of cash, they had $40m at end of Dec so no need to take on more investment.

What are the serious issues you mention?

David, 20p is the performance target for him to receive his shares

Latest from CB.

https://www.linkedin.com/posts/colin-barnden-1081376_gtc25-adas-autonomousdriving-activity-7309151866263646208-VWN3?utm_source=share&utm_medium=member_android&rcm=ACoAAAhWlqEBEaKZMGs9u04O9Y3CNkklo_3oS_4

Seeing2020:

The key management are the CEO and CFO, are they aligned with shareholders?

What do I mean by that, does their personal wealth creation come from their salary or from shares in the Company they run.

1) Martin IVE - CFO

Martin is the easy one, since joining in Nov 22 he has quickly built a very material shareholding, his last purchase on 27th Feb taking his holding to 10.4m shares at an average price of 5.74?

Does he have a large interest in shares in the company? = yes, he is one of the largest PI shareholders.

Does he need the sp to increase? = yes, 167% just to get to breakeven and he didn't invest over A$1m to just get breakeven.

2) Paul McGlone- CEO

The key role in any business, so is he aligned to us for personal wealth creation.

He earns a decent salary and I'm sure it funds a nice lifestyle, but and it's a big but, he works very hard and must have a high level of stress. Does he want to do this forever? Not in my opinion. Does his salary alone provide an exit, not in my opinion.

He has been CEO on a perm basis since July 2019, I'm guessing he had a 5 year exit plan so like many of us he is already here longer than planned.

By my maths he is 60 in 2025, does he want to "be incentivised" by a buyer who buys on the cheap to double his salary or whatever and work until he is 65, not in my opinion. Does he want to be the CEO of a company listed in London and NYC, not in my opinion.

So what does he want? An exit and a long retirement funded by his hard earned shares in the company he has already ran for 6 years.

So, what's his share situation

Current holding (as per FY24 accounts) 9.5m shares, decent amount but less than Martin.

So, the big thing for him are his performance related shares of 25m and his options of 12m.

He gets all this right and he could end up with 46m shares, a just reward for 6 or more likely 7 years as perm CEO.

So what does he need?

He needs the SP to be 20p or above in the 30 trading days to June 2026, or he needs a takeover above 20p before then.

So does he have a material holding, he has a reasonable holding now but not enough to reward him for all his hard work over the years, in my opinion.

So he needs his performance related shares to come good, that makes him fully aligned with shareholders, in my opinion.

He will have an exit strategy, and it will involve an sp that's above 20p, otherwise he has wasted the best years of his career.