Slide 1: 2017 Full Year Results Presentation
For personal use only Appen Limited 2017 Full Year Results Presentation
Slide 2: For personal use only
For personal use only The forward looking statements included in these materials involve subjective judgement and analysis and are subject to significant uncertainties, risks, contingencies, many of which are outside the control of, and are unknown to Appen Limited. In particular, they speak only as
Slide 3: Company snapshot
Company snapshot 166.6 For personal use only Appen is a global leader in the development of high-quality, human annotated datasets for 111.0 machine learning and artificial intelligence. Revenue The company has operations in Australia, the Underlying EBITDA US, the UK and the Philippines 28.1 17.3 A
Slide 4: FY2017 highlights
FY2017 highlights (A$m) Revenue For personal use only 166.6 High growth continues 110.9 • Revenue up 50% to $166.6M • Underlying EBITDA of $28.1M up 62%, statutory EBITDA up 29%2 • Underlying NPAT of $19.7M up 86%, statutory NPAT up 36%3 • Underlying EBITDA margin improvement from 15.6% to 16.9% FY2
Slide 5: Strong divisional performance
Strong divisional performance (A$m) Language Resources revenue up 7% Content Relevance revenue up 72%, For personal use only EBITDA up 110%5 Language Resources Content Relevance 40.4 126.2 37.7 73.2 Revenue Revenue 14.8 EBITDA EBITDA 12.2 22.1 10.5 FY2016 FY2017 FY2016 FY2017 ($Am) ($Am) Revenue gro
Slide 6: Long term customer relationships
Long term customer relationships (A$m) 166.6 For personal use only Leapforce acquisition and new customer wins improve customer distribution 110.9 Multiple projects within each customer lessens point dependency 82.6 Working in multiple data formats at scale: text, 60.5 audio, image and video 50.9 Qu
Slide 7: Leapforce acquisition
Leapforce acquisition For personal use only Acquisition of Leapforce provides concluded in December 2017 Highly automated business through bespoke technology platform. Leapforce FY2017 revenue of $77M with 20 full time employees Platform provides foundation for automation to improve scalability and
Slide 8: New growth drivers
New growth drivers For personal use only Secure data annotation New projects in multiple data formats Secure annotation facility fully implemented Growth in relevance and speech data projects Provides capability to work on confidential Projects in other data formats growing rapidly: projects and/or
Slide 9: High growth continues
High growth continues (A$m) For personal use only % % change Revenue up 50% on 2016 FY2017 FY2016 change constant currency Statutory Results Revenue growth from current and new projects with existing customers and new Language Resources 40.4 37.7 7% 11% customer acquisition Content Relevance 120.2 7
Slide 10: Strong Balance Sheet
Strong Balance Sheet (A$m) For personal use only FY2017 FY2016 Strong balance sheet Cash 24.0 16.5 Increase in cash and receivables relates to increase in revenue volumes and Leapforce Receivables 42.9 21.9 acquisition Other Current Assets 1.2 0.3 Non-current assets include Goodwill of $101M Non-Cur
Slide 11: Strong cash conversion
Strong cash conversion (A$m) For personal use only FY2017 FY2016 Cash balance increased by $8.6m Receipts 157.7 106.8 (excluding FX impact) over 2016 Payments and other (136.8) (90.1) Cash flow from operations remains strong Cash flow from operations before 20.9 16.7 interest and tax Cash balance in
Slide 12: Currency impact
Currency impact (A$m) Revenue For personal use only 61.1 5.5 166.6 Almost all revenue derived offshore, 111.0 most in USD Low currency impact in 2017 FY2016 Currency Neutral Currency Impact FY2017 Growth Underlying EBITDA 12.2 1.4 28.1 17.3 FY2016 Currency Neutral Currency Impact FY2017 Growth 12
Slide 13: AI market and growth strategy
AI market and growth strategy For personal use only AI Market Sales and Marketing Technology $26B to $39B • Continue to provide quality • Leverage existing and investment in 20167 data and service to current Leapforce technology to tech clients improve scalability, speed and cost of data provision •
Slide 14: Appen well positioned for growth
Appen well positioned for growth For personal use only Proven Provider Global presence Scalable operations • Founded in 1996 Seattle Beijing • 374 full time staff Detroit Exeter worldwide • Trusted partner to 8 of San Manila 10 largest global tech Francisco • High staff companies Davao engagement, l
Slide 15: Outlook
Outlook For personal use only Appen is well positioned in a high growth market and is scaling for continued growth and unit cost reductions Long term customer relationships and new customer and project wins support growth and resilience YTD revenue plus orders in hand for delivery in 2018 ~$132M at
Slide 16: Thank you
For personal use only Thank you Mark Brayan, CEO mbryan@appen.com Kevin Levine, CFO klevine@appen.com Leanne Ralph, Company Secretary leanne.ralph@boardworx.net.au appen.com