Slide 1: Annual General Meeting CEO Presentation
For personal use only Appen Limited Annual General Meeting CEO Presentation 26th May 2017
Slide 2: Machine learning – multiple techniques
Machine learning – multiple techniques For personal use only Personal assistants and at-home devices use machine learning in many ways: • Speech recognition to ‘hear’ commands • Conversational understanding to comprehend and clarify commands • Speech synthesis to respond • Various tasks: search, rec
Slide 3: Machine learning – multiple sectors and applications
Machine learning – multiple sectors and applications For personal use only Automotive: Self-driving vehicles eCommerce: search, recommendation and chatbots. Netflix’s recommender drives $1BN in annual revenue Financial services: personalisation and fraud protection Health: Image analysis and diagnos
Slide 4: Machine learning – a very large market & growing fast
Machine learning – a very large market & growing fast For personal use only “Widespread adoption of “45% of all work “Cognitive technologies cognitive systems and activities could be such as robots, artificial artificial intelligence (AI) automated by current intelligence (AI), across a broad range
Slide 5: Appen - strongly positioned to benefit
Appen - strongly positioned to benefit For personal use only Strength Scale Scope • Founded in 1996 • 280 staff worldwide • Worked in 180 • Trusted partner to 8 • Global operations languages and 130 of 10 largest global countries tech companies Seattle Detroit Exeter Beijing • Proficient in speech,
Slide 6: Full year highlights
Full year highlights (A$m) For personal use only Revenue Earnings Strong growth continues: 111.0 17.2 • Revenue up 34% 82.7 13.8 • EBITDA up 24% 8.3 10.5 EBITDA • NPAT up 26% NPAT FY2015 FY2016 FY2015 FY2016 5/26/17 6
Slide 7: High divisional growth
High divisional growth (A$m) For personal use only Language Resources revenue up 18% Content Relevance revenue up 44% Language Resources Content Relevance 37.7 73.2 31.9 50.7 Revenue Revenue 14.8 EBITDA EBITDA 12.5 8.9 10.5 FY2015 FY2016 FY2015 FY2016 • Ongoing demand for speech data • Growing need
Slide 8: Resilient Revenue
Resilient Revenue (A$m) For personal use only 110.9 • Customers include major global technology companies, 82.6 automakers and governments • Quality and importance of 60.5 50.9 Appen’s data and services drives growing and repeat 29.4 33.3 revenue FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Language Re
Slide 9: Margin Improvement
Margin Improvement For personal use only • Volume discounts for major customers dampened margins in 2H • Margins improving: • Productivity improvements from updated processes and systems • Cost control through sourcing crowd workers at different rates • Expect further improvement through 2017 5/26/1
Slide 10: High Growth
High Growth (A$m) For personal use only FY2016 FY2015 % change % change constant • Revenue up 34% on FY2015 currency • Growth from current and new projects Statutory Results with existing customers plus new customer acquisition Language Resources 37.7 31.9 18% • EBITDA* up 24% Content Relevance 73.2
Slide 11: Strong Balance Sheet
Strong Balance Sheet (A$m) For personal use only FY2016 FY2015 • Strong balance sheet. No debt. Cash 16.5 12.7 • Increase in cash reserves and Receivables 21.9 17.3 receivables related to increase in revenue volumes Other Current Assets 0.4 0.3 Non-Current Assets 15.2 11.7 • Final dividend of 3.0 ce
Slide 12: Strong Cash Conversion
Strong Cash Conversion (A$m) For personal use only FY2016 FY2015 • Cash balance increased by $3.7m Receipts 106.8 72.5 over FY2015 Payments and other (90.1) (67.6) • Cash flow from operations Cash flow from operations before significantly improved due to change 16.7 4.9 interest and tax in payable c
Slide 13: Currency Impact
Currency Impact (A$m) For personal use only Revenue EBITDA • Most revenue derived 27.5 0.8 111.0 3.0 0.4 17.2 offshore in USD 82.7 13.8 • Negligible currency impact in 2016 • Strong underlying growth FY2015 Currency Currency FY2016 FY2015 Currency Currency FY2016 Neutral Impact Neutral Impact Growth
Slide 14: Outlook
Outlook For personal use only • YTD revenue plus orders in hand for delivery in FY2017 ~$100m at end April 2017 • Full year outlook for EBITDA growth at 40% to 50% on prior year Outlook susceptible to upside or downside from factors including timing of work from major customers and Australian dollar
Slide 15: Thank you
For personal use only Thank you Mark Brayan, CEO, mbrayan@appen.com Kevin Levine, CFO, klevine@appen.com Leanne Ralph, Company Secretary, leanne.ralph@boardworx.net.au appen.com