Slide 1: FY2020 Half Year Financial Results
Integrated Research Limited (IRI) For personal use only FY2020 Half Year Financial Results February 2020 John Ruthven, CEO Peter Adams, CFO complexity simplified
Slide 2: Key Financial Metrics
Key Financial Metrics Strong results with investments in place to drive sustainable long term performance For personal use only H1 FY2020 Interim NPAT Performance $M Record Interim Revenue and 14 Profit Results 12 10 Revenue up 6% to $53.2 million 8 6 86% of revenue is term recurring; 4 93% maintena
Slide 3: Operational Summary
Operational Summary Milestones to support H2 growth – operational improvements and investments in place to drive H2 growth For personal use only New customer Momentum – 20 new logos H1 NEW SaaS Pipeline 20% platform live supports of licence fees from Beta H2 growth – solid new business customer rene
Slide 4: Results Summary
Results Summary Investments in place for H2 growth For personal use only Dec 2019* Dec 2018 % change Year ending A$M A$M A$M Total revenue 53.2 50.3 6% EBITDA 20.6 20.8 (1%) EBITDA margin 39% 41% EBIT 14.6 15.3 (5%) EBIT margin 27% 30% Profit after tax 11.8 11.7 1% Profit after tax margin 22% 23% Ba
Slide 5: High Quality Revenues
High Quality Revenues Diversified contribution and risk spread For personal use only Licence fees by contract length Major H1 deals across regions and product 70% Product Customer Region Industry Group 60% 50% Fiserv Americas All products Financial Services 40% Capgemini Europe Unified Comms Tech Co
Slide 6: Revenue Analysis - Geographic
Revenue Analysis - Geographic APAC delivers standout growth in H1 For personal use only Asia Pacific Revenue A$M Europe Revenue £M Americas Revenue US$M 10 6 30 8 5 25 4 20 6 3 15 4 2 10 2 1 5 0 0 0 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2
Slide 7: Revenue Analysis - Product
Revenue Analysis - Product Diversified revenue spread across three major product groups For personal use only Unified Communications $M Payments $M Infrastructure $M 40 10 15 30 8 10 6 20 4 5 10 2 0 0 0 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 20
Slide 8: Proforma Subscription Revenue
Proforma Subscription Revenue* For personal use only Unified Communication A$M Payments A$M Infrastructure A$M 30.0 6.0 12.0 25.0 20.0 5.0 4.0 37% 372B 10.0 8.0 15.0 3.0 enterprises card6.0 10.0 2.0 with hybrid UC transactions 4.0 5.0 1.0 2.0 - - - FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 F
Slide 9: Cash Flow
Cash Flow Improved cash receipts from customers Dec 19* Dec 18 Change For personal use only A$M A$M Cash flows from operating activities Cash receipts from customers ex debtor factoring 44.4 38.8 14% Cash receipts from debtor factoring 1.1 2.8 (61%) Significant improvement in Cash receipts from cust
Slide 10: Balance Sheet
Balance Sheet Well positioned to fund growth For personal use only Dec 19 Jun 19 A$M A$M Balance sheet Cash and cash equivalents 7.6 9.3 grossed up $7.3m Trade and other receivables 80.5 72.8 for new lease Intangible Assets 26.4 23.1 accounting All Other Assets 15.6 8.3 standard Total Assets 130.1 1
Slide 11: What does IR do?
What does IR do? Use cases of the problems we solve For personal use only problem complex simple relevant Smart watch payment New technologies add Integrated view across Avoid lost sales failure complexity technologies Card declined Multiple processing Drill down to root cause Faster resolution and
Slide 12: Blue Chip Customer Base
Blue Chip Customer Base Quality customer base is a testament to the superiority of IR’s solutions For personal use only Telecom/IT Financial Other Healthcare Not-for-Profit 12
Slide 13: Supporting Enterprise Customers Evolution to Cloud
Supporting Enterprise Customers Evolution to Cloud On-premise to Cloud – the hybrid journey For personal use only Dominant vendor for Today 25% of UC deployments Support on-premise, SaaS, and on-premise UC, payments, and are cloud based, by 2023 this is hybrid deployments which will be infrastructur
Slide 14: Stories from the Field
Stories from the Field Growth strategies at work For personal use only maintain grow new Fiserv ABSA GSK GlaxoSmithKline contract cross-sell UC/CC; consolidation multi-platform new UC logo; ‘single financial synergies environment; pane of glass’; after FDC acquisition; troubleshoot quality collabora
Slide 15: 2020 Key Drivers
2020 Key Drivers Well placed to deliver sustainable growth – maintain, grow, new For personal use only New SaaS H2 pipeline New business product supports momentum GA Americas New Customer Logos generally available return to expected to exceed Second half growth prior year Support Strong for MS Teams
Slide 16: Appendix
For personal use only Appendix
Slide 17: Company Summary
Company Summary Business highlights Tier One Global Customers For personal use only Founded: 1988 Significant global enterprise customer base across diverse segments, Headquarters: Sydney with >25% of Fortune 500 companies as customers Employees: 270 2019 Revenue: $100.8M (95% offshore) FY2019 NPAT:
Slide 18: Who we are / What we do
For personal use only Who we are What we do IR Capabilities IR is the leading global provider of user Prognosis provides best in class performance experience and performance management management across Unified Communications, solutions for Unified Communications. Payments Contact Centres and Paymen
Slide 19: Revenue Model by Segment
Revenue Model by Segment For personal use only UC & CC Payments Infrastructure Term Recurring License Fees Term Recurring Term Recurring Perpetual Maintenance Fees Recurring Recurring Recurring SaaS Fees Recurring N/A N/A Testing Solutions Part Recurring N/A N/A Consulting Non-Recurring Top 10 custo
Slide 20: Proforma Subscription Revenue
Proforma Subscription Revenue For personal use only Purpose: To provide an alternate view of underlying performance by restating term licence and maintenance revenues on a recurring subscription basis How: • All licence sales from FY2012 to FY2020 were analysed for each region in their natural curre
Slide 21: Proforma Subscription Revenue
Proforma Subscription Revenue For personal use only Interim revenue FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 A$M A$M A$M A$M Infrastructure 10.5 10.2 9.9 10.6 5% -4% -2% 6% Payments 2.4 3.3 3.6 4.9 7% 38% 9% 33% Unified Communications 20.0 21.0 22.9 25.4 13% 5% 9% 10% Subscription revenues 33.0 34.5
Slide 22: Multiple Channels to Market
Multiple Channels to Market Customer “High Touch” Model For personal use only Sales Network Direct: Globl coverage with Fortune 500 Distribution: Direct Sales Indirect Sales Service Provider Sales Alliance Partners Distribution Resellers Service Providers Customers 22
Slide 23: Prognosis Solution Components
Prognosis Solution Components Insightful & effective Value & speed Flexible & Secure For personal use only Proactive end-to-end insights Fast time to value with a small Cloud enabled with secure access across multi-vendor ecosystems footprint and rapid extensibility for visibility anytime anywhere t
Slide 24: Financial Track Record (Interim results)
Financial Track Record (Interim results) Six months ending (A$M): Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 10 year CGR For personal use only Licence fees 10.6 12.3 10.8 13.8 19.7 19.5 23.9 25.6 31.3 33.4 14% Revenue 20.5 22.1 21.5 26.2 33.5 39.4 43.3 45.7 50.3 53.2 11% E
Slide 25: Investment Summary
Investment Summary Driving sustainable long-term performance For personal use only Clear growth Deep customer and Market leading Partnerships with strategies - capability, technology expertise proprietary software – all three major UC product development and execution Prognosis platforms and expand