Slide 1: Gentrack Group Ltd (GTK) FY19 Full year results presentation
For personal use only Gentrack Group Ltd (GTK) FY19 Full year results presentation 28 November 2019
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation may contain forward-looking statements. Forward-looking statements often include words such as ‘anticipate’, ‘expect’, ‘plan’ or similar words in connection with discussions of future operating or financial performance. The forward-looking statement
Slide 3: Enterprise software for utilities and airports
ENTERPRISE SOFTWARE FOR UTILITIES AND AIRPORTS For personal use only Gentrack provides software solutions which are deeply embedded and mission critical. • Utilities rely on our billing and customer management platform to lower service costs, maintain compliance and drive innovation, delivering enha
Slide 4: FY19 Financial Summary
FY19 FINANCIAL SUMMARY For personal use only Revenue $111.7m Up 6.9% on FY18 EBITDA $24.8m Down 19.8% on FY18 Adjusted NPAT1 $9.6m Down 31% on FY18 Dividend2 8.0cps Down 42% on FY18 1 Adjusted NPAT – Underlying NPAT before non cash charges related to impairment 4 2 Full year FY19 including final div
Slide 5: Market Dynamics – Utilities
MARKET DYNAMICS – UTILITIES For personal use only Market leading position in New Zealand, Australia and the UK for energy and water billing and customer information Energy Price Caps in the UK and Uncertain UK Political Australia impacting energy retailer profits environment Financial pressure incre
Slide 6: FY19 Headlines
FY19 HEADLINES For personal use only CUSTOMER WINS GROUP RECURRING ANNUALISED COMMITTED REVENUE RECURRING REVENUE 7 New utilities 3 Evolve Assurance upsells $78.2m Full Year Recurring Revenue $59.7m Up 15% year on year based on month 12 Up 22% year on year 3 New airports run rate CA+ RESTRUCTURE UK
Slide 7: Segment Revenue Analysis
SEGMENT REVENUE ANALYSIS For personal use only UTILITIES (NZ$’m) AIRPORTS (NZ$’m) FY19 Revenue FY19 Revenue $88.2M $23.5M Up 3.6% on FY18 Up 22% on FY18 Annual Recurring Annual Recurring Revenue Revenue $67.9m $10.3m Up 26% on FY18 Up 4% on FY18 FY18 FY19 FY18 FY19 7
Slide 8: Segment Geographic Split
SEGMENT GEOGRAPHIC SPLIT For personal use only UTILITIES (NZ$’m) AIRPORTS (NZ$’m) 26% 62% Revenue % by region 9% 17% 18% 24% 24% 8% 9% 3% • Utilities revenue from the UK up 36% on FY18 due to new • Airports revenue from North America up 155% on FY18, driven by customer wins and ongoing projects new
Slide 9: Group NPAT and Divisional Breakdown
GROUP NPAT AND DIVISIONAL BREAKDOWN For personal use only GENTRACK GROUP GROUP NZ$’m • Full impairment of CA+ intangibles and goodwill $14.6m recognised at the half year FY18 FY19 FY18 FY19 FY18 FY19 • Continuing transition to SaaS in utilities influences the overall REVENUE 85.1 88.2 19.4 23.5 104.
Slide 10: UK Market - Billing and Customer Management
UK MARKET - BILLING AND CUSTOMER MANAGEMENT For personal use only FY19 - UK energy meters billed through Gentrack 4 40% E.on, EDF, increased 21% over FY18 to 6.3m (12.1% market share) New UK energy Market Share of Independent UK Npower suppliers commence billing Energy Supplier added Meter Points on
Slide 11: Increasing Revenue per Meter
INCREASING REVENUE PER METER For personal use only SHARE OF FUTURE Cross-sell of additional SaaS capabilities IT SPEND New SaaS capabilities to increases our potential revenue per meter 38% grow share of IT spend % UTILITIES IT SPEND (Gentrack estimate) BILLING AND CUSTOMER MANAGEMENT The number of
Slide 12: Utilities - A Changing Revenue Mix
UTILITIES - A CHANGING REVENUE MIX For personal use only Non-recurring Licence Utilities CRR Increase in annual recurring revenues is up 51% revenue is revenue down 35% down 57% on FY18 on FY18 on FY18 4.2 9.7 15.3 SAAS FIRST 20.5 All new customers in FY19 contracted under subscription model Utiliti
Slide 13: SaaS Revenue Multiplier
SAAS REVENUE MULTIPLIER For personal use only CRR Cumulative SaaS commercial model drives higher recurring revenues in year 5 SaaS revenue in Year 1 SaaS Revenues would than licencing would be 5 years would be 45% lower 2.7x be 1.5x 1 1.5x CUMULATIVE SAAS PRODUCT REVENUE MULTIPLER VS LICENCING • 5 y
Slide 14: Utilities Market Share – Energy
UTILITIES MARKET SHARE – ENERGY UK Energy meter points billed For personal use only by Gentrack TAM: 52m GTK: 6.3m 12% TAM: 1.5m GTK: 0.04m Singapore CIS MARKET OUTLOOK 3% • Customer Information System (CIS) market to reach US$ 2.06B by 20261 New Zealand • CISaaS (Customer Information as a Service)
Slide 15: Airports Highlights
AIRPORTS HIGHLIGHTS For personal use only • Veovo CEO appointed • Three new airports signed: • Mexico City + Passenger • London Luton Predictability • Buenos Aires + Operations • Go live at Orlando Airport (50m PAX) - utilising the Veovo airport operations solution Optimisation • Expansion into Flow
Slide 16: Airports Market Share
16 AIRPORTS MARKET SHARE 20 of Top 100 5-year Veovo Addressable Market of US$3.6B+ For personal use only global airports 1500+ Airports and 60+ Airport Groups rely on Veovo NA TAM: US$900m ROW 14% of airports by EUROPE TAM: US$1400m # (>4M PAX) TAM: US$1200m 3% of airports by # 20% of airports by #
Slide 17: Dividend
DIVIDEND For personal use only • Final dividend of NZ 3.0 cents per share1 declared bringing the full year dividend for NPAT AND DIVIDEND HISTORY FY19 to NZ 8.0 cents per share 13.7cps • Represents 82% FY19 Adjusted NPAT2 12.7cps • Dividend Policy: Dividend payout of at least 11.3cps 11.9cps 8.0cps
Slide 18: Outlook
OUTLOOK For personal use only • Expect FY20 results broadly flat • UK market conditions remain unpredictable • Expect growth in recurring revenue from installed customer base offset by reduction in project revenue • We have contracts with major UK energy utilities with significant long-term growth p
Slide 19: www.gentrack.com
For personal use only WWW.GENTRACK.COM 19
Slide 20: GAAP to Non-GAAP Profit Reconciliation
GAAP TO NON-GAAP PROFIT RECONCILIATION For personal use only 12 Months 12 Months Period NZ$’000 30-Sep-19 30-Sep-18 Reported net profit/(loss) for the period (GAAP) (3,315) 13,870 Add back: net finance expense/(income) 763 1,820 Add back: income tax expense 3,758 6,863 Add back: depreciation and amo
Slide 21: FY20 Results on a Constant Currency Basis
FY20 RESULTS ON A CONSTANT CURRENCY BASIS For personal use only FY18 FY19 FY19 NZ$000 Constant Difference ∆% (NZ$m) (NZ$m) Currency3 Revenue 104,477 111,682 112,650 968 1% Operating Costs 73,521 86,869 (87,805) (936) 1% EBITDA1 30,956 24,813 24,845 32 0% NPAT2 13,869 9,642 9,220 (422) -5% 1 Underlyi