Straker Ltd · ASX:STG
Straker — Investor Presentation (November 2022)
17 slides from Straker's investor presentation, Nov 24, 2022
Slide 1: Straker H1-FY23
TIMELINE Straker ASX:STG H1-FY23 1
Slide 2: Financial Highlights for H1
Financial Highlights for H1 • 42% revenue growth to $33m up from $23.3 in H1-FY22 • Growth through a mixture of organic (29%) and acquisitions (13%) • $0.6m Adjusted EBITDA up from ($1m) in H1-FY22 • Gross margins steady at 55.5% • Opex reduction program implemented driven by consolidation and techn
Slide 3: Operating Highlights for H1
Operating Highlights for H1 • Re-signed strategic translation agreement with IBM for a further 3 years • globally) RAY Slack application live in Q3 and being rolled out to IBM users (largest Slack user base • Working on a major MS Teams based translation project with Microsoft • Won new EU contract,
Slide 4: Industry resilient to economic downturns
Industry resilient to economic downturns Large TAM, solid industry growth forecast and an industry that has weathered well through downturns $USD Billions 90 67.5 45 22.5 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Revenue Sources: 2009-2017 CSA Resear
Slide 5: Fragmented industry ripe for consolidation
Fragmented industry ripe for consolidation Fragmented industry that is showing signs of consolidation - Straker a leading player as the top 100 players eat into the market. “The Rest” equals a US$50 billion consolidation opportunity. The Top 100 Las Comprise an Ever-Increasing Share of the Market 10
Slide 6: Business Strategy
Business Strategy A simple but effective playbook backed with industry leading innovation and global scale 1 2 Use organic & inorganic Invest in R&D and develop technology growth channels to acquire based, disruptive solutions customers at a local or regional level to take advantage of changes in th
Slide 7: Examples of our strategy working
Business Strategy Examples of our strategy working Organisation Channel Upside Size increase Moved to global contract in IBM Acquired MSS in 2018 $1m - $10m+ 2020 Fast growing NZ tech company Fuel50 Won organically in 2020 $0 - $500k+ and sales have increased Built technology to enable ECFMG Won org
Slide 8: Who are our customers
Who are our customers Signi cant total customer wallet potential 25 Leading customers 300+ Enterprise customers 10,000+ SME/ Transactional customers 8 fi
Slide 9: Repeating Revenue
Repeating Revenue We have a strong percentage of our revenue linked to contracted master services agreements and SaaS subscription plans SaaS SaaS (Recurring revenue from our RAY Enterprise platform) 11% MSA (Master services agreement in place) Transactional Contract (EU and UN contracted revenue) 3
Slide 10: Investment in innovation
Investment in innovation R&D Focused on revenue growth and higher margins R&D Spend Growth focus areas $5.1m Superapps - Slack Verticals - Legal, Corporate Media H1-FY23 and Teams Medical Non Capitalised R&D Developer tools - In Dev ops - multi Connectors and context software and $3.9m automation re
Slide 11: Consolidated P&L
Consolidated P&L • 42% increase in revenue, of which 29% was organic and 13% acquisition-led growth • Growth in all 3 regions (APAC, EMEA and USA) • APAC growth of 74% led by a strong 1st quarter out of IBM, and EMEA growth of 50%, led by the acquisition of IDEST • Costs (OPEX + COS) growth of 31%,
Slide 12: Consolidated Financial Position
Consolidated Financial Position 2022 2021 • Trade Receivables up 20% - re ecting strong trading conditions • Working capital increases 9% to $12.7m • Net Assets up 3% to $42.4m • Strong cash balance and no debt fl
Slide 13: Consolidated Cash Flows
Consolidated Cash Flows • Receipts from customers were up 58% to $32.0m re ecting revenue growth and improved collections • Operating cash out ow signi cantly reduced (83%) and close to breakeven • $1.7m paid to acquisitions being $1.2m in earn- outs (IDEST - $0.9m, NZTC - $0.3m) and $0.5m to IDEST
Slide 14: Operating leverage delivered from our technology
Operating leverage delivered from our technology Approximate OPEX exit run-rate in Revenue and OPEX trend Q4 based on changes already made 67 Opex changes lowering costs for FY and showing a 56 signi cantly improved OPEX run rate exiting Q4 35 37 31 28 25 20 17.6 13.6 da 3 e 19 20 21 22 ui 2 nc FY F
Slide 15: Outlook
Outlook With current macroeconomic uncertainty and increased volatility in the New Zealand dollar there is a softening outlook in revenue for Q3, though with increasing revenue opportunities in Q4, guidance is unchanged. • Strong pipeline of new initiatives through our R&D focus with a number going
Slide 16: Contact
Contact: CEO - grant@straker.com.au CFO - david.ingram@straker.com.au ASX:STG 16
Slide 17: Disclosure Statement
DISCLOSURE STATEMENT This presentation is given on behalf of Straker Translations Limited ASX:STG (Company number NZ: 1008867 / AU: ARBN 628 707 399) Information in this presentation: • Is for general information purposes only, and is not an o er or invitation for All information in this presentatio