Slide 1: FY22 Financial Results Investor Presentation
MARKET RELEASE 18 August 2022 FY22 Financial Results Investor Presentation Please see attached the FY22 Financial Results Investor Presentation. This announcement has been authorised by the Nuix Board. Investor Contact Media Contact Brett Dimon Helen McCombie Head of Investor Relations Citadel-MAGNU
Slide 2: FY22 Financial Results
FY22 FINANCIAL RESULTS JONATHAN RUBINSZTEIN, CHIEF EXECUTIVE OFFICER CHAD BARTON, CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER 18 AUGUST 2022 Nuix Limited
Slide 3: Agenda
2 Nuix Limited FY22 Financial Results AGENDA 1. FINANCIAL RESULTS 2. STRATEGIC HIGHLIGHTS 3. CONCLUDING REMARKS
Slide 4: Nuix's Evolution
3 Nuix Limited FY22 Financial Results NUIX’S EVOLUTION NUIX IS A Executing the plan to return to growth LEADER IN » Deepening customer relationships INVESTIGATIVE » Investing in taking our products to platform solutions ANALYTICS AND » Driving simplicity, scalability and standardisation across proce
Slide 5: Overview
4 Nuix Limited FY22 Financial Results OVERVIEW 1. FINANCIAL RESULTS 2. STRATEGIC REFRESH » In line with recent market update » Turnaround underway » ACV down slightly, revenue and » Significant progress on key EBITDA lower Horizon 1 initiatives » Lift in Research & Development » Horizon 2 projects u
Slide 6: Financial Results
5 Nuix Limited FY22 Financial Results 1 FINANCIAL RESULTS CHAD BARTON, CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER
Slide 7: Financial Results – Overview
6 Nuix Limited FY22 Financial Results FINANCIAL RESULTS – OVERVIEW Key points: » ACV down slightly with lower new business largely offset by net upsell » Statutory revenue lower primarily driven by a lower value of multi-year deals and lower new sales » Cash balance $46.8m » Underlying cash flow pos
Slide 8: FY22 Key Financial Metrics
7 Nuix Limited FY22 Financial Results FY22 KEY FINANCIAL METRICS Annualised Contract Value (ACV)1 Statutory Revenue EBITDA $162.0m $152.3m $12.1m Down 2.3% on FY21 Down 13.5% on FY21 Down 82.0% on FY21 pro forma3 Down 3.7% on constant currency basis2 Down 14.8% on constant currency basis Down 83.7%
Slide 9: Annualised Contract Value (ACV)
8 Nuix Limited FY22 Financial Results ANNUALISED CONTRACT VALUE (ACV) Subscription ACV higher FY22 ACV ACV ($m) $162.0m as at 30/06/22 168.4 165.9 » Total ACV down 2.3% on pcp, down 162.0 159.8 3.7% in constant currency 145.2 28.0 19.1 13.6 13.5 » Subscription ACV1 up 1.1% on pcp, 24.0 representing
Slide 10: ACV by Licence Type
9 Nuix Limited FY22 Financial Results ACV BY LICENCE TYPE Shift from module to consumption ACV by Licence Type SHIFT TO CONSUMPTION 168.4 165.9 162.0 159.8 » Ongoing shift from module-based licences 9% 6% 6% to consumption licences 145.2 5% 6% 2% 2% 7% » Driven by several key customer shifts 11% 14%
Slide 11: Growth in Consumption ACV
10 Nuix Limited FY22 Financial Results GROWTH IN CONSUMPTION ACV Strong growth in both SaaS and non-SaaS consumption FY22 Consumption ACV $28.4m as at 30/06/22 Consumption ACV, including SaaS ($m) » Consumption ACV1 up 40.6% on pcp 28.4 28.1 » Consumption ACV is a subset of +40.6% Subscription ACV »
Slide 12: Regional Performance
11 Nuix Limited FY22 Financial Results REGIONAL PERFORMANCE Asia Pacific up, North America and EMEA down North America EMEA Asia Pacific 52% 27% 21% of of of ACV ACV ACV North America EMEA Asia Pacific • North America ACV down 1.8% on pcp • EMEA ACV down 7.4% on pcp • APAC ACV up 3.9% on pcp • Stron
Slide 13: Statutory Revenue
12 Nuix Limited FY22 Financial Results FY22 Statutory Revenue STATUTORY REVENUE $152.3m Lower year-on-year » Statutory Revenue down 13.5% on pcp, down 14.8% in constant currency1 Statutory Revenue ($m) » Fall driven by lower value of multi- year contracts and lower new sales » Multi-year deals4 down
Slide 14: Research & Development
13 Nuix Limited FY22 Financial Results RESEARCH & DEVELOPMENT LARGE INCREASE IN Material lift in spend supporting key projects 120.0 50% R&D INVESTMENT Total R&D ($m) and R&D as a proportion of total revenue (%) 45% » Material lift in R&D spend on prior year; 100.0 further investment in sustainable
Slide 15: Income Statement
14 Nuix Limited FY22 Financial Results INCOME STATEMENT FY22 FY21 FY22 Change $ millions Change2 Statutory Pro forma1 CC3 CC3 Software Revenue 146.4 171.5 -14.6% 142.7 -16.8% Key points: Other Revenue 5.9 4.6 29.5% 7.3 61.0% » Statutory revenue down 13.5% on FY21, down 14.8% in Total Revenue 152.3 1
Slide 16: EBITDA Waterfall
15 Nuix Limited FY22 Financial Results EBITDA WATERFALL Multi-year deals ($11.9m) New business ($8.9m) 1. Includes Topos trading losses
Slide 17: Cash Flow
16 Nuix Limited FY22 Financial Results CASH FLOW Key points: » Increased investment in Research and Development reflected in software development costs – funded from operational cash flow » Underlying Cash Flow positive in 2H, small fall over FY » Topos acquisition costs and trading losses, as well
Slide 18: Balance Sheet
17 Nuix Limited FY22 Financial Results BALANCE SHEET $ millions, as at 30 Jun 22 30 Jun 21 ASSETS Key points: Cash and cash equivalents 46.8 70.9 » Cash balance $46.8m Trade and other receivables 28.3 28.9 » Decrease in unbilled receivables primarily due to Unbilled receivables 34.3 44.4 lower value
Slide 19: Strategic Highlights
18 Nuix Limited FY22 Financial Results 2 STRATEGIC HIGHLIGHTS JONATHAN RUBINSZTEIN, CHIEF EXECUTIVE OFFICER
Slide 20: Driving Growth
19 Nuix Limited FY22 Financial Results DRIVING GROWTH Focus on customer centricity » Putting our customers and our people at the heart of our decisions » Driving the focus of our great people and technology on solving customers’ highest value/risk SIMPLICITY problems » Honing every aspect of our bus
Slide 21: Multi-Horizon Strategy
20 Nuix Limited FY22 Financial Results MULTI-HORIZON STRATEGY HORIZON 3 Solve for the future THREE HORIZONS Longer-range OF CHANGE HORIZON 2 investment and Differentiate for large prioritisation of innovation pipeline for enterprise new ways to use our HORIZON 1 Medium term growth technologies from
Slide 22: Strategic Goals
21 Nuix Limited FY22 Financial Results STRATEGIC GOALS Customer-centric organisation REACHING Return to strong top-line growth STRATEGIC GOALS TO DRIVE GROWTH Simple structure and processes, with clear accountabilities Great place to work Build trust with our investors
Slide 23: Horizon 1 - Key Initiatives
22 Nuix Limited FY22 Financial Results HORIZON 1 - KEY INITIATIVES New Price Book » New price book effective 1 July » Greater alignment between pricing and value » Supported by increased offering, such as Automation Sales Enablement Optimisation » Global sales process program established to drive st
Slide 24: Horizon 1 - Enablers
23 Nuix Limited FY22 Financial Results HORIZON 1 - ENABLERS Organisational Restructure » New leadership structure enacted to foster greater clarity and accountability by function, with a renewed focus on customer centricity » Sales teams reorganised to drive stronger sales outcomes and efficiencies
Slide 25: Progress on Horizon 1
24 Nuix Limited FY22 Financial Results PROGRESS ON HORIZON 1 HORIZON 1: KEY INITIATIVES AND ENABLERS Significant milestone progress BUILD ON OUR STRENGTHS Commenced In Progress Completed • COMPETITIVENESS New price book Key Initiatives • COMMERCIAL PERFORMANCE Sales enablement optimisation • CUSTOME
Slide 26: Investing for Future Growth
25 Nuix Limited FY22 Financial Results INVESTING FOR FUTURE GROWTH Leveraging Horizon 1 go to market excellence as a foundation for Horizon 2 and 3 growth FY22 FY23 benefit timing (revenue, operational efficiency) FY24 – benefit timing (revenue, operational efficiency) New price book Horizon 1: Sale
Slide 27: Technology Highlights
26 Nuix Limited FY22 Financial Results TECHNOLOGY HIGHLIGHTS Integrated SaaS Platform » Further investment in our future through build-out of SaaS platform, driving value for customers through an integrated experience across the Nuix product suite » Successful development and testing of platform uti
Slide 28: Concluding Remarks
27 Nuix Limited FY22 Financial Results 3 CONCLUDING REMARKS JONATHAN RUBINSZTEIN, CHIEF EXECUTIVE OFFICER
Slide 29: Transformation Journey
28 Nuix Limited FY22 Financial Results TRANSFORMATION TRANSFORMATION JOURNEY JOURNEY UNDERPINNED BY: Significant progress on strategic refresh initiatives • STRATEGIC CLARITY Right people in the right roles • EXECUTION FOCUS • PURPOSEFUL CONNECTIONS Customer and partner relationships remain strong O
Slide 30: Q&A
29 Nuix Limited FY22 Financial Results Q&A
Slide 31: Appendix
30 Nuix Limited FY22 Financial Results APPENDIX
Slide 32: Statutory Revenue Components
31 Nuix Limited FY22 Financial Results STATUTORY REVENUE COMPONENTS Statutory Revenue » Statutory revenue includes the majority of multi-year Subscription Licence Type Regional deal revenue up front; ACV Revenue Revenue Revenue smooths multi-year deal contracts across relevant 152.3 152.3 152.3 year
Slide 33: People
32 Nuix Limited FY22 Financial Results PEOPLE Continued reinvestment into people » Ongoing reinvestment in headcount in line with Employees by Employees by Total Employees strategy Region Function 475 439 » 8% increase in headcount 421 80 » Significant lift in R&D 70 73 headcount to drive key 17% pr
Slide 34: Industry & Regional Diversification
33 Nuix Limited FY22 Financial Results INDUSTRY & REGIONAL DIVERSIFICATION ACV by Industry Group ACV by Region ($m) Global organisation with 168.4 broad client base 165.9 162.0 159.8 » Diversification across 145.2 14% 18% 20% industries and regions 21% 21% 17% 30% 27% 13% 29% 27% 26% 28% 20% 55% 57%
Slide 35: Customers
34 Nuix Limited FY22 Financial Results CUSTOMERS Upfront multi-year deals (% of Total Revenue)1 Diversified customer base Customer Customer 41.6% 40.3% Concentration Tenure » Customer base remains well 25.4% diversified and “sticky” 15.6% » While multi-year deals are proportionally similar, the 25%
Slide 36: Licence Type Implications on Revenue Recognition
35 Nuix Limited FY22 Financial Results LICENCE TYPE IMPLICATIONS ON REVENUE RECOGNITION 1 year licence example 3 year MYD licence example Delivery model Licence type Impact in month 1 Impact in month 1 Subscription licence1 3.6 • $1.2m on-premise module licence – 1 year or 1.2 1.2 1.2 • $3.6m on-pre
Slide 37: Revenue Mix and Licence Types
36 Nuix Limited FY22 Financial Results REVENUE MIX AND LICENCE TYPES Other Revenue Software Revenue Revenue • Subscription Revenue includes Module, (5% FY22 Type (95% FY22 Total Revenue) Total Consumption and Support and Revenue) Subscription Maintenance (S&M) (93% FY22 Total Revenue) Perpetual Soft
Slide 38: Glossary
37 Nuix Limited FY22 Financial Results GLOSSARY 1) Annualised Contract Value (ACV) is an adjusted, non-IFRS measure and does not represent Total Revenue in accordance with AAS or Nuix’s accounting policies or cash receipts from customers. ACV is used by Nuix to assess the total contract value of its
Slide 39: Constant Currency and Pro-Forma Adjustments
38 Nuix Limited FY22 Financial Results CONSTANT CURRENCY AND PRO-FORMA ADJUSTMENTS Constant Currency has been calculated using the below methodology: 1. Constant currency rates are calculated by dividing the total FY21 consolidated AUD revenue associated with a currency by the total FY21 transaction
Slide 40: Disclaimer
39 Nuix Limited FY22 Financial Results DISCLAIMER The material contained in this document is a presentation of general information about Nuix Limited’s activities current as at the date of this presentation (18 August 2022). It is provided in summary and does not purport to be complete. This informa