Jcurve Solutions Limited · ASX:JCS
Jcurve Solutions — Investor Presentation (July 2019)
47 slides from Jcurve Solutions's investor presentation, Jul 30, 2019
Slide 1: Investor Presentation and Market Update Webinar
For personal use only JCurve Solutions (JCS) Investor Presentation and Market Update Webinar 30 July 2019 at 11am www.jcurvesolutions.com ASX: JCS
Slide 2: Disclaimer
JCURVE SOLUTIONS IMPORTANT INFORMATION For personal use only Disclaimer The information outlined in this webinar presentation (“Presentation”) has been prepared by This Presentation should not be considered as the giving of investment advice or JCurve Solutions Limited (“the Company”) and is deliver
Slide 3: Today's Speakers
JCURVE SOLUTIONS INTRODUCTION For personal use only Today’s Speakers Stephen Canning James Aulsebrook Chief Executive Officer Chief Financial Officer stephen.canning@jcurve.com.au james.aulsebrook@jcurve.com.au JCURVE SOLUTIONS INVESTOR PRESENTATION JULY 2019 3 3
Slide 4: Recent ASX Announcements
JCURVE SOLUTIONS RECENT ASX ANNOUNCEMENTS For personal use only ASX: JCS https://www.asx.com.au/ JCURVE SOLUTIONS INVESTOR PRESENTATION JULY 2019 4 4
Slide 5: Summary of ASX Announcement - July 2019
JCURVE SOLUTIONS SUMMARY OF ASX ANNOUNCEMENT - 29 JULY 2019 For personal use only Cash Balance Our Company Financial Performance FY2019 $4.5M $4.8M as at 30 June 2018 as at 30 June 2019 Our preliminary unaudited statutory results are in line with January 2019 guidance released Measure FY2018 Actual
Slide 6: Summary of ASX Announcement - July 2019: Asian Expansion
JCURVE SOLUTIONS SUMMARY OF ASX ANNOUNCEMENT - 25 JULY 2019 For personal use only Asian Expansion Strategy Update Establishment of a delivery centre of excellence to assist with the expansion of JCS operations Singapore The relocation of the JCS CEO, Stephen Canning, to Singapore from August 2019 wi
Slide 7: Summary of ASX Announcement - June 2019 - Updated
JCURVE SOLUTIONS SUMMARY OF ASX ANNOUNCEMENT - 13 JUNE 2019 - Updated Company Presentation For personal use only (*) Modified version to reflect updated financial results JCURVE SOLUTIONS INVESTOR PRESENTATION JULY 2019 7 7
Slide 8: Our History
JCURVE SOLUTIONS OUR HISTORY For personal use only JCurve JCS expands 1997 Stratatel 2008 STE acquires 2013 STE acquires 2016 JCS signs NetSuite 2019 into Asia through Solutions (STE) Founded Phoneware JCurve Solutions Pty Ltd and renames Solution Provider Agreement acquisition of Spectrum Group has
Slide 9: Our Board
JCURVE SOLUTIONS OUR BOARD For personal use only JCurve Solutions Bruce Hatchman David Franks Mark Jobling is led by an Non-Executive Chairman Appointed November 2014 Non-Executive Director & Secretary Appointed September 2014 Non-Executive Director Appointed April 2015 experienced /bruce-hatchman /
Slide 10: Our Team
JCURVE SOLUTIONS OUR TEAM For personal use only JCurve Stephen Canning Chief Executive Officer James Aulsebrook Chief Financial Officer Kate Massey Chief Marketing Officer Solutions Appointed EMT January 2015 /stephengcanning Appointed EMT April 2016 /james-aulsebrook Started at JCS September 2009 &
Slide 11: Our Purpose
JCURVE SOLUTIONS OUR PURPOSE For personal use only The “Why” JCS is a specialist solution provider. Our whole business is based around providing an exceptional customer experience by delivering the best possible solution to our clients Mission Vision through market leading We deliver world-class bus
Slide 12: Our Solutions
JCURVE SOLUTIONS OUR SOLUTIONS For personal use only The “What” We deliver cloud ERP Service TEMS solutions and services that drive improvement in business performance. JCURVE SOLUTIONS INVESTOR PRESENTATION JULY 2019 12 12
Slide 13: Our Principles
JCURVE SOLUTIONS OUR PRINCIPLES For personal use only The ”How” Across all our 01 02 03 04 05 solutions and Simplify Deliver Grow the Leverage scale Live our services, we stick complexity exceptional value of and a lower corporate to 5 principles that to reduce customer customers cost base to values
Slide 14: Enterprise Resource Planning (ERP)
For personal use only Enterprise Resource Planning (ERP)
Slide 15: What is ERP?
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only What is ERP? ERP stands for Enterprise Resource Planning. It is integrated software to manage all aspects of a business. Every business size solutions for large, mid-sized Single and small, fast-growing businesses. Unified Industry-specific f
Slide 16: Our ERP Story / About Oracle NetSuite
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Our ERP Story About Oracle NetSuite • NetSuite is the In 2009, our ERP practice was born, #1 Cloud Business selling a small business edition of Software Suite Globally NetSuite (JCurve ERP). • >16,000 customers In 2016, on becoming a full Net
Slide 17: Our ERP Success
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Our ERP Success JCS awarded Oracle NetSuite New Business Partner of the Year 2018, delivering more • #1 Oracle NetSuite Solution Partner globally by new business to Oracle customer count NetSuite than any other partner in ANZ • 5-star Solutio
Slide 18: Our Model
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Our Model We use the following four key metrics to measure the success of our ERP practice: We acquire new customers, delight them with exceptional customer ARR Deal Size Acquisition Churn experience and a world class product so that they sta
Slide 19: ARR
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only ARR $7,000,000 The annualised contracted recurring $6,000,000 revenue across the ERP contract base. This represents the net licence fees, $5,000,000 plus support. $4,000,000 $7M What is driving ARR growth? Current $3,000,000 annualised • Each
Slide 20: Average Net Income Per New Business Sale
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Average Net Income Per New Business Sale Average Net Income Per New Business Sale (AIPS) $50,000 This is the licence commission received on $45,000 $43K NetSuite edition customers or licence fee $40,000 charged for JCurve ERP customers, plus
Slide 21: Customers by NetSuite ERP Solution Edition
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Customers by NetSuite ERP Solution Edition 700 Customer 600 Number of JCurve ERP Acquisition edition customers 500 Number of NetSuite >600 400 edition customers Total of ERP 300 Since becoming a NetSuite Solution customers Provider in 2016, o
Slide 22: Churn
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Churn 7.5% What has been driving the reduction ERP Churn by Contract Value in long term churn? 16% • Our dedicated support team 14% FY2019 ERP • Our local account management 12% Churn team who are committed to 10% ensuring customers get ongoi
Slide 23: ERP revenue and expenditure
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only ERP sales continue $14,000,000 ERP revenue and expenditure to grow while costs $12,000,000 are flattening $10,000,000 • Our Australian based team is at $8,000,000 peak planned capacity $6,000,000 • Increased use of lower cost-base highly-skil
Slide 24: Focus on Asia opportunities
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only We are focused on Thailand Our Offices opportunities that Cambodia • Sydney will accelerate SAARC Malaysia • Melbourne Singapore • Singapore growth and our Indonesia • Manila profitability Our Territories • Australia JCS Asia • New Zealand Au
Slide 25: Why expand into Asia?
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Why expand into Asia? • We have over 10 years experience • Accelerate our ERP growth. We believe JCS implementing NetSuite, we see an can do exceptionally well in Asia based on: opportunity to bring our expertise – Our credibility as NetSuite
Slide 26: Partner Rollup Acquisition Strategy
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Partner Rollup Acquisition Strategy We are seeking to actively rollup some of the • JCS’ people, processes, systems and smaller NetSuite Solution Partners in Asia our credibility assists the local Solution when there is a compelling investmen
Slide 27: JCS Philippines
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only JCS Philippines We have established a presence in Manila • A talented skills base is available Manila • We have established a delivery centre of excellence in Manila to: – Support our growth in Australia – Support our expansion into Asia – De
Slide 28: The Opportunity: ERP Revenue by Geographic Region
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only The Opportunity ERP Revenue by Geographic region $14,000,000 With the people, product and resources in place in the geographic $12,000,000 locations entered, JCS is well $10,000,000 positioned to leverage the Asian growth opportunity $8,000,0
Slide 29: What to expect
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only What to expect • Continued growth in licenced users as our • Further M&A activity in Asia average customer size increases “In line with JCS’ stated intent to be a • Strengthen our position as diversified technology solutions • Continued growt
Slide 30: Riyo Service Management Software
For personal use only RIYO Service Management Software
Slide 31: What is Riyo?
SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO For personal use only What is Riyo? • Whatever the size of a business, if you need to take a booking, improved customer experience deliver a service at a certain place and time, take payment, then we’ve got it covered allocate and upsell dispa
Slide 32: The Riyo Story
SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO For personal use only Your Business On Demand The Riyo Story • A start up acquired by JCS in June 2018 • JCS completed development of platform • Integration to NetSuite built • Established Riyo team to support our go-to-market • Launched to ex
Slide 33: Who is Riyo for?
SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO For personal use only Who is Riyo for? Businesses that could benefit from Riyo Service businesses that want to: • Specialised Transportation • Modernise the delivery experience for customers • Real Estate Management • Scale their operations •
Slide 34: Key Features of Riyo
SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO For personal use only Key Features of Riyo • Scalable, enterprise • Production tested with grade solution for both B2B and enterprise customers B2C businesses • Disruptive technology that is • Easy integration into existing changing the way or
Slide 35: What to expect
SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO For personal use only What to expect • Growing customer numbers Q1 FY20 • Full marketing launch in Australia Q1 FY20 • Establishment of channel sales FY20 • Launch in to Asia FY20 • Global opportunity Customer Acquisition Strategy • Self Servi
Slide 36: Telecommunication Expense Management Solutions (TEM Solutions)
For personal use only Telecommunication Expense Management Solutions (TEM Solutions)
Slide 37: Our TEM Solutions Story
TELECOMMUNICATION EXPENSE MANAGEMENT SOLUTIONS For personal use only Our TEM Solutions simplify telecom expense management Our TEM Solutions Story • Proprietary owned portfolio of solutions • Original product proposition was to prevent “bill shock” One • TEM Solutions Market has declined for a numbe
Slide 38: TEMS Statutory Profit and Revenue
TELECOMMUNICATION EXPENSE MANAGEMENT SOLUTIONS For personal use only TEMS Statutory Profit (ex impairment) What to expect $2,000,000 $1,500,000 • Ongoing profitable contribution to JCS $1,000,000 • Continued support for TEM solutions • Reducing churn as larger more stable customers make up the major
Slide 39: Key Strategic Priorities
JCURVE SOLUTIONS KEY STRATEGIC PRIORITIES For personal use only Grow ERP in Australia Rapidly Grow JCS in Asia Grow Riyo Faster • Win new business in mid-market • Grow ERP Sales from Singapore • Product enhancements from • Increase upsell to existing office existing customer feedback customers • Gro
Slide 40: Our Focus: Revenue by Product Division
JCURVE SOLUTIONS OUR FOCUS For personal use only What to expect Revenue by Product Division To be a $14,000,000 • Sustained revenue growth in ERP in Australia based diversified $12,000,000 around mid-market technology $10,000,000 • Further expansion in ERP in Asia both organic and solutions through
Slide 41: Team Changes: CEO Relocation
JCURVE SOLUTIONS TEAM CHANGES For personal use only CEO Relocation The relocation of the JCS CEO, Stephen Canning, to Singapore Singapore from August 2019 will allow JCS to: • Rapidly grow its ERP practice in Asia • Investigate growth opportunities including those for Riyo • Further progress several
Slide 42: Diversification: Growth through acquisition
JCURVE SOLUTIONS DIVERSIFICATION For personal use only Growth When looking at potential acquisitions we ask ourselves the following questions: through acquisition 01 02 03 04 JCS continues to seek Does it align to Is it Does it solve Can we do acquisitions that: our purpose? scaleable? a significant
Slide 43: JCS Metrics
JCURVE SOLUTIONS JCS METRICS For personal use only Net operating cash flow Consolidated Revenue 2,000,000 $13,000,000 Our Company 1,500,000 $12,000,000 Performance 1,000,000 $11,000,000 500,000 $10,000,000 How do we measure our overall success? - $9,000,000 2014 2015 2016 2017 2018 2019 Cash Flow -5
Slide 44: JCS Metrics: FY2019 Performance
JCURVE SOLUTIONS JCS METRICS For personal use only Cash Balance Our Company Performance FY2019 $4.5M $4.8M as at 30 June 2018 as at 30 June 2019 Our preliminary unaudited results are in line with January 2019 guidance released Measure FY2018 Actual FY2019 Updated Guidance FY2019 Preliminary Unaudite
Slide 45: Overall Summary: Capital Structure and Shareholders
JCURVE SOLUTIONS OVERALL SUMMARY For personal use only Capital Structure and Shareholders As at 30/6/2019 Ordinary Fully Paid Shares as at 30/6/2019 Units % of Units Key Statistics (ASX: JCS) unless otherwise stated Directors and Executive Interests 65,839,427 20.08% Share Price $0.034 Other Top 20
Slide 46: Our Investor Proposition
JCURVE SOLUTIONS OUR INVESTOR PROPOSITION For personal use only Summary Strong Financial Growth Strong Operational Foundations • Continued organic revenue Fundamentals and profit growth • Growing revenue On current multiples $0.8m • Market trend towards • Strategic relationship EBITDA forecast for F
Slide 47: Contact
For personal use only Stephen Canning James Aulsebrook Chief Executive Officer Chief Financial Officer stephen.canning@jcurve.com.au james.aulsebrook@jcurve.com.au www.jcurvesolutions.com 47