Soco Corporation Ltd · ASX:SOC
Soco — Investor Presentation (February 2023)
26 slides from Soco's investor presentation, Feb 23, 2023
Slide 1: SOCO Corporation Ltd 1H FY23 Results Presentation
SOCO CORPORATION LTD (ASX:SOC) 1H FY23 RESULTS PRESENTATION 23 FEBRUARY 2023 ® 1
Slide 2: • Results overview • About SOCO • Financial performance
• Results overview • About SOCO • Financial performance • Outlook ®
Slide 3: 18th consecutive half year of revenue growth
1H FY23 marks SOCO's 18th consecutive half year of revenue growth. 3
Slide 4: Results overview: continued growth across key metrics
RESULTS OVERVIEW Continued across key metrics Consistent revenue growth 1H FY23 vs. 1H FY22 $10.0m Revenue Operating EBIT3 $8.0m +60.7% +35.4% Growth over PCP2 Growth over PCP $6.0m to $9.3m to $1.4m $4.0m Operating EBITDA1 Underlying NPBT4 $2.0m +34.3% +36.1% Growth over PCP Growth over PCP to $1.6
Slide 5: Results overview: IPO, strategic, operational and growth
RESULTS OVERVIEW Additional Initial Public Offering (IPO) Operational ▪ Oversubscribed initial public offering ▪ Accreditation of SOCO’s management system ▪ 74% of employees now shareholders ISO9001 Quality, ISO27001 Information Security, ISO14001 Environmental and ISO45001 Occupational Health and S
Slide 6: Our mission
Our mission is to elevate our clients, partners, and team to become the heroes of their story, standing shoulder-to- shoulder to help make their big ideas real. 6
Slide 7: Chairman and executives
ABOUT SOCO Chairman Non-Exec Tom Stianos Non-Executive Chairman Currently Chair of Xref Ltd (ASX:XF1) and NED of Gale Pacific Ltd (ASX:GAP); former Chair of Empired Ltd (ASX:EPD) and MD of SMS Management & Technology Ltd (ASX: SMX) with over 30 years' experience in the IT and consulting industry. Ex
Slide 8: Overview of SOCO and what we do
ABOUT SOCO Overview of and what we do Founded in 2013, and operating for 9 years 3-year sustained organic average annual revenue over 61% CAGR SOCO’s consulting teams solve business problems by applying and modernising IT systems to improve business processes Delivers and supports enterprise-grade s
Slide 9: We deliver the promise for our clients
ABOUT SOCO We deliver the promise for our clients MODERN WORKPLACE BUSINESS APPLICATIONS OPERATIONS AND FINANCE DATA AND ANALYTICS Collaboration & communication Integrated and purpose-built Finance and ERP solutions Enabling data-driven decisions Improve productivity and employee From sales and mark
Slide 10: Who we serve
10 ABOUT SOCO Who we serve our woncderiul clients Aus NATIONAL, Aust SUNCORP Vinnies Nae AIRPORT good works OF AUSTRALIA ‘CORPORATION | RioTinto **5ge? ee A . . ccteatef semen jectoral airservices pas Qerarimental. allegeofsurgeors Commission (ALS QUEENSLAND . ee ve 4 AE. si 4 " Wen 42 were TY) ine
Slide 11: Clients spanning different sectors and regions
ABOUT SOCO 1H23 Revenue QLD – 25% We serve a ACT – 67% VIC – 4% NSW – 3% Other – 1% spanning different sectors and regions Pre-approved Australian Government Digital Transformation Digital Marketplace panel Diverse mix of clients in 1H FY23 3% During 1H FY23, clients consistently expanded and key 8%
Slide 12: Profitable in every year since founding
Profitable in every year since being founded 9 years ago with strong and consistent organic growth. 12
Slide 13: We've delivered with consistency
COMPANY FINANCIALS We’ve delivered with consistency 60.7% 35.4% Revenue Operating Revenue Growth EBIT Growth $12.0m $10.0m $9.3m $1.6m $1.38m $1.43m $7.8m $1.4m $8.0m $1.2m $1.05m $6.0m $5.6m $1.0m $0.8m $4.0m $0.6m $2.0m $0.4m 1H22 2H22 1H23 1H22 2H22 1H23 1. Revenue growth is all organic 13 2. Ope
Slide 14: Financial summary
COMPANY FINANCIALS We’ve delivered strong 1H23 1H22 Financial summary ($000’s) ($000’s) Change Revenue 9,302 5,788 60.7% with consistency Operating EBITDA1 1,572 1,170 34.3% Depreciation and amortisation -145 -116 -24.6% Strong and profitable organic revenue Operating EBIT2 1,427 1,054 35.4% growth
Slide 15: Strong balance sheet to support continued growth
COMPANY FINANCIALS Strong 31 Dec 2022 30 June 2022 Balance Sheet ($000's) ($000's) Cash and cash equivalent 4,787 2,807 to support continued growth Trade and other receivables 1,849 1,453 Other assets 179 91 Strong balance sheet with cash on hand Property, plant and equipment 312 314 of $4.8m and no
Slide 16: Reliable cash flow
COMPANY FINANCIALS Reliable 1H23 1H22 Cash Flow ($000's) ($000's) Receipts from customers 9,831 6,198 Payments to suppliers/employees -8,432 -4,305 Cash conversion2 > 95% OCFBIT & IPO expense1 1,399 1,893 Share issue costs (expensed) -680 - Minimal capex, < 1% of revenue in 1H23 Interest -3 -8 Succe
Slide 17: Highly aligned shareholder structure
CORPORATE OVERVIEW SHAREHOLDER STRUCTURE Highly aligned Founders, board, management, and following successful IPO employees. Other shareholders ✓ IPO in December 2022 was well oversubscribed and resulted in 74% of employees becoming shareholders. ✓ > 80% of the register is held by founders, manageme
Slide 18: Reaffirming FY23 EBIT and EBITDA guidance
Reaffirming FY23 EBIT and EBITDA guidance. Underpinned by strong business fundamentals. 18
Slide 19: Momentum continues for sustained growth
COMPANY OUTLOOK Momentum continues with for sustained growth Organic growth Inorganic growth ▪ Continuing to win contracts through ▪ Actively pursuing synergistic referrals, renewals and successful acquisitions that are EPS accretive, tenders and will complement our existing ▪ Opportunity to increas
Slide 20: A bright outlook for FY23 and beyond
COMPANY OUTLOOK A bright for FY23 and beyond After a strong 1H FY23, SOCO is pleased to reaffirm the FY23 pro forma EBIT and EBITDA prospectus forecasts of $3.0M and $3.3M respectively. The sales pipeline continues to show strong performance at all stages of the client acquisition journey, and exist
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Slide 23: How we work: Small packets of work
HOW WE WORK Small. Packets. Of. Work. Discover. Design. A shared understanding of success The vision of the future SOCO's team of experienced Business Analysts Once requirements are agreed, our Solution and User Experience Consultants work closely Architects design a solution specifically for with y
Slide 24: Typical process
BUSINESS MODEL Typical process Client Business Our approaches Solution Problem engagement market • Modernise existing systems, • Existing relationships • Discovery • Delivery business applications, data • RFQ/RFI • Current state analysis • Build solution, configuration systems or ERP • Procurement p
Slide 25: Legal disclaimer
LEGAL DISCLAIMER This presentation is dated 23 February 2023 (Presentation) and has been This Presentation is not a prospectus or other disclosure document prepared by SOCO Corporation Ltd ACN 660 362 201 (Company). Shares under the Corporations Act 2001 (Cth) and will not be lodged with the in the
Slide 26: Contacts
Simon Forth Richard Rouse Chief Executive Officer Corporate Advisor SOCO Corporation Ltd Email: richardrouse@sequoia.com.au Email: simon.forth@soco.com.au Steve Parks Chief Financial Officer SOCO Corporation Ltd Email: steve.parks@soco.com.au