Cosol Limited · ASX:COS
Cosol — H1 FY2024 Earnings Presentation
28 slides from Cosol's earnings presentation, Feb 21, 2024
Slide 1: FY24 H1 Results Presentation
For personal use only FY24 H1 Results Presentation 21 February 2024
Slide 2: Important notices & disclaimer
Important notices & disclaimer USE OF THIS DOCUMENT You must read the following notices before reading or making any use of this document or any information contained in this document. By continuing to read, use or otherwise act on this document, you agree to be bound by the following terms and cond
Slide 3: H1 FY24 Financials & Operating Highlights
For personal use only H1 FY24 Financials & Operating Highlights 3
Slide 4: H1 FY24 Key highlights
H1 FY24 Strong operating result – organic and acquisition growth: • Group revenue of $49.1 million (+ 41.5% pcp) Key highlights • EBITDA of $6.5 million (+ 32.5% pcp), • NPAT of $3.6 million (+15.1% pcp) • EPS of 2.18c per share (+1.5% pcp) For personal use only Organic growth, the acquisition of Op
Slide 5: H1 FY24 financial highlights
H1 FY24 financial highlights COSOL’s business delivered mid-teens year-on-year revenue growth with For personal use only Operating EBITDA margin1 of 14.1% Revenue EBITDA NPAT Dividend including investments in capability. $49.1M $6.5M $3.6M 1.00c Group revenue Group EBITDA Group EBITDA NPAT EPS $49.1
Slide 6: H1 FY24 financials: earnings and key metrics
H1 FY24 financials Earnings and key metrics Notes: For personal use only COSOL’s revenue and earnings split has historically skewed to the second half. H2 will • Mid-teens organic revenue growth driven across a combination of Professional Services and include a full 6 months of AssetOn and OnPlan, k
Slide 7: H1 FY24 financials: cash flow and balance sheet
H1 FY24 financials Cash flow and balance sheet Notes: For personal use only Cash flow impacted by timing of payment on 2 major projects, adjusting for $1.9m • Cash conversion and position was impacted by timing of payment of milestone invoices received in January cash conversion would be 92% for the
Slide 8: Revenue by segment – consolidated
Revenue by segment – consolidated Revenue in H1 FY24 more highly weighted to professional services and natural resources revenue due to the acquisition of AssetOn. For personal use only Revenue by Service Revenue by Sector Revenue by Geography 4% 15% 15% 8% 28% 29% 13% 43% 60% 85% Product & Advisory
Slide 9: Margin by service
Margin by service MANAGED SERVICES Revenue from the provision of managed support, hosting services and other services for the clients. Generally, covered by multi-year contracts and minimum spend commitments. Organic revenue growth of 3% over H1 FY23. For personal use only Revenue Share: 28% Gross M
Slide 10: Continuing to deliver strong CAGR growth
Continuing to deliver strong CAGR growth Organic growth, plus strategic acquisitions accretive to earnings, that deliver revenue synergies and IP have driven sustained growth. For personal use only A$m H1 Revenue H1 EBITDA H1 NPAT H1 EPS (Cents) 6.5 3.6 CAGR: 46.2% CAGR: 32.2% CAGR: 26.4% CAGR: 15.1
Slide 11: Recent contract wins deliver strong recurring revenue
Recent contract wins deliver strong recurring revenue H1 contract wins with DTP, QBuild and HUDBAY in North America demonstrates COSOL’s ability to win long term recurring revenue streams. For personal use only Public Infrastructure Government Natural Resources / Mining • Large government agency in
Slide 12: Strong momentum in North America – largest AM market
Strong momentum in North America – largest AM market COSOL has seen strong growth in North America and recent results demonstrate the value of initial acquisition of AddOns as it has delivered a beachhead into the largest global Asset Management (AM) market. For personal use only H1 FY24 HIGHLIGHTS:
Slide 13: OnPlan driving growth in Annual Recurring Revenue
OnPlan driving growth in Annual Recurring Revenue The acquisition of AssetOn Group including OnPlan demonstrates COSOL’s ability to add to our proprietary suite of IP software and solutions, drive through our client base and increase ARR as a % of revenue. For personal use only OnPlan is a SaaS base
Slide 14: COSOL's organic growth strategy supported by acquisitions
COSOL’s organic growth strategy supported by acquisitions COSOL will continue to pursue accretive acquisitions that accelerates our organic growth. Our focus is on proprietary IP, recurring revenue streams and geographies that provide the greatest revenue synergies. For personal use only DRIVING SCA
Slide 15: Driving sales outcomes through AM professionals
Driving sales outcomes through AM professionals COSOL’s recent acquisitions of AssetOn and WMS provides COSOL with a unique and market-leading access point to the AM sector and a full suite of AM services and solutions. For personal use only BENEFITS OF COSOL’S AM PEOPLE SEGMENT: PLACE ADVISE GROW •
Slide 16: AM market growth drivers
AM market growth drivers The AM market continues to see strong tailwinds as capital intensive industries require asset performance optimisation to reduce capital costs. use only Challenges for capital intensive industries: Digital Transformation trends driving solutions: • Efficient use of capital t
Slide 17: Full year FY24 focus and future outlook
Full year FY24 1 Focus on repeatable and recurring income streams & future outlook Continue to focus on recurring revenue streams driven by our proprietary software and solution set. In particular: • Asset Management as a Service (AMaaS) – providing a remote Asset Management (AM) capability for For
Slide 18: Business Overview
18 For personal use only Business Overview
Slide 19: Company overview
Company overview COSOL is a global provider of end-to-end Asset Management software and solutions that enable asset-intensive organisations to unlock their asset potential. For personal use only We work collaboratively with our clients from across the natural resources, energy and water, infrastruct
Slide 20: Investment Highlights
COSOL’s Core Value Proposition Created a unique offering and strong operating platform globally in a market that is experiencing significant growth trends. For personal use only Investment Highlights A Board and Management team with a proven track record of delivering COSOL has positioned itself as
Slide 21: The history and evolution of COSOL
The history and evolution of COSOL COSOL has been executing on its clearly defined strategy of growing organically at double digits and securing earnings accretive acquisitions that expand its service offering, proprietary IP and geographies. For personal use only DEC 2019 OCT 2020 JUL 2022 COSOL Li
Slide 22: Delivering on strategy
Delivering on strategy Consistent, significant growth in shareholder value since listing in January 2020. Key drivers: organic growth, strategic acquisitions accretive to earnings, revenue synergies from new acquisitions, leveraging IP. For personal use only A$m Revenue EBITDA NPAT EPS (Cents) 75.1
Slide 23: What is Asset Management?
What is Asset Management? Optimising performance of physical assets For personal use only Effective Asset Management requires connecting physical assets with their digital representations to Asset Management (AM) reduce cost, reduce risk and increase productivity. is a systematic approach to optimis
Slide 24: COSOL's unique end-to-end AM solutions
COSOL’s unique end-to-end AM solutions Our cross-functional and technical teams combined with our proprietary software and solutions enables COSOL to offer a technology-led holistic AM. For personal use only AM PEOPLE AM PROCESS AM SYSTEMS AM DATA Operational resourcing and tailored coaching and Ind
Slide 25: Our team has a proven track record in the industry
Our team has a proven track record in the industry COSOL Board and Management are aligned to shareholders interests, collectively holding 35% of the shares on issue. In addition, ex-vendors still working in the business hold an additional 7.5% of issued equity. For personal use only COSOL‘s Board of
Slide 26: COSOL's major clients
COSOL's major clients Our major clients represent some of their industries’ most prominent blue-chip organisations and provide a strong reference point to attract new clients and are critical to their nation’s infrastructure. For personal use only Natural Resources Energy and Water Infrastructure Go
Slide 27: Signature solutions & proprietary software
Signature solutions Asset Management as a Service (AMaaS) EAM as a Service (EAMaaS) & proprietary The complete outsourced solution utilising COSOL's end-to-end AMaaS solution and services. Enables clients to manage risk, the lifecycle With EAMaaS, access your EAM software through a web browser and m
Slide 28: Thank you
For personal use only THANK YOU