Serko Ltd. · NZX:SKO

Serko — FY2021 Earnings Presentation

26 slides from Serko's earnings presentation, May 19, 2021

  1. Slide 1: FY21 Results Presentation

    Serko FY?1 Results Presentation 19 May 2021

  2. Slide 2: Disclaimer

    DISCLAIMER • This presentation has been prepared by Serko Limited. All information is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise. • Information in this presentation • is for general information purposes only, and

  3. Slide 3: CEO Welcome

    CEO Welcome be serko

  4. Slide 4: Agenda

    4 AGENDA CEO Financial Strategic Outlook Welcome Summary Updates Statement

  5. Slide 5: FY21 Financial Summary

    5 FY21 Financial Summary

  6. Slide 6: Performance Dashboard – FY21

    6 PERFORMANCE DASHBOARD – FY21 FY21 VS FY20 PROFIT (LOSS) REVENUE ACTIVITY COSTS ($29.4m) -52% -53% -37% -37% -63% -22% 21% NET LOSS AFTER TAX OPERATING RECURRING TOTAL PEAK ATMR 3 TRAVEL R&D COSTS 4 OPERATING REVENUE REVENUE 2 INCOME BOOKINGS EXPENSES $(22.3m) $12.4m $11.3m $16.9m $17.2m 1.57m $10.

  7. Slide 7: Net Profit Summary / EBITDAF Reconciliation

    7 NET PROFIT SUMMARY/ EBITDAF RECONCILATION Net Profit Summary FY21 FY20 change change • Revenue of $12.4m down 52% (Slide 8) EBITDAF Reconciliation $000 $000 $000 % • Total income (including grants) down 37% to $16.9m Revenue 12,420 25,869 (13,449) -52% • Operating expenses of $44.9m up 21% (Slide

  8. Slide 8: Revenue Analysis

    8 Revenue and Other Income FY21 FY20 change change REVENUE ANALYSIS by Type $000 $000 $000 % • Recurring revenue (excluding Services revenue) at $11.3m down 53% Travel platform booking revenue 6,354 16,307 (9,953) -52% and representing 91% of total operating revenue Expense platform revenue 3,997 5,

  9. Slide 9: Operating Expenses / Head Count

    9 OPERATING EXPENSES/HEAD COUNT • Operating Costs increased by 21% to $44.9m Operating Expenses FY21 FY20 change change • Remuneration and benefits at 66% of total operating costs $000 $000 $000 % increased 52% to $29.5m • includes share-based payments of $3.2m which increased Selling and marketing

  10. Slide 10: Research & Development (R&D)

    10 RESEARCH & DEVELOPMENT (R&D) R&D Costs FY21 FY20 change change • Total R&D costs decreased by $3m (-22%) over prior year to $10.6m $000 $000 $000 % • Capitalised development costs included development Northern Hemisphere markets Total R&D costs (including amounts capitalised) 10,633 13,606 (2,973

  11. Slide 11: Strategic Updates

    Strategic Updates a serko

  12. Slide 12: Australasia Market Update

    12 AUSTRALASIA MARKET UPDATE • The majority of Serko’s revenues previously came from Australia and New Zealand domestic bookings. • Total Australasian travel corporate customers using the platform in the financial year were 6,492. • New Zealand trading customers have increased and we are transacting

  13. Slide 13: Transaction Analysis - Australasia

    TRANSACTION ANALYSIS - AUSTRALASIA Australasia Transactions as % of Prior Year* • Travel volumes have recovered from a low in April 2020 of 11% to 73% as of March 2021. This has further improved 150% in April 2021 to 84%. New Zealand TMCs • New Zealand total bookings for March 2021 was 149% and 158%

  14. Slide 14: North America Market Update

    14 NORTH AMERICA MARKET UPDATE • We have continued to invest in the Serko Zeno platform for expansion into the North American markets during the current year. • Serko launched a targeted North American Covid programme and TMC community programme to assist Covid affected TMCs and their corporate cust

  15. Slide 15: Booking.com Update

    15 BOOKING.COM UPDATE • In October 2019, Booking Holdings’ made a cornerstone investment in Serko and Booking.com expanded its existing agreement with Serko enabling Booking.com to offer and promote Zeno to its business traveller customers. Booking Holdings has continued to support Serko and partici

  16. Slide 16: Outlook Statement

    Outlook Statement a serko

  17. Slide 17: FY22 Outlook

    17 FY22 OUTLOOK • The business is well positioned for growth when trading conditions improve as the travel industry recovers. • The Booking.com for Business customer migration is anticipated to have a materially positive impact on our revenue for FY22 financial year. • As at 30 April 2021, Serko had

  18. Slide 18: Appendices

    serko

  19. Slide 19: Appendices: Company Snapshot, Definitions

    Appendices: Company Snapshot Definitions

  20. Slide 20: About Serko

    20 ABOUT SERKO FOUNDED IN 2007 Innovative Solutions Market Leader NZX/ASX Listed Serko is a technology company focused on Serko is a leading supplier of travel Serko listed on the New Zealand stock innovative solutions that address the technology solutions for TMCs in Australasia exchange in June 20

  21. Slide 21: Serko Products

    21 SERKO PRODUCTS Zeno Travel Zeno Expense Zeno Travel is an Online Zeno Expense automates Booking Tool (OBT) that the process of corporate corporate travellers use to card and out-of-pocket book flights, trains, hotels, expense submission, rental cars and airport reconciliation and transfers in lin

  22. Slide 22: Serko Strategy

    SERKO STRATEGY @ Offer premium, integrated global solutions Technology Innovation Grow average revenue @ per booking (ARPB) by offering increased Grow Customer Base content and moving @ Expand into new territories through strategic alliances and customers to Zeno reach the unserved SME market serko

  23. Slide 23: Commercial Model

    23 COMMERCIAL MODEL Booking and other fees $ Serko Corporate traveller makes a booking via Serko charges the TMCs a fee per booking Online/Zeno (which varies based on volume). Monthly user fee Year Ended 31 March 2021 a Traveller submits receipts using Serko Expense/Zeno $ Serko Expense customers pa

  24. Slide 24: Historic Measures

    24 HISTORIC MEASURES for financial years (31 March) Selected Operational Metrics FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Total revenue growth (%) 27% 39% 55% 27% 9%# 28% 28% 11%* -52%* Revenue growth – Travel Platforms (%) 41% 12% 62% 49% 8% 23% 20% 2% -61% Total travel booking transactions (00

  25. Slide 25: Definitions

    25 DEFINITIONS • Peak ATMR (Annualised Transactional Monthly Revenue) is a non-GAAP measure. Serko uses this as a useful indicator of recurring revenues from Serko products. It is calculated by annualising the combination travel and expense platform monthly revenues for the most recent non- seasonal

  26. Slide 26: Thank you

    Thank you serko

Serko — FY2021 Earnings Presentation on 6ix