Connexion Mobility Ltd · ASX:CXZ
Connexion Mobility — Connexion Telematics — Shareholder Meeting (November 2023)
26 slides from Connexion Mobility's shareholder meeting presentation, Nov 16, 2023
Slide 1: 2023 Annual General Meeting Presentation
ASX Announcement 16 November 2023 2023 Annual General Meeting Presentation Melbourne Australia: Connexion Telematics Ltd (“CXZ”, “Connexion” or “the Company”) provides the attached presentation to be delivered to shareholders at the Company’s 2023 Annual General Meeting presentation to be held at 10
Slide 2: Mobility Platform 2023 Annual General Meeting
Mobility Platform 2023 Annual General Meeting For personal use only
Slide 3: Agenda
Agenda 1 Introduction GROUP AGM PRESENTATION For personal use only NOVEM BER 2 023 2 Industry 3 Product & Growth 4 FY23 Results 5 Outlook 6 Q&A 2
Slide 4: Introduction
Introduction For personal use only Connexion Telematics is an enterprise-grade software company servicing the US automotive industry. Our proprietary OnTRAC and Connexion platforms incorporate telemetry, fleet management, contract management, data analytics, and more, to deliver mobility solutions t
Slide 5: What Do We Do?
Connexion helps OEMs and Dealerships to move people, parts and vehicles. What Do We Do? Starting with courtesy transportation, our customers enjoy: • A single platform, from which they can manage all modes of ground transport • Quick reservations and DMS integration, reducing time to rent out vehicl
Slide 6: Customer Landscape
Customer Landscape • Fleet Owners mostly operate a variety of commercial fleets • Connexion focuses on a specific type of fleet owner, being the Franchised Automotive Dealership (franchisee), For personal use only along with the Manufacturer (franchisor) • The US is home to circa 17,000 franchised d
Slide 7: Navigating Industry Trends
Navigating Industry Trends The Connexion to the Future Connexion partners with OEMs and Dealerships to maximise the utilisation of their assets, the profitability of their business units, and to elevate the end-customer experience. This combination is only possible through Connexion’s harnessing of
Slide 8: Product Strategy
Product Strategy For personal use only One Platform, Moving People, Parts, and Vehicles 7
Slide 9: Product Strategy
In Development Product Strategy Future Development Connexion Platform Marketplace For personal use only B2B Core Product Newly Launched Product 3 Sub-1 Sub-2 Sub-1 Sub-2 Consumer B2C Mobility Multi-Year Endeavour, Higher Risk 8
Slide 10: Sources of Growth
Sources of Growth GM Direct-to-Dealer New OEMs & Dealers For personal use only 1. Deepening work with GM’s CTP Team 3. Delivering proprietary and 3rd party 4. Selling the Connexion Platform directly to solutions directly to Dealerships new OEMs and Dealer Groups 2. Adding value to other teams within
Slide 11: FY23 Results
For personal use only 10 FY23 Results
Slide 12: FY23 Operational Performance
FY23 Operational Performance Positives Negatives Lessons & Next Steps For personal use only 1. Significantly expanded team with minimal productivity 1. Trailing internal targets for OEM and Dealer expansion 1. Sales & Marketing efforts highlighted the need for disruption greater product differentiat
Slide 13: Key Trends
Key Trends For personal use only Financially, four key trends drove our FY23 results: 1. Revenue growth from larger new vehicle inventories 2. Revenue growth from Connexion subscriptions 3. Revenue growth from feature delivery 4. Expenditure growth from reinvestment into our Team and Products 12
Slide 14: FY23 Highlights
FY23 Highlights Revenue Cash and Liquid Investments $7,000,000 $4,000,000 $6,000,000 $3,500,000 $3,000,000 $5,000,000 $2,500,000 $4,000,000 $2,000,000 $3,000,000 $1,500,000 $2,000,000 $1,000,000 For personal use only $1,000,000 $500,000 Our P&L exhibits a high degree of operating $- $- leverage typi
Slide 15: Net Profit Before Tax
Net Profit Before Tax Annual Profit before Tax $4,000,000 FY22 - FY23 $3,500,000 +380k +81k $3,000,000 For personal use only +2,306k -100k +461k 2,596k $2,500,000 -420k -261k $2,000,000 -313k $1,500,000 $1,000,000 410k +52k $500,000 $- FY22 Subscription Subscription Fixed-dollar SaaS Service Revenue
Slide 16: DMEPS and Gross Profit
DMEPS and Gross Profit 0.50 DMEPS (USD cents) 0.45 0.40 0.35 0.30 0.25 0.20 0.15 As announced to the ASX on 16 October 2023, 0.10 Management will now present Diluted Maintainable For personal use only 0.05 Earnings Per Share (‘DMEPS’) as a core metric. - FY22 FY23 To best measure return on investmen
Slide 17: Revenue Split
Revenue Split True SaaS 100% 90% 10% 12% 13% 17% 8% 10% 10% 8% 8% 80% 70% 60% 50% 90% 92% 90% 90% 92% 92% 88% 87% 40% 83% 30% Connexion’s prime focus continues to be growing 20% For personal use only its scalable, “true SaaS” business. 10% 0% This focus is reflected in the high percentage of Q1 FY22
Slide 18: Investment Initiatives
Investment Initiatives Growth Spend Connexion is consistently increasing its investment $1,000,000 45% into both R&D and Sales & Marketing, whilst closely $900,000 For personal use only 40% monitoring the return on such spend. $800,000 35% Complementing the previously mentioned DMEPS $700,000 30% me
Slide 19: Capital Management
Capital Management • Long-term Shareholder value is a function of: 1. Operational Management 2. Capital Management • Capital can be allocated to product-based and/or share-based investments. • A strong balance sheet can enable meaningful allocation to both. For personal use only • Reliable “return o
Slide 20: Economic Drivers
Economic Drivers Team Performance For personal use only At last year’s AGM, we presented the three Economic Drivers affecting Connexion’s financial Subscriptions performance, in order of influence. Throughout FY23, the order did not change. FX 19
Slide 21: Economic Drivers: Team Performance
Economic Drivers Team performance remains strong: 1. Significant team expansion with minimal productivity disruption. For personal use only Team expansion of 40%, with new hires primarily technical in nature and performing well shortly after onboarding. 2. Navigating the global challenges of severe
Slide 22: Economic Drivers: Subscriptions
Economic Drivers Subscription gross margin increased materially: 1. Significant growth in subscriptions to the Connexion Platform from H2 FY23. The Connexion Platform is priced on a per For personal use only dealership basis. 2. New vehicle inventory continued to stabilize following the severe impac
Slide 23: Economic Drivers: FX
Economic Drivers Movement from FX sensitivity was relatively low through FY23: For personal use only 1. Continued application of Connexion’s FX Policy performed to expectation. 2. The policy includes a natural hedge of currency-matching assets and operating expenditure to the extent of available fre
Slide 24: Summary
Summary 2 0 23 AG M AGM PRESENTATION • Sixth consecutive profitable year, with record net cash and investments on balance sheet For personal use only NOVEM BER 2 023 • A modest recovery of dealership vehicle inventories continued throughout FY23 • All-time high gross profitability reached in the fin
Slide 25: Outlook
Outlook We believe Connexion’s outlook to be positive for the following reasons: For personal use only From our observations, dealerships are increasingly adopting software to: 1. Improve the customer experience 2. Drive operational efficiency 3. Reduce risk Connexion’s software: 1. Delivers on each
Slide 26: Shareholder Q&A
Mobility Platform For personal use only Shareholder Q&A
Connexion Telematics — Shareholder Meeting (November 2023) on 6ix