Straker Ltd · ASX:STG
Straker — H1 FY2021 Earnings Presentation
14 slides from Straker's earnings presentation, Nov 26, 2020
Slide 1: H1-FY21 Results Presentation
Straker Translations H1-FY21 Results Presentation 26 November 2020 1
Slide 2: Disclosure Statement
Disclosure Statement This presentation is given on behalf of Straker Translations Limited ASX:STG (Company number NZ: 1008867 / AU: ARBN 628 707 399) Information in this presentation: • Is for general information purposes only, and is not an offer or invitation for purchase, • Includes Non-GAAP meas
Slide 3: H1-FY21 Half-Year Highlights
Results H1-FY21 Straker Translations’ acquisitions and synergies drive earnings improvements HALF-YEAR HIGHLIGHTS (All figures are NZ$ unless otherwise stated) ▪ Revenue increases 9% to a record $14.8 million from $13.6 million, lifted by the contribution of acquisitions of NZTC in New Zealand and O
Slide 4: H1-FY21 continuing a strategy built on innovation and growth
Strategy H1-FY21 continuing a strategy built on innovation and growth Use our technology and global services capability to grow our repeat revenue base while Be world leaders in using AI, maintaining high margins humans and automation in the Grow Repeat translation process Revenue AI Driven Technolo
Slide 5: Market & Investment Opportunity
Market & Investment Opportunity During H1-FY21, despite COVID-19 disruption we made significant inroads with our strategy to be a scale disruptor in the US$57 billion translation industry Innovation Index Scale Zone Optimal Zone - Increased our repeat revenue by size and 40 Larger LSPs with percenta
Slide 6: Signed transformational strategic partnership with IBM
Market & Investment Opportunity Signed transformational strategic partnership with IBM ✓ Confirms our strategy of focusing on Enterprise customers ✓ Confirms our strategy of acquiring regional relationships with global enterprises through the acquisition of other language service providers ✓ Validat
Slide 7: M&A Acquisitions driving enterprise growth
M&A Acquisitions driving enterprise growth Completed 7 successful acquisitions and gained access to significant global accounts since 2016 Major European - As we complete acquisitions Global technology automobile we are gaining trusted hardware provider manufacturer supplier relationships with Globa
Slide 8: H1-FY21 Strong Revenue, Solid Cashflows, Gross Margins
Results H1-FY21 Strong Revenue Solid Cashflows 32% $14.8m $0.4m $7.7m Annualised repeat Revenue increases 9% Cash on hand of $7.7 Cash used in operating revenue increased to to a record $14.8 million provides capital activities of $0.4m $28.1m million from $13.6 to fund operations improved by $1.1m
Slide 9: Profit and Loss
For the half-year ended For the half-year ended Profit and Loss 30 September 30 September 2020 2019 $’000 $’000 • Growth in revenue of $1.2m or 9.0% YOY (7% in constant currency) was driven by a strong performances from our recent Revenue 14,805 13,586 acquisitions, NZTC and On-Global, offset by COV
Slide 10: Balance Sheet
30 September 2020 31 March 2020 Balance Sheet $’000 $’000 Current Assets • Trade receivables and other assets: Effective credit management with receivables (including accrued revenue) reduced by 6.4% year Cash and cash equivalents 7,735 11,228 on year despite 9% revenue increase. Trade receivables 4
Slide 11: Cash Flow
For the half-year ended For the half-year ended Cash Flow 30 September 2020 30 September 2019 $’000 $’000 • Operating cash flow increased by 75% to -$0.04m, an Cash flows from operating activities improvement of $1.1m from -$1.5m Receipts from customers 14,725 13,327 • Operating cash was helped by a
Slide 12: Outlook
Outlook ✓ Focus on integrating and onboarding IBM – revenue impact begins in Q4 FY21 and materially so in FY22 ✓ Continued focus on taking advantage of new industry M&A opportunities post COVID-19. Remain confident of closing one deal before the end of FY21. ✓ Marketing and sales campaigns to drive
Slide 13: Glossary
Glossary Adjusted EBITDA Adjusted EBITDA is earnings before depreciation, amortisation, impairments and non-operating expenses. EBITDA is a non-IFRS measure of financial performance. Please refer to the interim report released with this announcement for a reconciliation to reported operating loss be
Slide 14: Thank You
Thank You TRANSLATIONS STG. ASX