Slide 1: WiseTech Global FY22 results investor presentation
ASX Announcement: 2022/49 24 August 2022 WiseTech Global FY22 results investor presentation Attached is the FY22 results investor presentation for the year ended 30 June 2022. //ENDS Authorised for release to ASX by David Rippon, Corporate Governance Executive and Company Secretary. Contact informat
Slide 2: FY22 Results
FY22 Results © 2022 WiseTech Global
Slide 3: Our Vision and Our Mission
OUR VISION OUR MISSION To be the operating system To create breakthrough products for global logistics that enable and empower those that own and operate the supply chains of the world
Slide 4: Agenda
Agenda FY2 2 FY 2 2 FI N A N C I A L STR A TE G Y & Q&A A P P E N DI C E S H I GH LI GH TS REVIEW OU TLOOK 3 © 2022 WiseTech Global
Slide 5: FY22 highlights
SECTION 01 FY22 highlights R I C H A R D W H I TE , C E O & FOU N DE R
Slide 6: FY22 – strong financial performance
FY22 – strong financial performance Ongoing growth reflects resilience of business model and strategy through the cycle Total Revenue $632.2m CargoWise revenue $447.9m EBITDA $319.0m ↑ 26% ex FX (↑ 25% incl. FX) ↑ 37% ex FX (↑ 35% incl. FX) ↑ 54% on FY21 on FY21 on FY21 Total revenue growth $124.7m
Slide 7: Market conditions - global supply chain
Market conditions - global supply chain Support sustained demand for our solutions GLOBAL TRADE FREIGHT STRUCTURAL INDUSTRY TRENDS • The volume of merchandise trade rose • Industry-wide disruption continues, • Ongoing investment in integrated 9.8% in 20211 resulting in: global technology that drives
Slide 8: WiseTech Global - FY22 strategic highlights
WiseTech Global - FY22 strategic highlights Strategic progress on the ‘3Ps’ to accelerate delivery of our vision PRODUCT PENETRATION PROFITABILITY • Progress in building out the CargoWise • Five new global rollouts of CargoWise • Strong revenue growth drives further ecosystem in line with our six si
Slide 9: FY22 financial review
SECTION 02 FY22 financial review A NDR E W C A R TLEDG E , CFO
Slide 10: FY22 results
FY22 results Strong financial performance Total revenue A$m FY21 FY22 % change • Total revenue of $632.2m, up 25% on FY21 CargoWise revenue 331.6 447.9 35% • $9.4m FX headwind in FY22 (FY21: $23.4m headwind vs. FY20) Non-CargoWise revenue1 175.9 184.3 5% • Excluding FX headwind, total revenue grew 2
Slide 11: FY22 revenue growth
FY22 revenue growth A$m Total revenue grew $134.2m or 26% ex FX – impacted by $9.4m of FX headwind (FY21: $23.4m) Recurring & non-recurring revenue split CargoWise & non-CargoWise revenue split 17.7 (9.4) 10.1 (9.4) 632.2 632.2 Recurring (8.8) 66.5 FY20 & Prior 9.9 CargoWise (7.7) 116.5 Non-recurrin
Slide 12: Revenue growth drivers
Revenue growth drivers CargoWise recurring revenue delivers 31% CAGR CargoWise recurring revenue growth FY16 to FY22 (constant currency) • 31% CAGR FY16 to FY22 • Significant R&D investment driving long-term growth 632.2 • Revenue growth of $337.1m, ~5X over the last 6 years • Major recurring revenu
Slide 13: Large Global Freight Forwarder rollouts driving revenue growth
Large Global Freight Forwarder rollouts driving revenue growth 43 Large Global Freight Forwarder rollouts are driving long term revenue growth Annual revenue (A$m)1 in constant currency 11 Large Global 32 Large Global Freight Forwarders with rollouts of CargoWise Freight Forwarders ‘In Production’2
Slide 14: FY22 operating expenses
FY22 operating expenses1 % of revenue Expenses (A$m) Operating leverage driving margin expansion Overall operating expenses down 8pp as a % of revenue on FY21 Product design & development (A$m) Sales & marketing (A$m) General & administration (A$m) 20% 19% 19% 21% 17% 20% 20% 18% 15% 13% 13% 14% 10%
Slide 15: FY22 research and development
FY22 research and development Innovation and product development continues to be a priority Investment in innovation and Product investment product development (A$m) • CargoWise investment increased 28%, partially offset by a 21% reduction across non-CargoWise platforms reflecting our strategy to al
Slide 16: FY22 balance sheet
FY22 balance sheet Strong balance sheet and liquidity providing solid platform for future growth Strong liquidity A$m 30 Jun 21 30 Jun 22 • $483.4m in cash and $225m undrawn debt facility Cash 315.0 483.4 • Providing financial flexibility and headroom to fund growth opportunities Receivables 74.1 88
Slide 17: FY22 cash flow performance
FY22 cash flow performance Highly cash-generative business model delivering strong free cash flow Strong operating cash flow % A$m FY21 FY22 change • Operating cash flows were $339.6m (FY21: $229.9m), up 48% on FY21, demonstrating the strength of our highly cash-generative operating model EBITDA 206
Slide 18: Strategy & outlook
SECTION 03 Strategy & outlook RICH A R D W H I TE, CEO & FOUNDER
Slide 19: WiseTech's '3Ps' strategy
WiseTech's ’3Ps’ strategy Strategy delivers sustainable growth through the cycle Vision: To be the operating system for global logistics Need to replace ageing Demand for integrated global software solutions Logistics providers pursuing legacy systems and industry consolidation reduce complexity wit
Slide 20: Development priorities to extend the CargoWise ecosystem
Development priorities to extend the CargoWise ecosystem Continued CargoWise enhancement (1,199 in FY22) - Over $695m invested in R&D since FY18 delivering 4,900+ enhancements 6 CargoWise product development priorities Digital Customs and International Landside logistics Warehouse Neo documents comp
Slide 21: Penetration
Penetration Momentum through existing customer growth & new global rollout wins 5 new global rollouts by Large Global Freight Forwarders1 secured since 1 July 2021: Global rollouts – CargoWise Large Global Freight Forwarders3 • Access World • Brink’s Contracted and in progress of global rollout • Cr
Slide 22: Profitability
Profitability Enhancing operating leverage and supporting growth Streamlining processes Internal development of our Optimizing our integrated Allocating resources and teams existing teams cost structures appropriately Operational efficiency initiatives Strong financial discipline • At our FY20 Resul
Slide 23: FY23 revised EBITDA guidance
FY23 revised EBITDA guidance Continued strong growth outlook FY23 revenue FY23 guidance assumptions 1 CargoWise: revenue growth of ~30% – 35% (excluding FX) $755m – $780m • Continued momentum from FY22 run rate Guidance provided in line with these • 1H/2H revenue more evenly distributed than FY22 43
Slide 24: Strategy execution delivering long-term sustainable shareholder value
Strategy execution delivering long-term sustainable shareholder value 60% EBITDA (A$m) 51% – 53% Revenue (A$m) EBITDA Margin % $755 - $780 50% 500.0 800 50% 700 $385 – $415 $632.2 400.0 41% 35% 35% 40% 600 319.0 $507.5 30% 31% 500 300.0 30% $429.4 30% 400 $348.3 206.7 200.0 20% 300 $221.6 126.7 200
Slide 25: Q&A
SECTION 04 Q&A
Slide 26: Appendices
SECTION 05 Appendices Slides 26. FY23 guidance assumptions and FX 27. Customer growth and low attrition 28. Earnings diversification 29. Revenue growth excluding FX 30. Overview of revenue licensing models 31. Income statement 32. Key operating metrics 33. Reconciliation of statutory expenses to non
Slide 27: FY23 guidance assumptions and FX
FY23 guidance assumptions and FX What is included in the FY23 guidance: FX rates1 vs. AUD FY22 actual FY23 Guidance Foreign Exchange • Retention of existing customers with CargoWise usage growth consistent with historical levels USD 0.74 0.72 • ~75% of FY22 revenue in non-AUD currencies, • New custo
Slide 28: Customer growth and low attrition
Customer growth and low attrition CargoWise1 application suite revenue by customer cohort Increasing adoption by Large Global A$m (last 12 months) 500 Freight Forwarders Top 300 customers now deliver ~75% 450 of CargoWise revenue in FY22 400 350 300 Customers stay and use more 250 <1% attrition ever
Slide 29: Earnings diversification
Earnings diversification FY22 Revenue by customers1 (%) FY22 Revenue by geography2,3 (%) 19% 28% Top 10 largest customers 40% Europe, Middle East & Africa 5% Top 11-20 largest customers Asia Pacific Rest of customers Americas 76% 32% We maintain a diversity of revenue We are a global company with cu
Slide 30: Revenue growth excluding FX
Revenue growth excluding FX A$m FY21 FY22 $ change % change Non- Non- Non- Non- Recurring Total Recurring Total Recurring Total Recurring Total recurring recurring recurring recurring revenue revenue revenue revenue revenue revenue revenue revenue revenue revenue revenue revenue Reported revenue Car
Slide 31: Overview of revenue licensing models
Overview of revenue licensing models Total revenue by license type (A$m) Other revenue $632.2 Recurring revenue (89% of revenue)1 (11% of revenue)1 66.5 One-Time $507.5 On-Demand Licensing Licensing (OTL) OTL & support services 74.2 Revenue 78%1 maintenance 11%1 49.4 11%1 $429.4 75.1 47.4 Module Use
Slide 32: Income statement
Income statement A$m FY21 FY22 Revenue Recurring On-Demand license 383.0 491.6 Recurring OTL maintenance 75.1 74.2 OTL and support services 49.4 66.5 Total revenue 507.5 632.2 Cost of revenues (77.9) (83.3) Gross profit 429.5 548.9 Operating expenses Product design and development (88.8) (96.9) Sale
Slide 33: Key operating metrics
Key operating metrics FY21 FY22 Total revenue growth vs. prior year 18% 25% Recurring revenue – % of total revenue 90% 89% On-Demand license revenue – % of total revenue 75% 78% Gross profit margin 85% 87% Product design & development – % of total revenue 17% 15% Total R&D – % of total revenue 33% 2
Slide 34: Reconciliation of statutory expenses to non-statutory expenses
Reconciliation of statutory expenses to non-statutory expenses A$m FY21 FY22 Cost of Revenues Cost of revenue – statutory 85.6 92.5 Less: Depreciation & amortization 7.6 9.2 Cost of revenues – non-statutory 77.9 83.3 Product design & development Product design & development – statutory 128.9 142.9 L
Slide 35: Reconciliation of underlying NPAT, NPATA and underlying ETR
Reconciliation of underlying NPAT, NPATA and underlying ETR Net Profit after Tax A$m FY21 FY22 (NPAT) NPAT 108.1 194.6 Fair value gain on contingent consideration (2.2) (0.1) Non-recurring tax on acquisition contingent consideration - (12.8) Underlying NPAT1 105.8 181.8 NPAT 108.1 194.6 Fair value g
Slide 36: CargoWise recurring revenue growth drivers
CargoWise recurring revenue growth drivers Details on inclusions in each category of revenue drivers CargoWise recurring revenue growth drivers Growth rate FY16 to FY22 (averages per year) What’s included Growth in users and transactions from Large Global Large Global Freight Forwarder rollouts 12pp
Slide 37: Global rollouts
Global rollouts Reconciliation of CargoWise global rollouts In Production1 Contracted1 Total LGFF1 Top 251 As at 30 June 2021 29 7 36 10 New contracts signed: Access World, Brink’s, Craft - 5 5 1 Multimodal, FedEx, UPS New organic rollouts ‘In Production’: EV Cargo, Ligentia, 5 - 5 - Logistics Plus,
Slide 38: Glossary
Glossary Abbreviation Definition First reference slide A customer attrition measurement relating to the CargoWise platform (excluding any customers on non- Annual Attrition rate - CargoWise platforms). A customer’s users are included in the customer attrition calculation upon leaving i.e. 27 having
Slide 39: Market conditions
Market conditions Range of views on market conditions expected to continue Global supply chains remain under significant pressure due to persistent The continued congestion and dislocation of supply and demand fundamentals in the capacity bottlenecks in ports and congested hinterland infrastructures
Slide 40: Important notice and disclaimer
Important notice and disclaimer Content of presentation for information purposes only Preparation of information Visit wisetechglobal.com/investors All financial information has been prepared and reviewed in accordance with Australian Accounting Standards. Certain financial data included in this pre
Slide 41: wisetechglobal.com/investors
wisetechglobal.com/investors