Serko Ltd. · NZX:SKO
Serko — ASX Small and Mid Cap Conference 2018
18 slides from Serko's conference presentation, Sep 6, 2018
Slide 1: Serko Limited – ASX Small and Mid Cap Conference
For personal use only Serko Limited ASX Small and Mid Cap Conference, 6 September 2018 1
Slide 2: CEO Presentation
For personal use only CEO PRESENTATION Darrin Grafton Chief Executive Officer 2
Slide 3: Presentation Outline
For personal use only PRESENTATION OUTLINE • About Serko • Strategy Overview • FY18 Results Overview • Investment Proposition Summary 3
Slide 4: About Serko
For personal use only ABOUT SERKO • Serko provides innovative cloud based corporate travel and expense technology solutions. • Our purpose is to transform the way businesses manage travel and expenses. • Founded in 2007 by myself, Darrin Grafton and my fellow co-founder, Robert Shaw. • Listed on the
Slide 5: SKO – NZX top performing stock for 2018
SKO – NZX top performing stock for 2018 For personal use only From $1.10 at IPO (June 2014) to a low 25c (April 2017) to NZX top performing stock for 2018 5
Slide 6: For personal use only
Serko is a leading supplier of technology solutions for Travel Management Companies (TMCs) in Australasia and is now expanding into Northern Hemisphere markets with signed global supply arrangements. For personal use only 6
Slide 7: Our Products
For personal use only Our Products 6 7
Slide 8: The Connected Traveller
For personal use only THE CONNECTED TRAVELLER Zeno is a single application to manage travel across every phase of the journey 8
Slide 9: Commercial Model
COMMERCIAL MODEL For personal use only Recurring revenue split Corporate traveller makes a booking via Serko Online/Zeno $ Booking and other fees Year ended 31 March 2018 Traveller submits receipts using Serko Expense/Zeno $ Monthly user fee Travel platform booking revenue 13,283 $ Supplier commissi
Slide 10: Our Strategy
For personal use only OUR STRATEGY ARPB : Average Revenue Per Booking is a non-GAAP measure. 10
Slide 11: Growth Pathways
For personal use only GROWTH PATHWAYS • Serko is still gaining domestic volume through new TMCs as well as new corporates coming on to existing TMCs • Targeting run forward bookings of 5 million by 31 March 2019 • International growth opportunities are very significant • Activating these opportuniti
Slide 12: Strong Track Record of Growth
For personal use only STRONG TRACK RECORD OF GROWTH Selected Operational Metrics FY13 FY14 FY15 FY16 FY17 FY18 Total revenue growth (%) 27% 39% 55% 27% 9% 28% Revenue growth – Serko Online (%) 41% 12% 62% 49% 8% 23% Operating costs (excl depreciation & amortisation) (% change) 35% 62% 105% 13% (10%)
Slide 13: Strong Improvement in All Key Measures
STRONG IMPROVEMENT IN ALL KEY MEASURES @ (PERFORMANCE DASHBOARD sire VS FY17) =_ $2.0m NET PROFIT BEFORE TAX as ‘OPERATING REVENUE RECURRING REVENUE? TOTAL INCOME a PEAK ATM! ri ONLINE BOOKINGS 16% +DECREASE 6% (+) 4DECREASE OPERATING EXPENSES* R&D COSTS? ©. $53m $18.3m $16.4m $19.3m $18.4m 20% $4.9
Slide 14: Maiden Profit
For personal use only MAIDEN PROFIT FYI FYI4 FYIS —-FYI6 EBITDA FYI7 FYI8 Year ended 34 March 2018 2017 change $000 $000 $000 % Revenue 18,279 14,277 4,002 28% Other income 994 1,092 (98) -9% Total income 19,273 15,369 3,904 25% Operating expenses (17,684) (18,763) 1,079 6% Percentage of operating r
Slide 15: Outlook FY19
For personal use only OUTLOOK FY19 GROWTH IN OPERATING REVENUE EXPECTED TO BE IN 20-30% RANGE FY19 EBITDA PROFIT EXPECTED TO BE IN LINE WITH FY18 15
Slide 16: Summary
For personal use only SUMMARY • SaaS based business with high recurring revenue which can achieve economies of scale and good profit margins • Successful in its home markets of Australia and New Zealand • Large opportunity to expand into new territories • Serko has had strong growth and remains focu
Slide 17: Definitions
For personal use only DEFINITIONS • 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
Slide 18: Important Note
For personal use only IMPORTANT NOTE This presentation is given on behalf of Serko Limited. Information in this presentation: • is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in Serko Limited; • should be read i