Slide 1: FY20 Results Presentation
aie Eo ec“ US, FY20 Results Presentation eae 24 me 2020
Slide 2: Disclaimer
2 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, an
Slide 3: CEO Welcome
CEO Welcome be serko
Slide 4: Agenda
4 AGENDA Covid-19: CEO Strategic Financial Outlook Serko’s Welcome Updates Summary Statement Response
Slide 5: Covid-19: Serko's Response
5 COVID-19 : SERKOs RESPONSE • For 11 months of the financial year ended 31 March 2020 Serko achieved monthly revenue growth over the prior year. However, in March transactions fell sharply as the Covid-19 pandemic became widespread. • Serko responded by implementing strategies under the themes of “
Slide 6: Strategic Updates
Strategic Updates ax serko
Slide 7: Serko Strategy
SERKO STRATEGY @ Offer premium, integrated global solutions Technology Innovation Grow ARPB Grow average revenue @ per booking (ARPB) by Grow Customer Base offering increased content and moving @ Expand into new territories through customers to Zeno strategic alliances and reach the unserved SME mar
Slide 8: Supporting the Future of Business Travel
8 SUPPORTING THE FUTURE OF BUSINESS TRAVEL
Slide 9: Booking.com Agreement
9 BOOKING.COM AGREEMENT • As announced in October 2019, Booking Holdings’ made a cornerstone investment in Serko and Booking.com expanded its existing agreement with Serko, so that Booking.com can offer and promote Zeno to its business traveller customers. • Serko expects the expanded agreement with
Slide 10: Australasia Market Update
10 AUSTRALASIA MARKET UPDATE • The majority of Serko’s revenues came from Australia and New Zealand domestic bookings. • Year on year booking growth each month through to February 2020. Peak of 24,000 bookings daily bookings in February 2020*. • Gradual decline in bookings in February, followed by s
Slide 11: North America Market Update
11 NORTH AMERICA MARKET UPDATE • We have invested heavily in the Serko Zeno platform for expansion into the North American markets during the year. • Serko had its first live bookings in North America following beta release in September 2019, but in line with our expectations revenue from this marke
Slide 12: FY20 Financial Summary
12 FY20 Financial Summary ‹#›
Slide 13: Performance Dashboard – FY20
13 PERFORMANCE DASHBOARD – FY20 FY20 VS FY19 PROFIT (LOSS) REVENUE ACTIVITY COSTS ($9.4m) 11% 16% 9% 6% 2% 48% 59% NET LOSS AFTER OPERATING RECURRING TOTAL PEAK ATMR 3 TRAVEL R&D COSTS 4 OPERATING TAX REVENUE REVENUE 2 INCOME BOOKINGS EXPENSES $(6.1m) $25.9m $24.1m $26.8m $27.5m* 4.2m $13.6m $37.1m
Slide 14: Net Profit Summary / EBITDAF Reconciliation
14 NET PROFIT SUMMARY/ EBITDAF RECONCILATION • Revenue of $25.9m up 11% (Slide 15) Net Profit Summary FY20 FY19 change change EBITDAF Reconciliation • Total income (including grants) up 9% to $26.8m $000 $000 $000 % • Operating expenses of $37.1m up 59% (Slide 16) Revenue 25,869 23,361 2,508 11% • E
Slide 15: Revenue Analysis
15 REVENUE ANALYSIS FY20 FY19 • Recurring revenue (excluding Services revenue) at $24.1m up 16%; Revenue and Other Income change change 93% of total operating revenue. by Type $000 $000 $000 % • Travel platform booking revenue up 2% was Covid impacted during Travel platform booking revenue 16,307 15
Slide 16: Operating Expenses / Head Count
16 OPERATING EXPENSES/HEAD COUNT Operating Expenses FY20 FY19 change change • Operating Costs increased by 59% to $37.1m, includes full year of InterplX and expansion costs. $000 $000 $000 % • Remuneration and benefits increased 48% to $19.4m (Head count increases –refer below). Selling and marketin
Slide 17: Research & Development (R&D)
17 RESEARCH & DEVELOPMENT (R&D) R&D Costs FY20 FY19 change change • Total R&D costs increased by $4.4m (48%) over prior year to $13.6m due to investment $000 $000 $000 % into market requirements for the Northern Hemisphere. Total R&D costs (including amounts capitalised) 13,606 9,165 4,441 48% Perce
Slide 18: Outlook Statement
Outlook Statement << serko
Slide 19: FY21 Outlook
19 FY21 OUTLOOK • The business is well positioned for growth when trading conditions improve and the travel industry starts to recover. • Timing, however, remains uncertain. As a result, we are unable to forecast our likely operating revenue for the 2021 financial year with any certainty. • We will
Slide 20: Q&A
Q&A ‹#›
Slide 21: Appendices: Company Snapshot, Definitions
Appendices: Company Snapshot Definitions ‹#›
Slide 22: About Serko
22 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
Slide 23: Serko Products: Zeno Travel, Zeno Expense
23 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
Slide 24: Commercial Model
24 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 2020 a Traveller submits receipts using Serko Expense/Zeno $ Serko Expense customers pa
Slide 25: Historic Measures for Financial Years
25 HISTORIC MEASURES for financial years (31 March) Selected Operational Metrics FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Total revenue growth (%) 27% 39% 55% 27% 9%# 28% 28% 11%# Revenue growth – Travel Platforms (%) 41% 12% 62% 49% 8% 23% 20% 2% Total travel booking transactions (000s) 987 1,107 1,
Slide 26: Definitions
26 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
Slide 27: Thank you
Thank you serko