Gentrack Group Ltd · NZX:GTK
Gentrack — FY2020 Earnings Presentation
26 slides from Gentrack's earnings presentation, December 2020
Slide 1: Gentrack Group Ltd FY20 Full Year Results
GENTRACK GROUP LTD (GTK) FY20—FULL YEAR RESULTS AS AT 30 SEPTEMBER 2020 Copyright © 2020. This document is the intellectual property of Gentrack. The intended recipient may use this information only for the purpose for which it was supplied, including copying and archiving for internal use. It may n
Slide 2: Disclaimer
DISCLAIMER This presentation may contain forward-looking statements. Forward-looking statements often include words such as ‘anticipate’, ‘expect’, ‘plan’ or similar words in connection with discussions of future operating or financial performance. The forward-looking statements are based on managem
Slide 3: Investor Briefing Agenda
INVESTOR BRIEFING AGENDA • CEO Introduction: Gary Miles • Financial Results: James Spence • Forward-focus: Gary Miles • Q&A 3
Slide 4: CEO Introduction: Gary Miles
CEO INTRODUCTION: GARY MILES Experience: • 25 years in B2B software/services leadership • Founded, ran and exited two successful companies • Served on the executive team at Amdocs (DOX) – global leader Track Record: Technology Innovating while Customer success Turn around infusion operating and grow
Slide 5: Financial Results
FINANCIAL RESULTS James Spence CHIEF FINANCIAL OFFICER 5
Slide 6: FY20 Financial Headlines
FY20 – FINANCIAL HEADLINES 1 REVENUE ARR EBITDA NPAT NET CASH $100.5m $81.3m $12.1m $16.8m ADJUSTED2 STATUTORY $2.4m -$31.7m Down 75% Down from Down 10% on FY19 Up 4.9% on FY19 Down 51% on FY19 on FY19 $3.3m in FY19 Up 263% on FY19 Improved working capital resulting in strong cash generation • Tot
Slide 7: Group Profit and Loss
GROUP PROFIT AND LOSS UTILITIES AIRPORTS GROUP • All segments remain profitable; H2 run-rate improved NZ$’m ‘000 FY19 FY20 FY19 FY20 FY19 FY20 • Comments on revenue/opex/impairments on subsequent slides REVENUE 88.2 81.8 23.5 18.7 111.7 100.5 Personnel Costs 55.5 57.0 11.0 11.7 66.5 68.7 • Other cos
Slide 8: Utilities – Growth in Recurring Revenues
UTILITIES – GROWTH IN RECURRING REVENUES UTILITIES REVENUE FY19 - FY20 (NZ$m ‘000) UTILITIES REVENUE BY GEOGRAPHY FY19 vs FY20 (NZ$m ‘000) $88.2m $81.8m Total Revenue 20.2 10.9 $81.8m United Kingdom 49.0 Down 7.3% on FY19 54.7 23.8 27.9 Annual Recurring 22.6 Revenue Australia FY20 22.7 40.1 CMRR 47.
Slide 9: Airports Remain Profitable
AIRPORTS REMAIN PROFITABLE AIRPORTS REVENUE FY19 - FY20 (NZ$m ‘000) AIRPORTS REVENUE ANALYSIS FY19 - FY20 (NZ$m ‘000) $23.5m Total Revenue 8.2 FY20 $18.7m 13.9 $18.7m Europe 9.9 FY19 8.3 Down 20% on FY19 North 4.6 0.8 Annual Recurring America 7.8 1.7 Revenue CMRR 9.6 $10.4m 1 4.5 7.9 Up 22% Oceania
Slide 10: Overall Expenditure Down in H2
OVERALL EXPENDITURE DOWN IN H2 GROUP COSTS – FY19 - FY20 ANALYSIS (NZ$m ‘000)* Capitalised Development Costs (NZ$m ‘000) • H1 FY20 increase in opex following hiring in FY19/early FY20 • Action taken in March 2020 led to lower personnel costs in H2: -$2.1m $5.1m $3.7m FY19 • Additional cost savings d
Slide 11: Asset Write-Downs
ASSET WRITE-DOWNS Intangible Asset NZ$m Capitalised Software ($4.5m) • Rationalisation of previously capitalised software • Blip: as per H1, the impact of COVID-19 and ongoing uncertainty Goodwill/other on BLIP business, full impairment of the $10.7m intangible asset Blip ($10.7m) carrying value in
Slide 12: Strong Cash Flow in Year
STRONG CASH FLOW IN YEAR • FY20 net cash generation of $12.2m driven by focus on management of receivables and cost control measures $8.6m $19.3m • Capitalisation significantly reduced in FY20: $0.3m $4.0m $2.5m • Low utilisation of $20m debt facility (maturity March 2022) • Improvement in collectio
Slide 13: Outlook Remains Unchanged
OUTLOOK REMAINS UNCHANGED • We will not be providing further FY21 guidance at this stage • The company continues to see market opportunities and will invest to provide market-leading solutions for our customers. We will also continue to invest in new skills and the development of our people in line
Slide 14: Forward-Focus
FORWARD-FOCUS Gary Miles CHIEF EXECUTIVE OFFICER 14
Slide 15: New Leadership
NEW LEADERSHIP Experienced Executive Team New Board appointments Andy Green – Chair Nick Luckock Fiona Oliver Darc Rasmussen Stewart Sherriff 15
Slide 16: A Snapshot of Our Current Markets
A SNAPSHOT OF OUR CURRENT MARKETS Highly dynamic market as investment in renewables NZ New tenders for system modernisation and system modernisations will shape global trends AU New tenders for system modernisation Ongoing financial pressures Increased GTK Service Provider consolidations and on serv
Slide 17: My Aspirations for Gentrack
MY ASPIRATIONS FOR GENTRACK A Technology First Company Constantly Innovating Accelerate the industry's move to the Lead the revolution to cloud and automated operations Cleantech Leading Globally with a Full As a Customer and People Accountability Model Centric Organisation Build, deploy and operate
Slide 18: Our Priority – Return to Growth
OUR PRIORITY – RETURN TO GROWTH • Improve customer service and profitability for existing energy and water customers • Maintain profitability and our position as a loyal, dependable supplier for airports customers • Roll out new solutions to support the dynamic cleantech initiatives of our customers
Slide 19: Q&A
Q&A Copyright © 2020. This document is the intellectual property of Gentrack. The intended recipient may use this information only for the purpose for which it was supplied, including copying and archiving for internal use. It may not be disclosed to third parties without the prior written consent o
Slide 20: Appendices
APPENDICES Copyright © 2020. This document is the intellectual property of Gentrack. The intended recipient may use this information only for the purpose for which it was supplied, including copying and archiving for internal use. It may not be disclosed to third parties without the prior written co
Slide 21: GAAP to Non-GAAP Profit Reconciliation
GAAP TO NON-GAAP PROFIT RECONCILIATION 12 Months 12 Months Period NZ$m 30 Sep 19 30 Sep 20 Reported net (loss)/profit after tax (3.3) (31.7) Add: Net finance expense 0.8 0.4 Less: Income tax (benefit) / expense 3.7 (2.6) Add: Depreciation and amortisation 9.4 12.4 Less: Revaluation and acquisition r
Slide 22: FY20 on a Constant Currency Basis
FY20 ON A CONSTANT CURRENCY BASIS FY20 Constant NZ$m FY19 FY20 Difference ∆% Currency2 Revenue 111.7 100.5 98.1 (2,434) -2% Operating Costs 86.9 88.4 86.4 (2,012) -2% EBITDA1 24.8 12.1 11.7 (422) -3% Statutory NPAT (3.3) (31.7) (31.3) 403 -1% 1. Underlying EBITDA, being earnings before depreciation,
Slide 23: End of Year Global Headcount
END OF YEAR GLOBAL HEADCOUNT 538 557 489 -68 on FY19 FY18 FY20 FY19 • FY20 headcount reduction resulting from the cost review process across the global business in February/March 2020 • Ongoing recruitment for new skills globally to support our technology programme 23
Slide 24: COVID-19: Supporting Our Customers with Proven Tech
COVID-19: SUPPORTING OUR CUSTOMERS WITH PROVEN TECH We delivered fully remote technical, business and project services to customers globally Our people and our technology enabled utilities and airports to continue operating as providers of essential services We enabled our customers to provide hards
Slide 25: Corporate and Social Responsibility
CORPORATE AND SOCIAL RESPONSIBILITY IN THE COMMUNITY This year our teams globally have supported various community initiatives, DIVERSITY AND INCLUSION fundraising for community causes including Gumboot Day to raise awareness of mental illness and suicide, Pink T-shirt day to make a stand against bu
Slide 26: www.gentrack.com
WWW.GENTRACK.COM Copyright © 2020. This document is the intellectual property of Gentrack. The intended recipient may use this information only for the purpose for which it was supplied, including copying and archiving for internal use. It may not be disclosed to third parties without the prior writ