Integrated Research Limited · ASX:IRI
Integrated Research — Shareholder Meeting (November 2020)
22 slides from Integrated Research's shareholder meeting presentation, Nov 25, 2020
Slide 1: Integrated Research Limited Annual General Meeting
Integrated Research Limited Annual General Meeting 25 November 2020 Paul Brandling Chairman
Slide 2: Online Attendees – Question Process
ONLINE ATTENDEES – QUESTION PROCESS When the Question function is available, the Q&A icon will appear at the top of the app To send in a question, click in the ‘Ask a question’ box, type your question and press the send arrow Your question will be sent immediately for review Received
Slide 3: Online Attendees – Voting Process
ONLINE ATTENDEES – VOTING PROCESS When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen To vote simply select the direction in which you would like to cast your vote. The selected option will change colour For Against Abstain There is no submit or s
Slide 4: Paul Brandling, Chairman
Paul Brandling Chairman
Slide 5: Peter Adams, CFO
Pe Peter Adams CFO
Slide 6: Performance Review (A$M)
Performance Review (A$M) Delivering record results 110.9 100.8 24.2 21.2 UP 10% UP OPERATING 14% REVENUE CASH FLOW1 2019 2020 2019 2020 24.1 21.9 22% 22% UP NET PROFIT Consistent NET PROFIT 10% AFTER TAX AFTER TAX MARGIN 2019 2020 2019 2020 31% 7.25c 7.25c 29% DOWN Maintained RETURN ON 2ppt DIVIDEND
Slide 7: Revenue Analysis - Geographic
Revenue Analysis - Geographic APAC consistent growth with solid ROW performance Asia Pacific Revenue A$M Europe Revenue £M Americas Revenue US$M 10 60 20 9 18 50 8 16 7 40 14 6 12 5 30 10 4 8 20 3 6 2 10 4 1 2 0 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 2013
Slide 8: Revenue Analysis - Product
Revenue Analysis - Product Step change: remote working and cashless transactions Unified Communications $M Payments $M Infrastructure $M 70 20 35 60 30 50 15 25 40 20 10 30 15 20 5 10 10 5 0 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017
Slide 9: Proforma Subscription Revenue
Proforma Subscription Revenue* Unified Communication A$M Payments A$M Infrastructure A$M 60.0 12.0 25.0 50.0 10.0 20.0 40.0 8.0 15.0 30.0 6.0 10.0 20.0 4.0 2.0 5.0 10.0 - - - FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Unified Communications Payments up 27%; strong Infrastructure up
Slide 10: Business model evolution
Business model evolution Summary: – No changes to accounting policies – Compliance with International Financial Reporting Standards (IFRS) – New cloud solutions recently released – Cloud revenues expect to grow faster than on-prem revenue – Introduce new SaaS metrics as business becomes more materia
Slide 11: Trading update
Trading update Macro environment YTD Performance 1H considerations Key Success Drivers – Economic – Year to date – A significant – Market growth uncertainty revenue behind proportion of – Expand – Pandemic prior year licence sales addressable conditions – Sales cycles occur in last few market – US e
Slide 12: John Ruthven, CEO & Managing Director
John Ruthven CEO & Managing Director
Slide 13: Building the IR of the future
Building the IR of the future Through innovation acceleration Strategy - continue to build long-term recurring revenues; ־ Leverage structural shift in the market – remote working & cashless payments; with an increased focus on collaboration and payments ־ Transition the business to cloud; lever
Slide 14: Three Market Dynamics
Three Market Dynamics Short-term volatility, long-term growth Collaboration Transactions Cloud Structural Shift to remote working; Accelerated shift to Public cloud spending change 500m global workers digital payments; [Visa to accelerate to 18.8% estimated to be remote reported that their CAGR over
Slide 15: Product Strategy
Product Strategy Accelerate innovation and reduce time to market IR invests 20% of revenue on R&D to drive sustainable growth goal financial outcome scorecard key deliverables Value prioritise investment revenue growth accelerating new SaaS & hybrid to bring new products products to market Velocity
Slide 16: Product Futures
Product Futures Focus on Collaboration & Payments – leverage adjacencies Product line Collaborate Transact Hybrid Platform FY21 H11 Microsoft Teams (hybrid Payments Analytics Agent Technology & cloud) Simple Switch Zoom Integration FY21 H22 Cisco WebEx Real-Time Payments Hybrid Data in Cloud Advance
Slide 17: Customer Mix
Customer Mix Mission critical software – sold to Tier 1 customers Product line Collaborate Transact Infrastructure Customers Partners & Service Providers 17
Slide 18: Customer Demographic
Customer Demographic Mission critical software – sold to Tier 1 customers Product line Collaborate Transact Infrastructure Market size 450m+ UC endpoints1 (F)766.1bn CY202 NonStop servers (noncash transactions) Value proposition Ensuring excellent user Simplifying the Optimizing the experience and c
Slide 19: Customer Case Studies
Customer Case Studies Mission critical software – sold to Tier 1 customers Collaborate Transact Infrastructure Customer Problem Video conferencing Customer experience; Thousands of transactions platform failure or poor payment failures & a second; ATMs, merchant quality declines; 45,000 lanes servic
Slide 20: We are a tribe
We are a tribe Behaviours are values in action 20
Slide 21: Key Success Drivers
Key Success Drivers Maintain the base, grow the base, add new customers Market growth - Move to Cloud - New customers - leverage growth in UC leverage acceleration in accelerate new customer conferencing (complexity) workloads moving to acquisition; leverage and digital payments, Cloud; benefit of h
Slide 22: Integrated Research Limited Annual General Meeting
Integrated Research Limited Annual General Meeting 25 November 2020 www.ir.com
Integrated Research — Shareholder Meeting (November 2020) on 6ix