Slide 1: 2024 Annual Meeting Chair and CEO Addresses and Presentation
ASX RELEASE 2024 Annual Meeting Chair and CEO Addresses and Presentation Auckland, 27 August 2024 – Straker Ltd (ASX: STG, ‘Straker’ or ‘the Company’) attaches the Chair and CEO addresses and presentation for Straker’s 2024 Annual Meeting. Authorisation This announcement has been authorised for rele
Slide 2: Address by the Chair, Linda Jenkinson
STRAKER LIMITED – 2024 ANNUAL MEETING Tuesday 27 August 2024 Address by the Chair, Linda Jenkinson My name is Linda Jenkinson, and I am Straker’s Non-Executive Chair. This is my inaugural Annual General Meeting of Straker’s shareholders. I intend on giving a brief review of the key highlights of FY2
Slide 3: Chair address: FY24 financial performance
and we have generated a dramatic improvement in Gross Margins of 950 basis points over the last 2 years. This has been due to technology gains, the integration of acquired business as well as the rapid growth in the Managed Services business. A record Gross Margin allowed us to report a Gross Profit
Slide 4: Share buyback, cash and outlook
Straker shares in particular, to launch and complete a share buyback of 5.2% of Straker’s Issued Capital. Notwithstanding the buyback the Company ended the year with cash of $12.2m and, of course, no debt. Outlook Turning now to our outlook, which is always of keen interest to shareholders and prosp
Slide 5: Straker AGM 2024
TIMELINE For personal use only STRAKER AGM 2024 Thank you for waiting, the presentation will begin shortly 1
Slide 6: Linda Jenkinson, Chair
Linda Jenkinson For personal use only Chair 2
Slide 7: Virtual meeting and voting
For personal use only VIRTUAL MEETING AND VOTING https://meetings.linkgroup.com/STG2024 3
Slide 8: Directors
Directors For personal use only Grant Straker Amanda Cribb Steve Donovan Steve Bayliss James Johnstone Chief Executive Officer Independent Non- Non-Executive Independent Non-Executive and Managing Director Executive Director Non-Executive Director Director Director 4
Slide 9: Agenda
Agenda For personal use only 1. Welcome 2. Chair’s address 3. CEO & Managing Director’s address 4. Q&A 5. Formal business 6. Meeting close 5
Slide 10: Chair's address
For personal use only Chair’s address 6
Slide 11: CEO and Managing Director's address
CEO and Managing Directors address For personal use only 7
Slide 12: Our mission
For personal use only Our mission is to harness the power of human insight and artificial intelligence to drive unparalleled productivity. 8
Slide 13: FY2024 at a glance
FY2024 at a glance For personal use only Delivered Strong Financial Performance ● Achieved $4.5 million in Adj EBITDA ● Generated $50 million in revenue despite challenging macroeconomic conditions ● Reduced operating expenses by $4.5 million, optimizing resource allocation ● Achieved positive free
Slide 14: FY2024 Strategic Achievements - AI Transformation
FY2024 Strategic Achievements - AI Transformation For personal use only Cost Efficiency & Cash Generation Digital Transformation & AI - High gross margins Investment - Reduction in OPEX - Investment in AI R&D - Positive EBITDA - New world leading AI - Generate free cash flow 3 Areas of translation p
Slide 15: Industry remains large and ripe for disruption and consolidation
Industry remain large and ripe for disruption and consolidation For personal use only Data: @CSA Research 11
Slide 16: Industry concentration opportunity
Industry concentration opportunity For personal use only Providers by revenue • Top 100 companies concentrate 25% of revenue • 15-20,000 companies sub US$15 million in 10% revenue 10% • Current technology evolution will lead to Top 10 considerable consolidation Next 90 Rest • 80% represents around $
Slide 17: Industry moats coming down
With industry moats coming down we are taking advantage of the opportunity For personal use only Disruptive AI Verification technology aligns with buyers AI strategy Change in channels – Platform LLMs and Workplace apps moving who owns the content Workplace apps remove need for TMS systems P
Slide 18: Segment analysis – LLM Cycle
VERIFY AI Pro ce ss Flo w Yes Use it For personal use only Segment analysis – LLM Cycle Source does each segment (APE) quality Content meet quality threshold review 3 Can an No LLM make it good enough Trained LLM LLM generates for Quality content Evaluation 1 2 No Yes Send for human Use it verificat
Slide 19: Traditional Translation Workflow
Traditional Translation Workflow Example: 10,000 words into French Machine Translation L Human Translation 0.0005c per word = $5.00 + 10 hours @ $50/hour OR 10,000 x0.05c per word = $500.00 $505.00 straker.ai)}>
Slide 20: Verify Workflow and pricing
For personal use only | Verify t Workflow Example: 10,000 words into French Va Verify (Al only) Pricing $246 51% saving Verify (Al + Human) Pricing $321 36% saving Traditional Translation Pricing $505.00 AlAssisted Translation L AlAssisted Quality Evaluation L AlAssisted Quality Boost L Human Verifi
Slide 21: AI Workflow Orchestrator
AI Workflow Orchestrator For personal use only Orchestrate enables customers to configure AI workflows that best suit their budgets and expected outcomes by allowing a configuration mix of token and hourly billing for tasks based on quality outcomes.
Slide 22: Teams & Slack Workplace Apps
Teams & Slack Workplace Apps For personal use only
Slide 23: Go to market - a new world of access to customers
Go to market - a new world of access to customers For personal use only Increased marketing to drive channel and ecosystem partner growth AI VERIFY Slack/Teams Managed Services Gap Pro AI VERIFY Toolkit AI and Business Salesforce/Slack Direct approach Partnerships and Conferences ecosystem Powerful
Slide 24: How we are tracking
How we are tracking For personal use only • Swiftbridge – major project with IBM in Japan. • Verify – first round of live customers, technology is working and entering ramp up phase • IBM live with Slack internally, major rollout in place • Joint bid with Salesforce(Slack) for major global customer
Slide 25: Summary & Outlook
Summary & Outlook For personal use only 1. US$50billion plus industry ripe for disruption 2. Unique technology offering ramping up with new customers 3. Network effect eco-systems and partnerships – IBM, Microsoft, Salesforce, Platforms 4. Profitable and significant revenue/customer base to work fro
Slide 26: Business Fundamentals
TIMELINE For personal use only BUSINESS FUNDAMENTALS
Slide 27: Income Statement
For personal use only INCOME STATEMENT 23
Slide 28: Financial Position
For personal use only FINANCIAL POSITION 24
Slide 29: Cash Flow
For personal use only CASH FLOW 25
Slide 30: Outlook
For personal use only OUTLOOK As we transition to new AI growth opportunities, our core focus is on delivering stable Gross Margin with reducing opex, and to be both cash flow and EBITDA positive for the fiscal year 2025. 26
Slide 31: For personal use only
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Slide 32: Formal business
For personal use only Formal business 28
Slide 33: Financial Statements and Reports
FINANCIAL STATEMENTS AND REPORTS For personal use only To receive and consider the Financial Report and Audit Report for the year ended 31 March 2024, all of which are set out in the Company’s 2024 Annual Report. There is no formal resolution required for this item but questions for the Board, CFO o
Slide 34: Resolution 1: Auditors Remuneration
RESOLUTION 1: AUDITORS REMUNERATION For personal use only “To record that BDO Auckland continue in office as the Company’s Auditor and to authorise the Directors to fix the remuneration of BDO Auckland as the Company’s Auditor for the ensuing year.” FOR AGAINST OPEN Number of Votes 23,309,629 111,11
Slide 35: Resolution 2: Election of Director – Ms Linda Jenkinson
RESOLUTION 2: ELECTION OF DIRECTOR – MS LINDA JENKINSON For personal use only “That, Ms Linda Jenkinson be elected as a Director of the Company” FOR AGAINST OPEN Number of Votes 23,424,277 16,489 164,245 Percentages of Votes 99.23% 0.07% 0.70% 31
Slide 36: Re-election of Director – Mr Stephen Donovan
RESOLUTION 3 RE-ELECTION OF DIRECTOR – MR STEPHEN DONOVAN For personal use only “That, Mr Stephen Donovan be re -elected as a Director of the Company” FOR AGAINST OPEN Number of Votes 23,298,769 248,465 64,245 Percentages of Votes 98.68% 1.05% 0.27% 32
Slide 37: Resolution 4: Approval of Additional 10% Placement Capacity
RESOLUTION 4: APPROVAL OF ADDITIONAL 10% PLACEMENT CAPACITY For personal use only “That, pursuant to ASX Listing Rule 7.1A and for all other purposes, Shareholders approve the Company having the additional capacity to issue equity securities up to 10% of the issued capital of the Company (at the tim
Slide 38: Resolution 5: Issue of Options to Director – Grant Straker
RESOLUTION 5: ISSUE OF OPTIONS TO DIRECTOR – GRANT STRAKER For personal use only “That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, Shareholders approve the issue of 165,100 Options and the issue of underlying Shares in respect of the Options, to Grant Straker, the CEO of
Slide 39: Resolution 6: Issue of Options to Related Party – Merryn Straker
RESOLUTION 6: ISSUE OF OPTIONS TO CLOSELY RELATED PARTY TO A DIRECTOR – MERRYN STRAKER For personal use only “That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, Shareholders approve the issue of 78,300 Options and the issue of underlying Shares in respect of the Options, to
Slide 40: Resolution 7: Issue of Options to Director – Linda Jenkinson
RESOLUTION 7: ISSUE OF OPTIONS TO DIRECTOR – LINDA JENKINSON For personal use only “That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, Shareholders approve the issue of 300,000 Options and the issue of underlying Shares in respect of the Options, to Linda Jenkinson, a Direc
Slide 41: Resolution 8: Re-approval of the 2020 LTI ESOP
RESOLUTION 8: RE-APPROVAL OF THE 2020 LTI ESOP For personal use only “That, for the purposes of ASX Listing Rule 7.2, Exception 13(b) and for all other purposes, Shareholders re -approve the adoption of the 2020 LTI ESOP and any issue of Options under the 2020 LTI ESOP for a further three years from
Slide 42: Voting
For personal use only Voting 38
Slide 43: Contact
For personal use only CONTACT CEO - grant@straker.ai CFO - david.ingram@straker.ai 39