Appen Ltd. · ASX:APX

Appen — H1 FY2015 Earnings Presentation

13 slides from Appen's earnings presentation, Aug 28, 2015

  1. Slide 1: Appen Limited FY2015 First Half Results Presentation

    For personal use only Appen Limited FY2015 First Half Results Presentation

  2. Slide 2: For personal use only

    For personal use only Appen helps leading search and social media companies deliver relevant content and news to their users Appen helps the worlds leading vehicle makers develop hands-free, voice-activated systems for safer driving Appen’s work underpins speech recognition technologies for governme

  3. Slide 3: FY2015 1H Highlights

    For personal use only FY2015 1H Highlights 1H#Revenue#Performance# • Revenue up 33% on 1H FY2014 40,000"" 35,000"" +33%" • EBITDA up 44% on 1H FY2014 30,000"" 25,000"" • NPAT up 28% on 1H FY2014 20,000"" 15,000"" Total"Revenue" 10,000"" • Addressing customer concentration 5,000"" 0"" • Entered socia

  4. Slide 4: Company Overview

    For personal use only Company Overview • Appen founded in 1996. Butler Hill group founded in 1993. Merged in 2011 • Provide high quality language data and services to major technology companies and government agencies worldwide • Customers include 9 of the top 10 global technology companies • 140 la

  5. Slide 5: FY2015 1H Results

    For personal use only FY2015 1H Results FY2015" 1H" FY2014" 1H" %"" change" %"change" constant" • Revenue up 33% on 1H FY2014, mostly due currency" to 52% increase in Content Relevance from new customers and the falling AUD Language"Resources*" 13,064" 11,923" 10%" Content"Relevance" 22,741" 14,978"

  6. Slide 6: FY2015 1H Divisional Results

    For personal use only FY2015 1H Divisional Results FY2015"1H" FY2014"1H" %""change" • Language Resources* revenue up 10% due to ongoing demand from existing customers and the falling AUD Language#Resources*# Revenue" "13,064"" "11,924"" 10%" • Language Resources profit up 15% on Gross"Margin" revenu

  7. Slide 7: Customer Concentration

    For personal use only Customer Concentration 1H#2015# • Substantial new customers in 1H FY2015 1H#2014# have increased revenue and reduced 1%$ 2%$ customer concentration risk 2%$ 1%$ 2%$ 2%$ 8%$ 13%$ 2%$ • Five largest customers now 75% of revenue 2%$ 2%$ 3%$ 40%$ vs. 84% in 1HFY2014 5%$ 3%$ 5%$ • N

  8. Slide 8: Balance Sheet

    For personal use only Balance Sheet FY2015"1H" FY2014" • Strong balance sheet. No debt. • Current assets up due to increase in work-in- Current"Assets" "21,757"" "18,922"" progress for Language Resources customers NonTCurrent"Assets" "11,520"" "11,217"" and change in the timing of receipts from our

  9. Slide 9: Cash Flow

    For personal use only Cash Flow • Healthy cash position FY2015"1H" FY2014"1H" • Cash receipts lower due to: Receipts" 27,737" 28,482" • Early customer receipts of $3.5m paid in late Payments"and"other"" (30,924)" (27,759)" December 2014 Taxes" (782)" (595)" • Timing of new customer payments Total"Ca

  10. Slide 10: Growth Opportunities – Language Resources

    For personal use only Growth Opportunities – Language Resources • Appen provides data and services to the Language"" language technology market Services" • Language technology sits within the $38.2BN $38.2BN*" language services market Language"" " • Opportunities exist for Appen to break into Techno

  11. Slide 11: Growth Opportunities – Content Relevance

    For personal use only Growth Opportunities – Content Relevance • Search accuracy attracts users • Social media content and news • eCommerce conversion rates and grows advertising revenue relevance retains and adds users improve with effective search • Appen has added search • Appen works with leadin

  12. Slide 12: Outlook

    For personal use only Outlook FY2015#Full#Year#Revenue#Outlook# • Full year FY2015 guidance: "80,000"" "70,000"" • Revenue: $68M to $76M "60,000"" "50,000"" • EBITDA: $9.6M to $11.2M "40,000"" "30,000"" • Exceeding prospectus "20,000"" "10,000"" • Guidance AUD at $0.73 "T"""" FY2014" FY15"Prospectus

  13. Slide 13: Thank you

    For personal use only Thank you Mark Brayan, CEO, mbrayan@appen.com Mark Byrne, CFO, mbryrne@appen.com

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