Jcurve Solutions Limited · ASX:JCS
Jcurve Solutions — Investor Presentation (June 2019)
43 slides from Jcurve Solutions's investor presentation, Jun 13, 2019
Slide 1: JCurve Solutions (JCS) Investor Presentation June 2019
For personal use only JCurve Solutions (JCS) Investor Presentation June 2019 www.jcurvesolutions.com ASX: JCS
Slide 2: Disclaimer
JCURVE SOLUTIONS IMPORTANT INFORMATION For personal use only Disclaimer The information contained in this Presentation (“Presentation”) has been prepared by JCurve This Presentation should not be considered as the giving of investment advice or Solutions Limited (“the Company”) and is being delivere
Slide 3: Our History
JCURVE SOLUTIONS OUR HISTORY For personal use only JCurve JCS expands 1997 Stratatel 2008 STE acquires 2013 STE acquires 2016 JCS signs NetSuite 2019 Solutions (STE) Phoneware JCurve Solutions Solution Provider into Asia through Founded Pty Ltd and Agreement acquisition of renames Spectrum Group has
Slide 4: Our Board
JCURVE SOLUTIONS OUR BOARD For personal use only JCurve Solutions Bruce Hatchman David Franks Mark Jobling is led by an Non-Executive Chairman Appointed November 2014 Non-Executive Director & Secretary Appointed September 2014 Non-Executive Director Appointed April 2015 experienced /bruce-hatchman /
Slide 5: Our Team
JCURVE SOLUTIONS OUR TEAM For personal use only JCurve Stephen Canning Chief Executive Officer James Aulsebrook Chief Financial Officer Kate Massey Chief Marketing Officer Solutions Appointed EMT January 2015 /stephengcanning Appointed EMT April 2016 /james-aulsebrook Started at JCS September 2009 &
Slide 6: Our Purpose
JCURVE SOLUTIONS OUR PURPOSE For personal use only The “Why” JCS is a specialist solution provider. Our whole business is based around providing an exceptional customer experience by delivering the best possible solution to our clients Mission Vision through market leading We deliver world-class bus
Slide 7: Our Solutions
JCURVE SOLUTIONS OUR SOLUTIONS For personal use only The “What” We deliver cloud ERP Service TEMS solutions and services that drive improvement in business performance. JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 7 7
Slide 8: Our Principles
JCURVE SOLUTIONS OUR PRINCIPLES For personal use only The ”How” Across all our 01 02 03 04 05 solutions and Simplify Deliver Grow the Leverage scale Live our services, we stick complexity exceptional value of and a lower corporate to 5 principles that to reduce customer customers cost base to values
Slide 9: Enterprise Resource Planning (ERP)
For personal use only Enterprise Resource Planning (ERP)
Slide 10: What is ERP?
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only What is ERP? ERP stands for Enterprise Resource Planning. It is integrated software to manage all aspects of a business. Every business size solutions for large, mid-sized Single and small, fast-growing businesses. Unified Industry-specific f
Slide 11: Our ERP Story / About Oracle NetSuite
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Our ERP Story About Oracle NetSuite • NetSuite is the In 2009, our ERP practice was born, #1 Cloud Business selling a small business edition of Software Suite Globally NetSuite (JCurve ERP). • >16,000 customers In 2016, on becoming a full Net
Slide 12: Our ERP Success
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Our ERP Success JCS awarded Oracle NetSuite New Business Partner of the Year 2018, delivering more • #1 Oracle NetSuite Solution Partner globally by new business to Oracle customer count NetSuite than any other partner in ANZ • 5-star Solutio
Slide 13: Our Model
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Our Model We use the following four key metrics to measure the success of our ERP practice: We acquire new customers, delight them with exceptional customer ARR Deal Size Acquisition Churn experience and a world class product Annual Average N
Slide 14: ARR
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only ARR $7,000,000 $6,000,000 The annualised contracted recurring revenue across the ERP contract base. $5,000,000 This represents the net licence fees, plus support. $4,000,000 $6M+ Current What is driving ARR growth? $3,000,000 annualised • Eac
Slide 15: Average Net Income Per New Business Sale
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Average Net Income Per New Business Sale Average Net Income Per New Business Sale (AIPS) $45,000 This is the licence commission received on $43K $40,000 NetSuite edition customers or licence fee charged for JCurve ERP customers, plus $35,000
Slide 16: Customers by NetSuite ERP Solution Edition
CLOUD BUSINESS MANAGEMENT SOLUTIONS Customers by NetSuite ERP Solution Edition For personal use only 700 Customer 600 Number of JCurve ERP edition customers Acquisition 500 Number of NetSuite >600 400 edition customers Total of ERP 300 Since becoming a NetSuite Solution customers Provider in 2016, o
Slide 17: Churn
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Churn ERP Churn by Contract Value 16% 7.9% What has been driving the reduction 14% in long term churn? • Our dedicated support team 12% Current ERP • Our local account management Churn (**) 10% team who are committed to (**) FY2019 ERP churn
Slide 18: Management quote on scalability
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only “Our ability to scale provides the opportunity to continually grow our customer base and our share of our customers’ spend. We now have the people, processes and systems in place to prove that scalability whilst maintaining a strong focus on
Slide 19: ERP revenue and expenditure
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only ERP revenue and expenditure ERP sales continue $12,000,000 to grow while costs $10,000,000 are flattening $8,000,000 • Our Australian based team is at $6,000,000 peak planned capacity • Increased use of lower cost-base $4,000,000 highly-skill
Slide 20: Focused on Asia opportunities
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only We are focused on Thailand Our Offices opportunities that Cambodia • Sydney will accelerate SAARC Malaysia • Melbourne Singapore • Singapore growth and our Indonesia • Manila profitability Our Territories • Australia JCS Asia • New Zealand Au
Slide 21: Why expand into Asia?
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Why expand into Asia? • We have over 10 years experience • Accelerate our ERP growth. We believe JCS implementing NetSuite, we see an can do exceptionally well in Asia based on: opportunity to bring our expertise – Our credibility as NetSuite
Slide 22: Partner Rollup Acquisition Strategy
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only Partner Rollup Acquisition Strategy We are seeking to actively rollup some of the • JCS’ people, processes, systems and smaller NetSuite Solution Partners in Asia our credibility assists the local Solution when there is a compelling investmen
Slide 23: JCS Philippines
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only JCS Philippines We have established a presence in Manila • A talented skills base is available Manila • We have established a delivery centre of excellence in Manila to: – Support our growth in Australia – Support our expansion into Asia – De
Slide 24: ERP Revenue by Geographic Region
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only ERP Revenue by Geographic region The Opportunity $14,000,000 $12,000,000 With the people, product and resources in place in the geographic $10,000,000 locations entered, JCS is well positioned to leverage the Asian $8,000,000 growth opportuni
Slide 25: What to expect
CLOUD BUSINESS MANAGEMENT SOLUTIONS For personal use only What to expect • Continued growth in licenced users as our • Further M&A activity in Asia average customer size increases “In line with JCS’ stated intent to be a • Strengthen our position as diversified technology solutions • Continued growt
Slide 26: Riyo Service Management Software
For personal use only RIYO Service Management Software
Slide 27: What is Riyo?
SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO For personal use only What is Riyo? • Whatever the size of a business, if you need to take a booking, improved customer experience deliver a service at a certain place and time, take payment, then we’ve got it covered allocate and upsell dispa
Slide 28: The Riyo Story
SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO For personal use only Your Business On Demand The Riyo Story • A start up acquired by JCS in June 2018 • JCS completed development of platform • Integration to NetSuite built • Established Riyo team to support our go-to-market • Launched to ex
Slide 29: Who is Riyo for?
SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO For personal use only Who is Riyo for? Businesses that could benefit from Riyo Service businesses that want to: • Specialised Transportation • Modernise the delivery experience for customers • Real Estate Management • Scale their operations •
Slide 30: Key Features of Riyo
SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO For personal use only Key Features of Riyo • Scalable, enterprise • Production tested with grade solution for both B2B and enterprise customers B2C businesses • Disruptive technology that is • Easy integration into existing changing the way or
Slide 31: What to expect / Customer Acquisition Strategy
SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO For personal use only What to expect • Small revenue contribution FY19 • Growing customer numbers Q1 FY20 • Full marketing launch in Australia Q1 FY20 • Establishment of channel sales FY20 • Launch in to Asia FY20 • Global opportunity Customer
Slide 32: Telecommunication Expense Management Solutions
For personal use only Telecommunication Expense Management Solutions (TEM Solutions)
Slide 33: Our TEM Solutions Story
TELECOMMUNICATION EXPENSE MANAGEMENT SOLUTIONS For personal use only Our TEM Solutions simplify telecom expense management Our TEM Solutions Story • Proprietary owned portfolio of solutions • Original product proposition was to prevent “bill shock” One • TEM Solutions Market has declined for a numbe
Slide 34: TEMS Statutory Profit and Revenue
TELECOMMUNICATION EXPENSE MANAGEMENT SOLUTIONS TEMS Statutory Profit (ex impairment) For personal use only $2,000,000 What to expect $1,800,000 $1,600,000 $1,400,000 $1,200,000 • Ongoing profitable contribution to JCS $1,000,000 • Continued support for TEM solutions $800,000 $1.1M $600,000 • Reducin
Slide 35: Strong Foundations for Growth
JCURVE SOLUTIONS STRONG FOUNDATIONS FOR GROWTH For personal use only “JCurve Solutions has been on a transformational journey to build the foundations for delivering improved and sustainable shareholder value. By delivering world-class technology solutions to drive business efficiency and performanc
Slide 36: Key Strategic Priorities
JCURVE SOLUTIONS KEY STRATEGIC PRIORITIES For personal use only Grow ERP in Australia Grow JCS in Asia Launch RIYO • Win new business in mid-market • Grow ERP Sales from Singapore • Product enhancements from • Increase upsell to existing office existing customer feedback customers • Grow JCS Philipp
Slide 37: Our Focus
JCURVE SOLUTIONS OUR FOCUS What to expect For personal use only To be a $14,000,000 Revenue by Product Division • Sustained revenue growth in ERP in Australia based diversified $12,000,000 around mid-market technology • Further expansion in ERP in Asia both organic and solutions $10,000,000 through
Slide 38: Diversification: Growth through acquisition
JCURVE SOLUTIONS DIVERSIFICATION For personal use only Growth When looking at potential acquisitions we ask ourselves the following questions: through acquisition 01 02 03 04 Does it align to Is it Does it solve Can we do JCS continues to seek our purpose? scaleable? a significant it better than acq
Slide 39: JCS Metrics: Our Company Performance
JCURVE SOLUTIONS JCS METRICS Consolidated Revenue Normalised EBITDA excluding impairment charge For personal use only $13,000,000 $1,200,000 Our Company $12,000,000 $1,000,000 Performance $800,000 $11,000,000 $600,000 How do we measure our $10,000,000 overall success? $400,000 Cash Flow $9,000,000 $
Slide 40: Delivering Financial Stability
JCURVE SOLUTIONS DELIVERING FINANCIAL STABILITY For personal use only Net operating cash flow $1,500,000 “Over the past three years we have significantly improved the financial $1,000,000 stability of JCurve Solutions which ensures we are well positioned to capitalise on the $500,000 market opportun
Slide 41: Overall Summary: Capital Structure and Shareholders
JCURVE SOLUTIONS OVERALL SUMMARY For personal use only Capital Structure and Shareholders As at 31/5/2019 Ordinary Fully Paid Shares as at Units % of Units Key Statistics (ASX: JCS) unless otherwise 31/5/2019 stated Directors and Executive Interests 65,839,427 20.08% Share Price $0.036 Other Top 20
Slide 42: Our Investor Proposition
JCURVE SOLUTIONS OUR INVESTOR PROPOSITION For personal use only Value and Strong Financial Growth Strong Operational Foundations Fundamentals growth • Continued organic revenue and profit growth • Growing revenue Opportunity on current $0.9m • Market trend towards • Strategic relationship EBITDA for
Slide 43: For personal use only
For personal use only Stephen Canning James Aulsebrook Chief Executive Officer Chief Financial Officer stephen.canning@jcurve.com.au james.aulsebrook@jcurve.com.au www.jcurvesolutions.com 43