Gentrack Group Ltd · NZX:GTK
Gentrack — H1 FY2022 Earnings Presentation
23 slides from Gentrack's earnings presentation, May 24, 2022
Slide 1: Gentrack Group FY22 Half Year Update
For personal use only Gentrack Group FY22 Half Year Update 24 May 2022 © Gentrack 2021. All rights reserved.
Slide 2: Disclaimer
Disclaimer For personal use only This presentation may contain forward-looking statements. Forward-looking statements often include words such as discussions of future operating or financial performance. The forward- future conditions, circumstances and results. As with any projection or forecast, f
Slide 3: Gentrack FY22 1H Results
For personal use only Gentrack FY22 1H Results Gary Miles Chief Executive Officer © Gentrack 2022. All rights reserved. This document is the intellectual property of Gentrack.
Slide 4: Veovo: traffic recovery and customer wins
For personal use only Traffic to return to pre-pandemic levels by 2024. Leisure travel at 2019 levels. Expect increases in ARR volume licenses, change requests and system upgrades. 3 New customer 4 Customer upgrades 2 Major projects Veovo wins /expansion delivered remains an New European Airport Upg
Slide 5: Utilities Scorecard
Utilities Scorecard For personal use only Return to growth and winning Build a high performance, highly engaged organization c Develop the market leading, cloud native platform Establish the capability to deliver successful transformations
Slide 6: Growth and Winning
For personal use only new logos YTD Return to 15% revenue growth Growth and (25% net of 12 insolvencies) Winning Pipeline growing and confident in guidance
Slide 7: People and Power
For personal use only Aligned to strategy and purpose Engagement up PEOPLE POWER YTD Retention higher than tech industry benchmark
Slide 8: Transformation success
For personal use only Transformation success Transformation Leadership 50 customers 15m meter points, 6 countries 15 regulatory segments Strong customer partnerships
Slide 9: Our next generation technology
For personal use only Our next generation technology The leading cleantech solution for energy and water service providers
Slide 10: The global opportunity is significant
For personal use only Meter points The global opportunity is significant We have a strong foundation to win this market Our focus is now on global expansion
Slide 11: Financial headlines
Financial headlines $51.0M $57.1M 12.0% For personal use only Revenue growth driven by 15% increase REVENUE at Utilities: HY21 HY22 Excluding customers in SOLR, ARR up 14% (+$3.9m) and NRR up 66% (+$4.9m) $42.4M 5.0% Current projects within NRR expected to ARR $40.4M deliver a $7.3m ARR uplift p.a.
Slide 12: Financial Results for the Half Year ending March 2022
For personal use only Financial Results For the Half Year ending 31 March 2022 John Priggen Chief Financial Officer © Gentrack 2021. All rights reserved.
Slide 13: Group Profit and Loss
Group Profit and Loss For personal use only Group : Utilities Veovo o Strong growth at Utilities from both new and existing customers; TopCustomer Reporting.xlsx o Offset by lower project rev enues at Veovo. : o Increase in our deliv ery capability to support business growth; o Investment in strateg
Slide 14: Utilities Revenue Analysis
Utilities Revenue Analysis For personal use only Revenue from customers now lost via SOLR/insolvency shown separately Rev enue from customers now lost v ia $48.9m Total Revenue SOLR/insolv ency was $4.6m (v $6.9m in $42.5m Annual Underlying rev enue (excl those UK Recurring Revenue (excl. SOLR/insol
Slide 15: Utilities - Breakdown of customers
Utilities - Breakdown of customers For personal use only Client Concentration Top 10 by Revenue ($48.9m) ($29.7m) Bulb, in special administration in UK, is a top 5 customer © Gentrack 2021. All rights reserved. 15
Slide 16: Veovo Revenue Analysis
Veovo Revenue Analysis For personal use only Veovo Veovo $8.5m $8.2m Total Revenue Europe Down Annual Americas Recurring Revenue $5.9m APAC 72.0% of total Veovo revenue Rest of Committed Monthly Non-contracted the world Non-recurring Recurring Revenues Recurring Revenues Revenues (NRR) (CMRR) (TRR)
Slide 17: Expenditure Analysis
Expenditure Analysis For personal use only As we set out at t he Invest or Day last June and in our earnings guidance in February, we have subst ant ially increased investment in St rategic R&D and Sales & Market ing. o Personnel costs include a $5m increase in our R&D o This step up in headcount ha
Slide 18: Cashflow
Cashflow For personal use only 30 31 Sept ember March 2021 2022 Cash $26.0m $16.5m Debt * Nil Nil Net Cash $26.0m $16.5m * Group retains a $25m credit facility currently undrawn $9.4m reduction in cash during H1 driven by a $6.7m increase in working capital (principally t rade receivables). Reflect
Slide 19: External Metrics from Investor Day
External Metrics from Investor Day For personal use only NZ$M FY21 FY21 FY24 * As set out at t he Invest or Day we had Investor Actuals Target expect ed FY22 Ut ilities revenue t o be impact ed by cust omer losses of c. $10m of Day ARR vs FY21. ARR (=CRR+TRR) ~$80m $81.9m However, we saw furt her UK
Slide 20: Outlook update
Outlook update For personal use only for FY22 are forecast to be around $115m (vs FY21 revenues of $105.7m) and that FY22 EBITDA is expected to be in low single- Today Gentrack confirmed that there is no change to this guidance. Gentrack also confirms there is no change to the FY24 targets provided
Slide 21: Q&A
For personal use only Q&A © Gentrack 2021. All rights reserved. 21
Slide 22: GAAP to Non-GAAP Profit Reconciliation
GAAP to Non-GAAP Profit Reconciliation For personal use only 6 Months 6 Months NZ$m 31 Mar 21 31 Mar 22 Unaudited Unaudited (1.1) (5.8) Reported net (loss)/profit for the period (GAAP) 1.3 1.4 Add: Net finance Expense 1.4 0.2 Add: Income Tax expense 5.4 5.4 Add: Depreciation and amortisation 7.0 1.2
Slide 23: Half year financial summary
For personal use only Difference % NZ$m Constant Currency Revenue 51.0 57.1 56.6 5.6 11.0% Operating Costs 44.0 55.9 55.3 11.3 25.7% EBITDA 7.0 1.2 1.3 (5.7) (81.4%) Statutory NPAT (1.1) (5.8) (5.7) (4.6) N/A © Gentrack 2021. All rights reserved. 23