Serko Ltd. · NZX:SKO
Serko — Shareholder Meeting (August 2019)
28 slides from Serko's shareholder meeting presentation, Aug 21, 2019
Slide 1: Annual Shareholders Meeting — 21 August 2019
serko Annual Shareholders Meeting — 21 August 2019 2 = S) o) 7) 3 @ cS e) 7) — ® a. — S) LL,
Slide 2: Chairman Welcome
For personal use only Chairman Welcome Simon Botherway 2
Slide 3: Order of Meeting
For personal use only ORDER OF MEETING Formal Chairman CEO Shareholder Business + General Welcome Presentation Q+A Resolutions Business 3
Slide 4: Serko's Board
For personal use only SERKO’S BOARD 4
Slide 5: Delivery Against Strategy – FY19
For personal use only DELIVERY AGAINST STRATEGY – FY19 Offer premium, integrated global solutions Grow ARPB by offering Expand into new territories increased content and through strategic alliances and moving customers to Zeno reach the unserved SME market 5
Slide 6: Performance Dashboard FY19 vs FY18
For personal use only PERFORMANCE DASHBOARD FY19 vs FY18 PROFIT REVENUE ACTIVITY COSTS $1.6m 28% 26% 28% 41% 17% 87% 32% NET PROFIT OPERATING RECURRING TOTAL TOTAL OPERATING PEAK ATMR3 R&D COSTS4 AFTER TAX REVENUE REVENUE2 INCOME BOOKINGS EXPENSES $2.6m $23.4m $20.7m $24.6m $26m 4.14m $9.2m $23.3m E
Slide 7: CEO Presentation
For personal use only CEO Presentation Darrin Grafton 7
Slide 8: Resellers signed and active trading customers
For personal use only 85% resellers signed* 1,000 customers active trading Northern US and Canada Major US TMCs SME white-label Hemisphere: launch: signed: platforms: UK launch in FY19 Pilot customer trials CWT, Direct, Vision, FCM Launched in FY19 *As measured by transactions for the year ended 31
Slide 9: GBTA Video
For personal use only GBTA VIDEO 9
Slide 10: Strategic Goal - $100 million
For personal use only Strategic Goal - $100 million $100 million Today 10
Slide 11: The path to $100 million
For personal use only The path to $100 million Australia & New Zealand 5m $7 $35m North America 5m $7 $35m UK & Europe 5m $7 $35m 11
Slide 12: Growth Pillars
For personal use only Growth Pillars How will we get there? Penetrate SME Expand Travel Additional content Market with self on- Management Reseller offerings through boarding module and network Marketplace non-travel resellers 12
Slide 13: Global managed travel opportunity
For personal use only Global managed travel opportunity Source: GBTA BTI Outlook of total addressable market – August 2019 13
Slide 14: Addressing unmanaged travel spend
For personal use only Addressing unmanaged travel spend 14
Slide 15: Marketplace
Marketplace For personal use only 15 *Not yet available in Zeno Marketplace
Slide 16: Environmental, Social & Governance
For personal use only Environmental, Social & Governance Focusing on long-term Applying best practice Cultivating an inclusive Enabling environmentally growth and business governance and risk workplace of diverse and sustainable choices through sustainability management procedures engaged staff tech
Slide 17: Te Reo version of Zeno
Te Reo version of Zeno For personal use only 17
Slide 18: Outlook
For personal use only Outlook Total Operating Revenue Growth expected to be in the range of 20%-40% North American and European markets is currently forecast to commence in the second half of the current financial year 18
Slide 19: Q&A
For personal use only Q&A 19
Slide 20: Appendix
For personal use only APPENDIX 20
Slide 21: About Serko
For personal use only ABOUT SERKO • Serko provides innovative cloud based corporate travel and expense technology solutions. • Founded in 2007 by Darrin Grafton and Robert Shaw, Serko listed on the New Zealand stock exchange in June 2014, and more recently in June 2018, has listed as a foreign exemp
Slide 22: About Serko: Zeno Travel and Zeno Expense
For personal use only ABOUT SERKO Zeno Travel Zeno Expense Zeno Travel is an Online Zeno Expense automates Booking Tool (OBT) that the process of corporate corporate travellers use to card and out-of-pocket book flights, trains, expense submission, hotels, rental cars and reconciliation and airport
Slide 23: Customers
For personal use only CUSTOMERS The majority of Serko’s revenue comes from Travel Management Companies (TMCs) that act as reseller partners, providing our solutions to their corporate customers as part of their overall managed travel service. TMCs Example corporates 23
Slide 24: Commercial Model
For personal use only COMMERCIAL MODEL Booking and other fees $ Corporate traveller makes a Serko charges the TMCs a fee per booking (which booking via Serko varies based on volume). Online/Zeno $ Traveller submits receipts Monthly user fee Period Ended 31 March 2019 using Serko Expense/Zeno Serko E
Slide 25: EBITDAF Growth and Reconciliation
For personal use only EBITDAF GROWTH Net Profit Summary FY19 FY18 change EBITDAF Reconciliation $000 $000 $000 % 19% Total income 24,576 19,273 5,303 28% Operating expenses (23,320) (17,684) (5,636) -32% EBITDAF Percentage of operating revenue -100% -97% Net finance income 290 414 (124) -30% Net pro
Slide 26: Historic Measures
For personal use only HISTORIC MEASURES Selected Operational Metrics FY13 FY14 FY15 FY16 FY17 FY18 FY19 Total revenue growth (%) 27% 39% 55% 27% 9% 28% 28% Revenue growth – Travel Platforms (%) 41% 12% 62% 49% 8% 23% 20% Total travel booking transactions (000s) 987 1,107 1,588 2,407 2,913 3,526 4,13
Slide 27: Definitions
For personal use only DEFINITIONS • Peak ATMR (Annualised Transactional Monthly Revenue) is a non-GAAP measure. Serko uses this as a useful indicator of recurring revenues from Serko products. It is calculated by annualising the combination travel and expense platform monthly revenues for the most r
Slide 28: Important Note
For personal use only IMPORTANT NOTE This presentation is given on behalf of Serko Limited. Information in this presentation: • is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in Serko Limited; • should be read i