Serko Ltd. · NZX:SKO
Serko — Investor Day (December 2024)
51 slides from Serko's investor day presentation, Dec 10, 2024
Slide 1: Investor Day
Investor Day Presented on Tuesday 10 December 2024
Slide 2: Important notice
Important notice This presentation has been prepared by Serko Limited ("Serko"). All information is current at the date of this presentation, unless stated otherwise. Information in this presentation • is for general information purposes only, and does not constitute, or contain, an offer or invitat
Slide 3: Agenda
Agenda 9.00am Serko's next growth horizon 10.45am Break Darrin Grafton • CEO 15 mins 9.10am Unmanaged travel and 11.00am Evolving Serko's platform Booking.com for Business Joydip Das • CPO David Holyoke Simon Young • CTO Head of Unmanaged Travel 9.45am North American expansion in 11.45am Financial o
Slide 4: Serko's next growth horizon
Serko's next growth horizon Darrin Grafton • Co-founder and CEO
Slide 5: Objectives of this investor day
Objectives of this investor day 01 02 03 04 05 Share our Outline where Provide details Introduce Answer your progress we're heading on opportunities our leaders questions
Slide 6: Our executive team has broad and deep international experience
Our executive team has broad and deep international experience... Darrin Grafton Joydip Das Liz Fraser Rachael Satherley Shane Sampson Simon Young Co-founder Chief Product Officer Chief Revenue Officer Chief People Officer Chief Financial Officer Chief Technology Officer & CEO Ex Salesforce Ex Air N
Slide 7: Senior hires in 2024 expanding our capability
...with senior hires in 2024 expanding our capability Melissa Helyer-Akhara David Holyoke Matt Weaver Global Head of Design Head of Unmanaged Travel Head of Data 25 years’ experience leading 25 years' corporate Ten years' experience in data eCommerce design and CX travel experience science, analytic
Slide 8: We have delivered on our priorities
We have delivered on our priorities To realise the growth opportunity To build a stronger and more efficient Serko Total income $m Total income vs total spend $71.2m Disciplined delivery $83.3m $83.9m Operational efficiency Booking.com for Business Total spend as $62.3m $71.2m $48.0m 48% and maximis
Slide 9: Global business travel forecast to hit $US2 trillion by 2028
Global business travel forecast to hit $US2 trillion by 2028 $US2 trillion $US1.5 trillion 2024 2028 GBTA 2024 Business Travel Index Outlook. Includes in-destination spend.
Slide 10: The traditional supply chain is changing
The traditional supply chain is changing Travel Content Travel Online Travel Manager S U PPL Y C HA I N T RA D I T I O NA L Suppliers Aggregators Management Booking Tools Organisation Eg. Airlines, E.g. GDSs Companies (OBTs) (TMCs) E.g. GetThere, hotels, ground (Sabre, Amadeus, transport Travelport)
Slide 11: We are well positioned to maximise growth opportunities across segments
We are well positioned to maximise growth opportunities across segments No contracts or service fees / Managed bookers / Independent bookers Travel Management Companies Unmanaged Travel Managed Travel
Slide 12: Our Serko platform will expand our market opportunities beyond online booking tools
Our Serko platform will expand our market opportunities beyond online booking tools Already servicing key Will support greater Will power existing and parts of Booking.com third party content future market offerings for Business and services for all customers Built-in data and AI capabilities
Slide 13: Our focus to FY30
Our focus to FY30 Aspiration Booking.com North American of $250m total for Business expansion income in FY30 Evolution of the Serko platform
Slide 14: Unmanaged travel and Booking.com for Business progress
Unmanaged travel and Booking.com for Business progress David Holyoke • Head of Unmanaged Travel
Slide 15: Why unmanaged travel is transformative
Why unmanaged travel is transformative Unmanaged travel is fast-growing and innovation-driven Strong market reach* Booking innovators Travel trendsetters • SMBs represent over $900B in • SMBs bridge the divide between • Bleisure: expanding annual business travel spend consumer and business travel op
Slide 16: Who is playing in unmanaged travel
Who is playing in unmanaged travel Competitors largely serve niche needs rather than providing a comprehensive solution for SMBs Travel management Online travel Supplier direct platforms agencies channels • Specialised travel platforms focus • Lack business-critical features • Limited in scope on po
Slide 17: Why Booking.com for Business is positioned to succeed
Why Booking.com for Business is positioned Booking.com's Serko's business to succeed consumer expertise travel expertise • Extensive global inventory of • Proven success in simplifying Expertise from both 28M accommodation listings, business travel through consumer and business offering flights to 4
Slide 18: Laying the foundation for further scale
Laying the foundation for further scale Customer growth Major product Fostering a culture and engagement improvements of experimentation • Sign-ups: Nearly 200k • Customer onboarding: A modern • Conducted 150+ experiments companies actively using onboarding experience to drive this year Booking.com
Slide 19: Our future opportunity
Our future opportunity From booking tool to an intelligent travel solution Seamless Enabling Real-time end-to-end journey intelligence assistance Unified platform to Making business Proactive travel effortlessly book and travel smarter through support every step manage your trips automation of the w
Slide 20: The next 12 months
The next 12 months Deepening integration Empowering businesses Simplify travel booking Booking data integration Enhanced Admin Portal End-to-End Ecommerce Experience (Leisure / Business visibility) (new admin dashboard) (Air, Rail, Ground) Unified Account Unified Company Framework Traveler Arranger
Slide 21: North American expansion in managed travel
North American expansion in managed travel Liz Fraser • Chief Revenue Officer
Slide 22: Serko's offerings in North America are aligned to our target markets
Serko’s offerings in North America are aligned to our target markets ~52% Unmanaged travel ~ 48% Managed travel Small to Medium Businesses Medium to Large Enterprises NZ$207 billion market size * NZ$192 billion market size* E-commerce Global enterprise / Moderate to high High-touch channel Small to
Slide 23: What is important to customers
What is important to customers Key drivers of managed travel Companies / Travel Bookers / Travel Managers Travellers Visibility and control Choice Spend and carbon management Convenience Duty of care Low friction Corporate preferred suppliers Personal preferred suppliers
Slide 24: How we're going to succeed
How we’re going to succeed Demonstrated capability to deliver on our 3 growth pillars Customer retention New customer Increase average and growth acquisition revenue per booking
Slide 25: A valuable partnership with Sabre
A valuable partnership with Sabre Three key advantages Depth of Relationships Technology content in market and innovation
Slide 26: Todd Arthur
Todd Arthur SVP Sabre North America Agency, Americas Delivery and Global Corporate Solutions
Slide 27: Partnership designed to accelerate innovation in managed travel
Partnership designed to accelerate innovation in managed travel Innovation Sales Marketing • Co-development of initiatives to • Leverage sales and account • Joint approach to research, minimise friction and increase management teams across thought leadership and efficiency Sabre’s TMC customer base
Slide 28: GetThere significantly extends our capabilities
GetThere significantly extends our capabilities Market share & customers Experience & expertise Data & insights • #2 player in the US market* • Highly experienced people with • Support complex, multinational deep domain expertise travel programs for demanding • Market presence will make us a custome
Slide 29: Key takeaways
Key takeaways Four things to remember We understand We have clear We have a With GetThere, customers and plans on how new strategic we extend our what's important to succeed partnership capabilities, to them with Sabre market share and data and insights
Slide 30: Meet the leaders
Meet the leaders Joydip Das Liz Fraser Rachael Satherley Simon Young Chief Product Chief Revenue Chief People Chief Technology Officer Officer Officer Officer
Slide 31: Serko's platform
Serko’s platform Joydip Das • Chief Product Officer
Slide 32: We have strong and proven foundations
We have strong and proven foundations • Three proven products • Two established technology stacks across Serko and GetThere • Emerging, modern high-scale technology platform New Heritage Heritage Serko Technologies Technologies Platform
Slide 33: Transforming business travel
Transforming business travel We want to go beyond being an online booking tool Solve challenges Put customers and Create a unified with AI and data partners at the centre open platform • Empower travellers • Address biggest pain points • Scale, speed and innovation • Reduce travel • Co-design future
Slide 34: Addressing customers' key problems
Addressing customers' key problems Transforming the traveller's experience with data and AI Customer Disruption Travel Smart sourcing empowerment management intelligence and content Consumer-grade Minimise the Intelligent retailing Optimise sourcing experiences impact of travel driven by in-built an
Slide 35: How we are evolving Serko's platform
How we are evolving Serko’s platform Serko Enterprise Serko SME Serko Partner Ecosystem Serko Product • Unify common travel domain ... Suite services to reduce duplication and serve different application experiences Serko Common Hotel Policy Booking Technology Travel Services Service Service • Built
Slide 36: Serko's platform
Serko’s platform Simon Young • Chief Technology Officer
Slide 37: We have a strong, global team
We have a strong, global team <5 UK ~70 China ~20 USA ~65 India ~140 <10 New Zealand Australia * Global Product & Technology roles as at October 2024 (plus GetThere)
Slide 38: We are organised to scale
We are organised Communities of practice Operating tenets to scale
Slide 39: We've made big leaps in 2024
We’ve made big leaps in 2024 Cloud spend -33% YoY
Slide 40: Our platform evolution
Our platform evolution Ecosystem Partners New Offerings New Offerings New Offerings We are on a path to unify GetThere GetThere GetThere GetThere our various technologies Zeno Zeno Zeno Zeno into a single Serko platform. In-market B.Com B.Com B.Com B.Com offerings Our new Serko platform Platform as
Slide 41: Our technology drives customer value
Our technology drives customer value The Serko New capabilities The ecosystem Our platform is platform powers are continually supported by the designed for all Booking.com deployed and Serko platform global scale, for Business hotel experimentally will include our powered by data, transactions valid
Slide 42: How we think about AI
better, faster, sma How we think about AI Ex ecu te e th er • D a r e to s r te r og imp in t lify W r o d u c t g •B n • PIs / P oals K a ’s leading trav ol um dly r ld el wo dh p go ictio nl We’ll use AI , fr es s goo d tra cte he bey ve la ne l dt tfo people to n Be a ex co g ond to achieve our B
Slide 43: Financial overview
Financial overview Shane Sampson • Chief Financial Officer
Slide 44: Overview
Overview Review of expected financials post 28 October announcements • Total spend impacts to 31 March 2025 • Non cash accounting issues • Spend profile • Income profile
Slide 45: FY25 impacts of transactions on spend
FY25 impacts of transactions on spend Assuming 3 months of GetThere • Serko “status quo” guidance unchanged from May • $3m of transaction related costs in FY25 • $3m of one-off implementation costs likely weighted 2/3 FY25, 1/3 FY26 • Includes purchase of computers etc which will be capitalised • Ge
Slide 46: Accounting judgements
Accounting judgements Accounting papers and related audit to be completed Issue Potential Impacts Purchase price accounting Will allocate purchase price across fixed life intangibles (software, customer contracts etc) and goodwill (if any). Any fixed life intangibles will amortise to the P&L over ti
Slide 47: Anticipated spend profile
Anticipated spend profile * Funded from cash on hand and anticipated revenues Spend Profile Spend Profile - Accelerated $200m $200m Performance Payments Tech Acceleration US Expansion Implementation Transaction Status Quo FY25 FY26 FY27 FY28 FY29 FY30 FY25 FY26 FY27 FY28 FY29 FY30 * High level manag
Slide 48: Anticipated income profile
Anticipated income profile Analysts have range of $191m - $247m vs $250m aspiration • Based on analyst reports post 29 October 2024 Range of Analyst Estimates of Income^ 250 announcement • Growth driven by 200 • Booking.com for Business volume growth 150 • US volume growth • ARPB growth in Managed T
Slide 49: Closing comments
Closing comments Darrin Grafton • Co-founder and CEO
Slide 50: What we want you to take from today
What we want you to take from today We have solid There are We have An evolved Serko foundations in compelling the plans and platform with built- place as we opportunities that people to in AI capability will pursue our next line up to our goals successfully benefit all growth horizon execute custom
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