Slide 1: Results FY16
Results FY16 Financial data is provided on a pro forma basis except where explicitly stated otherwise. 24 August 2016 A reconciliation of statutory results to pro forma results is included in the appendix.
Slide 2: Agenda
Agenda CONFIDENTIAL DRAFT 2208 11AM NOT FOR RELEASE Gail Williamson Investor Relations Welcome CEO overview Financials Progress on Q&A & performance FY16 strategy & highlights outlook 1
Slide 3: Important notice and disclaimer
CONFIDENTIAL DRAFT 2208 11AM Important notice and disclaimer Visit www.wisetechglobal.com/investors NOT FOR RELEASE FORWARD-LOOKING STATEMENTS PREPARATION OF INFORMATION This presentation may include forward-looking statements. Such statements can generally be All financial information has been prep
Slide 4: Agenda
Agenda CONFIDENTIAL DRAFT 2208 11AM NOT FOR RELEASE Richard White Founder and CEO Welcome CEO overview Financials Progress on Q&A & performance FY16 strategy & highlights outlook 3
Slide 5: A leading provider of software to the logistics industry globally
CONFIDENTIAL DRAFT 2208 11AM A leading provider of software to the logistics industry NOT FORglobally RELEASE 125+ countries(1) 6,000+ customers(2) 34 billion+ data transactions in FY16 1 integrated CargoWise One global system 2.8 million development hours over 15 years 525 employees Countries with
Slide 6: WiseTech Global financial highlights
WiseTech Global financial highlights CONFIDENTIAL DRAFT 2208 11AM NOT FOR Delivered strong, high quality growth, exceeded Prospectus forecasts, RELEASE expanded globally STRONG HIGH recurring, LOW HIGH innovation LOW sales and Profitable organic revenue HIGH quality customer product development mark
Slide 7: Delivered on strategy – we focused on what's important
Delivered on strategy – we focused on what’s important DRAFT 2208 11AM CONFIDENTIAL Executed strategy to drive revenue growth, well-positioned for global NOTexpansion FOR RELEASE Transactions/users Modules Geographies Industry Innovation and expansion consolidation Increase new customers Stimulate n
Slide 8: Agenda
CONFIDENTIAL DRAFT 2208 11AM Agenda NOT FOR RELEASE Andrew Cartledge CFO Welcome CEO overview Financials Progress on Q&A & performance FY16 strategy & highlights outlook 7
Slide 9: Financial summary
Financial summary CONFIDENTIAL DRAFT 2208 11AM NOT Robust delivery across all metrics, exceeded forecast, upgraded FOR FY17 RELEASE expectation $ million FY15 FY16 Yoy FY16 FY16 FY17 FY17 Pro forma Pro forma change Prospectus actual vs Prospectus upgraded results results forecast Prospectus forecast
Slide 10: Strong growth
Strong growth CONFIDENTIAL DRAFT 2208 11AM Strong organic revenue growth, expanding EBITDA margins, while NOT building FORout our platform RELEASE • 30% pro forma revenue growth … 47% statutory revenue growth Revenue – pro forma EBITDA – pro forma ($ million, FY13 - FY16) ($ million, FY13 - FY16) +3
Slide 11: Revenue growth
Revenue growth CONFIDENTIAL DRAFT 2208 11AM Revenue up across existing and new customers NOT FOR RELEASE • $15.1m existing customer growth Revenue – pro forma • $7.8m new customer growth(1) ($ million, FY15 - FY16) • FX tailwind $8.8m predominantly 0.8 103.3 7.8 1H16, less impact in 2H16 15.1 • Reve
Slide 12: Financial performance summary
Financial performance summary CONFIDENTIAL DRAFT 2208 11AM Robust delivery across all metrics, business thriving, relentlessNOT investment FORin RELEASE innovation Pro forma income statement $ million Year ended 30 June FY13 FY14 FY15 FY16 On-Demand 22.6 39.1 56.9 86.2 OTL maintenance 23.6 24.0 20.0
Slide 13: Licensing model
Licensing model CONFIDENTIAL DRAFT 2208 11AM Focus on pay for usage, revenue benefits from transition of customers NOT FOR to On-Demand RELEASE licensing • On-Demand licensing = access on an Revenue by licence type as-needed basis, pay monthly based on (% of total revenue, FY13 - FY16) usage • 83% o
Slide 14: Greater revenue from customers
Greater revenue from customers CONFIDENTIAL DRAFT 2208 11AM NOTusers, Our customers grow their revenue over time, low attrition… more FORmodules, RELEASEtransactions • Growth in all cohorts yoy CargoWise One application suite revenue by sales cohort(1) ($ million, June 2013 - June 2016) • Increased
Slide 15: Operating expenses
Operating expenses CONFIDENTIAL DRAFT 2208 11AM Efficient cost control while scaling to support innovation and business NOT FOR growthRELEASE • Sales and marketing expenses increased in absolute terms but remained at an efficient Operating expenses by type rate of 15% of total ($ million) revenue, c
Slide 16: Investment in innovation and product development
Investment in innovation and product developmentCONFIDENTIAL DRAFT 2208 11AM NOT Continued high investment in R&D, every $ and every hour builds outFOR RELEASE our technology lead • Increases in product design and development expenses from FY15 to FY16 reflect Investment in innovation and product de
Slide 17: Attractive cash flow profile
Attractive cash flow profile CONFIDENTIAL DRAFT 2208 11AM Healthy operating cash flow NOT FOR RELEASE • Continued high conversion of EBITDA Pro forma cash flows into operating cash flow – Non-cash items in EBITDA mainly $ million reflect share-based payments and FY13 FY14 FY15 FY16 provision movemen
Slide 18: Summary statement of financial position
Summary statement of financial position CONFIDENTIAL DRAFT 2208 11AM Strong capital position from which to drive strategic growth NOT FOR RELEASE • Strong capital position $ million 30 June 2015 30 June 2016 Current assets - $125m new equity raised in IPO Cash and cash equivalents 43.2 109.5 Trade a
Slide 19: Agenda
CONFIDENTIAL DRAFT 2208 11AM Agenda NOT FOR RELEASE Richard White Founder and CEO Welcome CEO overview Financials Progress on Q&A & performance FY16 strategy & highlights outlook 18
Slide 20: Multiple levers for business growth
Multiple levers for business growth CONFIDENTIAL DRAFT 2208 11AM Multiple levers to sustain growth and increase market penetration NOT FOR RELEASE + + Transactions/users Modules + Innovation Increase Stimulate Grow Industry and Geographies consolidation new network through expansion of Greater usage
Slide 21: Innovation investment
Innovation investment CONFIDENTIAL DRAFT 2208 11AM NOT FOR Significant pipeline of longer-term innovations across existing verticals RELEASE and new adjacencies upgrading for new regulatory requirements e.g. Automated Customs Environment US new modules to enable adding quality additional logistics c
Slide 22: Innovation investment – one example: GLOW
Innovation investment – one example: GLOW CONFIDENTIAL DRAFT 2208 11AM NOT FOR Significant pipeline of longer-term innovations across existing verticals RELEASE and new adjacencies A4 Paper Guide GLOW facilitates rapid, high quality and less costly software development Idea: Build a product that cou
Slide 23: Greater usage by customers
Greater usage by customers CONFIDENTIAL DRAFT 2208 11AM Significant growth in existing customers NOT FOR RELEASE CW1 module users by cohort CW1 revenue by cohort 90 ($ million) Growth in usage by existing customers reflects: 120,000 80 1 - Steady growth in module use and revenue • Industry drivers f
Slide 24: New customer growth
New customer growth CONFIDENTIAL DRAFT 2208 11AM Significant opportunities exist outside our existing customers, supported NOT FOR by network RELEASEeffects Open-access, single sale process large customer rollout Growth in new customers from: as at 31 December 2015 2015: 9,107 module users 47 countr
Slide 25: Network effects
Network effects CONFIDENTIAL DRAFT 2208 11AM Multiple active programmes drive adoption, operating systemNOT for global FOR logistics RELEASE We build on our strong customer penetration across high GDP trade routes … By supporting our sales activity with additional effective network programmes … WARP
Slide 26: Growth through acquisitions
Growth through acquisitions CONFIDENTIAL DRAFT 2208 11AM Small, valuable acquisitions accelerate our growth strategy across NOT geographies and adjacencies FOR RELEASE We buy into market positions that would take years to build, integrate swiftly, and drive value across platform Why we acquire What
Slide 27: Acquisition - integration process + value components
Acquisition - integration process + valueCONFIDENTIAL components DRAFT 2208 11AM NOTcapability Stage 1 integration completed swiftly, we focus on long-term product FOR RELEASE and growing revenue Foothold 12-24 months 3 - 12 months Adjacencies 3+ yrs 0 - 36 months Integrate target Develop product Gr
Slide 28: Integration - South Africa, China
Integration - South Africa, China CONFIDENTIAL DRAFT 2208 11AM NOT Stage 1 integration complete on FY15/16 acquisitions, well into FOR product RELEASE development South Africa Integration – stage 1 Combined the Acculturation essentially complete leading #1 and #2 customs clearance • Merged CCL and C
Slide 29: Outlook - industry dynamics
Outlook - industry dynamics CONFIDENTIAL DRAFT 2208 11AM Industry pain points drive an exponential shift to CargoWise OneNOT FOR RELEASE 3PL industry dynamics vs Impact of Our leading global logistics software and low propensity to switch out of dynamic for open-access, usage-driven business model p
Slide 30: Outlook for FY17
CONFIDENTIAL DRAFT 2208 11AM Outlook for FY17 NOT FOR RELEASE • Strong momentum into FY17 — Revenue growth across existing and new customers — Tailwinds from industry dynamics — Annual attrition rate <1% — Large customers rapidly integrating acquisitions using CargoWise One — Brand uplift from globa
Slide 31: Agenda
CONFIDENTIAL DRAFT 2208 11AM Agenda NOT FOR RELEASE Welcome CEO overview Financials Progress on Q&A & performance FY16 strategy & highlights outlook 30
Slide 32: Appendix
CONFIDENTIAL DRAFT 2208 11AM NOT FOR RELEASE Appendix 31
Slide 33: FY17 upgraded forecast and forecast assumptions
FY17 upgraded forecast and forecast assumptionsCONFIDENTIAL DRAFT 2208 11AM Revenue and EBITDA growth in excess of Prospectus forecastNOT FOR RELEASE What is included in the forecast results $ million Revenue EBITDA • Retention of existing customers with organic usage growth consistent with historic
Slide 34: Pro forma income statement
CONFIDENTIAL DRAFT 2208 11AM Pro forma income statement NOT FOR RELEASE $ million FY13 FY14 FY15 FY16 On-Demand 22.6 39.1 56.9 86.2 OTL maintenance 23.6 24.0 20.0 15.4 OTL & support services 5.7 2.9 2.7 1.7 Total revenue 51.9 66.0 79.6 103.3 Cost of revenues (9.8) (10.4) (12.9) (13.1) Gross profit 4
Slide 35: Reconciliation from statutory to pro forma income statement
CONFIDENTIAL DRAFT 2208 11AM Reconciliation from statutory to pro forma income statement NOT FOR RELEASE $ million Note(1) FY13 FY14 FY15 FY16 Statutory revenue 43.0 56.7 70.0 102.8 Net impact of acquisitions 1 8.9 9.3 9.6 0.5 Pro forma revenue 51.9 66.0 79.6 103.3 Statutory NPAT from continuing 3.7
Slide 36: Notes to pro forma adjustments
CONFIDENTIAL DRAFT 2208 11AM Notes to pro forma adjustments NOT FOR RELEASE Summary of pro forma adjustments 1. Represents the pro forma impact of acquisitions as presented in the Prospectus and adjustments for FY16 to remove the impact of CCN for May and June 2016. 2. Represents costs associated wi
Slide 37: Reconciliation of statutory operating cash flow to statutory cash flow
CONFIDENTIAL DRAFT 2208 11AM Reconciliation of statutory operating cash flow to statutory cash flow NOT FOR RELEASE • $6.1m IPO costs expensed included $ million FY15 FY16 within statutory EBITDA but EBITDA 21.1 15.8 excluded from net cash flows from Non-cash items in EBITDA 3.5 9.2 operating activi
Slide 38: Reconciliation of operating and free cash flow - statutory to pro forma
Reconciliation of operating and free cash flow - statutory toDRAFT CONFIDENTIAL pro forma basis 2208 11AM FY16 NOT FOR RELEASE $ million Operating cash Note(1) Free cash flow flow Statutory basis 25.7 5.6 Net impact of acquisitions 1 0.3 0.3 Acquisition transaction costs 2 0.5 0.5 Incremental listed
Slide 39: Overview of revenue licensing models, drivers and platform
Overview of revenue licensing models, drivers and platform CONFIDENTIAL DRAFT 2208 11AM Customers in transition to “On-Demand”, ultimately move to transaction-based NOT FOR RELEASElicensing (1) Represents percentage of FY16 pro forma total revenue. (2) Mainly comprises additional services such as e-
Slide 40: Global revenues received in a mix of key currencies
Global revenues received in a mix of keyCONFIDENTIALcurrencies DRAFT 2208 11AM Revenues protected with effective natural hedge and external arrangements NOT FOR RELEASE • 74% of FY16 revenue in non-AUD … lower rate expected in FY17 FX rates v AUD FY17 FY17 Prospectus upgraded • DHL GF contract denom
Slide 41: Employees
Employees CONFIDENTIAL DRAFT 2208 11AM Over 500 employees; over half our workforce focused on product NOT development activities FOR RELEASE Growth in full time employees Employees by function Employees by region (# of full time employees) (%, as at 30 June 2016) (%, as at 30 June 2016) 525 76 420 2
Slide 42: Thank you
CONFIDENTIAL DRAFT 2208 11AM NOT FOR RELEASE Thank you Changing the world of logistics one innovation at a time 41