Slide 1: FY2016 Full Year Results Presentation
For personal use only Appen Limited FY2016 Full Year Results Presentation
Slide 2: Disclaimer
Disclaimer For personal use only The forward looking statements included in these materials involve subjective judgement and analysis and are subject to significant uncertainties, risks, contingencies, many of which are outside the control of, and are unknown to Appen Limited. In particular, they sp
Slide 3: Company snapshot
Company snapshot For personal use only 111.0 82.7 Appen (APX) is a global language technology company with operations in Australia, the US, the UK and the Philippines Continuing strong growth in FY2016 13.8 17.2 Added secure facilities through MMG acquisition September 2016 FY2015 FY2016 Opened office
Slide 4: Full year highlights
Full year highlights (A$m) For personal use only Continuing strong results Revenue Earnings • Revenue up 34% 111.0 17.2 • EBITDA up 24% 82.7 13.8 • NPAT up 26% 10.5 EBITDA 8.3 NPAT FY2015 FY2016 FY2015 FY2016 Company Confidential 4
Slide 5: High divisional growth
High divisional growth (A$m) For personal use only Language Resources revenue up 18% Content Relevance revenue up 44% Language Resources Content Relevance 37.7 73.2 31.9 50.7 Revenue Revenue 14.8 EBITDA EBITDA 12.5 8.9 10.5 FY2015 FY2016 FY2015 FY2016 Continuing demand for high quality speech data O
Slide 6: Resilient Revenue
Resilient Revenue (A$m) For personal use only 110.9 Appen’s customers include the world’s largest technology companies, automakers 82.6 and governments Quality and importance of Appen’s data and 60.5 services drives growing and repeat revenue 50.9 33.3 29.4 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Slide 7: Margin Improvement
Margin Improvement For personal use only Volume discounts for major customers dampened margins in 2H Margin improvements in Q4 2016 and Q1 2017: • Productivity improvements from updated processes and systems • Cost control through sourcing crowd contractors at different rates Expect further improveme
Slide 8: High growth
High growth (A$m) For personal use only % change FY2016 FY2015 % change constant currency Revenue up 34% on FY2015 Statutory Results Revenue growth from current and new projects with existing customers along with Language Resources 37.7 31.9 18% new customer acquisition Content Relevance 73.2 50.7 4
Slide 9: Strong Balance Sheet
Strong Balance Sheet (A$m) For personal use only FY2016 FY2015 Cash 16.5 12.7 Strong balance sheet. No debt. Receivables 21.9 17.3 Increase in cash reserves and receivables related to increase in revenue volumes Other Current Assets 0.4 0.3 Non-Current Assets 15.2 11.7 Final dividend of 3.0 cents pe
Slide 10: Strong cash conversion (A$m)
Strong cash conversion (A$m) FY2016 FY2015 For personal use only Receipts 106.8 72.5 Cash balance increased by $3.7m over FY2015 Payments and other (90.1) (67.6) Cash flow from operations significantly improved Cash flow from operations before due to change in payable cycle and 16.7 4.9 improvements
Slide 11: Currency impact
Currency impact (A$m) For personal use only ImpactFY2016EBITDA GrowthCurrency Neutral FY2015Currency 0.4 3.0 13.8 17.2 Almost all revenue derived offshore, Revenue EBITDA most in USD 27.5 0.8 111.0 3.0 0.4 17.2 82.7 13.8 Currency impact negligible in 2016 Strong underlying growth FY2015 Currency Curr
Slide 12: Market trends signal need for data
Market trends signal need for data For personal use only “Widespread adoption of “By 2018, Gartner expects “Cognitive technologies cognitive systems and most of the worlds largest such as robots, artificial artificial intelligence (AI) 200 companies to exploit intelligence (AI), machine across a bro
Slide 13: Appen positioned for growth
Appen positioned for growth For personal use only Proven Provider Scalable operations Global presence • Founded in 1996 • 280 staff worldwide Sea,le Beijing • Trusted partner to 8 • High engagement, San Detroit Exeter of 10 largest global low turnover Francisco Davao tech companies • 400,000+ on-dema
Slide 14: Outlook
Outlook For personal use only YTD revenue plus orders in hand for delivery in FY2017 ~$70m at February 2017 Full year outlook for EBITDA growth at mid-to-high teen percentages Outlook susceptible to upside or downside from factors including timing of work from major customers and Australian dollar f
Slide 15: Thank you
For personal use only Thank you Mark Brayan, CEO, mbrayan@appen.com Kevin Levine, CFO, klevine@appen.com Leanne Ralph, Company Secretary, leanne.ralph@boardworx.net.au Company Confidential