Slide 1: WiseTech Global FY23 results investor presentation
ASX Announcement: 2023/39 23 August 2023 WiseTech Global FY23 results investor presentation Attached is the FY23 results investor presentation for the year ended 30 June 2023. //ENDS Authorized for release to ASX by David Rippon, Corporate Governance Executive and Company Secretary. Contact informat
Slide 2: FY23 Results
FY23 Results © 2023 WiseTech Global
Slide 3: Our Vision and Our Mission
OUR VISION OUR MISSION To be the operating system To create breakthrough products for global logistics that enable and empower those that own and operate the supply chains of the world © 2023 WiseTech Global
Slide 4: Agenda
Agenda FY2 3 FY 2 3 FI N A N C I A L STR A TE G Y & H I GH LI GH TS REVIEW OU TLOOK Q&A A P P E N DI C E S 3 © 2023 WiseTech Global
Slide 5: FY23 highlights
SECTION 01 FY23 highlights R I C H A R D W H I TE , C E O & FOU N DE R • Delivered strong FY23 financial performance & outlook • Global customs rollouts with K+N & FedEx • Executed strategic move into landside logistics in North America • Achieved substantial increase in global development capacity
Slide 6: FY23 – strong financial performance
FY23 – strong financial performance Delivering on strategy Total Revenue $816.8m CargoWise revenue $659.6m EBITDA (ex. M&A costs)2 $412.1m ↑ 21% organically1 ↑ 30% organically ↑ 28% (↑ 29% reported) (↑ 41% reported) on FY22 on FY22 on FY22 Total revenue growth $184.6m CargoWise recurring revenue $65
Slide 7: WiseTech Global - strategic highlights
WiseTech Global - strategic highlights Strategic progress on the ‘3P’ to accelerate delivery of our vision powered by our People PRODUCT PENETRATION PROFITABILITY • Delivered 1,130 new CargoWise application • Eight new rollouts of the CargoWise application • Enhanced operating leverage supporting su
Slide 8: FY23 financial review
SECTION 02 FY23 financial review A NDR E W C A RTLEDG E , CFO
Slide 9: FY23 results
FY23 results Strong financial performance Revenue • Total revenue of $816.8m, up 29% on FY22 A$m FY22 FY23 % change • CargoWise recurring revenue grew to $650.1m, organically up 37% on FY22 CargoWise revenue 467.3 659.6 41% • Total CargoWise revenue grew organically 30% on FY22 Non-CargoWise revenue
Slide 10: FY23 revenue growth
FY23 revenue growth A$m Total revenue grew $184.6m or 29% – CargoWise revenue grew $192.3m or 41% Recurring & non-recurring revenue CargoWise & non-CargoWise revenue (34.5) 816.8 8.2 816.8 (8.1) 8.2 32.4 CargoWise 7.7 211.0 Recurring 7.7 Recurring 41.3 Non-CargoWise 0.4 157.2 Non-recurring 0.5 Non-r
Slide 11: Revenue growth drivers
Revenue growth drivers CargoWise recurring revenue delivers 33% CAGR CargoWise recurring revenue growth FY16 to FY23 (constant currency) • 33% CAGR FY16 to FY23 • Significant R&D investment driving long-term growth • Revenue growth of $563.9m, >7X over the last 7 years 816.8 • Major recurring revenu
Slide 12: Large Global Freight Forwarder rollouts driving revenue growth
Large Global Freight Forwarder rollouts driving revenue growth 47 LGFF rollouts are driving long term revenue growth 33 LGFFs with rollouts of the CargoWise application suite Annual revenue (A$m)1 in constant currency ‘In Production’2 have delivered: • Revenue growth of 37% CAGR over the period FY16
Slide 13: FY23 operating expenses
FY23 operating expenses1 % of revenue Operating leverage driving margin expansion Expenses (A$m) Overall operating expenses flat as a % of revenue on FY22 ex. M&A costs Product design & development (A$m) Sales & marketing (A$m) General & administration (A$m) 20% 19% 20% 20% 17% 18% 15% 16% 16% 13% 1
Slide 14: FY23 research and development
FY23 research and development Accelerated innovation and product development Investment in innovation and Product investment product development (A$m) • R&D investment increased $81.1m, or 45% vs FY22 reflecting the previously communicated step up in R&D investment and hiring activity for future gro
Slide 15: FY23 balance sheet
FY23 balance sheet Strong balance sheet and liquidity providing Strong liquidity solid platform for future growth • ~$400m total liquidity from cash and undrawn debt facilities • $340.5m decrease in cash largely reflects investments in recent M&A offset by strong operating cash flow generation A$m 3
Slide 16: FY23 cash flow performance
FY23 cash flow performance Highly cash-generative business model delivering strong free cash flow A$m FY22 FY23 % change Strong operating cash flow • Operating cash flows up 28% vs FY22 to $433.3m (FY22: $339.6m), EBITDA 319.0 385.7 21% demonstrating the strength of our highly cash-generative operat
Slide 17: Strategy & outlook
SECTION 03 REPLACE IMAGE Strategy & outlook R I C H A R D W H I TE , C E O & FOU N DE R
Slide 18: WiseTech's '3P' strategy
WiseTech's ’3P’ strategy Strategy delivers sustainable growth through the cycle Vision: To be the operating system for global logistics Demand for integrated Need to replace ageing legacy Logistics providers pursuing global software solutions systems to reduce complexity industry consolidation with
Slide 19: Development priorities to extend the CargoWise ecosystem
Development priorities to extend the CargoWise ecosystem Continued CargoWise enhancement1 (1,130 in FY23) - over $880m invested in R&D since FY19 delivering 5,300+ enhancements Six CargoWise product development priorities Digital Customs and International Landside logistics Warehouse Neo documents c
Slide 20: Expanding the CargoWise ecosystem
Expanding the CargoWise ecosystem Extending the core customer proposition and addressable market OPERATING SYSTEM FOR GLOBAL LOGISTICS Domestic Warehouse Landside Customs & International Customs & Landside Warehouse Domestic logistics logistics compliance freight forwarding compliance logistics logi
Slide 21: CargoWise Global Customs & Compliance
CargoWise Global Customs & Compliance Deeply productive, highly integrated, global, powerful, complete solution Myriad local systems vs One global solution Many Complex Costs One Simple Productive Different systems Configurations Local expertise is expensive Globally capable, scalable Configuration
Slide 22: CargoWise Landside Logistics
CargoWise Landside Logistics Combining logistics optimization & supply chain orchestration, delivering valuable & actionable visibility Customers Resources Problems Solutions Port congestion Digital bookings FORWARDERS TERMINALS Container storage Live driver app Terminal gate congestion Road & rail
Slide 23: CargoWise Warehouse Suite
CargoWise Warehouse Suite Five highly differentiated, advanced warehousing modalities eCommerce Global, modular, high differentiated warehouse capabilities Product/ Designed for international and landside logistics Contract Transit Highly integrated across CargoWise capabilities Fast to train, imple
Slide 24: Penetration
Penetration Momentum through existing customer growth & new global rollout wins Six new global rollouts by LGFFs1 secured Two additional organic rollouts Recent industry consolidation In FY23, CargoWise had global rollouts Post year-end since 1 July 2022: ‘In Production’ ’In Production’ or ‘Contract
Slide 25: Profitability
Profitability Enhancing operating leverage supporting profitable growth Streamlining processes Internal development of Optimizing our integrated Allocating resources and teams our existing teams cost structures appropriately Driving returns by leveraging high growth and scalable SaaS model deliverin
Slide 26: FY24 guidance
FY24 guidance Continued strong growth outlook FY24 guidance assumptions Guidance provided in line with these assumptions FY24 revenue 1 CargoWise: revenue growth of ~34% – 43% and those in the Appendix, • Continued positive momentum from FY23 run rate slide 29. • Moderated market growth reflecting c
Slide 27: Business model and strategy delivering sustainable shareholder value
Business model and strategy delivering sustainable shareholder value Revenue (A$m) (A$m) $1,040- EBITDA (A$m) EBITDA Margin % 50% $1,200.0 $1,095 47% 44%-45% 50% 600 41% $1,000.0 35% 35% $455-$490 40% 30% 31% 30% $816.8 500 30% $800.0 $385.7 $632.2 400 20% $319.0 $600.0 $507.5 300 10% $429.4 $348.3
Slide 28: Q&A
SECTION 04 REPLACE IMAGE Q&A
Slide 29: Appendices
SECTION 05 Appendices REPLACE IMAGE Slides 29. FY24 guidance assumptions and FX 30. Customer growth and low attrition 31. Earnings diversification 32. FY23 organic growth 33. Reconciliation of statutory expenses to non-statutory expenses 34. Reconciliation of underlying NPAT, NPATA and underlying ET
Slide 30: FY24 guidance assumptions and FX
FY24 guidance assumptions and FX What is included in the FY24 guidance: FX rates1 vs AUD FY23 actual FY24 Guidance Foreign Exchange • Retention of existing CargoWise customers consistent USD 0.71 0.68 with historical levels • ~80% of FY23 revenue in non-AUD currencies, 5pp higher than FY22 (75%) • O
Slide 31: Customer growth and low attrition
Customer growth and low attrition CargoWise application suite1 revenue by customer cohort A$m (last 12 months) 650 Increasing adoption by Large Global 600 Freight Forwarders 550 Top 300 customers deliver ~70% of CargoWise 500 revenue in FY23 (FY22 ~75%), reflecting 450 addition of smaller customers
Slide 32: Earnings diversification
Earnings diversification Revenue by customers1 (%) FY23 Revenue by geography2,3 (%) 31% 39% Europe, Middle East & Africa 71% 69% Rest of customers Top 11-20 largest customers Asia Pacific Top 10 largest customers Americas 30% 6% 7% 23% 24% We are a global company with customers operating in 174 coun
Slide 33: FY23 organic growth
FY23 organic growth1 A$m Revenue EBITDA EBITDA margin CargoWise Non-CargoWise Total % % % % FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 change change change change change Recurring revenue 438.6 650.1 48% 127.2 134.3 6% 565.8 784.4 39% Non-recurring revenue 28.7 9.5 (67)% 37.7 23.0 (39)% 66.5
Slide 34: Reconciliation of statutory expenses to non-statutory expenses
Reconciliation of statutory expenses to non-statutory expenses A$m FY22 FY23 Cost of Revenues Cost of revenue – statutory 92.5 125.6 Less: Depreciation & amortization 9.2 11.7 Cost of revenues – non-statutory 83.3 113.9 Product design & development Product design & development – statutory 142.9 185.
Slide 35: Reconciliation of underlying NPAT, NPATA and underlying ETR
Reconciliation of underlying NPAT, NPATA and underlying ETR Net Profit after Tax A$m FY22 FY23 (NPAT) NPAT 194.6 212.2 Fair value gain on acquisition contingent consideration (0.1) (0.2) Non-recurring tax on acquisition contingent consideration (12.8) (2.4) Acquired amortization (net of tax) 5.8 10.
Slide 36: Trinium revenue reclassification
Trinium revenue reclassification 1H19 1H20 1H21 1H22 1H23 FY19 FY20 FY21 FY22 • As announced at 1H23 results, Trinium is a key component of our landside logistics strategy A$m • In line with the acquisitions of Envase and Blume which are reported in CargoWise revenue, Trinium’s revenue is As reporte
Slide 37: CargoWise recurring revenue growth drivers
CargoWise recurring revenue growth drivers Details on inclusions in each category of revenue drivers CargoWise recurring revenue growth drivers Growth rate FY16 to FY23 (averages per year) What’s included Growth in users and transactions from Large Global Large Global Freight Forwarder rollouts 10pp
Slide 38: Global rollouts
Global rollouts Reconciliation of CargoWise application suite global rollouts In Production1 Contracted1 Total LGFF1 Top 251 As at 30 June 2022 32 11 43 10 New contracts signed: NTG Nordic Transport Group, IFB International Freightbridge, - 6 6 1 EMO Trans, Kuehne+Nagel, BBL Cargo, OEC New organic r
Slide 39: Investment trends of logistics companies
Investment trends of logistics companies1 CargoWise and Reuters Events™ research into digital transformation across the logistics industry DOWNLOAD REPORT 38 © 2023 WiseTech Global 1. Unlocking the future: embracing digital transformation in logistics; CargoWise and Reuters Events research conducted
Slide 40: About WiseTech
About WiseTech Our vision is to be the operating system for global logistics including and ASX: WTC (1 July 2022 – 30 June 2023) 17,000+ 24 of the 44 of the logistics customers use our software solutions top 25 top 50 global freight forwarders1 third party logistics providers1 2016 2023 Revenue A$10
Slide 41: About CargoWise
About CargoWise Transforms and optimizes end-to-end logistics processes, putting productivity at the center of everything $880m+ 60% invested in product team focused in the last five years. on product development. 5,300+ product enhancements in the last five years. 11 of the Power of top 25 CargoWis
Slide 42: Sustainability & ESG framework and strategic objectives
Sustainability & ESG framework and strategic objectives Driving greater impact and improvement in our sustainability performance Our sustainability ambition is to be a force for good, improving productivity, connectivity and resource usage across global supply chains. Vision: To be the operating sys
Slide 43: Senior Management Team
Senior Management Team We are led by a highly capable management team with extensive industry experience1 Rich Atkinson Gene Gander Tudor Maxwell Head of People General Manager Global Sales Head of WiseTech Academy Vlad Bilanovsky Mark Hall Caroline Pham Chief Execution Officer Head of Acquisitions
Slide 44: Glossary
Glossary Abbreviation Definition First reference slide A customer attrition measurement relating to the CargoWise application suite (excluding any customers on non-CargoWise Annual Attrition rate - platforms). A customer’s users are included in the customer attrition calculation upon leaving i.e. ha
Slide 45: Important notice and disclaimer
Important notice and disclaimer Content of presentation for information purposes only Preparation of information Visit wisetechglobal.com/investors All financial information has been prepared and reviewed in accordance with Australian Accounting Standards. Certain financial data included in this pre
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