Trade Window Holdings Ltd. · NZX:TWL
Trade Window — Investor Presentation (July 2022)
39 slides from Trade Window's investor presentation, Jul 12, 2022
Slide 1: Capital Raise – Investor presentation
Capital Raise – Investor presentation 12 July 2022
Slide 2: Disclaimer and important notice
Disclaimer and important notice The following notice and disclaimer applies to this investor presentation and you must Past performance: Any information given in this presentation regarding TradeWindow's read this carefully before reading or making any other use of this presentation or any historica
Slide 3: Disclaimer and important notice (continued)
Disclaimer and important notice (continued) Non-GAAP financial information: Certain financial measures included in this presentation Disclaimer: To the maximum extent permitted by law, none of Trade Window Holdings are non-GAAP financial information. Non-GAAP financial information does not have a Li
Slide 4: Capital raising to fund growth
Capital raising to fund growth • Opportunity for TradeWindow is significant as global trade undergoes game-changing transformation at pace. • TradeWindow is well positioned to build on our strong track record and recent acquisitions to take advantage of growth opportunities. • Up to approximately $1
Slide 5: TradeWindow is building for global growth
TradeWindow is building for global growth Medium-term focus on New Zealand, Australia and Asia Where we have customers Team of 901 subject matter experts spanning Remote staff four countries Offices Customer base of 454 organisations across APAC Proven solutions with material revenue streams ISO 900
Slide 6: Business highlights FY22
Business highlights FY22 We’re making solid progress on executing our business strategy • Organic growth has primarily been driven by Customers Product Prodoc sales in New Zealand • 20 new customers in A/NZ • Cube launched • Providing new solutions to existing • 16 mid-market and enterprise • 348 pr
Slide 7: Key performance indicators
Key performance indicators $4.9m 454 $712 pm Total Income Customers Average Revenue Per Customer Up 108% (Trading Revenue $3.9m up 136%) Up 331 (organic 20, acquired 311) Down 30% (Organic ARPC up 16%) 50% 94% 51% Customer % of expenses Gross Margin R&D and retention rate Commercialisation Up 14 per
Slide 8: Digital trade is centre stage
Digital trade is centre stage Market trends have delivered opportunity MACROECONOMIC TRENDS • Supply chain disruption • Inflation • Global skills shortage CUSTOMER DEMAND TRENDS MARKET ENABLING TRENDS • Operational efficiency Digital Trade • Digitalisation and automation Facilitation • Environment,
Slide 9: Our opportunity
Our opportunity TradeTech is an emerging market with initial solutions displacing manual paper-based processes, emails and spreadsheets Demand for food traceability solutions is estimated to be worth $27 billion1 worldwide of which A/NZ and Asia represent 64%2 Cross-sales to date have proven that va
Slide 10: Driving digital transformation
Driving digital transformation Targeted acquisition has provided a platform for revenue growth • Prodoc – start with the most acute pain point ARPC growth Complete and compliantly formatted trade documents (data) provides the foundations for digital trade facilitation • Cube – immediate opportunity
Slide 11: A large and growing addressable market
A large and growing addressable market1 Millions Focus markets Future markets 1. Indicative market size calculated by the number of TEUs exported/imported as reported by the World Bank multiplied by TradeWindow’s current average revenue per shipment. Capital Raise FY23 11
Slide 12: We're building a global trade platform
We’re building a global trade platform Data supply Data demand Software to capture, Permissioned access to format and aggregate trusted data needed by data to meet trade supply chain partners to compliance requirements deliver their service Capital Raise FY23 12
Slide 13: Our product strategy
Our product strategy We’re converging proprietary and acquired solutions into a single global trade platform Suite of solutions Converged solutions Global trade platform Acquire and build key solutions needed to Converge solutions through secure cloud Network of networks that connects all deliver en
Slide 14: Accelerating our strategic priorities through acquisition
Accelerating our strategic priorities through acquisition What we target Why we acquire • Customer acquisitions – point solutions with high-quality customers • Buying into market positions that would otherwise take years to build that present a cross-selling opportunity. through an organic customer
Slide 15: Acquisition strategy
Acquisition strategy TradeWindow has completed five acquisitions to date and has developed an integration playbook to realise value from each deal Stabilise Develop Grow • Management control of operations. • Fully integrate acquired products with • Organically grow the customer base of • Bring acqui
Slide 16: Rfider acquisition
Rfider acquisition Post balance date acquisition will extend reach into primary industry supply chains Transaction benefits • Rfider has developed a mobile interface that can be rapidly Transaction summary deployed in complex chains to capture many points of data. • Rfider is an all-in-one solution
Slide 17: Capital Raise
RQ TradeWindow Capital Raise /\/\/\
Slide 18: Use of proceeds
Use of proceeds 1. Drive organic growth and a path to profitability • Increasing the capability and capacity of TradeWindow in Australia and New Zealand with a Sources focus on its sales, marketing, product and development expertise. • Building company and product profile to support lead generation
Slide 19: Capital raise summary
Capital raise summary • Seeking to raise up to approximately $10 million through a: Offer size and - Private placement of up to approximately $9 million to eligible investors structure - Share Purchase Plan of approximately $1 million (with the ability to accept oversubscriptions at TradeWindow’s di
Slide 20: Timetable
Timetable Event Date Announcement of equity raising and trading halt pre market open Tuesday, 12 July 2022 Placement Placement opens 10:00am (NZ time), Tuesday, 12 July 2022 Placement closes 3:00pm (NZ time), Wednesday, 13 July 2022 Trading halt lifted Thursday 14 July 2022 Settlement of Placement a
Slide 21: Risk factors
Risk factors Before investing in TradeWindow, you should be aware that an investment Before deciding whether to invest in TradeWindow shares, you must make in TradeWindow has a number of risks, some of which are specific to your own assessment of the risks associated with the investment in TradeWind
Slide 22: Risk factors
Risk factors Information technology and cybersecurity risk Key person risk TradeWindow's core business operations involves the processing and the TradeWindow’s continued success is dependent upon its ability to attract cloud hosting and storage, of customers’ information. Any failures of, or and ret
Slide 23: Risk factors
Risk factors Supply chain disruptions Inability to protect intellectual property TradeWindow serves customers working on the front-line of global trade TradeWindow is a software business with a large proportion of its assets, with a significant portion of its revenue being made up of transaction fee
Slide 24: Risk factors
Risk factors Operating in a competitive market Early-stage business TradeWindow completes globally across multiple segments of the TradeWindow is an early-stage software business operating in a nascent intensely competitive and constantly evolving TradeTech industry and market and is therefore a hig
Slide 25: Risk factors
Risk factors Compliance with laws and regulations Liquidity risk TradeWindow has offices, employees, and customers in eight countries, TradeWindow's operations are reliant on maintaining access to liquidity. In therefore it is impacted by, and subject to, a wide variety of laws and addition to maint
Slide 26: International offer restrictions
International offer restrictions International Offer Restrictions Prospective investors should not construe anything in this document as This document does not constitute an offer of ordinary shares (New legal, business or tax advice nor as financial product advice for the Shares) of TradeWindow in
Slide 27: International offer restrictions
International offer restrictions Wallis and Futuna United States The New Shares have not been offered or sold and will not be offered or This document may not be distributed or released in the United States. sold, directly or indirectly, to the public in Wallis and Futuna other than to This document
Slide 28: Appendix: Additional information
Appendix: Additional information
Slide 29: 450+ organisations use our technology
450+ organisations use our technology Our customers include exporters, importers, freight forwarders and customs brokers Top 10 Customers % of trading revenue Customer base by sector Note, logos don’t correspond to top 10 customers. Capital Raise FY23 29
Slide 30: Team
Team TradeWindow has amassed a team of 901 highly skilled and experienced subject matter experts across both technical and commercial domains Employee headcount by region Split of team by function 1 Full Time Equivalent as at 30 April 2022 Capital Raise FY23 30
Slide 31: Financial summary
Financial summary Strong organic growth, accelerated with targeted acquisitions FY22 FY21 % Change Revenue Trading revenue $3.9m $1.6m 136% Other income $1m $0.7m 42% Total income $4.9m $2.3m 108% Costs Total expenses $14.4m $8.2m 76% Profit (Loss) EBITDA1 ($9.5m) ($5.9m) 63% Net profit (loss) after
Slide 32: A digital connected global trade platform
A digital connected global trade platform Our vision is for a modular platform that consolidates and integrates data, back-end processes, and automates workflow ✓ Common services and architecture patterns • Simplify and standardise the technology stack ✓ Configuration over customisation • Rapid inte
Slide 33: Our strategy
Our strategy Strategic summary Trusted digital trade facilitation delivered through a global trade platform that connects our customers with their supply chain ecosystem Our vision End-to-end connectivity Our strategic priorities across global supply chains Land Grow Unify People Market penetration
Slide 34: Delivering against our strategy
Delivering against our strategy FY22 FY23 and beyond ✓ Further consolidated market leadership in NZ • Build market share in Australia through organic ✓ Commercial launch of Cube in NZ sales focused on mid-market exporters and SME ✓ Entry into the Australian market, winning ‘banner freight forwarders
Slide 35: Delivering against our strategy
Delivering against our strategy FY22 FY23 and beyond ✓ Commercial release of trade contracts, bookings • Converge proprietary and acquired capabilities and new and schedules and origin modules solutions into a single platform Unify ✓ Assimilated acquisitions into TradeWindow’s • Convert legacy solut
Slide 36: Our network in New Zealand has momentum
Our network in New Zealand has momentum Broad range of services provided across the industry in established, growing market Export Our key product offerings in New Zealand Documents • Prodoc is NZ’s #1 export document solution Insights* Certifications • Origin provides a fast turn-around Certificate
Slide 37: Strong foundations established in Australia
Strong foundations established in Australia Focus on accelerating growth in FY23 Export Documents Our key product offerings in Australia Insights* Certifications* • Prodoc is being used by leading seafood and FMCG brands • Origin is being localised for the Australian market • Freight is well positio
Slide 38: Delivering against our strategy
Delivering against our strategy FY22 FY23 and beyond ✓ Acquired Cyberfreight (Freight) • Acquired Rfider (FY23)2 ✓ Acquired SpeEDI Solutions (ExpressFreight1) • Target incumbent software solutions to accelerate Acquire ✓ Acquired FreightLegend entry into new markets • Target adjacent software soluti
Slide 39: Q&A
my / \/ Q&A
Trade Window Holdings — Investor Presentation (July 2022) on 6ix