Slide 1: IPO Presentation December 2022
For personal use only Making ® big ideas IPO PRESENTATION DECEMBER 2022 ® 1
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER Issuer and Purpose: this Presentation has been prepared occur in the future (including projections of revenue, taxation advice in respect of the taxation treatment of an and issued by SOCO Corporation Ltd (the Company) to be expense, net income and customer take up and conversion) i
Slide 3: Section 01: Our mission
SECTION 01 For personal use only Our mission is to elevate our clients, partners, and team to become the heroes of their story, standing shoulder-to- shoulder to help make their big ideas real. 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY A leading Australian For personal use only that puts people first, and technology second Operating for 9 years 3-year sustained organic1 average annual revenue over 61% CAGR FY22 pro forma EBIT2 of $1.8M (pro forma EBITDA2 of $2.0M ) on $13.4M revenue Forecasting FY23 pro forma EBI
Slide 5: Winning Team
WINNING TEAM Board Active role played by Tom Stianos Non-Executive Chairman For personal use only Currently Chair of Xref Ltd (ASX:XF1) and NED of Gale Pacific Ltd (ASX:GAP); former Chair of Empired Ltd (ASX:EPD) and MD of SMS Management & who each remain major shareholders Technology Ltd (ASX: SMX)
Slide 6: What SOCO Does
WHAT SOCO DOES This is For personal use only SOCO is an Australia-based IT services consultancy, headquartered in Brisbane and with clients nationwide SOCO delivers and supports enterprise-grade software solutions built on Microsoft cloud technology such as SharePoint, Dynamics, Office 365, Azure, B
Slide 7: What SOCO Does: Strive to deliver the promise for clients
WHAT SOCO DOES Strive to deliver the For personal use only promise for clients MODERN WORKPLACE BUSINESS APPLICATIONS OPERATIONS AND FINANCE DATA AND ANALYTICS Collaboration & communication Integrated and purpose-built Finance and ERP solutions Enabling data-driven decisions Improve productivity and
Slide 8: Business Model
BUSINESS MODEL Winning For personal use only that has been refined over 9 years In FY22 SOCO made money from 3 broad categories: Project based services Don’t compete on price As per Discover, Design, Deliver methodology steps ▪ Compete on business value Discovery and Design engagements often fixed p
Slide 9: Who SOCO Serves
WHO SOCO SERVES Serving a 7% 5% FY22 Revenue QLD – 32% For personal use only ACT – 58% VIC – 6% NSW – 2% 29% Other – 2% spanning different sectors and regions 59% Clients consistently expand and utilise Federal Government Corporations SOCO's services: State & Local Gov • 56 retained clients delivere
Slide 10: The Opportunity
THE OPPORTUNITY The current For personal use only for SOCO is huge In FY22 annual expenditure on IT services (ANZSIC M7000) in Australia was $71.1 billion2 - delivering $6.5 billion profit at an average margin of 9.1%. The industry expectation is growth of 2.78% per annum in 2023 and 3.76% in 2024,
Slide 11: Profitable in every year since being founded
SECTION 02 For personal use only Profitable in every year since being founded 9 years ago with strong and consistent organic growth. 11
Slide 12: Company Financials
COMPANY FINANCIALS SOCO has delivered For personal use only with consistency and sustainability Proven and consistent organic2 revenue growth: Consistent Revenue and EBIT1 Growth > 61% over the last 3 years $20.0m Pro forma EBIT margin averaged 15% over last $3.0m 3 years, with FY23 forecast at 16%
Slide 13: Company Financials: Reliable and strong fundamentals
COMPANY FINANCIALS Reliable and For personal use only is underpinned by strong fundamentals Strong and profitable Pro forma organic1 revenue growth Pro forma Historical Results for FY20, FY21, and Pro forma Historical Forecast FY22 and Pro Forma Forecast Results for FY23F $000's FY20 FY21 FY22 FY23F
Slide 14: Tight capital structure
SECTION 04 For personal use only Tight capital structure with the first external capital raised being through a proposed IPO raising. 14
Slide 15: Growth Opportunities
GROWTH OPPORTUNITIES A multitude of For personal use only to continue sustained growth The purpose of the offer is to: provide funding for SOCO to implement the business model, objectives, and planned growth initiatives, including acquisitions provide SOCO with the benefits of an enhanced profile th
Slide 16: Indicative IPO Structure and Use of Funds
INDICATIVE IPO STRUCTURE AND USE OF FUNDS1 Incredibly clean capital structure at For personal use only on track for 2022 Raising $5.0M1 at an enterprise value of $21.0M1. The founders are not selling down as part of the IPO and will be voluntarily escrowed for 12 months3. The only tradable shares wi
Slide 17: Section
For personal use only 17 SECTION 05
Slide 18: What SOCO Does: Industry Panels and Partnerships
WHAT SOCO DOES Industry For personal use only Industry Panels and Partnerships In October 2022 Microsoft retired the traditional Gold and Silver Whole of Government Panel ICT Service Panel ICTSS.13.03 (QLD) competencies, and introduced a new Solutions Partner program. Qualification for the Solutions
Slide 19: Talent and Culture
TALENT AND CULTURE Culture drives For personal use only which leads to exceptional client success Excellent track record of attracting and retaining consultants that align with SOCO's values and can deliver against SOCO's brand promise. • Employee retention rate of 98% in FY221 • Destination employe
Slide 20: How SOCO Works
HOW SOCO WORKS Small. Packets. Of. Work. For personal use only Discover. Design. A shared understanding of success The vision of the future SOCO's team of experienced Business Analysts Once requirements are agreed, SOCO's and User Experience Consultants work closely Solution Architects design a solu
Slide 21: For personal use only
For personal use only Simon Forth Richard Rouse Chief Executive Officer Director, Corporate Finance SOCO Corporation Ltd Sequoia Corporate Finance Phone: 1300 014 322 Email: richardrouse@sequoia.com.au Email: simon.forth@soco.com.au Steve Parks Chief Financial Officer SOCO Corporation Ltd Phone: 130