Slide 1: Interim results for half year to 30 September 2021 and $85m Capital Raising
For personal use only Interim results for the half year to 30 September 2021 and $85m Capital Raising Investor Presentation – 24 November 2021
Slide 2: Disclaimer
DISCLAIMER For personal use only The following notice and disclaimer applies to this investor presentation and you must read this carefully before reading or making any other use of this presentation or any information contained in this presentation. By accepting this presentation you represent and
Slide 3: Disclaimer
DISCLAIMER Forward-looking statements may also assume the success of Serko's business strategies. The success of any of these strategies is subject to uncertainties and contingencies beyond Serko's For personal use only control, and no assurance can be given that any of the strategies will be effect
Slide 4: Contents
Contents For personal use only Executing Into Our Strategic Financial Update Capital Raising Company Snapshot Global Strategy Priorities and Outlook Overview and Key Risks 4 |
Slide 5: Executive Summary
Executive Summary For personal use only • The COVID-19 pandemic is a rare event that is reshaping the business travel industry landscape, impacting both the suppliers of travel content and services and the evolving needs of business travel buyers. • This shift is giving rise to consolidation and dis
Slide 6: Executing Into Our Global Strategy
For personal use only Executing Into Our Global Strategy 6 |
Slide 7: Serko has invested for growth against the head-winds of COVID
SERKO HAS INVESTED FOR GROWTH AGAINST THE HEAD-WINDS OF COVID PROGRESS SINCE OCTOBER 2020 For personal use only Booking.com North America Australia / New Zealand Delivered a self-service solution to on-board Moved beyond market validation and Demonstrated resilience through customers to book and man
Slide 8: Our growth opportunity has global scale
OUR GROWTH OPPORTUNITY HAS GLOBAL SCALE THE ZENO TRAVEL PLATFORM IS NOW AVAILABLE IN 180 COUNTRIES For personal use only § In 2019, Zeno Travel was available in English and Te Reo Māori, primarily distributed across Australia and New Zealand with nascent market entry in North America and the UK. § 2
Slide 9: Serko is now poised to enter the next phase of growth
SERKO IS NOW POISED TO ENTER THE NEXT PHASE OF GROWTH For personal use only GLOBAL BUSINESS TRAVEL MARKETPLACE OPPORTUNITIES TO ACCELERATE MARKETPLACE STRATEGY GLOBAL ONLINE ACTIVATE & ENGAGE BOOKING TOOL BOOKING.COM FOR BUSINESS CUSTOMERS MIGRATE BOOKING.COM FOR BUSINESS CUSTOMERS ESTABLISH GROWTH
Slide 10: We are building a global business travel marketplace
WE ARE BUILDING A GLOBAL BUSINESS TRAVEL MARKETPLACE BY BRINGING THE WORLD’S TRAVEL SUPPLIERS AND TRAVEL BUYERS TOGETHER For personal use only The world’s travel content The world’s business travel buyers CONTENT SERVICES UNMANAGED MANAGED Air Carbon Offset1 Rail Risk Management1 Accommodation Trave
Slide 11: Through a single platform to serve multiple customer segments
THROUGH A SINGLE PLATFORM TO SERVE MULTIPLE CUSTOMER SEGMENTS For personal use only The world’s travel content The world’s business travel buyers UNMANAGED SME GLOBAL DISTRIBUTION SYSTEMS CUSTOMERS CONTENT PARTNERS AGGREGATORS TMC PARTNERS TMC STOREFRONTS CORPORATES MANAGED NB: These are representat
Slide 12: Serko is solving the friction of the business travel lifecycle
SERKO IS SOLVING THE FRICTION OF THE BUSINESS TRAVEL LIFECYCLE For personal use only § From pre-trip approval through in-trip purchasing to post-trip ü ü reporting, the current reality is that business travellers are required to interact with a multitude of disconnected systems, providers and data.
Slide 13: Strategic Priorities
For personal use only Strategic Priorities 13 |
Slide 14: Strategic summary: our plan on a page
S T R AT E G I C S U M M A R Y Our plan Leverage our strength in A/NZ to expand into international markets through strategic alliances that enable the business model transformation on a page For personal use only from an Online Booking Tool to a B2B Marketplace. O U R 5 S T R AT E G I C P I L L A R
Slide 15: Booking.com for Business: migration phase
BOOKING.COM FOR BUSINESS 1 PHASE 1: PHASE 2: PHASE 3: ACTIVATING MIGRATION MIGRATION SCALING + ENGAGING COMPLETE H2 FY22-FY23 FY23-FY24 For personal use only • Mission to become the leading digital travel platform for small and medium sized businesses in the unmanaged travel space. • Successfully co
Slide 16: Activating & engaging Booking.com for Business
ACTIVATING & ENGAGING 1 PHASE 1: PHASE 2: PHASE 3: BOOKING.COM FOR BUSINESS MIGRATION ACTIVATING SCALING + ENGAGING COMPLETE H2 FY22-FY23 FY23-FY24 For personal use only • Through the initial migration phase we believe we have captured under 10% of the pre- COVID opportunity and the journey to more
Slide 17: Establishing growth in North America
ESTABLISHING GROWTH IN NORTH 2 AMERICA PHASE 1: VALIDATION PHASE 2: ESTABLISHING GROWTH PHASE 3: SCALING COMPLETE FY22-FY23 FY24 For personal use only • Validation phase in North America is complete, and the Zeno brand now has a presence in market that is driving pipeline growth. • Focus is now on s
Slide 18: Consolidating our leadership in A/NZ managed travel
3 CONSOLIDATING OUR LEADERSHIP IN A/NZ MANAGED TRAVEL For personal use only • The majority of Serko’s revenues come from domestic bookings in Australia and New Zealand. Serko continues to occupy a strong market position in Australasia, providing corporate travel content to a large share of managed t
Slide 19: Establishing our global offering through Zeno
4 ESTABLISHING OUR GLOBAL OFFERING THROUGH ZENO TRANSFORMING FROM AN ONLINE BOOKING TOOL INTO A MARKETPLACE ECOSYSTEM PLATFORM For personal use only • Building out our connected trip vision is a core focus for Serko, creating an open platform with a content hub that enables the scalable connection o
Slide 20: Building Team Serko to enable scale-up
BUILDING TEAM SERKO TO ENABLE SCALE-UP 5 INVESTING IN THE PEOPLE , BUSINESS PROCESSES AND TECHNOLOGY FOUNDATIONS For personal use only • Serko is focused on developing our employee experience to engage and retain a global, diverse workforce in a competitive talent landscape and aligning our people t
Slide 21: ESG: Serko launches Mission Zero
ESG: SERKO LAUNCHES MISSION ZERO For personal use only • In October 2021 Serko announced the launch of Mission Zero. As a company providing travel-related booking tools that are used by thousands of organisations around the world to book millions of trips, we recognised we could play a key role in h
Slide 22: Update on M&A activity
UPDATE ON M&A ACTIVITY For personal use only • As part of its growth strategy Serko regularly assesses potential strategic acquisitions which would accelerate realisation of its strategic goals, particularly the global marketplace strategy. • Serko is currently in negotiations regarding the potentia
Slide 23: Financial Update and Outlook
For personal use only Financial Update and Outlook UNAUDITED FINANCIAL RESULTS FOR THE HALF YEAR TO 30 SEPTEMBER 2021 23 |
Slide 24: 1HFY22: Weathering the pandemic, investing for growth
1HFY22: WEATHERING THE PANDEMIC, INVESTING FOR GROWTH PERFORMANCE COMPARED TO PRIOR COMPARABLE PERIOD For personal use only PROFIT (LOSS) REVENUE ACTIVITY COSTS (15.2m) 81% 81% 16% 95% 157% 52% 42% PRODUCT NET LOSS AFTER OPERATING RECURRING TOTAL PEAK ATMR 3 TRAVEL DESIGN & OPERATING TAX REVENUE REV
Slide 25: Net profit summary / EBITDA reconciliation
NET PROFIT SUMMARY/ EBITDA RECONCILATION For personal use only Net Profit Summary H1 FY22 H1 FY21 FY21 6 months 6 months change change 12 months • Operating Revenue of $9.2m is up 81% from EBITDA Reconciliation $000 $000 $000 % $000 H1 FY21 (when COVID-19 disruptions to Australasia travel markets ha
Slide 26: Revenue analysis
REVENUE ANALYSIS Revenue and Other Income H1 FY22 6 months H1 FY21 6 months change change FY21 12 months by Type $000 $000 $000 % $000 For personal use only Travel platform revenue 5,826 2,159 3,667 170% 6,354 • Recurring product revenue is up 81%. Expense platform revenue 1,966 2,013 (47) -2% 3,997
Slide 27: Transaction analysis - A/NZ
TRANSACTION ANALYSIS - A/ NZ For personal use only • In the first quarter, NZ booking volumes averaged 151% of pre-COVID-19 levels; peaking Australasia transactions as % of pre-COVID-19* in June at over 160%. 180% • In Australia, the first quarter recovery was 160% slower, averaging at 62% of pre-CO
Slide 28: Operating expenses
OPERATING EXPENSES For personal use only • Operating expenses increased compared to Operating Expenses H1 FY22 H1 FY21 FY21 6 months 6 months change change 12 months H1 FY21 in all categories with higher activity $000 $000 $000 % $000 and increased remuneration and benefits (R&B) which increased 33%
Slide 29: Product design and development
PRODUCT DESIGN AND DEVELOPMENT For personal use only • Product design and development costs is a Product Design and Development H1 FY22 H1 FY21 FY21 non-GAAP measure representing the internal Expenditure 6 months 6 months change change 12 months $000 $000 $000 % $000 and external costs related to re
Slide 30: Balance sheet
BALANCE SHEET For personal use only Balance Sheet H1 FY22 H1 FY21 FY21 • Average monthly cash burn in the half year 30 Sep 21 30 Sep 20 change change 31 Mar 21 was $2.9m, below the midpoint of the $000 $000 $000 % $000 guidance of $2m - $4m. • Cash and Short-term deposits reduced by Cash and Short-t
Slide 31: FY22 Outlook
FY22 OUTLOOK Serko continues to see strong growth opportunities and we believe our target of reaching $100 million revenue in the mid-term remains For personal use only • achievable. This revenue target has been delayed during this COVID-affected year, and impacts from the pandemic and other factors
Slide 32: Capital Raising Overview
For personal use only Capital Raising Overview 32 |
Slide 33: Use of proceeds
USE OF PROCEEDS 1. Investing for growth with Booking.com for Business (~35%) For personal use only • Following the successful migration of Booking.com business customers onto the new Zeno powered Booking.com for Business platform, Serko will undertake targeted investment to optimise customer engagem
Slide 34: Capital raising overview
CAPITAL RAISING OVERVIEW For personal use only - NZ$85 million1 equity raising, comprising: - NZ$75 million fully underwritten Placement Offer size - NZ$10 million non-underwritten Retail Offer together representing approximately 11.2% of Serko’s currently issued capital2 - New shares to be offered
Slide 35: Timeline
TIMELINE For personal use only Offer announcement Wednesday, 24 November 2021 Placement Conduct placement Wednesday, 24 November 2021 Trading halt on NZX and ASX Wednesday, 24 November 2021 Announce completion and resume trading Thursday, 25 November 2021 Settlement on the ASX Tuesday, 30 November 2
Slide 36: For personal use only
For personal use only 36
Slide 37: Company Snapshot and Key Risks
For personal use only Company Snapshot and Key Risks 37 |
Slide 38: About Serko
ABOUT SERKO FOUNDED IN 2007 For personal use only Innovative Solutions Market Leader NZX/ASX Listed Serko is a technology company focused on Serko is a leading supplier of travel Serko listed on the New Zealand stock innovative solutions that address the technology solutions for TMCs in Australasia
Slide 39: Serko products
SERKO PRODUCTS For personal use only Zeno Travel Zeno Expense Zeno Travel is an Online Zeno Expense automates Booking Tool (OBT) that the process of corporate corporate travellers use to card and out-of-pocket book flights, trains, hotels, expense submission, rental cars and airport reconciliation a
Slide 40: Key risks
KEY RISKS For personal use only Like any investment, there are risks associated with an investment in Serko shares. Before investing in Serko, you should be aware than an investment in Serko has a number of risks, some of which are specific to Serko and some of which relate to listed securities gene
Slide 41: Key risks (continued)
KEY RISKS (continued) For personal use only Global travel trends generally Serko’s revenue is highly dependent on transaction volumes in the global travel industry, particularly air travel transaction volumes. Serko's revenue is largely tied to travel suppliers’ transaction volumes booked via the Se
Slide 42: Key risks (continued)
KEY RISKS (continued) For personal use only Competitor risks / reseller relationships Serko competes globally with both online and traditional travel reservation and related services. The markets for the services Serko offers is intensely competitive, constantly evolving and subject to rapid change,
Slide 43: Key risks (continued)
KEY RISKS (continued) For personal use only Information technology and cybersecurity risk Serko relies on the performance, reliability and availability of its information technology, communication and other business systems. Any damage or interruption to, or failure of, Serko's key systems may resul
Slide 44: Appendix: Foreign Selling Restrictions
For personal use only Appendix: Foreign Selling Restrictions 44 |
Slide 45: Foreign selling restrictions
FOREIGN SELLING RESTRICTIONS For personal use only International Offer Restrictions This document does not constitute an offer of ordinary shares (New Shares) of Serko in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Sh
Slide 46: Foreign selling restrictions
FOREIGN SELLING RESTRICTIONS For personal use only Hong Kong WARNING: The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the Placement. If you are in any doubt about any of the contents of this document, y
Slide 47: Foreign selling restrictions
FOREIGN SELLING RESTRICTIONS For personal use only Switzerland This document is not intended to constitute an offer or solicitation to purchase or invest in the New Shares described herein. The New Shares may not be publicly offered, sold or advertised, directly or indirectly, in, into or from Switz
Slide 48: Foreign selling restrictions
FOREIGN SELLING RESTRICTIONS For personal use only United States This document may not be distributed or released in the United States. This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or in any other jurisdiction in which such
Slide 49: Definitions
DEFINITIONS For personal use only • Peak ATMR (Annualised Transactional Monthly Revenue) is a non-GAAP measure. Serko uses this as an indicator of recurring revenues from Serko products. It is calculated by annualising the combination travel and expense platform monthly revenues for the most recent
Slide 50: Thank you
For personal use only Thank you