Connexion Mobility Ltd · ASX:CXZ
Connexion Mobility — Shareholder Meeting (November 2021)
29 slides from Connexion Mobility's shareholder meeting presentation, Nov 17, 2021
Slide 1: Rental and Loaner Fleet Management Platform 2021 AGM Investor Presentation
Rental and Loaner Fleet Management Platform 2021 AGM Investor Presentation
Slide 2: Agenda
Agenda 2 0 21 AGM 1 Introduction INVESTOR PRESENTATION NOVEM BER 2 021 2 Products 3 Strategy 4 FY21 Results 5 Outlook 6 Summary 2
Slide 3: Who We Are
Who We Are Connexion Telematics Limited is a publicly-listed Enterprise-grade software company servicing the US automotive software market. Our software incorporates telemetry, fleet management, contract management and data analytics tools to deliver solutions to the global automotive sector. Our co
Slide 4: Our Products
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Slide 5: Cloud-first since launch
Cloud-first since launch Ease-of-use validated by 15,000 users Encapsulated business rules based on GM’s CTP Solutions integrated with other GM partners – difficult to untangle Our flagship rental management platform, customised for General Motors Trusted relationship built over many years of doing
Slide 6: CXZTRAC brand-agnostic rental management platform
Modelled on OnTRAC and launched in May 2021, CXZTRAC helps OEMs and Dealers to save time and money through: • Quick reservations and DMS integration, reducing time to rent out a vehicle • Affordability - lower prices compared with most competitors • Telemetry, allowing Dealers to recoup excess fuel
Slide 7: In development, our E-store
In development, our E-store will soon enable User access to a growing suite of the most relevant, integrated software vendors 7
Slide 8: Testimonials
Testimonials “OnTRAC is so easy to use, and always adding new features. “We’ve saved so much in reducing audits and incorrect incentive I’d love to have it in my Hyundai and Mazda locations.” payments, the program more than pays for itself.” – Hyundai Dealer Principal – GM HQ Employee “Kudos to you
Slide 9: Our Strategy
Our Strategy Come for the tool, stay for the network 9
Slide 10: Operating Model
Operating Model Operating as a feedback loop, each step not only adds to profitability, but strengthens our moat. In turn, this enhances our strategy of operating at the intersection of Business Process Outsourcing, Customer Experience and Sales. 10
Slide 11: Sales Model
Sales Model Customer Driven Sales Strategy: • Connexion sells to the OEM • OEM sells to the Dealers • Connexion sells further to the Dealers • Dealers sell to the Consumer NOTE: At this stage, “Consumer Sales” merely represents optionality inherent in Connexion’s strategy by way of its distribution
Slide 12: Sources of Value
Sources of Value Generating Economic Value 2017 Onwards. Building Strategic Value General Motors extended for five years. 2020 Onwards. Commercialising Strategic Value New OEM Sales – existing product. A small number of potentially large-ticket Building the value inherent in both our revenue prospec
Slide 13: Sources of Value
Sources of Value OEM Sale* #1 OEM Sale #2 and beyond 2018 Onwards Dealership Sales 2021 Onwards Ecosystem & Data Sales 2021 Onwards Channel Partner 2022 Onwards Sales 2022 Onwards *”OEM Sale” refers to a sale of our current platforms – OnTRAC and CXZTRAC 13
Slide 14: FY21 Results
FY21 Results 14
Slide 15: FY21 Highlights
FY21 Highlights $6,000,000 Revenue $3,500,000 Cash and Liquid Investments $3,000,000 $5,000,000 $2,500,000 $4,000,000 $2,000,000 $3,000,000 $1,500,000 $1,000,000 $2,000,000 $500,000 Our P&L exhibits strong operating leverage typical $1,000,000 of a SaaS company at an early stage of $- FY18 FY19 FY20
Slide 16: Key Trends
Key Trends Four key trends influenced our FY21 results, continuing into FY22: 1. Revenue deterioration from plunging global vehicle inventories (semiconductor chip shortage) 2. Revenue growth from CXZTRAC subscriptions 3. Revenue growth from feature-enhancement delivery 4. Expenditure growth from re
Slide 17: FY21 Vs FY20
FY21 Vs FY20 • FY20 was the prior comparable period, and a record year in virtually all respects. • FY20 included numerous one-off revenue items, record pre-COVID subscriptions levels and the discontinued Commercial Link contract. • FY21 shows growing Recurring Revenue, materially increased R&D expe
Slide 18: True SaaS
True SaaS Revenue Split 100% 4% 8% 9% 5% 6% 10% 90% 28% In years prior, Connexion derived a larger 80% percentage of its revenue from one-off “Services” 70% activity. 60% This was a tactic successfully employed by the 50% 100% 100% 92% 95% 94% 96% Company to repair its balance sheet without 91% 90%
Slide 19: Gross Profit
Gross Profit Conservative accounting treatment means that increasing investment into R&D and Sales & Marketing will weigh on Net Profit for the foreseeable future. The single best metric to track the performance of such investment over time is Gross Profit. Gross Profit is the “engine” of the busine
Slide 20: Economic Drivers
Economic Drivers Team Performance At last year’s AGM, we advised of the three Economic Drivers affecting Connexion in order of influence. These were firstly FX, followed by Subscriptions and Subscriptions then Team Performance. We are pleased to report that the order of influence is now reversed, wi
Slide 21: Economic Drivers: Team Performance
Economic Drivers Team performance remains strong: 1. Extended five-year agreement signed with General Motors, serving as a pleasing validation of the daily value that Connexion brings to General Motors and its Dealers. 2. Rapid and successful pivot undertaken through early CXZTRAC launch to avoid th
Slide 22: Economic Drivers: Subscriptions
Economic Drivers Vehicle subscriptions materially impacted: 1. Vehicle inventory materially impacted by the combination of demand-side followed by supply-side constraints resulting from COVID-19 and the global semiconductor chip shortage. Subscriptions 2. Dealerships across most manufacturer brands
Slide 23: Economic Drivers: FX
Economic Drivers Ongoing FX sensitivity reduced by circa 50% through: 1. Implementing a natural hedge of currency-matching assets and operating expenditure to the extent of available free cash (i.e. converting excess cash into AUD). 2. Implementing a natural hedge of shifting AUD- FX denominated sup
Slide 24: Corporate Team Growth
Corporate 1. Managing Director appointed February 2021, concurrent with a strengthening of the Board with two new Independent Directors. 2. VP of Sales, Group Financial Controller and Lead Developer subsequently appointed. 3. In addition, numerous other technology-related hires Team Growth since mad
Slide 25: Outlook
Outlook Connexion continues to invest meaningfully in R&D, with the US$577k invested in FY21 expected to increase meaningfully in FY22. Virtually all of this R&D investment is expensed through the P&L, lowering reported profitability for the financial years just-reported and subsequent. Shareholders
Slide 26: Summary
Summary 2 0 21 AGM • Fourth consecutive profitable year, with record net cash balance INVESTOR PRESENTATION NOVEM BER 2 021 • General Motors CTP contract renewed for five years • Overall revenues and profits materially impacted by global semiconductor shortage • Further material earnings impact succ
Slide 27: Our Commitment to Shareholders
Our Commitment to Shareholders To Manage Company growth in To Consolidate and deepen To Extend and commercialise line with revenue expectations, our existing commercial new relationships across the delivering profitable business relationships global Automotive OEM market outcomes on an underlying ba
Slide 28: Thank You Shareholder Q&A
Thank You Shareholder Q&A 28
Slide 29: Trusted by thousands of dealers, processing millions of contracts annually
Rental and Loaner Fleet Management Platform Trusted by thousands of dealers, processing millions of contracts annually
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