Slide 1: WiseTech Global FY24 results investor presentation
ASX Announcement: 2024/57 21 August 2024 WiseTech Global FY24 results investor presentation Attached is the FY24 results investor presentation for the year ended 30 June 2024. //ENDS Authorized for release to ASX by Maree Isaacs, Executive Director & Company Secretary. Contact information Investor R
Slide 2: FY24 Results
FY24 Results © 2024 WiseTech Global
Slide 3: Our vision and mission
Our vision Our mission To be the operating system To create breakthrough products that for global logistics. enable and empower those that own and operate the supply chains of the world. © 2024 WiseTech Global
Slide 4: Agenda
Agenda H IG H LIG H TS F Y 24 F IN AN CIAL S TR ATE G Y & Q & A AP P E N DICE S RE V IE W O U TL O O K © 2024 WiseTech Global
Slide 5: Highlights
SECTION 01 Highlights RICHARD WHITE, CEO & F OU NDER
Slide 6: Highlights
Highlights Strong FY24 performance Three breakthrough product releases EBITDA and margin rate above top of the Step change in our product offering with the guidance range. 4QFY24 EBITDA margin run rate announcement of CargoWise Next, Container at 50% Transport Optimization and ComplianceWise CargoWi
Slide 7: FY24 – strong financial performance
FY24 – strong financial performance Delivering on strategy Total revenue $1,041.7m CargoWise revenue $880.3m EBITDA $495.6m ↑ 15% organically1 ↑ 19% organically ↑ 16% organically (↑ 28% reported) (↑ 33% reported) (↑ 28% reported) on FY23 on FY23 on FY23 Total revenue growth $224.8m Total CargoWise r
Slide 8: FY24 financial review
SECTION 02 FY24 financial review ANDREW CARTL EDGE, CF O
Slide 9: FY24 results
FY24 results Strong financial performance Revenue • Total revenue of $1,041.7m, up 28% on FY23, in line with guidance from 1H24 results A$m FY23 FY24 % change • Total CargoWise revenue grew to $880.3m, up 33% on FY23, including 19% organic growth, $81.1m from FY23/FY24 M&A and $20.4m FX tailwind Car
Slide 10: FY24 revenue growth
FY24 revenue growth A$m CargoWise revenue growth $220.7m or 33% - Total revenue growth $224.8m or 28% Recurring & non-recurring revenue CargoWise & non-CargoWise revenue 1,041.7 21.3 32.6 CargoWise 20.4 816.8 204.3 (0.7) Recurring 20.4 Non-CargoWise 0.9 161.4 Non-recurring 0.9 Recurring 79.2 32.4 Re
Slide 11: Revenue growth drivers
Revenue growth drivers CargoWise recurring revenue delivers 33% CAGR CargoWise recurring revenue growth FY16 to FY24 (constant currency) • 33% CAGR FY16 to FY24 (8 years) • Significant R&D investment driving long-term growth • Revenue growth of $777.3m, >9X Major recurring revenue growth drivers (av
Slide 12: Large Global Freight Forwarder rollouts driving revenue growth
Large Global Freight Forwarder rollouts driving revenue growth 51 LGFF rollouts are driving long-term revenue growth 38 LGFFs with rollouts of the CargoWise application 13 LGFFs are suite ‘In Production’2 have delivered: Annual revenue (A$m)1 in constant currency ‘Contracted and In Progress’ • Reven
Slide 13: FY24 operating expenses
FY24 operating expenses1 % of revenue Operating expenses reduced by 1pp as a % of revenue on FY23 Expenses (A$m) Cost efficiency program and lower M&A costs offsets impacts of FY23/FY24 M&A Product design & development (A$m) Sales & marketing (A$m) General & administration (A$m) 20% 20% 17% 16% 17%
Slide 14: FY24 research and development
FY24 research and development Accelerated innovation and product development Investment in innovation and product development (A$m) Product investment • R&D investment increased $106.3m, or 41% vs. FY23 reflecting hiring R&D % 37% and investment in the CargoWise platform and full and part year 33% 3
Slide 15: FY24 balance sheet
FY24 balance sheet Strong balance sheet and liquidity providing solid platform for future growth 30 Jun 23 30 Jun 24 Strong liquidity A$m (Restated)1 • Over $500m in total liquidity from cash and undrawn debt facilities Cash 143.0 121.7 Receivables Receivables 121.0 141.8 • 17% increase driven by re
Slide 16: FY24 cash flow performance
FY24 cash flow performance Highly cash-generative business model delivering strong free cash flow A$m FY23 FY24 % change Strong operating cash flow EBITDA 385.7 495.6 • Operating cash flows up 23% vs. FY23 to $531.1m demonstrating the strength 28% of our highly cash-generative operating model Non-ca
Slide 17: Strategy & outlook
SECTION 03 Strategy & outlook RICHARD WHITE, CEO & FOUNDER
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: 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 and International Customs and Landside Warehouse Domestic logistics logistics compliance freight forwarding compliance logistics
Slide 20: Competitive strength across three axes
Competitive Revolutionize strength across the business model three axes 4 layers of Driving M&A cost efficiencies and integration 19 © 2024 WiseTech Global
Slide 21: Driving efficiencies across our customers' entire cost base
Driving efficiencies across our customers’ entire cost base leading to optimized operations 4. Optimized freight costs Direct costs ~70% of total costs 3. Fines & penalties reductions C A R G O W I S E 4 layers of cost efficiencies 2. Labor costs down Volume growth Operating expenses ~30% of total c
Slide 22: Driving cost and product efficiencies within WiseTech Global
Driving cost and product efficiencies within WiseTech Global Every day we look to how we can run our business and build our product more efficiently and effectively Increased product throughput per $ invested Capitalized % of R&D investment Extensive automation of many normally manual processes 53%
Slide 23: Three breakthrough product releases
Three breakthrough product releases Container Transport ComplianceWise Optimization 22 © 2024 WiseTech Global
Slide 24: Next generation platform
Major new product features • CargoWise Neo Management Portal • Advanced Order Manager • Master and House electronic Bill of Lading (eBL) • CargoWise Mapper • CargoWise Connector • eAdaptor Next • Greenhouse Gas Emissions Calculator Next generation platform • Carrier Contracts & Allocation • Cargo Vi
Slide 25: Container Transport Optimization
Container Transport Optimization Transport provider gains • Better utilization of transport assets • Improved revenue yield Transport buyer gains • Lower container transport costs • Better prediction and visibility • Lower surcharges Removing poor optimization, dead legs, wait times, wharf storage,
Slide 26: ComplianceWise
ComplianceWise Audits and inspections from regulators have become much more aggressive and substantial fines and penalties are now commonplace ComplianceWise helps to automate compliance procedures and demonstrates due diligence has ComplianceWise is integrated into occurred and helps provide protec
Slide 27: Top 25 'In Production' on CargoWise significantly outperform
Top 25 ‘In Production’ on CargoWise significantly outperform Top 25 Container Volume Growth1,5 (FY11 – FY23) • 82%2 growth in CargoWise ‘In Production’3 Top 25 freight forwarders • 12% growth from the Remaining Top 254 freight forwarders 82% 7x 12% 4 CargoWise 'In Production' Remaining Top 25 1. Con
Slide 28: Penetration
Penetration Momentum through existing customer growth & new global rollout wins Six new global rollouts by LGFFs1 secured since 1 Six transitions from ‘Contracted’ to 52 LGFFs including more than 50% of the Top 25 Since 1 July 2023:, CargoWise had global rollouts July 2023: ‘In Production’: Global F
Slide 29: 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 30: FY25 guidance
FY25 guidance Continued strong growth outlook and expanding margins FY25 revenue FY25 guidance assumptions Guidance provided in line 1 CargoWise: revenue growth of ~31% – 37% with these assumptions $1,300m – $1,350m • Organic growth led by new products and those in the • Market growth reflecting rec
Slide 31: Business model and strategy delivering sustainable shareholder value
Business model and strategy delivering sustainable shareholder value Revenue Revenue (A$m) (A$m) (A$m) EBITDA (A$m) EBITDA (A$m) EBITDA margin EBITDA% margin % 51%-52% 50% $1,600.0 47% 48% $1,300- 800 50% $1,400.0 $1,350 41% $660-$700 700 35% 35% 40% 30% 31% 30% $1,200.0 $1,041.7 600 30% $1,000.0 $4
Slide 32: Q&A Investor Hub
SECTION 04 Q&A • AI-generated avatars • About WiseTech • About CargoWise • Leadership Team • Sustainability & ESG • Knowledge Hub | eBooks Investor Hub Contact: investor.relations@wisetechglobal.com
Slide 33: Appendices
SECTION 05 Appendices Slides 33. FY25 guidance assumptions and FX 34. Strategic highlights 35. Customer growth and low attrition 36. Revenue diversification 37. FY24 organic growth 38. CargoWise recurring revenue growth drivers 39. Reconciliation of statutory expenses to non-statutory expenses 40. R
Slide 34: FY25 guidance assumptions and FX
FY25 guidance assumptions and FX What is included in the FY25 FX rates1 vs. AUD FY24 actual FY25 Guidance Foreign Exchange guidance: USD 0.68 0.66 • ~85% of FY24 revenue in non-AUD currencies, • Retention of existing CargoWise customers EUR 0.61 0.61 5pp higher than FY23 (~80%) consistent with histo
Slide 35: Strategic highlights
Strategic highlights Strategic progress on the ‘3P’ strategy to accelerate delivery of our vision powered by our People Product Penetration Profitability • Announcement of three breakthrough product • Six new global rollouts by LGFFs secured • Enhanced operating leverage supporting releases: CargoWi
Slide 36: Customer growth and low attrition
Customer growth and low attrition CargoWise application suite1 revenue by customer cohort A$m (last 12 months) 800 Increasing adoption by LGFFs 700 Top 300 customers deliver ~70% of CargoWise 600 revenue in FY24 (FY23 ~70%) 500 400 Customers stay and use more <1% attrition every year for last 12 yea
Slide 37: Revenue diversification
Revenue diversification Revenue by customers (%) FY24 Revenue by geography1,2 (%) 36% 36% Rest of customers Europe, Middle East & Africa 69% 67% Top 11-20 largest customers Asia Pacific Top 10 largest customers Americas 28% 7% 8% 24% 25% We are a global company with customers operating in 183 countr
Slide 38: FY24 organic growth
FY24 organic growth1 A$m Revenue EBITDA EBITDA margin CargoWise Non-CargoWise Total % % % % FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 change change change change change Recurring revenue 650.1 866.8 33% 134.3 142.3 6% 784.4 1,009.1 29% Non-recurring revenue 9.5 13.5 43% 23.0 19.0 (17)% 32.4
Slide 39: CargoWise recurring revenue growth drivers
CargoWise recurring revenue growth drivers Details on inclusions in each category of revenue drivers CargoWise recurring revenue growth drivers Growth rate FY16 to FY24 (averages per year) What’s included Growth in users and transactions from Large Global Large Global Freight Forwarder rollouts 11pp
Slide 40: Reconciliation of statutory expenses to non-statutory expenses
Reconciliation of statutory expenses to non-statutory expenses A$m FY23 FY24 Cost of Revenues Cost of revenue – statutory 125.6 166.5 Less: Depreciation & amortization 11.7 13.9 Cost of revenues – non-statutory 113.9 152.6 Product design & development Product design & development – statutory 185.8 2
Slide 41: Reconciliation of underlying NPAT, NPATA and underlying ETR
Reconciliation of underlying NPAT, NPATA and underlying ETR Net Profit After Tax A$m FY23 FY24 (NPAT) NPAT 212.2 262.8 Fair value gain on acquisition contingent consideration (0.2) (0.3) Non-recurring tax on acquisition contingent consideration (2.4) (1.8) Acquired amortization (net of tax) 10.9 17.
Slide 42: Armstrong & Associates, Inc Top 25 container volume growth
Armstrong & Associates, Inc Top 25 container volume growth1 Twenty-foot equivalent unit (TEU) data Percent of Top 25 FY23 TEU Volume TEUs millions2 Count FY11 FY23 % Growth LGFFs ‘In Production’ 63 4.9 9.0 82% Remaining Top 25 19 21.9 24.4 12% 27% 35% 6 LGFFs ‘In Production’ 7 LGFFs ‘Contracted and
Slide 43: Global rollouts
Global rollouts Reconciliation of CargoWise application suite global rollouts In Production1 Contracted1 Total LGFF1 Top 251 As at 30 June 2023 33 14 47 11 New contracts signed: Sinotrans, APL Logistics, Yamato Transport, TIBA Tech, - 5 5 1 Grupo TLA Logistics Transition from ‘Contracted’ to ‘In Pro
Slide 44: Development priorities to extend the CargoWise ecosystem
Development priorities to extend the CargoWise ecosystem Continued CargoWise enhancement1 (1,135 FY24) - over $1.1b invested in R&D since FY20 delivering 5,600+ enhancements Six CargoWise product development priorities Digital Customs and International Landside logistics Warehouse Neo documents comp
Slide 45: CargoWise – revolutionizing the industry
CargoWise – revolutionizing the industry 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 Configurat
Slide 46: 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 47: 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
Slide 48: Thank you
Thank you wisetechglobal.com/investors © 2024 WiseTech Global