Microlise Group Plc · LSE:SAAS
Microlise — H1 2023 Earnings Presentation
28 slides from Microlise's earnings presentation, September 2023
Slide 1: Interim Results to June 2023
Interim Results to June 2023 Nadeem Raza, Chief Executive Officer Nick Wightman, Chief Financial Officer PRIVATE & CONFIDENTIAL
Slide 2: The Presentation Team
The Presentation Team NADEEM RAZA NICK WIGHTMAN Chief Executive Officer Chief Financial Officer Joined Microlise in 1987. Led a management buyout of the Nick joined Microlise in 2012 and played a key role in the Group in 2008, when he became CEO. He is a board member GroupÕs refinancing and re-organ
Slide 3: Microlise
Microlise A Leading Provider Of Transport Management Solutions To Enterprise Customers q Solving complex needs with proprietary software and hardware solutions q Automating critical processes and providing real time data q Customers benefit from cost savings, emissions reductions and other efficienc
Slide 4: Microlise in Numbers
Microlise in Numbers 1982 623K+ Established in UK Active Subscriptions 690+ <1% Very low customer Staff churn rate 400+ £63M Enterprise Customers FY 2022 Revenue (£42.6m ARR) 197 3 Countries with QueenÕs Award for deployments Enterprise PRIVATE & CONFIDENTIAL
Slide 5: Helping Customers Meet Their Commitments
Helping Customers Meet Their Commitments Improving KPIÕs Including Environmental Emissions, Operating Efficiency And Safety Standards Reduced Mileage Improve Driver Reduce Fuel Use Reduced Emissions Reduce Vehicle Travelled Performance Wear & Tear Reduced Reduced Improved Fleet Elimination of Enhanc
Slide 6: Our Locations
Our Locations Nottingham, UK Coventry, UK Marseille, France Pune, India Melbourne, Australia PRIVATE & CONFIDENTIAL
Slide 7: Highlights
Highlights (H1 2023 vs H1 2022 ) +10.5% +10.3% +4% +11.5% Revenue Recurring Revenue Adjusted EBITDA ARR £33.9m £21.9m £4.5m £44.8m +10% -25% -18.6% Cash & Subscriptions Churn Cash Equivalents 626K 0.5% £14.1m PRIVATE & CONFIDENTIAL
Slide 8: A Proprietary Modular Platform
A Proprietary Modular Platform Enabling Global Enterprises To Run Highly Complex Logistics Supply Chains £50-£100* £40-£60* £25-£35* £15-£30* £15-£20* £5-£20* £5-£30* Transport Planning & Journey Driver Connected Fleet Fleet Fleet Management System Optimisation Management Mobility Performance Compli
Slide 9: Some of Our Customers
Some of Our Customers Case Studies available here: https://www.microlise.com/case-studies/ PRIVATE & CONFIDENTIAL
Slide 10: Highlights
Highlights Acquisition of Great Place to Work Growth ANZ Vita Software 2023 Success Food Retailers 2 TMS Contracts 12 Major Multi-Year Renewals UKI New Business Growth Into Existing Customers Bidfood, Pall-ex, Tesco LF&E, McCulla, STL PRIVATE & CONFIDENTIAL
Slide 11: Product Investments
Product Investments Security Ð Zero Trust Integration across newly Localisations implementation acquired products Reduce Implementation Time & Standardisation & Scalability Innovation Costs PRIVATE & CONFIDENTIAL
Slide 12: Financial Review
Financial Review PRIVATE & CONFIDENTIAL
Slide 13: Revenue Split
Total revenue has increased 10.5% to £33.9m from Revenue Split £30.7m in H1 2023 Recurring revenue increased 10.3% to £21.9m from 40 £19.8m in H1 2023 as a result in strong growth in revenues from both direct and OEM customers 35 2.6 Annual Recurring Revenue (ARR) has 30 2.1 increased 11.5% to £44.8
Slide 14: Profit & Loss
Revenue Growth of 10.5% year on year Gross Margin growth of 11.8% reflecting impact of growth in Profit & Loss 6 months to 6 months to Change higher margin subscription business Jun-23 Jun-22 Continued strong demand from OEM coupled with material £000's £000's % premiums have impacted hardware margi
Slide 15: Cash Flow
Working Capital movements were lower than expected due to £2.8m of debtor receipts being received post Cash Flow period end Six Months Ended 30 June 2023 H1 FY23 (£m) H1 FY22 (£m) Change H1 2023 cash conversion rate reduced to 80% as a result Adjusted EBITDA 4.5 4.3 0.2 of the late debtor receipts.
Slide 16: Market Positioning & Strategy
MARKET POSITIONING & STRATEGY PRIVATE & CONFIDENTIAL
Slide 17: Our Customer's Market
OUR CUSTOMERÕS MARKET COSTS, COMPLEXITY AND INCREASING NET ZERO PRESSURES Customers actively responding to increasing pressure on reducing COMPETITION CONTINUE TO RISE environmental impact of operations and accurately reporting of Increasing pressure to deliver high customer service for less and usi
Slide 18: Operational Environment
Operational Environment • Component shortages expected through to mid- 2023 with normality to supply predicted in H2 2023 • New vehicle availability has impacted direct customersÕ ability to upgrade fleets impacting direct customer implementation projects • Strong demand for Microlise products due t
Slide 19: Execution on a Clear Growth Strategy
Execution on a Clear Growth Strategy Structural Smaller Fleets & New Upsell New Products UK International New Products Growth LCVÕs Geographies Existing Customer Growth New Customer Growth M & A Growth • Continued growth in OEM and resellers in Middle East • New wins include Europa, McCulla, LF&E, C
Slide 20: Investment Case
Investment Case Selling multiple products Typical 5+ year contracts Low customer churn rate into customers makes us give long term visibility of more sticky and difficult to contracted revenue substitute Margin enhancement with Significant market Track record of consistently new products and opportu
Slide 21: ESG Commitments
ESG Commitments • Microlise is continuing to develop its ESG credentials with projects underway to offset the GroupÕs carbon footprint EMPLOYEE ISO 45001 GPTW SOLAR PANELS EVENTS Investing in H&S operations to Great Place To Work 502 panels installed at UK • Highlights include our installation of 50
Slide 22: Outlook
OUTLOOK PRIVATE & CONFIDENTIAL
Slide 23: Outlook
Outlook § Microlise delivered another strong performance § Although we have not declared any dividends, we during H1 2023 as we successfully executed our still intend to become a dividend paying stock in the growth strategy. We secured new customers in our future. key geographies beyond the UK inclu
Slide 24: Microlise Transport Conference 2024
MICROLISE TRANSPORT CONFERENCE 2024 • 19th March , at The Coventry Building Society Arena • One of EuropeÕs Largest Transport Conferences Over 1,100 delegates attended • Previous Speakers : Bosch, DfT, DVSA, National Highways and many more industry leaders • 98% Visitors said they would recommend th
Slide 25: Appendix
APPENDIX PRIVATE & CONFIDENTIAL
Slide 26: Balance Sheet
Balance Sheet 6 months to 6 months to Change Jun-23 Jun-22 £000's £000's £000's % Assets Non-current Assets Property, plant and equipment 9,414 8,645 769 9% Intangible Assets 76,595 75,373 1,222 2% Investments in associate 1,572 1,719 (147) (9)% Loan to associate 1,000 0 1,000 100% Trade & other rec
Slide 27: Disclaimer
Disclaimer For the purposes of this document, the presentation that follows (the ÒPresentationÓ) shall mean and include the slides and the decline in global oil prices). Neither the Company nor any of its subsidiaries nor any of their respective directors, that follow, any oral briefing provided by
Slide 28: www.microlise.com
www.microlise.com Microlise Limited Microlise Group plc Farrington Way Farrington Way Eastwood Eastwood Nottinghamshire Nottinghamshire NG16 3AG NG16 3AG Registered in England & Registered in England & Wales with Company Wales with Company No. No. 03037936 11553192