Slide 1: FY2020 Annual Financial Results
Integrated Research Limited (IRI) For personal use only FY2020 Annual Financial Results August 2020 John Ruthven, CEO Peter Adams, CFO complexity simplified
Slide 2: IRI at a Glance
IRI at a Glance Our purpose is to create clarity and insight in a world of connected devices For personal use only Highlights • IR is the leading global provider of user experience and performance management solutions for Unified Communications, Payments and IT Infrastructure. • Global enterprise cu
Slide 3: Performance Review: Delivering record results
Performance Review (A$M) Delivering record results For personal use only 110.9 100.8 24.2 21.2 UP 10% UP OPERATING 14% REVENUE CASH FLOW1 2019 2020 2019 2020 24.1 21.9 22% 22% UP NET PROFIT Consistent NET PROFIT 10% AFTER TAX AFTER TAX MARGIN 2019 2020 2019 2020 31% 7.25c 7.25c 29% DOWN Maintained R
Slide 4: CEO Key Messages
CEO Key Messages Increasing leverage to long term growth trends For personal use only Strong Performance - revenue and profit up 10%; licence sales up 15% Satisfied Customers – customer satisfaction up 25%; biggest deal in company history; 38 new customers Accelerated Innovation – SaaS platform live
Slide 5: Decisive COVID-19 Response
Decisive COVID-19 Response Continuing to deliver client solutions, remotely For personal use only COVID–19 Impact Response Customers Innovation & Agility Increased demand for collaboration Investment in Teams and Zoom solution Strength of long term relationships Marketing spend directed to virtual e
Slide 6: Stories from the Field
Stories from the Field Growth driven by solving high value customer problems maintain grow new For personal use only JP Morgan GSK Woolworths GlaxoSmithKline Customer experience; Thousands of Video conferencing problem payment failures & transactions a second; platform failure or poor declines; 45,0
Slide 7: Blue Chip Customer Base
Blue Chip Customer Base 38 new customers added in FY20 For personal use only Telecom/IT Financial Other Healthcare Not-for-Profit over $3M new logo 7
Slide 8: Revenue Analysis - Geographic
Revenue Analysis - Geographic APAC consistent growth with solid ROW performance For personal use only Asia Pacific Revenue A$M Europe Revenue £M Americas Revenue US$M 20 10 60 18 9 8 50 16 14 7 40 12 6 10 5 30 8 4 3 20 6 4 2 10 2 1 0 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 20
Slide 9: Revenue Analysis - Product
Revenue Analysis - Product Step change: remote working and cashless transactions For personal use only Unified Communications $M Payments $M Infrastructure $M 70 20 35 60 30 50 15 25 40 20 10 30 15 20 5 10 10 5 0 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 201
Slide 10: Proforma Subscription Revenue
Proforma Subscription Revenue* Subscription recurring revenue more than 80% of proforma total revenue For personal use only Unified Communication A$M Payments A$M Infrastructure A$M 12.0 25.0 372B 60.0 50.0 10.0 20.0 40.0 8.0 15.0 30.0 6.0 card transactions 10.0 20.0 4.0 2.0 5.0 10.0 - - - FY17 FY18
Slide 11: Results Summary
Results Summary Another record year For personal use only Year ending Jun 2020 * Jun 2019 % change A$M A$M A$M Total revenue 110.9 100.8 10% EBITDA 42.9 40.2 7% EBITDA margin 39% 40% -1ppt EBIT 30.9 28.9 7% EBIT margin 28% 29% -1ppt Profit after tax 24.1 21.9 10% Profit after tax margin 22% 22% Basi
Slide 12: Net Cash Flow movement
Net Cash Flow movement Servicing innovation and return to shareholders For personal use only Strong balance Improvement sheet – net in cash from cash $4.7M 50 5.0 operations 30.3 40 30 14.0 Continuing A$M dividend 20 payments 12.5 9.7 10 9.3 8.5 Development 0 Opening cash Cash from Debt Development
Slide 13: Balance Sheet
Balance Sheet Well positioned to fund growth Jun 20 Jun 19 For personal use only A$M A$M Cash and cash equivalents 9.7 9.3 Strong balance sheet – net cash Trade and other receivables 87.3 72.8 Strong balance $4.7M Intangible Assets 29.1 23.1 sheet – net cash $4.7M Right-of-use Assets 6.4 - All Other
Slide 14: R&D Strategy
R&D Strategy Accelerate innovation and reduce time to market For personal use only IR invests 20% of revenue on R&D to drive sustainable growth goal financial outcome scorecard key deliverables Invest to maintain - New SaaS the base and V value bring new products to Revenue growth Improving products
Slide 15: Evolution to Cloud
Evolution to Cloud Hybrid cloud and SaaS opportunity for IR For personal use only Hybrid strategy Beta customers on MS Teams & Zoom validated new SaaS platform launching in H1 The Myth of the 100% Cloud: Many businesses are instead Daily call volumes over MS Teams ‘daily active boosting on-premises
Slide 16: Key Success Drivers
Key Success Drivers Leveraging long term structural growth trends For personal use only 1. Unified Remote working Strong renewals New products, SaaS, Communications base hybrid Cashless Expand addressable New products, SaaS, 2. Payments transactions market hybrid Continued growth Americas has turned
Slide 17: Investment Summary
Investment Summary Driving sustainable long-term performance For personal use only complexity simplified Strong Financial High Quality Defensive Growth performance Leveraged to Mission critical 87% of revenues structural growth in 11% Revenue CAGR software recurring in nature cloud-based since 2013
Slide 18: Appendix
For personal use only Appendix
Slide 19: IR Capabilities
For personal use only Who we are What we do IR Capabilities IR is the leading global provider of user Prognosis provides best in class performance experience and performance management management across Unified Communications, solutions for Unified Communications. Payments Contact Centres and Paymen
Slide 20: Revenue Model by Segment
Revenue Model by Segment For personal use only UC & CC Payments Infrastructure Term Recurring License Fees Term Recurring Term Recurring Perpetual Maintenance Fees Recurring Recurring Recurring SaaS Fees Recurring N/A N/A Testing Solutions Part Recurring N/A N/A Consulting Non-Recurring Top 10 custo
Slide 21: Proforma Subscription Revenue
Proforma Subscription Revenue For personal use only Purpose: To provide an alternate view of underlying performance by restating term licence and maintenance revenues on a recurring subscription basis How: • All licence sales from FY2012 to FY2020 were analysed for each region in their natural curre
Slide 22: Proforma Subscription Revenue
Proforma Subscription Revenue For personal use only Annual revenue FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 A$M A$M A$M A$M Infrastructure 21.0 19.8 20.1 21.6 2% -6% 1% 8% Payments 5.2 6.5 8.2 10.5 12% 24% 27% 27% Unified Communications 36.9 41.0 47.9 53.1 1% 11% 17% 11% Subscription revenues 63.1 67
Slide 23: Multiple Channels to Market
Multiple Channels to Market Customer “High Touch” Model For personal use only Sales Network Direct: Global coverage with Fortune 500 Distribution: Direct Sales Indirect Sales Service Provider Sales Alliance Partners Distribution Resellers Service Providers Customers 23
Slide 24: Prognosis Solution Components
Prognosis Solution Components Insightful & effective Value & speed Flexible & Secure For personal use only Proactive end-to-end insights Fast time to value with a small Cloud enabled with secure access across multi-vendor ecosystems footprint and rapid extensibility for visibility anytime anywhere t
Slide 25: On-premise to Cloud – the hybrid journey
Supporting Enterprise Customers Evolution to Cloud On-premise to Cloud – the hybrid journey For personal use only Leading vendor for Today 25% of UC deployments Support on-premise, SaaS, and on-premise UC, payments, and are cloud based, by 2023 this is hybrid deployments which will be infrastructure
Slide 26: High Quality Revenues
High Quality Revenues Diversified contribution and risk spread For personal use only Licence fees by contract length Major H2 deals across regions and product Product 60% Customer Region Industry Group 50% JP Morgan Americas Pay’t/Infra Financial Services 40% NTT Global Unified Comms Communications
Slide 27: Cash Flow
Cash Flow Improved cash receipts from customers Jun 20 * Jun 19 Change For personal use only A$M A$M Cash flows from operating activities Cash receipts from customers ex debtor factoring 88.8 84.5 5% Cash receipts from debtor factoring 7.6 5.0 52% Significant improvement in Cash receipts from custom
Slide 28: Financial track record
Financial track record Growth and return to shareholders For personal use only Consistent 100.8 110.9 27% 28% 28% 29% 28% growth Strong balance 84.5 91.2 91.2 25% sheet – net 70.3 cash $4.7M REVENUE EBIT A$M MARGIN 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Long-term shareholder val
Slide 29: Financial Track Record (Annual results)
Financial Track Record (Annual results) Annual Results (A$M): Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 10 year CAGR For personal use only Licence fees 18.4 25.0 28.9 26.6 28.0 41.0 45.7 53.4 52.6 62.8 72.1 15% Revenue 38.2 44.6 48.6 48.9 53.2 70.3 84.5 91.2 91.2 1