Serko Ltd. · NZX:SKO
Serko — Investor Presentation (October 2020)
30 slides from Serko's investor presentation, Oct 1, 2020
Slide 1: Capital Raising Investor Presentation 2020
For personal Fam Soy Raising Investor Presentation il oe 2020
Slide 2: Disclaimer
2 DISCLAIMER For personal use only The following notice and disclaimer applies to this investor presentation and you are therefore advised to read this carefully before reading or making any other use of this presentation or any information contained in this presentation. By accepting this presentat
Slide 3: Disclaimer
3 DISCLAIMER For personal use only future events which may or may not be correct. 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 control, and no assurance can b
Slide 4: Contents
4 CONTENTS For personal use only Strategic Capital Raising Financial Outlook Updates Overview Update Statement
Slide 5: Strategic Updates
5 For personal use only Strategic Updates ‹#›
Slide 6: Accelerating to execute on the opportunities of a changing business travel market
6 ACCELERATING TO EXECUTE ON THE OPPORTUNITIES OF A CHANGING BUSINESS TRAVEL MARKET For personal use only • Serko’s Board and management consider Serko’s market positioning and growth prospects within the travel industry remain significant over the medium to long-term, notwithstanding the impact of
Slide 7: Foundations of the path to $100 million revenue
7 FOUNDATIONS OF THE PATH TO $100 MILLION REVENUE For personal use only * • As previously announced, Serko is targeting $100 million in revenue over the medium term, although the pandemic is likely to have slowed the timing of achieving that goal.
Slide 8: Australasia market update
8 AUSTRALASIA MARKET UPDATE For personal use only • Serko occupies a strong market position in Australasia, with the majority of Serko’s revenues coming from domestic bookings in Australia and New Zealand. • The lifting of travel restrictions in New Zealand (following the adoption of Alert Level 1 i
Slide 9: North America market update
9 NORTH AMERICA MARKET UPDATE For personal use only • During FY20, Serko invested heavily in the Serko Zeno platform for expansion into the North American market and had its first live bookings following beta release in September 2019. • Currently booking volumes are low, however, this market provid
Slide 10: Booking.com update
10 BOOKING.COM UPDATE For personal use only • In October 2019, Booking Holdings Inc. made a cornerstone investment in Serko, and Booking.com expanded its existing agreement with Serko so that Booking.com can offer and promote a white label of the Zeno platform to its business traveller customers. •
Slide 11: Capital Raising Overview
11 For personal use only Capital Raising Overview ‹#›
Slide 12: Capital raising overview
12 CAPITAL RAISING OVERVIEW For personal use only - NZ$55 million equity raising, comprising: - NZ$45 million fully underwritten Placement Offer size - NZ$10 million non-underwritten Share Purchase Plan together representing approximately 13.6%* of Serko’s currently issued capital - New shares to be
Slide 13: Use of proceeds
13 USE OF PROCEEDS For personal use only Notwithstanding Serko has $33.6 million cash on its balance sheet, the timing of meaningful revenue generation is uncertain, therefore the Board of Serko is adopting a prudent approach with regards to capital management in this COVID-19 environment, and is ra
Slide 14: Use of proceeds
14 USE OF PROCEEDS For personal use only • Serko considers its market positioning and growth prospects within the business travel industry remains significant over the medium to long-term, notwithstanding the impact of the COVID-19 pandemic, and remains confident in the recovery of business travel o
Slide 15: Timeline
15 TIMELINE For personal use only Offer announcement Thursday, 1 October 2020 Placement Conduct underwritten placement Thursday, 1 October 2020 Trading halt on NZX and ASX Thursday, 1 October 2020 Announce completion and resume trading Friday, 2 October 2020 Settlement on the ASX Tuesday, 6 October
Slide 16: Financial Update
16 For personal use only Financial Update The indicative FY21 interim results included in this presentation are estimates based on performance to date and projected to the end of September 2020. They are unaudited, and have been prepared on the basis of Serko’s management accounts. This financial up
Slide 17: Financial Update
17 Financial Update For personal use only • Total Revenue* estimate for the six-month period to 30 September is $4.5 million to $5 million** • Grant Income for the period includes $3 million global COVID-19 Subsidies received and $0.5m R&D Grants recognised for the six-month period • Total Income* e
Slide 18: Transaction Volumes Update
18 Transaction Volumes Update For personal use only Transactions volumes • Australasian travel bookings increased between April and July 2020 as travel (Percentage of prior year volumes) restrictions were lifted in New Zealand and counterbalanced by continuing low levels 80% of Australian domestic t
Slide 19: Outlook Statement
For personal use only Outlook Statement ‹#›
Slide 20: FY21 Outlook
20 FY21 OUTLOOK For personal use only • Serko is well positioned for growth when trading conditions improve and the business travel industry starts to recover. • Timing, however, remains uncertain. As a result, we are unable to forecast our likely operating revenue for the 2021 financial year with a
Slide 21: Appendices
For personal use only Appendices: Company Snapshot Key Risks Foreign Selling Restrictions ‹#›
Slide 22: About Serko
22 ABOUT SERKO FOUNDED IN 2007 For personal use only Market Leader Innovative Solutions NZX/ASX Listed Serko is the leading supplier of corporate Serko is a technology company focused on Serko listed on the New Zealand stock travel technology solutions in Australasia innovative solutions that addres
Slide 23: Serko Products
23 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 reconciliatio
Slide 24: Serko Strategy
For personal use only SERKO STRATEGY
Slide 25: Key Risks
25 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 g
Slide 26: Key Risks
26 KEY RISKS 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 result in sign
Slide 27: Foreign Selling Restrictions
27 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
Slide 28: Foreign Selling Restrictions
28 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
Slide 29: Foreign Selling Restrictions
29 FOREIGN SELLING RESTRICTIONS For personal use only United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Servic
Slide 30: Thank you
For personal use only Thank you 30