Slide 1: Appen Limited FY2014 Results Presentation
For personal use only Appen Limited Global Leader in Language Technology Solutions FY2014 Results Presenta2on
Slide 2: Agenda
Agenda For personal use only Topic: Speaker: Introduc2on to Appen Chris Vonwiller (Chairman) Financial Performance Mark Byrne (CFO) Growth and Outlook Lisa Braden-‐Harder (Managing Director) People and Leadership Chris Vonwiller 2
Slide 3: Introduction to Appen
Introduc;on to Appen For personal use only Company snapshot Business snapshot Global leader in language technology solu;ons Appen has two business divisions: • Established in 1993 and provides language • Content Relevance: technology data and services to leading technology • provides data annota2on
Slide 4: Financial Highlights
Financial Highlights For personal use only FY2014 Pro-‐Forma Financial Highlights Appen has exceeded FY14 prospectus forecasts • Revenue A$51.0m up 4.0% vs prospectus forecast of A$49.1m ü • EBITDA A$6.7m up 15.2% vs prospectus forecast of A$5.8m ü • NPAT A$3.6m up 5.4% vs prospectus forecast of
Slide 5: Summary Income Statement
Summary Income Statement For personal use only Pro-‐forma vs Prospectus Commentary Pro forma Prospectus • Revenue increased by 4.0% driven by beger than Growth $ in millions actual forecast expected results from both divisions FY14 FY14 V$ V% Sales revenue 51.0 49.1 1.9 4.0% • Pro-‐Forma EBITDA in
Slide 6: Statutory vs Pro Forma Reconciliation
Statutory vs Pro Forma Reconcilia;on For personal use only Statutory vs Pro-‐forma Commentary • Statutory EBITDA ahead of prospectus by 52% Actual Prospectus* 2013 $ in millions • Stronger sales leading to higher profitability FY14 FY14 % FY13 % • Excise net tax refund of $1.2m Statutory EBITDA 4.8
Slide 7: Divisional Earnings
Divisional Earnings For personal use only Divisional Earnings Commentary Speech & • Strong last quarter revenues from both businesses Sales Performance Data Content Company • Speech and Data Collec2on con2nued to win ($ in millions) Relevance Revenue Collection new work and execute quickly and efficie
Slide 8: Business Mix
Business Mix For personal use only Revenues Business Mix • Revenues up approximately 53% from FY12 to FY14 Revenue: FY12-FY15 • Large YOY growth from FY12 to FY13 due to strong 75 demand from one of Appen’s customers: 60.5 • two new product launches within FY13 60 53.6 51.1 Revenue (A$m) • Content R
Slide 9: Balance Sheet
Balance Sheet For personal use only Balance Sheet Commentary $ in millions FY14 FY13 % • Total assets increase due to higher cash balances Cash 8.6 5.8 50% Trade and other current assets 10.3 11.9 -13% • Intangibles impacted by FX rates Total current assets 18.9 17.7 7% Intangibles 10.9 10.0 8% • Bo
Slide 10: Cash Flow
Cash Flow For personal use only Cash Flow Commentary Cash Position ($ in millions) FY14 • Year end cash has been driven by the 2ming of Cash per Prospectus forecast 2.4 receipts and payments Lower supplier payments 0.5 Delayed tax payment 0.5 • We expect some reversal of these items over the Custome
Slide 11: Foreign Exchange
Foreign Exchange For personal use only Foreign Exchange impact Commentary The assump2ons behind this are: • All changes are off the numbers reflected in the Weaker AUD Neutral Stronger AUD prospectus at an FX rate of $0.90 Movement • That the Speech and Data Collec2on division is fully 5% 10% 0% -10%
Slide 12: Clients
Clients For personal use only Overview • For client confiden2ality reasons Appen is not able to disclose the full list of its clients • However Appen has a diverse client base principally with blue chip large technology clients Revenue Concentra;on Revenue Concentra2on • The exis2ng strong base of la
Slide 13: Growth and Outlook
Growth and Outlook For personal use only Appen reaffirms FY2015 prospectus forecast Appen reaffirms its FY2015 prospectus forecasts – Revenue $53.6m and EBITDA $6.8m (pro-‐forma) • Current opera2ng results with revenue and business won thus far in FY2015 is on track with forecast • Pipeline and order b
Slide 14: Strategic Growth Opportunities
Growth and Outlook For personal use only Strategic Growth Opportuni;es Industry drivers are posi;ve across all segments • Search, social media, e-‐commerce, government, automo2ve New client acquisi;on in Content Relevance • Master Service Agreements in place with 7 Fortune 500 companies and ini2al
Slide 15: People and Leadership
People and Leadership For personal use only People and Leadership Appen has a stable and long serving board and senior management team Managing Director transi;on • Current Managing Director and founder of Butler Hill, Lisa Braden-‐Harder, will transi2on from her execu2ve role to a non-‐execu2ve r
Slide 16: People and Leadership
People and Leadership For personal use only People and Leadership A Long Term Incen;ve Plan has been introduced covering senior management • We have con2nued to strengthen our global workforce to op2mise our capability-‐base and our cost structure • LTIP covers a three-‐year period and is based up
Slide 17: Important Notice and Disclaimer
Important No;ce and Disclaimer For personal use only This presenta;on (“Presenta;on”) has been prepared by Appen Limited ACN 138 878 298 (“Appen”) in connec;on with the release of its financial results for the 12 month period ending on 31 December 2014. The material in this Presenta;on provides gener
Slide 18: Investor Relations contact details
For personal use only Investor Rela;ons contact details Mark Byrne (CFO and Joint Company Secretary) mbyrne@appen.com +612 9468 6322 Leanne Ralph (Company Secretary) leanne.ralph@boardworx.net.au
Slide 19: Appendix
For personal use only Appendix
Slide 20: Business Snapshot
Business Snapshot Speech & Data Collec2on Content Relevance For personal use only Revenue Contribu2on % (2015 Est.) 43% 57% Descrip2on Data and services for development and tuning of Data and services to ensure that global search engines systems for speech recogni2on, speech synthesis and and e-‐co
Slide 21: Industry Drivers
Industry Drivers For personal use only 1 Non-‐English speaking countries now account 2 Internet content however is s2ll heavily for the majority of internet usage biased towards English Internet usage – by region Internet content – by language Oceania 1% Africa 10% Others, 19% Chinese 5% Europe 19%
Slide 22: Industry Drivers (continued)
Industry Drivers (con;nued…) Increased consumer expecta2ons in the Increased consumer expecta2ons in For personal use only 3 4 internet languages market internet search & naviga2on Forecast growth in the language services market Descrip;on 40 37.2 • Search & naviga2on systems provide rapid access to
Slide 23: Industry Drivers (continued)
Industry Drivers (con;nued…) For personal use only 5 E-‐commerce relies on search queries 6 Increase in Social Media Share of eBay commercial sellers and offline SMEs that export Social Media u;lisa;on 1,000 Developed economies 120 100 98 100 100 100 100 100 97 97 Unique monthly visits (m) 100 800 78
Slide 24: Example: Speech and Data Collection
Example: Speech and Data Collec;on For personal use only 24
Slide 25: Example: Content Relevance
Example: Content Relevance For personal use only 25