Slide 1: Appen Limited Annual General Meeting
For personal use only Appen Limited Annual General Meeting 27th May 2016
Slide 2: Disclaimer
Disclaimer For personal use only The forward looking statements included in these materials involve subjective judgement and analysis and are subject to significant uncertainties, risks, contingencies, many of which are outside the control of, and are unknown to Appen Limited. In particular, they sp
Slide 3: CEO presentation
For personal use only CEO presentation
Slide 4: Company snapshot
Company snapshot For personal use only !82.7!! Appen (APX) is a global language technology company with !51.0!! operations in Australia, the US and The Philippines Strong growth in 2015 !13.8!! !4.8!! ~A$190M market capitalisation1 FY2014' FY2015' (A$m) Revenue' EBITDA' Customers include the world’s
Slide 5: For personal use only
Appen works with leading search and social media companies deliver relevant For personal use only Appen’s high quality data is content and news critical to automatic speech recognition, used by the world’s leading technology companies and government security agencies Appen helps the world’s leading
Slide 6: Positioned for growth
Positioned for growth For personal use only Leading position in high growth language technology and machine learning markets underpinned by deep linguistic and crowd-sourcing capabilities Global customer base of the world’s leading technology companies, auto manufacturers and governments Scalable bu
Slide 7: Full year results (A$m)
Full year results (A$m) For personal use only Revenue up 62% Revenue! Earnings! EBITDA up 189% !82.7!! !13.8!! NPAT up 414% !51.0!! !8.3!! EBITDA! Pro forma EBITDA up 110% !4.8!! NPAT! Pro forma NPAT up 136% !1.6!! FY2014! FY2015! FY2014! FY2015! Company Confidential 7
Slide 8: New revenue growth
New revenue growth For personal use only !25,000!! !20,000!! !15,000!! ($#'000)# FY14! Customers won through successful !10,000!! FY15! pilots in FY2014 provided substantial !5,000!! revenue in FY2015 !"!!!! eCommerce! Search!Customer! Social!Media! Customer! Customer! Revenue in FY2015 from custome
Slide 9: Improved customer diversification
Improved customer diversification For personal use only FY2014 FY2015 Others 14% 28% Improved revenue distribution Others 2% 23% 2% across top ten customers 3% 3% No single customer > 28% 1% 2% 48% 3% 2% 2% 4% 3% 5% 9% 10% 9% 27% Percentage of revenue from top ten customers in FY2014 and FY2015 Comp
Slide 10: Repeat revenue
Repeat revenue For personal use only &82.7&! Appen maintains long and growing &60.6&! relationships with customers that &51.0&! drive repeat revenue year-on-year &33.3&! 29.5! FY2011& FY2012& FY2013& FY2014& FY2015& Language Resources customers originating in year Content Relevance customers origina
Slide 11: Strong growth from both divisions (A$m)
Strong growth from both divisions (A$m) For personal use only Language!Resources! Content!Relevance! Language Resources revenue up 42% !50.7!! Improvement on high margins Content Relevance !31.9!! !28.4!! Revenue! revenue up 78% !22.5!! Opera:ng!Profit! Operational scalability from !13.0!! !8.1!! !7.
Slide 12: Currency impact (A$m)
Currency impact (A$m) For personal use only Revenue! EBITDA! !13.7!! !82.7!! !4.9!! !13.8!! !18.0!! Results have benefited from !51.0!! !4.1!! the falling AUD !4.8!! FY2014! Currency! Currency! FY2015! FY2014! Currency! Currency! FY2015! Neutral! Impact! Neutral! Impact! Growth! Growth! Company Conf
Slide 13: People and culture
People and culture For personal use only Employee satisfaction high at 90% Turnover low at 13% 230 employees, up from 150 in FY2014 Over 350,000 crowd-sourced on-demand independent contractors worldwide 180 languages and dialects Rated in Flexjobs Top 100 companies for remote work Active in-house Co
Slide 14: Full year results (A$m)
Full year results (A$m) % For personal use only change FY2015 FY2014 % change constant Revenue up 62% on FY2014 currency Language Resources up 42% Statutory Results Language Content Relevance up 78% 31.9 22.5 42% Resources Content 50.7 28.4 78% EBITDA up 189% (Pro forma up 110%*) Relevance Total Rev
Slide 15: Balance Sheet (A$m)
Balance Sheet (A$m) FY2015 FY2014 For personal use only Strong balance sheet. No debt. Current Assets 30.3 18.9 Current assets up due to increase in cash Non-Current Assets 11.7 11.2 reserves and receivables related to increase Total Assets 42.0 30.1 in revenue volumes Current Liabilities 11.4 9.3 I
Slide 16: Cash Flow (A$m)
Cash Flow (A$m) For personal use only FY2015 FY2014 Cash balance increased by $4.1m Receipts 72.5 58.8 Cash flow from operations impacted by: Payments and other (67.6) (49.6) Working capital investment relating to increased Cash flow from operations before 4.9 9.2 sales volume interest and tax IPO p
Slide 17: Outlook - Pipeline
Outlook - Pipeline For personal use only FY2016 orders in hand over $75m at end April 16 Pipeline continues to build: Successful conversion of a key pilot to production Large pilot secured in a major technology company Re-signed contracts with major social media and security clients Full year outloo
Slide 18: Thank you
For personal use only Thank you Mark Brayan, CEO, mbrayan@appen.com Kevin Levine, CFO, klevine@appen.com Leanne Ralph, Company Secretary, leanne.ralph@boardworx.net.au Company Confidential