Microlise Group Plc · LSE:SAAS
Microlise — 18 months to Dec 202 Earnings Presentation
21 slides from Microlise's earnings presentation, 2022
Slide 1: Investor Presentation: Annual Results
INVESTOR PRESENTATION: ANNUAL RESULTS Covering period of: gee aa July 2020- Bei evel Py, A é >. ASA x a ‘ iy on PO ” ve ya v Nadeem Raza ae Chief Executive Offical % Bill Wynn _ 5 Chief Financial Officer PUM SURE microlise
Slide 2: Management team: CEO and CFO
Joined Microlise in 1987 Joined Microlise in 2007 Led management buyout in 2008, Experienced CFO with over 30 years and named in FT Top 100 BAME of board level experience in private leaders in 2018. Board member of and PE backed and global companies. Trakm8 and Deputy Lieutenant for Two thirds of th
Slide 3: A leading provider of transport management solutions to enterprise customers
A leading provider of transport management solutions to enterprise customers • Solving very complex needs with proprietary software and hardware solutions • Automating critical processes and providing real time data • Dominant market share of operators of large HGV fleets in the UK (58% > 500 vehicl
Slide 4: Enabling global enterprises to run highly complex logistics supply chains
Enabling global enterprises to run highly complex logistics supply chains Vehicle tracking and Suite of compliance Safety module with Reduces planning time Real-time visibility of Range of hardware asset utilisation software solutions Incident Data Recorder fleet performance vs options for drivers A
Slide 5: Logistics fleet operators improve across a range of KPIs
Logistics fleet operators improve across a range of KPIs including environmental emissions, operating efficiency and safety standards
Slide 6: International Markets
INTERNATIONAL MARKETS Nottingham, UK - 430+ staff at HO - 500,000+ registered HGVs Melbourne, Australia - Team of six - 640,000+ rigid & articulated trucks Marseille, France - Team of eleven - Similar market size to the UK Pune, India - 160+ staff, primarily in development & support. microlise
Slide 7: Highlights
HIGHLIGHTS aS 5 65+ >]5 New Customers. Major contract renewals including JCB i S Launch Trailer Range of BLE Asset Brake Performance sensors launched Monitoring solution fee 1S Successful completion of Planning and optimization IPO, raising £18.6m to drive module launched growth plans nonoaa 10% Inc
Slide 8: Driver shortage, supply chain and chip shortages, strong demand
Driver shortage – slowly subsiding, but has caused major problems for some customers with rapid increase in driver wages. Supply chain and chip shortages – Suppliers are indicating that we are at the worst point in Q2, with availability getting better in Q3 onwards and reaching normal pre-pandemic l
Slide 9: Financial Update
FINANCIAL UPDATE
Slide 10: Growing existing customer revenue through upselling new modules
• We grow existing customer revenue through upselling new modules • In the period existing customers grew 64% to £52.6m and in CY21 11% to £35.6m • Existing customers equated to 97% of total recurring revenues both in the period and CY21 • Existing customers from FY16 grew in the period 27% to £41.9
Slide 11: ARR and revenue growth by type
• ARR Grew by £3.2m to £38.9m (9%) • Recurring Software revenue grew by £3.1m to £36.7m (9%) • Hardware revenue grew by £4.2m to £17.0m (33%) • Services revenue grew by £1.3m to £6.7m (25%)
Slide 12: EBITDA growth from margin enhancement projects
• Growth in EBITDA from multiple margin enhancement projects. • Projects are continuing to enhance margins further • Improvements made even with backdrop of premium prices on hardware due to chip supply shortages
Slide 13: Revenue, adjusted EBITDA and PBT
• Revenue was £88.2m in the period (CY21: £60.3m & CY20: £51.6m) • Adjusted EBITDA was £11.3m in the period (CY21: £7.8m & CY20: £6.3m) • IPO costs were £3.4m, providing an adjusted PBT of £3.4m in the period (CY21: £2.6m & CY20: £1.3m) • Tax provision includes £1.9m of deferred tax (mainly due to f
Slide 14: Balance sheet: payables and merger reserve
• Trade & other payables both current and non-current is mainly deferred income and is therefore non-cash • Merger reserve balance of £55.2m has been moved into retained earnings and is now distributable
Slide 15: Cash balance and committed RCF
• In addition to £13.2m cash balance, we have £20m committed RCF, providing £33.2m of cash availability • IPO Costs were £3.4m • The reduction in net cash generated from operations from £10.7m to £9.8m (CY20: £12.1m to £6.3m) is mainly due to the IPO costs and one off deferred taxation provision
Slide 16: Market Positioning and Strategy
MARKET POSITIONING AND STRATEGY
Slide 17: Confident in our end-to-end offering and benefits to customers
We remain confident in our end-to-end offering and the significant benefits we can deliver to our customers We have not seen any changes or consolidation that impacts our unique place in the competitive landscape. We believe we have the broadest product portfolio in the market. In-house development
Slide 18: Growth strategy: upsell, new products, international, smaller fleets, M&A
Structural Growth: • Driven by ecommerce evolution and pressure from increasing environmental regulation Existing New Upsell: Customers Products • Significant market share of large HGV fleets • Majority of existing customers do not have full portfolio Structural New New Products: Upsell • Asset mana
Slide 19: Transport conference exhibitors, speakers, attendees
exhibitors speakers attendees dt i aR 5 bag fs aX , NetworkRail HH Microsoft Office of the kos wal SY Dive & Vehicle Traffic Commissioner Mercedes-Benz Agency
Slide 20: Outlook
• The Group will continue to face headwinds through 2022 resulting from recruitment challenges, the global microchip shortage and inflation. • Despite these issues, the Board is confident of meeting market expectations for the year to December 2022. • Demand remains strong across all regions. • Long
Slide 21: Disclaimer
For the purposes of this document, the presentation that follows (the "Presentation") shall mean and include the slides that follow, any oral briefing provided by Microlise Group plc (the "Company") in connection with these slides, any question and answer session that follows that oral presentation,
Microlise Group — 18 months to Dec 202 Earnings Presentation on 6ix