Camplify Holdings Ltd. · ASX:CHL
Camplify — FY2023 Earnings Presentation
74 slides from Camplify's earnings presentation, Aug 23, 2023
Slide 1: FY23 Annual Results
FY23 Annual Results Official Presentation
Slide 2: Disclaimer & important notices
Disclaimer & important notices The information contained in this presentation or subsequently provided, orally or in writing, to any recipient of this presentation, or any other information discussed at the presentation by or on behalf of Camplify Holdings Limited ACN #647 333 962 (Camplify or the C
Slide 3: Forward looking statements
Forward looking statements The Confidential Information may contain forward looking statements which are statements that may be identified by words such as “may”, “will”, “would”, “could”, “expects”, “intends”, “anticipates”, and other similar words that involve risks and uncertainties. These statem
Slide 4: Acknowledgment of Country
FY23 Acknowledgment of Country Camplify Holdings Limited pay our respects to the traditional owners, their elders past and present and value their care and custodianship of these lands. Camplify Holdings Limited is a proud Newcastle originated company built on the lands of the Awabakal & Worimi peop
Slide 5: Agenda
Agenda 01 Introduction to CHL 02 Performance by numbers 03 Key financial information 04 Company and industry overview 05 Marketing overview 06 Innovation and development 07 Concierge and Temporary Accommodation Program 08 Acquisition update 09 MyWay Insurance 10 Future outlook 11 Summary
Slide 6: Today's presenters
Today’s presenters Justin Hales Andrea MacDougall CHL Founder & CHL Chief Financial Officer Chief Executive Officer • Founder of Camplify. • Experienced CFO for multinational organisations across growth technology, • Previously Head of Customers at ASX- listed education, hospitality, manufacturing a
Slide 7: Introduction to CHL
FY23 Introduction to CHL Section 1
Slide 8: MyWay
Myway <g se ES @ campilify fee
Slide 9: About us
About us Adventure travel reimagined. Our mission To cultivate adventure travel and entrepreneurship by making the outdoors accessible to all through innovative and scalable tech solutions. Our vision A world where outdoor adventures and RV travel are accessible to all.
Slide 10: Countries of operation
Australia New Zealand Germany Austria Spain The Netherlands The UK 10
Slide 11: Performance by numbers
FY23 Performance by numbers Section 2
Slide 12: Marketplace highlights
Marketplace $146.4m $38.2m highlights Total transaction value Total revenue +172.8% (pcp FY22) +133.7%(pcp FY22) ● Fully audited results. Period FY23 GTV growth of 172.8% pcp to over $146m ● Revenue growth of 133.7% pcp to over $38m ● Increasing average booking value by over 39% pcp 81,933 $1,733 ●
Slide 13: Marketplace highlights
Marketplace highlights 26.1% 24% ● Retained hirers (repeat customers) now at 24% Take rate Retained hirers1 Decrease from 30.5% pcp FY22 down from 25% at FY22 pcp due to PaulCamper having a lower average than Camplify ○ AU 28%, UK 8%, NZ 9%, ES 2%, DE 25%, AT 12%, NL 12% 28,399 494,068 ● Total RVs o
Slide 14: Continued strong global momentum for Camplify RV holidays
Continued strong ● Hirers continue to enjoy longer trips leading to continued strong YOY growth in average booking length. global momentum for ● Average spend per day is also increasing, in the GTV per booked day in FY23 compared to the previous year. Camplify RV holidays ● Average booking value inc
Slide 15: Future bookings
Future bookings ● Future bookings are bookings that have been booked and paid for via the Camplify platform. FY23 FY22 (PCP) ● These take place in the future generally within the next 12 months. $28.6m $14.8m ● GTV and revenue is only reported once the Total future bookings GTV Total future bookings
Slide 16: Market performance
Market performance The United Market Australia New Zealand Spain Kingdom Camplify markets all performed well over the last 12 months in organic growth with strong demand from consumers, and GTV support from marketplace customers Growth 70% 1253% 17% 175% Fleet growth continued to perform well and bu
Slide 17: Growing hirer & owner community
Number of Cumulative Hirers Number of Cumulative RVs Growing hirer & owner +168% CAGR +118% CAGR (FY17 to FY23) (FY17 to FY23) community ● Strong platform growth has been achieved at strong CAC performance due to a combination of network effects, referrals, industry tailwinds and inbound marketing i
Slide 18: Customer acquisition costs
Hirer acquisition cost Owner acquisition cost Customer Camplify $11.68 $135.43 acquisition costs PaulCamper SEO: Strong ranking and traffic from target keywords Direct: Traffic growth increasing from greater brand $28.71 $21.36 awareness Global Traffic Sources Organic Social: 124,845k combined Faceb
Slide 19: Total GTV by quarter
Camplify Markets Total GTV Quarterly Seasonal variation Total GTV by quarter Camplify and PaulCamper are very seasonal businesses, with operations in GTV the southern and northern hemispheres. ($) Southern hemisphere season is typically September through to Easter, while northern hemisphere season i
Slide 20: Seasonal variation by market
Seasonal variation EU NZ Seasonal variation by market Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CHL has a highly seasonal business. Bookings are driven by seasonal UK AU variation in travel in different markets. Weather plays an important role in outdoor travel lifestyles. Markets such as Europe and New Zealand have
Slide 21: Total vs. registered fleet size
Fleet Camplify and PaulCamper still have less than 1% of the total addressable market in all key markets we operate in. Total vs. Australia New Zealand The Netherlands registered 1.3% 2.6% 0.2% fleet size Germany Spain The UK Austria % of total 0.5% registered RVs on market 0.7% 0.5% 0.2% % of RVs r
Slide 22: Key financial information
FY23 Key financial information Section 3
Slide 23: Financial highlights
Financial highlights In three years, Camplify has been able to grow its GTV by over 3X whilst improving its underlying take rate and gross profit margin. Global Transaction Value Revenue and Take Rate Gross Profit and Margin Total: $38.2m Take Rate: 26.12% +111% CAGR +112% CAGR +123% CAGR 68% (FY21
Slide 24: Key operating metrics
Financial Metrics FY21 FY22 FY23 Key operating metrics High GTV growth continues while Gross transaction value (GTV) ($m) 32.9 53.6 146.4 revenue retention increased. GTV hire ($m) 30.4 46.9 136.4 Growth in GTV for FY23 reflects Premium memberships ($m) 1.4 1.6 3.5 increases in: ● RV Fleet (186% vs
Slide 25: Income statement summary and commentary
$ Millions FY21 FY22 FY23 Income statement Summary Revenue 8.5 16.4 38.2 Cost of sales (3.3) (8.8) (12.4) Gross profit 5.2 7.6 25.8 Commentary Gross profit margin 62% 46% 68% Growth in Revenue (134% vs PCP) was driven by: Employee benefits expense (4.0) (7.3) (12.4) ● Hirer Revenue (194% vs PCP) ● R
Slide 26: Income statement commentary
$ Millions FY21 FY22 FY23 Income statement Revenue 7.8 13.7 36.5 Hire revenue 6.0 9.6 28.2 Premium membership fees 1.4 1.6 3.5 Other 0.4 2.5 4.8 Cost of sales (2.6) (6.3) (10.9) Commentary Hire COGS (1.0) (1.7) (3.4) Growth in Revenue (134% vs PCP) was driven by: Premium membership COGS (1.5) (1.4)
Slide 27: Cash flow statement and commentary
Cash flow statement Commentary $ Millions FY20 FY21 FY22 FY23 ● Change in working capital reflects increased EBITDA (excl acq costs) (2.3) (2.1) (6.7) 0.3 payments to suppliers and deposits held from Change in working capital hirers. (1.9) (4.5) (1.6) (2.5) (excl acq costs) ● Government contract for
Slide 28: Balance sheet and commentary
$ Millions FY21 FY22 FY23 Balance sheet Assets Current assets Cash and cash equivalents 21.1 15.0 26.6 Trade and other receivables 7.9 10.9 23.0 Inventories 0.2 0.4 0.5 Commentary Other assets 0.5 0.5 1.1 Total current assets 29.6 26.7 51.2 ● Capital light model. Non-current assets Property, plant a
Slide 29: Company & Industry Overview
FY23 Company & Industry Overview Section 4
Slide 30: Strategy
Strategy Become the leading RV rental platform in market Grow current markets Fleet focus Enhance our platform development Help more hirers enjoy van life Build a beautiful efficient business 30
Slide 31: P2P digital marketplace
P2P digital marketplace ● Provide RV for rent ● Pay for their rental ● Set their own pricing ● Pay for their rental protection ● Set their rental type ● Purchase additional goods and services CHL is the parent company of Camplify and PaulCamper and is one of the leading P2P digital marketplaces in A
Slide 32: Revenue recognition
Revenue recognition Camplify PaulCamper MyWay At Camplify, the revenue is At PaulCamper, the revenue is Revenue for MyWay will be recognised when the booking recognised when the booking is recognised at the time the risk takes place. This means some made. This is why PaulCamper occurs on the product
Slide 33: Camplify - Owners & Hirers
Revenue model Camplify - Owners & Hirers RV Hirers RV Owners RV hirers ● Commission ● In AU/NZ Mandatory Accident Excess Reduction ● Optional AER upgrade RV owners Revenue ● Depending on the type of member: (29.9% of GTV) ○ Commission ○ Insurance ○ Premium Membership (PM) Revenue is recognised based
Slide 34: PaulCamper - Owners & Hirers
Revenue model PaulCamper - Owners & Hirers RV Hirers RV Owners RV hirers ● Commission ● Optional travel insurance RV Owners ● Depending on the type of member: ○ Commission Revenue ○ Day rate for casual insurance (18.2% of GTV) Revenue is recognised based on date booking is accepted by the owner for
Slide 35: Competitive Landscape
Competitive Landscape 3 5 Traditional RV Rental Companies Other RV P2P Marketplaces In Australia & New Zealand, the primary competitors are: There are other RV P2P marketplaces that compete with Camplify and PaulCamper. CHL considers the main competitors to include, but not limited to: • Tourism Hol
Slide 36: Why RV owners and hirers choose our brands
RV Owners Hirers Why RV Monetise underutilised assets Rent assets short term, on-demand Owners earn approximately $5,000 per See immediate availability of all RVs vehicle with many owners earning over available from only $60 per day owners and $15,000 per annum for their RV SMEs can offer a fleet Tr
Slide 37: Meet our RV owners
Camplify Case studies Meet our RV owners Ben Ruscoe, Australia Bruce Little, New Zealand Sean Norris, The UK ● At the age of 23, Ben from Perth, Western Australia, ● Hawke’s Bay retiree, Bruce Little (66), turned his ● Sean (50), launched his first campervan on listed his first campervan on Camplify
Slide 38: Meet our RV owners
PaulCamper Case studies Meet our RV owners Harry, Germany Jannie, The Netherlands Andreas, Germany ● Harry has been a passionate camper for over 20 ● Jannie has converted 5 nostalgic old fire engines. ● Andreas has been an owner through PaulCamper years. After long-term self-employment, Harry heard
Slide 39: Australia industry information
Industry information Australia ● As at December 2022, there were over 792,713 792,000 RV registrations in Australia. 15.1 million trips in 66,291 ● A substantial number of available RV assets 2022 Camper vans that Camplify can potentially capture and make available for rent. ● 51% of owners sell the
Slide 40: Travel trends EU
Travel trends European preferred types of leisure in the next six months Travel trends EU 17.9% Sun & 13.5% Nature & 13.9% City break 12.4% Coast beach outdoors & sea High travel prices and personal finances are consolidated as the primary travel concerns for Europeans, with respective increases of
Slide 41: Travel trends EU
Travel trends Travel trends EU When will Europeans travel next? 77% Of European travellers plan to take a trip during June - September 2023 41 Source: European Travel Commission TRAVEL HORIZON: JUNE - NOVEMBER 23
Slide 42: Travel trends AU
Travel trends 3 in 4 respondents have plans to go caravanning or camping in Travel trends AU the next 6 months, indicating solid demand from consumers. Due to current fuel prices and cost of living expenses Length of next caravan and camping trip Would go Would travel caravan & shorter camping durin
Slide 43: Travel trends NZ
Travel trends Travel trends NZ 83% 71% Say NZ is a Is willing to spend at AU preferred holiday destination least 1,500AUD on their trip 86% 59% Say NZ is a Is willing to spend at DE preferred holiday destination least 2,000EUR on their trip 78% 72% Say NZ is a Is willing to spend at UK preferred hol
Slide 44: Marketing overview
FY23 Marketing overview Section 5
Slide 45: Marketing growth drivers
Marketing growth drivers Integrated full funnel marketing approach to efficiently grow both sides of the marketplace through owned, earned and paid channels. Always on marketing approach with specific campaigns to build the peak seasons in each market. Owner Acquisition Nurturing owner acquisition f
Slide 46: Brand partnerships
Brand partnerships Part of CHL’s global marketing strategy is finding cost-effective ways to reach target audiences through brand partnerships and collaborations.
Slide 47: Continued strong earned media presence
Media presence Continued strong earned media 47
Slide 48: Innovation & development
FY23 Innovation & development Section 6
Slide 49: CRM integration and internal systems improvements
Innovation & development FY23 CRM integration Internal systems Work is well underway for a global CRM improvements product to bring together all brands Following the acquisitions of under the CHL umbrella. PaulCamper and MyWay, CHL is Camplify will pilot the new CRM before undergoing internal system
Slide 50: New in FY23
New in FY23 Claim processing Onboarding courses In Australia, post hire for owners checklists completed with In H2FY23 we released new damages have been set up onboarding courses for owners in to automatically generate Spain for Camplify and Germany, an incident report form with The Netherlands and
Slide 51: New in FY23
New in FY23 Global verifications Internal efficiencies Inline, real time verifications of A focus on automating and drivers in Australia. Ensuring streamlining internal processes compliance without has allowed the growth of the compromising the user business not to require experience. significant gr
Slide 52: New for FY24
New for FY24 CHL platform To ensure a successful integration of the PaulCamper acquisition, focus on one integrated CHL platform for Camplify and PaulCamper will be a priority. New products & initiatives Premium Membership and AER expansion With the successful Premium Membership and AER for FY24 off
Slide 53: Concierge and Temporary Accommodation Program (TAP)
FY23 Concierge and Temporary Accommodation Program (TAP) Section 7
Slide 54: TAP and concierge
TAP and concierge How does it work What regions Who do we How do we help The temporary accommodation or are we in work with We are assisting the community by concierge program is designed to being able to provide affordable Whilst we have been In Australia; fill gaps for people needing urgent - Insu
Slide 55: One program, 3 different offerings
Focus on Northern Rivers, NSW One program 3 different offerings The NSW Government requested Dedicated Sites At Home Partner Camplify provide a dedicated support Rental person to provide on the ground Dedicated sites were set At home sites are vans Working with maintenance and administrative up in P
Slide 56: Acquisition update
FY23 Acquisition update Section 8
Slide 57: A truly global player
Acquisition update A truly global player The Mighway & SHAREaCAMPER acquisition leveraged Camplify’s position in the ANZ market. Announcing the PaulCamper acquisition in H1FY23 continued our key strategy objective on our journey to becoming the leading RV rental platform in the world. Mighway & Paul
Slide 58: Post-acquisition update
Post-acquisition update Organisational integration All teams are fully All key communication & Global CHL brand is Completed with the focus integrated into the global collaboration systems established to unite the on delivering global shared CHL structure adhering to and procedures are fully teams i
Slide 59: MyWay Insurance
FY23 MyWay Insurance Section 9
Slide 60: Wherever you are
i ke S O > > O ® fe) S ® S Wherever you are,
Slide 61: MyWay Insurance allows CHL to establish its own insurtech
MyWay Insurance allows CHL to establish its own globally operating insurtech. 61
Slide 62: Why an MGA?
Why an MGA? Definition: A Managing General Agent (MGA) is an insurance agent equipped with underwriting authority, acting on the behalf of one or many insurers (risk carriers). Upsides: ● Increase insurance revenues (commission, performance bonus on surplus) without bearing carrier risk ● Strengthen
Slide 63: Purpose
Purpose The vision for MyWay is to become CHL’s global vehicle for insurance products and services. Although the predominant purpose is to enhance access and operations of insurance solutions related to CHL’s global rental businesses, MyWay’s scope is not limited to this. In the long run MyWay is ex
Slide 64: MyWay creates shareholder value through
MyWay creates shareholder value through Customer satisfaction Top-line growth Bottom-line efficiency Provide insurance solutions and Establish insurance-related Create synergies from concentrating services, so that our customers can revenues as constant and growing insurance expertise and processes
Slide 65: Previous 9 months
Roadmap Previous 9 months Commitment to MyWay MyWay budget FY24 Focus on Spain CHL commits to launching MyWay’s activities are explicitly The outdated insurance product in MyWay as the group’s own planned in CHL’s 2024 budget Spain is replaced by a more insurance vehicle competitive and efficient so
Slide 66: Highlights next 12 months
Roadmap Highlights next 12 months Focus UK Insurance software suite Travel insurance A new motor insurance solution Insurance software is up and A travel insurance product is is implemented in The UK to running in selected countries launched in every CHL country support rental business until the beg
Slide 67: Future outlook
FY23 Future outlook Section 10
Slide 68: Outlook & priorities
Future outlook Outlook & priorities FY23 proved to be a very fruitful year for CHL, with continued growth of the company in all markets and the announcement of the PaulCamper acquisition. CHL delivered on its strategic objectives for FY23 and experienced 3 consecutive quarters of net cash flow posit
Slide 69: Summary & appendix
FY23 Summary & appendix Section 11
Slide 70: Key takeaways
Summary & appendix Key takeaways 01 02 Creating a truly global marketplace Consistent high growth and margins Being a leading operator in our key markets of Australia, New Zealand in GTV, revenue, booking value and volumes, with plans to increase and Germany and increasing tourism across all 7 marke
Slide 71: Key risks
Key risks Platform risks As the Company operates a two-sided platform, the Company’s future growth and profitability is dependent on that platform being vibrant and active. The Company’s business relies on both Hirers utilising the platform and on Owners listing RV’s on the platform. The growth of t
Slide 72: Key risks (cont'd)
Key risks Competition The Company recognises the potential risk that existing competitors or new entrants to the market may increase the competitive landscape and have an adverse impact on the financial performance of the Company which in turn, would erode the Company’s revenue and market share. Exi
Slide 73: Key risks (cont'd)
Key risks Compliance with laws The Company operates in a sector where the laws and regulations around its operations are evolving. There is a risk that new laws or regulations and regulations generally may be enacted, or existing laws and regulations may be amended in such a way that impose obligati
Slide 74: Thank you
2023 Thank you