Wisetech Global Ltd. · ASX:WTC
Wisetech Global — Investor Day (May 2018)
79 slides from Wisetech Global's investor day presentation, May 4, 2018
Slide 1: WiseTech Global Investor Day briefing materials
ASX Announcement: 2018/19 4 May 2018 WiseTech Global Investor Day briefing materials For personal use only Presentation materials related to WiseTech Global briefings at the Technology, Product and Strategy Day held today are attached. ENDS About WiseTech Global WiseTech Global is a leading develope
Slide 2: Five Levers of Growth Strategy
For personal use only FIVE LEVERS OF GROWTH STRATEGY WiseTech Global – Strategy and Technology Founder & CEO, Richard White Product, Technology and Strategy Day – 4 May 2018
Slide 3: A leading provider of software to the logistics industry globally
A leading provider of software to the logistics industry globally For personal use only 130 countries(1) 7,000+ customers (2) 3+ million development hours over 15 years 44+ billion data transactions annually(3) >1,100 Employees(4) 1 integrated CargoWise One global system Countries with licensed user
Slide 4: Global logistics industry and the competitive environment
Global logistics industry and the competitive environment What’s ahead in 2018 and beyond For personal use only REGULATORY TECHNOLOGY COMMERCIAL COMPETITION PRESSURE Fragmentation IMPERATIVES Blurring of Exponential volume 1PL/2PL/3PL Increasing regulation Specialisation & complexity growth Prolifer
Slide 5: Industry and competitive environment - WTC
Industry and competitive environment - WTC What’s ahead in 2018 and beyond For personal use only 3PL industry in rapid evolution Governments E-commerce growth driver • Consolidation continues, for 3PL and 2PL • Constant ongoing change centred around • E-commerce volumes are simultaneously providers
Slide 6: Customers aligning on needs, clearer solution in sight
Industry and competitive environment Customers aligning on needs, clearer solution in sight For personal use only ? Needs of all logistics providers Solution in sight Real-time visibility Integration Control over margins Digitisation Automation Risk-free, cross-border execution Single source of trut
Slide 7: Operating system for global logistics
Operating system for global logistics For personal use only Integrated modules covering key logistics transactions… Freight Customs Warehousing Land Liner & Container E-commerce forwarding clearance transport agency station/yard BorderWise Geo Schedules WiseRates Booking Tracking Netting & complianc
Slide 8: WiseTech difference, transformation track record
For personal use only WiseTech difference, transformation track record 6
Slide 9: Transformation track record – Product platform
WiseTech difference, transformation track record – PRODUCT PLATFORM For personal use only Cannibalised AU business by building single source-code, global platform Expanding offshore requires bottom up global solution Launched integrated regional platform: AU, NZ, UK, US, SG (2004) Ultimately created
Slide 10: Transformation track record – Revenue
WiseTech difference, transformation track record – REVENUE For personal use only Create pure recurring revenue Early move to On-Demand licensing (2008) Transition existing OTL to On-Demand Launched transaction-based licensing – disciplined application (2014) Transition existing to pure Seat+ Transac
Slide 11: Transformation track record – Cost efficiency
WiseTech difference, transformation track record – COST EFFICIENCY For personal use only Build assets, not churn Inversion of product spend vs usual sales & marketing – prioritise asset development Eliminate costly Remove consulting: evolve to channel partner organisations bottlenecks to growth Cont
Slide 12: Transformation track record – Technology
WiseTech difference, transformation track record – TECHNOLOGY For personal use only Innovation lead Early deployment 2011 to full cloud – customers transition over 2 years Establish data centres worldwide + fast follower Built “High Volume Low Value” capability 2006, launched e-commerce 2013 Archite
Slide 13: Operating system for global logistics 2004
Operating system for global logistics 2004 For personal use only Integrated modules covering key logistics transactions… Freight Customs Container Track, trace clearance Warehousing forwarding station/yard & manage Integrated modules for enterprise wide… Accounting Document & invoicing manager Integ
Slide 14: Operating system for global logistics 2014
Operating system for global logistics 2014 For personal use only Integrated modules covering key logistics transactions… Freight Customs Warehousing Land Liner & forwarding clearance transport agency Container Geo Tracking station/yard compliance & events Integrated modules for enterprise wide… Cust
Slide 15: CargoWise One integrated global platform
Powerful high growth engine – CargoWise One integrated global platform Strong foundation for future technology, seamless rollout, scalable capacity, global solutions For personal use only scalable to any size of business global reach – 130 countries deeply integrated with real time visibility
Slide 16: Our five levers of growth
For personal use only Our five levers of growth 14
Slide 17: Focus into 2019 – each action expands and accelerates growth
Focus into 2019 – each action expands and accelerates our growth Innovation & expansion through acquisitions drive new users, greater usage & network effect For personal use only Action drives customer Customer drives action 15
Slide 18: Accelerating organic growth through innovation and acquisitions
Accelerating organic growth through innovation and acquisitions For personal use only innovation expansion Truly global solution Fast adoption Geographic expansion Increasing Global integrated CW1 Transaction Zsoft inbound 500+ enhancement growth Compu-Clearing queries annually Core Freight Increasi
Slide 19: Acquiring businesses for geographic expansion
Acquiring businesses for geographic expansion – solving buy or build? Small targeted acquisitions in key regions provide safer, faster, stronger entry to new markets For personal use only We buy into market positions that would take years to build, integrate swiftly, and drive value across platform
Slide 20: Adjacencies feed into our innovation pipeline
Adjacencies feed into our innovation pipeline to build ecosystems Targeting key plug-ins to our global development or multi-regional adjacencies that can scale For personal use only We are accelerating convergence of technologies by adding targeted acquisition of key adjacencies to our innovation pi
Slide 21: Acquiring businesses to accelerate organic growth
Acquiring businesses to accelerate organic growth Acquisitions focus on manufactured goods trade flows or technology adjacencies For personal use only Geographically we are following the G20 plus 20 assessed on manufactured goods trade flows Significant progress made with 23 countries acquired since
Slide 22: Accelerating organic growth – our M&A machine
Accelerating organic growth – our M&A machine For personal use only Internal M&A capacity • Origination • Due diligence (ex. local tax, in-country legals) • Completion execution • Integration • Embedding • Customer transition Source and buy assets that are not for sale PAVE Cultural fit is key UCE a
Slide 23: Acquisition integration process + value components
Acquisition ─ integration process + value components Stage 1 integration completed swiftly, we focus on long-term product capability and growing revenue For personal use only Foothold 12-24 months 3-12 months Adjacencies 3+ years 0-36 months Integrate target Develop product Grow revenue “Acculturati
Slide 24: China expansion: case study
Acquisitions accelerate organic growth China expansion: case study – key foundation within region For personal use only • Organic entry accelerated with Zsoft acquisition • Operations cover development, sales, support and content • Servicing global 3PLs in China and commencing CW1 sales locally • Ch
Slide 25: Innovation investment
Innovation investment Significant pipeline of longer-term innovations across existing verticals and new adjacencies For personal use only ~600 Work faster, harder, smarter product upgrades and Major development focus on: PAVE GLOW Universal enhancements • Productivity • Productivity • ‘Build once’ C
Slide 26: Cargo chain – building an ecosystem
Cargo chain – building an ecosystem For personal use only Rates WiseRates Schedules Cargoguide CargoSphere AIR SEA RAIL Needs of all logistics providers Booking Real time visibility Control over margins Netting & Faster multi-modal reconciliation movement Tracking & More efficient use of eve
Slide 27: Trade and border compliance ecosystem – pain points abound
Trade and border compliance ecosystem – pain points abound For personal use only AT BORDER IN COUNTRY Border clearance Accounting Customs entry Taxation Permits Languages Certificate of origin Localisations Needs of all logistics providers Control over margins Risk-free, cross- border execution
Slide 28: E-commerce volumes and speed demand light touch execution
E-commerce volumes and speed demand ‘light touch’ execution Border management + compliance risks are the largest pain-point of international logistics and e-commerce For personal use only What challenges do you face with your Retail e-commerce sales worldwide, 2016-2021 5 24.0% cross-border e-commer
Slide 29: E-commerce 2nd generation, High Volume Low Value
E-commerce 2nd generation, ‘High Volume Low Value’ Providing scalable, high volume integrated solution for 3PLs facing e-commerce juggernaut For personal use only International e-commerce solution designed for higher volume levels Country agnostic – founded on the global customs strategy Designed fo
Slide 30: Opportunity + 2019
28 For personal use only Opportunity + 2019
Slide 31: Opportunity
Opportunity Logistics market size: across 1PL, 2PL, 3PL = ~A$14trillion For personal use only Global 3PL E-commerce Government Ecosystems • Top 150 • 3PLs • Regulation Ecosystems, once • LP in each • Express • Digitisation built, drive long vertical and couriers • Integration term value that is each
Slide 32: Focus into 2019
Focus into 2019 Consistent and disciplined execution of our 5 levers of growth For personal use only Action drives customer 30 Customer drives action
Slide 33: Visit our investor centre for more information
Visit our investor centre for more information on WiseTech Global www.wisetechglobal.com/investors For personal use only Videos Presentations Other materials 31
Slide 34: Important notice and disclaimer
Important notice and disclaimer CONTENT OF PRESENTATION FOR INFORMATION PURPOSES ONLY Visit www.wisetechglobal.com/investors For personal use only FORWARD-LOOKING STATEMENTS PREPARATION OF INFORMATION This presentation may contain statements that are, or may are deemed to be, forward-looking All fin
Slide 35: WiseTech Global
GLOBAL WiseTech Ajuo esn jeuosied 105
Slide 36: Innovation and expansion of our global platform: product development
For personal use only INNOVATION AND EXPANSION OF OUR GLOBAL PLATFORM Product development: how we drive innovation Product, Technology and Strategy Day – 4 May 2018 0
Slide 37: Global innovation development teams
Global innovation development teams For personal use only • Universal access to CW1, PAVE, GLOW, Universal Customs Engine • Global development team over 500 people across 20 countries, leveraging local knowledge • Multi-language support General and administration 20% Customer support and other 20% P
Slide 38: Relentless engineering to remove constraints to scaling innovation
We achieve with relentless engineering to remove constraints to scaling innovation For personal use only • Culture supports bold ideas and innovation • “Tech creatives” achieve in a supportive environment of “freedom and responsibility” • High performance innovation cycles – we strive to solve compl
Slide 39: Product commercialisation and monetisation processes and timeline
Product commercialisation and monetisation processes and timeline High innovation to commercialisation ratio – product designed for CW1 platform + global customer base For personal use only Rich ideation Innovation cycle Rapid commercialisation Grow usage and revenue Industry expert teams solve acro
Slide 40: Innovation investment
Innovation investment Significant pipeline of longer-term innovations across existing verticals and new adjacencies For personal use only Work faster, harder, smarter ~600 product Major development focus on: upgrades and PAVE GLOW Universal enhancements • Productivity • Productivity • ‘Build once’ C
Slide 41: BorderWise
For personal use only BorderWise Tracking & events Rates & bookings Global accounting, netting and invoicing E-commerce Know your customer, denied party, Master Data 5
Slide 42: Why do our customers need BorderWise?
Innovation pipeline - Why do our customers need BorderWise? Increasing regulation and complexity across borders For personal use only • Classification governed by the WCO Harmonised System (HS) and then each Government extends the 6 digit HS • Duty and tax determination requires interpretation using
Slide 43: Innovation pipeline – BorderWise
Innovation pipeline – BorderWise Global data set + machine learning = powerful border compliance engine, market leading For personal use only WiseTech border compliance engine + Custom-built global data set + Adjacent acquisitions x 2 + WiseTech machine learning and natural language processing (NLP)
Slide 44: BorderWise
For personal use only BorderWise Tracking & events Rates & bookings Global accounting, netting and invoicing E-commerce Know your customer, denied party, Master Data 8
Slide 45: Innovation pipeline – Tracking & events
Innovation pipeline – Tracking & events Data availability, speed, accuracy and quality is essential for all parties involved For personal use only Customer challenges • Manual search of events, manual data entry, risk of error • Too much data to monitor • Loss of productivity • Possible delays and p
Slide 46: Innovation pipeline – Tracking & events global data set
Innovation pipeline – Tracking & events Global data set, powerful, unique global tracking engine For personal use only Powerful global tracking for containers and vessels + Custom-built global data set – ‘one source of truth’ + WTC proprietary advanced analytics and workflow automations + Embedded i
Slide 47: BorderWise
For personal use only BorderWise Tracking & events Rates & bookings Global accounting, netting and invoicing E-commerce Know your customer, denied party, Master Data 11
Slide 48: Innovation pipeline – Rates management
Innovation pipeline – Rates management Data availability, speed, accuracy and quality is essential for all parties involved For personal use only Customer Challenges • Ocean carrier contracts are highly complex and not standardized • Manual entry of contract and rate information both costly and erro
Slide 49: Rates management: global data set of real-time rates
Innovation pipeline – Rates management Global data set of real-time, accurate rates For personal use only Powerful global data set of carrier rates + Real-time access to rates within your operational system + Embedded in CargoWise One and will integrate with acquired rates engines What’s in the box
Slide 50: BorderWise
For personal use only BorderWise Tracking & events Rates & bookings Global accounting, netting and invoicing E-commerce Know your customer, denied party, Master Data 14
Slide 51: Third party logistics requires specialised accounting
Innovation pipeline – third party logistics requires specialised accounting Supply chain activities, fragmented data and domestic regulations add complexity For personal use only Challenges in 3PL accounting CargoWise One solves globally – 130 countries Day-to-day business Invoicing and invoicing co
Slide 52: 3PL requires specialised accounting
Innovation pipeline – 3PL requires specialised accounting Complex network of applications replaced with CargoWise One For personal use only Payables Receivables inter-agent invoicing • Cost estimation • Billing estimation • Invoice • Invoice accuracy accuracy • Invoice • Invoice approval presentatio
Slide 53: CargoWise One delivers netting in addition to accounting
Innovation pipeline – CargoWise One delivers netting in addition to accounting Netting reduces the number of payments and shortens the time taken for reconciliations For personal use only Without netting With netting 17
Slide 54: BorderWise
For personal use only BorderWise Tracking & events Rates & bookings Global accounting, netting and invoicing E-commerce Know your customer, denied party, Master Data 18
Slide 55: E-tail 2nd generation, High Volume Low Value
Innovation pipeline – e-tail 2nd generation, High Volume Low Value Scalable, high volume integrated solution for 3PLs facing e-commerce juggernaut For personal use only International e-commerce solution designed for higher volume levels Country agnostic – founded on the global customs strategy Desig
Slide 56: BorderWise
For personal use only BorderWise Tracking & events Rates & bookings Global accounting, netting and invoicing E-commerce Know your customer, denied party, Master Data 20
Slide 57: Geo compliance: the cost of shipping to a denied party
Innovation pipeline – Geo compliance: the cost of shipping to a denied party Increasing government scrutiny, increasing fines and penalties For personal use only “We are putting the world on notice: the games are US Export Administration Act 1979 over. Those who flout our economic sanctions and expo
Slide 58: Geo compliance: the denied party solution
Innovation pipeline – Geo compliance: the denied party solution CargoWise One – an integrated solution For personal use only Fully integrated screening of • organisations and contacts • vessels Denied Party Screening Results Stops document production for Screened Denied • shipments and consolidation
Slide 59: WiseTech Global
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Slide 60: Architecture / data centres / security / scalability
For personal use only INNOVATION AND EXPANSION OF OUR GLOBAL PLATFORM Architecture / data centres / security / scalability Brett Shearer, Chief Technology Officer Product, Technology and Strategy Day – 4 May 2018
Slide 61: Integrated global platform structured to be the operating system
Integrated global platform structured to be the ‘operating system’ For personal use only • CargoWise One is designed to be the ‘operating system’ with infinite scale • Investment in single-source code integrated global platform • Platform operates efficiently for small users to tens of thousands use
Slide 62: CargoWise One scalability
CargoWise One scalability Scales out for high performance and repeatable implementation For personal use only RDS server (remote desktop) A4 Paper Guide Line Process controllers SSL encryption and firewall A4 Paper Guide Line CargoWise One user SQL AlwaysOn cluster IIS8.5 web server 3
Slide 63: Global data centres located in UK, Asia Pacific and North America
Global data centres located in UK, Asia Pacific and North America For personal use only England, North America, Milton Keynes Chicago Europe, Middle East, Africa United States, Rest of World Australia, Sydney Asia, Australia, New Zealand 4
Slide 64: WiseCloud hosting benefits
WiseCloud hosting benefits For personal use only Benefits to customer • Faster go-live • One-stop-shop: provides all they need • Tuning/optimisation/monitoring provided as part of hosting • GDPR requirements managed • SOC accreditation for all data centres • No upfront capital expense – all operatio
Slide 65: Security
Security Security implemented at all layers to protect against all forms of attack For personal use only Software management Automated patching Single eHub/Universal* interface decreases surface area Data centre for attacks Whole cloud owned by WiseTech Independent audits Access • Vulnerability scan
Slide 66: Approach to technology
Approach to technology Technology choices are based on fitness for purpose – no exclusions due to vendor or platform For personal use only AI/NLP/ML Storage/data Platform/messaging technologies Languages Software defined networking • Kafka • Scala NoSQL • R • Blockchain/distributed ledgers • Mongo •
Slide 67: WiseTech Global
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Slide 68: Panel: Experience of origination, acquisition, integration
For personal use only ACCELERATING ORGANIC GROWTH THROUGH ACQUISITION Panel: Experience of origination, acquisition, integration Bysoft, CargoSphere, Microlistics, ABM Data Systems Product, Technology and Strategy Day – 4 May 2018
Slide 69: Panel guests
Panel guests For personal use only Edneia Moura Chebabi Stewart Bourke Mark Dawson Neil Barni Managing Director Managing Director Managing Director Managing Director bysoft Soluções Em ABM Data Systems Microlistics CargoSphere Sistemas (‘Bysoft’) Edneia founded Bysoft in Brazil in 1991, Stewart has
Slide 70: Bysoft overview
Overview For personal use only Founded in 1991, Bysoft is the largest provider of customs brokerage, government compliance and freight forwarding solutions to the logistics industry across Brazil Pioneers with 27 years’ experience Headquartered in São Paulo, Bysoft has a team of 50 industry an
Slide 71: Market opportunity
Market opportunity For personal use only Brazil is the 5th largest country in the world The foreign trade market in Brazil is made up of more than 43,000 importing companies and 25,000 exporters companies¹ There are about 5,500 freight forwarders and customs brokers in Brazil². Bysoft the la
Slide 72: ABM Data Systems
ABM Data Systems For personal use only • Founded 2006 in Dublin, Ireland • Vision – to create a single global customs platform • Headcount (2017) – 22 staff • Proven technology – currently supporting 80+ procedures in 8 countries © ABM Data Systems 2016
Slide 73: ABM Data Systems
ABM Data Systems For personal use only • Typical customer – any company with customs/compliance requirements in multiple jurisdictions • Acquired Dec 2017 – Very positive market and team reactions – Working with WiseTech Global since 2012, already integrated © ABM Data Systems 2016
Slide 74: Global reach
For personal use only Global reach In 2018, due to new partnerships and customer expansion around the globe, Microlistics has more global reach than ever before. Offices / Partners Client Sites 50 Employees
Slide 75: Our Best Fit Customer
For personal use only “Our Best Fit Customer” Any size, any vertical. In 2018 most Microlistics clients are Level 4 on the Gartner strata. The Microlistics Level 4 Sweet Spot Warehousing The strength of a single configurable platform enables the same business to handle many different verticals. Thir
Slide 76: Ocean Rates: A $500MM Problem
Ocean Rates: A $500MM Problem For personal use only Confidential contracts are sent by email in Word, PDF and Excel APPLICATION Contract Fragmented carrier systems SUDS Management drive 12-20% invoicing errors 2 Rate Engine/ Search 50,000 Freight Forwarders spend USD RFQ $500MM annually to systemati
Slide 77: Vision: The World's Connector for Rates
Vision: The World’s Connector for Rates For personal use only Before Acquisition, We Had: • The product vision • Domain expertise • A ripe market But, we were too small to execute fast enough After Acquisition, We Have: • Significantly expanded R&D • WTG processes and best practices • Access to WTG
Slide 78: Our Solution: Search In Seconds
Our Solution: Search In Seconds We have product vision We have a ripe market R&D Processes We were missing: WTG Customers For personal use only The industry’s connector for rates Sabre, Amadeus
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