Appen Ltd. · ASX:APX
Appen — Shareholder Meeting (May 2021)
23 slides from Appen's shareholder meeting presentation, May 28, 2021
Slide 1: 2021 Annual General Meeting – CEO's Presentation (ASX announcement)
Appen Limited Level 6, 9 Help Street Chatswood NSW 2067 Tel: 02 9468 6300 www.appen.com For personal use only ACN: 138 878 298 ASX ANNOUNCEMENT 28 May 2021 2021 ANNUAL GENERAL MEETING – CEO’S PRESENTATION Appen Limited (Appen) (ASX: APX) provides the attached CEO’s presentation to be delivered at to
Slide 2: Appen Limited Annual General Meeting CEO Presentation
For personal use only Appen Limited Annual General Meeting CEO Presentation
Slide 3: 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 4: Artificial intelligence... informed by Appen
For personal use only Artificial intelligence... Appen makes AI work in the real world by delivering high-quality training data at scale. Our clients include the world’s largest technology companies, global leaders in automotive, financial services, retail, healthcare, and government agencies. ...in
Slide 5: Solid growth maintained in FY20
Solid growth maintained in FY20 For personal use only High growth and performance in 1H20 A$ FY2020 vs FY2019 Moderated in 2H20 due to strong Australian Group revenue $599.9M +12% dollar and COVID-19 impacts including: impact of lower digital ad revenue and Relevance $538.2M +15% uncertain outlook
Slide 6: New customer and project wins strengthen our position
New customer and project wins strengthen our position For personal use only Customer wins Project wins China revenue A$M 46 2.8 +60% 36 QoQ 1.9 30 24 +34% 1.3 in 2020 0.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 136 new customers in 2020 34% increase in projects with China revenue growth 60% existing major cus
Slide 7: Ongoing growth in committed revenue
Ongoing growth in committed revenue For personal use only Annual contract value (ACV) Revenue by type At end of period A$M US$M 124.4 103.0 98.7 100% 97% 93% 88% 69% Project Committed 25.0 31% 3% 7% 12% 2H 2019 1H 2020 2H 2020 1 Feb 2021 2H 2018 1H 2019 2H 2019 1H 2020 2H 2020 399% increase in ACV
Slide 8: Data remains a major obstacle for AI
Data remains a major obstacle for AI For personal use only In a recent survey, 18% of respondents see lack of Many AI practitioners spend most of their time data or data quality as the major bottleneck to AI collecting and preparing data “… Airbnb have discovered that nearly 70% of the time a data s
Slide 9: Shift from model-centric to data-centric AI
Shift from “model-centric” to “data-centric” AI For personal use only 8 May 27, 2021 Source: Landing.ai
Slide 10: Automation critical to the labelling process
Automation critical to the labelling process For personal use only Pre-labelling Speed labelling Smart Validators • AI performs an initial ‘best • AI models that • AI models that verify crowd guess’ of the annotation assist crowd workers by output before they are • Crowd workers check and automating
Slide 11: Real-world models typically use a combination of data-sources and techniques
Real-world models typically use a combination of data-sources and techniques For personal use only Contribution from different model/data approaches (Illustrative) Supervised Supervised US English chatbot Self-supervised Supervised (Human Transfer learning (AI-assisted human for a bank learning (Off
Slide 12: Popular AI techniques rely on human involvement
Popular AI techniques rely on human involvement AI technologies used in mature practices For personal use only Techniques that typically require some level of human annotation and/or preparation Source: O’Reilly: AI Adoption in the Enterprise 2021. Survey n = 3,574 11
Slide 13: Appen continues to evolve
Appen continues to evolve For personal use only From To Data type Language data AI data Delivery model Service led Product led Revenue Project based Committed Customer Concentration Diversification Org structure Functional alignment Customer alignment Reporting Data modality, AUD Strategy led, USD 1
Slide 14: Our areas of focus
Our areas of focus For personal use only Our future is product led, enabling us to deliver high-quality Product training data, faster, at larger scale, with improved unit Led economics, and is a foundation for future capabilities Customer We are aligning our operations to better support the needs Ce
Slide 15: Appen's high value product suite
Appen’s high value product suite For personal use only New products Appen Appen Data Appen Appen Appen Connect Annotation Platform Intelligence In-Platform Audit Mobile Match our global Collect and annotate Powers Appen products Organise and analyse Engages, enables and crowd workforce to training d
Slide 16: Customer-centric org structure
Customer-centric org structure For personal use only • Four customer focused business units with end-to-end operational and P&L Enterprise accountability Govt • Respond quickly to changing customer needs and market trends Global • We are optimising resources to align with the new operating model and
Slide 17: Revenue by customer-focused business units
Revenue by customer-focused business units For personal use only Global customers deliver solid growth Enterprise, Government and China provide underpinned by large programs high growth and will improve customer distribution over time Note: All figures in US$M. 1. Annualised CAGR from H1 2019 to H2
Slide 18: Segmenting by offering shows very high growth in New Markets
Segmenting by offering shows very high growth in New Markets For personal use only Services provided to leading US tech Revenue from leading US tech companies companies utilising their data through Appen products and Enterprise, annotation tools Government and China Note: All figures in US$M. 1. Ann
Slide 19: Solid earnings from Global Services supports New Markets growth
Solid earnings from Global Services supports New Markets growth For personal use only Global Services provides solid Ongoing investments into New Markets earnings with margin expansion to drive growth through scale and technology EBITDA Note: All figures in US$M. EBITDA includes all corporate costs
Slide 20: 2021 outlook
2021 outlook For personal use only 2021 revenue growth outlook Resource optimisation • Global Services skewed to H2; • Restructure and tech-enabled full-year mid to high single-digit productivity allow resource growth optimisation, mainly in delivery • New Markets expected growth resources circa 25%
Slide 21: Trading update
Trading update For personal use only • Year-to-date revenue plus orders in hand of ~US$260M1 at end of April 2021, consistent with prior methodology2 • Heavy weighting to underlying EBITDA in 2H21 due to: • Key projects that were delayed in late 2020 are returning with a skew to delivery in 2H21 • 1
Slide 22: Appen is accelerating its transformation into an AI powered provider
Appen is accelerating For personal use only its transformation into an AI powered provider of AI data and solutions 21
Slide 23: Thank you
For personal use only 22 Thank you