Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — Straker Translations — Investor Presentation (March 2017)
26 slides from Bailador Technology Investments's investor presentation, March 2017
Slide 1: Investor Presentation March 2017
INVESTOR PRESENTATION March 2017
Slide 2: Straker Translations is a technology leader in the US$40 billion global translations industry
STRAKER TRANSLATIONS IS A TECHNOLOGY LEADER IN THE US$40 BILLION1 GLOBAL TRANSLATIONS INDUSTRY Straker Utilises Proprietary Machine Learning and Global Crowd Sourcing To Create a More Effective Translation Supply Chain (1) Source: Common Sense Advisory, The Language Services Market: 2016 2
Slide 3: The Hybrid Machine/Crowd Sourced Translation Model has Begun to Dominate the Industry
The Hybrid Machine/Crowd Sourced Translation Model has Begun to Dominate the Industry POOR INEFFICIENT WINNER QUALITY Historical Manual Hybrid Model Pure Machine Translation • Limited by in-house language • First draft by machine • Good for ‘getting the gist’ pair capability • Final product refined
Slide 4: Straker has the most efficient and proven hybrid translation model in the world
Straker has the most efficient and proven hybrid 40,000 translation model registered Proven translators in the world Platform Centralised Cloud Based Translators paid Translators Platform by the hour, but constantly rated charged by per using big data word rate assets Highly Scalable Seasoned Machin
Slide 5: Straker Has A Strong Competitive Advantage
Straker Has A Strong Competitive Advantage SPEED HARD TO REPLICATE Straker’s platform makes the quotation and translation Straker’s platform is the result of seven years of process faster than its competitors, in a market where iterative development and customer feedback, speed and accuracy are equa
Slide 6: Straker is Well Positioned For Success
Straker is Well Positioned For Success STRAKER AVERAGE 50-55% INDUSTRY AVERAGE 40-45% ORGANIC GROWTH AND NATURAL ACQUISITION INDUSTRY HIGH TARGETS GROSS MARGINS Highly fragmented industry Top 100 operators contribute less than + 13% global revenue1 GLOBALLY SCALABLE WINNING MARKET SHARE GLOBALLY 80%
Slide 7: A Large Global Market
A Large Global Market Annual revenue from the global translation Global spread of activity means no industry currently exceeds US$40 billion1 dependence on any particular region The industry continued growing during the Oceania GFC as customers looked to new, foreign 2% Asia language markets to fuel
Slide 8: Industry Growth Forecast To Continue
Industry Growth Forecast To Continue CONTENT CREATION The recent proliferation in publishing platforms and the increased importance of content driven marketing has resulted in content volumes DEMOGRAPHIC SHIFT growing rapidly The growth of the middle class in emerging markets has changed internet de
Slide 9: Case Studies of Growing Use of Translation
Case Studies of Growing Use of Translation eCommerce Manufacturing Technology The Hut Group are the UK’s Mitutoyo are a large German largest eCommerce provider. They Manufacturer, with $800k have over $1m in contracted contracted translation revenue translation revenue with Straker with Straker The
Slide 10: The Advance of Machine Translation Benefits Straker
The Advance of Machine Translation Benefits Straker Better quality machine “Machines will not replace humans for translation translation in the next 50 years - we cannot train them to understand context as they don’t know what context is” - Kyunghyun Cho - world leading expert on neural machine tran
Slide 11: Straker has World Leading Quality Control
Straker has World Leading Quality Control Refunds represent Global Certification only 0.3% of revenue, validating Straker has the highest global certification possible for Straker’s quality translation services - ISO 9001 and EN-15038 approach Centralised Control The RAY translation platform central
Slide 12: A World Leading Platform that is Virtually Impossible to Replicate
A World Leading Platform that is Virtually Impossible to Replicate TRANSLATION PROJECT MANAGEMENT PLATFORM TRANSLATOR MANAGEMENT CUSTOMER DASHBOARD PLATFORM MACHINE TRANSLATION ENGINE HUMAN TRANSLATION WORKBENCH TRANSLATION DATA ANALYTICS ENGINE AUTOMATION AND API The world leading RAY translation p
Slide 13: A Highly Valuable Data Asset
A Highly Valuable Data Asset Straker Translation Memory Database DATABASE ROWS Translation memory is used to train 90,000,000 machine engines 67,500,000 When combined with human data points, accurate data memories create an 1 BILLION enormous proprietary asset WORDS 45,000,000 Enhances accuracy and
Slide 14: The Nature of Straker's Model makes it Economically Scalable
The Nature of Straker’s Model makes it Economically Scalable 10,000 CUSTOMERS > 40,000 REGISTERED TRANSLATORS BROAD RANGE OF TRANSLATOR STRAKER PROVIDES INDUSTRIES ADVANTAGE • Legal • Machine Learning • 80 Source Languages • Huge Corpus • 100 Target Languages • Media • Efficient Platform • Already a
Slide 15: Straker is Able to Address a Global Market with Minimal Offshore Employees
Straker is Able to Address a Global Market with Minimal Offshore Employees A GLOBAL CUSTOMER BASE REDUCES SALES CYCLE RISK AND IS A STRONG PLATFORM FOR GROWTH UK/Europe 33% Canada 2% USA 45% Asia 4% Australia 8% NZ 8% Three global production centres in Data is based on last 12 months revenue (includ
Slide 16: An Impressive, Fast Growing Customer Base
An Impressive, Fast Growing Customer Base Revenue from repeat customers has been steadily increasing 58% 60% 58% 52% 47% 34% 1HY14 2HY14 1HY15 2HY15 1HY16 2HY16 New Revenue (%) Repeat Revenue (%) 16
Slide 17: Straker has Multiple Growth Drivers
Straker has Multiple Growth Drivers ACQUISITION GROWTH MARKET SHARE GROWTH Organic growth 15-25% P.A MARKET GROWTH EXISTING REVENUE 17
Slide 18: Traditional LSPs Present an Immediate Opportunity to Add Value
Traditional LSPs Present an Immediate Opportunity to Add Value STRAKER ACQUISITION STRATEGY 1. Acquisition target identified FRAGMENTED INDUSTRY WITH MANY • Small, low margin, private business ATTRACTIVE TARGETS • Owners have typically not invested in technology to the extent required to remain comp
Slide 19: Acquisition is a Powerful Driver of Value for Straker
Acquisition is a Powerful Driver of Value for Straker There are three stages to the process of value creation as small legacy translation service providers are acquired EXAMPLE ACQUISITION SCENARIO STAGE THREE: MULTIPLE STAGE ONE: UPLIFT IN GP STAGE TWO: CORPORATE EXPANSION UPON FULL TARGET COMPANY
Slide 20: Comparable Companies Demonstrating Characteristics of Straker are Highly Valued by the Market
Comparable Companies Demonstrating Characteristics of Straker are Highly Valued by the Market ASX:APX ASX:FLN ASX:WTC AIM:KWS localisation services for the language, search and social freelancing and crowd global video gaming industry global logistics software technology services sourcing marketplac
Slide 21: Appendix
APPENDIX straker |}>
Slide 22: Straker Snapshot
STRAKER SNAPSHOT BUSINESS OVERVIEW COMPETITIVE ADVANTAGE • Straker Translations Limited is headquartered in Auckland, New • Control of the value chain – Straker owns its technology platform, Zealand and is a leading global provider of cloud-enabled translation controls the customer acquisition proce
Slide 23: Company History
COMPANY HISTORY From its origins in 1999 as a web technology services company, Straker has evolved and grown to become a leading global provider of cloud-enabled translation services. Started to offer translation services 30 48 100 directly to customers via crowdsourcing $1m $13m 10 $5m $8m revenue
Slide 24: Board of Directors
BOARD OF DIRECTORS Grant Straker Phil Norman Paul Wilson Tim Williams James Johnstone Steve Donovan Founder CEO / Managing Director Chairman Director Director Director Director As one of the founders of Phil was the founding Paul has had extensive Tim founded ValueCommerce James has 14 years Steve i
Slide 25: Executive Management
EXECUTIVE MANAGEMENT David Sowerby Kim Andrews Haydn Marks Indy Nagpal Meryn Straker Chief Revenue Officer Chief People Officer Chief Financial Officer Chief Technical Officer Chief Operations Officer David has more than 10 years Kim works alongside the As CFO, Haydn oversees the Indy has over 17 ye
Slide 26: Straker Translations
straker TRANSLATIONS
Straker Translations — Investor Presentation (March 2017) on 6ix