Slide 1: Kinaxis Investor Overview
Kinaxis Investor Overview TSX:KXS PRESENTED BY Rick Wadsworth | VP, IR June 2018 Copyright © 2018 Kinaxis. All Rights Reserved.
Slide 2: Forward-looking statements
Forward-looking statements Forward-Looking Information This document contains forward-looking statements within the meaning of applicable Canadian securities legislation. In some cases, these forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipat
Slide 3: Today's supply chain networks are extended and complex
Today’s supply chain networks are EXTENDED and COMPLEX Short product and Global, outsourced, Highly volatile delivery lead time multi-tier operations demand and supply Copyright © 2018 Kinaxis. All Rights Reserved.
Slide 4: Ability to respond to change is more important than the plan
A single product that provides customers end-to-end visibility and planning, change simulation and response coordination across their supply chain networks. In today’s world, the ability to respond to change is more Copyright © 2018 Kinaxis. All Rights Reserved. important than the plan
Slide 5: Investment Highlights – High Growth SaaS Model
Investment Highlights – High Growth SaaS Model US Dollars 1 3 3 .3 (Millions) 1 0 0 .8 1 1 6 .0 24% 25% 8 1 .8 36% CAGR CAGR CAGR 4 0 .1 9 1 .3 6 5 .2 3 0 .0 2 8 .5 7 0 .1 5 1 .1 33% 30% 1 6 .1 25% 23% 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 TOTAL REVENUE2 TOTAL SUBSCRIPTION REVE
Slide 6: Investment highlights
Investment highlights 1 Industry-recognized, disruptive SaaS product 2 Growing blue chip customer base 3 Growing list of partners providing scale 4 Investing for accelerated growth, strong profitability 5 Strong management team Copyright © 2018 Kinaxis. All Rights Reserved. 6
Slide 7: Rapidly growing market for SaaS-based SCM solutions
Rapidly growing market for SaaS-based SCM solutions Kinaxis’ market opportunity 2 ~100 Current 1 $4.4B 2018 customers 2,000 2 Opportunities in 19.1% current market CAGR verticals served 5,000 2012 2 Cloud Application $1.5B Market in SCM Total potential opportunities 1 2 Forecast: Public Cloud Servic
Slide 8: Proven across multiple market verticals
Proven across multiple market verticals HIGH TECH AND AEROSPACE INDUSTRIAL ELECTRONICS AND DEFENSE LIFE SCIENCES AND AUTOMOTIVE CONSUMER PHARMACEUTICALS PACKAGED GOODS Copyright © 2018 Kinaxis. All Rights Reserved. 8
Slide 9: Blue-chip customers
Blue-chip customers Copyright © 2018 Kinaxis. All Rights Reserved. 9
Slide 10: Industry-recognized leader/visionary in supply chain
Industry-recognized leader/visionary in supply chain M a g ic Q u a d ra n t fo r S a le s a n d O p e ra tio n s P la n n in g S y s te m s o f D iffe re n tia tio n Given the configurability of RapidResponse, it is an ideal solution to take Enterprise companies through the various stages of supply
Slide 11: Partner program driving growth and scale
Partner program driving growth and scale Strategic/ Influence Partners Services Partners Resellers (Japan) ● Recruitment ● Enablement ● Co-development ● Copyright © 2018 Kinaxis. All Rights Reserved. 11
Slide 12: Supply chain planning needs a revolution
Supply chain planning needs a revolution Barriers to performance Impact on performance Market uncertainty Revenue at risk Long time to detect Inventory obsolescence Long time to correct Unfilled customer orders Long decision cycles High expediting costs Inability to collaborate Excess capacity Copyr
Slide 13: Modular, functional, cascaded supply chain planning has failed
Modular, functional, cascaded supply chain planning has failed • Cascaded planning • Loosely coupled • Excel dependent • Narrow functions • Individual apps and processes • Optimization focused Processes are siloed and legacy solutions only reinforce that. Copyright © 2018 Kinaxis. All Rights Reserve
Slide 14: Kinaxis connects the enterprise
Kinaxis connects the enterprise • Concurrent planning! Demand/Event Network Planning Transportation Planning Planning • Single solution Sell-side Collaborative Planning Buy-side Collaborative Planning Order Promising Inventory Warehouse Planning/Optimization Management • Seamless processes • Integra
Slide 15: Actual customer results
Actual customer results Improved On-Time Delivery Lower Inventory Costs 6 weeks to 4 weeks 33% Days to Minutes 20% less in 3 months PLANNING ASSESSMENT OF FINISHED GOODS FINISHED GOODS CYCLE Planning 1 cycle(1) DEMAND PLAN2 INVENTORY2 INVENTORY3 50% 80% 34% 20% OVERALL PRODUCT CUSTOMER ORDER INVENTO
Slide 16: Planning is important, responding to changes is imperative
Planning is important Responding to changes to the plan is imperative Copyright © 2018 Kinaxis. All Rights Reserved.
Slide 17: Business model provides visibility, stability & growth
Business model provides visibility, stability & growth VISIBILITY STABILITY ~80 % >100 % FORWARD TWELVE-MONTH REVENUE NET REVENUE DOLLAR RETENTION SUBSCRIPTION REVENUE GROWTH SUSTAINABILITY 2-5 ~ 65 % FROM NEW NAME ACCOUNTS | ~ 35 % FROM EXISTING CUSTOMERS Multiple levers in revenue model: YEAR CONT
Slide 18: Financial results
Financial results IFRS 15/16 1 Pre-IFRS 15/16 1 $ in USD millions Q1 2018 Q1 2018 Q1 2017 Change IFRS 15 / 16 Total Revenue $36.8 $35.9 $32.5 10% Subscription Services $26.0 $29.5 $23.9 24% Subscription Term Licenses 4.5 - - - Total Subscription Revenue 30.5 29.5 23.9 24% Gross Profit $26.7 $25.7 $2
Slide 19: Financial guidance
Financial guidance FY 2018 $ in USD millions IFRS 15/16 Pre-IFRS 15/16 1 Total Revenue $150 - 154 $158 - 163 Subscription Services $109 - 111 $23 - 26% growth Subscription Term Licenses $7 - 8 - Adjusted EBITDA margin2 24 - 27% of revenue 23 - 26% of revenue 1 2 Based on IFRS standards in effect as
Slide 20: Management Team
Strong team Ian Giffen (C h a ir) BOARD OF DIRECTORS John Sicard, C h ie f E x e cu tiv e O ffice r MANAGEMENT TEAM • K e y c o n trib u to r to th e a rc h ite c tu re a n d d e ve lo p m e n t • S e rve s a s a n a d viso r a n d /o r d ire c to r to te c h n o lo g y c o m p a n ie s o f K in a x
Slide 21: Kinaxis' growth focus
Kinaxis’ growth focus 1 Land & expand model 2 Ongoing penetration of new vertical markets 3 Expand direct sales team, leverage channel partners 4 Invest in further product innovation 5 Invest in new data centres MULTI PLE OPPORTUNI TI ES TO I NCREASE MARKET PENETRATI ON Copyright © 2018 Kinaxis. All
Slide 22: Know sooner. Act faster.
KINANIS: KNOW SOONER. ACT FASTER.