Gentrack Group Ltd · NZX:GTK
Gentrack — Shareholder Meeting (February 2020)
16 slides from Gentrack's shareholder meeting presentation, Feb 26, 2020
Slide 1: Annual Meeting of Shareholders Presentations
26 February 2020 For personal use only Annual Meeting of Shareholders Presentations Please find attached a copy of the presentations that will be delivered at Gentrack Group Limited’s (NZX/ASX: GTK) annual meeting of shareholders today at 4pm NZT in Auckland. Gentrack will provide a link to the audi
Slide 2: Gentrack Group Ltd (GTK) Annual Meeting 2020
For personal use only Gentrack Group Ltd (GTK) Annual Meeting 2020 26 February 2020
Slide 3: Disclaimer
DISCLAIMER For personal use only This presentation may contain forward-looking statements. Forward-looking statements often include words such as ‘anticipate’, ‘expect’, ‘plan’ or similar words in connection with discussions of future operating or financial performance. The forward-looking statement
Slide 4: Introductions
INTRODUCTIONS Directors For personal use only John Clifford Nick Luckock Fiona Oliver Andy Coupe Leigh Warren * Darc Rasmussen ** Chairman (2007) Non-executive Director (2018) Non-executive Director (2019) Non-executive Director (2014) Non-executive Director (2008) Non-executive Director (2019) Exec
Slide 5: CEO and CFO Changes
CEO AND CFO CHANGES For personal use only • Announced this week that Ian Black has resigned as CEO • John Clifford taking over as executive chairman • A global search has commenced for a new CEO • An interim CFO is in place - Phil Eustace 4
Slide 6: FY19 Summary
FY19 SUMMARY For personal use only • Utilities Revenue NZ$88.2m (up 3.6% on FY18) • Veovo Revenue NZ$23.5m (up 22% on FY18) 1 • Group Recurring Revenue NZ$78.2m (up 22% year on year) 2 • Annualised Committed Revenue NZ$59.7m (up 12% year on year based on month 12 run rate) • Customer wins 3 7 new ut
Slide 7: Utilities – FY19 Summary
UTILITIES – FY19 SUMMARY For personal use only UTILITIES REVENUE (NZ$’m) $88.2m FY19 Revenue Up 3.6% on FY18 $20.0m FY19 EBITDA1 Down 23% on FY18 7 New utilities 3 Evolve Assurance upsells 1 EBITDA: Earnings before net finance expense, tax, depreciation and amortisation and other non-operating expen
Slide 8: Veovo – FY19 Summary
VEOVO – FY19 SUMMARY For personal use only AIRPORTS REVENUE (NZ$’m) $23.5m FY19 Revenue Up 22% on FY18 $4.8m FY19 EBITDA1 Down 4% on FY18 3 New airports 20 of Top 100 busiest airports as customers 1 EBITDA: Earnings before net finance expense, tax, depreciation and amortisation and other non-operati
Slide 9: Utilities – Shift Towards Recurring Revenue
UTILITIES – SHIFT TOWARDS RECURRING REVENUE For personal use only Licence ► Changing our revenue mix Utilities CRR Non-recurring revenue is revenue is up 51% ► Increasing annual recurring revenues down 35% down 57% on FY18 on FY18 on FY18 4.2 9.7 15.3 • SaaS first 20.5 All new business is based on a
Slide 10: Cost Reduction and Operational Reorganisation
COST REDUCTION AND OPERATIONAL REORGANISATION For personal use only • We have reduced our costs by c NZ$8m run rate, c NZ$4m in FY20, principally head count reduction, without reducing key product investment • We have restructured our customer delivery and support functions to achieve higher product
Slide 11: Pressure on Energy Retailers in the UK and Australia
PRESSURE ON ENERGY RETAILERS IN THE UK AND AUSTRALIA For personal use only Energy Price Caps in the UK and Rapid ongoing change in Australia impacting energy retailer profits the UK regulatory environment Financial pressure increasing Regulatory changes in Australia for energy retailers Failure and
Slide 12: Strong Fundamentals
STRONG FUNDAMENTALS For personal use only • A market leader in energy and water utilities billing and customer management in the UK, Australia and New Zealand • A large sticky customer base • Extensive IP: • Meter-to-cash solutions for utilities • Revenue and operations solutions for airports • Sign
Slide 13: Our Pathway Back to Growth
OUR PATHWAY BACK TO GROWTH For personal use only 1. Continued investment in SaaS products to maintain competitive advantage • 100+ people in product development 2. Focus on migrating existing customers to our new SaaS capabilities • accelerating the uptake of our Gentrack Cloud product offering 3. F
Slide 14: Outlook
OUTLOOK For personal use only • Guidance unchanged for FY20 EBITDA1 expected to be between NZ$8m – $12m • 1H FY20 EBITDA1 expected to be between NZ$2m – $3m (1H FY19 $12.8m) • Cost reductions benefit 2H • UK and Australia energy market conditions remain unpredictable • Expect 5% growth in Contractua
Slide 15: Appendix - GAAP to Non-GAAP Profit Reconciliation
APPENDIX - GAAP TO NON-GAAP PROFIT RECONCILIATION For personal use only 12 Months 12 Months Period NZ$’000 30-Sep-19 30-Sep-18 Reported net profit/(loss) for the period (GAAP) (3,315) 13,870 Add back: net finance expense/(income) 763 1,820 Add back: income tax expense 3,758 6,863 Add back: depreciat
Slide 16: Appendix - Adjusted NPAT Reconciliation
APPENDIX - ADJUSTED NPAT RECONCILIATION For personal use only 12 Months Period NZ$’000 30-Sep-19 NPAT reported (3,315) Add back: CA+ Intangibles Impairment 14,551 Add back: Associated Deferred Tax Adjustment (1,210) Add back: Blip Systems Option Revaluation (384) Adjusted NPAT 9,642 15