Gentrack Group Ltd · NZX:GTK
Gentrack — FY2017 Earnings Presentation
23 slides from Gentrack's earnings presentation, Dec 14, 2017
Slide 1: Gentrack Results for the Full Year to 30 September 2017
GENTRACK RESULTS FOR THE FULL YEAR TO 30 SEPTEMBER 2017 UPDATED: 14 DECEMBER 2017
Slide 2: Important Notice
IMPORTANT NOTICE This presentation contains 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 statements are based on mana
Slide 3: Essential Software for Essential Services
BUSINESS FINANCIAL OUTLOOK STRATEGIC Q&A UPDATE RESULTS FOCUS ESSENTIAL SOFTWARE FOR ESSENTIAL SERVICES We pair our powerful platforms with deep market knowledge to help utilities and airports lower service costs, drive innovation and confidently navigate market reform. EXPERTISE AND PASSION 3
Slide 4: World-Class Solutions for Utilities and Airports
WORLD-CLASS SOLUTIONS FOR UTILITIES AND AIRPORTS 4
Slide 5: Delivering Results in FY17
DELIVERING RESULTS in FY17 • 12 new utility and 9 new airport customers • 27 customer projects delivered, including completion of Gentrack’s largest utility billing project in Australia • Expansion of our managed service and subscription based offerings and investment • Successful integration of thr
Slide 6: Experienced Leadership Driving Business Growth
EXPERIENCED LEADERSHIP DRIVING BUSINESS GROWTH PAUL KING SAUL NURTMAN COUNTRY MANAGER – AUSTRALIA MANAGING DIRECTOR – UK/EUROPE DAVID WILLS CHRIS WARRINGTON CHIEF OPERATING OFFICER – GLOBAL VP AIRPORTS – GLOBAL 6
Slide 7: Financial Performance
BUSINESS FINANCIAL OUTLOOK STRATEGIC Q&A UPDATE RESULTS FOCUS FINANCIAL PERFORMANCE REVENUE EBITDA $11.8m 84% NPAT Pre-tax free Up 23% on cash flow as a % $75.2m $23.9m FY16 of EBITDA 43% 43% Growth Growth over FY16 over FY16 12.7cps 143% TOTAL SHAREHOLDER FULL YEAR RETURNS SINCE DIVIDEND IPO 18% 24
Slide 8: Delivering Consistent Results
DELIVERING CONSISTENT RESULTS $75.2m • Continuous organic growth 7 Year CAGR • Strategic growth acquisitions c.15% • Consistent dividend growth since IPO $23.9m 8
Slide 9: Divisional Analysis
DIVISIONAL ANALYSIS UTILITIES Utilities delivered strong growth, up 42% FY17 on FY16. $20.7m $63.5m The utilities business now occupies first or FY16 second market share position for billing and CIS solutions in our three chosen $14.0m $44.8m markets. Our addressable market has increased to AIRPORTS
Slide 10: Geographic Analysis
GEOGRAPHIC ANALYSIS FY17 FY16 Australia Energy regulatory reform driving growth UK/Europe Addition of new customers to the Junifer platform Largest European utility selects Velocity – initial project in Romania ROW First customer in Singapore and new offices to support Southeast Asia operation. 10
Slide 11: Revenue Type Analysis
REVENUE TYPE ANALYSIS Licence growth was 74% 90%+ of revenues are from existing customers Recurring revenues grew by 43%. 11
Slide 12: Global Resource Growth
GLOBAL RESOURCE GROWTH 167 429 156 55% Total resource increase over prior year New Zealand 278 250% 79 UK/Europe resource growth over prior year including acquisitions. 70 Australia Research and Development resources increased by 30% over FY16 183 21% of Research and Development activity 52 was capi
Slide 13: FY18 Outlook
BUSINESS FINANCIAL OUTLOOK STRATEGIC Q&A UPDATE RESULTS FOCUS FY18 OUTLOOK • Continued growth in FY18 driven by ongoing energy and water market reforms in Australia, UK and Singapore • Targeting 15%+ long term EBITDA growth albeit results in any given year may be impacted by the timing of projects •
Slide 14: Capitalising on Changing Markets
BUSINESS FINANCIAL OUTLOOK STRATEGIC Q&A UPDATE RESULTS FOCUS CAPITALISING ON CHANGING MARKETS COMPETITIVE DEMAND FOR NEW RETAIL RETAIL MARKETS MANAGED SERVICES BUSINESS MODELS CUSTOMER DRIVEN EVOLVING MARKET NEW SERVICES TECHNOLOGIES FRAMEWORKS PLATFORMS 14
Slide 15: Focused Change to Deliver Stronger Outcomes
FOCUSED CHANGE TO DELIVER STRONGER OUTCOMES LEVERAGING CLOUD CORE R&D PRODUCT DELIVERY CHANGING UTILITIES CONSISTENT EFFICIENCIES INVESTMENT INNOVATION MARKETS SHAREHOLDER VALUE - Expanding Gentrack’s - Pre-packaged/ market - Subscription based - New regions - Revenue and EBITDA managed service offe
Slide 16: Gentrack Core Competencies for Utilities
GENTRACK CORE COMPETENCIES FOR UTILITIES BILLING MARKET INTERACTIONS We have a deep understanding of We excel at meeting complex Billing complex market interactions and enable needs, at scale across Domestic, SME utilities to stay compliant and connected. and Commercial/Industrial sites. CUSTOMER IN
Slide 17: Bringing Junifer to Australia and New Zealand
BRINGING JUNIFER TO AUSTRALIA AND NEW ZEALAND Smart billing and CRM for new entrant energy retailers • Out of the box meter-to-cash capabilities • SaaS and Cloud enabled • Onboard with ease and scale quickly • Localised for market regulatory frameworks • Extending Gentrack’s local footprint: • NZ: 2
Slide 18: Appendices
APPENDICES 18
Slide 19: Essential Software for Essential Services
CARVE YOUR EMBRACE NAVIGATE UNIQUE OFFER DIGITAL MARKET CHANGE ESSENTIAL SOFTWARE FOR ESSENTIAL SERVICES Play your way. Shape your future. 19
Slide 20: Connected Intelligence
PASSENGER OPERATIONS REVENUE EXPERIENCE CONNECTED INTELLIGENCE Connect your data to unlock its true value, and make better decisions, faster. 20
Slide 21: Addressable Market in Core Growth Regions
ADDRESSABLE MARKET IN CORE GROWTH REGIONS UNITED KINGDOM AIRPORTS SINGAPORE NEW ZEALAND AUSTRALIA & IRELAND GLOBALLY 88 ENERGY + 32 WATER 27 ENERGY 42 ENERGY 40 ENERGY + 47 WATER SKYTRAX ‘TOP 100’# BRANDS BRANDS BRANDS BRANDS AIRPORTS 2017 GENTRACK POSITION #2 #4 #1 #2 20% 37 energy suppliers and 1
Slide 22: GAAP to Non-GAAP Profit Reconciliation
GAAP TO NON-GAAP PROFIT RECONCILIATION GAAP to non-GAAP profit reconciliation 12 Months 12 Months Period 30-Sep-17 30-Sep-16 Reported net profit for the period (GAAP) 11,825 9,608 Add back: amortisation 3,314 2,015 Add back: tax adjustment for amortisation (845) (533) NPATA 14,294 11,090 Add back: n
Slide 23: FY17 Results on a Constant Currency Basis
FY17 RESULTS ON A CONSTANT CURRENCY BASIS FY17 on NZ$000 FY16 FY17 CONSTANT ∆% CURRENCY* Revenue 52,734 75,181 78,533 -4% EBITDA 16,727 23,904 24,783 -4% NPATA 11,090 14,294 14,884 -4% NPAT 9,608 11,825 12,355 -4% Net Cash 18,818 9,727 Balance * Based on FY16 Final exchange rates 7.7 8.5 and actuals