Slide 1: Results FY17
Results FY17 Financial data for FY17 is provided on a statutory basis. A reconciliation of statutory results to pro forma results for FY13 to FY16 is included in the Appendix. 23 August 2017
Slide 2: Important notice and disclaimer
CONFIDENTIAL DRAFT 2208 11AM Important notice and disclaimer Visit www.wisetechglobal.com/investors NOT FOR RELEASE FORWARD-LOOKING STATEMENTS PREPARATION OF INFORMATION This presentation may statements that are, or may are deemed to be, forward-looking All financial information has been prepared an
Slide 3: Logistics industry – moving goods and data
Logistics industry – moving goods and CONFIDENTIAL data DRAFT 2208 11AM NOT FOR Movement of goods requires timely movement of accurate information acrossRELEASE the supply chain A myriad of logistics suppliers are needed across the supply chain. Information moves ahead of, alongside and behind the p
Slide 4: A leading provider of software to the logistics industry globally
CONFIDENTIAL DRAFT 2208 11AM A leading provider of software to the logistics industry NOT FORglobally RELEASE 125+ countries(1) 7,000+ customers(2) 3+ million development hours over 15 years 44+ billion data transactions annually >730 employees 1 integrated CargoWise One global system Countries with
Slide 5: Agenda
Agenda CONFIDENTIAL DRAFT 2208 11AM NOT FOR RELEASE Richard White Founder and CEO Welcome CEO overview Financials Strategy Q&A & performance FY17 & outlook highlights 4
Slide 6: WiseTech Global financial highlights
WiseTech Global financial highlights CONFIDENTIAL DRAFT 2208 11AM NOT Delivered strong, high quality growth while expanding technology leadFOR RELEASE and global footprint ACCELERATED HIGH recurring, LOW HIGH innovation LOW sales and PROFITABLE + revenue growth HIGH quality customer product developm
Slide 7: Delivered on strategy – we focus on what's important for global expansion
Delivered on strategy – we focus on what’s CONFIDENTIAL important DRAFT 2208 11AM NOTforFOR Executed strategy to drive powerful revenue growth, well positioned furtherRELEASE global expansion Innovation and expansion of Increase new customers Stimulate Accelerate organic growth our global platform G
Slide 8: Strong growth in revenue continues
Strong growth in revenue continues CONFIDENTIAL DRAFT 2208 11AM Accelerated high quality revenue growth while building out our NOT platformFOR RELEASE and expanding globally Revenue (statutory basis) ($ million) 153.8 FY17 revenue +50% v FY16 82.7 102.8 +38% CAGR FY13 – FY17 70.0 54.2 56.7 37.7 43.0
Slide 9: Agenda
Agenda CONFIDENTIAL DRAFT 2208 11AM NOT FOR RELEASE Andrew Cartledge CFO Welcome CEO overview Financials Strategy Q&A & performance FY17 & outlook highlights 8
Slide 10: Financial summary
Financial summary CONFIDENTIAL DRAFT 2208 11AM Strong growth in revenue and earnings reflects strength of business NOT FOR and execution RELEASE on strategy $ million FY16PF FY17(1) Change (vs FY16PF) Revenue at top of guidance range Total revenue 103.3 153.8 +49% FY17 of $148m–$155m FY17 FX headwin
Slide 11: Strong growth
Strong growth CONFIDENTIAL DRAFT 2208 11AM NOT Strong organic revenue growth, expanding EBITDA margins, while FORout building RELEASE our platform • 50% revenue growth v FY16 Statutory • 49% revenue growth v FY16PF Revenue EBITDA +71% yoy ($ million, FY13PF - FY17) +49% yoy ($ million, FY13PF - FY17
Slide 12: Revenue growth
Revenue growth CONFIDENTIAL DRAFT 2208 11AM Revenue growth across existing and new customers NOT FOR RELEASE • Existing customer growth $27.2m (FY16: $15.1m) reflecting increased Revenue usage across the customer base, ($ million, FY16PF - FY17) commencement of DHL GF global rollout, and large custo
Slide 13: Licensing model
Licensing model CONFIDENTIAL DRAFT 2208 11AM NOT FOR Focus on pay for usage, revenue benefits from transition of customers RELEASE to On-Demand licensing • 92% of our FY17 revenues (excluding recent acquisitions) from On-Demand customers Revenue by licence type (% of total revenue FY13PF - FY17) • S
Slide 14: Financial performance summary
Financial performance summary CONFIDENTIAL DRAFT 2208 11AM NOT Robust delivery on strategy, business thriving, operating leverage FOR RELEASE as revenue grows Income statement Pro forma $ million FY15PF FY16PF FY17(1) On-Demand 56.9 86.2 127.3 OTL maintenance 20.0 15.4 15.1 OTL and support services
Slide 15: Operating expenses
Operating expenses CONFIDENTIAL DRAFT 2208 11AM Scaling to support innovation and business growth NOT FOR RELEASE Operating expenses • Large growth in revenue (% of total revenue FY13PF - FY17) delivers operating leverage as the business scales 29% • OpEx focused on strategic 24% 21% 22% levers: 22%
Slide 16: Investment in innovation and product development
Investment in innovation and product developmentCONFIDENTIAL DRAFT 2208 11AM NOT Continued high investment in R&D, every $ and every hour builds outFOR RELEASE our technology • Over 680 product upgrades and Investment in innovation and product development enhancements in FY17 across the ($ million,
Slide 17: Cash flow profile
Cash flow profile CONFIDENTIAL DRAFT 2208 11AM Healthy operating cash flow NOT FOR RELEASE • Continued high conversion of EBITDA into operating cash flow – Non-cash items in EBITDA mainly $ million Pro forma reflect share-based payments and FY15PF FY16PF FY17 reserve movements EBITDA 21.9 31.5 53.9
Slide 18: Summary statement of financial position
Summary statement of financial position CONFIDENTIAL DRAFT 2208 11AM Strong capital position from which to drive strategic growth NOT FOR RELEASE $ million 30 June 2016 30 June 2017 • Strong capital position of Current assets $102m in cash and equivalents Cash and cash equivalents 109.5 101.6 to dri
Slide 19: Agenda
Agenda CONFIDENTIAL DRAFT 2208 11AM NOT FOR RELEASE Richard White Founder and CEO Welcome CEO overview Financials Strategy Q&A & performance FY17 & outlook highlights 18
Slide 20: Powerful high growth engine – CargoWise One integrated global platform
Powerful high growth engine – CargoWise CONFIDENTIAL One integratedDRAFT 2208 11AM global platform NOTcapacity, Strong foundation for future technology, seamless rollout, scalable FOR RELEASE global solutions Global deeply integrated logistics execution platform scalable to any size of business
Slide 21: Accelerated high quality revenue uplift from existing customers
Accelerated high quality revenue upliftCONFIDENTIAL DRAFT 2208 11AM from existing customers NOT Our customers stay and grow their revenue over time… more users,FOR RELEASE modules, transactions • Powerful foundation for cash flow and revenue CargoWise One application suite revenue by customer cohort
Slide 22: Innovation investment
Innovation investment CONFIDENTIAL DRAFT 2208 11AM NOT FOR Significant pipeline of longer-term innovations across existing verticals RELEASE and new adjacencies developing new modules to enable Work faster, harder, smarter additional logistics activities or market over 680 segments PAVE GLOW UCE p
Slide 23: Logistics execution industry dynamics
Logistics execution industry dynamics CONFIDENTIAL DRAFT 2208 11AM Industry pain points drive an exponential shift to CargoWise OneNOT FOR RELEASE 3PL industry dynamics vs Impact of Our leading global logistics software and low propensity to switch out of dynamic for open-access, usage-driven busine
Slide 24: Logistics – rising impact of ecommerce
Logistics – rising impact of ecommerceCONFIDENTIAL DRAFT 2208 11AM NOT Exponential increase in volumes and demand for faster, cheaper, FOR more RELEASE accurate supply chain “Ecommerce sales expected to double in next 4 years to reach $5.6 trillion” “every 7th online purchase is now a cross-border t
Slide 25: The squeeze is on… 'catch up, not keep up'
The squeeze is on… ‘catch up, not keepCONFIDENTIAL up’ DRAFT 2208 11AM Pressures on logistics providers and governments NOT FOR RELEASE Tariffs & taxes Border protection & safety Europe • EU: Union Customs Code High risk of error x high impact of error x high volumes (UCC), electronic customs • UK:
Slide 26: Organic growth accelerated by acquisitions
Organic growth accelerated by acquisitions CONFIDENTIAL DRAFT 2208 11AM NOT Small, valuable acquisitions further our growth across geographies andFOR RELEASE adjacencies We buy into market positions that would take years to build, integrate swiftly, drive value across platform Universal Customs Engi
Slide 27: Acquisition integration process + value
Acquisition ─ integration process + value CONFIDENTIAL components DRAFT 2208 11AM NOTcapability Stage 1 integration completed swiftly, we focus on long-term product FOR RELEASE and growing revenue Foothold 12-24 months 3 - 12 months Adjacencies 3+ yrs 0 - 36 months Integrate target Develop product G
Slide 28: Organic growth accelerated by acquisitions
Organic growth accelerated by acquisitions CONFIDENTIAL DRAFT 2208 11AM NOT Small, valuable acquisitions further our growth across geographies andFOR RELEASE adjacencies 2015 2017 Customs Customs Customs Customs Customs Ocean carrier Customs Customs Land tariffs transport China South Africa Germany
Slide 29: Powerful growth strategy
Powerful growth strategy CONFIDENTIAL DRAFT 2208 11AM NOT FOR RELEASE Multiple levers to sustain growth and increase market penetration + + Transactions/users Modules + Innovation Increase Stimulate Accelerate Industry and Geographies consolidation new network organic expansion of Greater usage by e
Slide 30: High growth outlook for FY18
High growth outlook for FY18 CONFIDENTIAL DRAFT 2208 11AM Execution on strategy to deliver strong growth in FY18 NOT FOR RELEASE • Momentum from FY17 leading into FY18 — — Revenue growth accelerated in existing customers 99% recurring revenue (excluding acquisitions) FY18 Revenue — Annual customer a
Slide 31: Agenda
CONFIDENTIAL DRAFT 2208 11AM Agenda NOT FOR RELEASE Welcome CEO overview Financials Strategy Q&A & performance FY17 & outlook highlights 30
Slide 32: Visit our investor centre for more information on WiseTech Global
CONFIDENTIAL DRAFT 2208 11AM Visit our investor centre for more information onNOT WiseTech FOR Global RELEASE www.wisetechglobal.com/investors Videos Presentations Other materials 31
Slide 33: FY18 guidance and assumptions
FY18 guidance and assumptions CONFIDENTIAL DRAFT 2208 11AM Growth in revenue and EBITDA NOT FOR RELEASE What is included in the guidance: • Retention of existing customers with organic usage growth consistent with historical levels • New customer growth consistent with historical levels • Contracted
Slide 34: Global revenues received in a mix of key currencies
Global revenues received in a mix of keyCONFIDENTIALcurrencies DRAFT 2208 11AM NOT FOR RELEASE Revenues protected with effective natural hedge and external arrangements • 75% of FY17 revenue in non-AUD, as expected, FX rates v AUD FY17 FY18 slightly lower rate than Actual Guidance FY16 GBP 0.59 0.60
Slide 35: Overview of revenue licensing models, drivers and platform
Overview of revenue licensing models, drivers CONFIDENTIAL and platform DRAFT 2208 11AM NOT FOR RELEASE Customers in transition to “On-Demand”, ultimately move to transaction-based licensing (1) Represents percentage of FY17 total revenue. (2) Mainly comprises additional services such as e-Services
Slide 36: Product commercialisation and monetisation processes and timeline
CONFIDENTIAL Product commercialisation and monetisation processes andDRAFT timeline2208 11AM NOT FOR RELEASE Rich ideation Innovation cycle Rapid commercialisation Grow usage & revenue Industry expert teams solve Product leads + architects leverage global data, across sectors and Global platform ava
Slide 37: Capitalised development and amortisation
Capitalised development and amortisation CONFIDENTIAL DRAFT 2208 11AM NOT High innovation to commercialisation ratio – product designed for CW1FOR RELEASE platform + customer base • Capitalised development comprises: - In development – labour and overhead costs relating to the development of new mod
Slide 38: Employees
Employees CONFIDENTIAL DRAFT 2208 11AM NOT FORactivities >730 employees; over half our workforce focused on product development RELEASE Growth in full time employees Employees by function Employees by region (# of full time employees) (%, as at 30 June 2017) (%, as at 30 June 2017) 137 General and E
Slide 39: Income statement
CONFIDENTIAL DRAFT 2208 11AM Income statement NOT FOR RELEASE $ million Pro forma FY15 PF FY16 PF FY17 On-Demand 56.9 86.2 127.3 OTL maintenance 20.0 15.4 15.1 OTL & support services 2.7 1.7 11.4 Total revenue 79.6 103.3 153.8 Cost of revenues (12.9) (13.1) (22.7) Gross profit 66.7 90.2 131.1 Operat
Slide 40: Key operating metrics
CONFIDENTIAL DRAFT 2208 11AM Key operating metrics NOT FOR RELEASE $ million Pro forma FY15PF FY16PF FY17 Revenue Growth 21% 30% 49% On Demand Revenue % 71% 83% 83% Recurring Revenue % 97% 98% 93% Gross profit margin % 84% 87% 85% Product design and development as % of total revenue 21% 20% 18% Sale
Slide 41: Reconciliation from statutory to pro forma income statement
CONFIDENTIAL DRAFT 2208 11AM Reconciliation from statutory to pro forma income statement NOT FOR RELEASE $ million Note(1) FY13 FY14 FY15 FY16 Statutory revenue 43.0 56.7 70.0 102.8 Net impact of acquisitions 1 8.9 9.3 9.6 0.5 Pro forma revenue 51.9 66.0 79.6 103.3 Statutory NPAT from continuing 3.7
Slide 42: Notes to pro forma adjustments
CONFIDENTIAL DRAFT 2208 11AM Notes to pro forma adjustments NOT FOR RELEASE Summary of pro forma adjustments 1. Represents the pro forma impact of acquisitions as presented in the Prospectus and adjustments for FY16 to remove the impact of CCN for May and June 2016. 2. Represents costs associated wi
Slide 43: Reconciliation of statutory operating cash flow to statutory cash flow
CONFIDENTIAL DRAFT 2208 11AM Reconciliation of statutory operating cash flow to statutory cash flow NOT FOR RELEASE $ million FY16 FY17 • Payments for intangibles include EBITDA 15.8 53.9 $21.3m capitalised development, Non-cash items in EBITDA 9.2 5.4 $0.6m relating to software licences Changes in
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