Slide 1: Booking.com Agreement, Capital Raise and Booking Holdings Investment
For personal use only serko Booking.com Agreement, Capital Raise and Booking Holdings Investment 24 October 2019
Slide 2: Disclaimer
DISCLAIMER For personal use only • This presentation has been prepared by Serko Limited. All information is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise. • Information in this presentation is for general information
Slide 3: Contents
For personal use only CONTENTS Appendix: Booking.com Capital Raising Half Year Supporting Agreement Overview Update Information 3 |
Slide 4: Booking.com Agreement & Investment, Capital Raise
BOOKING.COM AGREEMENT & INVESTMENT, CAPITAL RAISE For personal use only Serko’s partner network is integral to its strategy of rolling out its leading-edge technology globally and increasing Average Revenue Per Booking (“ARPB”) by increasing the content available to its travel management resellers a
Slide 5: Serko Strategic Goal $100 Million Per Annum
SERKO STRATEGIC GOAL $100 MILLION PER ANNUM For personal use only $100 million Booking.com Booking.comagreement is expected agreement is expectedto to assist Serko assist Serkoinin achieving it’s medium-term achieving its medium-term aspirational aspirationaltarget 1 1of target of NZ$100 million NZ$
Slide 6: Agreement with Booking.com
For personal use only Agreement with Booking.com
Slide 7: Agreement with Booking.com
AGREEMENT WITH BOOKING.COM • Concurrent with Holdings’ cornerstone investment in Serko, Booking.com has signed commitments to expand its existing agreement with Serko For personal use only Zeno, so that Booking.com can offer and promote Serko Zeno to its business traveller customers. • The expanded
Slide 8: About Booking Holdings
ABOUT BOOKING HOLDINGS For personal use only • Booking Holdings (“Holdings”) (NASDAQ: BKNG) is the world leader in online travel and related services, provided to customers and partners in over 230 countries and territories • Holdings employs more than 26,500 people across more than 300 offices in o
Slide 9: Capital Raising Overview
For personal use only Capital Raising Overview
Slide 10: Capital Raising Overview
CAPITAL RAISING OVERVIEW • Serko is undertaking a NZ$56 million Placement, together with a Share Purchase Plan of up to NZ$5 million For personal use only • The underwritten Placement at NZ$4.04 per share comprises: • A primary placement of NZ$40 million newly issued ordinary shares1 equating to app
Slide 11: Use of Proceeds
USE OF PROCEEDS For personal use only • The funds from the Capital Raising will be used to: • Accelerate the provisioning of Serko Zeno into North America and continental Europe • Deliver expanded content channels across the global travel management company (“TMC”) reseller community • Increase the
Slide 12: Timeline
TIMELINE Key dates For personal use only Offer announcement Thursday, 24 October 2019 Placement Conduct underwritten placement Thursday, 24 October 2019 Trading halt on NZX and ASX Thursday, 24 October 2019 Announce completion and resume trading Friday, 25 October 2019 Settlement on the ASX Tuesday,
Slide 13: Half Year Update
For personal use only Half Year Update The FY20 Half Year Results to 30 September 2019 are unaudited, and have been prepared on the basis of Serko’s management accounts. This FY20 half year results update is not a ‘Results Announcement’ for the purposes of the NZX Listing Rules and i s provided for
Slide 14: Performance Dashboard – Half Year FY20
PERFORMANCE DASHBOARD – Half Year FY20* For personal use only FY20 (H1) VS FY19 (H1) - Unaudited* PROFIT (LOSS) REVENUE ACTIVITY COSTS ($0.8m) 29% 38% 29% 35% 4.5% 132% 46% NET LOSS AFTER OPERATING RECURRING TOTAL PEAK ATMR3 TRAVEL R&D COSTS4 OPERATING TAX REVENUE REVENUE2 INCOME BOOKINGS EXPENSES $
Slide 15: Net Profit Summary / EBITDAF Reconciliation
NET PROFIT SUMMARY/ EBITDAF RECONCILATION For personal use only Net Profit Summary H1 FY20 H1 FY19 change change FY2019 6 months 6 months 12 months EBITDAF Reconciliation $000 $000 $000 % $000 • Operating Revenue of $14.7m Operating Revenue 14,671 11,350 3,321 29% 23,361 up 29% Other income (includi
Slide 16: Revenue Analysis
REVENUE ANALYSIS H1 FY20 H1 FY19 FY2019 Revenue and Other Income change change 6 months For personal use only 6 months 12 months by Type $000 $000 $000 % $000 • Recurring revenue up 38% Travel platform revenue 9,243 7,721 1,522 20% 15,948 • Travel platform revenue up 20% Expense platform revenue 2,9
Slide 17: Operating Expenses
OPERATING EXPENSES For personal use only • Operating Costs increased as a Operating Expenses H1 FY20 H1 FY19 change change FY2019 6 months 6 months 12 months result of increased head count and $000 $000 $000 % $000 costs associated with expansion into NORAM markets and include InterplX operating cos
Slide 18: Research & Development
RESEARCH & DEVELOPMENT For personal use only R&D Costs – Expensed H1 FY20 H1 FY19 change change FY2019 6 months 6 months 12 months $000 $000 $000 % $000 • Total R&D costs increased by $5.1m over prior year due to Total R&D costs (including amounts capitalised) 8,921 3,843 5,078 132% 9,165 investment
Slide 19: Other Strategic Updates
OTHER STRATEGIC UPDATES For personal use only • Serko is currently in advanced commercial discussions with a global payments provider to provide a white label version of Serko Zeno to its SME customers, initially in Australasia, with the potential to offer in additional geographies in the future. Co
Slide 20: FY20 Outlook
FY20 OUTLOOK For personal use only • Total Operating Revenue Growth for the full year is expected to be in the range of 20%-40%. However, currency fluctuations and the timing of customer onboarding will be key factors in determining the final result, as previously advised to the market. • In Austral
Slide 21: Appendix: Supporting Information
For personal use only Appendix: - Supporting Information
Slide 22: Company Snapshot
For personal use only Company Snapshot
Slide 23: About Serko
ABOUT SERKO FOUNDED IN 2007 For personal use only Innovative Solutions Market Leader NZX/ASX Listed Serko is a technology company focused on Serko is a leading supplier of travel Serko listed on the New Zealand stock innovative solutions that address the technology solutions for TMCs in Australasia
Slide 24: Serko Products
SERKO PRODUCTS For personal use only Zeno Travel Zeno Expense Zeno Travel is an Online Zeno Expense automates Booking Tool (OBT) that the process of corporate corporate travellers use to card and out-of-pocket book flights, trains, hotels, expense submission, rental cars and airport reconciliation a
Slide 25: Serko Strategy
SERKO STRATEGY Offer premium, integrated global solutions For personal use only Grow ARPB by offering Expand into new territories increased content and moving through strategic alliances and customers to Zeno reach the unserved SME market ARPB : Average Revenue Per Booking is a non-GAAP measure. 25
Slide 26: Commercial Model
COMMERCIAL MODEL For personal use only $ Corporate traveller makes a Booking and other fees booking via Serko Serko charges the TMCs a fee per booking Online/Zeno (which varies based on volume). $ Traveller submits receipts Monthly user fee Year Ended 31 March 2019 using Serko Expense/Zeno Serko Exp
Slide 27: Performance Dashboard – Full Year FY19
PERFORMANCE DASHBOARD – Full Year FY19 For personal use only FY19 VS FY18 PROFIT (LOSS) REVENUE ACTIVITY COSTS $1.6m 28% 26% 28% 41% 17% 87% 32% NET PROFIT OPERATING RECURRING TOTAL PEAK ATMR3 ONLINE R&D COSTS4 OPERATING AFTER TAX REVENUE REVENUE2 INCOME BOOKINGS EXPENSES $2.6m $23.4m $20.7m $24.6m
Slide 28: Historic Measures
HISTORIC MEASURES for financial years (31 March) For personal use only Selected Operational Metrics FY13 FY14 FY15 FY16 FY17 FY18 FY19 Total revenue growth (%) 27% 39% 55% 27% 9%# 28% 28% Revenue growth – Travel Platforms (%) 41% 12% 62% 49% 8% 23% 20% Total travel booking transactions (000s) 987 1,
Slide 29: Definitions
DEFINITIONS For personal use only • Peak ATMR (Annualised Transactional Monthly Revenue) is a non-GAAP measure. Serko uses this as a useful indicator of recurring revenues from Serko products. It is calculated by annualising the combination travel and expense platform monthly revenues for the most r
Slide 30: Thank you
For personal use only Thank you