Straker Ltd · ASX:STG
Straker — Investor Presentation (June 2021)
28 slides from Straker's investor presentation, Jun 2, 2021
Slide 1: Capital Raise Presentation
Capital Raise Presentation 2 June 2021
Slide 2: Disclaimer
Disclaimer This presentation, including any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries (Information) (together, the Presentation), is dated 2 June 2021 and has been prepared and is being distributed by Straker
Slide 3: Overview
Overview ▪ Revenue for the year to the end of March 2021 rose 13% to $31.3 million ‒ gains from acquisitions ‒ impact of Covid-19 disruptions to sales FY21 full year 2 ▪ On a proforma basis, unaudited revenue greater than $41 million for FY21 results1 ▪ Lingotek acquisition contributed $1.9 million
Slide 4: Straker today
Straker today
Slide 5: What we do
What we do Straker uses its industry leading AI driven technology to provide translation and localisation services to some of the largest enterprise customers in the world ▪ Global reach with 200+ staff and offices in 8 countries ▪ Proven enterprise solution ▪ Increasing proportion of revenue on Saa
Slide 6: USD$57 billion market opportunity
1 USD$57 billion market opportunity Innovation index Scale zone Optimal zone Straker operates in an 40 larger LSPs with global Technology and scale industry estimated at coverage but 1 lacking USD$57 billion and innovation Revenue has the technology, Tech zone Dying zone business model and reach to
Slide 7: Our customers
Our customers Straker offering: A fully integrated, A.I driven automated system Customer type1 for the management and provision of timely and accurate translation services using single or Straker offering: multi vendors A value offering providing fast, easy and accurate services translation 21% SME
Slide 8: Revenue growth
Revenue growth Revenue ($m) (FY16A to FY22E) ▪ Straker has continued to grow revenue and scale > 50.0 ‒ combination of organic and inorganic strategies CAGR2 30% ▪ FY21 Covid-19 affected but ended strongly with the LingoTek and IBM deals having an 31.3 impact in Q4 IPO year 27.7 ▪ FY22E revenues are
Slide 9: Our revenue
Our revenue Revenue concentration Revenue from repeat customers 9% 11% 7% 16% 17% 45% 23% At IPO1 53% Today2 23% 21% 78% Revenue by industry5 84% 16% 14% 33% 29% 7% 7% At IPO1 Today2 12% 16% 13% At IPO1 Today 2 32% 34% SaaS Repeat revenue3 New revenue 4 Note: Revenue splits represents order split an
Slide 10: World Class Growth Team Across a Global Network
World Class Growth Team Across a Global Network Felix Donoso Erik Mulder GM IBM Account Business Development Director EMEA Amaya Montoya Previous Previous GM Sales EMEA MSS - CEO CCO – Livewords (largest Dutch LSP) Previous Seprotech (largest Spanish LSP) - Reports to: David Sowerby (Chief Revenue O
Slide 11: Growth strategies
Growth strategies
Slide 12: Growth strategies
Growth strategies 1 2 Capitalising on IBM opportunity Enhancing SaaS offering for and targeting other enterprise enterprise customers customers 3 4 Increasing share of existing Continuing active acquisition customer spend strategy 12
Slide 13: 1. IBM integration
1. IBM integration ▪ Straker signed a transformational strategic partnership with IBM in November 2020 ‒ directly integrates Straker’s AI-powered RAY platform with IBM’s internal technology platforms ‒ extended relationship from one language (Spanish) to 55 and now 75 ▪ Validates Straker’s AI platfo
Slide 14: 2. Enhancing SaaS platform
2. Enhancing SaaS platform TMS Revenue Language Revenue $1 ~$5 to $10 ▪ The LingoTek acquisition provided Straker with a SaaS based translation management system (TMS) ▪ TMS is a ‘gateway’ product for language revenue ‒ estimated that every $1 of TMS spend can Translation convert to ~$5 to $10 of la
Slide 15: 3. Increase share of customer spend
3. Increase share of customer spend Manufacturing, FMGC, Technology, e-commerce & Financial & professional Education and government Other engineering & construction media services Existing services customers Various government organisations and agencies Existing subscription customers FY21 revenue 2
Slide 16: 4. Continue acquisition strategy
4. Continue acquisition strategy Acquisitions provide accelerated access to enterprise customers Acquisition Country Customers Eurotext Ireland Strong pipeline of acquisition opportunities Elanex USA In advanced discussions with a MSS’ and ‘Eule’ Spain and Germany number of potential acquisitions ‘C
Slide 17: Equity raising
Equity raising
Slide 18: Sources and uses of equity raising proceeds
Sources and uses of equity raising proceeds Sources $m Pro forma Balance Sheet as at 31 March 2021 Equity raise 21.31 Pro forma balance $ millions (unless otherwise stated) STG (FY21A2) Impact of the Offer sheet Cash 7.2 11.9 19.1 Total sources 21.3 Total assets 45.8 11.9 57.7 Borrowings 8.4 (8.4) -
Slide 19: Overview of equity raising
Overview of equity raising ▪ ~AUD$20 million fully underwritten Equity Raising, including: Offer structure − ~AUD$10 million Placement − ~AUD$10 million 1 for 10.32 accelerated pro-rata non-renounceable entitlement offer ▪ Approximately 10.5 million new ordinary shares (New Shares) ▪ All shares unde
Slide 20: Offer timetable
Offer timetable Event Date (2021)(1) Trading halt and announcement of Equity Raising, Placement and Institutional Entitlement Offer opens Wednesday, 2 June Institutional Entitlement Offer closes 11:00am (AEST), Thursday, 3 June Placement closes 3:00pm (AEST), Thursday, 3 June Trading halt lifted – s
Slide 21: Appendix A Key risks
Appendix A Key risks
Slide 22: Selected key risks
Selected key risks Straker key risks A number of risks and uncertainties, which are both specific to Straker and of a more general nature, may affect the future operating and financial performance of Straker and the value of its shares. This section describes some, but not all, of the key risks asso
Slide 23: Selected key risks (cont.)
Selected key risks (cont.) Equity raising and general risks Share price volatility The value of securities can be expected to fluctuate depending on various factors including the general condition of the Australian economy, general worldwide economic and political conditions, changes in government p
Slide 24: Appendix B Foreign selling jurisdictions
Appendix B Foreign selling jurisdictions
Slide 25: Foreign jurisdiction disclaimers
Foreign jurisdiction disclaimers This document does not constitute an offer of New Shares in any jurisdiction in which it you are not an investor falling within one of these categories, please return this document securities laws of any state or jurisdiction of the United States. Accordingly, the se
Slide 26: Appendix C Underwriting Agreement
Appendix C Underwriting Agreement
Slide 27: Key terms of the underwriting agreement
Key terms of the underwriting agreement 1. Conditions • (ASIC action) ASIC: Bell Potter Securities Limited ACN 006 390 772 and Ord Minnett Limited ACN 002 733 048 (Underwriters) are acting as joint lead manager, bookrunner and • applies for an order under Part 9.5 of the Corporations Act 2001 (Cth)
Slide 28: Key terms of the underwriting agreement
Key terms of the underwriting agreement 3. Termination events qualified by materiality • (Disruption in financial markets) Any of the following occurs: Each of the Underwriters may at any time prior to 11:00am on the Settlement date of the Retail Entitlement Offer, by notice given to Straker and wit