Gentrack Group Ltd · NZX:GTK
Gentrack — FY2021 Earnings Presentation
22 slides from Gentrack's earnings presentation, Nov 25, 2021
Slide 1: Gentrack Group FY21 Full Year Update
Gentrack Group FY21 Full Year Update 25 November 2021 © Gentrack 2021. All rights reserved.
Slide 2: Disclaimer
Disclaimer 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 statements are based on managem
Slide 3: CEO Commentary
CEO Commentary Gary Miles Chief Executive Officer © Gentrack 2021. All rights reserved.
Slide 4: FY21 Financial Headlines
FY21 Financial Headlines up up up 5.2% 105.7 0.7% 8.8% 89.0 81.9 100.5 81.3 81.8 FY20 FY21 FY20 FY21 FY20 FY21 • EBITDA of $12.7m, up 5.0% from $12.1m in FY20. • Net cash up $9.2m to $26.0m at 30th Sept 2021. • Utilities Revenue up 8.8%: • Strong NRR growth (up 68% to $18.3m) on successful project d
Slide 5: Strategic Growth Pillar: Strong Base
Strategic Growth Pillar 1 Strong Base Very good delivery execution - Delivery quality, efficiency and throughput projects on time and on budget will continue to improve further Strong DSO and unbilled revenue management 7% 3% increased revenue per Customer strategic alignment for Revenue per Cost pe
Slide 6: Strategic Growth Pillars and New Logos
Strategic Growth Pillars 2 and 3 New Logos Strategic and profitable customer relationships Managed Service Growth through continuous delivery of new 7 innovations Generally flat FY20 to New customers $5.6m FY21 revenue position 3 new B2B billing retailer 1 new B2C billing retailer 5 New engagements
Slide 7: Progress on cloud, clean technology
Progress on cloud, clean technology delivering innovation and profitability for a sustainable era Gentrack Cloud for Utilities Customers turning to Faster Renewable Gentrack to partner in order generation switching to drive cloud native, products cleantech innovations. Time based Customer “….togethe
Slide 8: Veovo
Veovo Signs of aviation industry recovery starting to show with passenger numbers up 220% vs 2020 and back to only 50% down on 2019. 4 9 17 New customers Major Projects delivered Customers on SaaS Cloud ü London Gatwick ü Perth ü New York ü All major Passenger Flow ü 3 North American customers ü Lon
Slide 9: The UK Market
The UK Market 9 6 Customer insolvencies Customer insolvencies since beginning of From beginning of FY21 FY17 to end of FY20 • B2C supplier failures in the UK has accelerated due to the global energy crisis and Government enforced price cap. • This week, Bulb went into a special form of administratio
Slide 10: Future opportunity remains strong
Future opportunity remains strong “By 2025, at least 25% of CIS contracts 1.5b+ meters will be awarded to new entrants that incumbent market today will disrupt incumbent vendors offerings” Gartner Great technology Delivery excellence © Gentrack 2021. All rights reserved. 10
Slide 11: Financial Results for the Full Year ending September 2021
Financial Results For the Full Year ending 30 September 2021 James Spence Chief Financial Officer © Gentrack 2021. All rights reserved.
Slide 12: Group Profit and Loss
Group Profit and Loss Group Revenue up 5.2% vs FY20: growth in Utilities Utilities Veovo business driven by new customers and increases from existing customers offsetting revenue TopCustomer reductions Reporting.xlsx in Veovo due to market conditions Costs up 5.2% vs FY20: driven by increased invest
Slide 13: Utilities Revenue Analysis
Utilities Revenue Analysis Utilities Revenue FY20 v FY21 • NRR up 68% to $18.3m driven by project deliveries in UK and Australia. Customers $89.0m converting to recurring revenues in $81.8m Total Revenue FY21/FY22 Up 8.8% on FY20 • ARR growth negatively impacted by ~$4m of previous years' customer l
Slide 14: Utilities - Breakdown of customers
Utilities - Breakdown of customers Geographical FY21 Revenue UK Market Segment FY21 Revenue Client Concentration Top 10 ($54.6m) by Revenue ($89.0m) • Bulb, in special administration in UK, is a top 5 customer • No other top 5 customers in SOLR or on exit path © Gentrack 2021. All rights reserved. 1
Slide 15: Veovo Revenue Analysis
Veovo Revenue Analysis Veovo Revenue FY20 VS FY21 Veovo Revenue by Geography FY21 VS FY201 $18.7m $16.7m Total Revenue Europe Down –10.7% on FY20 Annual Americas Recurring Revenue $11.2m APAC Up 7.7% on FY20 - 67.1% of total Veovo revenue Rest of Committed Monthly Non-contracted the world Non-recurr
Slide 16: Expenditure Analysis
Expenditure Analysis • Personnel costs have increased due to growth in headcount as we invest in Group Costs FY20 v FY21 (NZ$m) growth across the Utilities business NZ$m • Incentive payments including short term cash incentives and longer-term share schemes also a driver of increased personnel costs
Slide 17: Cashflow/Balance Sheet
Cashflow/Balance Sheet EBITDA to Net Cashflow FY21 ($m) 01 30 October September 2020 2021 Cash $19.3m $26.0m Debt $2.5m Nil Net Cash $16.8m $26.0m • Cash generation of $9.2m further strengthening balance sheet • Further improvements in working capital performance • Nil utilisation of $20m debt facil
Slide 18: External Metrics – from Investor Day
External Metrics – from Investor Day NZ$M FY21 FY21 FY24 * 16 June Actuals Target • FY21 Actuals in line with or above guidance provided at ARR (=CRR+TRR) 16 June 2021. R&D spend ~$80m $81.9m >10% CAGR vs FY21 accelerating in FY22. Total Revenue >$100.5m $105.7m +~30% vs FY21 • FY24 targets remain a
Slide 19: Outlook update
Outlook update On 30 September 2021 Gentrack Group Limited (NZX/ASX: GTK) (“Gentrack”) advised that it anticipated an increase in FY22 group revenues vs FY21. Over the intervening 8 weeks we have seen further turbulence in the UK energy market including the recent special administration of Bulb, a t
Slide 20: Q&A
Q&A © Gentrack 2021. All rights reserved. 20
Slide 21: GAAP to Non-GAAP Profit Reconciliation
GAAP to Non-GAAP Profit Reconciliation Full Year Full Year NZ$m 30 Sept 20 30 Sept 21 Audited Audited (31.7) 3.2 Reported net (loss)/profit for the period (GAAP) 0.4 (3.7) Add: Net finance Expense (2.6) 2.4 Add: Income Tax expense 12.4 10.8 Add: Depreciation and amortisation (0.9) 0.0 Add: Revaluati
Slide 22: FY21 on a Constant Currency Basis
FY 21 on a Constant Currency Basis FY'21 Difference vs % NZ$m FY'20 FY'21 Constant FY'20 Currency Revenue 100.5 105.7 107.6 7.1 7.1% Operating Costs 88.4 93.0 95.0 6.6 7.5% EBITDA 12.1 12.7 12.6 0.5 4.1% Statutory NPAT (31.7) 3.2 2.8 34.5 N/A © Gentrack 2021. All rights reserved. 22