Connexion Mobility Ltd · ASX:CXZ
Connexion Mobility — Shareholder Meeting (October 2024)
33 slides from Connexion Mobility's shareholder meeting presentation, Oct 17, 2024
Slide 1: 2024 Annual General Meeting presentation
ASX Announcement 17 October 2024 2024 Annual General Meeting presentation Melbourne Australia: Connexion Mobility Ltd (“Connexion” or “the Company”) provides the attached presentation to be delivered to shareholders at the Company’s 2024 Annual General Meeting presentation to be held at 10:00am (AED
Slide 2: Mobility Platform 2024 Annual General Meeting
Mobility Platform 2024 Annual General Meeting
Slide 3: Agenda
Agenda 1 Introduction GROUP AGM PRESENTATION OCTOBER 2024 2 Industry 3 Product & Growth 4 FY24 Results 5 Outlook 6 Q&A 2
Slide 4: Introduction
Introduction Connexion Mobility is an enterprise-grade software company servicing the US automotive industry. Our proprietary OnTRAC and Connexion platforms incorporate telemetry, fleet management, contract management, data analytics, and more, to deliver mobility solutions to automotive OEMs and de
Slide 5: Customer Landscape
Customer Landscape • Fleet Owners mostly operate mixed commercial fleets • Connexion focuses on a specific type of fleet owner - the Franchised Automotive Dealership (franchisee) and Manufacturer (franchisor) • The US is home to circa 17,000 franchised dealerships OEM Group US Rooftops - approx. Gen
Slide 6: Navigating Industry Trends
Navigating Industry Trends The Connexion to the Future Connexion partners with OEMs and Dealerships to maximise the utilisation of their assets, the profitability of their business units, and to elevate the end-customer experience. This combination is only possible through Connexion’s harnessing of
Slide 7: Product Portfolio
Product Portfolio SHUTTLE COURTESY RENTAL MOBILE PAID RENTAL SERVICE One Platform, Moving People, Parts, and Vehicles LOT & FLEET RIDEHAIL MANAGEMENT PICK-UP & TEST DRIVES DELIVERY 6
Slide 8: Current State For OEMs
Current State For OEMs OEM Courtesy Rental 7
Slide 9: Current State For OEMs
Current State For OEMs OEM Courtesy Rental Mobile Service Ridehail Lot & Fleet Management Pick-up & Delivery Shuttle Test Drive Paid Rental 8
Slide 10: Current State For OEMs
Current State For OEMs OEM Courtesy Rental Mobile Service Ridehail Lot & Fleet Management Pick-up & Delivery Shuttle Test Drive Paid Rental 9
Slide 11: Future State For OEMs
Future State For OEMs OEM Connexion Platform Courtesy Rental Mobile Service Ridehail Lot & Fleet Management Pick-up & Delivery Shuttle Test Drive Paid Rental 10
Slide 12: Future State For OEMs: Flexibility
Future State For OEMs FLEXIBILITY Innovate Rapidly iterate on new features and products Customise Dedicated Engineering & Operational Team enables OEM & Group-level customisations Gain Insight Customised reporting, analytics, and simplified integration with open APIs 11
Slide 13: Connexion empowers OEMs to…
Future State For OEMs Connexion empowers OEMs to… Consolidate Simplify Audits Reduce management & reporting friction via a Significantly reduce audit costs for single platform for all modes of transportation loaner program compliance Observe Gain Insight Gain visibility into Dealer & End-Customer Co
Slide 14: Future State For Dealers: Marketplace
Future State For Dealers MARKETPLACE Upgrade Instant integration with leading solutions, including DMS, schedulers, OTAs, payments & much more Explore Discover the latest Automotive Retail technology Improve process, save time and increase CSI for little or even no cost 13
Slide 15: Connexion empowers Dealers to…
Future State For Dealers Connexion empowers Dealers to… Consolidate Focus Reduce management & reporting friction via a Boost front-line Staff efficiency single platform for all modes of transportation and engagement with fewer systems Observe Reduce Cost Gain visibility into End-Customer activities
Slide 16: Product Strategy
In Development Product Strategy Future Development Connexion Platform Marketplace B2B Rental Shuttle Ridehail Customer Mobile Loaner Paid Shuttle Service Connexion B2C Rental Multi-Year Endeavour, Higher Risk 15
Slide 17: Marketplace
Marketplace By building the largest set of dealership customers, we become increasingly attractive to other automotive software vendors wishing to gain access to this potential customer base. The increased potential scale of each partnership also means greater incentive to build more value into an I
Slide 18: Marketplace
Marketplace Marketplace economics will be a key driver of long-term financial performance Product 1 2 3 4 5 6 7 8 9 10 Integrated Product price % revenue share to Connexion Number of eligible Customers % capture of eligible Customers Gross Profit to Connexion % reduction in churn % increase in netwo
Slide 19: User Engagement
User Engagement High General Manager Moderate Little/none Finance Fixed Ops Variable Ops Director Director Today, Connexion has >13,000 Monthly Active Users across the Fixed Ops (“Service”) side of ~4,000 dealerships. Service Parts Sales F&I Manager Our opportunity is large, with these dealerships c
Slide 20: Growth Pursuit
Growth Pursuit TSR Internal 10-20 Target* % > Long-term Shareholder Value S&P ASX All Technology index Objective Key Result Size Sustainability Diversification Grow… Of EPS Of EPS Of EPS Grow… EPS AMRR Non-GM-Loaner AMRR by 20-30% Internal Target* by $937k-1,875k Internal Target* by $540-720k Intern
Slide 21: FY24 Operational Performance
FY24 Operational Performance Achievements Challenges Lessons & Next Steps 1. Significantly expanded Engineering & Product teams 1. Trailing internal targets for external OEM and Dealer sales 1. For internal dealer sales, we have found an opportunity with minimal productivity disruption or turnover 2
Slide 22: FY24 Results
FY24 Results 21
Slide 23: Key Trends
Key Trends Financially, four key trends drove our FY24 results: 1. Revenue growth from larger new vehicle inventories 2. Revenue growth from Connexion subscriptions 3. Revenue growth from feature delivery 4. Expenditure growth from reinvestment into our Team and Products 22
Slide 24: FY24 Highlights
FY24 Highlights Revenue* Cash & Liquid Investments $10,000,000 $5,000,000 $8,000,000 $4,000,000 $6,000,000 $3,000,000 $4,000,000 $2,000,000 $2,000,000 $1,000,000 Our P&L exhibits the strong operating leverage $- $- typical of an early-stage SaaS company, offset by FY21 FY22 FY23 FY24 FY21 FY22 FY23
Slide 25: Net Profit Before Tax
Net Profit Before Tax Annual Profit before Tax $6,500,000 FY23 - FY24 $6,000,000 +363k +132k $5,500,000 +1,804k $5,000,000 -877k $4,500,000 $4,000,000 +912k -1,140k $3,500,000 -334k $3,000,000 -657k $2,500,000 -137k 2,663k 2,596k $2,000,000 FY23 Subscription Subscription Fixed-dollar SaaS Service Re
Slide 26: Investment Initiatives
Investment Initiatives Growth Expense $1,000,000 45% $900,000 40% Connexion is investing meaningfully into both R&D $800,000 35% and Sales & Marketing, whilst closely monitoring the $700,000 return on this spend. 30% $600,000 25% In FY24, total Growth Expense was $3,281k, an 81.6% $500,000 increase
Slide 27: Diluted EPS and Gross Profit
Diluted EPS (USD cents) Diluted EPS and Gross Profit 0.20 0.18 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 Following Shareholder feedback, and as announced - to the ASX on 19 July 2024, Management will now FY21 FY22 FY23 FY24 replace the publishing of RGS and DMEPS in favour of Diluted Earnings Per Shar
Slide 28: True SaaS
Revenue Split True SaaS 100% 90% 10% 12% 13% 17% 8% 10% 10% 8% 8% 11% 9% 11% 80% 70% 60% 50% 90% 92% 90% 90% 92% 92% 89% 91% 89% 88% 87% 40% 83% 30% Connexion’s prime focus continues to be growing 20% the scalable, SaaS component of its business. 10% 0% This focus is reflected in the high percentage
Slide 29: Marketplace
Marketplace Monthly Marketplace subscriptions 60 50 12 8 40 3 30 4 3 3 20 39 40 37 25 27 24 10 0 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Paid Subscriptions Trial Subscriptions • Launched in H2 FY24, we are growing our Marketplace subscriptions each month, with improving performance. • Internal dea
Slide 30: Capital Management
Capital Management • Long-term Shareholder value is a function of: 1. Operational Management 2. Capital Management • Capital can be allocated to product-based and/or share-based investments. • Our strong balance sheet supports a meaningful allocation to both. • We are actively seeking M&A targets wi
Slide 31: Summary
Summary 2024 AGM AGM PRESENTATION • Seventh consecutive profitable year, with record net cash and investments on balance sheet OCTOBER 2024 • Dealership vehicle inventories continued to recover throughout FY24 • All-time-high quarterly Company revenue reached in the final quarter of FY24 • High earn
Slide 32: Outlook
Outlook We believe Connexion’s outlook to be positive for the following reasons: From our observations, OEMs and dealerships are increasingly adopting software to: 1. Improve the customer experience 2. Drive operational efficiency 3. Reduce risk Connexion’s software: 1. Delivers on each of the above
Slide 33: Shareholder Q&A
Mobility Platform Shareholder Q&A
Connexion Mobility — Shareholder Meeting (October 2024) on 6ix