Slide 1: Serko Limited $15m Equity Raising
Serko Limited $15m Equity Raising, 7 August 2018 1
Slide 2: Disclaimer
DISCLAIMER • 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 purposes only, and do
Slide 3: Agenda
AGENDA • Company snapshot • Equity raising overview • Appendix: FY18 result 3
Slide 4: Company Snapshot
COMPANY SNAPSHOT 4
Slide 5: About Serko
ABOUT SERKO • Serko provides innovative cloud based corporate travel and expense technology solutions. • Founded in 2007 by Darrin Grafton and Robert Shaw, Serko listed on the New Zealand stock exchange in June 2014, and more recently in June 2018, has listed as a foreign exempt listing on the Austr
Slide 6: Our Product Suite
OUR PRODUCT SUITE serko expense mobile Zeno is Serko’s next Serko Online is an online Serko Expense is an online Serko Mobile is a generation travel booking tool for corporates expense management solution purpose-built mobile app for management application, to book and manage airlines, that enables
Slide 7: Our Strategy
OUR STRATEGY ARPB : Average Revenue Per Booking is a non-GAAP measure. 7
Slide 8: Strategic Update
STRATEGIC UPDATE • Agreements have been entered into that enable ~65% of current transactional volume (based on 30 June 2018 quarter transactions) to switch from Serko Online to Zeno. • Serko announced Orbit World Travel (House of Travel) as a new TMC reseller on 4th July 2018. • ATPI UK is now oper
Slide 9: Strong Track Record of Growth
STRONG TRACK RECORD OF GROWTH Selected Operational Metrics FY13 FY14 FY15 FY16 FY17 FY18 Total revenue growth (%) 27% 39% 55% 27% 9% 28% Revenue growth – Serko Online (%) 41% 12% 62% 49% 8% 23% Operating costs (excl depreciation & amortisation) (% change) 35% 62% 105% 13% (10%) (5%) No of transactio
Slide 10: Outlook for FY19
OUTLOOK FOR FY19 Growth in Operating Revenue expected to be in 20% - 30% range May ATMR was $18.8m ATMR: Annualised Transactional Monthly Revenue is a non-GAAP measure. Refer to definitions as per slide 20. May 2018 being the most recent non-seasonal month for which data was available at the time of
Slide 11: Equity Raising Overview
EQUITY RAISING OVERVIEW 11
Slide 12: Overview
OVERVIEW • Serko is undertaking an underwritten NZ$15m equity raise via a Placement1. • Approximately 5.5 million shares to be issued (approximately 7.3% of current issued capital) ("New Shares"). • New Shares will rank equally in all respects with SKO's existing ordinary shares from allotment. • Th
Slide 13: Use of Proceeds
USE OF PROCEEDS The equity raising is expected to provide Serko with funds to bolster its working capital position and strengthen its balance sheet, giving greater flexibility to both accelerate organic growth opportunities and execute potential acquisitions including: • Undertaking investments to d
Slide 14: Timetable
TIMETABLE Key Dates Equity raising announcement Tuesday, 7 August Conduct underwritten placement Tuesday, 7 August Trading halt on NZX and ASX Tuesday, 7 August Announce completion and resume trading Wednesday, 8 August Settlement on the ASX Thursday, 9 August Settlement on the NZX Friday, 10 August
Slide 15: Appendix: FY18 Results
APPENDIX: FY18 RESULTS 15
Slide 16: Strong Improvement in All Key Measures
STRONG IMPROVEMENT IN ALL KEY MEASURES PERFORMANCE DASHBOARD (FY18 VS FY17) PROFIT REVENUE ACTIVITY COSTS 28% tINCREASE $2.0m 27% \( 25% \ (24% \( 20% \ ( 16% \( 6% tINCREASE t INCREASE + INCREASE 4 DECREASE 4 DECREASE NET PROFIT OPERATING RECURRING TOTAL PEAK ONLINE R&D COSTS? OPERATING BEFORE TAX
Slide 17: ATMR Rises in Line with Strong Growth
ATMR RISES INLINE WITH STRONG ee GROWTH $18.4m Feb 2018 ONLINE BOOKING (volumes)
Slide 18: Economies of Scale
ECONOMIES OF SCALE 6% +DECREASE OPERATING EXPENSES 16% +DECREASE R&D COSTS Year ended 31 March 2018 2017 change $000 $000 $000 % Remuneration and benefit expenses 11,667 12,285 (618) -5% Selling and marketing expenses 1,258 1,658 (400) -24% Administration expenses 3,692 3,880 (188) -5% Other expense
Slide 19: Maiden EBITDA Profit
MAIDEN PROFIT FY13 FY14 FY15 FY16 EBITDA FY17 FY18 Year ended 31 March 2018 2017 change $000 $000 $000 % Revenue 18,279 14,277 4,002 28% Other income 994 1,092 (98) -9% Total income 19,273 15,369 3,904 25% Operating expenses (17,684) (18,763) 1,079 6% Percentage of operating revenue -97% -131% Net f
Slide 20: Definitions
DEFINITIONS • 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 recent non-seasonal month. T