Trade Window Holdings Ltd. · NZX:TWL
Trade Window — FY2022 Earnings Presentation
34 slides from Trade Window's earnings presentation, May 2022
Slide 1: Investor presentation: Financial results for year ended 31 March 2022
Investor presentation Financial results for year ended 31 March 2022
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Trade Window Holdings Limited (TradeWindow). 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 info
Slide 3: Agenda
Agenda Highlights 4 Our opportunity 7 Progress against strategy 13 Financial overview 23 Summary and outlook 31 AJ Smith Deidre Campbell CEO & Director Chief Financial Officer Investor presentation 3
Slide 4: Key performance indicators
Key performance indicators $4.9m 454 $712 pm Total Income Customers Average Revenue Per Customer Up 108% (Trading Revenue $3.9m up 136%) Up 331 (organic 20, acquired 311) Down 30% (Organic ARPC up 16%) 50% 94% 51% Customer % of expenses Gross Margin R&D and retention rate Commercialisation Up 14 ppt
Slide 5: Financial summary
Financial summary Strong organic growth, accelerated with targeted acquisitions FY22 FY21 % Change Revenue Trading revenue $3.9m $1.6m 136% Other income $1m $0.7m 42% Total income $4.9m $2.3m 108% Costs Total expenses $14.4m $8.2m 76% Profit (Loss) EBITDA1 ($9.5m) ($5.9m) 63% Net profit (loss) after
Slide 6: Business highlights
Business highlights We’re making solid progress on executing our business strategy • Organic growth has primarily been driven by Customers Product Prodoc sales in New Zealand • 20 new customers in A/NZ • Cube launched • Providing new solutions to existing • 16 mid-market and enterprise • 348 product
Slide 7: Our opportunity
RQ TradeWindow Our opportunity /\/\/\
Slide 8: We're building a global trade platform
We’re building a global trade platform Data supply Data demand Software to capture, Permissioned access to format and aggregate trusted data needed by data to meet trade supply chain partners to compliance requirements deliver their service Investor presentation 8
Slide 9: Digital trade is centre stage
Digital trade is centre stage Market trends have delivered a window of opportunity MACROECONOMIC TRENDS • Supply chain disruption • Inflation • Global skills shortage CUSTOMER DEMAND TRENDS MARKET ENABLING TRENDS • Operational efficiency Digital Trade • Digitalisation and automation Facilitation • E
Slide 10: Our opportunity
Our opportunity TradeTech is an emerging market with initial solutions displacing manual paper-based processes, emails and spreadsheets Demand for food traceability solutions is estimated to be worth $27 billion1 worldwide of which A/NZ and Asia represent 64%2 Cross-sales to date have proven that va
Slide 11: TradeWindow is building for global growth
TradeWindow is building for global growth Medium-term focus on New Zealand, Australia and Asia Where we have customers Team of 901 subject matter experts spanning Remote staff four countries Offices Customer base of 454 organisations across APAC Proven solutions with material revenue streams ISO 900
Slide 12: 450+ organisations use our technology
450+ organisations use our technology Our customers include exporters, importers, freight forwarders and customs brokers Top 10 Customers % of trading revenue Customer base by sector Note, logos don’t correspond to top 10 customers. Investor presentation 12
Slide 13: Progress against our strategy
Progress against our strategy
Slide 14: Our strategy
Our strategy Strategic summary Trusted digital trade facilitation delivered through a global trade platform that connects our customers with their supply chain ecosystem Our vision End-to-end connectivity Our strategic priorities across global supply chains Land Grow Unify People Market penetration
Slide 15: Our product strategy
Our product strategy We’re converging proprietary and acquired solutions into a single global trade platform Suite of solutions Converged solutions Global trade platform Acquire and build key solutions needed to Converge solutions through secure cloud Network of networks that connects all deliver en
Slide 16: A digital connected global trade platform
A digital connected global trade platform Our vision is for a modular platform that consolidates and integrates data, back-end processes, and automates workflow ✓ Common services and architecture patterns • Simplify and standardise the technology stack ✓ Configuration over implementation • Rapid int
Slide 17: Delivering against our strategy
Delivering against our strategy FY22 FY23 and beyond ✓ Further consolidated market leadership in NZ • Build market share in Australia through organic ✓ Commercial launch of Cube in NZ sales focused on mid-market exporters and SME ✓ Entry into the Australian market, winning ‘banner freight forwarders
Slide 18: Delivering against our strategy
Delivering against our strategy FY22 FY23 and beyond ✓ Commercial release of trade contracts, bookings • Converge proprietary and acquired capabilities and new and schedules and origin modules solutions into a single platform Unify ✓ Assimilated acquisitions into TradeWindow’s • Convert legacy solut
Slide 19: Our network in New Zealand has momentum
Our network in New Zealand has momentum Broad range of services provided across the industry in established, growing market Export Our key product offerings in New Zealand Documents • Prodoc is NZ’s #1 export document solution Insights* Certifications • Origin provides a fast turn-around Certificate
Slide 20: Strong foundations established in Australia
Strong foundations established in Australia Focus on accelerating growth in FY23 Export Documents Our key product offerings in Australia Insights* Certifications* • Prodoc is being used by leading seafood and FMCG brands • Origin is being localised for the Australian market • Freight is well positio
Slide 21: Delivering against our strategy
Delivering against our strategy FY22 FY23 and beyond ✓ Acquired Cyberfreight (Freight) • Acquired Rfider (FY23)2 ✓ Acquired SpeEDI Solutions (ExpressFreight1) • Target incumbent software solutions to accelerate Acquire ✓ Acquired FreightLegend entry into new markets • Target adjacent software soluti
Slide 22: Rfider acquisition
Rfider acquisition Post balance date acquisition will extend reach into primary industry supply chains Transaction benefits • Rfider has developed a mobile interface that can be rapidly Transaction summary deployed in complex chains to capture many points of data. • Rfider is an all-in-one solution
Slide 23: Financial overview
RQ TradeWindow Financial overview /\/\/\
Slide 24: Financial performance
Financial performance Trading revenue up 136% driven by organic growth and acquisitions $000s FY22 FY21 Change $ Change % • Trading revenue up 136% to $3.9m, total income up 108% to $4.9m (includes Trading revenue 3,878 1,642 2,236 136% acquisitions) Other income 999 702 297 42% • Employee costs up
Slide 25: Revenue by type and country
Revenue by type and country Subscription + transaction pricing model provides upside opportunity while retaining predictable revenue streams Revenue by type $000 FY22 FY21 Change % • Strong, sustainable revenue through predictable subscription and transaction revenue Transactional 1,622 873 86% • Tr
Slide 26: Average revenue per customer (per month)
Average revenue per customer (per month) Organic ARPC up 16%, newly acquired customers provide cross-sell opportunity Organic business FY22 FY21 Change % • Increased monthly average revenue per customer (ARPC) for organic business – up Subscriber1 customer nos. period end 134 123 9% 16% Ave Subscrib
Slide 27: Operating expenses / staff numbers
Operating expenses / staff numbers Higher expenses reflect planned investment in R&D, commercialisation and organisational capability Employee benefits expense $’000s FY22 FY21 Change $ Change % • Previously signaled investment in headcount to Cost of goods sold 1,485 668 816 122% support growth inc
Slide 28: Financial position
Financial position Capital injection and acquisitions drive lift in total assets $000s FY22 FY21 Change $ Change % Movements Cash up $4.5m to $5.9m. Receivables up $1.3m including IRD R&D Current Assets 7,852 2,023 5,829 288% claims of $1m Non-Current Assets 8,663 4,115 4,548 111% Acquired software
Slide 29: Cashflow
Cashflow Balance date cash and cash equivalents of $5.9m $000s FY22 FY21 Change $ Change % • Balance date cash and cash equivalents of $5.9m, up $4.5m on FY21 Operating Activities • Key activity during the year: Cash Received from Customers 4,040 1,673 2,367 141% − Operating activity: Cash Paid to S
Slide 30: Average revenue per customer by revenue type (per month)
Average revenue per customer by revenue type (per month) FY22 FY21 Predominant brand FY22 FY21 Predominant brand Prodoc/Cube + Installation revenue $000 434 205 Prodoc Transactional revenues $000 1,342 593 Speedi Ave Transactional customer nos. 159 111 Total Install customer numbers 26 15 Ave monthl
Slide 31: Summary and outlook
RQ TradeWindow Summary and outlook /\/\/\
Slide 32: FY23 outlook
FY23 outlook • Clear strategy for FY23 and beyond, focused on continued revenue growth in New Zealand and Australia, alongside the building of a global trade platform. • FY23 trading revenue expected to be within a range of $5.5 million to $7.0 million; with total income between $6.0 million and $7.
Slide 33: Summary
Summary • Strong delivery and momentum on our priorities, including investment for growth. Growth is from new sales and deepening relationships with existing customers. • Global trade is undergoing significant transformation and TradeWindow is well positioned to capitalise on favourable trends. • Tr
Slide 34: Q&A
RQ TradeWindow Q&A /\/\/\