Straker Ltd · ASX:STG
Straker — Straker Translations — Investor Presentation (April 2019)
20 slides from Straker's investor presentation, Apr 9, 2019
Slide 1: ASX Investor Day
Contact For personal use only ASX Investor Day Straker Translations (ASX.STG) April 2019 1
Slide 2: Straker is a world leading AI data driven language translation platform
For personal use only Straker is a world leading AI data driven language translation platform powering the global growth of businesses 2
Slide 3: The Problem
THE PROBLEM For personal use only Global content is expanding at an exponential Content is moving into rate and traditional online systems and translation processes cannot customers need solutions to deliver at scale for customers automate the content flow for translatable content It’s easy for compa
Slide 4: What We Do
WHAT WE DO For personal use only Straker helps leading Straker helps major technology companies finance institutions streamline and scale the deliver quarterly market ability to communicate reports in multiple across regions languages Straker works with major e-commerce providers to Straker enables g
Slide 5: The Industry We Operate In
THE INDUSTRY WE OPERATE IN 70 For personal use only 66B Industry Size USD$ 56B 52.5 Forecast to reach 66 Billion by 2022 47B 43B 2018 - 2022 CAGR 7%* 40B 35 37B 35B 33B The translation industry facilities trillions of dollars of 17.5 global trade annually 0B 0 2013 2014 2015 2016 2017 2018 2021 2022
Slide 6: Where We Do It
For personal use only WHERE WE DO IT UK/Europe North America 76 Staff 49% Revenue Asia 14 Staff 6 Staff 37% Revenue 2% Revenue Australasia 38 Staff 12% Revenue Straker Group Revenue by region post COM acquisition 6
Slide 7: How We Do It
HOW WE DO IT We have a built a unique technology platform (RAY Ai) to leverage the advances in A.I and For personal use only big data to give us a strong competitive advantage in the US$47 billion translation industry. A.I Data driven Automation of the translation process Crowd of more than Global s
Slide 8: Revolutionary Data-Driven Platform
REVOLUTIONARY DATA-DRIVEN PLATFORM For personal use only Data-driven Data-driven Data-driven Data-driven Data-driven Speed Quality Production value security Using big data to Rather than process Using data to Being able to offer Using data to train machine driven quality streamline the alternative pr
Slide 9: What Success Has Proven
WHAT SUCCESS HAS PROVEN For personal use only In 2011 we were the first company to develop a data driven approach to translation. We have redefined how the translation process works and aligned it to the business requirements of today Unique Variable cost solutions that 83% of revenue Industry High so
Slide 10: Company History
COMPANY HISTORY Acquired For personal use only *$NZD FY19 Forecast Pro-forma Revenue COM $24.9m* IPO Acquired Acquired MSS Elanex Bailador Acquired Investment EULE Acquired $11.8m Eurotext Barcelona Technology Company production $8m centre Multi-lingual Google driven Content Management growth $3m So
Slide 11: Strong Growth Continues
STRONG GROWTH CONTINUES H1 Results (April - Sept 2018) Prospectus Actual For personal use only 27 24 39% 83% 22 year on year growth repeat revenue 19 16 14 $110k 42% 11 8 adjusted EBITDA Increase in gross profit 5 3 0 $13.4m April September March pro-forma revenue Group Revenues FY19 11
Slide 12: Operating Cash Flow Positive with $20M Cash at Bank
OPERATING CASH FLOW POSITIVE WITH $20M CASH AT BANK 4C Results (Oct - Dec 2018 quarter) Repeat New For personal use only Pro-forma New v Repeat Revenue $270k $19.8m 14 operating cash 2.3 Cash at bank 31.3% flow positive 1.8 10.5 11.5% 11.1 10 $6.8m $17.6m NZDm 7 cash collections in Q3 Year to date co
Slide 13: Our Growth Strategy
OUR GROWTH STRATEGY Five Point Growth Strategy For personal use only Winning new Increased Transactional Integration into enterprise penetration with Acquisitions Revenue content platforms customers existing customers Straker raised funds at its October 2018 IPO to continue its inorganic growth stra
Slide 14: Organic Growth
ORGANIC GROWTH For personal use only Winning new Transactional Integration into enterprise customers revenue content platforms • Secure large volume • Directly market to enterprise customers • Provides cash flow benefits platforms’ broad customer • Drives smaller jobs that bases • Straker invested in
Slide 15: Acquisition Opportunity
ACQUISITION OPPORTUNITY For personal use only Fragmented Industry Increase EBITDA % Templated Acquisition Structure Language services market revenue – over 18,500 language service providers • Improve the target’s gross • Compounding gains on margins each acquisition Top 100 service providers = 15% i
Slide 16: Successful Acquisitions
SUCCESSFUL ACQUISITIONS For personal use only FY17 FY18 FY19 Price EBITDA Margin % EuroText 8% 13% 22% Average price of an acquisition is Elanex -6% 8% 22% ~0.8 x revenue 16
Slide 17: Overview of COM Translations
OVERVIEW OF COM TRANSLATIONS Founded in 2011 COM Translations provides media and audio-visual For personal use only translations services to the media industry •Major media companies •Public companies Typical Industries •Film studios •Training organisations •Post production houses Audio & Visual Tra
Slide 18: In Summary
IN SUMMARY • Huge US$47 billion addressable market opportunity For personal use only Huge Global TAM • Industry is growing at over 7% pa • Artificial Intelligence driven platform using more than 500 billion data points Unique Technology • Proprietary “RAY Ai Translation Platform” • Enterprise grade,
Slide 19: Disclosure Statement
Disclosure Statement This presentation is given on behalf of Straker Translations Limited ASX:STG (Company number NZ: 1008867 / AU: ARBN 628 707 399) For personal use only Information in this presentation: • Is for general information purposes only, and is not an offer or invitation for All informati
Slide 20: Contact
Contact For personal use only www.strakertranslations.com Grant Straker CEO grant@strakergroup.com Ronn Bechler Market Eye ronn.bechler@marketeye.com.au 20
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