Slide 1: WiseTech Global 1H24 results investor presentation
ASX Announcement: 2024/11 21 February 2024 WiseTech Global 1H24 results investor presentation Attached is the 1H24 results investor presentation for the half-year ended 31 December 2023. //ENDS Authorized for release to ASX by David Rippon, Corporate Governance Executive and Company Secretary. Conta
Slide 2: 1H24 Results
1H24 Results © 2024 WiseTech Global
Slide 3: Our vision and mission
Our vision Our mission To be the operating system To create breakthrough products that for global logistics. enable and empower those that own and operate the supply chains of the world. © 2024 WiseTech Global
Slide 4: Agenda
Agenda 1 H 24 1 H 24 F IN AN CIAL S TR ATE G Y & Q & A AP P E N DICE S H IG H LIG H TS RE V IE W O U TL O O K © 2024 WiseTech Global
Slide 5: 1H24 highlights
Draft – Subject to KPMG review SECTION 01 REPLACE IMAGE 1H24 highlights RICHARD WHITE, CEO & F OU NDER
Slide 6: 1H24 highlights
1H24 highlights 1H24 strong performance Over $1b invested in product Margin rate ahead of expectations development over last five years Underpins revenue growth CargoWise Landside Logistics CargoWise LGFF momentum capability enhanced by the continues with Sinotrans signed addition of MatchBox Exchan
Slide 7: 1H24 – strong financial performance
1H24 – strong financial performance Delivering on strategy Total revenue $500.4m CargoWise revenue $420.7m EBITDA $229.9m ↑ 15% organically1 ↑ 19% organically ↑ 16% organically (↑ 32% reported) (↑ 40% reported) (↑ 23% reported) on 1H23 on 1H23 on 1H23 Total revenue growth $122.2m Total CargoWise rev
Slide 8: 1H24 financial review
SECTION 02 REPLACE IMAGE 1H24 financial review ANDREW CARTL EDGE, CF O
Slide 9: 1H24 results
1H24 results Revenue Strong financial performance • Total revenue of $500.4m, up 32% on 1H23 • CargoWise recurring revenue grew to $414.7m, organically up 19% on 1H23 • Total CargoWise revenue grew organically 19% on 1H23 A$m 1H23 1H24 % change • In addition, recent M&A added $53.4m in 1H24 vs $0.4m
Slide 10: 1H24 revenue growth
1H24 revenue growth A$m Total revenue grew $122.2m or 32% – CargoWise revenue grew $119.7m or 40% Recurring & non-recurring revenue CargoWise & non-CargoWise revenue (0.3) 11.0 500.4 14.8 11.0 500.4 Recurring 10.5 (1.2) CargoWise 8.1 79.7 111.4 Non-recurring 0.6 Non-CargoWise 2.9 Recurring 52.0 378.
Slide 11: 1H24 operating expenses
1H24 operating expenses1 % of revenue Ongoing operating leverage Expenses (A$m) Recent M&A main driver of overall operating expenses up 1pp as a % of revenue on 1H23; down 2pp on 2H23 Product design & development (A$m) Sales & marketing (A$m) General & administration (A$m) 17% 16% 16% 15% 16% 16% 14
Slide 12: 1H24 research and development
1H24 research and development Accelerated innovation and product development Investment in innovation and Product investment product development (A$m) • R&D investment increased $62.4m, or 54% vs 1H23 reflecting the previously communicated increase in R&D investment for future growth and recent R&D
Slide 13: 1H24 balance sheet
1H24 balance sheet Strong balance sheet and liquidity providing solid platform for future growth Strong liquidity • $445m total liquidity from cash and undrawn debt facilities A$m 30 Jun 23 31 Dec 23 Cash 143.0 145.0 Receivables Receivables 121.0 121.7 • Flat vs 1H23 Derivative financial instruments
Slide 14: 1H24 cash flow performance
1H24 cash flow performance Highly cash-generative business model delivering strong free cash flow A$m 1H23 1H24 % change Strong operating cash flow • Operating cash flows up 23% vs 1H23 to $249.9m (1H23: $203.4m), EBITDA 187.3 229.9 23% demonstrating the strength of our highly cash-generative operat
Slide 15: Strategy & outlook
SECTION 03 REPLACE IMAGE Strategy & outlook RICHARD WHITE, CEO & FOUNDER
Slide 16: WiseTech's '3P' strategy
WiseTech's ’3P’ strategy Strategy delivers sustainable growth through the cycle Vision: To be the operating system for global logistics Demand for integrated Need to replace ageing legacy Logistics providers pursuing global software solutions systems to reduce complexity industry consolidation with
Slide 17: Development priorities to extend the CargoWise ecosystem
Development priorities to extend the CargoWise ecosystem Continued CargoWise enhancement1 (576 1H24) - over $1b invested in R&D since 2H19 delivering 5,500+ enhancements Six CargoWise product development priorities Digital Customs and International Landside logistics Warehouse Neo documents complian
Slide 18: Productivity and automation driven by ML, AI, Big Data
Productivity and automation driven by ML, AI, Big Data Across product development, WiseTech, and the CargoWise ecosystem … … we are putting “Productivity at the center of everything” that we do Machine Generative Big Data Automation Learning AI Leading to greater efficiency and effectiveness, delive
Slide 19: Expanding the CargoWise ecosystem
Expanding the CargoWise ecosystem Extending the core customer proposition and addressable market OPERATING SYSTEM FOR GLOBAL LOGISTICS Domestic Warehouse Landside Customs & International Customs & Landside Warehouse Domestic logistics logistics compliance freight forwarding compliance logistics logi
Slide 20: CargoWise Landside Logistics
CargoWise Landside Logistics Customers Capabilities • Digital bookings • Live driver app Forwarders • Road & rail co-ordination • Logistics optimization • Container optimization POWERS LANDSIDE LOGISTICS BCOs • Truck/driver optimization INTEROPERABLE GLOBAL ECOSYSTEM OPTIMIZATION VISIBILITY • SecurS
Slide 21: Penetration
Penetration Momentum through existing customer growth & new global rollout wins Three new global rollouts by LGFFs1 Two transitions from ‘Contracted’ Of the 49 global rollouts, 13 are with As at 1H24, CargoWise had global rollouts secured since 1 July 2023: to ‘In Production’: Top 25 Global Freight
Slide 22: Top 25 'In Production' on CargoWise significantly outperform
Top 25 ‘In Production’ on CargoWise significantly outperform Top 25 Container Volume Growth1 (FY11 – FY23) • 82%2 growth in CargoWise ‘In Production’3 Top 25 freight forwarders • 12% growth from the Remaining Top 254 freight forwarders 82% 7x 12% 4 CargoWise 'In Production' Remaining Top 25 1. Conta
Slide 23: Profitability
Profitability Enhancing operating leverage supporting profitable growth Streamlining processes Internal development of Optimizing our integrated Allocating resources and teams our existing teams cost structures appropriately Driving returns by leveraging high growth and scalable SaaS model deliverin
Slide 24: FY24 guidance reconfirmed
FY24 guidance reconfirmed Continued strong growth outlook FY24 guidance assumptions Guidance provided FY24 revenue 1 CargoWise: revenue growth at lower end of ~34% – 43% in line with these • Continued positive momentum from FY23 run rate assumptions and $1,040m – $1,095m • Later product release timi
Slide 25: Business model and strategy delivering sustainable shareholder value
Business model and strategy delivering sustainable shareholder value Revenue (A$m) (A$m) $1,040- EBITDA (A$m) EBITDA margin % 50% $1,200.0 $1,095 47% 44%-46% 50% 600 41% $1,000.0 35% 35% $455-$490 40% 30% 31% 30% $816.8 500 30% $800.0 $385.7 $632.2 400 20% $319.0 $600.0 $507.5 300 10% $429.4 $348.3
Slide 26: Q&A
SECTION 04 Q&A
Slide 27: Appendices
SECTION 05 Appendices REPLACE IMAGE Slides 27. FY24 guidance assumptions and FX 28. 1H24 strategic highlights 29. Customer growth and low attrition 30. Revenue diversification 31. 1H24 organic growth 32. Reconciliation of statutory expenses to non-statutory expenses 33. Reconciliation of underlying
Slide 28: FY24 guidance assumptions and FX
FY24 guidance assumptions and FX What is included in the FY24 FX rates1 vs AUD FY23 actual 1H24 actual 2H24 Guidance Foreign Exchange guidance: USD 0.71 0.65 0.68 • ~84% of 1H24 revenue in non-AUD currencies, • Retention of existing CargoWise customers EUR 0.64 0.60 0.61 4pp higher than 1H23 (80%) c
Slide 29: 1H24 strategic highlights
1H24 strategic highlights Strategic progress on the ‘3P’ strategy to accelerate delivery of our vision powered by our People Product Penetration Profitability • Delivered 576 new CargoWise application • Three new global rollouts by LGFFs secured in • Enhanced operating leverage supporting suite prod
Slide 30: Customer growth and low attrition
Customer growth and low attrition CargoWise application suite1 revenue by customer cohort A$m (last 12 months) 700 Increasing adoption by Large Global Freight Forwarders 600 Top 300 customers deliver ~70% of CargoWise revenue in 1H24 (1H23 ~75%), reflecting 500 addition of smaller customers from rec
Slide 31: Revenue diversification
Revenue diversification Revenue by customers (%) 1H24 Revenue by geography1,2 (%) 36% 36% Rest of customers Europe, Middle East & Africa 69% 67% Top 11-20 largest customers Asia Pacific Top 10 largest customers Americas 28% 7% 8% 24% 25% We are a global company with customers operating in 181 countr
Slide 32: 1H24 organic growth
1H24 organic growth1 A$m Revenue EBITDA EBITDA margin CargoWise Non-CargoWise Total % % % % 1H23 1H24 1H23 1H24 1H23 1H24 1H23 1H24 1H23 1H24 change change change change change Recurring revenue 298.2 414.7 39% 65.6 70.9 8% 363.8 485.6 34% Non-recurring revenue 2.8 6.0 115% 11.7 8.8 (25)% 14.5 14.8
Slide 33: Reconciliation of statutory expenses to non-statutory expenses
Reconciliation of statutory expenses to non-statutory expenses A$m 1H23 1H24 Cost of Revenues Cost of revenue – statutory 56.9 85.3 Less: Depreciation & amortization 5.5 6.6 Cost of revenues – non-statutory 51.4 78.8 Product design & development Product design & development – statutory 80.9 116.2 Le
Slide 34: Reconciliation of underlying NPAT, NPATA and underlying ETR
Reconciliation of underlying NPAT, NPATA and underlying ETR Net Profit After Tax A$m 1H23 1H24 (NPAT) NPAT 109.0 118.2 Fair value gain on acquisition contingent consideration - - Non-recurring tax on acquisition contingent consideration (0.6) (1.6) Acquired amortization (net of tax) 2.9 8.3 Continge
Slide 35: CargoWise recurring revenue growth
Revenue growth drivers CargoWise recurring revenue delivers 33% CAGR CargoWise recurring revenue growth FY16 to FY23 (constant currency) • 33% CAGR FY16 to FY23 • Significant R&D investment driving long-term growth Revenue growth of $563.9m, >7X over the last 7 years 816.8 • • Major recurring revenu
Slide 36: CargoWise recurring revenue growth drivers
CargoWise recurring revenue growth drivers Details on inclusions in each category of revenue drivers CargoWise recurring revenue growth drivers Growth rate FY16 to FY23 (averages per year) What’s included Growth in users and transactions from Large Global Large Global Freight Forwarder rollouts 10pp
Slide 37: Large Global Freight Forwarder rollouts driving revenue growth
Large Global Freight Forwarder rollouts driving revenue growth 47 LGFF rollouts are driving long-term revenue growth 33 LGFFs with rollouts of the CargoWise application suite Annual revenue (A$m)1 ‘In Production’2 have delivered: in constant currency 14 LGFFs are • Revenue growth of 37% CAGR over th
Slide 38: Global rollouts
Global rollouts Reconciliation of CargoWise application suite global rollouts In Production1 Contracted1 Total LGFF1 Top 251 As at 30 June 2023 33 14 47 11 New contracts signed: - 3 3 1 Sinotrans, APL Logistics, Yamato Transport Transition from ‘Contracted’ to ‘In Production’: 2 (2) - - Hankyu Hansh
Slide 39: A&A Top 25 container volume growth
A&A Top 25 container volume growth1 Twenty-foot equivalent unit (TEU) data Percent of Top 25 FY23 TEU Volume TEUs millions2 Count FY11 FY23 % Growth LGFFs ‘In Production’ 63 4.9 9.0 82% Remaining Top 25 19 21.9 24.4 12% 27% 35% 6 LGFFs ‘In Production’ 7 LGFFs ‘Contracted and In Total Top 25 25 26.8
Slide 40: Glossary
Glossary Abbreviation Definition First reference slide A customer attrition measurement relating to the CargoWise application suite (excluding any customers on non-CargoWise Annual Attrition rate - platforms). A customer’s users are included in the customer attrition calculation upon leaving i.e. ha
Slide 41: Important notice and disclaimer
Important notice and disclaimer Content of presentation for information purposes only Preparation of information Visit wisetechglobal.com/investors All financial information has been prepared and reviewed in accordance with Australian Accounting Standards. Certain financial data included in this pre
Slide 42: Thank you
Thank you wisetechglobal.com/investors © 2024 WiseTech Global