Slide 1: Appen Limited Annual General Meeting
For personal use only Appen Limited Annual General Meeting 18th May 2018 Company Confidential
Slide 2: Forward looking statements
For personal use only The forward looking statements included in these materials involve subjective judgement and analysis and are subject to significant uncertainties, risks, contingencies, many of which are outside the control of, and are unknown to Appen Limited. In particular, they speak only as
Slide 3: Artificial intelligence definition
For personal use only artificial intelligence noun A branch of computer science dealing with the simulation of intelligent behaviour in computers. The capability of a machine to imitate intelligent human behaviour. Merriam-Webster 5/17/18 3 Company Confidential
Slide 4: AI learns with data. Lots of it. Continuously
AI learns with data. Lots of it. Continuously For personal use only Data Algorithms Computing “A supervised deep-learning algorithm ….. will match or exceed human level performance when trained with a data set containing at least 10 million labelled examples.” 1 “AI techniques require models to be r
Slide 5: Appen is a leading global provider of data for AI
Appen is a leading global provider of data for AI For personal use only Relevance Data Speech and Natural Image and Video Data Language Data • Data to train AI to provide • Data for speech recognition, • Image and video data is used relevant and personal search speech synthesis and natural to build
Slide 6: The market opportunity is huge
The market opportunity is huge For personal use only 3 • AI will disrupt every sector Travel • Total potential value creation by AI is $3.5 High tech trillion to $5.8 trillion3 Transport & logistics Insurance Electronics Consumer packaged goods Retail Pharma & medical Telecommunications Auto & assem
Slide 7: Appen is delivering growth
Appen is delivering growth Revenue For personal use only 166.6 FY2017 Highlights ($Am) - High growth continues 110.9 • Revenue up 50% to $166.6M • Underlying EBITDA of $28.1M up 62%, statutory EBITDA up 29%4 • Underlying NPAT of $19.7M up 86%, statutory NPAT up 36%5 • Underlying EBITDA margin improv
Slide 8: Strong divisional performance
Strong divisional performance (A$m) Language Resources revenue up 7% Content Relevance revenue up 72%, For personal use only EBITDA up 110%7 Language Resources Content Relevance 40.4 126.2 37.7 73.2 Revenue Revenue 14.8 EBITDA EBITDA 12.2 22.1 10.5 FY2016 FY2017 FY2016 FY2017 ($Am) ($Am) Revenue gro
Slide 9: Leapforce acquisition
Leapforce acquisition For personal use only Acquisition of Leapforce concluded in December 2017 Highly automated business through its own technology platform. Leapforce FY2017 revenue of $77M with 20 full time employees Platform provides foundation for automation to improve scalability and data qual
Slide 10: Long term customer relationships
Long term customer relationships (A$m) 166.6 For personal use only Leapforce acquisition and new customer wins improve customer distribution 110.9 Multiple projects within each customer lessens point dependency 82.6 Working in multiple data formats at scale: 60.5 50.9 text, audio, image and video 33
Slide 11: Investing for growth: Technology
Investing for growth For personal use only Technology • Implementing Leapforce’s system across Appen to increase productivity and strengthen margins through improvements to productivity and quality • Investing in Silicon Valley engineering talent to develop advanced, machine learning-based toolsets
Slide 12: Investing for growth: Secure data processing
Investing for growth For personal use only Secure data processing • Increasing demand for secure data handling and processing under GDPR and other regulations • Data security challenges present opportunities for Appen. Solutions include electronic, HR (background checking etc.) and bricks-and-mortar
Slide 13: Investing for growth: Content moderation
Investing for growth For personal use only Content moderation • Higher scrutiny on content (e.g. ‘fake news’) requires better AI for content moderation and placement • Algorithms require high volumes of data with frequent updates • Data must be comprehensive and representative to build impartial and
Slide 14: Investing for growth: Management changes
Investing for growth For personal use only Management changes Phil Hall, SVP Language Resources, has retired after 17 years and a superb contribution to Appen Pablo Grodnitzky, a seasoned high-growth sales executive, previously of Nuance and IBM, to lead Language Resources. Based in Silicon Valley,
Slide 15: Giving back: Corporate Social Responsibility
Giving back For personal use only Corporate Social Responsibility • Translators Without Borders is a global non-profit organization offering language and translation support for humanitarian and development agencies • Appen provides translation services for TWB for documentation to help refugees and
Slide 16: Outlook
Outlook For personal use only Appen is well positioned in a high growth market and is investing in people and technology for continued sales growth and unit cost reductions Growth investments and mix of work pressuring Language Resources margins YTD revenue plus orders in hand for delivery in 2018 ~
Slide 17: Thank you
For personal use only Thank you Mark Brayan, CEO mbryan@appen.com Kevin Levine, CFO klevine@appen.com Leanne Ralph, Company Secretary leanne.ralph@boardworx.net.au appen.com Company Confidential