Slide 1: FY2016 First Half Results Presentation
For personal use only Appen Limited FY2016 First Half Results Presentation
Slide 2: Disclaimer
Disclaimer 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 sp
Slide 3: Company snapshot
Company snapshot For personal use only 53.4 Appen (APX) is a global language technology company with 35.8 operations in Australia, the US and the Philippines Strong growth in 1H FY2016 8.8 4.8 >A$300M market capitalisation 1H FY2015 1H FY2016 ($Am) Revenue EBITDA Customers include the world’s leadin
Slide 4: Positioned for growth
Positioned for growth For personal use only Speech is growing as the Search, social media and Rapid growth in digital assistants interface of choice: ecommerce using machine and bots relies on natural ‘Conversational User Interface’ learning for more relevant and language processing personal service
Slide 5: First half highlights (A$m)
First half highlights (A$m) For personal use only Revenue up 49% Revenue Earnings EBITDA up 83% 53.4 8.8 NPAT up 102% 35.8 Strong execution of customer 4.8 5.4 EBITDA work won in FY2015 NPAT 2.7 Increasing demand for language data and services Deep relationships with the 1H FY2015 1H FY2016 1H FY201
Slide 6: Increasing demand for language data (A$m)
Increasing demand for language data (A$m) For personal use only Language Resources revenue up 41% Content Relevance revenue up 54% Language Resources Content Relevance 18.4 35.0 13.1 22.7 Revenue 7.4 EBITDA 4.8 6.1 3.7 1H FY2015 1H FY2016 1H#FY2015# 1H#FY2016# Provision of high quality speech data t
Slide 7: Deep relationships with global companies
Deep relationships with global companies For personal use only 82.7 2H FY16 Appen’s customers include the world’s largest technology companies, automakers and governments 60.7 53.4 Ever increasing need for language data 51.0 and services 33.3 Quality of Appen’s data and services 29.5 drives growing
Slide 8: Scalable technology and operations
Scalable technology and operations For personal use only Appen is well positioned to support growth in digital assistants and bots Quality of data and service underpinned by proprietary technology Operational scalability enabled by over 400,000 on-demand crowd-based contractors 230 innovative staff
Slide 9: High Growth (A$m)
High Growth (A$m) % For personal use only change 1H FY2016 1H FY2015 % change constant Revenue up 49% on 1H FY2015 currency Revenue growth from strong execution of Statutory Results customer work won in FY2015 Language 18.4 13.1 41% Resources Content 35.0 22.7 54% EBITDA up 83% Relevance Margin impr
Slide 10: Strong Balance Sheet (A$m)
Strong Balance Sheet (A$m) Jun 2016 Dec 2015 For personal use only Strong balance sheet. No debt. Cash 13.1 12.7 Increase in cash reserves and receivables Receivables 18.5 17.3 related to increase in revenue volumes Current Assets 0.3 0.3 Interim dividend of 2.0 cents per share fully Non-Current Ass
Slide 11: Solid Cash Flow (A$m)
Solid Cash Flow (A$m) 1H 1H For personal use only FY2016 FY2015 FY2015 Cash balance increased by $7.9m over 1H FY2015 Receipts 50.7 72.5 27.4 Cash flow from operations improved due to Payments and other (44.0) (67.6) (30.6) improvements in timing of customer receipts Cash flow from Operations 6.7 4.
Slide 12: Currency impact (A$m)
Currency impact (A$m) For personal use only Revenue EBITDA Almost all revenue derived 53.4 8.8 offshore, most in USD 14.6 3.0 1.2 2.8 Substantial growth on top of 35.8 currency benefit 4.8 1H FY2015 Currency Currency 1H FY2016 1H FY2015 Currency Currency 1H FY2016 Neutral Impact Neutral Impact Growt
Slide 13: Outlook
Outlook For personal use only Pipeline continues to build, fuelled by demand for high quality language data and services 1H FY2016 revenue plus orders in hand for delivery in FY2016 ~$100m as of August 2016 Full year outlook for earnings growth now on target to exceed 20% Outlook susceptible to upsi
Slide 14: Thank you
For personal use only Thank you Mark Brayan, CEO, mbrayan@appen.com Kevin Levine, CFO, klevine@appen.com Leanne Ralph, Company Secretary, leanne.ralph@boardworx.net.au Company Confidential