Microlise Group Plc · LSE:SAAS
Microlise — H1 2024 Earnings Presentation
28 slides from Microlise's earnings presentation, 2024
Slide 1: Nadeem Raza Chief Executive Officer Nick Wightman
Nadeem Raza Chief Executive Officer Nick Wightman Chief Financial Officer
Slide 2: The Presentation Team
The Presentation Team NADEEM RAZA NICK WIGHTMAN Chief Executive Officer Chief Financial Officer Joined Microlise in 1987. Led a management buyout of the Nick joined Microlise in 2012 and played a key role in the Group in 2008, when he became CEO. He is a board member Group’s refinancing and re-organ
Slide 3: Microlise: A Leading Provider Of Transport Management Solutions To Enterprise Customers
Microlise A Leading Provider Of Transport Management Solutions To Enterprise Customers ❑ Solving complex needs with proprietary software and hardware solutions ❑ Automating critical processes and providing real time data ❑ Customers benefit from cost savings, better utilisation, emissions reductions
Slide 4: Microlise in Numbers
Microlise in Numbers 1982 800K+ Established in UK Active Subscriptions 790+ <1% Very low customer Staff churn rate 450+ £72M Enterprise Customers FY 2023 Revenue (£47.7m ARR) 197 3 Countries with Queen’s Awards for deployments Enterprise PRIVATE & CONFIDENTIAL
Slide 5: Helping Customers Meet Their Commitments
Helping Customers Meet Their Commitments Improving KPI’s Including Environmental Emissions, Operating Efficiency And Safety Standards Reduce Mileage Improve Reduce Fuel Use Reduce Emissions Reduce Vehicle Travelled Driver Wear & Tear Performance Reduce Reduce Improve Fleet Eliminate Enhance Accident
Slide 6: Our Locations
Our Locations Hull, UK Altringham, UK HQ- Nottingham, UK Coventry, UK Marseille, France Pune, India Melbourne, Australia PRIVATE & CONFIDENTIAL
Slide 7: Highlights
Highlights (H1 2024 vs H1 2023 ) +15.4% +21.5% +16.8% +21% Revenue Recurring Revenue Adjusted EBITDA ARR £39.1m £26.6m £5.2m £54m +32% 0% +6.0% Adjusted Cash Flow from Subscriptions Churn Interim Dividend Operations 827K+ 0.5% £3.8m £0.57p PRIVATE & CONFIDENTIAL
Slide 8: Highlights
Highlights Strong cross sell including new TMS solution into existing Growth in ANZ -WooliesX & Completed ESS acquisition customer on 10-year contract FSSI, STAF in France 40 Major Multi-Year Renewals: JCB Contract Extension Launch of 200 new customers added Bidfood, Pall-ex, Tesco, JCB Beacons, and
Slide 9: A Proprietary Modular Platform
A Proprietary Modular Platform Enabling Global Enterprises Transport Management System Driver Connected Fleet Performance To Run Highly Complex Mobility Logistics Supply Chains Building, costing and invoicing of orders Range of hardware options for drivers Vehicle Tracking & Utilisation Collection m
Slide 10: Product Investments
Product Investments Integrating newly acquired Security & Growing Moat products – MicroliseOne 3rd Party Camera Support Innovation & cost reduction and Refrigerated Goods hardware PRIVATE & CONFIDENTIAL
Slide 11: Some of our customers…
Some of our customers… OEM & Automotive Haulage Retail Grocery Food Manufacturing Food Services Pharmaceuticals Post & Parcel Construction Defence & Services Petrochemical PRIVATE & CONFIDENTIAL Case Studies available here: https://www.microlise.com/case-studies/
Slide 12: Financial Review
Financial Review PRIVATE & CONFIDENTIAL
Slide 13: Revenue Split
Revenue Split Total revenue has increased 15.4% to £39.1m from £33.9m in H12023, 7.8% organic Recurring revenue increased 21.5% to £26.6m from £21.9m in H12023 as a result in strong growth in revenues from direct customers and recent acquisitions Annual Recurring Revenue (ARR) has increased 21% to £
Slide 14: Profit & Loss
Revenue Growth of 15.4% year on year Profit & Loss Gross Margin growth of 24.9% reflecting impact of growth in higher margin subscription business and positive impact of acquisitions Increases in both non recurring and recurring margins. Overall improvement in gross margin from 61% to 65% Operating
Slide 15: Cash Flow
Cash Flow Working Capital movements were lower than expected due to a £0.5m increase in inventory levels due to localised project delays H1 2024 cash conversion rate reduced to 72% as a result Capex PPE reflects continued investment in IT infrastructure, increased quantity of solar panels and EV cha
Slide 16: Margin Enhancement Program
Margin Enhancement Program Growth in direct sales vs OEM sales. New hardware products to reduce costs and increase margins. Focus and execution of cross sell and upsell strategy Support for 3rd Party hardware products increases margins and also reduces barriers to replace competitors. Sales of newly
Slide 17: Market Positioning & Strategy
MARKET POSITIONING & STRATEGY PRIVATE & CONFIDENTIAL
Slide 18: Our Customer's Market
OUR CUSTOMER’S MARKET CONSOLIDATION CONTINUES AS PLAYERS TRY INCREASING NET ZERO PRESSURES TO GAIN COST ADVANTAGE THROUGH SCALE Increasing pressure to deliver high customer service for less and using less. This is diminishing as customers are focused on profitability more than net zero Many small pl
Slide 19: Operational Environment
Operational Environment • New vehicle availability back to normal lead times, except Electric Vehicles, and Australian market. • We continue to see a strong demand for Microlise products, particularly with our recent acquisitions, with good execution of cross sell and up sell into customer base. • G
Slide 20: Execution on a Clear Growth Strategy
Execution on a Clear Growth Strategy Smaller Fleets & Structural Growth Upsell New Products UK International New Geographies New Products LCV’s Existing Customer Growth New Customer Growth M & A Growth • Continued growth in OEM and extension of JCB contract to 2029 • New wins include Romac and OneSt
Slide 21: Investment Case
Investment Case Typical 5-10 year contracts Low customer churn rate Selling multiple products into give long term visibility of customers makes us more contracted revenue sticky and difficult to substitute Margin enhancement with new Significant market opportunities Track record of consistently prod
Slide 22: Outlook
OUTLOOK PRIVATE & CONFIDENTIAL
Slide 23: Outlook
▪ Outlook Microlise delivered a solid performance in the first half of 2024. Market conditions have greatly improved following the resolution of component supply issues, and localised delays in new vehicle rollouts are expected to resolve by year- end. Ongoing market consolidation is also expected t
Slide 24: Appendix
APPENDIX PRIVATE & CONFIDENTIAL
Slide 25: Balance Sheet
Balance Sheet PRIVATE & CONFIDENTIAL
Slide 26: ESG Commitments
ESG Commitments • Microlise is continuing to develop its ESG credentials with projects underway to offset the Group’s carbon footprint EMPLOYEE ISO 45001 GPTW SOLAR PANELS • Highlights include our installation of 502 EVENTS Investing in H&S operations to Great Place To Work 502 panels installed at U
Slide 27: Disclaimer
Disclaimer For the purposes of this document, the presentation that follows (the “Presentation”) shall mean and include the slides that and changes in the political, social and/or economic framework in which the Company operates and the form of global follow, any oral briefing provided by Microlise
Slide 28: www.microlise.com
www.microlise.com Microlise Limited Microlise Group plc Farrington Way Farrington Way Eastwood Eastwood Nottinghamshire Nottinghamshire NG16 3AG NG16 3AG Registered in England & Registered in England & Wales with Company Wales with Company No. No. 03037936 11553192