Straker Ltd · ASX:STG
Straker — H1 FY2025 Earnings Presentation
16 slides from Straker's earnings presentation, Nov 27, 2024
Slide 1: Interim Presentation FY2025
Interim Presentation FY2025 1
Slide 2: Disclosure
Disclosure This presentation is given on behalf of Straker Limited ASX:STG (Company number NZ: 1008867 / AU: ARBN 628 707 399) Information in this presentation: • Is for general information purposes only, and is not an offer or invitation for purchase, or recommendation of securities in Straker Limi
Slide 3: Key Messages
Overview Key Messages • US$52bn translation industry and US$35bn NLP industry. • Accessible AI/LLM solutions are disrupting traditional ways of working. This is both an opportunity and a threat. • Focus is on leveraging technology to lower cost and expand margins. • Innovating to unlock the power of
Slide 4: Market Structure
Demand Market Structure • Translation volume continuing to grow, but revenue yield from traditional work decreasing. • NLP/AI showing strong growth and some simple (low-risk) translation work is shifting to easily accessible LLM’s. • Higher-risk and technical work needs verification to ensure it is
Slide 5: Market Shift – Process and revenue shifts
Three Key Shifts Driving Strategy Market Shift – Process and New: Straker.ai revenue shifts • Leverage technology to lower translation costs and • Customers under cost pressure and expand margins. expectations to reduce per word rates. • Use Agentic AI to automate internal workflows – • Workflows ch
Slide 6: Market Shift – Bring solutions into customers workflows
Three Key Shifts Driving Strategy Market Shift – Bring solutions New: Straker.ai into customers workflows • Develop solutions that place Straker solutions into • Constant demand for increased productivity the places where people work – be part of the eco- in clients. system. • Speed and simplicity a
Slide 7: Market Shift – Importance of building high-value moats
Three Key Shifts Driving Strategy Market Shift – Importance of New: Straker.ai building high-value moats • Strengthen relationships with high-value clients • Low-value/low-risk work shifting to automated where ML knowledge and accuracy is still vital – e.g. solutions at very low/no cost. IBM. • But,
Slide 8: Verify.ai
Product Deeper Dive Verify.ai M • Verify: Our AI verification technology validates AI- created translations, ensuring accuracy and quality. • Verify lowers translation costs, applying to more than just translation. This innovation makes our services more efficient and cost-effective. • Unique AI tok
Slide 9: Workplace Apps
Product Deeper Dive Workplace Apps • Streamlined process: Manage translation projects through popular workplace apps like Slack and Teams, eliminating the need for a Translation Management System (TMS). • Seamless integration: Leverage AI Agents to integrate Verify's AI-powered verification technolo
Slide 10: Swiftbridge
Product Deeper Dive Swiftbridge • Swiftbridge, a solution developed by Straker on the IBM AI platform for the Tokyo Stock Exchange. • Gives us a significant base into the Fintech space. • Swiftbridge is an AI Agent that allows listed companies to comply with regulations for timely publication to mee
Slide 11: Financials
Financials 11
Slide 12: Income Statement
Six months ended 30 September Revenue Gross profit Gross margin % Other income Depreciation, amortisation, and impairment of non-financial assets Capitalised software development Operating expenses, excluding D&A, capitalised development, and impairment of non-financial assets Operating expenses Per
Slide 13: Financial Position
Current assets Cash and cash equivalents Trade receivables ‘Other assets and prepayments Total current assets Non-current assets Intangible assets Plant and equipment Right-of-use assets Total non-current assets Total assets Current liabilities Trade payables Sundry creditors and accruals Contract l
Slide 14: Cashflow
Cashflow 24 23 Change Six months ended 30 September $'000 = $000 Cash flows from operating activities Receipts from customers 23,968 27,892 14% Other operating cash flows (22,296) (24,278) -8% Operating cash flow 1,672 3,614 -54% Capital investment (946) (1,513) — -37% Free cash flow 726 2,101 -65%
Slide 15: Outlook
Outlook Transition from legacy business to AI driven business to ramp up Pressure on top line revenue as customers transition to Straker.ai New AI products live and generating revenue Margins strong with more software revenue M Swiftbridge live and focus on fintech AI solutions Focus on Platform emb
Slide 16: Q&A
Q&A Grant Straker CEO M grant@straker.ai David Ingram CFO david.ingram@straker.ai 16