Slide 1: Gentrack Group Ltd (GTK) FY19 – Half year update
For personal use only Gentrack Group Ltd (GTK) FY19 – Half year update as at 31 March 2019
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation may contain forward-looking statements. Forward-looking statements often include words such as ‘anticipate’, ‘expect’, ‘plan’ or similar words in connection with discussions of future operating or financial performance. The forward-looking statement
Slide 3: Enterprise Software for Utilities and Airports
ENTERPRISE SOFTWARE FOR UTILITIES AND AIRPORTS For personal use only Gentrack delivers software solutions which are deeply embedded and mission critical. They enable over 220 utilities and airports in 30 countries to lower service costs and drive innovation delivering enhanced customer service. EXPE
Slide 4: Achievements in H1
ACHIEVEMENTS IN H1 For personal use only • Completion of productised market ready SaaS solutions for energy and water sectors in the UK, Australia and Singapore • New customers include four utilities in the UK signing for our latest SaaS solutions and one new airport in Australia • Gentrack customer
Slide 5: H1 FY19 Financial Highlights
H1 FY19 FINANCIAL HIGHLIGHTS For personal use only REVENUE $54.4m Up 5% on H1 FY18 EBITDA $12.8m Down 19% on H1 FY18 Adjusted NPAT1 $4.6m Down 45% on H1 FY18 DIVIDEND 5.0cps 1 Adjusted NPAT – Underlying NPAT before No change on H1 FY18. non cash charges related to impairment To be paid on 14 June 20
Slide 6: Comparative Results
COMPARATIVE RESULTS For personal use only Revenue (NZ$m) EBITDA3 (NZ$m) NPAT4 (NZ$m) 60.0 54.4 9.0 8.4 52.0 52.5 15.9 8.0 50.0 46.2 16.0 15.1 15.1 7.0 6.3 12.8 40.0 6.0 5.5 12.0 5.0 4.6 30.0 8.0 4.0 20.0 3.0 4.0 2.0 10.0 1.0 0.0 0.0 0.0 H2 '17 H1 '18 H2 '18 H1 '19 H2 '17 H1 '18 H2 '18 H1 '19 H2 '17
Slide 7: Changing Revenue Mix
CHANGING REVENUE MIX For personal use only 60 Revenues by Type NZD$m 2.4 50 6.1 4.5 H1 FY19 13.8 Recurring Revenue $37.7m 40 13.6 15.5 30 13% 12.6 11% 11.0 up 26% on H1 FY18 13.1 69% of total 20 26.7 10 16.9 21.4 Perpetual Licencing and Services revenues declining with ongoing 0 productisation and m
Slide 8: Increased Recurring Revenue
INCREASED RECURRING REVENUE For personal use only March 18 Annualised Recurring Revenue up 33% to $74M on prior comparative period Our SaaS revenues per customer are c. 1.5 times the traditional perpetual licence model over 7 years 8
Slide 9: Divisional Analysis
DIVISIONAL ANALYSIS For personal use only UTILITIES AIRPORTS (VEOVO) • Revenue on par with H1 FY18 • Revenue up 25% on H1 FY18 • EBITDA down 23% on H1 FY18 • EBITDA on par with H1 FY18 NZ$m NZ$m 50.0 50.0 45.0 42.9 42.3 45.0 42.2 40.0 37.9 40.0 35.0 35.0 30.0 30.0 25.0 25.0 20.0 20.0 15.0 12.8 13.2
Slide 10: Geographic Analysis
GEOGRAPHIC ANALYSIS For personal use only 35 Revenues by region NZD$m H1 FY19 vs H1 FY18 30 28.7 - Australia: Down 27% 26.7 26.2 25 - UK: Up 7% - NZ: Up 7% 20 16.7 - ROW: Up 168% 15.2 15 12.2 10 7.5 5.7 6 6.1 5 5 2.8 0 AUSTRALIA UK NEW ZEALAND ROW H1'18 H2'18 H1'19 10
Slide 11: Investing in People to Enable Our Strategy
INVESTING IN PEOPLE TO ENABLE OUR STRATEGY For personal use only Changing our skillset: 600 539 552 • Supporting our transition to SaaS 500 487 • Running global operations at scale 429 • Managing a customer success 400 business 277 300 • Adopting agile development and 217 195 delivery approach 200 •
Slide 12: Impairment of CA Plus
IMPAIRMENT OF CA PLUS For personal use only • CA Plus was acquired in May 2017 as an early stage business delivering retail and concessionaire management solutions for airports • In September 2018, based on sales results, we revalued the deferred consideration and impaired Goodwill with a net impact
Slide 13: Three Successful Acquisitions Driving Growth
THREE SUCCESSFUL ACQUISITIONS DRIVING GROWTH For personal use only • Junifer launched in Australia and continuing to gain market share in the UK • Evolve planned market entry into Australia • Blip growing strongly in North America and cross selling into the Veovo customer base. 13
Slide 14: Dividend
DIVIDEND For personal use only 5.0cps interim dividend declared (same as 1H FY18) Revision of dividend policy set at time of IPO in June 2014: • Original 70-80% of NPATA (NPAT adjusted for the amortisation of acquisition related intangibles) subject to outlook, capital and liquidity requirements • R
Slide 15: FY19 – Full Year Outlook
FY19 – FULL YEAR OUTLOOK For personal use only • Strong second half with full year EBITDA result expected to be marginally ahead of FY18 • Results are dependent on the timing of key contracts and project milestones • We continue to see cautious investment behaviour by UK utilities as a result of Bre
Slide 16: Appendices
For personal use only APPENDICES
Slide 17: Strategic Focus
STRATEGIC FOCUS For personal use only • Utilities are shifting their mindset to cloud solutions which is reflected in our ARR growth and continued adoption of our new products • Moving our existing customers into SaaS • Continuing to productise our offerings, build new capabilities and support ongoi
Slide 18: Revenue Type Mix by Division
REVENUE TYPE MIX BY DIVISION For personal use only Utilities Revenues by Airports Revenues by 50 Type NZD$m 20 Type NZD$m 45 18 4.1 2.0 40 5.6 16 8.3 35 14 9.5 30 11.2 Utilities 12 Recurring 0.4 9.0 25 11% Revenue 10 15% 11.5 0.5 0.4 Up 27% 5.6 20 11.5 on H1 8 4.2 4.0 FY18 15 6 Airports 23.0 2.0 Rec
Slide 19: GAAP to Non-GAAP Profit Reconciliation
GAAP TO NON-GAAP PROFIT RECONCILIATION For personal use only 6 Months 6 Months 12 Months Period NZ$000 31-Mar-19 31-Mar-18 30-Sep-18 Reported net (loss)/profit after tax (8,700) 8,364 13,869 Add: Amortisation 3,773 2,605 5,690 Add: Tax adjustment for amortisation (846) (664) (1,451) NPATA (5,773) 10
Slide 20: H1 FY19 on a Constant Currency Basis
H1 FY19 ON A CONSTANT CURRENCY BASIS For personal use only H1 FY19 NZ$000 H1 FY18 H1 FY19 Constant Difference ∆% Currency*** Revenue 51,977 54,421 54,726 (305) (0.6)% Operating Costs (36,080) (41,632) (41,515) (118) (0.3)% EBITDA* 15,898 12,789 13,212 (423) (3.2)% NPAT** 8,364 4,641 4,617 24 0.5% *
Slide 21: www.gentrack.com
For personal use only WWW.GENTRACK.COM 21