Slide 1: FY21 Results
Enabling and empowering the world’s supply chains FY21 Results © 2021 WiseTech Global
Slide 2: Our Vision and Our Mission
OUR VISION OUR MISSION To be the operating To create breakthrough system for global logistics products that enable and empower those that own and operate the supply chains of the world
Slide 3: Agenda
Agenda FY21 FY21 STRATEGY FINANCIAL Q&A APPENDICES HIGHLIGHTS & OUTLOOK REVIEW 1 2 3 4 5 3 © 2021 WiseTech Global
Slide 4: FY21 highlights
SECTION 01 FY21 highlights R IC HA R D W HIT E , C E O & FO U ND E R
Slide 5: FY21 financial highlights
FY21 financial highlights Robust financial performance, strong revenue growth & cash generation reflecting operating leverage Total revenue $507.5m CargoWise revenue $331.6m EBITDA $206.7m ↑ 24% ex FX (↑ 18% incl. FX) ↑ 31% ex FX (↑ 26% incl. FX) ↑ 63% on FY20 on FY20 on FY20 Total revenue growth $7
Slide 6: Global supply chain market conditions
Global supply chain market conditions Constrained capacity resulting in increasing freight rates, accelerating digitisation & consolidation Global trade Freight Structural changes • 'Goods-led' recovery in global trade • Air freight strongly impacted by decline • Whilst short term freight rate incre
Slide 7: FY21 strategic highlights
FY21 strategic highlights Strategic progress on the 3Ps to leverage structural changes and deliver on our vision Product Penetration Profitability • Significant progress in continued alignment • Strategic focus on the Top 25 Global • Strong revenue growth drives operating of acquired product & devel
Slide 8: FY21 financial review
SECTION 02 FY21 financial review A ND R E W C A R T LE D G E , C FO
Slide 9: FY21 results
FY21 results Total revenue Strong financial performance • Total revenue of $507.5m, up 18% on FY20, top end of guidance range ($470m - $510m) • $23.4m FX headwind in FY21 (FY20: $12.1m FX benefit vs. FY19) • Excluding FX headwind, total revenue grew 24% (equating to $101.4m growth) A$m FY20 FY21 % c
Slide 10: FY21 revenue growth – recurring & non-recurring split
FY21 revenue growth – recurring & non-recurring split A$m Total revenue growth 4.2 • Total revenue grew $101.4m or 24% excluding FX (0.0) 507.5 (23.4) • Revenue growth was offset by $23.4m of unfavourable FX movements (0.0) (FY20: $12.1m foreign exchange benefit vs. FY19) 97.3 49.4 429.4 Recurring r
Slide 11: FY21 revenue growth – CargoWise & acquisition revenue split
FY21 revenue growth – CargoWise & acquisition revenue split A$m CargoWise revenue growth (1.4) 507.5 • $68.6m, or 26% revenue growth in FY21 on FY20 • $52.2m of revenue growth from existing customers (FY20: $31.0m) • $16.4m growth from new customers (FY20: $12.4m) 175.9 • Growth from existing & new
Slide 12: Revenue growth drivers
Revenue growth drivers CargoWise recurring revenue delivers 31% CAGR FY16 to FY21 (constant currency) A$m CargoWise recurring revenue growth 507.5 • 31% CAGR FY16 to FY21 • Significant R&D investment driving long-term growth • Revenue growth of $237.4m, ~4X over the last 5 years • Major recurring re
Slide 13: FY21 operating expenses
FY21 operating expenses1 % of revenue Revenue growth driving margin expansion, supported by synergies and efficiencies Expenses (A$m) Overall operating expenses down 9pp as a % of revenue as operating leverage increased Product design & development (A$m) Sales & marketing (A$m) General & administrat
Slide 14: FY21 research and development
FY21 research and development Investment in innovation and product development continues to be a priority Investment in innovation and product development (A$m) Product investment 37% • 5% increase in innovation and product development in FY21 vs. FY20, 34% focused on product enhancements and furthe
Slide 15: FY21 balance sheet
FY21 balance sheet Strong balance sheet and liquidity providing solid platform for future growth A$m 30 Jun 20 30 Jun 21 Strong liquidity Cash 223.7 315.0 • $315.0m in cash Receivables 59.6 74.1 • Post-FY21 refinancing of debt facility with a new unsecured four-year Derivative financial instruments
Slide 16: FY21 cash flow performance
FY21 cash flow performance Highly cash-generative business model delivering strong free cash flow for ongoing investment in growth Strong operating cash flow A$m FY20 FY21 % change • Operating cash flows were $229.9m (FY20: $146.3m), up 57% on FY20, demonstrating the strength of our highly cash-gene
Slide 17: Strategy & outlook
SECTION 03 Strategy & outlook R IC HA R D W HIT E , C E O & FO U ND E R
Slide 18: WiseTech's strategy designed to leverage structural changes
WiseTech's strategy designed to leverage structural changes Our people facilitate the acceleration of our long-term strategy To be the operating system for global logistics Our strategy is designed to accelerate growth by leveraging structural changes Demand for integrated global Need to replace age
Slide 19: Product – the CargoWise ecosystem
Product – the CargoWise ecosystem Our product development strategy is designed to enable and empower the world’s supply chains FY08-13 FY14–17 FY18–20 FY21–23 FY24–BEYOND Introduced Launched Grew Deliver Extend Cloud-based solution CargoWise and 34 acquisitions CargoWise expansion Neo rollout initia
Slide 20: Product: global customs and cross-border compliance
Product Our #1 development priority - enhancing our technology lead in global customs & cross-border compliance Global customs Global native customs and cross-border compliance Current development pipeline Our Production Release1 Priority Europe Priority South America Our global customs and cross-bo
Slide 21: Product: global rates, eCommerce, landside logistics, Neo
Product Adding functionalities and further extensions of the CargoWise ecosystem Global rates eCommerce Landside logistics Neo Build out global rates engine Expand International & land transport Global integrated platform and ecosystem eCommerce Extension into fragmented market for BCOs to manage th
Slide 22: Penetration
Penetration Market penetration momentum with increased existing customer usage & new global rollout wins Focus on the Top 25 Global Freight Forwarders1 & the top 200 Global rollouts – CargoWise Large Global Freight Forwarders3 global logistics providers Signed post 30 June 20214 6 new global rollout
Slide 23: Penetration: Large Global Freight Forwarder rollouts
Penetration 36 Large Global Freight Forwarder rollouts are driving long term revenue growth Annual revenue (A$m)1 7 Large Global Freight 29 Large Global Freight Forwarders with rollouts Forwarders are in constant currency ‘Contracted and of CargoWise ‘In Production’2 have delivered: In Progress’ 158
Slide 24: Profitability
Profitability Organisation-wide efficiency program to maximise operating leverage and support growth • Centralising physical operations and product → development hubs Organisation-wide efficiency • Data centre consolidation and data migration and acquisition synergy program of acquired businesses to
Slide 25: FY22 guidance
FY22 guidance Strong growth outlook FY22 revenue FY22 guidance assumptions $600m - $635m 1 CargoWise: revenue growth of ~30% - 40% (excluding FX) Guidance provided in line with • Strong momentum from FY21 run rate these assumptions and those 18% - 25% • FY22 first and second half splits broadly simi
Slide 26: Strategic approach delivering long-term sustainable shareholder value
Strategic approach delivering long-term sustainable shareholder value 600-635 43-45% Revenue (A$m) $380.0 EBITDA (A$m) $600.0 EBITDA Margin % 45% 41% 507.5 $330.0 40% $500.0 260-285 429.4 $280.0 35% 35% 35% $400.0 348.3 30% $230.0 206.7 30% 31% $300.0 30% $180.0 25% 221.6 126.7 $200.0 153.8 $130.0 1
Slide 27: Q&A
SECTION 04 Q&A
Slide 28: Appendices
SECTION 05 Appendices Slides 29. FY22 guidance assumptions and FX 30. Customer growth and low attrition 31. Earnings diversification 32. Revenue growth excluding FX 33. Overview of revenue licensing models 34. Income statement 35. Key operating metrics 36. Reconciliation of statutory expenses to non
Slide 29: FY22 guidance assumptions and FX
FY22 guidance assumptions and FX What is included in the FY22 guidance: FX rates1 v AUD FY21 Actual FY22 Guidance Foreign Exchange • Retention of existing customers with CargoWise USD 0.72 0.74 • 73% of FY21 revenue in non-AUD currencies, usage growth consistent with historical levels EUR 0.61 0.63
Slide 30: Customer growth and low attrition
Customer growth and low attrition CargoWise1 application suite revenue by customer cohort A$m Increasing adoption by Large Global 350 Freight Forwarders 300 Top 300 customers now deliver ~80% of CargoWise revenue 250 200 Customers stay and use more 150 <1% attrition every year for last 9 years2 Annu
Slide 31: Earnings diversification
Earnings diversification FY21 Revenue by customers1 (%) FY21 Revenue by geography2,3 (%) 20% 28% Top 10 largest customers 41% Europe, Middle East & Africa 4% Top 11-20 largest customers Asia Pacific Rest of customers Americas 76% 31% We maintain a prudent and robust diversity We are a global company
Slide 32: Revenue growth excluding FX
Revenue growth excluding FX A$m FY20 FY21 $ change % change Non- Non- Non- Non- Recurring Total Recurring Total Recurring Total Recurring Total recurring recurring recurring recurring revenue revenue revenue revenue revenue revenue revenue revenue revenue revenue revenue revenue CargoWise revenue 25
Slide 33: Overview of revenue licensing models
Overview of revenue licensing models Total revenue by licence type (A$m) 507.5 Other revenue Recurring revenue (90% of revenue)1 (10% of revenue)1 49.4 429.4 One-Time 75.1 On-Demand Licensing Licensing (OTL) OTL & support services 47.4 Revenue 75%1 maintenance 10%1 348.3 15%1 72.8 40.7 Seat + Transa
Slide 34: Income statement
Income statement A$m FY20 FY21 Revenue Recurring On-Demand licence 309.2 383.0 Recurring OTL maintenance 72.8 75.1 OTL and support services 47.4 49.4 Total revenue 429.4 507.5 Cost of revenues (76.7) (77.9) Gross profit 352.7 429.5 Operating expenses Product design and development (84.9) (88.8) Sale
Slide 35: Key operating metrics
Key operating metrics FY20 FY21 FY21 CargoWise1 Total revenue growth vs. prior year 23% 18% 26% Recurring revenue – % of total revenue 89% 90% 97% On-Demand licence revenue – % of total revenue 72% 75% 97% Gross profit margin 82% 85% 92% Product design and development - % of total revenue 20% 17% 12
Slide 36: Reconciliation of statutory expenses to non-statutory expenses
Reconciliation of statutory expenses to non-statutory expenses A$m FY20 FY21 Cost of Revenues Cost of revenue – statutory 83.5 85.6 Less: Depreciation & amortisation 6.8 7.6 Cost of revenues – non-statutory 76.7 77.9 Product design & development Product design & development – statutory 115.4 128.9 L
Slide 37: Reconciliation of Underlying NPAT, NPATA and Underlying ETR
Reconciliation of Underlying NPAT, NPATA and Underlying ETR Net Profit after Tax A$m FY20 FY21 (NPAT) NPAT 160.8 108.1 Fair value gain on contingent consideration (111.0) (2.2) Contingent consideration interest unwind (net of tax) 2.9 - Underlying NPAT1 52.6 105.8 NPAT 160.8 108.1 Fair value gain on
Slide 38: CargoWise recurring revenue growth drivers
CargoWise recurring revenue growth drivers Details on inclusions in each category of revenue drivers CargoWise recurring revenue growth drivers Growth rate FY16 to FY21 (averages per year) What’s included Growth in users and transactions from Large Global Large Global Freight Forwarder rollouts 12pp
Slide 39: Global rollouts
Global rollouts Reconciliation of CargoWise global rollouts In Production Contracted Total LGFF1 Top 25 As at 24 Feb 2021 26 8 34 11 XPO removed from A&A Top 25 Global Freight - - - (1) Forwarders1 New organic rollouts “In Production”: 3 - 3 - Pentagon Freight, Fracht, AIT Worldwide Logistics CEVA “
Slide 40: Glossary
Glossary Abbreviation Definition First reference slide Acquisition Revenue - Revenue generated by businesses acquired since 2012 that are not included in CargoWise revenue. 5 A customer attrition measurement relating to the CargoWise platform (excluding any customers on acquired legacy Annual attrit
Slide 41: Important notice and disclaimer
Important notice and disclaimer Content of presentation for information purposes only Preparation of information Visit wisetechglobal.com/investors All financial information has been prepared and reviewed in accordance with Australian Accounting Standards. Certain financial data included in this pre
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