Kinaxis, Inc. · TSX:KXS
Kinaxis — Investor Presentation (May 2022)
28 slides from Kinaxis's investor presentation, May 2022
Slide 1: Kinaxis Investor Presentation
Kinaxis Investor Presentation Rick Wadsworth | VP, Investor Relations May 2022 Slide 1 Copyright © 2022 Kinaxis. All Rights Reserved.
Slide 2: Forward-looking Statements and Other Disclosures
Forward-looking Statements and Other Disclosures Forward-Looking Information Non-IFRS and other Industry Measures The information presented in this document includes non-IFRS financial measures and industry metrics, namely, This document contains forward-looking statements within the meaning of appl
Slide 3: Forward-looking statements and other disclosures
Forward-looking statements and other disclosures ARR is used widely among SaaS businesses as a means of evaluating a company’s underlying operating performance. Third-Party Information Securities analysts, investors and other interested parties also frequently use ARR in the evaluation of issuers wi
Slide 4: About Kinaxis
About Kinaxis • Recognized industry leader in SaaS supply chain planning 1200+ 232M1 software, headquartered in Ottawa, Canada (TSX: KXS) EMPLOYEES ARR • Faster, better supply chain decisions to drive productivity, lower costs, improve customer satisfaction, and support ~200 25+ sustainability • One
Slide 5: Kinaxis history
Kinaxis history Made first two acquisitions First VAR win Ongoing innovation using artificial intelligence to 2021 2022 solve real-world problems in both supply and demand planning Earned initial revenue Went public on from solution extension the Toronto 2019 2020 partners, capitalizing on Stock Exc
Slide 6: The challenge: global disruptions on the rise
The challenge global disruptions on the rise 2000 2010 2019 2021 • Y2K (2000) • Haiti earthquake • Hong Kong • Suez Canal • Anthrax (2001) (2010) political unrest • Chip shortage • West Nile (2002) • Japan earthquake • Chile port strikes • Texas deep freeze • SARS (2002-2003) 2005 & tsunami (2011)
Slide 7: Supply chain renaissance
Supply chain renaissance • Now a C-suite priority • “Supply chain” constantly in the news • 2021 new customer wins >2x 2020 • ARR growth of 24% in constant currency • Record incremental business won in 2021 • Momentum continuing in 2022 Q1 new customer wins match all-time high Slide 7 Copyright ©
Slide 8: The current state: a patchwork of technologies
The current state a patchwork of technologies Excel Email Point tools Monolithic ERP Out-of-date information • Limited visibility, transparency • Out of date information ERP Customer and Demand Collaborative Planning ERP Slow decision-making Supplier Collaborative Planning • Siloed approach adds l
Slide 9: The transformation: a new way of concurrent thinking
The transformation a new way of concurrent thinking Traditional cascaded planning Concurrent planning Inventory Capacity Demand Finance Supply S&OP What-if What-if What-if What-if What-if What-if • Functionally-focused teams and metrics • Single end-to-end system/data model • Real-time, always-on
Slide 10: Benefits of concurrency
Benefits of concurrency Higher Lower Happier More engaged productivity costs customers employees • Cut manufacturing • Trim finished goods • Shorten planning • Increase job lead times by 20% inventory by 33% cycles by 57% satisfaction • Improve on-time • Shrink expedites • Analyze build plan • Boost
Slide 11: Extending concurrency with an App Warehouse
Extending concurrency with Solutions Certified partner an App Warehouse DETAILED PRODUCTION • Three certified solution SCHEDULING extension partners today ~a dozen signed • ~30-70 revenue split END-TO-END RECYCLING PLANNING • Qualifying Kinaxis into more deals TRANSPORTATION LOAD OPTIMIZATION Slid
Slide 12: RapidStart, Planning One and VARs
RapidStart, Planning One and VARs Control Tower Essentials Expand • S&OP Planning One Planning One Operational Demand Supply Inventory • Command and Control Centre Planning Planning Planning Management • Self-healing Supply Chain • Demand Sensing • Etc… • Users, sites, product lines, etc. Kinaxis Ra
Slide 13: Proven across multiple market verticals
Proven across multiple market verticals LIFE SCIENCES AND HIGH TECH AND CONSUMER RETAIL PHARMACEUTICALS ELECTRONICS PACKAGED GOODS AEROSPACE AUTOMOTIVE INDUSTRIAL AND DEFENSE Slide 13 Copyright © 2022 Kinaxis. All Rights Reserved.
Slide 14: Rapidly growing market for SaaS-based SCM solutions
Rapidly growing market for SaaS-based SCM solutions 1 Kinaxis’ market opportunity 2 2025 $19.6B ~19,000 targets in current verticals, geographies, tiers served 2020 ~25% CAGR ~200 Current customers SCM SaaS market spend $6.3B 1. Graphic created by Kinaxis based on Gartner research. Source,: Gartner,
Slide 15: A generational shift is underway
A generational shift is underway THESE LEADERS HAVE ALREADY DISCOVERED A BREAKTHROUGH Aerospace Consumer High Tech / Automotive Industrial Life Sciences and Defense Products Electronics Gartner TOYOTA Top 25 and Masters HONDA THE CLOROX COMPANY Slide 15 Copyright © 2022 Kinaxis. All Rights Reserved.
Slide 16: 2022 Gartner Magic Quadrant for Supply Chain Planning Solutions
2022 Gartner® Magic Quadrant™ for Supply Chain Planning Solutions Kinaxis recognized as a Leader and ABILITY TO EXECUTE positioned furthest on Vision axis in Gartner Magic Quadrant for Supply Chain Planning (SCP) Solutions COMPLETENESS OF VISION As of April 2022 © Gartner, Inc This graphic was publi
Slide 17: Kinaxis partner ecosystem
Kinaxis partner ecosystem System Integrator Solution Extension Referral VAR Slide 17 Copyright © 2022 Kinaxis. All Rights Reserved.
Slide 18: Strong revenue growth, EBITDA and cash generation
Strong revenue growth, EBITDA1 and cash generation 350 1 Adjusted EBITDA is a non-IFRS measure. See “Non-IFRS and other Industry Measures” in Slide 2 and 3, “Forward- looking Statements and Other Disclosures” 23-25% SaaS * Midpoint of guidance range revenue growth 250.7 216.4 233.4 224.2 212.6 213.1
Slide 19: Business model provides predictability, growth
Business model provides predictability, growth VISIBILITY STABILITY ~ % > % FORWARD TWELVE-MONTH SAAS REVENUE NET REVENUE DOLLAR RETENTION PREDICTABILITY SaaS REVENUE GROWTH 2-5 ~ 50 % | 50 % FROM NEW NAME ACCOUNTS ~ FROM EXISTING CUSTOMERS Multiple levers in revenue model: YEAR CONTRACTS Discreti
Slide 20: Financial Results Highlights, Q1 '22
Financial Results Highlights, Q1 ‘22 $USD thousands Q1 2022 Q1 2021 Change New customer wins match Q4 ‘21 record level Total revenue 98,108 57,728 70% SaaS 49,320 40,576 22% ~65% - 35% new customers: Subscription term licenses 23,474 2,059 1,040% enterprise vs mid-market Gross profit 69,642 37,222 8
Slide 21: Annual Recurring Revenue (ARR)
Annual Recurring Revenue (ARR) 2 $250 232 221 $200 185 $150 Q1 ARR up ~24% in US$ millions constant currency • Driven by strong $100 new customer wins SaaS ARR growth $50 higher than Total ARR growth $0 FY '20 FY '21 Q1 '22 17% 19% 22% YoY growth 15% 21% 24% YoY growth, constant currency 2 ARR is an
Slide 22: Remaining Performance Obligation (RPO)
Remaining Performance Obligation (RPO)3 SaaS RPO Total RPO ↑25% v Q1 2021 $500 $479.1 $445.2 $384.0 $400 ↑23% v Q1 2021 US$ millions Remainder of 2022 • SaaS RPO = $145.2 $360.8 • Total RPO = $156.3 $300 Healthy YoY growth • RPO level determined by renewal cycles and incremental growth $200 Q1 2020
Slide 23: Updated FY '22 Guidance
Updated FY ‘22 Guidance $USD FY 2022 Guidance Total revenue $345-355 million Annual SaaS revenue growth 23-25% Subscription term license $32-34 million revenue Adjusted EBITDA1 margin 16-19% 1 Adjusted EBITDA is a non-IFRS measure. See “Non-IFRS and other Industry Measures” in Slide 2 and 3, “Forwar
Slide 24: Multiple vectors for accelerating growth
Multiple vectors for accelerating growth AWARENESS OF NEED FASTEST IN- MID-MARKET FOR SUPPLY CHAIN PRODUCTION GO- AND VARS TRANSFORMATION LIVE (RapidStart) EXPAND THE TAM PRODUCT/TAM RETAIL MARKET OPPORTUNISTIC EXPANSION THROUGH ACQUISITIONS BUILD/BUY/PARTNER Slide 24 Copyright © 2022 Kinaxis. All R
Slide 25: Experienced leaders
Experienced leaders Management Board Ian Giffen (Chair) • Corporate Director to public and private technology companies and investment funds Former Chairman Descartes Inc , former board member of Macromedia, Opentext, John Sicard, CEO • Ruggedcom , Absolute software • 23 years with Kinaxis Angel Men
Slide 26: ESG at Kinaxis
ESG at Kinaxis In 2021, we released our second Global Impact Report. Slide 26 Copyright © 2022 Kinaxis. All Rights Reserved.
Slide 27: Investment highlights
Investment highlights 1 Supply chain planning undergoing a renaissance with increasing C-suite focus / priority 2 Pure-play supply chain planning leader of scale taking share in a large, rapidly growing market 3 Highly differentiated technology platform leveraging unique concurrent planning techniqu
Slide 28: Know sooner. Act faster.
Know sooner. Act faster. Rick Wadsworth rwadsworth@kinaxis.com 613-907-7613