Trade Window Holdings Ltd. · NZX:TWL
Trade Window — H1 FY23 Earnings Presentation
31 slides from Trade Window's earnings presentation, November 2022
Slide 1: Investor presentation
Investor presentation Financial results for the six months to 30 September 2022
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Trade Window Holdings Limited (TradeWindow). All information is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise. Information in this presentation: • is for general info
Slide 3: Agenda
Agenda Financial results overview 5 Progress against our strategy 9 Financial overview 14 Summary and outlook 22 AJ Smith Deidre Campbell CEO & Director Chief Financial Officer Investor presentation 3
Slide 4: The global trade problem (and opportunity)
The global trade problem (and opportunity) Processes that currently support the global trade finance ecosystem are labour intensive and predominantly paper-based. A single transaction often requires the interaction of more than 20 entities, and involves between 10 and 20 paper documents and 5,000 da
Slide 5: Solid business momentum and progress
Solid business momentum and progress • 16% increase in trading revenue as a result of organic growth and prior acquisitions. 34% increase on 1H 22. • Encouraging market demand for solutions - continued increases in customer numbers. • Pleasing progress on strategic priorities including advancing the
Slide 6: Key performance indicators
Key performance indicators $2.4m 482 $804 pm Trading Average Revenue Customers revenue Per Customer Up 16%; up 34% on 1H22 Up 28 on FY22 (organic 19, acquired 9) Up 13% on FY22 (Organic ARPC up 11%) 50% 98% 58% Customer % of expenses Gross Margin R&D and retention rate Commercialisation No change Up
Slide 7: Financial summary
Financial summary H1 FY23 H1 FY22 H2 FY22 $000 6 months 6 months Change % 6 months Change % Revenue Trading revenue 2,407 1,802 34% 2,075 16% Other income 274 429 -36% 571 -52% Total income 2,681 2,231 20% 2,646 1% Costs Total expenses 8,561 6,290 36% 8,134 5% Profit (Loss) EBITDA1 (5,880) (4,059) 4
Slide 8: Business highlights
Business highlights Momentum in new sales, global trade platform New sales driving strength in geographic and sector diversity. Customers Product • 19 new customers in A&NZ • Advanced progress on global trade (excludes Rfider customers) platform Global trade platform on track. Global • 19 mid-market
Slide 9: Progress against our strategy
Progress against our strategy
Slide 10: A global platform for end-to-end digital trade
A global platform for end-to-end digital trade Data supply Data demand Software to capture, Permissioned access to format and aggregate trusted data needed by data to meet trade supply chain partners to compliance requirements deliver their service Investor presentation 10
Slide 11: Pleasing progress on building the global trade platform
Pleasing progress on building the global trade platform Achievements in 1H FY2023 2H 2023 focus FY2024/FY2025 focus Released global documentation system • ExpressDoc first commercial release; process • TradeWindow Freight web version first commercial ExpressDoc (beta) and feature enhancements rele
Slide 12: U.S. footprint secured with FoodChain ID
U.S. footprint secured with FoodChain ID Partnership agreement announced in October 2022, follows Rfider acquisition • TradeWindow has staked a position in the huge U.S. and European food assurance market, announcing a partnership Over 30,000 companies across the global supply chain rely on with Foo
Slide 13: People & Culture
People & Culture FTE equivalent by country FTE equivalent by team • Total FTE equivalent at 30 September 2022 was 101. 14% • 12 of these were new roles as part of planned investments, with 9 being research & development 18% roles. 49% 1 • A key focus has been faster employee hiring and onboarding of
Slide 14: Financial overview
&R TradeWindow Financial overview
Slide 15: Financial performance
Financial performance Trading revenue up 16% driven by organic growth and acquisitions H1 FY23 H1 FY22 H2 FY22 Income Statement $000 6 months 6 months Change % 6 months Change % • Trading revenue up 16% to $2.4m, Trading revenue 2,407 1,802 34% 2,075 16% excluding acquisition up 14% Other income 274
Slide 16: Revenue by type and country
Revenue by type and country Sustainable revenue growth – both organic and acquired H1 FY23 H1 FY22 H2 FY22 Revenue by type $000 6 months 6 months Change % 6 months Change % • Organic trading revenue growth of 14% delivered Transactional 1,114 670 66% 952 17% the majority of growth in revenue - drive
Slide 17: Average revenue per customer (per month)
Average revenue per customer (per month) ARPC up for both organic and acquired businesses Organic business H1 FY23 6 months FY22 12 months Change % • Increased monthly average revenue per customer (ARPC) for organic business – up Subscriber1 customer nos. period end 472 454 4% 11% Ave Subscriber cus
Slide 18: Operating expenses / staff numbers
Operating expenses / staff numbers Reflect planned investments and disciplined execution H1 FY23 H1 FY22 H2 FY22 Employee benefits expense $000 6 months 6 months Change % 6 months Change % • Previously signaled investment in headcount. Cost of goods sold 903 659 37% 825 9% Disciplined approach to hi
Slide 19: Balance sheet
Balance sheet Capital injection and acquisitions drive lift in total assets H1 FY23 FY22 $000s Movements 6 months 12 months Change % Current Assets 8,668 7,852 10% Cash balance $7.3m up $1.4m on last year end Non-Current Assets 15,363 8,663 77% Acquired Software $3.0m & Goodwill $4.8m Total Assets 2
Slide 20: Cashflow
Cashflow Balance date cash and cash equivalents of $7.3m H1 FY23 H1 FY22 H2 FY22 $000s 6 months 6 months Change % 6 months Change % • Balance date cash and cash equivalents of Operating Activities $7.3m. Cash Received from Customers 2,310 2,077 11% 1,962 18% • Key activity during the period: Cash Pa
Slide 21: Average revenue per customer by revenue type (per month)
Average revenue per customer by revenue type (per month) H1 FY23 FY22 Predominant brand 6 months 12 months Change % Transactional revenues $000 969 1,342 Prodoc/Cube + Speedi Ave Transactional customer nos. 201 159 26% Ave monthly Transactional revenues per segment customer 811 702 16% Subscription
Slide 22: Summary and outlook
&R TradeWindow Summary and outlook
Slide 23: Summary
Summary • Encouraging demand for our solutions including those from recent acquisitions. • Clear progress on strategic priorities, advancing global trade platform and delivering product enhancements • Diversified customer base, increasing sales to existing customers • Focused on operational efficien
Slide 24: FY23 outlook
FY23 outlook TradeWindow is experiencing encouraging demand for its products and in the six months to 30 September won a large number of contracts that include implementations. Many of these implementations are continuing and as a result recurring revenue from these new wins will be realised in futu
Slide 25: Q&A
&R TradeWindow Q&A
Slide 26: Appendix
&R TradeWindow Appendix
Slide 27: Company overview
Company overview TradeWindow is the developer of innovative software solutions used by exporters, importers, freight forwarders, customs brokers Customer base of 4822 organisations Proven solutions with material revenue streams Team of 1011 subject matter experts spanning six countries Where we have
Slide 28: 450+ organisations use our technology
450+ organisations use our technology Our customers include exporters, importers, freight forwarders and customs brokers Top 10 Customers % of trading revenue Customer base by sector Note, logos don’t correspond to top 10 customers. Investor presentation 28
Slide 29: Our opportunity
Our opportunity TradeTech is an emerging market with initial solutions displacing manual paper-based processes, emails and spreadsheets Demand for food traceability solutions is estimated to be worth $27 billion1 worldwide Cross-sales to date have proven that value added services beyond trade Produc
Slide 30: Our strategy
Our strategy Strategic summary Trusted digital trade facilitation delivered through a global trade platform that connects our customers with their supply chain ecosystem Our vision End-to-end connectivity Our strategic priorities across global supply chains Land Grow Unify People Market penetration
Slide 31: Our product strategy
Our product strategy We’re converging proprietary and acquired solutions into a single global trade platform Suite of solutions Converged solutions Global trade platform Acquire and build key solutions needed to Converge solutions through secure cloud Network of networks that connects all deliver en
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