Gentrack Investor-presentation-2016-Full-Year-results
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Transcript of Gentrack Investor-presentation-2016-Full-Year-results
www.gentrack.comwww.gentrack.com
T H E S O F T WA R E O FI N F R A S T R U C T U R E _
GENTRACK RESULTSF OR T H E F ULL Y EA R TO
3 0 S EPT EM BER 2 0 1 6
26 May 2016
www.gentrack.com
IMPORTANT NOTICE
This presentation contains 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 statements are based on management's and directors’ current expectations and assumptions regarding Gentrack’s business and performance, the economy and other future conditions, circumstances and results. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Gentrack’s actual results may vary materially from those expressed or implied in its forward-looking statements.
www.gentrack.com
• Business Overview
• Highlights
• FY16 Results and Analysis
• Outlook
• Appendix– GAAP reconciliation
– Supplementary information
Agenda_
www.gentrack.com 1
The Software of Infrastructure_• Gentrack’s vision is to be a recognised global leader in the provision of first class enterprise
application software to electricity, gas and water utilities, and airports
• Our customers include 53 utility sites and 73 airports, predominantly in NZ, Australia and the UK, where we are mission critical and deeply embedded
• Gentrack’s business model delivers a high level of recurring revenue and profitable growth, which we largely distribute as dividends
E L E C T R I C I T Y _ G A S _ W A T E R _ A I R P O R T S _
www.gentrack.com
Headlines_
• 4 new customers signed
• 5 existing customers started upgrades
• Engaged on 19 significant software projects for utilities and airports with 10 systems going live
• UK team moved to a new office in Thames Valley to support strong growth in the UK market
• 28% growth in headcount, year-on-year, to support projects and opportunities
2
www.gentrack.com
Financial Highlights_
$52.7m$42.1m (up 25%)
$16.7m$14.5m (up 16%)
$9.6m$9.4m (up 3%)
$18.8m$12.4M
7.70cps7.20cps
3
REVENUE EBITDA NPAT
CASH FINAL DIVIDEND
For the year to 30 September 2016, NZ$For the year to 30 September 2015, NZ$
www.gentrack.com
Comparative Results_
38.542.1
52.7
0.0
10.0
20.0
30.0
40.0
50.0
60.0
FY '14 FY '15 FY '16
Revenue NZ$m
12.914.5
16.7
0.0
5.0
10.0
15.0
20.0
FY '14 FY '15 FY '16
EBITDA NZ$m
3.4
9.4 9.6
0.0
2.0
4.0
6.0
8.0
10.0
12.0
FY '14 FY '15 FY '16
NPAT NZ$m
5.2
12.4
18.8
0.0
5.0
10.0
15.0
20.0
FY '14 FY '15 FY '16
Cash NZ$m
Revenue, EBITDA and Cash position showed strong increases.
Revenue is up 25% and EBITDA is up 16% against FY 2015.
A final dividend of 7.7cps is to be paid in December 2016. The dividend will be 100% imputed (NZ) and 0% franked (AU).
4
www.gentrack.com
Divisional Analysis_
• Airports and Utilities both delivered strong growth
• Australian and UK projects underpinned a 26% increase in the utilities business with high staff utilisation
• Airports grew revenues by 24% and won first Spanish language customer in South America.
35.6
44.8
0.0
10.0
20.0
30.0
40.0
50.0
FY '15 FY '16
Revenue NZ$m
12.514.0
0.0
5.0
10.0
15.0
FY '15 FY '16
EBITDA NZ$m
6.5
7.9
0.0
2.0
4.0
6.0
8.0
10.0
FY '15 FY '16
Revenue NZ$m
2.0
2.7
0.0
1.0
2.0
3.0
FY '15 FY '16
EBITDA NZ$m
Utilities
Airports
70%
14%
15%1%
Revenue x Sector
Energy Water Airports Other
5
www.gentrack.com
Geographic Analysis_
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Australia UK NZ Rest of World
Revenue NZ$m
FY'15 FY'16
• UK full year revenues growth of 75% in 2016
• UK revenues surpassed NZ revenues for the first time
• Australian revenue improved 22% as the result of ongoing utility projects
• The Rest of World revenues are up 26% in the first half year, reflecting project work with several US airports
50%
19%
7%
24%
Revenue x Region
Australia New Zealand ROW UK
6
www.gentrack.com
Revenue Type Analysis_
7
13.0 14.4
13.615.5
11.6
18.73.5
3.6
0.4
0.5
FY'15 FY'16
Annual Fees Support ServicesProject Services Licence FeesOther
Revenue NZ$m
RECURRING REVENUES ACCOUNT FOR 56% OF TOTAL FY’16.
7%
36%
29%
27%
1%
Licences Project Services Support Services Annual Fees Other
91% OF REVENUES FROM EXISTING CUSTOMERS
Revenue by Product
www.gentrack.com
Revenue Type Analysis - Divisional_
8
10.2 11.3
12.7 13.0
9.1
17.03.2
3.1
0.3
0.4
FY'15 FY'16
Annual Fees Support ServicesProject Services Licence FeesOther
Utilities NZ$m
2.8 3.1
0.9
2.52.5
1.80.2
0.5
0.0
0.1
FY'15 FY'16
Annual Fees Support ServicesProject Services Licence FeesOther
Airports NZ$m
+86%
+11%
-29%
+172%
+115%
+12%
+3%
www.gentrack.com
Staff Profile_
56%25%
19%
Staff x Region
New Zealand Australia UK
• Headcount increased by 28% over prior year
• Recruitment was a key focus with staff numbers increasing in all 3 regions
• Continued leverage of NZ based resources on all projects delivering cost advantages
• Continued focus on upskilling, learning and development
217
277
100120140160180200220240260280300
FY'15 FY'16
September Headcount
8
9%5%
86%
Staff x Role
Corporate Sales/Marketing Technical
www.gentrack.com
Outlook_
• Remain confident of long term growth driven by Australian and UK market opportunities and structural reforms in power and water sectors
• Expect to continue to deliver long term revenue and EBITDA growth of 10%+, albeit that results may be impacted by the timing of projects
• Continued investment in people, systems and solutions to support long term growth
• Selective consideration of acquisition opportunities within our core business areas.
9
www.gentrack.comwww.gentrack.com
T H E S O F T WA R E O FI N F R A S T R U C T U R E _
Outlook_
9
APPENDICES
www.gentrack.com
GAAP to non-GAAP profit reconciliation
Period12 Months30-Sep-15
12 Months30-Sep-16
Reported net profit for the period (GAAP) 9,365 9,608
Add back: amortisation 2,017 2,015
Add back: tax adjustment for amortisation (560) (533)
NPATA 10,822 11,090
Add back: net finance expense/(income) (808) 1,208
Add back: income tax expense less tax adjustment above 4,165 4,067
Add back: depreciation 285 362
EBITDA 14,464 16,727
10
Appendix_GAAP to non-GAAP Profit Reconciliation_
www.gentrack.com
GENTRACK PROVIDES MISSION CRITICAL SOFTWARE FOR ENERGY UTILITIES, WATER COMPANIES AND AIRPORTS
• Organic growth accumulating more than 2 decades of deep domain expertise and IP
• Deeply embedded solutions - long term customer relationships
• Highly flexible and scalable enterprise software – on premise or in the cloud
• Develop, implement and support our own solutions
• Blue chip customer base who rely on Gentrack’s mission critical systems
www.gentrack.com
PROVEN Solutions that enable change and innovation_
• PRICE AND TARIFF MANAGEMENT
• MULTI-PRODUCT BILLING
• CUSTOMER SERVICE+ CALL CENTRE AND SELF-SERVICE
• CUSTOMER SIGN-UP AND SWITCHING
• UTILITY WORKFLOW MANAGEMENT
• CREDIT AND COLLECTIONS
• METER DATA MANAGEMENT
• FLIGHT DISPLAY SYSTEMS
• AIRPORT COLLABORATIVE DECISION MAKING (CDM)
• RESOURCE MANAGEMENT –GATES, CHECK-IN; BAGGAGE
• BILLING – AERO AND NON-AERO
• AIRPORT OPERATIONAL DATABASE
• OPERATIONAL REPORTING
• AIRPORT MESSAGE BROKERING
www.gentrack.com
A HIGHLY DIFFERENTIATED proposition_
• Mission critical core enterprise systems for utilities and airports
• An IP company demonstrating continual investment in R&D
• We solve complex integration challenges for our customers – high value unique skills
• Deeply embedded solutions – not easily replaced once deployed
• Best of Breed – targeted, cost effective with a clear ROI
www.gentrack.com
UTILITY Market Growth Drivers_
DEREGULATING ENERGY SECTOR
- Retail contestability and distributed
energy generation
SMART METERROLLOUTS
- Driving structural change in UK and
Australia
UK WATER CONTESTABLE
- Non-household 2017; Households by 2020
RISE OF NEW RETAIL MODELS
- Grabbing market share from the
Incumbents
SMART GRID INVESTMENT
- Regulated changes to market
interactions
Change creates Opportunity
AGING LEGACY BILLING SYSTEMS- Not supporting
competitive markets
www.gentrack.com
G R O W T H O P P O R T U N I T I E S I N E X I S T I N G M A R K E T S _
UK/IRELAND150 Utility Sites
AUSTRALIA285 Utility Sites
UK4%
AUST8%
NEW ZEALAND62 Utility Sites
NZ33%
THREE CORE REGIONS FOR UTILITIES GROWTH• Australia• New Zealand• United Kingdom & Ireland• 53 Utilities use Velocity
Est. Market
Share
AIRPORTS GLOBALLY• Tier 1&2 - Commercial airports
and aviation authorities• 15% market share of ‘Top 100’• 73 airport sites use Airport 20/20
AIRPORTS~17,500 Commercial Sites globally
<5%
www.gentrack.com
Growth – FY16_
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
REVENUE EBITDA
7 Year CAGR- Revenue: 12.2%- EBITDA: 11.6%
All figures in NZ $
NZ$000 FY15 FY16 ∆ %
Revenue 42,069 52,734 25%
EBITDA 14,464 16,727 16%
NPATA 10,822 11,090 2%
NPAT 9,365 9,608 3%
Net Cash Balance 12,372 18,818
Final Dividend (cps)
7.2 7.7
Annual Dividend (cps)
11.3 11.9
CONSTANTCURRENCY*
53,745
17,107
11,470
9,987
* Based on FY15 exchange rates