For personal use only

Transcription

1 Investor Presentation September 2017

2 Executive Summary ComOps provides essential Optimisation and Workforce Management (WFM) solutions to a blue chip client base High margin, recurring revenue streams High customer retention rates (>95%) Marquee client base (some of Australia s most recognisable brands) Strong in retail, hospitality, education, transport, ports & government Small global footprint in Ports & Aviation with Marquee clients WFM/HCM Global Market (US$) Growth 9.2% from $14.5b (2017) to $22.5b (2022) MAM Enterprise clients moving to cloud solutions, but 30% will still need point solutions for specific requirements A ComOps advantage Australian growth opportunities Build from market leading client base clear & refined sales focus Lead market introduction of real-time workforce optimisation Develop strategic alliances and channel partnerships International growth opportunities Ports world class solution specifically tailored for port operators 1 st implementation now live at Port of Salalah, Oman Global rollout planned Aviation growing market position in Europe, ME & North America Retail Building on leading ANZ market position and following clients on their global roll-outs (sites now in Asia, Europe USA) New & Expanded Management Refreshed management team led by new CEO, Chris Fydler, ready to deliver on domestic and international growth opportunities Half Year Financial Results $4.84m in revenue, flat on PCP, and up 71% over 3 years Recurring revenue from existing clients stable Lower upfront revenue (move to SaaS & timing) EBITDA loss of $1m (up significantly) due to investment into: Development and 1 st implementation of new Ports solution Enhanced management, sales and professional services capability (ahead of revenue generation), and Debtor write-off (Indonesian client project) Outlook New clients = Revenue growth & high margins = strong profit growth Targeting profitability on current revenue, whilst retaining capability. Benefits of H1 investment now being seen with new client wins Business efficiency program savings >$0.7m pa to date, with further opportunities identified to achieve target ComOps is ready to build a global business of scale Global Ports opportunity >$100m pa Australian market opportunity is significantly larger than current size Workforce Optimisation developments will lead the market Strategic Alliances and Partnerships will drive market reach and scale 2

3 Overview of Business 3

4 Workforce Management Solutions ComOps WFM is a comprehensive, modular, integrated WFM solution that optimises labour effectiveness by: Rosters the "right personnel at the right location at the right time" Ensures compliance with employment awards and fatigue regulations Enables customers to make proactive labour cost decisions based on forecast revenue, operational imperatives, asset utilisation and other KPI s Configures to the unique needs and workflows of individual customers KEY PRODUCT OFFERINGS Rostering & Scheduling Time & Attendance Mobile Solutions Real Time Rostering HCM / Payroll Integration EBA / Awards Interpretation Work, Health & Safety Optimisation KEY INDUSTRIES Retail Hospitality Transport & Health Ports Airports Government GLOBAL MARKETS Australia New Zealand Europe Middle East North America 4

5 Sector & Geographic Overview ComOps WFM solutions have leadership positions in selected sectors. ANZ generates 85% of revenue, with strong a market presence in: Retail Hospitality (hotels, restaurants, recreation) Transport (including Ports) Government Services Internationally, ComOps has a small growing presence in: Aviation / Airports Ports, and Australian retail customers expanding globally Clients in 19 countries across five continents New Ports solution (1 st implementation) now live in Oman Office locations Global customer locations Clients are supported by 60 staff across three countries (Australia, UK and Malaysia) 5

6 Key Attributes of ComOps WFM High Recurring Revenue Industry solutions delivered either on-premise or SaaS (cloud) Essential service and multi-year contracts 65% of revenues are recurring High Customer Retention ComOps solutions are mission critical for day-to-day operations Solutions developed to address specific industry requirements and then configured to the customers unique workflows Industries targeted have complex workplace environments and significant labour costs Customers are resistant to the risk of technology change, configuration changes, workflow changes and the links to Payroll Revenue retention has averaged 95% over the past 4 years Global Growth Opportunities Ports World class solution specifically tailored for port operators, developed on the core ComOps WFM platform ComOps has reinvested profits from its existing base and undertaken substantial investment in FY16 and H1FY17 1 st new system implementation now live at Port of Salalah, Oman Potential for global rollout (>$100m pa) Aviation/Airports and Retail Growing Aviation market position in Europe, ME & North America Building on leading ANZ Retail market position and following clients on their global roll-outs (sites now in Asia, Europe USA). Strong Market Position and Margins ComOps has long term, market leading positions in a selected number of industries This has delivered strong, attractive and maintainable margins 6

7 Overview of Customers & Revenues Category # Customers 174 Revenue Sites Users Staff 2016 Revenue Category Definitions 5, k 402k $9.4m Healthcare 6% Administrative & Support 8% Recreation 4% Other 7% Transport & Logistics 23% Customers Sites Users Number of parties with whom ComOps has contractual relationships for supply of services Number of individual locations (stores, warehouses, etc) where staff are using a ComOps WFM solution Total number of team members utilising a ComOps WFM solution Government 8% Hotels & Restaurants 13% Ports & Airports 12% Retail & Wholesale 19% Staff Total number of customer employees 7

8 Operating Revenue Breakdown Operating revenue ($k) License Recurring 3,100 5,152 6,008 Services 2,825 2,344 2,425 Clocks & Other Total 6,212 8,181 9,377 % of revenue by type License 3% 6% 7% Recurring 50% 63% 64% Services 45% 29% 26% Clocks & Other 2% 2% 3% Total 100% 100% 100% Revenue Types License Revenue Recurring Revenue Services Revenue Other Revenue Enterprise license sales invoiced on sale of enterprise software SaaS license sales invoiced monthly Managed services invoiced monthly & quarterly Subscription revenue invoiced monthly Support & maintenance invoiced monthly, quarterly, and annually Professional services covering new & existing customers - installed base Ad-hoc Request for Development installed base New Time Recording Clock sales Royalties & commissions Interest 8

9 Recent Operating Performance (FY14 FY16) Growth over 3 years strong, though mainly acquisition led Profitability of core Australian markets deliver strong margins and have funded investment in new, market leading, Ports solution FY17 is a transformational year 9

10 Growth Strategies 10

11 For personal use only Growth Initiatives: Global Ports The Market Opportunity Global Market: 1,200 Container terminals (Ports) ComOps Target Market: 500 Ports (35-50%) Est. value per Port: $0.6m - $1m (av. $0.8m) over 4-5yr Port of Salalah Implementation 15 month business analysis, system feature development and testing to satisfy Port requirements Go-live in August 2017 with initial capability offering (Time & Attendance, Scheduling) Full functionality to be rolled out by October 2017 (including leave management) A major ComOps milestone ComOps Opportunity >$100m pa Relevant comparison: Terminal Operating System market leader, Navis now >60% market share ComOps customer base (>20 ports) Port of Salalah, Oman (APMT), 1st new system DP World (Senegal, Republic of Djibouti, Sydney), AMSA & QUBE, Australia Currently represents <5% of revenues ComOps market development strategy Delivers market leadership Delivers technology leadership The global Ports market has been observing and waiting APMT: Shortlisted for 33 ports DP World: Many ports waiting for POS Go-live Other major global operators (PSA & Hutchison) Existing ComOps customer base Then 3rd party independents Partners & channels as appropriate Target: 1 port per quarter; 3 ports pq; 6 ports pq 11

12 Growth Initiatives: Realtime Workforce Optimisation Natural evolution from existing offering of workforce management into workforce optimisation Enables predictive and dynamic staff allocations based on current and projected customer needs Allows clients to ramp staffing up during peak times or to align with expected demands from marketing campaigns and save cost during troughs, resulting in improved customer service (higher revenue) and lower cost Partnering with complementary technology platforms to provide dynamic solutions to real time demand requirements Proof of Concept Running a pilot with an existing WFM customer (170+ stores for a well-known Australian retailer) to integrate customer traffic with ComOps WFM Pilot to deliver insight into optimal staffing levels Pilot to be run over 3 months, with a view to full store network roll-out by mid 2018 Significant opportunity for existing & new customers Indicative opportunity to increase revenue by 10-15% 12

13 Growth Initiatives: Wholesale Strategy ComOps current go-to-market is predominantly direct, via internal business development resources WFM clients also have needs around payroll, accounting, ERP, all of which are large, complex systems that must tie in to Rostering, Scheduling & Award interpretation COM is in discussions with several vendors of parallel business critical services to enter into mutually beneficial strategic alliances Alliance to confer preferred vendor status, and APIs to link systems Opportunity to increase lead generation for new business, improved user experience, even higher retention levels, greater share of wallet and increased market reach Current Status Already work with a number of complementary solution providers on an informal basis In discussions with a leading global accounting, payroll and payments software provider to enter an alliance In discussions with complementary solution providers on alliance and teaming arrangements Currently mutually assessing indicative market opportunity, and cost to realise Investment would be required to realise (development resources to build APIs, marketing collateral etc) 13

14 Half Year Financial Update 14

15 $'000 H Overview FY14-16 ComOps delivered growth in revenues, profits and cashflows H1FY17 reflects FY17 being a transformational year, with significant investment in Ports development, core solutions upgrade (HTML5 & mobility) and management reset (CEO) and enhancement (PS etc) $4.84m in revenue, flat on PCP, and up 71% over 3 years Recurring revenue from existing clients stable Lower upfront revenue (move to SaaS & timing) EBITDA loss of $1m (up significantly) due to investment (Note B) Development & 1 st implementation of new Ports solution Enhanced management, sales and professional services capability (ahead of revenue generation), Debtor write-off (Indonesian client project) Accounting policy changed move to 3 CGU s Highlight core solutions (Retail, Hospitality, Ports) Retain Retail/Hospitality goodwill, write-off aged goodwill & move to expensing all development Highlight strengths and core profitability 5,000 4,000 3,000 2,000 1, , Performance (Half-Yearly) A C Jun'14 Dec-14 Jun'15 Dec'15 Jun'16 Dec'16 Jun'17 B H1 initiatives and investments positively impacting 2H (New sales as reported and 1 st Go-live for ComOps Ports solution) -2,000 Revenue EBITDA Efficiency & expense reduction initiatives driven by new CEO (Note C) >$0.7m pa saving implemented Further opportunities identified to potentially double these savings, without reducing capacity & capability Targeting FY18 profit (on current revenue) A. Ports development capitalised B. Refer EBITDA commentary C. Refer Efficiency commentary 15

16 Revenue & Margin by Division (FY16) $5,000k Revenue Margin Post-Maintenance Margin Post-Development Contribution margin $4,000k $3,000k $2,000k $1,000k - ($1,000k) Health/Transport Retail/Hospitality Ports Airports Safety All business units deliver strong margins and contribution, except Ports which has been in investment phase. Following successful Go-Live at Port of Salalah, Ports now has the opportunity to deliver global growth and become the largest division with similar margins. 16

17 Focus on Shareholder Value ASX/NZX currently valuing SaaS and Enterprise Software companies on an average multiple of revenues of 3.9x 6.6x 12.0x 36% 45% Enterprise software businesses trade at an average of 15x EBITDA (Most listed SaaS businesses are lossmaking, so EBITDA multiples are a less helpful guide to value). Revenue growth rates, scale and profitability are key drivers. In recent years, ComOps has delivered solid growth in revenue, built its recurring revenue base and improved bottom-line performance. If ComOps can execute successfully and further accelerate these trends, opportunity exists for a significant re-rating of the company. 8.0x 4.0x 0.0x 1.0x 14% 6.6x 20% 3.9x ComOps ANZ SaaS ANZ Enterprise EV / Revenue Revenue growth (rhs) Notes: ComOps figures are for year ended 31 December 2016 Figures for comparable companies are for current financial year. Material outliers have been excluded Source Thomson Reuters 30% 15% 0% 17

18 Summary & Outlook ComOps provides essential Optimisation and Workforce Management (WFM) solutions to a blue chip client base High margin & recurring revenue streams (>65%), with high customer retention rates (>95%) Strong in ANZ Retail, Hospitality, Education, Transport, Ports & Government Small global footprint in Ports & Aviation Growth over 3 years strong (71% on H1), though acquisition led, and steady over PCP Profitability of core Australian markets have funded investment in new, market leading, Ports solution FY17 a transformational year: New leadership, enhanced capability and major technology development Consolidating Australian operations and right-sizing expense base Refining sales focus (Specific Australian industries, following customers globally and Global Ports) August Major milestone achieved with 1 st implementation of new ComOps WFM Ports solution Now positioned as Global market leader in Ports WFM ($100m pa revenue opportunity) Strategic alliances and partnerships will help drive market reach and scale ComOps is now ready to build a global business of scale 18

19 Contact Details Niall Cairns Non-Executive Chairman ComOps Limited Phone: Chris Fydler Chief Executive Officer ComOps Limited Phone: Chris Brooke Chief Financial Officer & Company Secretary ComOps Limited Phone: Registered Address: Level Arthur Street, NorthSydney NSW 2060 Australia Phone:

20 Disclaimer The information contained in this document is disclosed to you by ComOps Limited (ABN: ) (the Company). Nothing in this document shall form the basis of any contract or commitment, or constitutes investment, financial product, legal tax or other advice. The information in this document does not take into account your investment objectives, financial situation or particular needs. The Company has prepared this document and is not aware of any errors in this document, but does not make any recommendations or warranty, express or implied concerning the accuracy, likelihood of achievement or reasonableness of any assumptions, forecasts, prospects or returns contained in the information. Such assumptions, forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. This document is intended to provide background information only and does not purport to make any recommendations upon which you may reasonably rely without taking further more specific advice. Potential investors should make their own decision whether to purchase any shares in the Company based on their own enquiries. Personal investors are advised to seek appropriate independent advice, if necessary, to determine the suitability of the investment. Forward Looking Statements No representation or warranty is given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, projections or forward looking statements (including any forecasts, projections or forward looking statements relating to prospective financial information) contained in this presentation. Forecasts, projections and forward looking statements are by their nature subject to significant uncertainties and contingencies. You should make your own independent assessment of the information and seek your own independent professional advice in relation to the information and any action taken on the basis of the information. The presentation contains or may contain reference to certain intentions, expectations, and plans that may or may not be achieved. They are based on certain assumptions that may not be met or on which views may differ. The performance and operations of the Company may be influenced by a number of factors, many of which are outside the Company s control. No representation or warranty, express or implied, is made by the Company or any of its directors, officers, employees, advisers, or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. 20