Leigh Jasper, CEO Steve Recht, CFO For personal use only · presentation is based on management ......

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1 Featured Project: Marina Bay Sands Casino Resort, Singapore Trusted by the world’s largest projects 1H FY16 Results 23 February 2016 Leigh Jasper, CEO Steve Recht, CFO For personal use only

Transcript of Leigh Jasper, CEO Steve Recht, CFO For personal use only · presentation is based on management ......

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Featured Project:

Marina Bay Sands Casino Resort, Singapore

Trusted by the world’s largest projects

1H FY16 Results

23 February 2016

Leigh Jasper, CEO

Steve Recht, CFO

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Agenda

Tod BottariInvestor RelationsWelcome

Steve RechtCFOFinancial overview

Leigh Jasper CEOBusiness overview

Leigh Jasper CEO Outlook

AllQ&A

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Safe harbour statement

CurrencyAll amounts in this presentation are in Australian dollars unless otherwise stated.

No offer of securities Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell Aconex securities in any jurisdiction.

Reliance on third party information The views expressed in this presentation contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by Aconex.

Forward-looking statementsThis presentation includes certain forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Aconex. These factors may cause actual results to differ materially from those expressed in the statements contained in this presentation. For example, the factors that are likely to affect the results of Aconex include its ability to attract and retain customers, competition from other market participants, challenges faced by its international expansion plans, or difficulties associated with its technology systems.

Financial information All financial information has been prepared and reviewed in accordance with Australian Accounting Standards. Certain financial data included in this presentation is ‘non-IFRS financial information.’ The company believes that this non-IFRS financial information provides useful insight in measuring the financial performance and condition of Aconex. Readers are cautioned not to place undue reliance on any non-IFRS financial information and ratios included in this presentation.

Market share information

All market share information in this presentation is based on management estimates and internally available information, unless otherwise indicated.

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Agenda

AllQ&A

Tod BottariInvestor RelationsWelcome

Steve RechtCFOFinancial overview

Leigh Jasper CEOBusiness overview

Leigh Jasper CEO Outlook

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Rapid revenue growth in ANZ and internationally – significant profit increase

Total revenue

$55.7 million

46%1

ANZ revenue

$23.9 million

39%

International revenue

$31.8 million

52%

NPAT2

$5.3 million4

from ($2.1) million

EBITDA2

$7.0 million3

from $0.5 million

Gross margin

76%

from 74%

Dubai Airport Concourse 3 | US$4.5B project, Dubai, U.A.E.

1) 34% on a constant currency basis. 2) From core operations.3) $6.5 million including costs of $0.5 million related to acquisitions of Worksite and CIMIC Group INCITE Keystone business.4) $4.8 million including acquisition-related costs. Included one-time income tax benefit of $1.7 million on recognition of portion of tax losses.

University of Cambridge | US$1.7B project, Cambridge, England, U.K.5

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Strong revenue growth trend with high gross margin

24.8

32.138.1

55.7

52.3

66.2

82.4

FY13 FY14 FY15 1H FY16

1st Half Full Year

17.4

23.7

28.0

42.136.4

49.0

61.9

FY13 FY14 FY15 1H FY16

1st Half Full Year

Gross Profit (Gross Margin)Revenue

$ millions $ millions

Note: All financial information is shown on a core operations basis.1) YoY – Year over year, from 1H FY15 to 1H FY16. CAGR – compound annual growth rate, from 1H FY15 to 1H FY16.

(70%)

(74%)

(73%)

(76%)

Growth1

46% YoY31% CAGR

Growth1

50% YoY34% CAGR

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Growth and scale driving increasing profitability

7.8

11.6

14.5

26.1

16.6

25.0

34.0

FY13 FY14 FY15 1H FY16

1st Half Full Year

(5.4)

(0.4)0.5

7.0.2

(10.0)

(2.3)

3.0

FY13 FY14 FY15 1H FY16

1st Half Full Year

Operating Contributions (Contribution Margin) EBITDA

$ millions $ millions

Growth1

80% YoY50% CAGR

(31%)

(36%)

(38%)

(47%)

12% EBITDAmargin

Note: All financial information is shown on a core operations basis.1) YoY – Year over year, from 1H FY15 to 1H FY16. CAGR – compound annual growth rate, from 1H FY15 to 1H FY16.2) $6.5m including acquisition-related costs of $0.5m.

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3. Drive scale

Consistent execution of a diversified, leveraged growth strategy

1. Grow the network

2. Expand product breadthAconex strategy

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The Aconex model – building our global user network

Growth of the user network for a major hospital project in Australia

Customer benefits:

• Connect entire project team

• Streamline project-wide information flows

• Automate mission-critical cross-company processes

Grow the network

Driving network effects:

• ‘Aconex Unlimited’

• Trusted neutrality

• Scalability

Capturing big data:

• Serving more projects around the world

• Order of magnitude more data than direct competitors

• 1.7 billion documents1

1) Documents and correspondence on Aconex.

Year 1 Year 2 Year 3 Year 4

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Network effects drive new customer and project wins

Project networks seed new business through referrals, upsells and stickiness

Example of customer network effects starting with Brookfield Multiplex

Grow the networkF

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Enterprise deals drive network and revenue growth

Continued growth in enterprise agreements with global construction leaders

4456

59

41

1H FY16 Total RevenuePercent

Enterprise Project

Increasing standardisation of Aconex across customer project portfolios

Grow the network

• 42 enterprise deals in 1H FY16• Accelerating shift from internal systems

to neutral, project-wide collaboration

1H FY16 ANZ RevenuePercent

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Field

Inspections

OperateConstructDesignBidPlan

Document

Control

RFIs &

Change

Orders

Bidding &

Tenders

Workflows

&

Approvals

BIM

Collaboration

Submittals Handover

to

Operations

Cost

Management

Dashboards & Insights

Expand product breadth

Aconex connects teams on critical project-wide processes

Save money. Increase productivity. Manage project risk.

69% growth in R&D investment – expand product breadth to increase value to customers.

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Connected cost product integration on track for roll-out less than 7 months from acquisition

• Worksite acquisition in July 2015

• Integration of connected cost solution – phase 1 complete

• Opening new, consolidated San Francisco office in March

• Rolling out product to selected customers

• Full commercial launch later in 2016

• Strong customer interest across all regions

1) PricewaterhouseCoopers, Oxford Economics, Capital Project and Infrastructure Spending Outlook to 2025 (2014).2) Booz Allen Hamilton, Capital Project Execution in the Oil and Gas Industry (2006).

• US$1T annually lost to cost overruns1

• 35% of projects exceed budget and schedule by over 10%2

Expand product breadth

Project-Wide Collaboration & Cost Processes

Project cost control & EVM

Project control, budgets, forecast & committed costs, schedule.

+

Cross-company information flowswith cost and schedule impacts

Trap potential cost implications early

Real-time visibility for

decision-making

Single versionof the Truth

Integrated tointernal systems

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Platform integration of INCITE Keystone on track

• Formed strategic partnership with CIMIC Group on 4 August 2015

• Integrated INCITE Keystone and Aconex teams in new Sydney office

• Aligned service and support resources

• Migrated INCITE Keystone service delivery platform to Aconex

Note: The strategic partnership agreement between Aconex and CIMIC Group was signed on 5 August 2015, subsequent to the end of FY15.

Expand product breadth

Dubai Metro | US$7.8B project, Dubai, U.A.E.14

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International business units are accelerating and following the ANZ trajectory of increasing margins with scale

1H FY16 Regional PerformanceContribution $m and margin as percent

Drive scale

EMEA 15.6 7.0 45%

Americas 10.0 1.5 15%

Asia 6.2 0.7 11%

ANZ 23.9 17.0 71%

0

10

20

FY12 FY13 FY14 FY15 FY16

64%

51%

29%

39%

Revenue by Region – 1H$m

1H FY16 Growth

Revenue Contribution MarginRegion1

International: 57% of

total revenue

1) Year started – ANZ 2001, EMEA 2003, Asia 2005, and Americas 2006.

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The world’s largest owners and contractors use Aconex 19 new top 5001 customers

• Austin Industries: SFO airport (US)

• Dragados: California High Speed Rail (US)

• Enbridge: Hardisty Crude Oil Terminal (Canada)

• Fluor: Sunoco plant (US)

• Houston Airport System (US)

• Tesla Motors: battery factory (US)

• Beijing Boton Galasys Technology: CCCC Industrial Park (China)

• Hong Kong Airport Authority

• Hyundai E&C: KNPC refinery (Kuwait)

• Imperial Pacific: Grand Mariana Hotel & Casino Resort (Saipan)

• Obayashi: KMG Bridges (Bangladesh)

• Swire Properties: Dalian TaiKoo commercial project (China)

ANZ 39% growth YOY

Key Project Wins Enterprise Agreements Won

Americas 51%Key Project Wins Enterprise Agreements Won

growth YOY

Asia 29% growth YOY EMEA 64%Key Project Wins Enterprise Agreements Won

growth YOY

• Dubai World Trade Center

• Exxon Mobil: West Qurna oilfield (Iraq)

• IDRIS JV: Doha MTS (Qatar)

• SHBC: Al Adan Hospital (Kuwait)

• Salini Impregilo: Copenhagen Cityringen Metro (Denmark)

• Saudi KAD Contracting: Saudi Aramco gas pipeline

• Billbergia Group: Wentworth Point

• Precinct Properties New Zealand: Downtown Tower (Auckland)

• Ridong (Gold Coast) Development: Jewel Surfers Paradise

• SKYCITY Entertainment Group: Adelaide Casino expansion

Key Project Wins Enterprise Agreements Won

• 86 of 100 top contractors• 30 enterprise agreements

Diversified customer base by region and industry vertical

1) The top 500 owners and contractors based on annual project spend.

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Agenda

AllQ&A

Tod BottariInvestor RelationsWelcome

Steve RechtCFOFinancial overview

Leigh Jasper CEOBusiness overview

Leigh Jasper CEO Outlook

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$ millions 1H FY151 1H FY161

Prospectus

forecast2

Forecast

update3

Revenue 38.1 55.74 44.9 51-53

Gross profit 28.1 42.1 34.1 ‒

Gross margin 74% 76% 76% ‒

Operating costs 29.5 37.75 31.1 ‒

EBITDA 0.5 7.06 5.4 5.5-6.5

NPAT (2.1) 5.37 2.6 2.5-3.51) Operating costs, EBITDA and NPAT were based on core operations, which excluded one-time IPO costs,

foreign currency exchange losses and gains/losses associated with Francisco Partners investment.2) IPO prospectus dated 25 November 2014.3) ASX market disclosure dated 25 August 2015.4) $2.8m and $1.8m of revenue growth due to CIMIC Group partnership and currency movement,

respectively.

Revenue, EBITDA and NPAT exceed forecast update

1H FY16 results from core operations

Indira Gandhi International Airport | US$2B project, New Delhi

5) $38.3 million including acquisition-related costs of $0.5 million.6) $6.5 million including acquisition-related costs of $0.5 million.7) $4.8 million including acquisition-related costs of $0.5 million. Included one-time

income tax benefit of $1.7 million on recognition of portion of company’s tax losses.

Tocumen International Airport | US$679M project, Panama City, Panama18

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Revenue growth outperforms forecast

New business from enterprise agreements

FX

46% growth YoY

Constant currency revenue growth = 34%

Strong core operating performance

Foreign currency exchange movements

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Diversified customer mix balances growth and cyclicality

41

45

14 Commercial & ResidentialConstruction

Government & Infrastructure,Power, Other

Mining, Oil & Gas

1H FY16 revenue by vertical sectorPercent

Royal Adelaide Hospital | US$1.9B project

43

1811

28

Sales

ANZ

Americas

Asia

EMEA

1H FY16 revenue by regionPercent

New York City Hall | US$100M project, New York20

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9.5

15.6

2.7

7.0

1H FY15 1H FY16

159%

All regions deliver positive operating contributions

17.2

23.9

11.6

17.0

1H FY15 1H FY16

Revenue1

Operating Contribution

4.8

6.2

1H FY15 1H FY16

6.6

10.0

(0.3)

1H FY15 1H FY16

1.5

Americas

Asia EMEA

ANZ

39%

29%

51%

64%

Note: All financial information is based on core operations. 1) Constant currency revenue growth rates: Americas 31%, Asia 14%, EMEA 37%.

$ millions $ millions

$ millions $ millions

47%

0.5

0.7

Following growth trajectory of ANZ

25%

Drive scale

71% margin

11% margin

15% margin

45% margin

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Visibility of forecasted revenue is high

97

FY16

78

CY16

38.7 37.0

45.842.9

ANZ Americas Asia EMEA

Forecasted revenue contracted1

Percent

Near Term: 1-2 Yrs.

Battersea Power Station | US$13.6B project, London UK • Qatar Rail | US$36B Project

Average subscription terms – 1H FY161

Months

1) Includes accretive impact of CIMIC Group partnership.

Venetian Macau | US$1.8B project, Macau

Average40.6

22

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28.1

42.1

1H FY15 1H FY16

Cost control on strong revenue growth drives profitability

7.7 10.3

17.320.9

4.6

7.1

1H FY15 1H FY16

31%

• 31% expense growth on 46% revenue growth• R&D cash expenses of $5.5m in 1H FY15 and $9.3m in 1H FY16 – 69% increase• Variable S&M expenses to support regional and vertical growth opportunities

Engineering & Product Development

Sales & Marketing

General & Administrative

21%

34%

$ millions, percent

74% 76%

50%

$ millions

29.5

38.3

Gross profit Operating costs Growth YoY

54%

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Strong cash position maintained through acquisitions

$millions

Reef Island | US$1.2B project, Bahrain

Total Assets$millionsTotal Cash and Cash Equivalents1

67.0

77.8

31 December 201530 June 2015

29.1

19.8

31 December 201530 June 2015

1) Includes restricted cash.

Acquisition payments of $9.6 million

Mid Tapti Gas Field | US$500M project, India24

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Agenda

Tod Bottari Welcome

Steve RechtFinancial overview

Leigh Jasper Business Overview

Leigh Jasper, CEO Outlook

AllQ&A

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Market trends driving growth for Aconex

Industry:

• Increasing project complexity

• New project delivery structures – PPPs, IPD, JVs, etc.

• Regulation and compliance

Trends reinforcing construction collaboration software

Technology:

• Broad-based move to the cloud / SaaS

• Industry technology shifts – mobility and BIM

• Increasing data sophistication – Big Data, Internet of Things

Increased demand for

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We have significant opportunities for continued strong growth

Yas Island | US$40B project, Abu Dhabi, U.A.E.Eureka Tower | US$467M project, Melbourne, Australia• Battersea Power Station | US$13.6B project, London, U.K.

• US$5.6-billion TAM with <10% penetration1

• Network effects driving new customer and project wins and opportunities

• Shift from internal systems to project-wide collaboration

• M&A for bolt-on technologies and market consolidation

• Increasing operating leverage with global scale

1) Frost & Sullivan, Independent Market Report on the Construction Collaboration Solutions Market (2014).

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Business outlook balances profitability and growth investments

Yas Island | US$40B project, Abu Dhabi, U.A.E.

Expand product breadth

Drive scale

Grow the network

Strategy Financial results

Balanced growth and profitability:

Increasing revenue

Increasing earnings

Eureka Tower | US$467M project, Melbourne, Australia28

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Agenda

Tod Bottari Welcome

Steve RechtFinancial overview

Leigh Jasper Business Overview

Leigh Jasper Outlook

AllQ&A

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Featured Project:

Dubai International Airport | US $4.5B Value

Trusted by the world’s largest projects

Thank you

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Appendix A: Reconciliation of IFRS statutory accounts to EBIT and EBITDA from core operations

For year ended 31 December 2015 ($000's)

Income statement per IFRS statutory

accounts

Class A Preference

Shares Listing fees

Foreign currency

losses

Income statement from core operations

Depreciation and amortisation

EBITDA from core operations

Revenues 55,669 - - - 55,669 - 55,669

Cost of revenues ( 13,560) - - - ( 13,560) 222 ( 13,338)

Gross profit - - - - - - -

Engineering and product development ( 7,062) - - - ( 7,062) 1,399 ( 5,663)

Sales and marketing ( 20,897) - - - ( 20,897) 8 ( 20,889)

General and administrative ( 10,505) - 0 771 ( 9,734) 963 ( 8,771)

Profit before interest and tax (EBIT) 3,645 0 0 771 4,416 2,592 7,008

Finance income / (expense) 85 0 - - 85 - -

Profit/ (loss) before income tax 3,730 0 0 771 4,501 - -

Income tax expense 822 - - - 822 - -

Profit / (loss) for the half-year 4,552 0 0 771 5,323 - -

For year ended 31 December 2014($000's)

Income statement per IFRS statutory

accounts

Class A Preference

Shares Listing fees

Foreign currency

losses

Income statement from core operations

Depreciation and amortisation

EBITDA from core operations

Revenue 38,080 - - - 38,080 - 38,080Cost of revenues ( 10,028) - - - ( 10,028) 298 ( 9,730)Gross profit - - - - - - -

Engineering and product development ( 4,565) - - - ( 4,565) 1,158 ( 3,407)Sales and marketing ( 17,265) - - - ( 17,265) 6 ( 17,259)General and administrative ( 14,025) - 5,149 1,195 ( 7,681) 466 ( 7,215)

Profit before interest and tax (EBIT) ( 7,803) 0 5,149 1,195 ( 1,459) 1,928 469

Finance income / (expense) 20,988 ( 20,979) - - 9 - -Profit/ (loss) before income tax 13,185 ( 20,979) 5,149 1,195 ( 1,450) - -Income tax expense ( 694) - - - ( 694) - -

Profit / (loss) for the half-year 12,491 ( 20,979) 5,149 1,195 ( 2,144) - -

Non-core adjustments, including acquisition-related costs

Non-core adjustments

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