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