GENTRACK GROUP LIMITED — AGM Information 2017

Feb 22, 2017

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GENTRACK GROUP LTD (GTK) ANNUAL MEETING

23 February 2017

www.gentrack.com

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CHAIRMAN’S ADDRESS John Clifford

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www.gentrack.com

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MISSION CRITICAL SOFTWARE FOR ENERGY UTILITIES, WATER COMPANIES AND AIRPORTS

• Organic growth accumulating more than 2 decades of domain expertise and IP

• • Mission critical and deeply embedded solutions

• Life time customer relationships - 53 utilities sites and 73 airports

• Highly flexible and scalable enterprise software – on premise or in the cloud

• • Business model delivers a high level of recurring revenue and profitable growth

• • Growing blue chip customer base.

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SHAREHOLDER ANALYSIS

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BY COUNTRY
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8.6%
0.4%
37.6% 53.4%
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New Zealand Australia Canada Other

2092 77%

NUMBER OF HOLDING OF TOP 20 SHAREHOLDERS SHAREHOLDERS

BY TYPE

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24.9%
31.0%
44.1%
Directors/Staff Institutions Retail
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31% 3 HOLDING OF INSTITUTIONS WITH DIRECTORS & STAFF HOLDING +5%

• All figures as at 7 October 2016 (Adjusted)

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FY16 RESULTS

% CHANGE ON FY15

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FY16 HIGHLIGHTS

• Strong performance with revenue 25% up & profit 16% up on FY15

• Results achieved despite a foreign exchange headwinds

• Focus has continued on delivering new projects for utilities and airports

• UK revenue up 75% with projects in the energy, water and airports

• • Dividend of 11.9 cps = 78% of NPATA reflects strong cash generation.

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UTILITY INNOVATION DRIVES GROWTH

• Rise of distributed generation, including Solar PV

• Growth in Electric Vehicles - charging on cheaper power overnight

• Technology enabled Demand Response

• i.e. curtailing power usage when it is in short supply

• Time-of-use domestic tariffs (e.g. free power on Sunday)

• App engaged consumers linked to smart home systems

• Home energy storage batteries – potentially a game changer

• Growth in multi utilities with bundled power, water and broadband

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STRATEGY - UNCHANGED

• Focus on profitable growth in our existing markets

• • Invest in product, people and systems to drive long term growth

• • Consider growth acquisitions in core airport and utility markets

• • Acquisition debt funding of up to 1.5x EBITDA

• • Selectively consider new geographic markets

• • Dividend policy of 70% to 80% of NPATA

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CEO'S ADDRESS Ian Black

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www.gentrack.com

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FY16 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.

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DELIVERING CONSISTENT RESULTS

NZ$000	FY16	∆ %		CONSTANT CURRENCY
Revenue	52,734	25%		53,745
EBITDA	16,727	16%		17,107
NPATA	11,623	2%		12,002
NPAT	9,608	3%		9,987
Net Cash Balance	18,818
Final Dividend	7.7 cps
Annual Dividend	11.9 cps

60 7 Year CAGR 50 - Revenue: 12.2% - EBITDA: 11.6% 40 30 20 10 0 2009 2010 2011 2012 2013 2014 2015 2016 REVENUE EBITDA

FX Impact: -$1.4M on back of strong NZD

All figures in NZ $

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REVENUE TYPE ANALYSIS

Revenue by Product

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0.5
3.6
0.4
3.5 18.7
11.6
15.5
13.6
13.0 14.4
FY'15 FY'16
Annual Fees Support Services
Project Services Licence Fees
Other
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Revenue Type Highlights: Utilities

• Project Services up 86%

• Annual Fees up 11%

• Support Services up 3%

Airports

• Licence Fees up 115%

• Project Services down 29%

• Support Services up 172%

• Annual Fees up 12%.

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GENTRACK REVENUE MODEL

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Revenue by Product
1% 7%
27%
91% OF REVENUES FROM
EXISTING CUSTOMERS 36%
29%
Licences Project Services Support Services Annual Fees Other
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81% NON-NEW ZEALAND REVENUES 56% RECURRING REVENUES

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FY17 FOCUS

www.gentrack.com

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A TRANSFORMING UTILITY LANDSCAPE

Focus on supporting customer success and embracing change

• Drive operational efficiency through automation

• Attract and retain consumers

• Differentiate through service and product offers

• Cope with a raft of regulatory change

• Prepare for the future.

We combine the expertise of our people with a proven delivery model and innovation to support the transformation of utilities and airports.

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AIRPORT INVESTMENT DRIVES OPPORTUNITY

• A new user experience for our 20/20 Airport Operational Software

• Focus on automating, simplifying and optimising day-to-day airport operations

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• Growth of partnerships with innovative technology providers TIC (BizTweet), Blip and Ikusi

• Ikusi delivered our first Airport 20/20 solution in South America (Santiago International Airport)

• Airport 20/20 extends real-time decision support across the entire airport community.

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OUTLOOK

• Strong first-half FY17 with multiple projects going live

• Revenue expected to be c.20% up on 1H16 despite currency headwinds

• EBITDA margin expected to be c.30%

• We re-iterate long term guidance of 10%+ revenue and EBITDA growth, albeit results may be impacted by the timing of projects.

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END

www.gentrack.com