GENTRACK GROUP LIMITED — Investor Presentation 2017

Dec 13, 2017

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14 December 2017

Amended Investor Presentation

Gentrack Group Limited (NZX/ASX: GTK) has found some errors in the FY16 comparative data and analysis used in the investor presentation for FY17 released on 29 November 2017. These errors do not affect the FY17 results and are as follows:

Item	Location (Slide #)	Published (29 November 2017)	Correction (14 December 2017)
NPAT	7	Up 54% on FY17	Up 23% on FY16
Airports – Revenue growth	9	44%	46%
Airports – EBITDA growth	9	60%	18%
Airports and Utilities Graphs	9	Comparative figures were FY15	FY16 figures
Geographic Analysis	10	Revenue by Region Pie Graph (Millions)	Revenue by Region Pie Graph (%)
Licence revenue growth	11	92%	74%

Gentrack apologises for these errors which do not affect reported FY17 results.

The updated investor presentation is also available to view and download from the Investor Centre at:

https://www.gentrack.com/investors/reports-and-presentations/

ENDS

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Contact:

Jon Kershaw; Company Secretary +64 9 966 6090

Gentrack Group Ltd | www.gentrack.com | info@gentrack.com | ARBN 169 195 751

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About Gentrack

Gentrack provides essential software for essential services, pairing powerful platforms with deep market knowledge to help utilities and airports lower service costs, foster innovation and confidently navigate market reform. It employs over 450 people in offices across New Zealand, Australia, the UK and Europe and services over 200 utility and airport sites in 20 countries with its leading solutions including Gentrack Velocity, Junifer, Airport 20/20, BlipTrack and Concessionaire Analyzer+ (CA+).

Velocity and Junifer are leading billing and customer management solutions providing a full range of proven capabilities from SaaS solutions for new entrant energy and water suppliers, to cloud hosted and on premise solutions for larger utilities in competitive markets where flexibility, uniqueness and compliance are essential.

Airport 20/20, BlipTrack and CA+ provide a comprehensive solution suite engineered to connect and unlock the value of airport operational, revenue, concession and passenger data. This real-time insight enables airports to run a more efficient operation, uncover new growth opportunities and build an outstanding traveller experience.

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GENTRACK RESULTS F O R T H E F U L L Y EA R TO 3 0 S E P T E M B E R 2 0 1 7

UPDATED: 14 DECEMBER 2017

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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.

This presentation includes unaudited financial information for the year ended 30 September 2017. Audited financial statements will be issued on 30 November 2017.

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BUSINESS FINANCIAL STRATEGIC OUTLOOK Q&A UPDATE RESULTS FOCUS

ESSENTIAL SOFTWARE FOR ESSENTIAL SERVICES We pair our powerful platforms with deep market knowledge to help utilities and airports lower service costs, drive innovation and confidently navigate market reform. EXPERTISE AND PASSION

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WORLD-CLASS SOLUTIONS FOR UTILITIES AND AIRPORTS

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DELIVERING RESULTS in FY17

• 12 new utility and 9 new airport customers

• 27 customer projects delivered, including completion of Gentrack’s largest utility billing project in Australia

• Expansion of our managed service and subscription based offerings and investment

• Successful integration of three acquisitions delivering profit expectations

• New market entry

• Utilities: South East Asia – Opened Singapore office

• Airports: Greenland, Abu Dhabi, Jersey and Kenya.

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EXPERIENCED LEADERSHIP DRIVING BUSINESS GROWTH

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PAUL KING COUNTRY MANAGER – AUSTRALIA

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SAUL NURTMAN MANAGING DIRECTOR – UK/EUROPE

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DAVID WILLS CHIEF OPERATING OFFICER – GLOBAL

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CHRIS WARRINGTON VP AIRPORTS – GLOBAL

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BUSINESS FINANCIAL STRATEGIC
OUTLOOK Q&A
UPDATE RESULTS FOCUS
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FINANCIAL PERFORMANCE

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84%
$11.8m
REVENUE EBITDA
NPAT Pre-tax free
cash flow as a %
Up 23% on
of EBITDA
$75.2m $23.9m FY16
43% 43%
Growth Growth
over FY16 over FY16 12.7cps 143%
TOTAL SHAREHOLDER
FULL YEAR
RETURNS SINCE
DIVIDEND
IPO
18% 24%
EXCLUDING ACQUISITIONS EXCLUDING ACQUISITIONS
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DELIVERING CONSISTENT RESULTS

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$75.2m
7 Year CAGR
c.15%
$23.9m
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• Continuous organic growth

• • Strategic growth acquisitions

• • Consistent dividend growth since IPO

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DIVISIONAL ANALYSIS

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UTILITIES
FY17
$20.7m $63.5m
FY16
$14.0m $44.8m
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Utilities delivered strong growth, up 42% on FY16.

The utilities business now occupies first or second market share position for billing and CIS solutions in our three chosen markets.

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AIRPORTS
FY17
$3.2m $11.7m
FY16
$2.7m $7.9m
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Airports grew revenues by 46%.

Acquisitions expanded the airports solution offering to cover passenger experience and revenue management – areas of significant focus for this sector.

Airports EBITDA up 18% on FY16.

Our addressable market has increased to include new market entrants and tier one energy suppliers.

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GEOGRAPHIC ANALYSIS

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Australia
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FY17
FY16
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Australia Energy regulatory reform driving growth UK/Europe Addition of new customers to the Junifer platform Largest European utility selects Velocity – initial project in Romania ROW First customer in Singapore and new offices to support Southeast Asia operation.

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REVENUE TYPE ANALYSIS

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Licence growth was 74%
90%+ of revenues are
from existing customers
Recurring revenues grew
by 43%.
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GLOBAL RESOURCE GROWTH

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167
429
156
55%
New Zealand
Total resource increase over prior year
250% 79
278
UK/Europe resource growth over
prior year including acquisitions. 70
Australia
Research and Development resources
183
increased by 30% over FY16
52
21% of Research and Development activity
was capitalised. R&D was 6% of revenue.
FY16 FY17 UK/Europe
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BUSINESS FINANCIAL STRATEGIC
OUTLOOK Q&A
UPDATE RESULTS FOCUS
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FY18 OUTLOOK

• Continued growth in FY18 driven by ongoing energy and water market reforms in Australia, UK and Singapore

• Targeting 15%+ long term EBITDA growth albeit results in any given year may be impacted by the timing of projects

• Increasing delivery of value from recent strategic growth acquisitions

• Expanded R&D program to deliver against medium and long-term growth strategy

• New Gentrack Headquarters in Auckland and expansion of offices in Melbourne and London to support ongoing resource growth.

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BUSINESS FINANCIAL STRATEGIC OUTLOOK Q&A UPDATE RESULTS FOCUS

CAPITALISING ON CHANGING MARKETS

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COMPETITIVE RETAIL MARKETS

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DEMAND FOR MANAGED SERVICES

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NEW RETAIL BUSINESS MODELS

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CUSTOMER DRIVEN TECHNOLOGIES

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EVOLVING MARKET FRAMEWORKS

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NEW SERVICES PLATFORMS

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FOCUSED CHANGE TO DELIVER STRONGER OUTCOMES

LEVERAGING CLOUD EFFICIENCIES - Expanding Gentrack’s managed service offering - Optimising the value of cloud technologies - Gentrack Platform-as-a- Service for digital innovation.		CORE R&D INVESTMENT - Pre-packaged/ market ready solutions - Service excellence - Gentrack platform a key enabler of utility innovation - Extended partner ecosystem.		PRODUCT DELIVERY INNOVATION - Subscription based solutions for utilities - SaaS mindset - Delivering regular and increased value to customers - AGILE methodology enhancing collaboration.		CHANGING UTILITIES MARKETS - New regions - Expanding Gentrack’s addressable market - Leveraging market ready solutions and expertise - Increased share of wallet.		CONSISTENT SHAREHOLDER VALUE - Revenue and EBITDA growth aligned with guidance - EPS growth - Investment in product and people.
    

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GENTRACK CORE COMPETENCIES FOR UTILITIES

BILLING

We excel at meeting complex Billing needs, at scale across Domestic, SME and Commercial/Industrial sites.

CUSTOMER INFORMATION

We hold a utility’s core customer information and support them in managing the relationship.

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MARKET INTERACTIONS

We have a deep understanding of complex market interactions and enable utilities to stay compliant and connected.

METERING

We understand meter data and how modern utilities can leverage it for new services.

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BRINGING JUNIFER TO AUSTRALIA AND NEW ZEALAND

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•
•
•
•
•
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Smart billing and CRM for new entrant energy retailers

• Out of the box meter-to-cash capabilities

• SaaS and Cloud enabled

• Onboard with ease and scale quickly

• • Localised for market regulatory frameworks

• • Extending Gentrack’s local footprint:

• NZ: 24% of retail brands

• Australia: 20% of retail brands

~40 Retail Energy Brands[1]

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42 Retail Energy Brands[2]

Electricity and Gas Retail Brands

1 2017 AEMC Retail Energy Competition Review – 25 July 2017 (NEM + WA/NT)

• 2 Electricity Authority – www.emi.ea.govt.nz and www.gasindustry.co.nz

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APPENDICES

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CARVE YOUR EMBRACE NAVIGATE UNIQUE OFFER DIGITAL MARKET CHANGE

ESSENTIAL SOFTWARE FOR ESSENTIAL SERVICES Play your way. Shape your future.

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OPERATIONS REVENUE

PASSENGER EXPERIENCE

CONNECTED INTELLIGENCE Connect your data to unlock its true value, and make better decisions, faster.

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ADDRESSABLE MARKET IN CORE GROWTH REGIONS

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UNITED KINGDOM AIRPORTS
SINGAPORE NEW ZEALAND AUSTRALIA
& IRELAND GLOBALLY
88 ENERGY + 32 WATER 27 ENERGY 42 ENERGY 40 ENERGY + 47 WATER SKYTRAX ‘TOP 100’ [#]
BRANDS BRANDS BRANDS BRANDS AIRPORTS 2017
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GENTRACK POSITION

#2

37 energy suppliers and 3 water companies

#4

1 energy supplier

#1 53% of energy retail and 54% of network connection points

#2 12 energy utilities and 9 water companies

20% ‘Top 100’ # Survey of 550 airports

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GAAP TO NON-GAAP PROFIT RECONCILIATION

GAAP to non-GAAP profit reconciliation	GAAP to non-GAAP profit reconciliation	GAAP to non-GAAP profit reconciliation
Period	12 Months 30-Sep-17	12 Months 30-Sep-16
Reported net profit for the period (GAAP)	11,825	9,608
Add back: amortisation	3,314	2,015
Add back: tax adjustment for amortisation	(845)	(533)
NPATA	14,294	11,090
Add back: net finance expense/(income)	1,152	1,208
Add back: income tax expense less tax adjustment above	6,456	4,067
Add back: depreciation	677	362
Add back: acquisition costs	1,325	0
EBITDA	23,904	16,727

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FY17 RESULTS ON A CONSTANT CURRENCY BASIS

NZ$000	FY16	FY17	FY17 on CONSTANT CURRENCY*	∆ %
Revenue	52,734	75,181	78,533	-4%
EBITDA	16,727	23,904	24,783	-4%
NPATA	11,090	14,294	14,884	-4%
NPAT	9,608	11,825	12,355	-4%
Net Cash Balance	18,818	9,727	~~* Based on F~~	~~Y16~~
Final Dividend (cps)	7.7	8.5	exchange r and actuals	ates
Full year Dividend (cps)	11.9	12.7	All figures i	n NZ $

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