SERKO LIMITED — AGM Information 2018

Aug 21, 2018

Serko Limited Annual Shareholders Meeting, 22 August 2018

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WELCOME FROM THE CHAIRMAN

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ORDER OF MEETING

• Chairman welcome

• CEO’s Presentation

• Shareholder Q+A

• Formal Business + Resolution

• General Business

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DELIVERY

Against our strategy for FY18

• Offer premium, integrated global solutions

• Zeno launched domestically

• Commenced Northern Hemisphere market development

• White-label self-onboarding SME solution now powering partner solutions HWFB and Flight Centre Corporate Traveller – CT GO

Grow ARPB by offering increased content and moving customers to Zeno

• Zeno transition will achieve premium pricing and higher attachment of new content sources

• Higher attachment will result in increased supplier commissions

• 72% increase in supplier commission revenue for FY18

• Expand into new territories through strategic alliances and reach the unserved SME market

• ATPI signed - 50 countries

• • Tandem Travel transitioning to Zeno (previously transacting on Sabre Online)

• Added new content sources – HRS Hotels, GTA Hotels, Hotel Hub,

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OUTLOOK FY19

GROWTH IN OPERATING REVENUE EXPECTED TO BE IN 20-30% RANGE

PEAK ATMR HAS RISEN TO $18.8M

FY19 EBITDA PROFIT EXPECTED TO BE IN LINE WITH FY18

CASH BALANCES AT 31 JULY $4.7M (BEFORE CAPITAL RAISE)

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GOVERNANCE UPDATES

• ESG Report

• ASX Listing (June 2018)

• $15m Capital Raise (Aug 2018)

• Accelerate revenue growth

• Investigate potential acquisitions

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CEO PRESENTATION

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EXECUTIVE CHANGES

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THE CONNECTED TRAVELLER

Zeno is a single application to manage travel across every phase of the journey

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COMMERCIAL MODEL

Recurring revenue split

	Year ended 31 March 2018 Travel platform booking revenue Expense platform revenue Supplier commissions revenue Other revenue 13,283 1,539 1,125 334 Recurring Product Revenue 16,443 Services revenue 1,835 Total Revenue $18,279

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STRATEGIC FOCUS UPDATE

• Industry Recognition for Innovation

• • Leadership in NDC with Qantas partnership

• Leading edge intelligence with AI and Ask Zeno under commercial development

Building to accelerate signed opportunities

• AUS/NZ – Orbit; Flight Centre

• Reseller agreements in place to enable uplift in ARPB with

transition to Zeno (65% coverage based on Q1 transactional volume)

• Marketplace expansion - RoomIT

• Content attachment continues to increase

• UK/EU – ATPI have commenced deployment in UK

• • NORAM

• New Canadian resellers content requirements in development (Voyages Travel Encore, Custom Travel Solutions)

• Flight Centre reseller agreement to deploy in Canada, US and Mexico

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GROWTH PATHWAYS

• Serko is still gaining domestic volume through new TMCs as well as new corporates coming on to existing TMCs

• Targeting run forward bookings of 5 million by 31 March 2019

• International growth opportunities are very significant

• Activating these opportunities this year

• Building to double volumes and increase revenues to $100M

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QUESTIONS

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2018 RESOLUTIONS

Resolution 1

That the directors are authorised to fix the fees and expenses of the auditor of Serko Limited Resolution 2 That Mr Simon Botherway be re-elected as a director of Serko Limited

Resolution 3

That Mr Robert (Bob) Shaw be re-elected as a director of Serko Limited

Resolution 4

That the (US) Employee Share Incentive Plan be and is hereby approved

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GENERAL BUSINESS

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THANK YOU

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ABOUT SERKO

• Serko provides innovative cloud based corporate travel and expense technology solutions.

• Founded in 2007 by Darrin Grafton and Robert Shaw, Serko listed on the New Zealand stock exchange in June 2014, and more recently in June 2018, has listed as a Foreign Exempt Listing on the Australian Securities Exchange. Serko remains founder led. Serko trades under the ticker ‘SKO’.

• Serko is a major supplier of technology solutions for Travel Management Companies (TMCs) in Australasia and is now expanding into Northern Hemisphere markets with signed global supply arrangements.

• The majority of Serko’s revenue comes from TMCs who provide our solution to their corporate customers.

• Serko is head quartered in New Zealand and employs more than 120 people worldwide including offices in Australia, United States and China and India.

For further information refer to Serko’s website www.serko.com and its 2018 Annual Report which can be found under Investor Centre.

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DEFINITIONS

• ATMR (Annualised Transactional Monthly Revenue) is a non-GAAP measure. Serko uses this as useful indicator of recurring revenues from Serko products based on the monthly transactions from the most recent month.

• ARPB (Average Revenue Per Booking) is a non-GAAP measure.

• Recurring product revenue (a non-GAAP measure) is the recurring revenue derived from transactions and usage of Serko products by contracted customers. It excludes revenues from customised software development.

• R&D (Research & Development) costs is a non-GAAP measure representing the internal and external costs related to R&D both expensed and capitalised.

• Operating Costs is a non-GAAP measure which excludes costs relating to taxation, interest, depreciation, and amortisation charges

• EBITDA is a non-GAAP measure representing Earnings Before the deduction of costs relating to Interest, Taxation, Depreciation and Amortisation.

• FTE = Full time equivalent employee

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IMPORTANT NOTE

This presentation is given on behalf of Serko Limited. Information in this presentation:

• is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in Serko Limited;

• should be read in conjunction with, and is subject to, Serko’s Annual Report, market releases and information published on Serko’s website (www.serko.com);

• includes forward-looking statements about Serko and the environment in which Serko operates, which are subject to uncertainties and contingencies outside of Serko’s control – Serko’s actual results or performance may differ materially from these statements;

• includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance; and may contain information from third-parties believed to be reliable; however, no representations or warranties are made as to the accuracy or completeness of such information.

• Non-GAAP financial information does not have a standardised meaning prescribed by GAAP and therefore may not be comparable to similar financial information presented by other entities. The non-GAAP financial information included in this release has not been subject to review by the auditors. Non-GAAP measures are used by management to monitor the business and are useful to provide investors to access business performance.

All information in this presentation is current at the date of this presentation, unless otherwise stated. All currency amounts are in NZ dollars unless stated otherwise.

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