SERKO LIMITED — Investor Presentation 2018

Sep 5, 2018

Serko Limited ASX Small and Mid Cap Conference, 6 September 2018

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CEO PRESENTATION

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PRESENTATION OUTLINE

• About Serko

• Strategy Overview

• FY18 Results Overview

• Investment Proposition Summary

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ABOUT SERKO

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

• Our purpose is to transform the way businesses manage travel and expenses.

• Founded in 2007 by myself, Darrin Grafton and my fellow co-founder, Robert Shaw.

• Listed on the New Zealand stock exchange in June 2014

• Listed as a Foreign Exempt Listing on the Australian Securities Exchange – June 2018. Serko trades under the ticker ‘SKO’.

• Serko is headquartered in New Zealand and employs more than 140 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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SKO – NZX top performing stock for 2018

From $1.10 at IPO (June 2014) to a low 25c (April 2017) to NZX top performing stock for 2018

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

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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

Travel platform booking revenue 13,283 Expense platform revenue 1,539 Supplier commissions revenue 1,125 Other revenue 334 Recurring Product Revenue 16,443 Services revenue 1,835

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OUR STRATEGY

ARPB : Average Revenue Per Booking is a non-GAAP measure.

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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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STRONG TRACK RECORD OF GROWTH

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Selected Operational Metrics FY13 FY14 FY15 FY16 FY17 FY18
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Total revenue growth (%)	27%	39%	55%	27%	9%	28%
Revenue growth – Serko Online (%)	41%	12%	62%	49%	8%	23%
Operating costs (excl depreciation & amortisation) (% change)	35%	62%	105%	13%	(10%)	(5%)
No of transactions (indexed, where FY13=100)	100	123	179	275	326	390
Transaction growth (%)	35%	23%	45%	54%	18%	20%
Recurring product revenue as % total revenue	84%	71%	80%	93%	91%	90%
Employees (number at end of year)	47	87	133	127	108	106
Average revenue per FTE (NZ$000)	119	100	94	101	122	170
Research & development costs - expense and capex (NZ$000)	2,340	3,387	5,762	6,268	5,836	4,906
Annualised transactional monthly revenue (ATMR) (NZ$m)	*	*	*	11.2	15.3	18.4

• indicates not previous measured or reported.

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OUTLOOK FY19

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

FY19 EBITDA PROFIT EXPECTED TO BE IN LINE WITH FY18

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SUMMARY

• SaaS based business with high recurring revenue which can achieve economies of scale and good profit margins

• Successful in its home markets of Australia and New Zealand

• Large opportunity to expand into new territories

• Serko has had strong growth and remains focused on continued revenue growth

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DEFINITIONS

• ATMR (Annualised Transactional Monthly Revenue) is a non-GAAP measure. Serko uses this as a useful indicator of recurring revenues from Serko products. It is calculated by annualising the combination travel and expense platform monthly revenues for the most recent non-seasonal month. The travel platform revenue is annualised by taking the monthly online booking transactions divided by the number of weekdays for that month multiplied by the average year to date ARPB and multiplied by 260 days. The expense platform revenue is based on the monthly revenue from active users multiplied by 12 months.

• ARPB (Average Revenue Per Booking) is a non-GAAP measure. Serko uses this as a useful indicator of the combined value from transactional booking fees and the supplier commissions earned from the travel platform. It is calculated by taking total travel platform booking revenue and supplier commission revenue divided by the total number of bookings.

• 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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