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STRAKER LIMITED AGM Information 2019
65867_rns_2019-08-27_dc845575-5bd5-4a60-8440-261d184d5822.pdf
AGM Information
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2019 Annual Meeting Straker Translations (ASX.STG)
28 August 2019 CEO Presentation
Straker is a world leading A.I. data driven language translation platform powering the global growth of businesses
Key operational achievements
Acquired three strategic bolt-on businesses
Completed IPO, raising $20m (gross proceeds) for growth initiatives
Setup Hong Kong Office focused on lucrative Asian Legal market
Using our unique technology advantage to push into enterprise customers
Exceeded Prospectus FY19 forecasts
Delivering what we promised
Built new platform connectors including Magento where we now have the industry leading plugin
RAY translator workbench version 4 released
Key technology achievements
100 Billion new A.I. data points collected
New translator workbench using A.I. driven translator selection
44% $25.8m
($0.48m) 12.6%
83% $17.7m
YoY revenue growth
Repeat Revenue
Proforma revenues
Organic revenue growth
Cash at bank
Proforma adjusted EBITDA
Exceeded Prospectus FY19 forecasts
52.4m
Words Translated
DELIVERING STRONG GROWTH
44% YOY Revenue Growth (NZ $m)
Gross Margins constant currency
55% Up 0.4% on a basis
YoY revenue growth of 44%, driven both strong organically and by acquisition contributions
54%
Repeat Revenue Growth
14%
Operating Cashflow improves by 14% YoY
Note: Based on statutory results
Adjusted EBITDA margin of -0.6% with adjusted EBITDA loss improving by 89% on FY-18
Successfully acquiring and integrating strategic acquisitions
COM
Enterprise customer access with larger footprint in Spanish market with easy integration given location to Straker team in Barcelona.
Key entry into the fastgrowing audio visual market for localisation. Access to major media companies in US/Europe
Barcelona
Madrid
Well placed to continue growth trajectory
OUR ADVANTAGE THROUGH PROPRIETARY RAY PLATFORM
WHAT WE DO
Straker helps leading technology companies streamline and scale the ability to communicate across regions
Straker provides leading global manufacturers with the ability to easily push out new products into multiple markets
Straker helps major finance institutions deliver quarterly market reports in multiple languages
Straker works with major e-commerce providers to localise their product websites into multiple languages
Straker enables thousands of SME's to cost-effectively cross border trade without language as a barrier
Straker enables global media companies to provide content in multiple languages across multiple platforms
THE INDUSTRY THAT WE OPERATE IN
Industry Size USD$
*nimdzi 2018 Language services market analysis
The translation industry facilitates trillions of dollars of global trade annually
The industry is changing and this is aligning with our business model
- More need for an A.I driven hybrid translation process due to the advantages in speed and cost
- Data becoming more valuable
- Media the fastest growing segment
- Legacy providers a long way behind in adapting to the fast change
HUGE POTENTIAL IN OUR EXISTING CUSTOMER BASE
We estimate that the total budget across five of our major customers for localisation to be around US$300-500m. We currently get only a portion of this and are focused on building out our networks and connections across multiple divisions in each of these companies.
- Three of these customers have setup or acquired media streaming services with large requirements for localisation
- They need centralised continuous localisation processes which is where our RAY platforms offers the ideal solution
- They also have large A.I departments with requirements for data training and language learning which we are now starting to engage over.
- Huge opportunities with the customers of these organisations
- Created a global growth sales team to work on extending our footprint into these types of organisations
INVESTING IN GROWTH
We recognise the need to continually invest in growth and to get operating leverage from our technology.
Our goal is to have our investment in people split 28% Technology, 28% Sales and 28% Production with the rest of the spend being Admin staff.
This will ensure we are always focused on having a strong technology section that is building technology to keep our production teams highly efficient through the use of automation.
We started this process in mid 2019 and have moved production people cost down from 43.5% to 38.7% and technology spend from 15.7% to 18.7% of our wages bill.
ACQUISITION STRATEGY
The focus of our acquisition strategy is on Asia Pacific (specifically Japan and Australasia), USA, Spain, DACH region, Benelux and the UK. In all these regions (outside of Benelux) we have well functioning business units making integration easier and faster which will have the flow effect of getting operating leverage from our technology earlier.
We estimate the total revenue of all the acquisition targets we have identified and validated as being around $1.5bn
Revenue range of target companies between $3-15m
Majority of targets being below the $10m revenue range
Focus still on companies doing majority of translation
Some potential in profitable audio-visual localisation related companies
At the advanced stages with several opportunities
WHAT SUCCESS HAS PROVEN
In 2011 we were the first company to develop a data driven approach to translation.
WHERE WE DO IT
Straker Group Revenue by region post COM acquisition
On track to complete further acquisitions Integration of existing acquisitions on track Pursuing business partnerships in aligned markets Global growth enterprise sales team active Investing in R&D in aligned business growth areas
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Questions
www.strakertranslations.com
CEO: [email protected] Chairman: [email protected] Investor Relations: [email protected]
