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STRAKER LIMITED — AGM Information 2022
Aug 23, 2022
65867_rns_2022-08-23_0cdb8902-15b4-4848-92e4-ccfc37d15606.pdf
AGM Information
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TIMELINE




Straker Translations Annual Meeting 24 August 2022
1
Disclosure Statement

Information in this presentation:
- Is for general information purposes only, and is not an offer or invitation for purchase, or recommendation of securities in Straker Translations Limited (Straker)
- Should be read in conjunction with, and is subject to, Straker's latest and prior interim and annual reports, including Straker's Final Report for the period FY22 ended 31 March 2022, and Straker's market releases on the ASX
- Includes forward-looking statements about Straker and the environment in which Straker operates, which are subject to uncertainties and contingencies outside of Straker's control - Straker'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
- 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, and
All information in this presentation is current at 31 March 2022, unless otherwise stated. All currency amounts are in NZ dollars, unless otherwise stated.

This presentation is given on behalf of Straker Translations Limited ASX:STG (Company number NZ: 1008867 / AU: ARBN 628 707 399)
Phil Norman Chairman


Directors



Grant Straker Amanda Cribb Steve Donovan Tim Williams Paul Wilson
Chief Executive
Officer and
Managing
Director
Independent
Non-Executive
Director
Non-Executive
Director

Independent
Non-Executive
Director

Non-Executive
Director

Chairman's address



$55.9m*
Revenue up 78.5% on FY2021 lifted by acquisitions and strong organic growth
$0.2m
Adjusted EBITDA of $0.2m up 194% on FY 2021 and now steadily positive
54.3%
Gross margin, increase of 90 basis points compared to prior year
$15.1m ($11.4m 30 June 2022) Strong cash balance following A$25m capital raising in Q1 2022
*All figures are in $NZ unless otherwise stated

A year of growth and consolidation
Straker has transitioned to quarter-on-quarter positive earnings as revenue grows faster than operating expenses
We have a focus on being a good corporate citizen and ensuring that our Environmental,
Social and Governance foundations are strong. We are working towards B-Corp accreditation.



| Environmental | Social | Governance | |
|---|---|---|---|
| More than half of all staff female | 2 Indigenous Directors | ||
| 1/3 of the executive female | 1 Female Director | ||
| Living wage | |||
| ISO 27001 Data Security | Executive pay market rates with anyupside linked to company | ||
| Embraced and facilitated remote working | High customer satisfaction scores | performance | |
| Anti-bribery and corruption policy | |||
| Invested in regional offices to support theregional communities | All Board charters and policies freely | ||
| Support local communities throughsponsorships | available on our website |


Once borders fully reopen we expect travel to be around 40% of the FY20 level

Embraced and facilitated remote working long before Covid

90% reduction in travel carbon
emissions in FY22 from FY19

Ensured our head office was next to a major public transport hub
A focus on sustainability

Board transition as Straker evolves


Heith Mackay-Cruise Steve Bayliss
Experienced professional director with 25 years in media, education and technology.

Experienced marketing professional in FMCG transport and media



- next target
Summary

- • Well positioned to deliver on strategic goals - strong sales pipeline of enterprise and governance organisations and latent opportunities still to be realised from recent acquisitions
- • Targeting earnings accretive growth for FY23 of 20% with gross margins exceeding 54% achieved in FY22
- • Thanks to my fellow directors past and present, our hard-working staff across the globe and to our loyal shareholders for your ongoing support
Managing Director's address



Automate content inflows with technology

Use the data assets to train our machines for further improvements





Our enterprise translation management platforms to manage the process
Market & Industry
In a tough market cycle, we have held up well against our peers. Directors, Executive and Management control around 25% of the company stock and there is strong alignment in delivering results for shareholders





Revenue Growth and Scale
12 years of consistent growth


Revenue Growth mix of Acquired and Organic



Exiting Q4 run-rate of 63m driven by higher organic revenue

Operating leverage delivered from our technology


People
Sales: 78% improvement
- $0.73m per sales person Q4 FY21
- $1.3m per sales person Q4 FY22
- 8 IBM
- 8 New Business


- $340k per prod person Q4 FY21
- $470k per prod person Q4 FY22
- 15 IDEST
- 14 IBM

Revenue outstripping headcount as we get operating leverage and still invest in growth teams
Infrastructure
Data SaaS & Finance System
Global expansion of data centres for customers needing GDPR and redundancy
ISO 27001 expanded to Lingotek platform
B Corp
Upgrade finance stack to Netsuite
Increased security systems and processes
The leading global ESG standard
Built out the SaaS billing model and engine for RAY
Integration of RAY/ Lingotek
We have had a focus on being a good corporate citizen and ensuring that our Environmental, Social and Governance foundations are strong.
Opens us to a range of new investors with ESG focus
B-corp in FY24


Systems and platform investments for growth and product led delivery
Workplace superapps development
Phases of Growth and Innovation

Internal
External
Work on our internal platform and systems to bring improved margins, streamline systems and integration of acquired companies
Work on customer facing apps, tools and features to drive new sales by bring added value directly to customers



Focus back on customer facing innovation for FY23

R&D Focused on revenue growth and higher margins




Huge opportunity in the "new workplace"



Covid lockdowns have accelerated workplace app usage and have significantly changed workplace behaviour

| 24 |
|---|


Outlook

BUILDING ON A RECORD OF GROWTH
- Guidance of 20% growth on FY22 full year revenues with margins exceeding 54% achieved in FY22
- Focus on sustained profitability and high margins through SaaS
- R&D innovation focused on customer and product centric for the changing tech landscape opportunity
- Acquisition possibilities as the market adjusts post covid and opportunities arise
- Well funded with cash reserves at the end of June of $15m and no debt
The end of an era


PHIL NORMAN
Independent Chairman 2014 - 2022

TIM WILLIAMS
Independent Director 2015 - 2022
STG:ASX



CEO - [email protected]
CFO - [email protected]
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