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WISETECH GLOBAL LIMITED — Annual Report 2021
Aug 24, 2021
66086_rns_2021-08-24_355648a8-f085-4a97-82ee-c1b54b3f03a2.pdf
Annual Report
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ASX Announcement: 2021/50
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25 August 2021
WTC FY21 results investor presentation
Attached is the FY21 results investor presentation for the year ended 30 June 2021.
//ENDS
Authorised for release to ASX by David Rippon, Corporate Governance Executive and Company Secretary.
Contact information
Investor Relations and Media
INVESTOR RELATIONS: MEDIA Ross Moffat +61 412 256 224 Helen Karlis +61 419 593 348
About WiseTech Global
WiseTech Global is a leading developer and provider of software solutions to the logistics execution industry globally. Our customers include over 18,000[1] of the world’s logistics companies across more than 165 countries, including 41 of the top 50 global third-party logistics providers and 24 of the 25 largest global freight forwarders worldwide[2] . Our flagship platform, CargoWise, forms an integral link in the global supply chain and executes over 72 billion data transactions annually.
Our mission is to change the world by creating breakthrough products that empower those that own, enable and operate the supply chains of the world. At WiseTech, we are relentless about innovation, adding over 4,300 product enhancements to our global platform in the past five years while bringing meaningful continual improvement to the world’s supply chains. Our breakthrough software solutions are renowned for their powerful productivity, extensive functionality, comprehensive integration, deep compliance capabilities, and truly global reach. For more information about WiseTech Global or CargoWise, please visit wisetechglobal.com and cargowise.com
1 Includes customers on CargoWise and platforms of acquired businesses whose customers may be counted with reference to installed sites
2 Armstrong & Associates: Top 50 Global 3PLs & Top 25 Global Freight Forwarders ranked by 2020 logistics gross revenue/turnover and freight forwarding volumes
WiseTech Global Limited ABN 41 065 894 724 Unit 3a, 72 O’Riordan Street Alexandria NSW 2015
Enabling and empowering the world’s supply chains
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FY21 Results
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© 2021 WiseTech Global
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O U R V I S I O N
To be the operating system for global logistics
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O U R M I S S I O N
To create breakthrough products that enable and empower those that own and operate the supply chains of the world
Agenda
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F Y 2 1
F Y 2 1 S T R A T E G Y
F I N A N C I A L Q & A A P P E N D I C E S
H I G H L I G H T S & O U T L O O K
R E V I E W
1 2 3 4 5
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© 2021 WiseTech Global
SECTION 01
FY21 highlights
RICHARD WHITE, CEO & FOUNDER
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FY21 financial highlights
Robust financial performance, strong revenue growth & cash generation reflecting operating leverage
Total revenue $507.5m CargoWise revenue $331.6m ↑ 24% ex FX ( ↑ 18% incl. FX) ↑ 31% ex FX ( ↑ 26% incl. FX) on FY20 on FY20 Total revenue growth $78.1m CargoWise revenue growth $68.6m Recurring revenue 90% ( ↑ 1pp) Acquisition revenue[1] $175.9m ( ↑ 12% ex FX, ↑ 6% incl. FX)
EBITDA $206.7m
↑ 63% on FY20 EBITDA growth $80.0m EBITDA margin 41% ( ↑ 11pp) CargoWise EBITDA margin 55%
Underlying NPAT[1] $105.8m Free cash flow $139.2m Final dividend 3.85cps ↑ 101% ↑ 149% ↑ 141% on FY20 on FY20 on FY20 Statutory NPAT $108.1m ( ↓ 33%)[2] Free cash flow conversion rate 67% ( ↑ 23pp) Fully franked Underlying EPS 32.6cps ( ↑ 99%) Cash at 30 June 2021 o f $315.0m Payout ratio 20% of Underlying NPAT Undrawn debt facility of $225m (refinanced July 2021)[3]
-
See definitions slide 40. For Underlying NPAT see also reconciliation on slide 37.
-
Decline (Statutory NPAT FY20: $160.8m) reflects a lower fair value gain in FY21 compared to FY20 in relation to acquisition contingent consideration.
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Post-FY21 refinancing of debt facility with a new unsecured four-year $225m bi-lateral facility, supported by six banks.
5
© 2021 WiseTech Global
Global supply chain market conditions
Constrained capacity resulting in increasing freight rates, accelerating digitisation & consolidation
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Global trade Freight Structural changes
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• 'Goods-led' recovery in global trade • Air freight strongly impacted by decline • Whilst short term freight rate increases has continued in 2021, with in availability of belly freight on passenger do not translate into immediately consumer demand buoyed by flights due to COVID-19 increased WiseTech revenue, they various country-specific COVID-19 • Capacity constraints driving up freight do lead to acceleration of: fiscal stimulus support packages[1] rates, ~2X air rates on China-EU/US • replacement of customers’
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• This has boosted demand for routes[2] legacy systems manufacturing and global trade, • Container shipping not as significantly • demand for integrated global software resulting in: impacted by restrictions but affected by: solutions with increased visibility • • geographically unbalanced demand • CargoWise customers driving growth constrained capacity causing vessel and container shortages and industry consolidation via M&A,
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• supply chain bottle-necks • port access challenges and congestion such as: • increased freight rates • Shanghai Containerized Freight Index • DHL’s recently announced acquisition of JF Hillebrand
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~4X pre-COVID-19 levels[3]
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• Freight capacity investment increasing • JAS Worldwide's recently announced acquisition of Greencarrier
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to prepare for growth post-COVID-19 • DSV statement re interest in acquiring DB Schenker
6
© 2021 WiseTech Global
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Ti Research “Global Freight Forwarding 2021 Report” issued 17 June 2021. 2. JOC.com "US, EU importers tap air freight to restock depleted inventories", 29 June 2021.
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Shanghai Containerized Freight Index at ~1.000 https://en.sse.net.cn/indices/scfinew.jsp.
FY21 strategic highlights
Strategic progress on the 3Ps to leverage structural changes and deliver on our vision
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Product
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Penetration
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Profitability
-
Significant progress in continued alignment of acquired product & development teams to support WiseTech's development priorities
-
Strategic focus on the Top 25 Global Freight Forwarders[1] & top 200 global logistics providers
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6 new global rollouts of CargoWise by Large Global Freight Forwarders[1] secured in FY21, bringing total large global customer rollouts to 36 (including DHL, Bolloré, DSV/Panalpina)
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Geographic expansion of native customs functionality, covering ~45% of global manufactured trade flows[1]
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Product integration of global rates functionalities onto CargoWise - in production with a number of major customers and native rewrite commenced
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Post-FY21 additional signing of new global rollout with FedEx
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Addition of sea freight to eCommerce capabilities - operational in AU, NZ and US • 10 of Top 25 Global Freight Forwarders have either rolled out or are in
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• 1,096 new CargoWise product and progress with global rollouts on
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feature enhancements the CargoWise platform
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Deployed beta version of CargoWise Neo
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Strong revenue growth drives operating leverage and margin expansion
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Implementation of organisation-wide efficiency and acquisition synergy program to:
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streamline processes and teams
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ensure resources appropriately allocated to support scalability, growth and delivery of WiseTech’s vision
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Program delivered:
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$22.0m gross FY21 cost reductions ($8.2m restructuring costs)
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$13.8m net benefit, exceeded $10m target
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~$40m net cost reduction run-rate for FY22, exceeding previous $20m-$30m target
7 © 2021 WiseTech Global 1. See definitions on slide 40.
SECTION 02
FY21 financial review
ANDREW CARTLEDGE, CFO
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FY21 results
Strong financial performance
Total revenue
-
Total revenue of $507.5m, up 18% on FY20, top end of guidance range ($470m - $510m)
-
$23.4m FX headwind in FY21 (FY20: $12.1m FX benefit vs. FY19)
| A$m FY20 |
FY21 | % change |
|---|---|---|
| CargoWise revenue 263.0 |
331.6 | 26% |
| Acquisition revenue1 166.4 |
175.9 | 6% |
| Total revenue 429.4 |
507.5 | 18% |
| Cost of revenues (76.7) |
(77.9) | 2% |
| Gross profit 352.7 |
429.5 | 22% |
| Gross profit margin 82% |
85% | 3pp |
| Operating expenses (226.0) |
(222.9) | (1)% |
| EBITDA 126.7 |
206.7 | 63% |
| EBITDA margin 30% |
41% | 11pp |
| Depreciation & amortisation2 (46.2) |
(56.8) | 23% |
| EBIT 80.5 |
149.8 | 86% |
| Net finance costs (9.8) |
(4.1) | (58)% |
| Fair value gain on contingent consideration 111.0 |
2.2 | (98)% |
| Profit before income tax 181.8 |
147.9 | (19)% |
| Tax expense (21.0) |
(39.9) | 90% |
| Statutory NPAT 160.8 |
108.1 | (33)% |
| Basic EPS (CPS) 50.3 |
33.3 | (34)% |
| Underlying NPAT3 52.6 |
105.8 | 101% |
| Underlying EPS (CPS) 16.4 |
32.6 | 99% |
- Excluding FX headwind, total revenue grew 24% (equating to $101.4m growth) and CargoWise revenue grew 31% on FY20 (equating to $82.2m growth)
Gross profit
-
Gross profit was $429.5m for FY21, a 22% increase on FY20
-
This resulted in a gross profit margin of 85%, up 3pp on FY20
EBITDA
-
$206.7m up 63% on FY20 exceeding top of guidance ($190m), reflecting strong revenue growth and benefits of $13.8m net cost reductions, versus $10m target
-
EBITDA margin at 41%, up 11pp on FY20
-
CargoWise EBITDA margin of 55%, up 7pp on FY20 reflecting revenue growth, a more targeted sales and marketing approach and cost decreases in travel & entertainment, trade shows and running costs in response to COVID-19 environment
-
FY21 EBITDA includes $8.2m of restructuring costs and $10.6 million FX headwind
EBIT & depreciation & amortisation (D&A)
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EBIT up 86% on FY20 driven by strong operating performance and 23% D&A growth
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23% increase in D&A reflects continued investment in R&D[2 ] to drive future growth
NPAT & earnings per share (eps)
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Underlying NPAT[3] of $105.8m, up 101% on FY20, demonstrating the ability of our business model to deliver revenue growth and earnings expansion
-
Statutory NPAT of $108.1m, down 33% on FY20 reflecting a lower fair value gain in FY21 compared to FY20 in relation to acquisition contingent consideration
-
Underlying EPS 32.6cps, up 99% on FY20
-
See definition on slide 40.
- Reconciliation of statutory expenses to non-statutory expenses on page 36 in appendices.
- See definition on slide 40 and reconciliation on slide 37. Underlying NPAT excludes fair value adjustments from changes to acquisition contingent consideration (FY21: $2.2m, FY20: $111.0m) and contingent consideration interest unwind net of tax (FY21: nil, FY20: $2.9m).
9
© 2021 WiseTech Global
FY21 revenue growth – recurring & non-recurring split
A$m
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4.2
(0.0) 507.5
(23.4)
(0.0)
97.3 49.4
429.4
47.4
458.0
382.0
FY20 Recurring Non-recurring FX FY21
Revenue FY20 revenue (ex FX)Recurring Non-recurringrevenue (ex FX) FX Revenue FY21
Recurring revenue Non-recurring revenue
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Total revenue growth
-
Total revenue grew $101.4m or 24% excluding FX
-
Revenue growth was offset by $23.4m of unfavourable FX movements (FY20: $12.1m foreign exchange benefit vs. FY19)
Recurring revenue growth excluding FX
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Recurring revenue excluding FX grew $97.3m, or 25% in FY21 driven by:
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Increased CargoWise usage (increased transaction volumes, seats, new sites, new modules utilisation and growth from industry consolidation)
-
$22m price change for both existing and new customers to offset increased product investment in R&D, data centre hardware and cyber security
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Increase in revenue from 5 acquisitions in FY20
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Partially offset by $21.3m of unfavourable FX movements
Non-recurring revenue growth excluding FX
-
Non-recurring revenue excluding FX grew $4.2m, or 9% in FY21 driven by:
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Increase in revenue from 5 acquisitions in FY20
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The contraction from acquisitions in FY19 and prior years as expected
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Partially offset by $2.1m unfavourable FX movements
10 © 2021 WiseTech Global
FY21 revenue growth – CargoWise & acquisition revenue split
A$m
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(1.4) 507.5
175.9
166.4
331.6
263.0
1 CargoWise FY19 & Prior FY20 FY21
Acquisitions Acquisitions Acquisition
CargoWise revenue Acquisition revenue
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CargoWise revenue growth
-
$68.6m, or 26% revenue growth in FY21 on FY20
-
$52.2m of revenue growth from existing customers (FY20: $31.0m)
-
$16.4m growth from new customers (FY20: $12.4m)
-
Growth from existing & new customers reflects:
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Increased CargoWise usage (increased transaction volumes, seats and new sites, utilisation of new modules and growth from industry consolidation)
-
$22m price change for both existing and new customers to offset increased product investment in R&D, data centre hardware and cyber security
-
Includes $13.6m FX headwind, 31% growth excluding FX
Acquisition revenue growth
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$10.5m increase in revenue from 5 acquisitions in FY20
-
$(1.4m) net change in revenue from acquisitions in FY19 and prior years, as expected
-
Includes $9.7m FX headwind, 12% growth excluding FX
11
© 2021 WiseTech Global 1. Revenue split in bridge includes FX.
Revenue growth drivers
CargoWise recurring revenue delivers 31% CAGR FY16 to FY21 (constant currency) A$m
CargoWise recurring revenue growth
- 31% CAGR FY16 to FY21
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507.5
175.9
9.6
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Significant R&D investment driving long-term growth
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Revenue growth of $237.4m, ~4X over the last 5 years
-
Major recurring revenue growth drivers (averages per year)[1]
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~12pp Large Global Freight Forwarder rollouts ~6pp New customers’ FY17 to FY21 cohorts
-
~4pp New product features and enhancements reflected in price ~3pp Existing customer growth and market share
-
~3pp Major new product releases
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CargoWise
recurring
31% CAGR FY16-FY21
321.9 +$237.4m FY16-FY21
100.9
16.1 0.3 CargoWise recurring revenue growth drivers are averages
over a five-year period;
84.5 discrete annual growth
drivers may vary each year
FY16 FY21
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CargoWise recurring CargoWise recurring CargoWise non-recurring CargoWise non-recurring Acquired Acquisition revenue revenue revenue
FY16 revenue is in constant currency terms based on FY21 average exchange rate
- ~3pp Market growth
31% CAGR FY16 to FY21
-
CargoWise non-recurring revenue mainly driven by increase in customer paid product enhancements - important future growth enabler
-
Acquired businesses drive strategic product development in CargoWise customs and adjacencies, as well as adding to overall revenue growth
Future revenue growth drivers
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CargoWise recurring revenue growth consistent with historical experience, and accelerated growth across:
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Large Global Freight Forwarder rollouts and further contract wins
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New products and features from acquisitions e.g. Customs, Rates and R&D investment
-
Large new product horizons e.g. CargoWise Neo
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Potential strategically significant acquisition opportunities
12
Details on inclusions in CargoWise recurring revenue growth drivers on slide 38. Revenue growth measured in "new product features and enhancements reflected in price", "major new product releases” and "market growth" is excluded from revenue growth measured in "Large Global Freight Forwarder rollouts", "New customers' FY17 to FY21 cohorts" and "Existing customer growth and market share“.
© 2021 WiseTech Global
FY21 operating expenses[1]
% of revenue
Revenue growth driving margin expansion, supported by synergies and efficiencies
Expenses (A$m)
Overall operating expenses down 9pp as a % of revenue as operating leverage increased
Product design & development (A$m)
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18% 19% 19% 20%
17%
84.9 88.8
66.1
41.1
28.4
FY17 FY18 FY19 FY20 FY21
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Sales & marketing (A$m)
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13% 13%
10%
10% 9%
57.0
44.0 45.0
15.4 22.6
FY17 FY18 FY19 FY20 FY21
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General & administration (A$m)
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22%
21%
20% 20%
18%
84.1 89.1
68.3
45.5
33.3
FY17 FY18 FY19 FY20 FY21
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Product design & development expense
Sales & marketing expense
General & administration (G&A) expense
$3.9m increase in FY21 to $88.8m, reflecting investment in innovation and development of CargoWise. Down 3pp as a % of revenue for the Group due to the benefits of cost reductions.
~55% of expenses supporting maintenance of acquired legacy products, expected to decrease over time
Down 4pp as a % of revenue in FY21 reflecting:
-
cost reductions in acquisitions
-
a more targeted sales & marketing focus on Top 25 Global Freight Forwarders and top 200 global logistics providers
-
reduction in travel and tradeshow costs due to COVID-19
Down 2pp as a % of revenue primarily driven by cost reduction initiatives and benefits from lower costs due to COVID-19. Includes $8.2m in restructuring cost. G&A excluding restructuring costs was 2pp lower at 16% of revenue
13 © 2021 WiseTech Global 1. Reconciliation of statutory expenses to non-statutory expenses on slide 36.
FY21 research and development
Investment in innovation and product development continues to be a priority
Investment in innovation and product development (A$m)
Product investment
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37%
R&D % 33% 34% 33%
32%
of revenue
167.1
159.1
78.3 47% Capitalised
113.0 74.2
46.9
76.4
50.4 35.3
22.0 84.9 88.8 53% Expensed
66.1
41.1
28.4
FY17 FY18 FY19 FY20 FY21
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5% increase in innovation and product development in FY21 vs. FY20, focused on product enhancements and further developing the CargoWise platform
-
33% of revenue reinvested in R&D in FY21
-
Capitalised development increased 6% to $78.3 million in FY21 vs. FY20, reflecting increased investment including the development of native customs and accounting in CargoWise
-
47% of R&D investment capitalised in FY21, flat vs. FY20
-
Proportion of R&D investment capitalised broadly in the range of 40%-50%
-
Maintenance, bug fixes and research costs are expensed
-
Over $560m in product investment in the last 5 years (FY17 to FY21)
-
Delivered 1,096 new CargoWise product features and enhancements in FY21 and over 4,300 in the last 5 years (FY17 to FY21)
14 © 2021 WiseTech Global
FY21 balance sheet
Strong balance sheet and liquidity providing solid platform for future growth
| A$m | 30 Jun 20 | 30 Jun 21 |
|---|---|---|
| Cash | 223.7 | 315.0 |
| Receivables | 59.6 | 74.1 |
| Derivative financial instruments | 4.6 | 3.3 |
| Other current assets | 22.3 | 22.6 |
| Intangible assets | 885.0 | 904.5 |
| Other non-current assets | 81.7 | 80.2 |
| Total assets | 1,276.9 | 1,399.8 |
| Current liabilities | 157.2 | 188.0 |
| Borrowings | - | - |
| Non-current liabilities | 116.4 | 105.9 |
| Total liabilities | 273.5 | 293.9 |
| Net assets | 1,003.4 | 1,106.0 |
| Share capital | 779.8 | 827.8 |
| Retained earnings & reserves | 223.6 | 278.2 |
| Total equity | 1,003.4 | 1,106.0 |
Strong liquidity
-
$315.0m in cash
-
Post-FY21 refinancing of debt facility with a new unsecured four-year $225m bi-lateral facility, supported by six banks
Receivables
- 24% receivables increase, in-line with revenue growth
Intangible assets
- $19.5m increase reflecting investment in new capitalised development, partially offset by amortisation and foreign exchange
Share capital
- $48.0m increase in share capital reflecting new shares issues to Employee Share Trust for future vesting and for acquisition earnout considerations
15 © 2021 WiseTech Global
FY21 cash flow performance
Highly cash-generative business model delivering strong free cash flow for ongoing investment in growth
| A$m | FY20 | FY21 | % change |
|---|---|---|---|
| EBITDA | 126.7 | 206.7 | 63% |
| Non-cash items in EBITDA | 20.2 | 20.3 | -% |
| Working capital changes | (0.5) | 2.9 | nm 1 |
| Operating cash flow | 146.3 | 229.9 | 57% |
| Capitalised development costs | (70.4) | (74.5) | 6% |
| Other Capital Expenditure | (20.1) | (16.3) | (19)% |
| Free cash flow | 55.8 | 139.2 | 149% |
| Operating cash flow conversion | 116% | 111% | (4)pp |
| Free cash flow conversion | 44% | 67% | 23pp |
| Free cash flow margin 13% 27% 14pp |
Strong operating cash flow
-
Operating cash flows were $229.9m (FY20: $146.3m), up 57% on FY20, demonstrating the strength of our highly cash-generative operating model
-
Increase in operating cash flow reinvested into long-term growth, $90.8m invested primarily in product development and data centre hardware
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111% operating cash flow conversion rate, down 5pp on FY20
-
Non-cash items flat reflecting an increase in share-based payments which was offset by a reduction in employee provisions
-
Changes in working capital mainly reflect increases in trade payables and customer deposits, partially offset by increases in receivables from revenue growth
-
FY21 includes $8.6m of payments relating to restructuring costs
Free cash flow
-
FY21 free cash flow up 149% driven by higher EBITDA
-
67% free cash flow conversion rate, up 23pp on FY20
-
Free cash flow margin up 14pp on FY20, reflecting improved operating cash flow
16 © 2021 WiseTech Global
- Not measured.
SECTION 03
Strategy & outlook RICHARD WHITE, CEO & FOUNDER
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WiseTech's strategy designed to leverage structural changes
Our people facilitate the acceleration of our long-term strategy
To be the operating system for global logistics
Our strategy is designed to accelerate growth by leveraging structural changes
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Demand for integrated global
Need to replace ageing Logistics providers pursuing
software solutions with
legacy systems industry consolidation
increased visibility
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Our people are focused on the 3Ps to deliver on our vision
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Product Penetration
Extend Expand
technology market
lead penetration
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Profitability
Drive
operational
efficiency
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18 © 2021 WiseTech Global
Product – the CargoWise ecosystem
Our product development strategy is designed to enable and empower the world’s supply chains
FY08-13 FY14–17 FY18–20 FY21–23 FY24–BEYOND Introduced Launched Grew Deliver Extend Cloud-based solution CargoWise and 34 acquisitions CargoWise expansion Neo rollout initiation signed DHL GF & 7 global rollouts & penetration & Land Transport
Product development strategy
>$560m invested in R&D since FY17 delivering 4,300+ product features
Neo (beta)
Global native customs
Global rates
& cross-border engines and compliance ecosystem
engines and
eCommerce
International
Ecommerce
Enterprise-wide
functionality +
other modules
Landside logistics
- and land transport
Neo
Global integrated platform for BCOs
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Product development priorities accelerated by people & strategic acquisitions
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-
Foothold acquisitions
-
BorderWise compliance libraries
-
Cypress machine learning
-
Cargoguide
-
CargoSphere
-
X-ware
-
Pierbridge
-
SmartFreight
-
• Foothold acquisitions
-
Containerchain
-
CCN
-
Containerchain
-
Depot Systems
-
• CMS
-
Microlistics • CMS
-
• Softship • • X-ware • Trinium • Foothold acquisitions • TransLogix
-
SaaS Transportation
-
• Trinium
19
© 2021 WiseTech Global
Product
Our #1 development priority - enhancing our technology lead in global customs & cross-border compliance
Global customs
Global native customs and cross-border compliance
Current development pipeline
| Global customs Global native customs and cross-border compliance |
Current development pipeline |
|---|---|
| • Our native customs platform now covers over 20 customs jurisdictionsrepresenting ~45% of global manufactured trade flows, up from ~35% in FY20 - Production Releases1 of France, Italy, Spain & Puerto Rico in FY21 • Technology experts from acquisitions added to customs development team • Production Release of customs builds of France, Italy and Spain facilitatesnative development process of priority European markets • Production Releases subject toregulatory opportunities and requirements France Spain Italy Puerto Rico Australia New Zealand USA Canada UK South Africa Singapore Mainland China Taiwan Hong Kong + 8 smaller customs jurisdictions (ASYCUDA)1 ~45% Our global customs and cross-border compliance platform will create, manage and clear import / export declarations for customs jurisdictions covering~90% of global manufactured trade flows Production Release1 Our development goal Progress to date |
Priority Europe Germany2 Ireland3 Netherlands Belgium Denmark Norway Sweden Turkey Switzerland Poland Priority South America Brazil Argentina Chile Costa Rica Dominican Republic Panama Paraguay South Korea Japan Other strategic Asian economies Priority Asia Other important trading economies Rest of World |
| ~90% |
Bolded development pipeline customs jurisdictions represent significant markets
-
Germany production release continues to be delayed due to changes in the government’s own timetable.
-
Ireland reprioritised to focus on urgent mainland UK/Northern Ireland/Brexit related compliance work for existing products.
20
- See definitions on slide 40.
© 2021 WiseTech Global
Product
Adding functionalities and further extensions of the CargoWise ecosystem
Global rates
Build out global rates engine and ecosystem
eCommerce
Expand International eCommerce
Landside logistics
& land transport
Extension into fragmented market
Neo
Global integrated platform for BCOs to manage their freight
-
Universal rates engine for carrier
-
Our booking-to-payment process:
-
development • spot rates and instant bookings goal • block space agreements • allocation management guided carrier selection, P&L simulation
Single platform for international eCommerce fulfilment supply chain in major regions:
-
final mile delivery
-
track & trace
-
• International freight forwarding & parcel
Land Transport solution to streamline order-to-delivery in a fragmented market:
-
landside logistics
-
• transit warehouse • container management • land transport
Global integrated platform for Beneficial Cargo Owners
(BCOs) with data connectivity and visibility to book, track, trace and manage freight
-
Progress • Cargoguide (air) and • eCommerce solution live in • Long–term opportunity - • Long-term opportunity - to date CargoSphere (sea) Australia, New Zealand and the prioritising landside logistics positive feedback from BCO integrations completed & in United States • Transit Warehouse released development partners production with several major • Added sea freight to existing in CargoWise and in production • Deployment of Neo beta customers air eCommerce functionalities with customers version in FY21 to a select
-
• Product development teams focused on native rewrite • Strong sales pipeline • Top 25 Global Freight number of BCOs via our customers rates engine • Continued eCommerce enhancement as customer trials Forwarder implementation agreementTransit Warehouse • Commenced Neo extension for customer and BCO specific and implementations proceed needs
21 © 2021 WiseTech Global
Penetration
Market penetration momentum with increased existing customer usage & new global rollout wins
Focus on the Top 25 Global Freight Forwarders[1] & the top 200 global logistics providers
6 new global rollouts by Large Global Freight Forwarders[1] secured in FY21.
Post-FY21 additional global rollout signing with FedEx.
CargoWise has global rollouts
’In Production’ or ‘Contracted and In Progress’ with 36 Large Global Freight Forwarders at 30 June 2021:
-
29 are ‘ In Production’[1]
-
7 are ‘ Contracted and In Progress[’][1] (i.e. in the process of a global rollout)
Of the 36 global rollouts in place at 30 June 2021, 10 are with Top 25 Global Freight Forwarders[2] .
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----- Start of picture text -----
Global rollouts – CargoWise Large Global Freight Forwarders [3]
Signed post 30 June 2021 [4]
Contracted and in progress of global rollout
FEDEX
In Production – globally rolled out through signing or organically
HANKYU
HANSHIN
WTC DEUGRO
IPO
GEBRUDER WEISS PENTAGON FREIGHT SEAFRIGO
FRACHT YUSEN SENATOR DHL DE WELL PARTNERCARGO-
OIA SEKO MAINFREIGHT LOGISTICSXPO WORLDWIDE LOGISTICSAIT CARRIERGREEN LOGISTICSCROWLEY EFL BOLLORÉ HELLMANN HARTRODTA.
TRANSTAR DSV TOLL ROHLIG GEODIS WACO/ TIGERS JAS CargoWiseLaunch of LOGWIN NOATUM CLASQUIN GEFCO SHIPPINGASIA ARAMEX CEVA
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Customers have been categorised in the financial year that reflects the later of their CargoWise revenue cohort or global contract signing date (if applicable).
----- End of picture text -----
-
Of the 10 global rollout customers that are in the Top 25, Global Freight Forwarders, 8 are ”In Production” and 2 are “Contracted and In Progress”.
-
See definitions on slide 40.
22
© 2021 WiseTech Global
-
Reconciliation of global rollouts reported on 1H21 and FY21 on slide 39.
-
Includes customer signings post-FY21 up to and including at 24 August 2021.
Penetration
36 Large Global Freight Forwarder rollouts are driving long term revenue growth
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7 Large Global Freight
Forwarders are
‘Contracted and
In Progress’
158% CAGR
FY19-FY21
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Annual revenue (A$m)[1] in constant currency
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158% CAGR
FY19-FY21
21 Large Global Freight
Forwarders are
‘In Production’
26% CAGR
FY16 –FY21
8 Top 25
Global Freight
Forwarders are
‘In Production’
46% CAGR
FY16 –FY21
29 Large Global Freight
Forwarders are
‘In Production’
37% CAGR
FY16 –FY21
FY16 FY17 FY18 FY19 FY20 FY21
Top 25 Global FF In Production In Production (not Top 25 Global FF) Contracted and In Progress
----- End of picture text -----
29 Large Global Freight Forwarders with rollouts of CargoWise ‘In Production’[2] have delivered:
-
Revenue growth of 37% CAGR over the period FY16 to FY21, driven by:
-
Ongoing growth of initial global rollouts including DHL, DSV, Toll, Yusen and Geodis
-
Adoption of more CargoWise modules, new products, features, enhancements & geographies
-
Customer M&A activity integrating their acquired businesses onto CargoWise
-
8 are Top 25 Global Freight Forwarders and have delivered revenue growth of 46% CAGR over the period FY16 to FY21
Significant future growth expected from:
-
The 7 Large Global Freight Forwarders that are ‘Contracted and In Progress’[1] given less than 10% of their expected users are currently live on CargoWise and they have delivered revenue growth of 158% CAGR over the period FY19 to FY21
-
The existing 29 Large Global Freight Forwarders currently ‘In Production’ as their global rollouts continue to expand
-
Adoption of new products and features, including customs as penetration of global manufactured trade flows increases from ~45% to ~90% target
-
Further industry M&A driving consolidation and integration onto CargoWise
-
Future new Large Global Freight Forwarder global contracts wins, including FedEx
23
© 2021 WiseTech Global
- Revenue is in constant currency terms based on FY21 average exchange rates. 2. See definitions on slide 40.
Profitability
Organisation-wide efficiency program to maximise operating leverage and support growth
Organisation-wide efficiency and acquisition synergy program to support scalability and delivery of WiseTech’s strategic vision
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→
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Efficiency initiatives to date
-
Centralising physical operations and product development hubs
-
Data centre consolidation and data migration of acquired businesses
-
Gross reduction of 357[1] employees and contractors resulting from the integration of acquired teams
-
Streamlining facility & office support
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Streamline Maximise Allocate processes WiseTech’s resources and teams operating leverage appropriately
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----- Start of picture text -----
Delivered $13.8m in net cost reductions in FY21
FY21 (after $8.2m restructuring costs)
Exceeded target of $10m
Exceeding
cost
reduction Cost reduction run-rate ~$40m for FY22
FY22
targets
Exceeding previous target of $20m-$30m
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24
357 reflects the gross reduction of both employees and contractors across the Company. Net employee headcount in FY21 decreased by 264 to 1,860 employees (FY20: 2,124 employees).
© 2021 WiseTech Global
FY22 guidance
Strong growth outlook
FY22 revenue
$600m - $635m
18% - 25% FY22 growth vs FY21
FY22 EBITDA
$260m - $285m
26% - 38% FY22 growth vs FY21
FY22 EBITDA %
FY22 guidance assumptions
1 CargoWise: revenue growth of ~30% - 40% (excluding FX)
-
Strong momentum from FY21 run rate
-
FY22 first and second half splits broadly similar to FY21
-
FX headwind reduces growth by ~3pp
2 Acquisitions:
-
No new acquisitions not already closed
-
Flat revenue growth
3 FX: headwind $10m revenue and $7m EBITDA
-
Additional FX variability, partially offset by hedging
-
See Appendix for sensitivity analysis
Guidance provided in line with these assumptions and those in the Appendix, slide 29.
Uncertainty around future economic and industrial production growth and pandemic stimulus measures may lead to alternative outcomes.
Prevailing uncertainties relating to sovereign and geopolitical risk may also reduce assumed growth rate.
4 Operating Expenses:
43% - 45%
2pp - 4pp FY22 vs FY21
-
~$40m cost reduction run rate for FY22, $13.8m net benefit achieved in FY21, results in ~$26m net cost reductions in FY22 vs. FY21
-
~$70m - $80m additional cost investments to support long-term growth, staff retention and post COVID-19 activities
25 © 2021 WiseTech Global
Strategic approach delivering long-term sustainable shareholder value
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----- Start of picture text -----
$600.0 Revenue (A$m) 600-635 $380.0 EBITDAEBITDA Margin %(A$m) 43-45% 45%
41%
507.5 $330.0
40%
$500.0 260-285
429.4 35% 35%
$280.0 35%
$400.0 348.3 30%
$230.0 31% 206.7 30%
30%
$300.0 221.6 $180.0 25%
126.7
$200.0 153.8 $130.0 108.1 20%
103.3 78.0
$100.0 $80.0 53.9 15%
31.5
$30.0 10%
$-
FY16 PF FY17 FY18 FY19 FY20 FY21 FY22 -$20.0 FY16 PF FY17 FY18 FY19 FY20 FY21 FY22 5%
Guidance
Guidance
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-
• • • •
-
Delivering strong Gaining momentum Expanding CargoWise Increasing operating Growing EPS revenue growth in market penetration ecosystem leverage FY16 PF: 5.4cps to FY21: 33.3cps
26 © 2021 WiseTech Global
SECTION 04
Q&A
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SECTION 05
Appendices
Slides
-
FY22 guidance assumptions and FX
-
Customer growth and low attrition
-
Earnings diversification
-
Revenue growth excluding FX
-
Overview of revenue licensing models
-
Income statement
-
Key operating metrics
-
Reconciliation of statutory expenses to non-statutory expenses
-
Reconciliation of Underlying NPAT, NPATA and Underlying ETR
-
CargoWise recurring revenue growth drivers
-
Global rollouts
-
Glossary
-
Important notice and disclaimer
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FY22 guidance assumptions and FX
What is included in the FY22 guidance:
-
Retention of existing customers with CargoWise usage growth consistent with historical levels
-
New customer growth consistent with historical levels
-
New product and feature launches monetised
-
Contractual increases in revenue from existing customers, including those reflecting the end of temporary pricing arrangements
-
Standard price increases
-
Full year effect of FY21 acquisition and minimal growth for acquisitions as a group overall
What is not included in the guidance:
-
Revenue from new products in development but not planned to be commercialised
-
Benefits from migration of customers from acquired platforms, where CargoWise development is yet to be completed
-
Changes in the mix of invoicing currencies
-
Future potential acquisitions, revenues and associated costs
-
Uncertainty around future economic and industrial production growth, pandemic stimulus measures, sovereign and geopolitical risk
-
Any impact from supply chain disruption related to ongoing pandemic
| FX rates1 v AUD | FY21 Actual | FY22 Guidance |
|---|---|---|
| USD | 0.72 | 0.74 |
| EUR | 0.61 | 0.63 |
| GBP | 0.56 | 0.54 |
| ZAR | 11.58 | 10.73 |
| TRY | 5.58 | 6.45 |
| NZD | 1.07 | 1.07 |
| RMB | 4.94 | 4.85 |
| CHF | 0.67 | 0.68 |
| Sensitivities2 | Increase/ decrease |
FY22 Revenue $m | FY22 EBITDA $m |
|---|---|---|---|
| FX rates vs AUD | |||
| USD | +/- 5% | -3.6 / +4.5 | -1.9 / +2.6 |
| EUR | +/- 5% | -2.7 / +3.1 | -0.6 / +0.9 |
| GBP | +/- 5% | -0.7 / +0.7 | -0.3 / +0.3 |
| ZAR | +/- 10% | -1.0 / +1.3 | -0.7 / +0.9 |
| TRY | +/- 10% | -0.1 / +0.1 | +0.1 / -0.1 |
| NZD | +/- 5% | -0.8 / +0.9 | -0.8 / +0.9 |
| RMB | +/- 5% | -0.2 / +0.2 | +0.1 / -0.1 |
| CHF | +/- 5% | -0.4 / +0.5 | - |
Foreign Exchange
- 73% of FY21 revenue in non-AUD currencies, 2pp lower than FY20 (75%)
- Natural hedges in some regions with both revenue and expenses denominated in local currencies – including acquisitions
- 44% of FY21 revenue in non-local currencies due to impact from overseas acquisitions and mix of transactions and users in CargoWise
- Hedged positions in place to cover ~60%-65% of FY22 USD and EUR revenue
-
29 © 2021 WiseTech Global 1. FX rates include the effects of FX hedging.
-
Sensitivities include the effects of FX hedging.
Customer growth and low attrition
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CargoWise [1] application suite revenue by customer cohort
A$m
350
300
250
200
150
100
50
0
FY15 FY16 FY17 FY18 FY19 FY20 FY21
FY06 & Prior FY07 FY08 FY09 FY10 FY11
FY12 FY13 FY14 FY15 FY16 FY17
FY18 FY19 FY20 FY21
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Increasing adoption by Large Global
Freight Forwarders
Top 300 customers now deliver ~80%
of CargoWise revenue
Customers stay and use more
<1% attrition every year for last 9 years [2]
Annual customer attrition rate
FY21 revenue growth achieved across
all customer cohorts (FY06 & Prior - FY21)
----- End of picture text -----
30
- This charts includes CargoWise One revenue.
© 2021 WiseTech Global
- See definition on slide 40. Based on attrition rate <1% for each year of the last 9 financial years FY13–FY21.
Earnings diversification
FY21 Revenue by customers[1] (%)
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----- Start of picture text -----
20%
Top 10 largest customers
4%
Top 11-20 largest customers
Rest of customers
76%
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We maintain a prudent and robust diversity of revenue across our customer base
FY21 Revenue by geography[2,3] (%)
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----- Start of picture text -----
28%
41% Europe, Middle East & Africa
Asia Pacific
Americas
31%
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We are a global company with customers operating in 169 countries as at 30 June 2021 (160 countries as at 30 June 2020)
Our global presence provides important revenue diversification across geographies and currencies
31
- FY20 Revenue by customers (%) – Top 10 largest customers 20%; Top 11-20 largest customers 5%; Rest of customers 75%. 2. Determined by invoicing location.
© 2021 WiseTech Global
- FY20 Revenue by geography (%) – Europe, Middle East & Africa 39%; Asia Pacific 31%; Americas 30%.
Revenue growth excluding FX
| Reported revenue and reported revenue growth FY21 FX (tailwind)/headwind Revenue and revenue growth - excluding FX |
A$m | FY20 | FY20 | FY20 | FY21 | FY21 | FY21 | $ change | $ change | $ change | % change | % change | % change |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Recurring revenue Non- recurring revenue Total revenue |
Recurring revenue Non- recurring revenue Total revenue |
Recurring revenue Non- recurring revenue Total revenue |
Recurring revenue Non- recurring revenue Total revenue |
||||||||||
| CargoWise revenue | 253.9 | 9.1 | 263.0 | 321.9 | 9.6 | 331.6 | 68.0 | 0.6 | 68.6 | 27% | 6% | 26% | |
| Acquisition revenue | 128.1 | 38.3 | 166.4 | 136.1 | 39.8 | 175.9 | 8.0 | 1.5 | 9.5 | 6% | 4% | 6% | |
| Total revenue | 382.0 47.4 429.4 |
458.0 49.4 507.5 |
76.0 2.1 78.1 |
20% 4% 18% |
|||||||||
| CargoWise revenue | 13.5 | 0.1 | 13.6 | ||||||||||
| Acquisition revenue | 7.7 | 2.0 | 9.7 | ||||||||||
| Total revenue | 21.3 2.1 23.4 |
||||||||||||
| CargoWise revenue | 253.9 | 9.1 | 263.0 | 335.5 | 9.7 | 345.2 | 81.6 | 0.7 | 82.2 | 32% | 7% | 31% | |
| Acquisition revenue | 128.1 | 38.3 | 166.4 | 143.8 | 41.8 | 185.6 | 15.7 | 3.5 | 19.2 | 12% | 9% | 12% | |
| Total revenue | 382.0 47.4 429.4 |
479.3 51.5 530.8 |
97.3 4.2 101.4 |
25% 9% 24% |
32 © 2021 WiseTech Global
Overview of revenue licensing models
Total revenue by licence type (A$m)
| Total revenue by licence type (A$m) | Total revenue by licence type (A$m) | Total revenue by licence type (A$m) | Total revenue by licence type (A$m) | Total revenue by licence type (A$m) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| OTL & support services OTL maintenance On-Demand |
FY17 FY18 FY19 FY20 FY21 142.4 198.7 307.6 382.0 458.0 93% 90% 88% 89% 90% 127.3 171.0 249.8 309.2 383.0 15.1 27.7 57.8 72.8 75.1 11.4 22.9 40.7 47.4 49.4 153.8 221.6 348.3 429.4 507.5 FY17 FY18 FY19 FY20 FY21 |
Recurring revenue (90% of revenue)1 | Other revenue (10% of revenue)1 |
|||||||||
| Revenue | On-Demand Licensing 75%1 |
One-Time Licensing (OTL) maintenance 15%1 |
OTL & support services 10%1 |
|||||||||
| Licence | Seat + Transaction Licensing (STL) |
Module User Licensing (MUL) |
OTL maintenance |
OTL | Support services |
|||||||
| Revenue drivers |
Price drivers • Seat licence fee • Transaction fee Volume drivers • Monthly number of seats & users • Monthly transactions |
Transition pricing & commitment agreements |
Price drivers • Price per user • Price per module used Volume drivers • Number of users • Monthly modules used (only 1% of CargoWise revenue is MUL) |
Price drivers: • Annual maintenance price per licence Volume drivers: • Number of licences |
Price drivers: • One-time price per perpetual licence Volume drivers: • Number of licences |
Ad hoc revenue (professional services, training &customer paid product enhancements) |
||||||
| FY17 | FY18 | FY19 | FY20 | FY21 | ||||||||
| Recurring revenue (A$m) |
142.4 | 198.7 | 307.6 | 382.0 | 458.0 | |||||||
| CargoWise | ✓ | ✓ | ✓ | ✘ | ✘ | ✓ | ||||||
| % of total revenue |
93% | 90% | 88% | 89% | 90% | |||||||
33
© 2021 WiseTech Global 1. Represents percentage of FY21 total revenue.
Income statement
| A$m | FY20 | FY21 |
|---|---|---|
| Revenue Recurring On-Demand licence 309.2 Recurring OTL maintenance 72.8 OTL and support services 47.4 |
383.0 75.1 49.4 |
|
| Total revenue 429.4 Cost of revenues (76.7) |
507.5 (77.9) |
|
| Grossprofit 352.7 |
429.5 | |
| Operating expenses Product design and development (84.9) Sales and marketing (57.0) General and administration (84.1) |
(88.8) (45.0) (89.1) |
|
| Total operating expenses (226.0) |
(222.9) | |
| EBITDA 126.7 Depreciation (17.1) Amortisation (18.5) |
206.7 (19.6) (27.8) |
|
| EBITA 91.1 Acquired amortisation (10.6) |
159.2 (9.4) |
|
| EBIT 80.5 Net finance costs (9.8) Fair valuegain on contingent consideration 111.0 |
149.8 (4.1) 2.2 |
|
| Profit before income tax 181.8 Tax expense (21.0) |
147.9 (39.9) |
|
| NPAT 160.8 |
108.1 | |
| Underlying NPAT1 52.6 |
105.8 | |
| NPATA2 64.6 |
113.6 |
34
- See definitions on slide 40. Underlying NPAT excludes fair value adjustments from changes to acquisition contingent consideration (FY21: $2.2m, FY20: $111.0m) and contingent consideration interest unwind net of tax (FY21: nil, FY20: $2.9m).
© 2021 WiseTech Global
- See definitions on slide 40.
Key operating metrics
| FY20 | FY21 | FY21 CargoWise1 |
|---|---|---|
| Total revenue growth vs. prior year 23% |
18% | 26% |
| Recurring revenue – % of total revenue 89% |
90% | 97% |
| On-Demand licence revenue – % of total revenue 72% |
75% | 97% |
| Gross profit margin 82% |
85% | 92% |
| Product design and development - % of total revenue 20% |
17% | 12% |
| Total R&D - % of total revenue 37% |
33% | 30% |
| Sales and marketing - % of total revenue 13% |
9% | 8% |
| General and administration - % of total revenue 20% |
18% | 17% |
| EBITDA margin 30% |
41% | 55% |
| EBIT margin 19% |
30% | |
| Underlying NPAT2 - % of total revenue 12% |
21% | |
| NPATA2 - % of total revenue 18% |
22% | |
| Capitalised development investment A$m 74.2 |
78.3 | |
| Total R&D A$m 159.1 |
167.1 | |
| Effective tax rate 12% |
27% | |
| Underlying effective tax rate2 30% |
27% |
35 © 2021 WiseTech Global
- CargoWise ratios exclude acquisitions since 2012 not embedded into CargoWise and include M&A costs. 2. See definitions on slide 40 and explanatory notes on slide 37.
Reconciliation of statutory expenses to non-statutory expenses
| Statutory to non-statutory reconciliation |
A$m | FY20 | FY21 |
|---|---|---|---|
| Cost of Revenues | |||
| Cost of revenue – statutory | 83.5 | 85.6 | |
| Less: Depreciation & amortisation | 6.8 | 7.6 | |
| Cost of revenues – non-statutory | 76.7 | 77.9 | |
| Product design & development | |||
| Product design & development – statutory | 115.4 | 128.9 | |
| Less: Depreciation & amortisation | 33.1 | 42.5 | |
| Less: Right-of-use asset depreciation capitalised | (2.6) | (2.4) | |
| Product design & development – non-statutory | 84.9 | 88.8 | |
| Sales & marketing | |||
| Sales & marketing – statutory | 62.3 | 50.3 | |
| Less: Depreciation & amortisation | 5.4 | 5.2 | |
| Sales & marketing – non-statutory | 57.0 | 45.0 | |
| General & administration | |||
| General & administration – statutory | 87.7 | 92.9 | |
| Less: Depreciation & amortisation | 3.5 | 3.8 | |
| General & administration – non-statutory | 84.1 | 89.1 |
36 © 2021 WiseTech Global
Reconciliation of Underlying NPAT, NPATA and Underlying ETR
| Net Profit after Tax (NPAT) Effective tax rate |
A$m | FY20 | FY21 |
|---|---|---|---|
| NPAT | 160.8 | 108.1 | |
| Fair value gain on contingent consideration Contingent consideration interest unwind(net of tax) |
(111.0) 2.9 |
(2.2) - |
|
| Underlying NPAT1 | 52.6 | 105.8 | |
| NPAT 160.8 108.1 |
|||
| Fair value gain on contingent consideration Acquired amortisation (net of tax) Contingentconsideration interestunwind (netof tax) |
(111.0) 7.8 4.2 |
(2.2) 6.9 0.9 |
|
| NPATA1 64.6 113.6 |
|||
| A$m | FY20 | FY21 | |
| Profit before income tax | 181.8 | 147.9 | |
| Fair value gain on contingent consideration | (111.0) | (2.2) | |
| Underlying profit before income tax1 Tax expense |
70.7 (21.0) |
145.7 (39.9) |
|
| Underlying effective tax rate (ETR) | 29.7% | 27.4% |
37 © 2021 WiseTech Global 1. See definitions on slide 40.
CargoWise recurring revenue growth drivers
Details on inclusions in each category of revenue drivers
| CargoWise recurring revenue growth drivers | Growth rate FY16 to FY21 (averages per year) | What’s included |
|---|---|---|
| Large Global Freight Forwarder rollouts | 12pp | Growth in users and transactions from Large Global Freight Forwarders1 |
| New customers’ FY17 to FY21 cohorts | 6pp | New CargoWise customers recurring revenue growth from customer cohorts added from FY17 to FY21 (non Large Global Freight Forwarders) |
| New product features and enhancements reflected in price |
4pp | Monetised new product features and enhancements and standard periodic price increases reflecting ongoing product development investment delivering enhancements |
| Existing customer growth and market share | 3pp | Increased usage of CargoWise by existing (non Large Global Freight Forwarders) customers adding transaction volumes, seats and new sites, utilisation of new modules |
| Major new product releases | 3pp | Significant new CargoWise product releases not included in new product features and enhancements |
| Market growth | 3pp | Growth driven by changes in industrial production and world trade in manufactured goods |
| 31% CAGR FY16 to FY21 (28% CAGR from WiseTech specific growth factors) |
CargoWise recurring revenue growth drivers are averages over a five-year period; discrete annual growth drivers may vary each year
-
See definitions on slide 40.
-
Revenue growth measured in "new product features and enhancements reflected in price", "major new product releases" and "market growth" is excluded from revenue growth measured in "Large Global Freight Forwarder rollouts", "New customers' FY17 to FY21 cohorts" and "Existing customer growth and market share“.
38
© 2021 WiseTech Global
Global rollouts
Reconciliation of CargoWise global rollouts
| In Production | Contracted | Total LGFF1 | Top 25 | ||
| As at 24 Feb 2021 26 8 34 11 |
|||||
| XPO removed from A&A Top 25 Global Freight Forwarders1 |
- | - | - | (1) | |
| New organic rollouts “In Production”: Pentagon Freight, Fracht, AIT Worldwide Logistics |
3 | - | 3 | - | |
| CEVA “Contracted in Progress” to “In Production” | 1 | (1) | - | - | |
| Logistics Plus no longer a Large Global Freight Forwarder2 |
(1) | - | (1) | - | |
| As at 30 Jun 2021 | 29 | 7 | 36 | 10 |
Post-FY21 additional signing of new CargoWise global rollout with FedEx
39
- See definitions on slide 40. 2. Logistics Plus remains a CargoWise customer but no longer meets the Large Global Freight Forwarder definition on slide 40.
© 2021 WiseTech Global
Glossary
| Abbreviation | Definition | First reference slide | |
|---|---|---|---|
| Acquisition Revenue | - | Revenue generated by businesses acquired since 2012 that are not included in CargoWise revenue. | 5 |
| A customer attrition measurement relating to the CargoWise platform (excluding any customers on acquired legacy | |||
| Annual attrition rate | - | platforms). A customer’s users are included in the customer attrition calculation upon leaving i.e. having not used the | 30 |
| product for at least four months. | |||
| A computerised system designed by the United Nations Conference on Trade and Development to administer | |||
| Automated System for Customs Data | ASYCUDA | a jurisdiction's customs. Used by ~100 smaller customs jurisdictions for which we can enable connections upon | 20 |
| customer request. | |||
| “Contracted and In Progress” global rollouts |
Contracted and In Progress |
Customers who are contracted and in progress to grow to rolling out CargoWise in 10 or more countries and for 400 or more registered users. |
22 |
| Global manufactured trade flows | - | Global manufactured trade flows refers to import and export related manufactured commodities | 7 |
| “In Production” global rollouts | In Production | Customers who are operationally live on CargoWise and are using the platform on a production database, having rolled out in 10 or more countries and 400 or more registered users on CargoWise. |
22 |
| Large Global Freight Forwarder | LGFF | A CargoWise customer contracted to grow or who has grown either organically or contractually to 10 or more countries and 400 or more registered users on CargoWise. |
7 |
| Net profit after tax before: acquired amortisation net of tax, contingent consideration interest unwind net of tax, and | |||
| Net Profit After Tax Amortisation | NPATA | fair value changes on contingent consideration. | 34 |
| NPATA is a non-statutory measure used for the purpose of assessing the Group’s performance (see slide 37). | |||
| CargoWise Customs is defined as “Production Release” for a particular country when the product module has been | |||
| Production Release of native customs | Production Release | released into the main CargoWise release build, available for production use by any customer, and is able to be used | 20 |
| for all major customs import / export procedures. | |||
| Top 25 based on Armstrong & Associates, Inc. Top 25 Global Freight Forwarders List ranked by 2020 logistics gross | |||
| Top 25 Global Freight Forwarders | Top 25 Global FF | revenue/turnover and freight forwarding volumes (revenues are company reported or Armstrong & Associates | 7 |
| estimates). Updated 10 August 2021 (see reconciliation of CargoWise global rollouts from 1H21 to FY21 on slide 39). | |||
| Underlying Net Profit After Tax | Underlying NPAT | Net Profit After Tax excluding fair value adjustments from changes to acquisition contingent consideration and contingent consideration interest unwind net of tax(see slide 37). |
5 |
| Underlying profit before income tax | Underlying PBT | Profit before income tax excluding fair value adjustments from changes to acquisition contingent consideration. | 37 |
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