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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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3

© 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 $331.6m24% 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 3.85cps101%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]

  1. See definitions slide 40. For Underlying NPAT see also reconciliation on slide 37.

  2. Decline (Statutory NPAT FY20: $160.8m) reflects a lower fair value gain in FY21 compared to FY20 in relation to acquisition contingent consideration.

  3. 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

  • Global trade Freight Structural changes

  • • '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’

  • • 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,

  • • 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

  • ~4X pre-COVID-19 levels[3]

  • • Freight capacity investment increasing • JAS Worldwide's recently announced acquisition of Greencarrier

  • to prepare for growth post-COVID-19 • DSV statement re interest in acquiring DB Schenker

6

© 2021 WiseTech Global

  1. 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.

  2. 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

  • 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)

  • Geographic expansion of native customs functionality, covering ~45% of global manufactured trade flows[1]

  • Product integration of global rates functionalities onto CargoWise - in production with a number of major customers and native rewrite commenced

  • Post-FY21 additional signing of new global rollout with FedEx

  • 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

  • • 1,096 new CargoWise product and progress with global rollouts on

  • feature enhancements the CargoWise platform

  • Deployed beta version of CargoWise Neo

  • Strong revenue growth drives operating leverage and margin expansion

  • Implementation of organisation-wide efficiency and acquisition synergy program to:

  • streamline processes and teams

  • ensure resources appropriately allocated to support scalability, growth and delivery of WiseTech’s vision

  • Program delivered:

  • $22.0m gross FY21 cost reductions ($8.2m restructuring costs)

  • $13.8m net benefit, exceeded $10m target

  • ~$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)

  • EBIT up 86% on FY20 driven by strong operating performance and 23% D&A growth

  • 23% increase in D&A reflects continued investment in R&D[2 ] to drive future growth

NPAT & earnings per share (eps)

  • 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.

  1. Reconciliation of statutory expenses to non-statutory expenses on page 36 in appendices.
  1. 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

  • Recurring revenue excluding FX grew $97.3m, or 25% in FY21 driven by:

  • 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

  • Increase in revenue from 5 acquisitions in FY20

  • 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:

  • Increase in revenue from 5 acquisitions in FY20

  • The contraction from acquisitions in FY19 and prior years as expected

  • 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:

  • 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

  • $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

  • Revenue growth of $237.4m, ~4X over the last 5 years

  • Major recurring revenue growth drivers (averages per year)[1]

  • ~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

  • CargoWise recurring revenue growth consistent with historical experience, and accelerated growth across:

  • Large Global Freight Forwarder rollouts and further contract wins

  • New products and features from acquisitions e.g. Customs, Rates and R&D investment

  • Large new product horizons e.g. CargoWise Neo

  • 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
----- End of picture text -----

Sales & marketing (A$m)

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----- Start of picture text -----

13% 13%
10%
10% 9%
57.0
44.0 45.0
15.4 22.6
FY17 FY18 FY19 FY20 FY21
----- End of picture text -----

General & administration (A$m)

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----- Start of picture text -----

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

  • 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

  1. 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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----- Start of picture text -----

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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----- Start of picture text -----

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

  1. Germany production release continues to be delayed due to changes in the government’s own timetable.

  2. Ireland reprioritised to focus on urgent mainland UK/Northern Ireland/Brexit related compliance work for existing products.

20

  1. 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

  • ProgressCargoguide (air) and • eCommerce solution live inLong–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 StatesTransit 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 rewriteStrong sales pipelineTop 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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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 -----

  1. 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”.

  2. See definitions on slide 40.

22

© 2021 WiseTech Global

  1. Reconciliation of global rollouts reported on 1H21 and FY21 on slide 39.

  2. 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

  1. 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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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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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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$600.0 Revenue (A$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

  1. FY22 guidance assumptions and FX

  2. Customer growth and low attrition

  3. Earnings diversification

  4. Revenue growth excluding FX

  5. Overview of revenue licensing models

  6. Income statement

  7. Key operating metrics

  8. Reconciliation of statutory expenses to non-statutory expenses

  9. Reconciliation of Underlying NPAT, NPATA and Underlying ETR

  10. CargoWise recurring revenue growth drivers

  11. Global rollouts

  12. Glossary

  13. 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)
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30

  1. This charts includes CargoWise One revenue.

© 2021 WiseTech Global

  1. 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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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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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

  1. 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

  1. 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

  1. 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

  1. 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

  1. 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

  1. See definitions on slide 40.

  2. 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

  1. 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

40

© 2021 WiseTech Global

Important notice and disclaimer

Content of presentation for information purposes only

Preparation of information

Visit wisetechglobal.com/investors

Forward-looking statements

This presentation may contain statements that are, or may be deemed to be, forward-looking statements. Such statements can generally be identified by the use of words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'believe', 'continue', 'objectives', 'outlook', 'guidance‘, ‘forecast’ and similar expressions. Indications of plans, strategies, management objectives, sales and financial performance are also forwardlooking statements.

Such statements are not guarantees of future performance, and involve known and unknown risks, uncertainties, assumptions, contingencies and other factors, many of which are outside the control of WiseTech Global. No representation is made or will be made that any forward-looking statements will be achieved or will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements and WiseTech Global assumes no obligation to update such statements.

No representation or warranty, expressed or implied, is made as to the accuracy, reliability, adequacy or completeness of the information contained in this presentation.

All financial information has been prepared and reviewed in accordance with Australian Accounting Standards. Certain financial data included in this presentation is ‘non-IFRS financial information’. The Company believes that this non-IFRS financial information provides useful insight in measuring the financial performance and condition of WiseTech Global. Readers are cautioned not to place undue reliance on any non-IFRS financial information including ratios included in this presentation.

Presentation of information

  • The financial data in this presentation is provided on a statutory basis but in a non-statutory presentation format (unless otherwise stated)

  • Pro forma (PF) Where indicated, financial measures for periods prior to FY17 are provided on a pro forma basis. Information on the specific pro forma adjustments is disclosed on page 116 of WiseTech Global’s 2019 Annual Report

  • Currency All amounts in this presentation are in Australian dollars unless otherwise stated

  • FY refers to the full year to 30 June, 1H refers to the six months to 31 December, and 2H refers to the six months to 30 June

Past performance

Past performance information in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

  • Rounding Amounts in this presentation have been rounded to the nearest $0.1m. Any differences between this presentation and the accompanying financial statements are due to rounding. Amounts shown as "-" represent zero amounts and amounts less than $50,000 which have been rounded down

Information is not advice

This presentation is not, and is not intended to constitute, financial advice, or an offer or an invitation, solicitation or recommendation to acquire or sell WiseTech Global shares or any other financial products in any jurisdiction and is not a prospectus, product disclosure statement, disclosure document or other offering document under Australian law or any other law. This presentation also does not form the basis of any contract or commitment to sell or apply for securities in WiseTech Global or any of its subsidiaries. It is for information purposes only.

WiseTech Global does not warrant or represent that the information in this presentation is free from errors, omissions or misrepresentations or is suitable for your intended use. The information contained in this presentation has been prepared without taking account of any person’s investment objectives, financial situation or particular needs and nothing contained in this presentation constitutes investment, legal, tax or other advice. The information provided in this presentation may not be suitable for your specific needs and should not be relied upon by you in substitution of you obtaining independent advice. Subject to any terms implied by law and which cannot be excluded, WiseTech Global accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error in, omission from or misrepresentation in this presentation.

Third party information and market data

The views expressed in this presentation contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, reliability, adequacy or completeness of the information. This presentation should not be relied upon as a recommendation or forecast by WiseTech Global. Market share information is based on management estimates except where explicitly identified.

No liability or responsibility

The information in this presentation is provided in summary form and is therefore not necessarily complete.

To the maximum extent permitted by law, WiseTech Global and each of its subsidiaries, affiliates, directors, employees, officers, partners, agents and advisers and any other person involved in the preparation of this presentation disclaim all liability and responsibility (including without limitation, any liability arising from fault or negligence) for any direct or indirect loss or damage which may arise or be suffered through use or reliance on anything contained in, or omitted from, this presentation. WiseTech Global accepts no responsibility or obligation to inform you of any matter arising or coming to its notice, after the date of this presentation, which may affect any matter referred to in this presentation. This presentation should be read in conjunction with WiseTech Global’s other periodic and continuous disclosure announcements lodged with the ASX.

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© 2021 WiseTech Global

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© 2021 WiseTech Global