Investor Presentation Daniel Rabie (CEO) and Paul Haworth (CFO) Document Management And Productivity Software
Your Presenters Daniel Rabie Paul Haworth CEO CFO 2015 to 2017: COO of Reckon (ASX:RKN) 7 years in senior corporate and operational with revenues to A$97.8m in 2016, leading fjnance roles with UK listed groups. Most recently Development, Marketing and HR. EMEA Finance Director for Dialight plc. 2010 - 2015: Strategic Director at Reckon. 9 years with Deloitte advising a range of public Guiding company direction across multiple and private technology and software clients. geographies and product categories. Proud father of 2. 10 years experience in the software industry. Founder of numerous startup businesses. Proud father of 2. 2
Overview Update Daniel Rabie - CEO 3
What A Year! 2017 was a great year. And we’re even more excited about the future. We Grew Our We’re Scaling We’re Adding To Our Clear And Focused Recurring Revenue As We Grow Opportunities Growth Strategy 86% total recurring revenue with 34% total operational Increasing and growing our With £2.8m in the bank. a very strong 23% growth rate. leverage in 2017. customer acquisition channels. 4
Results Summary FY17 Total Revenue Recurring Revenue Total Recurring Revenue £’m £’m % 4.8 4.2 86% 4.5 3.8 4.1 3.4 3.7 83% 3.1 H1 16 H2 16 H1 17 H2 17 H1 16 H2 16 H1 17 H2 17 H2 16 H2 17 Annualised MRR At End Of Period Underlying EBITDA Underlying EBITDA Before Corporate Costs £’m £’m £’m H1 16 H2 16 H1 17 H2 17 H1 16 H2 16 H1 17 H2 17 8.8 7.8 (0.06) (0.24) (0.40) 7.1 6.3 (0.78) (0.63) (0.81) H1 16 H2 16 H1 17 H2 17 (0.95) (0.79) 5
OUR MISSION To Make People Productive And Happy 6
A High Subscription Revenue Business High subscription revenue means confjdent projections, stability and continuation of a powerful trend 23% 86% growth rate of total 2017 revenue was subscription 83% of total 2016 revenue was subscription 10 7
Rocketing Customer Growth 60k 55k 50k 57k 45k 40k customers as at Dec 2017 35k 30k 25k 20k 15k 10k 2011 2012 2013 2014 2015 2016 2017 SmartVault acquired 6k new customers added in 2017 for 11% growth 9 8
Engaged Customers. High Adoption. Portal User Growth Digital Signatures 900k 850k 800k 850k 750k 800k 700k 750k 650k 700k 600k 650k 550k 600k 500k 550k 864k 836k 450k 500k 400k 450k 400k 350k digital signatures online portal users as at Dec 2017 as at Dec 2017 300k 350k 250k 300k 250k 200k 200k 150k 100k 100k 50k 50k 0 0 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 11 9
We Dominate Some Major Markets Used by 27 of the Top 100 Used by 11 of the Top 20 Accountancy Firms in Accountancy Firms in the United Kingdom Australia and New Zealand With market-leading customers in many other industry categories 10
Our three Core Products SmartVault Virtual Cabinet GetBusy In development 18.0k Customers At Dec 2017 39.5k Customers At Dec 2017 Document management Document management Document management + software for small to software for medium to MORE for small, medium medium businesses. enterprise businesses. and enterprise businesses. 6 11
The Problems We Solve Wasted time dealing with information issues can lead to a 21.3% loss in an organisation’s total productivity.* Information chaos Email complexity Misfjling & search Stop duplicate fjles, content Control security risks, track fjles, receive Prevent signifjcant search time per worker disorganisation, and data overload. alerts, automatically fjle attachments. per day looking for lost fjles. Poor security Compliance costs Legal approvals View audit trails, reduce risk of Meet regulatory, audit and litigation Digital signatures and smart workfmows confjdential leaks and hacks. requirements to prevent fjnes and damages. signifjcantly reduce contract turnaround time. Version control Document access Information silos One version of the document seen by Log into your document system Integrates with your existing software and everyone, no duplicates and confusion. from outside the offjce. systems so all your fjles live in one place. *ICD 2012 12
Customers In Multiple Industries Manufacturing 2% Medical, Dental or Health Service 2% Construction 2% Nonprofjt 1% Professional Consulting 3% Financial Services 22% Financial Services (other than Accounting) 2% Legal 1% Real Estate 1% Retail 1% SmartVault Virtual Cabinet Other 9% Insurance 6% Property 1% Legal 1% Insolvency 1% Other 19% Accounting and Bookkeeping 75% Accounting 51% 13
Exciting Global Opportunities SmartVault To New Markets Planning launch into the UK and ANZ focusing on the untapped small to medium sized accounting market. Proven New Market Entry Results Virtual Cabinet entered ANZ region in 2015, now it earns £1.3m in recurring revenue with 98% growth in 2017. GetBusy Worldwide Potential Once our new GetBusy product is launched it will be a self service, tech touch product, with a global reach. 14
Cloud Document Management Software Adoption Curve Small & Medium Enormous potential, Accounting with a long way to go. Industry Is Here Innovators Early Early Late Laggards Adopters Majority Majority 15
Data Protection Laws, Security & New Compliance A Powerful Trend For GetBusy GDPR Legislation: 25th May 2018 The EU is launching major new data protection laws requiring every business worldwide storing data about EU citizens to comply. Virtual Cabinet, SmartVault and GetBusy are well placed here to help companies avoid heavy fjnes. Other Legislation & Security Drivers Countries like Australia are implementing their own data protection laws, and online security continues to be a strong driver. GetBusy expects to see ever increasing THOUGHT LEADERSHIP demand from these developments. Our GDPR Guides have been downloaded 50+ times a day since Jan 18 16
Proven Operational Model Sales Marketing Support / Consulting Enterprise Highly skilled sales reps focused on High-end marketing that facilitates High touch support up to on-site issue a narrow set of target prospects. brand awareness, education, resolution complemented by educational Virtual Cabinet Sales cycles supported by technical relationship building and trust, tools and training tailored to the specifjc consultants who implement the complemented by direct support of needs of individual customers. product around customers’ needs. the sales team. Transactional Inside support reps that provide pre Inside sales reps supported by online Feeds highly qualifjed leads to the and post sales support and consulting, content, automation, tools, training, sales team to build pipeline. Removes SmartVault & with tools and training that enable high incentives and metrics that enable roadblocks through educational GetBusy effjciency, helped by customer self-service high effjciency. content and automation that drive tools and educational content. complexity out of the purchase. Self Service Leverage off existing channels Revenue generation with low CAC Automation and tools for easy to market and sales team. (Customer Acquisition Cost). Create on-boarding, plus templates and GetBusy awareness, educational content and educational content that allow customers automation to drive business through to largely resolve any issues they the entire purchase process from encounter on their own. awareness to close. 17
110 Rockstar Employees UK 63 staff USA 30 staff ANZ 17 staff 18
Financial Update Paul Haworth - CFO 19
2017 2016 Growth GBP £’m GBP £’m 8.0 6.5 23% Recurring Revenue Non-Recurring Revenue 1.3 1.3 9.3 7.8 20% Total Revenue GetBusy Gross Profjt 8.6 7.2 21% Financial 93% 92% Gross Margin Performance SG&A Costs (6.3) (5.8) (0.9) (0.3) Corporate Costs Development Costs (2.6) (2.8) (1.2) (1.7) -30% Adjusted EBITDA 20
2017 2016 Growth GBP £’m GBP £’m Recurring Revenue 4.0 3.8 5% United Kingdom United States 2.7 2.1 32% GetBusy Key 1.3 0.6 102% Australia & New Zealand Segment 8.0 6.5 23% Total Achievements Total Revenue 5.1 4.9 4% United Kingdom United States 2.9 2.2 30% 1.3 0.7 98% Australia & New Zealand 9.3 7.8 20% Total 21
2017 2016 Growth GBP £’m GBP £’m Operational EBITDA 2.3 2.3 United Kingdom (0.1) (0.9) United States Australia & New Zealand 0.1 (0.1) GetBusy Key 2.3 1.4 71% Total Segment Development Achievements (1.0) (0.7 ) GetBusy (1.6) (1.9) Existing Products (0.9) (0.3) Corporate Costs (1.2) (1.7) 30% Total Underlying EBITDA 22
2017 GBP £’m Our focus is to ensure cashfmow is Adjusted EBITDA (1.2) carefully monitored Benefjt of signifjcant accrued corporate (0.3) Trade Working Capital expenditure in 2017 Customer payments in advance of (0.3) Deferred Revenue revenue recognition Operating Cashfmow (0.6) GetBusy (0.1) Interest And Tax IT Infrastructure, Houston and Cashfmow (0.2) Capital Expenditure Sydney Fit-Outs Cashfmow Before Funding (0.9) 1.6 Funding Prior To Demerger 3.0 Proceeds Of IPO (0.9) Demerger And IPO Costs Net Cashfmow 2.8 £2.8m in the bank going into 2018. 23
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