Investor Presentation
Tim Sykes, CEO Designate April 2016
Investor Presentation Tim Sykes, CEO Designate April 2016 - - PowerPoint PPT Presentation
Investor Presentation Tim Sykes, CEO Designate April 2016 Disclaimer These presentation slides and the accompanying verbal presentation (the Presentation Materials) do not constitute or form part of any invitation, offer for sale or
Tim Sykes, CEO Designate April 2016
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provider
financial professionals
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Management predict market growth at 10%+ per annum
Networks: Spend analysis: Purchase to pay: Source to contract:
Proactis offers an end-to-end solution with multiple competitive entry points
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Annual benchmark targets:
Enable full spend control Drive broad adoption Seamless integration Provide actionable insights Support global business Built-in controls
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5 year total revenue CAGR c.25% 3 year total revenue CAGR c.35% 3 year organic revenue CAGR c.10%
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Scale +£50m revenue Growth 35%+ overall 10%+ organic Visibility +80% Profitability +25% EBITDA margin FINANCIAL METRICS
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Debt (est.)
£25m secured £35m unsecured
Dividend 1-2% yield
NEW CUSTOMERS MAXIMISE PENETRATION ACQUISITIONS SUPPLIER COMMERCE
Strong organic growth:
Further accretive M&A:
Clear strategy for high growth opportunities:
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January 2016: 23)
SaaS deals: 22 new names (31 January 2016: 14)
customers: 59 deals in the period (31 January 2016: 45)
for Supplier Commerce and Accelerated Payment
anticipated
COMMERCIAL PROGRESS
(31 January 2016: £8.7m)
2016: 3.6%)
July 2016: £26.1m); Annualised3 contracted revenue increased to £22.9m (31 July 2016: £17.6m)
January 2016: £2.4m)
July 2016: £0.5m)
REPORTED RESULTS
1 – Adjusted EBITDA is stated before non-recurring administrative expenses, amortisation of customer related intangible assets and share based payment charges
STRATEGIC PROGRESS
M&A
provider of tender information services to suppliers and a provider of eProcurement systems to buyers
line with expectations: £1.05m revenue; £0.42m EBITDA in 10 weeks
2 – Order Book is the Group’s current contracted revenue that is required to be recognised in future accounting periods 3 – Annualised contracted revenue is the Group’s estimate of the annualised value of revenue of customers currently contracted with the Group
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1. NEW CUSTOMERS 2. MAXIMISE PENETRATION 3. SUPPLIER COMMERCE 4. ACQUISITIONS
Maintaining momentum in the Group’s core business
Benchmarks (forward):
Actual performance:
Note 1: Recovered to 91% at 31 March YTD
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1. NEW CUSTOMERS 2. MAXIMISE PENETRATION 3. SUPPLIER COMMERCE 4. ACQUISITIONS
Cross-sell extended offer into enlarged customer base
Actual performance:
New Solutions:
Benchmarks (forward):
Cross-sell acquired solutions:
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1. NEW CUSTOMERS 2. MAXIMISE PENETRATION 3. SUPPLIER COMMERCE 4. ACQUISITIONS
Extending product reach into Supplier population
3-5yr objective:
500,000 suppliers
Buyers:
Suppliers:
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Supplier Commerce
Supplier Subscriptions:
Accelerated Payment Facility:
Average Buyer:
* Assuming a 4% discount for a 30 day acceleration on 10% take-up
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Supplier Commerce
Market feedback
Risks & challenges
It is taking time to realise … but FY2017 is key
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1. NEW CUSTOMERS 2. MAXIMISE PENETRATION 3. SUPPLIER COMMERCE 4. ACQUISITIONS
Strong M&A track record
Highly active space:
between 2014 and 2016
Target profile:
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EGS Intesource Intelligent Capture Due North
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Millstream provides eProcurement solutions to:
contributors for its bespoke portals and myTenders products
working capital basis funded by a £12.5m Placing and bank debt drawn against new facility of £15.2m provided by HSBC Bank plc
Background Transaction
cash generation
Financials
expands its customer base providing cross-sell
supply side of the procurement process
Rationale
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Post-acquisition performance in line with expectations: Revenues for the ten weeks post-acquisition of £1.05m, EBITDA of £0.42m
Strong performance in the period
Established market leading solutions addressing high growth markets
The Group has a clear and ambitious strategy in place, enabling it to exploit the growing Spend and Procurement marketplace
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SUPPLIER NETWORK SUPPLIER INTERACTION SUPPLIER COMMERCE SOURCE-TO-CONTRACT PURCHASE-TO-PAY SPEND VISIBILITY & ANALYSIS SYSTEMS INTEGRATION EXPERT SERVICES
Supplier Management Sourcing Content Management Purchasing Payables Contract Management Transition Services Advisory Services Managed Services
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SUPPLIER NETWORK SOURCE-TO-CONTRACT PURCHASE-TO-PAY
Supplier Management Sourcing Contract Management Content Management Purchasing Payables
Supplier Directory Qualification On-Boarding Engagement Performance Reviews Event Manager RFx Design Public Notices Response Evaluations Auctions Quick Quotes
SPEND VISIBILITY & ANALYSIS
Contract Repository Event Monitoring Performance Analysis Spend Visibility Catalogue Maintenance Supplier Publishing Punch-Out Marketplace Pricelist Approval Multi-Source Search Authorisation Rules & Workflow Requisitions & Orders Planned Purchasing Receipting Expenses Stores Scan & Data Capture Electronic Invoicing Matching Engine Exception Handling Authorisation Rules & Workflow PCard Reconciliation Accelerated Payment Facility
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SUPPLIER NETWORK SUPPLIER INTERACTION SUPPLIER COMMERCE SPEND VISIBILITY & ANALYSIS
Communication & Collaboration Ordering Invoices Supply Chain Finance
Join Network Self-Service Profile Management View Opportunities Self-Service Catalogue Management Contract Visibility Account Enquiry View & Acknowledge Orders Punch-Out Invoicing Receipt & Status Supplier Self-Billing Purchase Order Flip Accelerated Payments 21