for personal use only - asx · 5/2/2017 · reweighting of the company’s revenue profile towards...
TRANSCRIPT
Annual General Meeting
2 May 2017
For
per
sona
l use
onl
y
2016 Highlights
• Revenue (excl. grants) increased by 15%• Recurring revenue increased by 16%• EBITDA improved by $1m YoY• Operating cash flow positive in Q4 and
outlook to remain positive
• Port of Salalah (Oman) commenced implementation
• Enhanced technology solution for Ports released (Release One)
• Ports sales pipeline very strong
• Revenues from SaaS recurring revenues & traditional enterprise license
• Baker Young issued initiating coverage
• Local solutions rebranded to ComOps• Rostima brand retained for global airports
• Development team strengthened and enhanced• Board and management team strengthened
For
per
sona
l use
onl
y
Overview of Business
For
per
sona
l use
onl
y
Workforce Management (WFM) Solutions
Enhancing labour effectiveness via a decision support system that enables management to:
• Provide the right personnel at the right location at the right time
• Reduce cost
• Improve service
• Ensure compliance with employment awards and fatigue regulations
• Optimise labour usage to organisational KPIs
Cloud (or on-site to meet client requirements), with full mobility across devices
Enabling customers to make proactive labour cost decisions based on their forecast revenue, operational imperatives, asset utilisation and other KPI’sF
or p
erso
nal u
se o
nly
ComOps WFM Solutions
Asset Optimisation
A comprehensive, modular, integrated WFM Solution.
For
per
sona
l use
onl
y
ComOps WFM Solutions
• Strategic focus on complex environments – Ports, Airports and Transport, substantial presence in Retail, Hospitality and Services.
• Global Reach, with Australian Development Centre
• 180+ customers: ANZ, UK, Europe, USA/Canada,
Middle East, Africa, Asia
• 60+ staff, with Australian, Malaysian and UK
offices
• Strongly growing revenues comprised of Cloud/SaaS
revenue (now >60%), ongoing enterprise sales,
professional services, support and maintenance
• Microsoft Gold Partner – ISO 9001:2015 Accredited
Global customer coverage locations
Jun-14 May-17
Customers 47 180
Sites 62 5,329
Users 162,000 298,207
Staff 242,000 402,072
For
per
sona
l use
onl
y
2016 Achievements & Outlook
For
per
sona
l use
onl
y
2016 Achievements
• Rostima acquisition driving global growth & leadership in ports and airports
• Commenced implementation of ComOps WFM -Ports in Oman
• Completion of Airports implementation in Madrid
• Currently shortlisted to final two for APMT 33 terminals
• Significant Technology Development – Ports Modules
• First implementation of Salvus in years
• Significantly improved customer satisfaction
• Turnaround has been complex, but has delivered strong financial growth in 2016
• Total revenue increased 10% to $10m
• Recurring Revenue (SaaS, support etc) increased >60% to $6m
• Six out of the last nine quarters have reported positive operating cashflows;
• First positive EBITDA in five years
FinancialOperations
For
per
sona
l use
onl
y
Progress on Initiatives
Initiative Progress
1. Strengthened management team • New GM services
2. Senior vertical expertise• Ports Specialist recruited with strong WFM experience• GM / Sales Director being recruited for Aviation in UK
3. Expanded sales team • Extra BDM and Pre-Sales in Sydney
4. Substantial investment in Container Ports system • On Track
5. Common Apps development to cover all systems • On TrackFor
per
sona
l use
onl
y
2016 Financial Outcomes
$’000’s 2014 2015 2016
Revenue (WFM) 6,227 8,181 9,377
Gross Profit (Before Development ) 2,536 3,286 4,131
Gross Profit (Before Development) % 41% 40% 44%
Gross Profit (After Development) 969 874 3,142
Gross Profit (After Development) % 16% 11% 34%
EBITDA (2,476) (731) 67
EBITDA %
Net profit / (loss) after tax (NPAT) (2,701) (3,763) (655)
Net Operating Cash Flows (3,065) 632 (340)
-
2,500
5,000
7,500
10,000
Revenue GP (Ex. Dev) GP
Revenues & Gross Profit
2014 2015 2016
(4,000)
(2,000)
-
2,000
EBITDA NPAT Op. CF
Profits & Cash Flow
2014 2015 2016
For
per
sona
l use
onl
y
Evolution of Revenue Mix
• ComOps’ revenue contribution over time demonstrates the successful reweighting of the Company’s revenue profile towards a recurring revenue and licence fee model (SaaS based)
38%
50%
63% 64%
0%
25%
50%
75%
100%
0
2,500
5,000
7,500
10,000
FY13 FY14 FY15 FY16
Recurring revenue Other operating revenue
% recurring (rhs)
For
per
sona
l use
onl
y
Focus on Shareholder Value
• ASX/NZX currently valuing SaaS and Enterprise Software companies on an average multiple of revenues of 3.8x – 6.5x
• Enterprise software businesses trade at an average of 16x EBITDA. (Most listed SaaS businesses are loss-making, so EBITDA multiples are a less helpful guide to value)
• Revenue growth rates, scale and profitability are key drivers
• ComOps has delivered solid growth in revenue, built its recurring revenue base and improved bottom-line performance
• If ComOps can further accelerate these positive financial trends, opportunity exists for re-rating of the company.
1.0X
6.5X
3.8X
14%
43%
16%
0.0X
2.0X
4.0X
6.0X
8.0X
10.0X
12.0X
ComOps ANZ SaaS ANZ Enterprise
0%
10%
20%
30%
40%
50%
60%
EV/ Revenue
Revenue growth
Notes:ComOps figures are for year ended 31 December 2016Figures for comparable companies are for current financial year. Material outliers have been excludedSource – Thomson Reuters
For
per
sona
l use
onl
y
Market Attributes
• $100+m pa (est.) for ComOps
• Long ownership cycle - 10 years very realistic, plus upgrading for TOS’
• Require a specific ports “fit for purpose” product
ComOps FY17 strategy
• Enhance ComOps “fit for purpose” Ports WFM solution
• Global Framework agreements with Industry leaders
• New port customers
• Initial roll-out pipeline
4,000 Global Ports
1,200 Container Terminals
Ports Opportunity & FY17 Strategy
900 Container Terminals1,200 Container Terminals
ComOpsWFM
addressable market est. @ 30-50%
75% (900+ ports) exploring terminal
automation benefits
For
per
sona
l use
onl
y
Ports Opportunity & FY17 Strategy
• 4th largest global port and cargo inland services provider
• 72 ports in 69 countries across five continents
• Revenues of $4.25 Billion (2015)
• 20,600 Employees
• 3rd largest global port operator
• 70 terminals in 31 countries across 6 continents
• Revenues of $4.0 Billion USD (2015)
• 36,000 employees
• Container handling is core business and generates more than 75% of its revenue.
• PSA & Hutchinson
• Number one and two global ports operators –
For
per
sona
l use
onl
y
• Commenced implementation of ComOps WFM -Ports
• Integration of T&A with Terminal Security Access Control System
• Seamless integration with HR functionality built into WFM to accommodate existing short comings
• Equalise the deployment of flexible engaged employees & minimise overtime payments
• Allowing for redeployment to accommodate changing vessel / landside operational requirements
• Future Ramadan functionality
• Believe that on completion of implementation that APMT will commence rollout across Group
Initial Implementations – Port of Salalah F
or p
erso
nal u
se o
nly
Airports
• Globalia Madrid implementation successfully completed in 2016
• Two more airports signed for 2017; another four planned
• UK Office Team is currently being expanded to meet growth opportunity:
• GM / Sales Director
• Consulting and support staff
• Lead generation showing need for expanded sales capability
• Appears to be substantial untapped opportunity at smaller airports
• USA deregulation of airports opens opportunities
For
per
sona
l use
onl
y
Summary & OutlookF
or p
erso
nal u
se o
nly
Formal Business
For
per
sona
l use
onl
y
Items of Business# Item For Against Discretion Excluded
Total Votes
Cast
Total
For/Discretion
1 Remuneration Report (Votes) 117,864,652 20,298,376 45,068,384 136,223,413 183,231,412 162,933,036
% of Votes cast 64.33% 11.08% 24.60% n/a 100.00% 88.92%
% of Total Securities on Issue 16.44% 2.83% 6.29% 19.01% 25.56% 22.73%
2 Re-Election of Niall Cairns 254,088,065 20,298,376 45,068,384 0 319,454,825 299,156,449
% of Votes cast 79.54% 6.35% 14.11% 0.00% 100.00% 93.65%
% of Total Securities on Issue 35.45% 2.83% 6.29% 0.00% 44.57% 41.74%
Note – total Securities on Issue = 716,753,415
For
per
sona
l use
onl
y
Appendix – Company Overview
For
per
sona
l use
onl
y
OUR EXPERTISE - YOUR PEACE OF MIND
ComOps Limited (www.comops.biz)
ASX code COM
GICS code Software & Services
Business Workforce Management (WFM) solutions
Brands ComOps WFM: e-Tivity, Microster, Rostima, Salvus
Customers 180+ Blue Chip customers globally
Industry sectors Maritime Ports, Airports, Retail, Hospitality, Transport & Services.
Capital Structure (27 April 2017)
No. of shares 717m
Price $0.014
Market capitalisation $10.1m
Directors and Management
Gerry Williams CEO, appointed October 2014
Niall Cairns Chairman, appointed November 2013
Dr Phillip Carter NED, appointed November 2013
Neil Docherty NED, appointed July 2015
Matt Michalewicz NED, appointed March 2016
Christopher Brooke CFO, Company Secretary, appointed Apr 2012
Shareholders
Kestrel Capital 18%
Viburnum Funds 12%
Top 40 83%
Corporate Profile
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
$-
$0.005
$0.010
$0.015
$0.020
1/11/16 1/01/17 1/03/17 1/05/17
Six Month Share Price & Volume
Volume Price
For
per
sona
l use
onl
y
Name Role Bio
Niall CairnsNon-Exec Chair
• Joint MD of Kestrel Capital with 25+years experience of direct seed, venture capital, private equity and listedcompany experience focused on technology growth investments and driving global growth
• Significant transaction expertise, operational & director level experience, technology investment, track recordof value creation and exits in the listed & unlisted markets
Dr Phillip Carter Non-Executive Director
• Joint MD of Kestrel Capital, Phillip has extensive experience developing and financing technology richcompanies in Australasia, Europe and USA
• Previously a director of leading UK-based technology firm, managed the InterTechnology Fund, recognised byEVCA as one of the most active development capital funds in Europe
Neil Docherty
Non-Executive Director
• Extensive CEO and board level experience including managing growth, go‐to‐market strategies, sales andservices
• Previously CEO of DMR Consulting (1,000 staff), EGM of Fujitsu Australia and director of a number of listedand unlisted IT companies. Experience also includes assisting with IT M&A.
Mathew Michalewicz
Non-Executive Director
• 20-year track record of starting, growing, and exiting software companies to Global 500 companies• Extensive CEO and board experience• Background in corporate finance, technology commercialisation, and software sales and marketing
Board of DirectorsF
or p
erso
nal u
se o
nly
Name Role Bio
Gerry WilliamsChief ExecutiveOfficer
• Appointed CEO in October 2014• Mr Williams has a 25 year career in IT spanning multiple GM roles across the areas of sales, pre-sales, customer service,
implementation and support
Christopher BrookeChief Financial Officer
• Experienced finance professional having worked in senior roles with a number of ASX listed companies over 23 year career includingKPMG and Boral Energy Resources
• Prior to joining ComOps, Mr Brooke was Group Chief Financial Officer for Razor Task Technologies
Beny ChunDirector, Professional Services
• 8+ years of solution sales and implementation experience across both software and consulting organisations• Over 15 years of end-to-end product management & software development lifecycle experience across software vendors,
consulting and financial institutions
Lee AlexanderGM, Sales & Marketing
• Over 20 years of progressive responsibility in sales, marketing, customer service, channel and distribution management andLeadership
• Over fifteen years’ experience in the IT and Communications industry
Priyabrata Hazra Chief Architect• 28 years experience in software architecture, design and development• 20+ years in designing and developing Workforce Management software, with 18+ years with eTivity
Sarah CorrisProduct Manager
• 20+ years’ Workforce Management experience both on client and vendor side in a variety of management roles spanningprofessional services, application support and technical services
• 15+ years IT and generalised Project Management experience. Prince 2 certified
Tony StonePorts Consultant / Project Director
• 20 years experience in Port Industry working for P&O Ports, DP World & APM Terminals• Mr Stone has a 20 year career in Human Resource Management/Industrial Relations, Workforce Management Solutions & Project
Management in Australia, Middle East, Africa & Europe
Barry LawsTechnical Support Manager
• Barry has cover 20 years’ experience in Support and support management, covering IT outsourcing and customer on-boarding,Telco and Product Support.
ManagementF
or p
erso
nal u
se o
nly
Contact Details
Niall CairnsNon-Executive ChairmanComOps LimitedMobile: +61 418 410 306Email: [email protected]
Gerry WilliamsChief Executive OfficerComOps LimitedPhone: +61 416 196 448Email: [email protected]
Chris BrookeChief Financial Officer & Company SecretaryComOps LimitedPhone: +61 419 800 067Email: [email protected]
Registered Address:Level 16132 Arthur Street, North Sydney NSW 2060 Australia
www.comops.bizFor
per
sona
l use
onl
y
Disclaimer
The information contained in this document is disclosed to you by ComOps Limited (ABN: 79 000 648 082) (the Company). Nothing in this document shall form the basis of anycontract or commitment, or constitutes investment, financial product, legal tax or other advice. The information in this document does not take into account your investmentobjectives, financial situation or particular needs.The Company has prepared this document and is not aware of any errors in this document, but does not make any recommendations or warranty, express or implied concerningthe accuracy, likelihood of achievement or reasonableness of any assumptions, forecasts, prospects or returns contained in the information. Such assumptions, forecasts,prospects or returns are by their nature subject to significant uncertainties and contingencies.This document is intended to provide background information only and does not purport to make any recommendations upon which you may reasonably rely without takingfurther more specific advice. Potential investors should make their own decision whether to purchase any shares in the Company based on their own enquiries. Personalinvestors are advised to seek appropriate independent advice, if necessary, to determine the suitability of the investment.
Forward Looking StatementsNo representation or warranty is given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, projections or forward lookingstatements (including any forecasts, projections or forward looking statements relating to prospective financial information) contained in this presentation. Forecasts,projections and forward looking statements are by their nature subject to significant uncertainties and contingencies. You should make your own independent assessment ofthe information and seek your own independent professional advice in relation to the information and any action taken on the basis of the information.The presentation contains or may contain reference to certain intentions, expectations, and plans that may or may not be achieved. They are based on certain assumptions thatmay not be met or on which views may differ. The performance and operations of the Company may be influenced by a number of factors, many of which are outside theCompany’s control. No representation or warranty, express or implied, is made by the Company or any of its directors, officers, employees, advisers, or agents that anyintentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved.
For
per
sona
l use
onl
y