2018 Annual General Meeting of Shareholders
Andrew Harrison Chair
WiseTech Global - FY18 financial highlights Delivered strong, high quality growth while expanding technology lead and global footprint LOW sales and LOW HIGH innovation HIGH recurring POWERFUL PROFITABLE + customer marketing product development HIGH quality revenue cash generative attrition investment expense revenue growth 34% <1% 10% ↑45% EBITDA ↑ 44% 99% recurring of revenue (2) of revenue Revenue every year revenue $78.0m 51% vs FY17 9% CargoWise One for last 6 of our people of our people years (1) 90% recurring 43% CAGR Revenue revenue over 5 years FY14PF-FY18 Sales automation, $222m (2) $221.6m swift on-boarding, innovation and product EBITDA margin 99% Annual customer open-access licence, 35% ↑7pp spend (FY14 - FY18) ‘On - Demand’ 41% CAGR attrition rates On-Demand usage over 5 years FY14PF - FY18 usage-based licensing across CargoWise over 5 years CargoWise One One global platform FY14 - FY18 $40.8m customers Net profit (3) 1. Annual attrition rate is a customer attrition measurement relating to the CargoWise One application suite (excluding any customers on acquired legacy pla tforms). A customer’s users are included in the customer attrition calculation upon leaving ie having not used the product for at least four months. Based on attrition rate <1% for each year of the last six financial years FY13-FY18. 2. Total investment in product development and innovation includes both expensed and capitalised amounts each year spent on product development and innovation. 3. Net profit = net profit after tax attributable to equity holders of the parent. 2
WiseTech dividend and shareholder return Outperformed ASX200 by 278% since listing in April 2016 WiseTech Global share price v S&P/ASX200 594 Dividend FY18 Interim dividend: 1.05c (Apr 18) 494 Final dividend: 1.65c (Oct 18) Total 2.7cps fully franked 394 Rebased to 100 Dividend policy Payout ratio of up to 20% of annual NPAT 294 TSR for FY18 194 126.6% 94 11-Apr-16 17-Aug-16 21-Dec-16 05-May-17 11-Sep-17 18-Jan-18 30-May-18 04-Oct-18 WTC.ASX XJO.ASX Source: Orient Capital Pty Ltd. 3 XJO is S&P/ASX 200
Our people are changing the world of logistics one innovation at a time EMPLOYEES BY EMPLOYEES EMPLOYEES BY FUNCTION AGE DIVERSITY BY REGION (%, as at 30 June 2018) (%, as at 30 June 2018) (%, as at 30 June 2018) 38% Australia and New 51% Product design and Zealand development 22% Under 30 23% Europe 20% Customer support 17% Asia 52% 30 - 44 20% General and 9% Latin America administration 17% 45 and over 7% South Africa 9% Sales and marketing 6% North America 4
Richard White Founder & CEO
8,000 54+ billion 3.5+ million 130 logistics organisations data transactions development hours countries are customers annually over two decades
WiseTech strong growth in revenue and EBITDA Strong organic revenue growth, expanding CargoWise One EBITDA margins, while building out our platform Revenue EBITDA 48% excluding $m $m 221.6 acquisitions (1) 42% 90.0 35% 35% 35% 30% 78.0 80.0 30% 28% 30% 128.2 70.0 28% 25% 60.0 53.9 41% CAGR 43% CAGR 82.7 50.0 20% over 5 years over 5 years FY14-FY18 FY14PF-FY18 40.0 15% 31.5 54.2 30.0 21.9 10% 37.7 18.6 93.4 20.0 71.1 56.7 5% 48.6 43.0 10.0 32.3 - 0% FY13 FY14 FY15 FY16 FY17 FY18 FY14 PF FY15 PF FY16 PF FY17 FY18 1. Acquisitions are those businesses acquired since 2012 and not embedded into CargoWise One. Full year revenue (FY13 and FY14), 2H revenue (FY15, FY16, FY17 and FY18) 1H revenue (FY15, FY16, FY17 and FY18) 7
Powerful growth strategy Multiple levers to sustain growth and increase market penetration + + Transactions/users Modules + Increase new Stimulate Accelerate Innovation customers on network organic and the platform effects growth expansion of Industry Geographies consolidation through our global acquisitions platform Greater usage by existing customers “We are accelerating into more products, more geographies and more adjacencies … driving our long- term growth with each innovation and acquisition” 8
34 of the top 50 global third party logistics providers use our solutions across 130 countries worldwide 1. Armstrong & Associates: Top 50 Global Third Party Logistics Providers List ranked by 2017 logistics gross revenue/turnover.
Acquiring businesses for geographic expansion – securing assets swiftly Small targeted acquisitions in key regions provide safer, faster, stronger entry to new markets We buy into leading market positions that would take years to build, integrate swiftly, and drive value across the platform We are acquiring leading software vendors across G20+20 - targeting 90% of world’s manufactured trade flows NORTH AMERICA LATIN AMERICA EUROPE EURASIA ASIA 10
Acquisition ─ integration process + value components Stage 1 integration completed swiftly, we focus on long-term product capability and growing revenue Foothold 12-24 months 0-36 months 3-12 months Adjacencies 3+ years Grow revenue Integrate target Develop product “Acculturation” “Build out” Global customers access new capability integrated in CargoWise One Platform migration Product development Immediate revenue once capability embedded in global platform, transaction licence Business processes utilising Universal Customs Development system Engine Conversion of acquired customer base Commercial standards Management control of On-board, licence transition, staggered move of base over 3+ years Localisation operations E-learning platform Acquired customers – expand usage Innovation and expansion Integrate acquired product Acquired customers – multi-region rollout with CargoWise One swiftly Move to full “embedded” product 11
Widening our reach, building unassailable ecosystems We converge our innovation pipeline and acquisitions to rapidly build our multi-modal capabilities on a global scale 12
Adjacencies feed into our innovation pipeline to build ecosystems Targeting key plug-ins to our global development or multi-regional adjacencies that can scale We are accelerating convergence of technologies by adding targeted acquisition of key adjacencies to our innovation pipeline to build valuable ecosystems and global product sets. We look for adjacencies that we can scale from domestic multi-region to global product capability Global Rates Management Specialist Warehouse Global Shipping Compliance Data Global ocean rates Leading global provider Global air rates Specialist WMS across Australian reference management – live, of software solutions to management – Asia Pacific, North data providers, global data set on provides global America and Middle international liner Digerati and Tradefox, carrier rates. data set on carrier East for enterprise, shipping industry – with absorbed into stage 1 Neutral platform rates. Neutral express, 3PL and cold operations across of our global links carriers and Germany, US, platform linking storage. Gartner rated. BorderWise data set 3PLs. Rates Mesh Philippines and carriers and 3PLs. development. standalone and Singapore. data integrated to CW1 customers. 13
Adjacencies feed into our innovation pipeline to build ecosystems Targeting key plug-ins to our global development or multi-regional adjacencies that can scale Transport Management Solutions Wi seTec h Gl o b a l Gr o u p Leading parcel Specialist US Less Specialist inter-modal A leading multi-carrier TMS to add to CW1 shipping TMS Than Truckload TMS trucking TMS and parcel and LTL next generation Land provider to large provider with LTL container tracking shipping solution in Transport solution. and medium road rate capabilities provider in US and ANZ, UK, South Africa enterprises in the to expand road Canada. and Asia. US with offices in booking and rates. the UK and Finland. 14
Building out the ecosystems for global logistics 15
Opportunity Logistics market size: across 1PL, 2PL, 3PL = ~A$14trillion Global 3PL E-commerce Government Ecosystems • • • Regulation Top 150 3PLs Ecosystems, once • • • Digitisation Logistics Express built, drive long • Integration providers in couriers term value that is Domestic regulators • each vertical E-commerce near impossible Global regulators and each giants to dislodge 3PL • Industry bodies domestic Postal services market Some of our products and innovations also apply to non-logistics markets eg: PAVE (all industries) and GLOW (software development) 16
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