For personal use only FY19 Results Presentation
Disclaimer For personal use only This presentation has been prepared by rhipe Limited ACN 112 452 436 The Recipient, intending investors and respective advisers, should: (RHP). Each Recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set out below. ➢ conduct their own independent review, investigations and analysis of RHP and of the information contained or referred to in this presentation; None of RHP and or its subsidiaries or their respective directors, officers, employees, advisers or representatives (Beneficiaries) make any ➢ seek professional advice as to whether an investment in RHP is appropriate representation or warranty, express or implied, as to the accuracy, for them, having regard to their personal objectives, risk profile, financial reliability or completeness of the information contained in this situation and needs; and/or presentation, including any forecast or prospective information. The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and ➢ nothing in this presentation is or is to be taken to be an offer, invitation or contingencies, many of which are outside the control of, and are unknown other proposal to subscribe for shares in RHP. to, the Beneficiaries. The Recipient specifically agrees, understands and acknowledges that some of the Actual future events may vary materially from the forward looking information contained herein has been provided by third parties and the statements and the assumptions on which those statements are based. Beneficiaries accept no responsibility for any inaccuracy, misstatement, Given these uncertainties, you are cautioned to not place undue reliance misrepresentation or omission in relation to that information. on such forward looking statements. Except insofar as liability under any law cannot be excluded, none of the This presentation is a general overview only and does not purport to Beneficiaries shall have any responsibility for the information contained in this contain all the information that may be required to evaluate an investment presentation or in any other way for errors or omissions (including responsibility in RHP. The information in this presentation is provided personally to the to any persons by reason of negligence). Recipient as a matter of interest only. It does not amount to an express or implied recommendation with respect to any investment in RHP nor does it constitute financial product advice.
Contents For personal use only FY19 Highlights .......................................... 4 Rhipe Value Proposition ........................ 7 Operations Update...................................... 11 FY19 FINANCIAL RESULTS............................ 17 FY20 OUTLOOK .............................................. 26 Q&A SESSION ................................................. 28
For personal use only Fy19 group highlights
FY19 group HIGHLIGHTS For personal use only 28% 36% 25% 65% PCP 1 PCP PCP PCP Net Operating Gross OPEX Revenue 2 Sales 2 Profit 3 $ 33.0M $ 48.4M $ 252.5M $ 12.8M Prior Corresponding Period “PCP” 1. 2. AASB15 accounting standard requires revenue to be reported on a net basis. This means our revenue excludes the value that is passed through to software vendors. Gross Sales represents 5 Rhp FY19 Results Presentation previously reported revenue. 3. Operating Profit represents Reported EBITDA excluding non-cash share based expenses, FX gains or losses, due diligence costs and non-operational gains or losses.
FY19 group HIGHLIGHTS For personal use only CONTINUED Strong cash position after $2m share buyback, $3m dividends & $3m on acquisitions 56% 103% $2.8M 100% PCP PCP PCP PCP Reported EBITDA Profit After Tax Cash FY19 Dividend $ 10.0M $ 6.2M $ 25.5M 3.0cents $6.2 $M $M $M cents $10.0 $25.5 $22.7 $19.8 $6.4 2.0 $3.1 $2.5 $4.0 1.0 1.0 0.5 0.0 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 Interim Final 6 Rhp FY19 Results Presentation
For personal use only RHIPE VALUE PROPOSITION
Rhipe: The cloud Channel Company For personal use only 4 12 Value added services for our resellers in APAC including marketing, consulting and 24/7 157 support as a service. These services are aimed at driving the ongoing growth in consumption of software subscriptions. 8 10 108 8 6 Platform for Recurring Subscription Management (PRISM) used by IT resellers to buy, provision, and bill their end user clients for monthly cloud software subscriptions. FTE Globally 313 (+110 YoY) 8 Rhp FY19 Results Presentation
Strategic Operations Divisions For personal use only Cloud Licensing Cloud Operations Cloud Services & Support SUPPORT INTELLECTUAL PROPERTY LICENSING Support people and Internally developed PRISM Software sold and implemented professional services to help Platform. Cloud first, digital first by IT service providers. Vendors and Service Providers marketing to drive demand for Monthly pay as you go cloud with technical needs. Channel Partners. licensing subscriptions. FY19 FY19 Net Licensing Revenue Services & Support Revenue 1 $38.7m $9.8m 1. Cloud Support & Solutions includes $0.164m of intercompany sales related to the NAV upgrade 9 Rhp FY19 Results Presentation
3 year Strategy For personal use only Geographical reach Ge Value-added services Valu Cement and grow partner of choice market Marketing-as-a-Service, Support-as-a-Service, position with continued expansion in other Consulting-as-a-Service to continue to expand APAC markets as rhipe looks to offer technical support for new vendors and new partners Buil Building out Int ntellectual Pro roperty Ve Vendo dor r pro rograms and d pro rodu ducts Build a greater digital experience for rhipe Grow portfolio of solutions with innovative, customers with much closer links between our subscription-based cloud and software website, marketing, sales and billing systems solutions. Channel friendly with margin for and our partners’ ecosystems wholesaler and retailer 10 Rhp FY19 Results Presentation
For personal use only Operations update
Operational Highlights For personal use only Licensing Regional Sales Split Microsoft CSP O365 Seat Count $M Average monthly paid seat add-on rate in FY19 is 30 June ne 2019 +16k paid seats per month $243 +600,000 vs 10k per month in FY18 $53m 28% + 127% CSP O365 paid skus June ne 2018 $190 73.1 +26 264,000 $38m 25% CSP O365 all skus (e.g. academic) $152 June ne 2019 51.2 +450,000 June ne 2017 42.5 + 77% +126,000 June ne 2018 +25 254,000 169.6 138.5 109.3 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 FY17 FY18 FY19 1 Australia & New Zealand Asia Asia numbers include sales from Australian customers’ overseas subsidiaries in Asia . 1. 12 Rhp fy19 Results Presentation
Operational Highlights For personal use only 1 1 Microsoft O365 ARR Sales Microsoft Azure ARR Sales $M $M $59.0 $21.0 $24m 69% $14m $35.0 $16m 200% 84% $4m $7.0 $19.0 133% $3.0 FY17 FY18 FY19 FY17 FY18 FY19 1. ARR = Annual Run Rate 13 Rhp fy19 Results Presentation
Microsoft awards For personal use only 20 2019 Microsoft Global Indirect CSP of the Year Finalist 20 2019 Microsoft Malaysian Partner of the Year 20 2018 Microsoft Australian Partner of the Year 20 2018 Microsoft Thailand CSP Partner of the Year 14 Rhp fy19 Results Presentation
Recent acquisitions For personal use only SmartEncrypt March 2019: Completed acquisition of 100% of August 2019 acquisition of 100% of Network2Share Pty ▪ ▪ Dynamic Business IT Solutions Pty Ltd (“DBITS”), a Ltd, a Melbourne based security software company that Microsoft Dynamics consulting specialist has developed a user-friendly encryption product which rhipe plan to bundle with Microsoft Office365, Microsoft Acquisition aimed at broadening the services offered ▪ Azure, and other vendor software licenses to rhipe’s ecosystem of resellers as well as further enhancing our expertise in Microsoft software offerings SmartEncrypt provides rhipe with new and ▪ differentiated Intellectual Property Total consideration up to $8m; $4.5m paid at ▪ completion and residual is contingent on future Upfront consideration of $2m in cash. Further ▪ financial performance consideration of three tranches of $1m each payable upon reaching monthly license sales targets plus further Contributed ~$0.4m in earnings in FY19 and is ▪ earn out tied to revenue over a five-year period expected to contribute $1m EBITDA in FY20 We intend to invest further in the development of ▪ SmartEncrypt prior to market launch in the next six months 15 Rhp fy19 Results Presentation
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