Nearmap Ltd Annual General Meeting 17 November 2016 1
Agenda 1. Chairman’s Address – Mr Peter James, Chairman and Non-Executive Director 2. Formal Business – Mr Peter James 3. CEO Report – Dr Rob Newman, Managing Director and CEO 4. Polling Results and Close – Mr Peter James 2
Chairman’s Address – Mr Peter James, Chairman and Non-Executive Director 3
The Nearmap Board Dr Rob Ross Norgard Cliff Ian Morris Peter James Chairman Newman Non-Executive Rosenberg Non-Executive Director Director (US) Chief Executive Non-Executive Officer & Managing Director Director 4
Chairman’s Address Mr Peter James, Chairman and Non-Executive Director Nearmap delivered on its three key priorities in FY16. Nearmap delivered 1 accelerated growth in Nearmap captures, manages and delivers the most current location content in the world. Australia Nearmap is well positioned to continue its growth and market leadership. Nearmap delivered the 2 foundations for success in the US Nearmap enhanced its 3 technology leadership 5
CEO Report – Dr Rob Newman, Managing Director and CEO 6
Managing Director’s Address Dr Rob Newman, CEO and Managing Director We bring the real world to you. Why We believe if we change the way people view the world, we can profoundly change the way they work How So we’ve created effortless access to the most useful, engaging and current location content in the world What Making it possible for anyone to unlock the limitless capacity of truth on the ground 7
FY2016 Highlights Successful delivery on Nearmap’s three key priorities for the year Accelerated growth in our Australian business Built the foundations for success in the US Enhanced our technology leadership 8
Accelerated growth in our Australian business The Australian business demonstrated strong growth in customers, revenue and annualised contract value Annualised contract value – Growth in normalised* Key highlights: Australia ($M) AU customer numbers ~38% growth in ACV 1 portfolio to $34.4M Estimated lifetime portfolio value 2 of $338M 34.4 6,827 >1,300 additional customers taking total customers >6,800 25.0 Over 50,000 active users 5,503 30-Jun-15 30-Jun-16 30-Jun-15 30-Jun-16 * FY15 closing subscriptions normalised for cessation of personal subscriptions during FY16 1. ACV Annualised Contract Value = annualised value of all active subscription contracts in effect at a particular date 2. Lifetime Portfolio Value Lifetime Portfolio Value = (ACV Portfolio x Gross Margin %) / Churn 9 %
US operations performance improving with changes in strategy and team Nearmap is in the early stages of exploiting the significant US market opportunity US ACV growth (US$) Management estimate that the US market opportunity could be 10x Australia. 2.0 Comparison to Australia at a similar point in history demonstrates initial progress in US. Investment in US aimed at exploiting the 1.5 1.5 significant market opportunity. 1.0 0.7 0.5 0.1 0.0 30-Jun-15 31-Dec-15 30-Jun-16 10
Technology leadership enhanced Enhanced technology and product capability deliver a platform for growth State of the art camera systems including HyperCamera2 Technology investment increases the Leading efficiency of our capture program. HyperCamera2 launched in April 2016 content Also delivers richer data set, including 3D. Significant coverage of Australia and US population New use cases enabled by richer content including automation of solar quoting and insurance underwriting. Proprietary collection, processing and stitching software Proprietary software Unique IP providing market leading product Cloud based storage of full library of location content Subscription Instant access to subscription content access New content delivered within days of capture 11
Growth continues Revenue has shown growth accelerating over the last 4 consecutive halves Group half yearly revenue* ($M) Accelerating AU revenue growth half-on-half. US business growing half-yearly contribution 18 to group revenue. 17 16 15 14 13 12 11 10 9 H1 FY15 H2 FY15 H1 FY16 H2 FY16 AU US * Excluding interest, tax and government grants 12
Performance Highlights Strong revenue growth was coupled with a return to positive EBITDA in H2 FY16 Summary P&L ($m) Revenue growth of 28.8% year-on-year. Disciplined cost management in H2 FY16 Group P & L FY15 H1 H2 FY16 with expenses down on H1 FY16. Revenue 1 24.3 14.1 17.2 31.3 Continued investment in sales and marketing expected to drive further revenue growth. Growth on pcp (%) 20.5% 36.5% 28.80% Gross Profit 20.1 11.3 14.2 25.5 Gross Margin (%) 82.7% 80.1% 82.6% 81.5% Expenses 2 21.7 15.9 14.1 30.0 EBITDA 2 0.9 (2.0) 2.6 0.6 (Loss)/Profit After Tax (0.8) (3.3) (3.8) (7.1) 1 Excludes receipt of government tax refund of $1.8M in 2H 15 2 Excludes impact of FX 13
Cash flow waterfall Strong Australian cash flow generation supports the US during its investment phase Nearmap’s cashflow FY16 Receipts from customers consistently increasing over last 4 halves. AUS $19.2M US ($15.3M) ($7.5M)* Corporate ($1.4M) 60 Cash receipts in excess of revenue reflecting subscription nature of business model. 50 Disciplined cost management remains a key 16.6 focus. 40 35.8 1.5 30 $M 16.8 20 7.5 - 5.2 3.8 10 17.2 12.2 0 investment 30-Jun-15 customers Payments customers Payments technology Corporate Interest, tax 30-Jun-16 Product & Receipts Receipts financing from from and 14 * $7.5M relates to investments in product and technology
Q1 FY17 trading update US operations build momentum Group Subscription Revenue Q1 FY15 to Q1 FY17 Growing confidence in the US growth 9.5 opportunity following Q1 FY17 sales – US ACV portfolio grew 53% to US$2.3M. 9.0 Continued growth in our Australian business 8.5 with revenue growth, broad customer penetration across industries and disciplined 8.0 cost management. 7.5 $M Nearmap’s location content growing in 7.0 importance with OmniEarth partnership beginning to deliver results. 6.5 6.0 5.5 5.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY15 FY16 FY17 Australia US 15
Nearmap has broadened the traditional aerial imagery market Our unique offering overcomes a range of limitations experienced by traditional market operators The traditional aerial imagery market is focussed on bespoke captures – generally Fragmented market Lack of currency a higher cost proposition for customers, Location content providers Traditional methods of with manual processing and lack of image typically focussed on specific delivering location content currency and accessibility. use cases or geographic involve significant time locations between capture and delivery of content to customers Manual processing Delivery limits customer use Traditional methods of Lack of currency and access to delivering location content broad based location content involve significant manual has limited usage in industries processing of images which would derive significant benefit 16
The global location content market is large and expanding The market is forecast for rapid growth in the upcoming years Global market for taking and processing Global aerial imaging market (US$) 1 images from an elevated position has experienced rapid growth which is forecast 2016 CAGR % 2023 to continue. Location content is expanding out of specialist uses to broad use in many business applications. Nearmap’s unique business model is 13.5% 3,341.7m 1,363.4m perfectly positioned to make location content easily accessible and broadly available. AU 50.0M 10.4% 100.4M US 443.8 14.5% 1,151.8M 1 Transparency Market Research “Aerial Imaging Market: Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2015 -20 23” 23
Nearmap is uniquely positioned to leverage the growth in the location content market Enhanced technology and product capability deliver a platform for growth Proprietary State of the art capture Leading content collection, systems deliver 2D and processing and State of the art camera systems including 3D content stitching HyperCamera2 (launched April 2016) software Significant coverage of Australia and US population Proprietary software Proprietary collection, processing and Cloud based stitching software with unique IP providing storage of full library of market leading product location Subscription access content Instant access to subscription content, US coverage – 65% of AU coverage – 88% delivered within days of population, 210M people, capture of population, 21M people, 7M dwellings 70M dwellings 18
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