23 Aug 2021

Investor Presentation Amendment

Urbanise Urbanise.com Limited Ground Floor 201 Miller Street North Sydney NSW 2055 ABN : 70 095 768 086 W: urbanise.com 1 23 rd August 2021 General Manager ASX Market Announcements Australian Securities Exchange Limited 4 th Floor, 20 Bridge Street Sydney NSW 2000 Amended Investor Presentation: The investor presentation that was uploaded as part of the announcement on 23 rd August 2021, and in particular the slide titled: “FY2021 Strata Summary” (Slide 9) had a data link error which displayed the incorrect variance and variance % for “Strata lot billed” and “ARR”. The error has now been rectified and the complete presentation is hereby uploaded again. Urbanise apologises for any inconvenience that may have been experienced by interested parties. -Ends- This announcement is authorised by the board. For further information please contact: Kim Clark Company Secretary PH: +61 07 3010 9393 Email: Kim.Clark@boardroomlimited.com.au Urbanise.com Limited ABN 70 095 768 086 FY2021 Results 23 August 2021 Agenda 1 2 3 FY2021 Results Overview – Saurabh Jain, CEO FY2021 Financial Overview – Simon Lee, CFO Growth Plan and Outlook – Saurabh Jain, CEO | 2 | FY2021 Results Overview | 3 | FY2021 Financial Highlights | 4 | ARR $10.44m 27.9% Underlying average monthly cash used $246k Revenue $11.49m Net Cash Position $7.82m 19.1% • Licence fees up 15.9% • Professional fees up 34.5% • Strata revenue rose 19.4% driven by PICA • FM revenue increased 21.3% despite the loss of a legacy ME customer • Negative working capital model continues to perform well • Includes net proceeds of $6.54m raised in November 2020 to fund growth opportunities • Sales and marketing recruitment ~50% completed with immediate focus on Australia and ME • Growth driven by new wins and PICA completion (NSW completed in Q4) • Backlog of $1.0m including ~42k strata lots and 8 Facilities contracts FY2021 Key Metrics Continuing ARR growth as Backlog implemented * Annualised Recurring Revenue based on the month of June/December revenue | 5 | Jun 18 Dec 18 Jun 19 Dec 19 Jun 20 Dec 20 Jun 21 Backlog as at 1 Jul 2021 Strata lots ~212k ~278k ~300k ~320k ~331k ~392k ~636k ~42k Strata ARR* $3.28m $3.95m $4.36m $4.66m $4.83m $5.83m $6.89m Est. ~$0.3m Facilities users ~0.76k ~1.25k ~1.84k ~2.21k ~2.23k ~2.30k ~2.47k 8 contracts Facilities ARR* $1.21m $1.95m $2.77m $3.19m $3.33m $3.30m $3.55m Est. ~$0.7m Total ARR* $4.49m $5.90m $7.13m $7.85m $8.16m $9.13m $10.44m Est. ~$1.0m ARR growth YoY 58.8% 14.4% 27.9% Total Contracted Revenue of ~$11.44m FY2021 Financial Overview | 6 | FY2021 Financial Summary | 7 | • Licence fee revenue of $9.1m up 15.9% vs pcp • Professional fees up 34.5% to $2.39m reflecting expanding customer base • Total revenue of $11.49m, up 19.1% v pcp; recurring revenue of 79.1% • Expenses were up 19.5% largely due to: • Investment in sales & marketing and development for FM acceleration • Partner IT costs passed on to customers • IT costs for improving operations • Chargeable implementation costs • Total other costs mainly accounts for unrealised foreign exchange gain on intercompany balances Strong licence revenue growth and investment in sales, marketing and development to drive future ARR growth $000s FY2021 FY2020 Var Var % Licence Fees 9,094 7,849 1,245 15.9% Professional fees 2,386 1,774 612 34.5% Other revenue 13 23 (10) (43.5)% Total revenue 11,493 9,646 1,847 19.1% Operating Expenses (14,361) (12,016) (2,345) 19.5% EBITDA (2,868) (2,370) (498) 21.0% Depreciation and amortisation (1,810) (1,479) (331) 22.4% Total other costs 560 (388) 948 (244.3)% Other income 269 82 187 228.0% Net loss (3,849) (4,155) 306 (7.4)% Key Operational Metrics FY2021 FY2020 Var Var % Recurring revenue 79.1% 81.4% (2.3)% N/A ARR ($m) 1 $10.44m $8.16m $2.28m 27.9% 1. Annualised Recurring Revenue based on the month of June revenue • Licence fees of $3.3m, up 6.6% due to implementation of new customers and expanded reach of facilities managers • Professional fees reflect implementation revenue associated with onboarding of new customers and boosted by a number of high value projects • Total revenue of $4.85m, up 21.3% due to strategic focus on facilities management outsourcing companies and associated network effects • Backlog as at 1 July 2021 includes 8 contracts estimated at $0.7m in annual licence fee revenue FY2021 Facilities Management Summary * Annualised Recurring Revenue based on the month of June revenue | 8 | $000s FY2021 FY2020 Var Var % Licence Fees 3,294 3,090 204 6.6% Professional fees 1,556 910 646 71.0% Total revenue 4,850 4,000 850 21.3% Licence fees % total 67.9% 77.3% Month of Jun 2021 Month of Jun 2020 Var Var % Facilities Users Billed ~2.47k ~2.23k ~0.24k 10.8% ARR* $3.55m $3.33m $0.22m 6.6% As at 1 Jul 2021 Backlog ~$0.7m Record professional fees highlighting strong sales momentum • Licence revenue of $5.76m, up 23.7% driven by the roll- out of PICA and onboarding of new customers • Professional fees were 3.9% lower than pcp as PICA roll-out reached completion • Total revenue of $6.59m, up 19.4%; recurring revenue of 87.4% • Total estimated backlog of $0.3m at 1 July 2021 reflecting new wins including large Middle East customer secured in March FY2021 Strata Summary Strong licence revenue growth as major client implementation continues | 9 | * Annualised Recurring Revenue based on the month of June revenue $000s FY2021 FY2020 Var Var % Licence Fees 5,763 4,660 1,103 23.7% Professional fees 829 863 (34) (3.9)% Total revenue 6,592 5,523 1,069 19.4% Licence fees % total 87.4% 84.4% Month of Jun 2021 Month of Jun 2020 Var Var % Strata Lots Billed ~636k ~331k ~305k 92.1% ARR* $6.89m $4.83m $2.06m 42.7% As at 1 Jul 2021 Backlog ~$0.3m FY2021 Cash Flow Strong cash position provides ability to invest for growth • Receipts up by $997k (9.1%) driven by revenue growth 1 • Underlying 2 average monthly cash used for FY2021 was $246k vs pcp of $154k. This is primarily due to: • Investment in sales & marketing and development for FM acceleration • partner IT costs passed on to customers • IT costs for improving operations • Chargeable implementation costs • Cash of $7.82m at 30 June 2021 included net proceeds of $6.54m from capital raise/placement completed in November 2020 | 10 | 1. During FY20, $11.0m of customer receipts included significant overdue debts from FY19 (collected in H1 FY20) and advance billings for FY2021 (collected in H2 FY20). 2. $367k in employment costs were deferred from Q4 FY2020 as part of government initiatives $000s FY2021 FY2020 Opening Cash Balance 4,545 3,702 Receipts from customers 11,997 11,000 Government Incentive 301 203 Payments to suppliers and employees (14,380) (11,303) Interest (54) (22) Net cash used in operating activities (2,136) (122) Payments for equipment (142) (189) Payments for intangibles / capitalised development (962) (1,038) Net cash used in investing activities (1,104) (1,227) Net increase in cash and cash equivalents (3,240) (1,349) Net proceeds from placement 6,542 2,197 Effect of movement exchange rates on cash balances (27) (5) Net cash flow for the period 3,275 843 Cash at 30 June 7,820 4,545 Average Monthly Cash Generated / (Used) 273 70 Net cash flow for the period 3,275 843 Government Incentive (50) (125) Deferred costs 367 (367) Net proceeds from placement (6,542) (2,197) Underlying cash flow for the period (2,950) (1,846) Underlying Average Monthly Cash (Used) (246) (154) Careful Management of Cash Used | 11 | • Urbanise continues to invest in its platform and systems to expand the features and applications available and improve the delivery of its products and solutions. • Investment in sales and marketing headcount to drive revenue growth. • Further investment in sales and marketing planned for H1 FY2022 as part of investment plan outlined in the capital raise completed in November 2020. *Excluding capital raise/placement (731) (947) (819) (1,091) (699) (1,116) (726) (514) (445) (209) (232) (204) (199) (237) (105) 89 (394) (290) (91) (313) (1,400) (1,200) (1,000) (800) (600) (400) (200) 0 200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2017 FY2018 FY2019 FY2020 FY2021 Average Monthly Cash Used / (Generated) $000s* Shift to Negative Working Capital Position | 12 | • Continued progress to reduce outstanding debts from customers • Advance billings (quarterly & annually) recognised as deferred revenue drive advance payments • Net effect has shifted working capital from positive to a sustainable negative position 2,617 2,145 2,289 2,162 1,824 1,614 1,884 1,566 (1,191) (1,260) (1,973) (2,436) (2,262) (2,637) (2,857) (2,823) 1,426 885 316 (274) (438) (1,023) (972) (1,257) (3,000) (2,000) (1,000) 0 1,000 2,000 3,000 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Debtors and Deferred Revenue $000s Debtors Deferred revenue Net FY2021 Balance Sheet • Trade debtors reduced by 3.0% from pcp as a result of renewed efforts in cash collection during the year • Increase in other assets reflect a deposit held with an agency that facilitated our Bulgarian team, repayable in FY2022. • Deferred revenue relates to advance billings driven by renewals and new contracts. • Development increased by 14.0% reflecting investment in strata platform, driven by the rollout of the PICA project. • Increase in the right use of asset included capitalisation of lease costs for the new Sydney and Melbourne offices. • Movement in foreign currency translation reserve reflects unrealised foreign exchange gains from the revaluation of intercompany debt. • Share consolidated (1:15) completed in May 2021. | 13 | $000s 30-Jun-21 30-Jun-20 Cash and cash equivalents 7,820 4,545 Trade and other receivables 1,566 1,614 Other assets 507 386 Total current assets 9,893 6,545 Property, plant and equipment 239 232 Development 3,064 2,688 Goodwill and other intangibles 6,535 7,288 Right of use asset 916 365 Other assets 127 52 Total non-current assets 10,881 10,625 Total assets 20,774 17,170 Trade and other payables (1,991) (1,979) Provisions (723) (573) Lease liabilities (207) (140) Deferred revenue (2,823) (2,637) Total current liabilities (5,744) (5,330) Provisions (7) (11) Lease liabilities (708) (224) Total non-current liabilities (715) (236) Total liabilities (6,459) (5,566) Net Assets 14,315 11,604 Issued capital and contributed equity 107,109 100,103 Employee Share Option Reserve 1,343 1,120 Foreign currency translation reserve (891) (221) Accumulated losses (93,246) (89,397) Total equity 14,315 11,604 Growth Plan & Outlook | 14 | | 15 | To create an industry changing AI-first cloud platform for the Property Sector Our Vision FACILITIES MANAGEMENT: Innovative Solutions for Facilities Managers Urbanise Solutions | 16 | STRATA: Innovative Solutions for Strata Managers • Accounting and administration of strata bodies and funds • Communication with owners and residents via platform • Integrations for banking and facilities management • Automation of transactions • Contextual analytics • Asset Management • Workforce Management • Reduce paperwork and administration costs • Manage multiple assets, locations & contracts from one place • Artificial Intelligence and machine learning • Real time reporting and analytics • Intuitive workforce mobile app with offline capability WHY DO CUSTOMERS LIKE URBANISE SOFWARE? Cloud based platforms Our customers benefit from frequent cloud updates Unique combined platform We have a unique integrated Strata and Facilities platform, appealing to the growing trend of combined strata and facilities management Experts in our sectors Our product development and implementations are underpinned by deep sector expertise Configurable approach Our FM platform in particular can meet the needs of many sectors without significant development Support and training We provide scalable on-line and phone customer support and training PRIMARY USE PRODUCT DIFFERENTIATORS Reporting Accounting Budgeting Document Management Invoicing Meeting Management Automation AP/Printing Open Integrations Community Portal & App Intuitive User Interface Safety & Supplier Compliance Contract Management Facility Maintenance Management Workforce Management Operations Centre Open Integrations Force App Analytics Customer Relationship Management A$3.3bn APAC Facilities Management Market Opportunity Multiple business growth drivers Macro trends support Long Term growth • Increased FM outsourcing driving demand for multi-tenant functionality, mobility, automation & analytics • Growing demand for asset owners to implement systems like Urbanise Facilities • Unique cloud-based, multi-tenant platform with scalable operating model & high customer retention • Urbanise able to leverage sector experience with FM sectors including mining, utilities, aged care and education • Network effect as customers add clients & subcontractors | 17 | Total Addressable Market 1 1. Total addressable markets based on FM sector GDP by region assuming ~1% spend on technology. Global Facilities Management Market Report 2018 A$216m MIDDLE EAST A$105m AFRICA ~2.6m Australia 1 ~184k New Zealand 2 ~432k Dubai 3 Strata Market Opportunity • Growing demand for integrated FM & Strata offering in Middle East likely to be replicated across other markets • Shift to cloud and demand for software-as-a-service (SaaS) solutions with competitors largely still offering on premise solutions • Consolidation in strata sector resulting in lower customer acquisition cost • Only provider of integrated facilities management & strata solution • Comprehensive cloud-based strata platform recognised in the strata market as the cloud solution of the future • Deep experience in implementing large strata projects | 18 | No. of Strata Lots 1. https://cityfutures.be.unsw.edu.au/documents/498/National%20Strata%20Data%20Report_20.08.18.pdf 2. https://www.strata.community/nz-what-is-strata 3. https://ded.ae/ded_files/Files/Reports/rep_2019/Chapter%208.pdf. The total number of residential apartments in Dubai is ~432,000 and will include apartments that may not have a strata scheme. Multiple business growth drivers Macro trends support Long Term growth FM Network Effect Continue to support FM Outsourcer customers to win work, allowing us to grow our licences across their expanding contract base FM New Sales Focus on key sectors where we are strongest: Tier 2 FM Outsourcers and asset owners including mining, utilities, education, and aged care Urbanise Growth Plan | 19 | Investment in Sales and Marketing Continue investment commenced in H2 FY2021 in our APAC & MENA regions to create pipeline and drive sales conversions Continue product development Maintain our position as a major and leading strata and facilities management platform Manage cash burn Manage costs and drive advance billings and collections Maintain existing customer base Minimise churn through our sticky platform and also selling additional services and training FOUNDATIONS FOR GROWTH GROWTH OBJECTIVES Strata New Sales Leverage our position from completing the PICA roll-out and re-platforming of the strata product and convert both large and small strata managers Combined platform new sales Take advantage of the growing trend of combined strata and facilities managers, particularly in the Middle East and commencing in Australia FY2022 Outlook Invest to drive ARR growth and pave the way to cash flow breakeven | 20 | Drive growth across key regions of APAC & MENA, leveraging sector experience Deliver further improvements in working capital Continue to develop features across both platforms that will increase stickiness of existing customers and drive ARR growth Complete investment in FM sales and marketing to drive ARR Growth Clear $1.0m of backlog Q&A | 21 | Appendix | 22 | WINNING NEW WORK ON-BOARDING NEW CLIENTS RETAIN & GROW ADMIN & SUPPORT Sales Cycle – 12-18 months for large contract wins Business Development Targeted Marketing Implementation fees Implement with our in- house team Provide Training Account Management New Features Technical Support Billing & Account Support Strata Facilities Licence fees 1 – 6 months conversion 3 – 9 months implementation 3 – 9 months conversion 1-3 months implementation Licence fee per lot Licence fee per user | 23 | 1 2 3 4 Urbanise Addressable Markets FY2021 revenue - $11.49m | 24 | MIDDLE EAST EUROPE APAC AFRICA APAC 77% E/ME 20% Africa 3% Facilities 42% Strata 58% Urbanise FM: The Network Effect | 25 | As facilities management customers add clients & subcontractors, our revenue grows Urbanise focuses on securing new customers and retaining them through a ‘sticky’ platform Number of assets managed increases as customers grow their client portfolio More subcontractors are required to use the platform Important Notice This presentation is given on behalf of Urbanise.com Limited. Information in this presentation is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in Urbanise.com Limited. The information should be read in conjunction with, and is subject to, the Company’s latest and prior interim and annual reports and the Company’s releases on the ASX. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, may contain forward-looking statements (rather than being based on historical or current facts). Any forward-looking statements are based on the current beliefs of the Company’s management as well as assumptions made by, and information currently available to, the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. All data presented in this document reflects the current views of the Company with respect to future events. Forward-looking statements are subject to risk, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. To the maximum extent permitted by law, the Company, its officers, employees and agents do not accept any obligation to release any updates or revisions to the information (including any forward-looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its contents. | 26 |
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