Kinaxis, Inc. · TSX:KXS
Kinaxis — Investor Presentation (February 2020)
23 slides from Kinaxis's investor presentation, February 2020
Slide 1: Kinaxis Investor Overview
Kinaxis Investor Overview TSX:KXS February 2020 PRESENTED BY Rick Wadsworth | VP, IR 1
Slide 2: Forward looking statements
Forward looking statements Forward-Looking Information Non-IFRS Measures This document contains forward-looking statements within the meaning of applicable Canadian securities legislation. In This document makes reference to certain non-IFRS measures, specifically Adjusted EBITDA. These non-IFRS som
Slide 3: Know sooner. Act faster. Supply chain planning, monitoring and response
• Know sooner. Act Faster. Supply chain planning, monitoring and response. • Eliminating volatility in your supply chain is impossible, but managing it is not. • Trusted by top brands, Kinaxis is the leading provider of cloud-based, software-as-a-service (SaaS) solutions that give people the confide
Slide 4: Investment Highlights – High Growth SaaS Model
Investment Highlights – High Growth SaaS Model Rapid revenue growth and strong profitability $US Millions 212.6 191.5 181.5 158.5 150.7 133.3 118.9 127.9 116 Margin 100.8 99.3 97.2 91.3 33% 25% 30% 28% 30% 81.8 57.7 65.2 ** Note: 40.1 41.7 Results for 2018 and after 30 28.5 impacted by change to IFR
Slide 5: Investment Highlights
Investment Highlights 1 Industry-recognized, disruptive SaaS product in a growing market 2 Growing blue chip customer base 3 Growing list of partners providing scale 4 Rapid revenue growth, strong profitability and good visibility 5 Strong leadership team Copyright © 2019 Kinaxis. All Rights Reserve
Slide 6: Proven across multiple market verticals
Proven across multiple market verticals HIGH TECH AND AEROSPACE AND DEFENSE INDUSTRIAL ELECTRONICS LIFE SCIENCES AND AUTOMOTIVE CONSUMER PHARMACEUTICALS PACKAGED GOODS Copyright © 2019 Kinaxis. All Rights Reserved. 6
Slide 7: Concurrent planning balances the end-to-end supply chain
Concurrent planning instantly and continuously balances the end-to-end supply chain S Inventory D I Capacity Demand Supply S&OP KINAXIS S C Old way Our way • Cascaded • Concurrent • Static and siloed • Real-time and integrated single system • Slow and difficult to respond to change • Fast proactive
Slide 8: Today's global marketplace is complex and volatile
Today’s global marketplace is complex and volatile Short and Brand SKU Global, multi- Unexpected dynamic pressure explosion tier sourcing events demand Omni-channel Short delivery Distribution Shifting growth lead time cost increase regulations Slide 8 Copyright © 2019 Kinaxis. All Rights Reserved.
Slide 9: Rapidly growing market for SaaS-based SCM solutions
Rapidly growing market for SaaS-based SCM solutions 1 Kinaxis’ market opportunity 2 2022 $10.5B > 100 Current customers 22.4% 2,000 2 CAGR Opportunities in 2017 current market 5,000 verticals served 2 SaaS Application Total potential $3.8B Market in SCM opportunities 1 Forecast: Supply Chain Managem
Slide 10: Market Leader
Market Leader Magic Quadrant for Supply Chain Planning System of Record1 3rd consecutive year in Leaders Quadrant. Positioned furthest on Completeness of Vision 3rd consecutive year as Leader. Highest on Greater Usability This graphic was published by Gartner, Inc as part of a larger research docume
Slide 11: Innovative leaders partner with Kinaxis
Innovative leaders partner with Kinaxis Aerospace & Consumer High Tech / Automotive Industrial Life Sciences Defense Products Electronics Copyright © 2019 Kinaxis. All Rights Reserved. 11
Slide 12: Actual customer results
Actual customer results Happier customers Lower costs Better efficiency Faster decision-making Copyright © 2019 Kinaxis. All Rights Reserved. 12
Slide 13: Actual customer results, Demand Sensing
Actual customer results, Demand Sensing System Under Test 55 products 140 stores Demand Sensing Results -60% stockout days -7% inventory Copyright © 2019 Kinaxis. All Rights Reserved. 13
Slide 14: Actual customer results, Self-healing Supply Chain
Actual customer results, Self-healing Supply Chain System Under Test 34k supply parts Lead Time Deviation Results 52% = +20days parts avg deviation Copyright © 2019 Kinaxis. All Rights Reserved. 14
Slide 15: Kinaxis partner ecosystem
Kinaxis partner ecosystem Strategy and Alliance partners Service partners Resellers 15
Slide 16: Business model provides visibility, stability & growth
Business model provides visibility, stability & growth VISIBILITY STABILITY ~ % > % FORWARD TWELVE-MONTH REVENUE NET REVENUE DOLLAR RETENTION SUSTAINABILITY SUBSCRIPTION REVENUE GROWTH 2-5 ~ 65 % | 35 % FROM NEW NAME ACCOUNTS ~ FROM EXISTING CUSTOMERS Multiple levers in revenue model: YEAR CONTRACTS
Slide 17: FY 2019 financial highlights
FY 2019 financial highlights $118.9 ↑22% $191.5 ↑27% 30% SaaS revenue Total revenue Adjusted EBITDA margin Copyright © 2019 Kinaxis. All Rights Reserved. 17
Slide 18: Backlog
Backlog SaaS backlog Total Backlog 400 ↑43% $339.4 ↑40% $310.6 300 $289.7 $247.3 $246.9 $237.5 $234.5 $229.3 $222.3 $212.6 200 ~$122 million of backlog unwinds as SaaS revenue in 2020 100 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Copyright © 2019 Kinaxis. All Rights Reserved. 18
Slide 19: FY 20 Guidance
Revenue guidance SaaS Subscription Term License Professional Services M&S $211-$215 million • $12- $13 million • ~stable with 2019 level 200 $191.5million • ~20% growth • Prana acquisition, organic growth 150 • $12-$14 million • Half 2019 level 100 • Lower on-premise renewals scheduled for 2020 • IF
Slide 20: Investment level, FY 2020
Investment level, FY 2020 FY 2020 guidance Gross Margin 69%-70% (Direct costs 29-31%) S&M Expense 27%-29% of revenue R&D Expense 19%-21% of revenue G&A Expense 13%-15% of revenue Capital Expenditures $14-$16 million Adjusted EBITDA Margin 20-23% of revenue Copyright © 2019 Kinaxis. All Rights Reserv
Slide 21: Building the Team for Acceleration
Building the Team for Acceleration Management Board John Sicard, Chief Executive Officer Ian Giffen (Chair) • Key contributor to the architecture and development • Serves as an advisor and/or director to technology companies of Kinaxis since 1994 and investment funds • Corporate Director to public a
Slide 22: Kinaxis growth focus
Kinaxis growth focus M U LT I P L E O P P O R T U N I T I E S TO I N C R E A S E M A R K E T P E N E T R AT I O N 1 Continuous customer value - land & expand 2 Expand geographic market focus 3 Invest in further product innovation 4 Leverage channel partners for scale and reach 5 Penetrate new vertic
Slide 23: Thank you
Thank you 23