Kinaxis, Inc. · TSX:KXS
Kinaxis — Investor Presentation (November 2018)
20 slides from Kinaxis's investor presentation, November 2018
Slide 1: Kinaxis Investor Overview
Kinaxis Investor Overview TSX:KXS November 2018 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: Single planning platform for concurrent supply chain planning
• Using a single planning platform, Kinaxis streamlines processes, breaks down silos and lets our customers plan concurrently for every part of their supply chain. • Kinaxis brings data, processes and people into alignment. Our concurrent planning technique takes customers beyond the disconnected, c
Slide 4: Investment Highlights – High Growth SaaS Model
Investment Highlights – High Growth SaaS Model STRONG REVENUE VISIBILITY 133.3 100.8 116.0 24% 25% 81.8 36% CAGR CAGR CAGR 40.1 91.3 65.2 30.0 70.1 28.5 51.1 33% US Dollars 30% (Millions) 16.1 25% 23% 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 TOTAL REVENUE2 TOTAL SUBSCRIPTION REVEN
Slide 5: Investment Highlights
Investment Highlights 1 Industry-recognized, disruptive SaaS product 2 Growing blue chip customer base 3 Growing list of partners providing scale 4 Investing for accelerated growth, strong profitability 5 Strong leadership team Copyright © 2018 Kinaxis. All Rights Reserved. 5
Slide 6: Rapidly growing market for SaaS-based SCM solutions
Rapidly growing market for SaaS-based SCM solutions 1 Kinaxis’ market opportunity 2 2018 $4.4B ~ 100 Current customers 19.1% 2,000 2 CAGR Opportunities in 2012 current market 5,000 verticals served 2 Cloud Application $1.5B Market in SCM Total potential opportunities 1 Forecast: Public Cloud Service
Slide 7: Supply chains are being disrupted
Supply chains are being disrupted Supply Chain New Consumer Complexity & Volatility Technologies Expectations Short and Global, multi- SKU dynamic tier sourcing explosion demand Omni- Unexpected Distribution channel events cost increase growth Shifting Brand Short lead regulations pressure time Copy
Slide 8: Siloed, cascaded planning has failed
Siloed, cascaded planning has failed A B C D E Old way Our way • Cascaded • Concurrent • Static and siloed • Real-time and integrated single system • Slow and difficult to respond to change • Fast proactive response to change • Focused on functional metrics • Aligned around corporate metrics Copyrig
Slide 9: 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 This graphic was published by Gartner, Inc as part of a larger research document and should be evaluated in the content of the entire docume
Slide 10: 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 © 2018 Kinaxis. All Rights Reserved. 10
Slide 11: Kinaxis customers
Kinaxis customers Aerospace & High Tech / Automotive CPG Industrial Life Sciences Defense Electronics Copyright © 2018 Kinaxis. All Rights Reserved. 11
Slide 12: Actual customer results
Actual customer results Happier customers Lower costs Better efficiency Faster decision-making Copyright © 2018 Kinaxis. All Rights Reserved. 12
Slide 13: The Self-Healing Supply Chain
The Self-Healing Supply Chain 1 LEAD TIME Detect Analyze Inventory Detect deviations Analyze and make Late revenue intelligent predictions A regarding what the values should be 2 I YIELDS Order fulfillment Value Heal Capacity utilization Monitor performance Automatically Improvements and value heal
Slide 14: Partner program driving growth and scale
Partner program driving growth and scale + Strategic/ Influence Partners + Recruitment Enablement Copyright © 2018 Kinaxis. All Rights Reserved. 14
Slide 15: 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 16: Financial results
Financial results IFRS 15/161 Pre-IFRS 15/161 $USD millions Q3 2018 Q3 2018 Q3 2017 Change Total Revenue $36.6 $39.6 $33.5 18% Subscription Services $27.2 $30.7 $25.8 19% Subscription Term Licenses $0.5 - - - Total Subscription Revenue $27.7 $30.7 $25.8 19% Gross Profit $24.6 $27.6 $23.8 16% (margin
Slide 17: Financial guidance
Financial guidance FY 2018 $ in USD millions IFRS 15/16 Pre-IFRS 15/161 Total Revenue $152 - 153 $155 - 157 Subscription Services $107 - 108 $21 - 22% growth Subscription Term Licenses $9 - 10 - Adjusted EBITDA margin2 25 - 28% of revenue 25 - 27% of revenue 1 Based on IFRS standards in effect as at
Slide 18: 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 • Director at Absolute Software
Slide 19: 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 Land & expand model 2 Ongoing penetration of new vertical markets 3 Expand direct sales team, leverage channel partners 4 Invest in further product innovation 5 Invest in new data cen
Slide 20: Thank you
Thank you 20