Trade Window Holdings Ltd. · NZX:TWL
Trade Window — Investor Presentation (March 2024)
39 slides from Trade Window's investor presentation, March 2024
Slide 1: Capital Raising – Investor Presentation
Capital Raising – Investor Presentation March 2024 COMMERCIAL IN CONFIDENCE This presentation contains confidential and proprietary information and is intended solely for the internal use of the recipient to whom this presentation is addressed. It may not be reproduced, distributed or published in w
Slide 2: Disclaimer and important notice
Disclaimer and important notice The following notice and disclaimer applies to this investor presentation and you must Future performance: The information contained in this presentation may include forward- read this carefully before reading or making any other use of this presentation or any lookin
Slide 3: Disclaimer and important notice (continued)
Disclaimer and important notice (continued) Non-GAAP financial information: Certain financial measures included in this presentation Disclaimer: To the maximum extent permitted by law, none of Trade Window Holdings are non-GAAP financial information. Non-GAAP financial information does not have a Li
Slide 4: Contents
Contents Overview 5 The opportunity and our advantage 9 Growth strategy 17 Share offer 22 Risk factors 26 Offer restrictions 32 Appendix 35 COMMERCIAL IN CONFIDENCE Investor Presentation 4
Slide 5: TradeWindow: strong foundations, global progress
TradeWindow: strong foundations, global progress Market opportunity Opportunity for TradeWindow • ~$32B1 TAM for supply chain management software globally - • Capture market share in Australasia The opportunity estimated to grow at a CAGR of 14.3% p.a. • One of few organisations accredited to issue
Slide 6: Pathway to profitability
Pathway to profitability • Proceeds used to drive revenue growth in Australia and strengthen financial position • Forecast growth supports monthly EBITDA break-even in March 20251 • Predictable recurring revenues from over 4762 customers including some of the world’s most prolific agriculture export
Slide 7: Growing from solid foundations
Growing from solid foundations Revenue2 • Narrowing revenue guidance in the range of $6.1m to $6.2m for financial year ending 31 March 2024 • Delivered a CAGR of 140%1 since the start of commercialisation in January 2020 • Forecasting continued revenue growth in the range of 20% to 34% year-on-year
Slide 8: TradeWindow 2.0
TradeWindow 2.0 Pathway to profitability and continued revenue growth • Monthly EBITDA breakeven expected Average monthly net cash burn1 March 2025 • Positive monthly cash flow expected approximately six months later • Rationalised cost base includes reduced headcount, hybrid working, and offshore i
Slide 9: The opportunity and our advantage
The opportunity and our advantage COMMERCIAL IN CONFIDENCE
Slide 10: The trade problem
The trade problem Current global trade system Global trade is constrained by siloed systems which rely on manual paper-based processes to orchestrate the exchange of data “ A single transaction often requires the interaction of more than 20 entities, and involves • • Cost – human intervention at eac
Slide 11: Current global trade system
Current global trade system Movement of goods and financial flows requires the timely movement of accurate information across the supply chain Exporters’ Bank Correspondent Bank Importers’ Bank Invoicing Platform Pre-Shipment Exporter Forwarder Inspector Export Port Carrier Import Port Importer Insu
Slide 12: Our solution
Our solution Cube, TradeWindow's global trade platform can help customers drive productivity, increase connectivity, and enhance visibility across their supply chain Neutral Connected Digital Transparent Interoperability with best-of- Data encryption ensures A more transparent, efficient, End-to-end
Slide 13: Competitive landscape is fragmented
SHIPPER FOCUSED SOLUTIONS FORWARDER FOCUSED SOLUTIONS Competitive landscape is fragmented TECH ENABLED SERVICE End-to-end digital trade facilitation presents a whitespace opportunity with few dominant incumbents. TradeWindow is a sector neutral player with a BSM roadmap to deliver a global trade pla
Slide 14: 476 organisations use our technology
476 organisations use our technology Some of the Australasia’s most prolific shippers and freight forwarders rely on our solutions to run business critical operations Dairy Meat Seafood Horticulture Logistics & other Note, logos don’t necessarily correspond to top customers. COMMERCIAL IN CONFIDENCE
Slide 15: Diversified customer base
Diversified customer base We have low customer concentration risk with no single customer contributing more than 5% 1 Top 10 Customers % of trading revenue 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 1 2 3 4 5 6 7 8 9 10 1. Based on actual unaudited trading revenue for 10 months to 31 January 2024 COMMERCIAL
Slide 16: Revenue composition
Revenue composition Installation revenue Trading revenues highly predictable with 94% recurring 4% Transactional revenue 11% 2% Service • TradeWindow generates transactional revenue each time a revenue customer either creates or shares a set of trade documents 6% Subscription revenue • Customers pay
Slide 17: Growth strategy
Growth strategy COMMERCIAL IN CONFIDENCE
Slide 18: Multiple growth levers
Multiple growth levers Capital efficient growth focused on acquiring market positions that can help sustain building a competitive advantage in innovation INNOVATION GREATER USAGE NEW CUSTOMERS ACQUISITION of the Global Trade Platform by existing customers on the platform to accelerate and de-risk g
Slide 19: Innovation and development programme
Innovation and development programme Consolidating incumbent solutions into Cube, an integrated global trade platform Inbound Outbound Cube Data Data Global trade TW Connect TW Connect operational workflow Customer ERP 1PL 2PL 3PL 4PL 5PL Integration Milestones Shared infrastructure – SSO + common U
Slide 20: Greater usage
Greater usage Cube provides customers with easy access to a growing list of functionality on-demand Cube’s global trade platform capabilities currently include: • Ocean carrier bookings Key benefits of an on-demand revenue model • Customs clearance • E-commerce ✓ Enables customers to expand usage on
Slide 21: Projected financials – key assumptions
Projected financials – key assumptions Forward-looking financial information is inherently subject to uncertainty and judgement. Key assumptions which may have a material risk to our projections include: SPECIFIC GENERAL • The rate and timing of new customer traction • No material change in the curr
Slide 22: Share offer
Share offer COMMERCIAL IN CONFIDENCE
Slide 23: Use of proceeds
Use of proceeds Sources 1. Drive organic growth in Australia • Capture further market share in Australia with a focus on direct sales and Private placement $2.0m establishing channel partnerships • Building company and product profile to support lead generation and conversion in Share Purchase Plan
Slide 24: Capital raise summary
Capital raise summary • Seeking to raise up to $2.2 million through a: - Placement of up to $2.0 million open to eligible investors Offer size and - Progressive settlement and allotment on receipt of applications (from the time at which the NZ$1 million minimum subscription amount is structure reach
Slide 25: Timetable
Timetable Event Date Announcement of equity raising Tuesday, 26 March 2024 Placement Placement opens 10:00am (NZ time), Tuesday, 26 March 2024 Placement closes 12:00pm (NZ time), Friday, 19 April 2024 Progressive settlement and allotment following receipt of applications (from the time at Tuesday, 2
Slide 26: Risk factors
Risk factors COMMERCIAL IN CONFIDENCE
Slide 27: Risk factors
Risk factors Before investing in TradeWindow, you should be aware that an investment Before deciding whether to invest in TradeWindow shares, you must make in TradeWindow has a number of risks, some of which are specific to your own assessment of the risks associated with the investment in TradeWind
Slide 28: Risk factors
Risk factors Information technology and cybersecurity risk Key person risk TradeWindow's core business operations involves the processing and the TradeWindow’s continued success is dependent upon its ability to attract cloud hosting and storage of customers’ information. Any failures of, or and reta
Slide 29: Risk factors
Risk factors Supply chain disruptions Inability to protect intellectual property TradeWindow serves customers working on the front-line of global trade TradeWindow is a software business with a large proportion of its assets, with a significant portion of its revenue being made up of transaction fee
Slide 30: Risk factors
Risk factors Operating in a competitive market As previously announced, TradeWindow acquired the business and assets TradeWindow competes globally across multiple segments of the of Rfider in July 2022. The consideration payable for the acquisition intensely competitive and constantly evolving Trade
Slide 31: Risk factors
Risk factors Early-stage business Liquidity risk TradeWindow is an early-stage software business operating in a nascent TradeWindow's operations are reliant on maintaining access to liquidity. In market and is therefore a higher risk investment than a more established addition to maintaining a cash
Slide 32: International offer restrictions
International offer restrictions International Offer Restrictions Prospective investors should not construe anything in this document as This document does not constitute an offer of ordinary shares (New legal, business or tax advice nor as financial product advice for the Shares) of TradeWindow in
Slide 33: International offer restrictions
International offer restrictions Hong Kong Singapore WARNING: This document has not been, and will not be, registered as a This document and any other materials relating to the New Shares have prospectus under the Companies (Winding Up and Miscellaneous not been, and will not be, lodged or registere
Slide 34: International offer restrictions
International offer restrictions United States United Kingdom The New Shares have not been, and will not be, registered under the US The New Shares have not been and will not be registered under the Securities Act of 1933 or the securities laws of any state or other securities laws of the United Kin
Slide 35: Appendix
Appendix COMMERCIAL IN CONFIDENCE
Slide 36: Glossary
Glossary Annualised Recurring Revenue (ARR) Customs Broker Shipper The recurring revenue for a specified month annualised. A Customs Broker is a licenced individual who acts as A Shipper is an exporter or importer who requires an intermediary for Shippers and Freight Forwarders in carriers to transp
Slide 37: Our senior leadership team
Our senior leadership team Highly experienced team with the domain expertise needed to scale globally AJ Smith Kerry Friend Deidre Campbell Founder & CEO Executive Director Chief Financial Officer Entrepreneur with track record for creating Chartered Accountant with three decades Chartered Accountan
Slide 38: Our board of directors
Our board of directors Alasdair MacLeod Phil Norman AJ Smith Kerry Friend Independent Chair Independent Director Executive Director Executive Director and Chief Executive Alasdair joined the board in October Phil joined the board in October 2021 and was appointed Chair at 2021. Officer that time. Fo
Slide 39: Thank you
Thank you Investor Contact Andrew Balgarnie Chief Strategy Officer TradeWindow +64 275 594 133 [email protected] COMMERCIAL IN CONFIDENCE