Straker Translations : Investor Presentation H1 FY22

For personal use only

TIMELINE

Straker STG:ASX

H1 FY22 Presentation

25 Nov 2021

1

use only

H1 Financial Highlights

1H: A period of strong organic growth and margin expansion has set a strong platform as we head towards our aspirational $100m revenue target

For personal

57%

Revenue Growth

24		$23.3m
18
12	$14.8m
6
0
	H1 FY21	H1 FY22

73%

Gross Profit Growth

14
10.5	$13.1m
7	$7.5m
3.5
0
	H1 FY21	H1 FY22

$18m

Cash at bank

20
15	$18.2m
10
5	$7.7m
0
	H1 FY21	H1 FY22

+500bp

Gross Margin Growth

56	56%
54.5
53
51.5
51%
50
H1 FY21	H1 FY22

	60%
FY22 Revenue Growth*
50		$50m
37.5
25	$31.3m
12.5
0
	FY21	FY22E

Growth & scale on par with the leading tech stocks on the ASX

*guidance for FY22

2

Business now set to scale
only	Revenue and staff
use
50
37.5
Millions)
			Staff
(NZD	25
Revenue	12.5
0
personal
FY19	FY20	FY21	FY22
For
• Historically staff numbers have risen in-line with revenue growth
	as we built to critical mass and to deliver a $75m revenue business
	• We are at inflection point where revenue can accelerate faster
	than headcount positively impacting margins
	• Sales team has increased by 80% compared to the same period in
	the previous year and has built a significant pipeline of Enterprise
	leads set to be harvested
	• Delivering efficiencies in our production team - sales on track to
	grow 60% to our guidance of $50m for FY22E, and production

As we head towards our aspirational goal of $100m in revenue we do not expect our headcount or operating costs to increase at the same rate as our revenue.

Revenue aspirational target

	100
Revenue (NZD Millions)	75			300	Number**ff Sta
50			250
25			200
	0	75		100
	50
		Milestones*
	EBITDA	Vendor Costs	Opex	Staff**

* These are milestones for revenue - for clarity there are no dates attached to these milestones

team only forecast to grow by 17%

** Staff numbers as modelled by Straker's management based on current and projected productivity metrics

3

use only

M&A

To date Straker has made 8 successful acquisitions, when you take a portfolio approach and look at all 8 acquisitions in total the strategy has been a very successful one for growth and contribution back to the Group

For personal

16%

Revenue Growth

Revenue across all 8 acquisitions combined has increased by 16% compared to the total revenue at time of purchase

0.57x

Revenue Multiple

0.57x revenue including earn-outs

15% lower than the headline rate at purchase of 0.67x revenue

270bp

Margin uplift

The translation margin has increased from 54.1% in FY21 to 56.8% in H1 FY22 (excludes Lingotek as still integrating)

Eurotext	Elanex	MSS	EULE	COM	On Global	NZTC	Lingotek
Ireland	USA	Spain	Germany	Spain/USA	Spain	NZ	USA

2016

2017

2018

2018

2019

2019

2020

2021

4

M&A

For personal use only

• The market remains very active for M&A and we are in advanced discussion with several opportunities.
• We remain confident we will close at least one more M&A this financial year and we have a strong balance sheet to support our negotiations.

Our M&A Criteria

• Material revenue contribution towards achieving the $100m aspirational target
• Transferable value underpinned by technology or key customer relationships
• Profitable
• EBITDA / Cashflow accretive
• Only acquire business at a discount to our own revenue multiple, consistent with historical prices paid on a revenue and EBITDA basis

5