JCurve Solutions (JCS) Investor Presentation - June 2019 www.jcurvesolutions.com
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JCurve Solutions (JCS)
Investor Presentation
June 2019
www.jcurvesolutions.com ASX: JCS
JCURVE SOLUTIONS IMPORTANT INFORMATION
Disclaimer
The information contained in this Presentation (“Presentation”) has been prepared by JCurve This Presentation should not be considered as the giving of investment advice or
Solutions Limited (“the Company”) and is being delivered for informational purposes only. recommendations by the Company or any of its shareholders, directors, officers, agents,
employees or advisors. Each party to whom this Presentation is made available must make its
The Company has prepared the Presentation Materials based on information available to it at
own independent assessment of the Company after making such investigations and taking
the time of preparation. No attempt has been made to independently verify the information
such advice as may be deemed necessary. In particular, any estimates or projections or
contained in this Presentation. The Presentation does not purport to contain all information
opinions contained herein necessarily involve significant elements of subjective judgement,
that a prospective investor may require. While the information contained herein has been
analysis and assumption and each recipient should satisfy itself in relation to such matters.
prepared in good faith, neither the Company nor its shareholders, directors, officers, agents,
employees, or advisors give, has given or has the authority to give, any representations or This Presentation may contain “forward looking statements”. Where the Company expresses
warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness or implies an extension or belief as to future events or results such expectation or belief is
of the information in this Presentation, or any revision thereof, or of any other written or oral expressed in good faith and believed to have reasonable basis. However, “forward looking
information made or to be made available to any interested party or its advisors (all such statements” are subject to risks, uncertainties and other factors, which could cause actual
information being referred to as “information”) and liability therefore is expressively results to differ materially from future results expressed, projected or implied by such
disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, “forward looking statements”. The Company does not undertake any obligation to release
agents, employees or advisors take any responsibility for, or will accept any liability whether publicly any revisions to any “forward looking statement” to reflect events or circumstances
direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect after the date of this Presentation or to reflect the occurrence of unanticipated events, except
of the accuracy or completeness of the information or for any of the opinions contained as may be required under applicable laws.
herein or for any errors, omissions or misstatements or for any loss howsoever arising from
All forward looking statements, forecasts and projections contained in this Presentation are
the use of this Presentation. In furnishing this Presentation, the Company does not undertake
qualified by the foregoing cautionary statements. Recipients are cautioned that forward
or agree to any obligation to provide the recipient with access to any additional information or
looking statements are not guarantees of future performance and accordingly recipients are
to update this Presentation or to correct any inaccuracies in, or omissions from, this
cautioned not to put undue reliance on forward looking statements due to the inherent
Presentation which may become apparent.
uncertainty therein.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 2 2
JCURVE SOLUTIONS OUR HISTORY
JCurve JCS expands
1997 Stratatel 2008 STE acquires 2013 STE acquires 2016 JCS signs NetSuite 2019
Solutions (STE) Phoneware JCurve Solutions Solution Provider into Asia through
Founded Pty Ltd and Agreement acquisition of
renames Spectrum Group
has evolved corporate entity
JCurve Solutions
into a listed
Limited (ASX:JCS)
diversified Telecommunications Expense Management Focus Business Management Solutions Focus
solutions
provider 2000 Listed on ASX
(ASX:STE)
2009 Separate Private
Company JCurve
2014
JCS acquires the
Full Circle Group 2018
JCS acquires
Riyo software
Platform
Solutions Pty Ltd
signs International
Reseller Agreement
with NetSuite
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 3
JCURVE SOLUTIONS OUR BOARD
JCurve
Solutions Bruce Hatchman David Franks Mark Jobling
is led by an Non-Executive Chairman
Appointed November 2014
Non-Executive Director & Secretary
Appointed September 2014
Non-Executive Director
Appointed April 2015
experienced /bruce-hatchman /david-franks /mark-jobling
Board of
Mr Hatchman is an experienced Board Mr Franks joined the company in 2014 Mr Jobling is a substantial shareholder of
Director having being appointed Chairman as Company Secretary/Non-Executive the Company and holds a Bachelor of
of Consolidated Operations Group Limited, Director. With over 25 years’ experience Economics and Bachelor of Laws (Hons)
Directors Darwin Clean Fuels Limited, dwp
International Limited and various other
in finance and accounting, Mr Franks has
been CFO, Company Secretary and/or
from Monash University. Mr Jobling
manages investments in a diverse range of
privately held businesses. He is a qualified Director for numerous ASX listed and industries including power technology and
Chartered Accountant and member of the unlisted companies in a wide range of angel investing in Asian start-up companies
Australian Institute of Company Directors. industries. and is currently based in Hong Kong. He
Mr Hatchman was a founding partner of began his career as a commercial lawyer
Mr Franks is a Chartered Accountant,
Crowe Horwath and its former Chief with Mallesons Stephen Jaques in Australia
Fellow of the Financial Services Institute
Executive. That role included overall and went on to hold senior executive roles
of Australia, Fellow of the Governance
operational responsibility together with in multi-billion dollar companies, including
Institute of Australia, Justice of the Peace,
developing and executing a growth strategy Managing Director of South East Asia and
Registered Tax Agent and holds a
that resulted in revenues and profits Taiwan for CLP Holdings Limited, and CEO
Bachelor of Economics (Finance and
growing by 500%. Further activity included of OneEnergy Limited, a CLP/Mitsubishi
Accounting) from Macquarie University.
Merger & Acquisition assignments for firm Corporation joint venture in Asia.
clients including national iconic brands.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 4
JCURVE SOLUTIONS OUR TEAM
JCurve Stephen Canning
Chief Executive Officer
James Aulsebrook
Chief Financial Officer
Kate Massey
Chief Marketing Officer
Solutions Appointed EMT January 2015
/stephengcanning
Appointed EMT April 2016
/james-aulsebrook
Started at JCS September 2009
& appointed EMT July 2016
is led by /missmassey
Responsible for the strategic business Responsible for the financial Responsible for driving year-on-year
experienced direction, building a high performing
team and overall business growth,
performance and stability of the
company, financial reporting, treasury,
business growth through both sales
and marketing formulating the go-to-
Senior both organically and through
acquisition.
due diligence, HR and legal activities. market strategy and successfully
integrating new acquisitions.
Executives
Katrina Doring Peter Choo Arthur Fernandez
Chief Operating Officer Product Strategy Director General Manager
Appointed EMT July 2016 Started at JCS October 2015 & JCS Asia
appointed EMT October 2017 Appointed EMT December 2018
/katrina-doring /peterchoo /arthur-fernandez
Responsible for delivering operational Responsible for product strategy and Responsible for growing JCS
excellence, driving productivity gains matching roadmaps to meet customer throughout Asia as a 5 Star NetSuite
and cost-efficiencies as the business needs, with a focus on customer Partner with a focus on successful ERP
continues to scale. acquisition and on-boarding. project delivery.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 5 5
JCURVE SOLUTIONS OUR PURPOSE
The “Why”
JCS is a specialist solution
provider. Our whole
business is based around
providing an exceptional
customer experience by
delivering the best possible
solution to our clients Mission Vision
through market leading We deliver world-class business To become the most trusted
software applications management solutions that enable cloud solutions partner for
our customers to make lasting, growing businesses throughout
and excellence in
substantial improvements to their the Asia Pacific region.
service delivery.
business performance.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 6
JCURVE SOLUTIONS OUR SOLUTIONS
The “What”
We deliver cloud ERP Service TEMS
solutions and
services that drive
improvement
in business
performance.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 7 7
JCURVE SOLUTIONS OUR PRINCIPLES
The ”How”
Across all our
01 02 03 04 05
solutions and Simplify Deliver Grow the Leverage scale Live our
services, we stick complexity exceptional value of and a lower corporate
to 5 principles that to reduce customer customers cost base to values and
determine HOW effort, bring experience seamlessly ensure maintain our
operational solving pain- giving us we are cultural
we do anything.
efficiency points that higher competitive vitality.
and drive others can’t profit per and growing
growth. solve. customer. our
profitability.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 8
Enterprise Resource Planning (ERP)
CLOUD BUSINESS MANAGEMENT SOLUTIONS
What is ERP?
ERP stands for Enterprise Resource Planning. It
is integrated software to manage all aspects of a
business.
Every business size solutions for large, mid-sized Single
and small, fast-growing businesses. Unified
Industry-specific functionality spanning a broad Cloud ERP
Software
range of businesses.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 10CLOUD BUSINESS MANAGEMENT SOLUTIONS
Our ERP Story About Oracle NetSuite
• NetSuite is the
In 2009, our ERP practice was born,
#1 Cloud Business
selling a small business edition of
Software Suite Globally
NetSuite (JCurve ERP).
• >16,000 customers
In 2016, on becoming a full NetSuite
Solution Partner we significantly • NetSuite acquired by
increased the size of the addressable Oracle (NYSE: ORCL)
target market. JCS now sells all for $9.6bn in 2016
editions of NetSuite into a wide • NetSuite transforms
range of industries. how businesses
In 2018 we entered the Asian market, operate so they
opening an office in Singapore can achieve their
following the acquisition of a local business vision
Solution Partner.
SOLUTION PROVIDER
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 11CLOUD BUSINESS MANAGEMENT SOLUTIONS
Our ERP Success JCS awarded Oracle NetSuite
New Business Partner of the
Year 2018, delivering more
• #1 Oracle NetSuite Solution Partner globally by new business to Oracle
customer count NetSuite than any other
partner in ANZ
• 5-star Solution Partner which guarantees JCS receives
the highest level of commissions on NetSuite edition
licence sales
• 10-year track record of successful ERP delivery
• Rapid implementation methodology
• First adopters in the region of SuiteSuccess – NetSuite’s
strategic product and implementation methodology
• Unrivalled implementation experience
• 600+ ERP customers
• Successfully expanded from SME to also service larger
global organisations
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 12CLOUD BUSINESS MANAGEMENT SOLUTIONS
Our Model We use the following four key metrics to measure the success of our
ERP practice:
We acquire new customers, delight
them with exceptional customer
ARR Deal Size Acquisition Churn
experience and a world class product
Annual Average Net The number of The percentage
so that they stay with us, grow with
Recurring Income per New customers and of Annual
us and buy more services and
solutions from us, and refer more Revenue Business Sale licensed users Recurring
customers to us. (annualised Revenue lost
licence and each year from
www.jcurvesolutions.com/customers support the customer
income) renewal base
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 13CLOUD BUSINESS MANAGEMENT SOLUTIONS
ARR $7,000,000
$6,000,000
The annualised contracted recurring
revenue across the ERP contract base.
$5,000,000
This represents the net licence fees,
plus support.
$4,000,000 $6M+
Current
What is driving ARR growth? $3,000,000
annualised
• Each year we acquire more contracted
$2,000,000 recurring
new customers
revenue
• We sell more to existing customers
$1,000,000
• We retain our customers better
$-
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2009 2010 2011 2012
2013 2014 2015 2016
2017 2018 HY2019 Acquired on acquistion
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 14CLOUD BUSINESS MANAGEMENT SOLUTIONS
Average Net Income
Per New Business Sale Average Net Income Per New Business Sale (AIPS)
$45,000
This is the licence commission received on
$43K
$40,000
NetSuite edition customers or licence fee
charged for JCurve ERP customers, plus $35,000
implementation fees, plus support plus
$30,000 Current
any third-party products. Average AIPS
$25,000
What is driving AIPS growth?
$20,000
• Increase in customer size with the
sales of NetSuite editions $15,000
• Increased additional modules and $10,000
professional services sold $5,000
$-
2015 2016 2017 2018 2019 (*)
(*) Average unaudited result for the 11 months ending 31 May 2019
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 15CLOUD BUSINESS MANAGEMENT SOLUTIONS
Customers by NetSuite ERP Solution Edition
700
Customer 600
Number of JCurve ERP
edition customers
Acquisition
500
Number of NetSuite
>600
400 edition customers
Total of ERP
300
Since becoming a NetSuite Solution customers
Provider in 2016, our focus has 200
Current # ERP
broadened to include not only small 100 Customers
business customers but also the 0
larger mid-market and enterprise 2014 2015 2016 2017 2018 2019 (*) (*) As at 31 May 2019
customers. Larger customers deliver
Number of Recurring NetSuite ERP licenses
increased ongoing revenue and are 4,500
more profitable.
4K+
4,000
3,500
The majority of our NetSuite edition 3,000
clients have been acquired in the last 2,500
2,000 Current #
2 years.
1,500 ERP Users
1,000
500
-
2015 2016 2017 2018 2019 (*) (*) As at 31 May 2019
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 16CLOUD BUSINESS MANAGEMENT SOLUTIONS
Churn
ERP Churn by Contract Value
16%
7.9%
What has been driving the reduction 14%
in long term churn?
• Our dedicated support team 12%
Current ERP
• Our local account management Churn (**)
10%
team who are committed to
(**) FY2019 ERP churn
ensuring customers get ongoing 8%
for the 11 months
ending 31 May 2019
value from their ERP solution
• The move to larger, more stable 6%
customers
4%
2%
0%
2015 2016 2017 2018 2019 (*)
(*) Average unaudited result for the 11 months ending 31 May 2019.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 17CLOUD BUSINESS MANAGEMENT SOLUTIONS
“Our ability to scale provides the opportunity to continually grow
our customer base and our share of our customers’ spend. We
now have the people, processes and systems in place to prove
that scalability whilst maintaining a strong focus on delivering
an exceptional customer experience.
By leveraging the world’s #1 cloud ERP platform,
we provide a cloud business management solution for
businesses of all sizes that will scale seamlessly as a business
grows”.
Kate Massey,
Chief Marketing Officer
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 18CLOUD BUSINESS MANAGEMENT SOLUTIONS
ERP revenue and expenditure
ERP sales continue $12,000,000
to grow while costs $10,000,000
are flattening $8,000,000
• Our Australian based team is at $6,000,000
peak planned capacity
• Increased use of lower cost-base $4,000,000
highly-skilled certified resources
• Increased operational efficiencies $2,000,000
• Scalable support through use of
$-
AI based support bots
2016 2017 2018 2019 (F) (*) 2020 (P) (**)
Revenue (AASB 15) Expenditure
(*) Forecast for FY2019 as at 31 May 2019 – unaudited results.
(**) Not a forecast. Reflects a future projection based on the execution of strategies outlined on this page. JCS expects that
its costs will only marginally increase as future revenue increases. The numbers in the graph are not representative of the
company portraying a forecast or estimate.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 19CLOUD BUSINESS MANAGEMENT SOLUTIONS
We are focused on Thailand
Our Offices
opportunities that Cambodia
• Sydney
will accelerate
SAARC Malaysia • Melbourne
Singapore
• Singapore
growth and our
Indonesia
• Manila
profitability Our Territories
• Australia
JCS Asia • New Zealand
Australia
We have established our Asian HQ in
• Singapore
Singapore through acquisition.
• Malaysia
• Thailand
JCS Philippines
New Zealand • Indonesia
We have created a delivery centre of
• Cambodia
excellence in Manila that will support
• SAARC
our growth in Australia and across Asia.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 20CLOUD BUSINESS MANAGEMENT SOLUTIONS
Why expand into Asia?
• We have over 10 years experience • Accelerate our ERP growth. We believe JCS
implementing NetSuite, we see an can do exceptionally well in Asia based on:
opportunity to bring our expertise
– Our credibility as NetSuite’s #1
to a rapidly growing and currently
partner globally
immature ERP market
– The size of our team and our number
• Diversify economic dependency
of certified consultants
• Counter the seasonality of our
– The credibility and reassurance that
Australian business
an ASX listed company brings to the
• Reduce our cost base Asia marketplace
– Our Sales and Marketing expertise
– The support of our strategic partner
Oracle NetSuite
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 21CLOUD BUSINESS MANAGEMENT SOLUTIONS
Partner Rollup
Acquisition Strategy
We are seeking to actively rollup some of the • JCS’ people, processes, systems and
smaller NetSuite Solution Partners in Asia our credibility assists the local Solution
when there is a compelling investment and Partner to rapidly grow through
business opportunity. increased sales and faster delivery
• When JCS acquires another solution
• NetSuite Solution partners in Asia tend partner, that partner immediately
to be less mature and available to becomes part of JCS 5-star NetSuite
acquire at realistic valuations partner with corresponding higher
• An existing partner gives JCS the local commission level for both new business
presence and knowledge of the local and existing business. Therefore, the
business and cultural landscape so we existing partner’s contracted recurring
can “hit the ground running” revenue is immediately uplifted,
underwriting part of the cost of
acquisition for JCS
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 22CLOUD BUSINESS MANAGEMENT SOLUTIONS
JCS Philippines
We have established a presence in Manila
• A talented skills base is available
Manila
• We have established a delivery centre of
excellence in Manila to:
– Support our growth in Australia
– Support our expansion into Asia
– Deliver unrivalled customer experience
– Deliver more services work into our
Philippines
existing customer base
– Reduce our existing cost base
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 23CLOUD BUSINESS MANAGEMENT SOLUTIONS
ERP Revenue by Geographic region
The Opportunity $14,000,000
$12,000,000
With the people, product and
resources in place in the geographic $10,000,000
locations entered, JCS is well
positioned to leverage the Asian $8,000,000
growth opportunity
$6,000,000
• Increase our customer
acquisition count $4,000,000
• Increase the ARR of the
ERP practice $2,000,000
• Increase the overall services $-
revenue of the practice 2016 2017 2018 2019 (F) (*) 2020 (P) (**)
• Reduce our overall cost base ANZ Revenue Current South East Asia Operations Additional South East Asia Operations
(*) Forecast for FY2019 as at 31 May 2019 – unaudited results.
(**) Not a forecast. Reflects a future projection based on the execution of strategies outlined on this slide. The numbers in
the graph are not representative of the company portraying a forecast or estimate.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 24CLOUD BUSINESS MANAGEMENT SOLUTIONS
What to expect
• Continued growth in licenced users as our • Further M&A activity in Asia
average customer size increases “In line with JCS’ stated intent to be a
• Strengthen our position as
diversified technology solutions
• Continued growth in Deal Sizes NS #1 ERP partner
company we will seek to both acquire
• Continued growth in ARR • Growth in Asia technology intellectual property and
• Relatively static customer numbers in Australia • Maintain 5-star status also to deliver value to our
as we focus on larger customer wins and the • Lower cost base with expansion shareholders by realising the inherent
customer mix shifts away from Small Business of JCS Philippines value of the businesses that we grow”.
• More customers in new verticals for JCS • Gross margin growth
(e.g. Service and Software businesses) Stephen Canning
• Re-investment of profit and
• Strong contribution from JCS Asia to our CEO
cashflow into opportunities
H2 result JCurve Solutions
• Expansion of territory
• Increasing levels of unearned income as we
sell to larger customers whose implementation
takes longer to complete
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 25RIYO Service Management Software
SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO
What is Riyo?
• Whatever the size of a business, if you need to take a booking, improved customer
experience
deliver a service at a certain place and time, take payment, then
we’ve got it covered
allocate and upsell
dispatch opportunities
• Retailers and service businesses often lose control of the
customer experience in “the last mile” – we’ve fixed that
One
One
• Riyo improves visibility and collaboration for all parties involved in Database
Database
complete live customer
delivering and consuming a service visibility feedback
• Riyo delivers the mobile experience demanded by today’s
consumers
• Powered by AI, the whole customer interaction is monitored to real-time
mobile-first
ensure an outstanding customer experience platform tracking
payment
processing
Explainer video: https://youtu.be/sZZT_jOXTiw
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 27SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO
Your Business On Demand
The Riyo Story
• A start up acquired by JCS in June
2018
• JCS completed development
of platform
• Integration to NetSuite built
• Established Riyo team to support
our go-to-market
• Launched to existing JCS
customers March 2019
• First customers on platform May
2019
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 28SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO
Who is Riyo for? Businesses that could
benefit from Riyo
Service businesses that want to: • Specialised Transportation
• Modernise the delivery experience for customers • Real Estate Management
• Scale their operations • Home Medical Services
Product businesses with: • Post-purchase assembly and Installation
• Installation Services • Maintenance
• Warranty and maintenance needs • Cleaning Services
Any business that wants to: • Facilities Management
• Take a booking to deliver a service at a specified location, at a specified time • Inspection and Assessment
• Take a booking from their website or social media pages • Insurance
• Deliver real-time progress updates on service bookings to customers • Storage Services
• Maintain quality control with access to rating and reviews of service providers • Pest Control
• Deliver an outstanding mobile-first experience to support brand loyalty and
repeat sales
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 29SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO
Key Features of Riyo
• Scalable, enterprise • Production tested with
grade solution for both B2B and enterprise customers
B2C businesses • Disruptive technology that is
• Easy integration into existing changing the way organisations
systems such as accounting and service their customers and
ERP packages including NetSuite how consumers procure and
• Customer-centric, complete engage services
visibility of service transaction • A differentiator for the
for customer “last-mile” of service delivery
• Location-enabled real-time • Customisable experience with
tracking development layer to make
• Automated digital end-to-end Riyo unique for each business
experience
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 30SERVICE MANAGEMENT SOLUTION YOUR BUSINESS ON DEMAND RIYO
What to expect
• Small revenue contribution FY19
• Growing customer numbers Q1 FY20
• Full marketing launch in Australia Q1 FY20
• Establishment of channel sales FY20
• Launch in to Asia FY20
• Global opportunity
Customer Acquisition Strategy
• Self Service online sign-up for small businesses
• Channel partnerships
• Leverage existing 600+ ERP customer base
• Targeting larger, high-volume service-based organisations
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 31Telecommunication
Expense Management
Solutions
(TEM Solutions)TELECOMMUNICATION EXPENSE MANAGEMENT SOLUTIONS
Our TEM Solutions simplify
telecom expense management
Our TEM Solutions Story
• Proprietary owned portfolio of solutions
• Original product proposition was to prevent “bill shock” One
• TEM Solutions Market has declined for a number of Database
years due to telco commoditisation
• Our solutions are still of benefit to larger organisations
looking for admin efficiency and cost control
• Our solutions are mature. We are committed to
continuing support for our TEM solutions
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 33TELECOMMUNICATION EXPENSE MANAGEMENT SOLUTIONS
TEMS Statutory Profit (ex impairment)
$2,000,000
What to expect
$1,800,000
$1,600,000
$1,400,000
$1,200,000
• Ongoing profitable contribution to JCS $1,000,000
• Continued support for TEM solutions $800,000
$1.1M
$600,000
• Reducing churn as larger more stable $400,000
customers make up the majority of $200,000 Current Annualised Statutory
$- Profit
the remaining customer mix
2016 2017 2018 2019 (F) (*)
• More lumpy churn if our larger
TEMS Revenue
customers decide to cancel their $5,000,000
TEM services $4,500,000
>100
$4,000,000
• We will seek opportunities in less $3,500,000
mature telco markets in Asia $3,000,000 Customers
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$- (*) Forecast for FY2019 as at 31 May
2019 – unaudited results.
2016 2017 2018 2019 (F) (*)
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 34JCURVE SOLUTIONS STRONG FOUNDATIONS FOR GROWTH
“JCurve Solutions has been on a transformational journey to build the
foundations for delivering improved and sustainable shareholder value.
By delivering world-class technology solutions to drive business efficiency
and performance to an expanded customer base, that are implemented
and supported by a team of passionate and skilled experts we are perfectly
placed to capitalise on continued expansion across Asia-Pacific.
We’ve built an unrivalled company culture that ensures our team have a
customer-first approach and deliver a great chance of success for
businesses. We believe that together we are all more successful”.
Stephen Canning,
Chief Executive Officer
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 35JCURVE SOLUTIONS KEY STRATEGIC PRIORITIES
Grow ERP in Australia Grow JCS in Asia Launch RIYO
• Win new business in mid-market • Grow ERP Sales from Singapore • Product enhancements from
• Increase upsell to existing office existing customer feedback
customers • Grow JCS Philippines team • Expand into existing customer
• Reduce churn • Establish JCS brand in Asia base
• Further M&A • Focus on larger opportunities
• Look beyond Australia
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 36JCURVE SOLUTIONS OUR FOCUS
What to expect
To be a $14,000,000
Revenue by Product Division • Sustained revenue growth
in ERP in Australia based
diversified $12,000,000
around mid-market
technology • Further expansion in ERP in
Asia both organic and
solutions
$10,000,000
through acquisition
company $8,000,000 • Flattening of cost
base growth
$6,000,000
• Small revenue contribution
from Riyo in FY19
$4,000,000
• Ongoing, profitable
$2,000,000 contribution from TEM
Solutions albeit declining
$-
2016 2017 2018 2019 (F) (*)
• Revenue diversification
through product IP based
NetSuite ERP TEMS Other
acquisitions
(*) Forecast for FY2019 as at 31 May 2019 – unaudited results.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 37JCURVE SOLUTIONS DIVERSIFICATION
Growth When looking at potential acquisitions we ask ourselves
the following questions:
through
acquisition
01 02 03 04
Does it align to Is it Does it solve Can we do
JCS continues to seek our purpose? scaleable? a significant it better than
acquisitions that: market need? the rest?
• Add to our product IP
(revenue diversity)
Grow our ERP business,
•
especially in Asia
05 06 07 08
(geographic diversity) Does it leverage Does it fit our risk Will it create Will it fit our
our core profile? long term corporate
capabilities? shareholder culture?
value?
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 38JCURVE SOLUTIONS JCS METRICS
Consolidated Revenue Normalised EBITDA excluding impairment charge
$13,000,000 $1,200,000
Our Company $12,000,000
$1,000,000
Performance $800,000
$11,000,000
$600,000
How do we measure our
$10,000,000
overall success? $400,000
Cash Flow $9,000,000
$200,000
Significant turnaround in
$8,000,000 $0
company performance since
2016 2017 2018 2019 (F) (*) 2016 2017 2018 2019 (F) (*)
the second half of FY2016 (*) Forecast for FY2019 as at 31 May 2019 – unaudited results. (*) Forecast for FY2019 as at 31 May 2019 – unaudited results.
Revenue Long term revenue and earnings history
Steadily increasing year $15
on year despite reducing
$10
TEM Solutions revenue
Millions
$5
EBITDA
$0
We have been profitable 2012 2013 2014 2015 2016 2017 2018
-$5
since 2016
-$10 Revenue Loss Profit
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 39JCURVE SOLUTIONS DELIVERING FINANCIAL STABILITY
Net operating cash flow
$1,500,000
“Over the past three years we have
significantly improved the financial $1,000,000
stability of JCurve Solutions which ensures
we are well positioned to capitalise on the
$500,000
market opportunities before us. In a time of
transformation we now have more customers,
have diversified both geographically and from a $-
2014 2015 2016 2017 2018
product perspective, acquisitions paid from existing cash
reserves, whilst remaining debt free and growing both
-$500,000
our cash and unearned income balances”.
James Aulsebrook, -$1,000,000
Chief Financial Officer
$3.3M $3.7M
as at 31 May 2018 as at 31 May 2019
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 40JCURVE SOLUTIONS OVERALL SUMMARY
Capital Structure and Shareholders
As at 31/5/2019 Ordinary Fully Paid Shares as at
Units % of Units
Key Statistics (ASX: JCS) unless otherwise 31/5/2019
stated
Directors and Executive Interests 65,839,427 20.08%
Share Price $0.036
Other Top 20 Holders 172,018,577 52.47%
Shares on Issue (i) 327,856,900
Remaining Holders 89,998,896 27.45%
Market Capitalisation $11.8m
Substantial Shareholders as at
Cash $3.7m Units % of Units
31/5/2019
Debt Nil Gramell Investments Pty Limited 83,124,215 25.35 %
Enterprise Value $8.1m Mr. Mark Jobling 51,204,301 15.62 %
52 week high / low share price $0.024 / $0.054 Mr. Philip Ewart 27,908,360 8.51%
(i) Excludes 10m performance rights and 8.9m options
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 41JCURVE SOLUTIONS OUR INVESTOR PROPOSITION
Value and Strong Financial Growth Strong Operational
Foundations Fundamentals
growth • Continued organic revenue
and profit growth • Growing revenue
Opportunity on current
$0.9m • Market trend towards • Strategic relationship
EBITDA forecast for FY2019 (*) cloud adoption
multiples (FY2019 Forecast with #1 vendor of cloud
ERP software
and $11.8m market cap):
$3.7m • Industry leading products
• Expanding list of
0.9x revenue, 1.4x on • Through acquisitions such
cash at bank additional solutions
as Riyo & Spectrum
consolidated recurring as at 31 May 2019
Partner Group • We have a proven
revenue base, 13x
• Other M&A opportunities track record
Normalised EBITDA
• Operating cash flow positive continue to be evaluated • Experienced Board
for FY2018
• Product diversification • Experienced, industry
• Debt free award recognised senior
• Growing recurring annual management team
ERP commissions
• Continued investment in
proprietary products
(*) Forecast for FY2019 as at 31 May 2019 –
unaudited results.
JCURVE SOLUTIONS INVESTOR PRESENTATION JUNE 2019 42Stephen Canning James Aulsebrook
Chief Executive Officer Chief Financial Officer
stephen.canning@jcurve.com.au james.aulsebrook@jcurve.com.au
www.jcurvesolutions.com
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