business presentation & q3 trading update2016/05/18 · business presentation & q3 trading...
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RHP Business Presentation & Q3 Trading Update Page 1
18 May 2016
Sydney, Australia
ASX Code: RHP
Business Presentation & Q3 Trading Update
Please find attached a “Business Presentation & Q3 Trading Update” that will be presented by Dominic O’Hanlon, CEO of rhipe, at the Morgans conference today.
For more information contact:
Dominic O’Hanlon Mike Hill
Chief Executive Officer Executive Chairman
Ph +61 406 751 855 Ph +61 421 056 691
Additional information
About rhipe
rhipe, (ASX:RHP) is the cloud channel company. It provides its partners with a complete end to end cloud
solution, helping them to grow and thrive in the emerging Cloud economy. As Cloud 1st, channel 1st company,
rhipe is recognised as the leading expert in subscription software licensing in Asia Pacific and its multi-award-
winning services and support division is the industry leader in Microsoft Office365 implementation.
The company has offices has in Melbourne, Sydney, New York, Auckland, Singapore, Bangkok, Manila, Kuala
Lumpur and Jakarta.
Business Presentation & Q3 Trading Update
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rhipe Limited (ASX code RHP)
Business Presentation & Q3
Trading Update
Morgans Conference
18th MAY 2016Dominic O’Hanlon, Chief Executive Officer
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The Recipient, intending investors and respective advisers, should:
• conduct their own independent review, investigations and
analysis of RHP and of the information contained or referred to
in this presentation;
• seek professional advice as to whether an investment in RHP is
appropriate for them, having regard to their personal objectives,
risk profile, financial situation and needs; and/or
• nothing in this presentation is or is to be taken to be an offer,
invitation or other proposal to subscribe for shares in RHP.
The Recipient specifically agrees, understands and acknowledges that
some of the information contained herein has been provided by third
parties (including all information regarding LiveTiles) and the
Beneficiaries accept no responsibility for any inaccuracy, misstatement,
misrepresentation or omission in relation to that information.
Except insofar as liability under any law cannot be excluded, none of
the Beneficiaries shall have any responsibility for the information
contained in this presentation or in any other way for errors or
omissions (including responsibility to any persons by reason of
negligence).
This presentation has been prepared by rhipe Limited ACN 112 452 436
(RHP). Each Recipient of this presentation is deemed to have agreed to
accept the qualifications, limitations and disclaimers set out below.
None of RHP and or its subsidiaries or their respective directors, officers,
employees, advisers or representatives (Beneficiaries) make any
representation or warranty, express or implied, as to the accuracy, reliability
or completeness of the information contained in this presentation, including
any forecast or prospective information. The forward looking statements
included in this presentation involve subjective judgment and analysis and
are subject to significant uncertainties, risks and contingencies, many of
which are outside the control of, and are unknown to, the Beneficiaries.
Actual future events may vary materially from the forward looking statements
and the assumptions on which those statements are based. Given these
uncertainties, you are cautioned to not place undue reliance on such forward
looking statements.
This presentation is a general overview only and does not purport to contain
all the information that may be required to evaluate an investment in RHP.
The information in this presentation is provided personally to the Recipient
as a matter of interest only. It does not amount to an express or implied
recommendation with respect to any investment in RHP nor does it
constitute financial product advice.For
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The rhipe
Value
Proposition
Operating
Divisions
Q3 Trading
UpdateMarket
Opportunity
Growth
Update
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The rhipe
Value
Proposition
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Passionate about helping service providers adaptand thrive in the emerging cloud economy
Channel
First
Cloud
First
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Software
VendorsService
providers
Software
licensing
End
usersServices
Products
6
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Operating
Divisions
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Cloud Operations
Cloud first, digital first marketing
transformation to drive demand
for channel partners.
Billing, software-asset management
& license optimization
Cloud Solutions
Professional services and support
people to help Service Providers with
technical needs
Cloud Licensing
Software sold and implemented
by service providers.
Pay based on usage.
(95% of revenues via channel B2B
of which 95% are monthly
subscription income streams)
(5% of group revenues from direct
end user B2B customers)
(Support, IT and IP to support
licensing and solutions)
SupportServices and support to
position offerings for new licensing
programs.
ValueAdd value with systems & ease
of trade for Cloud Service Providers.
LicensingBuild and expand on cloud licensing
programs. Multi-vendor and multi
region.
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Q3 Trading
Update
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• Growth Top 10 Analysis
26% YTD
MARGIN
• New Programs
GROWTH PROFITABILITY
MARKET OPPORTUNITY2INVESTMENT AREAS OUTLOOK
101. Ex Top 10 is approximately 99% of total customers (or approximately 1790 of total 1800 customers)2. IDC – #US40709515 Dec 2015
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YTD Mar-16 # Partners % of Margin (A$) Margin (%) Sales (%)
Top 10 10 ~9% ~3.6% 33.4%
Rest c.1,790 ~91% ~20.6% 66.6%
Total c.1,800 A$14.2m 14.2% A$94.9m
Margin Analysis Top 10
Growth Analysis Top 10
Sales1 (A$m) YTD Mar-15 YTD Mar-16 % Growth
Top 10 21.9 31.7 44.7%
Rest 44.4 63.2 42.3%
Total 66.3 94.9 43.1%
Ex Top 10: High gross margin
proportion91%
Ex Top 10: High growth 42.3%
Ex Top 10: High margin 20.6%
Note: Sales data excludes rebate, margin data includes rebate of approximately A$5.0mm (YTD). .
11
5.0
7.5
10.0
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
Sales of tail partners (excludes rebates)(A$mm)
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$12
$16
$20
$24
$28
Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
Millions52% Growth in
Total Group GM $
Growth GM $ Analysis
- LTM gross profit dollars
$12
$14
$16
$18
$20
Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
Millions
26% Growth in
Licensing GM $
LICENSING EXPENSES $ (EX. SOLUTIONS)Rolling LTM EXPENSES $
Group Gross Margin $ Licensing Gross Margin $
Expense Growth
has flat lined
• Annualised Licensing Expenses of approx. ~$20M
• Annualised Solutions Expenses of ~$7m
• Total Group monthly costs approx. $2.3m per month and
includes all investment in new Regions and Teams
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2
4
6
8
10
12
14
16
18
July 2015 October 2015 December 2015 March 2016
Millions
Trade Debtors Trade Creditors Cash on Hand
Unaudited
13
Cash on Hand
Cash Received for O/D
Cash for Sale of LiveTiles
Ample Cash Available
$7.3M
$1.3M
$4.5M
$13.1M
Cashflow on hand inclusive of working capital
1. O/D refers to two Top 10 aged outstanding debtors received post 31 Mar balance date.2. Sale of LiveTiles completed post 31 Mar balance date.
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Growth
Update
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0
100
200
300
400
500
600
15
Cumulative partner agreements in SEA
$M
0
20
40
60
80
100
120
FY11 FY12 FY13 FY14 FY15 FY16
1H RevenuePre-Listing 2H Revenue
FY13 FY14 FY15
Q1Q2 Q3
Q4Q1
Q2Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY16
Indonesia
Malaysia
Philippines
Singapore Thailand
ThailandApr 2013
MalaysiaFeb 2014
Singaporesince 2012
Indonesia Jul 2014
PhilippinesSep 2013
Q3
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Unaudited
SEA vendor GROWTH YTD PCPSEA Q3 Performance
Growth in SEA remains attractive at circa +100% Q3 PCP and vendor mix strong across all key
categories as markets adopt cloud solutions.
Singapore Philippines Thailand Malaysia Indonesia
FY15 Q3 FY16 Q3
95%
Growth PCP
109%
Growth PCP
154%
Growth PCP 71%
Growth PCP 113%
Growth PCP
0% 50% 100% 150% 200% 250% 300%
Citrix
SPLA
Zimbra
VSPP
VEEAM
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42%
net new partners to rhipe
MSFT CSP Key Stats
rhipe’s combined Cloud business continues to grow in all countries with a solid start in 1H FY16
As at 15th February 2016
2T Competitive Ranking
Asia Ranked #1
Global by Company #7
Global by Territory #11
Australia
Launched July 1 2015
SG, ML & TH Launched Oct 2015
PH Launched Nov 2015
Program Launches
South East Asia
05000
100001500020000250003000035000
Jul Aug Sep Oct Nov Dec Jan Feb May
CSP Seats
(253 @ 15th Feb) (266 at Nov 15) (185 at Nov 15)
31886
As at 5 May 2016
11,510
As at 26 Nov 15
As at 5th May 2016
332
signed and now
transacting
(Activation ratio 68%)
488
signed partners
272
partners on-boarding
to CSP
rhipe exceeds 20K seats in 6 months
Launched Feb 16’ (50+
partners recruited 1st month)
AU since 1 July 2015
SEA launched Oct 2015
Launched Q2 FY16
Ave revenue per seat: $13*
ARR $4.5M
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$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
FY15 FY16
Q4
Q3
Q2
Q1
LSP Cumulative Partner agreements
Apr- 16 Jul - 15
148 LSP contracts YTD to 31 March 16
22 new LSP contracts in April 16
Expect strong financial year end close to 30 June
Investment success with LSP division profitable and growing.
0
20
40
60
80
100
120
140
160
180
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Market
Opportunity
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rhipe is well-positioned to capture this Cloud opportunity. We have the programs, people and systems today to deliver
our Public, Hybrid or “Whole of Cloud” future
USD141.2 BillionGlobal Public Cloud Market 2019
Reference – IDC #US40709515
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Australia New Zealand Singapore Thailand Philippines Malaysia Indonesia
Microsoft SPLADicker Data, Ingram,
Insight, SoftwareOneDicker Data, Ingram ECS, Crayon ECS Exclusive Crayon Crayon
Redhat Exclusive Exclusive Exclusive Exclusive Exclusive
VMware Westcon Westcon Ingram Westcon, Comstor Westcon, Comstor
Citrix Exclusive Dicker Data Crayon
Intel Westcon Westcon
Trend Micro Exclusive Soft Solutions
Veeam Exclusive Westcon
Zimbra Exclusive Exclusive Software One Software One Software One Software One Software One
LiveTiles Exclusive Exclusive Exclusive Exclusive Exclusive Exclusive Exclusive
Microsoft LSP Multiple
SkyKick Multiple
Microsoft CSP 2-Tier Ingram Ingram, Crayon ECS WSI, Crayon Ingram, Crayon Crayon
vCloudAir
IBM Cloud, SoftLayerFor
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CAGR = 24.1%CAGR = 38.1%
IDC – #US40709515 Dec 2015IDC – #259066, Sept 2015
884 1,335 1,750 2,195 2,595 3,041776
1,363
2,063
2,925
3,991
5,289
2014 2015 2016 2017 2018 2019
APEJ - ODHPC APEJ - DHPC
APEJ hosted private cloud Services (On demand & dedicated), revenue usdm’s
1,660
2,698
3,813
5,120
6,586
8,330
1,909 2,288 2,713 3,208 3,762 4,387222293
357438
534646
1,4852,161
2,905
3,748
4,663
5,617
2014 2015 2016 2017 2018 2019
SaaS PaaS
APEJ PUBLIC CLOUD(BY SERVICE MODEL), revenue usdm’s
3,616
4,742
5,975
7,394
8,959
10,650
• Public and Private cloud revenue near parity
• Private cloud higher CAGR 22
Hosting private rhipe core revenue
Public cloud rhipe new revenue opportunity
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100
200
300
400
500
600
104.5157.6
223.5294
364.2444.2
535.9
25.5
39.4
58.8
82.2
114.4
149.2
184.7
21.5
35.3
52.8
78.3
108.2
143.2
178.5
18.7
33.2
50.1
69.8
93.7
120.6
149
16.4
25.5
36.1
48.5
62
77.4
94
0
200
400
600
800
1000
1200
2013 2014 2015 2016 2017 2018 2019
Hosted Private Cloud Revenue (USD)
Singapore Thailand Malaysia Indonesia Philippines
Source: IDC #AP250885
CAGR34%
41%
42%
39%
31%
Overall =
35.35%
• Strong CAGR across all
• General shift of share from Singapore
186.6
291.0
421.3
572.8
742.5
934.6
1,142.1 South East Asia growthCumulative partner agreements in SEA
FY13 FY14 FY15
Q1Q2 Q3
Q4Q1
Q2Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY16
Indonesia
Malaysia
Philippines
Singapore Thailand
ThailandApr 2013
MalaysiaFeb 2014
Singaporesince 2012
Indonesia Jul 2014
PhilippinesSep 2013
23
Q3
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Questions
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