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NZ Spotlight Sydney 28 September 2017
Contents Welcome and introduction …………………………………………………………….. 1 Programme ……………………………………………………………………………… 2 Company profiles ……………………………………………………………………..... 3 Pushpay Holdings ………...……………………………………………………… 4 Genesis Energy …………………………………………...………………………….. 5 AFT Pharmaceuticals ………………………………………………………………… 6 Turners Automotive Group …………………………………………………………... 7 Scott Technology ……………………………………………………………………... 8 Pacific Edge ……………….…………………………………………………………... 9 CricHQ ………………………………………………………………………………….. 10
Welcome Woodward Partners and NZX together welcome you to our inaugural NZ Spotlight investor day in Sydney. Today we are pleased to present to investors a selection of NZX-listed companies from a variety of different sectors. The companies presenting today have market caps of between NZ$180m and NZ$2.4bn. We are also pleased to be able to welcome unlisted company CricHQ, the world’s leading SaaS platform for cricket. Woodward Partners and NZX are each committed to supporting and growing New Zealand’s equity capital markets and our NZ Spotlight events provide a platform for New Zealand companies to raise their profile and communicate their investment case to Australian investors. About Woodward Partners Woodward Partners is an independent research house, institutional sharebroker and corporate advisor. Our strength is our senior team which comprises analysts, dealers and executives with many years of markets experience. Woodward Partners is committed to providing New Zealand-listed and unlisted companies and investors with the highest-quality investment research across different market sectors, including the small cap and mid cap segments of the New Zealand market. Woodward Partners Securities is an accredited NZX Advising Firm. Contacts: Neville Todd Simon Wilson DDI: +64 4 974 7381 DDI: +64 4 974 7382 Mob: +64 21 673 030 Mob: +64 21 562 015 neville.todd@woodwardpartners.co.nz simon.wilson@woodwardpartners.co.nz www.woodwardpartners.co.nz About NZX NZX operates the New Zealand capital markets, agricultural commodities and New Zealand energy markets. It provides the trading mechanisms and infrastructure, develops products and provides the data and information that drives trading activity. NZ Spotlight Investor Day | 28 September 2017 1
Conference Programme 12.30 Registration 12.55 Bloomberg & Woodward Partners introduction 1.00 – 1.30 Pushpay Holdings 1.30 – 2.00 Genesis Energy 2.00 – 2.30 AFT Pharmaceuticals 2.30 – 3.00 Turners Automotive Group 3.00 – 3.30 Afternoon tea 3.30 – 4.00 Scott Technology 4.00 – 4.30 Pacific Edge 4.30 – 5.00 CricHQ 5.00 Closing remarks – NZX 5.10pm Conference close, wine tasting and canapes NZ Spotlight Investor Day | 28 September 2017 2
Company Profiles NZ Spotlight Investor Day | 28 September 2017 3
TECHNOLOGY SECTOR Pushpay
NZX:PPH; ASX:PPH
Business description Keeping the faith
Pushpay provides engagement solutions that enable
meaningful connections and mobile commerce tools Strong growth but plenty more potential
that facilitate fast, secure non-point-of-sale payments.
Pushpay provides convenient, personalised and At 30 June 2017 Pushpay had 7,128 customers, almost all of which are
intuitive engagement and payment solutions to the US churches (97% of the customer base) which use Pushpay to engage
faith sector, not-for-profit organisations and education with their congregations and collect donations. The company added 2,637
providers. It is growing strongly in US churches which customers over the year to June, growth of nearly 60%, and 391 in the
form most of its customer base. June quarter. Customer growth has slowed somewhat as Pushpay
targets larger churches which have a longer sales cycle. Its US faith
NZX Profile as at 22 Sep 2017 sector penetration is only around 2%, so although growth has been very
NZX ticker PPH.NZ rapid, there is enormous further potential. Pushpay’s revenues are a
Price $/share 2.47 combination of subscription fees and volume fees. Subscription fees are
Market cap $m 676.7 based on the size of the customer organisation and volume fees are
Issued share capital m 274.0 based on transaction volumes, and include interchange fees which are
12-month average daily trading 000/day 123 collected by Pushpay on behalf of third parties such as Visa/MasterCard.
Share price performance Capital raising to support growth
$/share Vol m/day
In July 2017 Pushpay raised US$25m (NZ$35m) via a private placement
3.00 1.6 at NZ$1.51 per share. The new capital will be used to advance Pushpay’s
2.75 1.4 targeted sales strategy, with the objective to gain a greater share of the
2.50 1.2 medium and large church segments (>200 attendees), and to accelerate
the development of new products across apps, analytics and events.
2.25 1.0
Pushpay plans a US listing within the next 3 years.
2.00 0.8
1.75 0.6 Breakeven target now calendar 2018
1.50 0.4 Average revenue per customer was up 43% YoY in the latest quarter to
1.25 0.2 US$732 per month. Annualised committed monthly revenue (ACMR) was
US$62.6m pa in the June 2017 quarter, up by US$3.8m over the quarter
1.00 0.0
and US$35.1m YoY. Pushpay is targeting US$100m ACMR by March
Sep 16 Dec 16 Mar 17 Jun 17
PPH PPH vs NZX50 2018 and more than doubling revenue to at least US$70m in FY18. The
company expects to reach these targets through further development of
3 Mths 6 Mths 12 Mths 2 Yrs its product, direct sales, its referrals strategy, and through targeting
PPH +43.6% +28.6% -2.4% -2.4% customers that have existing relationships with Pushpay’s strategic
NZX50 +3.3% +10.7% +6.9% +37.7% channel partners and other distribution partners. Pushpay is still losing
PPH vs NZX50 +40.3% +18.0% -9.3% -40.0% money as it invests in growth, but it expects to reach monthly cashflow
breakeven before the end of the 2018 calendar year (a year later than its
Largest shareholders previous target) which should generate profits from FY20.
Christopher & Peter Huljich 24.9%
Christopher Heaslip 10.9% Financial performance history & outlook estimates
Eliot Crowther 9.7% 31 Mar years FY16A FY17A FY18F FY19F FY20F
Revenue $m 14.8 47.9 101.0 170.0 252.0
EBITDA $m -18.4 -31.6 -29.4 -3.2 39.7
NPAT adj $m -20.2 -35.7 -35.4 -13.6 19.4
EPS adj cps -9.0 -14.8 -14.0 -5.0 7.1
Analyst P/E adj x -27.4 -16.6 -17.6 -49.4 34.8
Guy Hallwright EV/EBITDA x -35.8 -20.8 -22.4 -206.8 16.6
+64 21 999 442 DPS cps n.a. n.a. n.a. n.a. n.a.
guy.hallwright@woodwardpartners.co.nz
Forecasts: Bloomberg consensus
Source: Woodward Partners, Bloomberg, company data
NZ Spotlight Investor Day | 28 September 2017 4ENERGY SECTOR Genesis Energy
NZX:GNE; ASX:GNE
Business description Yield + growth
Genesis is a large vertically integrated electricity
generator and retailer which was partly-privatised in Now truly fully vertically integrated
2014. As well as operating 1,640 MW of hydro, wind, gas
and coal capacity it has a customer base comprising On joining Genesis in May 2016 CEO Marc England tabled a vision of
505,000 electricity, gas and LPG customers making it “reimagining energy” across all of short, medium and long-term horizons.
NZ's largest energy retailer. It also holds a 46.0% stake Short-term the focus has been on refining its generation asset and
in the Kupe gas-condensate field and long-term operating models with the result that $15m of cost-out has been achieved
entitlement rights to all Kupe gas. since FY16 with a further $5-8m pa expected over the next four FYs.
Genesis’s longer-term strategy spans the full length of its supply chain
NZX Profile as at 22 Sep 2017 however it has been its leveraging of its existing cornerstone interest in
NZX ticker GNE.NZ the Kupe gas-condensate field that has attracted its most recent attention
Price $/share 2.40 and capital. Since 2QFY17 Genesis has completed two major Kupe-
Market cap $m 2,400.0 centric deals. The first saw Genesis acquire a further 15.0% stake in the
Issued share capital m 1,000.0 Kupe JV for $168m, taking Genesis to a 46.0% interest. The second saw
12-month average daily trading 000/day 663
Genesis spend $192m to acquire the retail LPG business of Nova Energy
Share price performance and with it 28 ktpa of LPG load across 35,000 customers. The Nova deal
serves to bridge what was previously a yawning gap in Genesis’s
$/share Vol m/day
operating model separating a very long upstream LPG and gas position
2.75 7
with very short downstream LPG and gas books. While it has taken nearly
2.50 6 a decade to resolve, Genesis is now strongly placed leading into the
2020s when each of the gas and LPG markets appear likely to tighten
2.25 5
significantly, which should work strongly to Genesis’s advantage.
2.00 4
1.75 3 Downstream targeting energy management
1.50 2 In its downstream business, the “reimagining energy” mantra is about
1.25 1 positioning Genesis as energy managers for customers rather than
energy suppliers to customers as households and businesses transition
1.00 0
towards taking greater control of their energy supply and demand
Sep 16 Dec 16 Mar 17 Jun 17
GNE GNE vs NZX50
decisions. Genesis is currently running a pilot programme (see
https://localenergyproject.co.nz/) to gauge customer engagement with
3 Mths 6 Mths 12 Mths 2 Yrs and reaction to micro-energy management tools and platforms.
GNE -3.2% +18.3% +14.8% +51.6%
NZX50 +3.3% +10.7% +6.9% +37.7% Clear path towards >$400m with Kupe to provide yield backbone
GNE vs NZX50 -6.5% +7.6% +7.9% +13.9%
Genesis has tabled a EBITDAF target band of $400-430m by FY21, up
from $333m in FY17. Of this earnings acquired with the Kupe and Nova
Largest shareholders
deals contributes $30-35m with the balance to come from growth in its
The Crown 52.0%
core energy business. Kupe is a key point of difference and will provide
important cash generation and longer-term dividend support.
Financial performance history & outlook estimates
30 Jun years FY16A FY17A FY18F FY19F FY20F
Revenue $m 2,011.3 1,951.1 2,105.9 2,129.9 2,184.0
EBITDA $m 335.3 332.5 352.9 371.0 427.6
NPAT adj $m 84.8 118.7 77.3 93.1 108.0
EPS adj cps 18.4 11.9 7.8 9.6 11.0
Analyst P/E adj x 13.1 20.3 30.9 25.1 21.9
John Kidd
EV/EBITDA x 10.9 11.0 10.3 9.8 8.5
+64 21 543 448
john.kidd@woodwardpartners.co.nz DPS cps 16.6 16.6 17.0 17.1 18.3
Forecasts: Woodward Partners, Bloomberg consensus
Source: Woodward Partners, Bloomberg, company data
NZ Spotlight Investor Day | 28 September 2017 5HEALTHCARE SECTOR AFT Pharmaceuticals
NZX:AFT; ASX:AFP
Business description It’s all about delivery
AFT Pharmaceuticals develops, markets and
distributes a broad range of pharmaceutical products, Maxigesic to drive growth
both proprietary and in-licensed, via over-the-counter,
prescription and hospital channels. 96% of AFT's Maxigesic is a paracetamol/ibuprofen painkiller at the clinically proven
FY17 sales were in Australia/NZ, but it plans to most effective combination, developed and patented by AFT. It has been
expand sales to 100+ countries over the next 4 years. launched in 8 countries with licence agreements in 112 countries and
negotiations under way for North America & the EU. Over the next 4
years phased launches of Maxigesic are planned in over 100 countries
NZX Profile as at 22 Sep 2017
including North America as registrations are completed. The company is
NZX ticker AFT.NZ
targeting 1/3 of these in FY2018; ¼ in FY2019, ¼ in FY2020 and the rest
Price $/share 2.25
Market cap in FY2021. Maxigesic sales more than tripled in FY17 to 74m tablets. In
$m 217.9
Issued share capital m 96.8 Australia, following recent TGA decisions, Maxigesic can now be
12-month average daily trading 000/day 7.6 advertised to consumers and displayed in pharmacies, and codeine
analgesics will become prescription-only from 1 February 2018. This is a
Share price performance major opportunity: Australian OTC codeine tablet sales are around 750m
$/share Vol m/day p.a. and research suggests 45% of these will move to an OTC alternative.
3.50 0.1
FY2018 growth programme
• Maxigesic products - complete remaining clinical studies; further
3.00 licensing agreements in larger markets including North America and
larger EU countries; launch Maxigesic in over 30 markets; add
additional dose forms to the initial launches to extend sales
2.50 • NasoSURF - complete first clinical trials and first Class IIA regulatory
filings; undertake first licensing negotiations
• Pascomer – commence clinical studies and licensing negotiations;
2.00 0.0 • Build Maxigesic market share in Australia and register and launch line
Sep 16 Dec 16 Mar 17 Jun 17 extensions. NZ revenue growth will be relatively flat in FY2018 and
AFT AFT vs NZX50
FY2019 due to AFT ceasing the distribution of beta-blocker Metoprolol
3 Mths 6 Mths 12 Mths Dec-15 during FY2018.
AFT -18.2% -19.6% -29.7% -19.5%
Forecasts
NZX50 +4.1% +7.9% +6.7% +6.9%
AFT vs NZX50 -22.3% -27.5% -36.4% -26.4% AFT is targeting break-even by FY2019 (possibly FY2018) from increased
higher-margin sales in Australia/NZ, increased licensing income from
Largest shareholders existing and new agreements in larger markets, and increased Maxigesic
Atkinson Family Trust 75.4% sales. Consensus forecasts expect +35% revenue growth in FY2018 and
Capital Royalty Partners 13.4% +29% in FY2019 and for the company to be profitable from FY2019.
Financial performance history & outlook estimates
31 Mar years FY16A FY17A FY18F FY19F FY20F
Revenue $m 64.0 69.2 93.2 120.5 154.5
EBITDA $m -8.4 -14.1 -2.0 12.5 27.9
NPAT adj $m -13.3 -18.4 -4.7 10.1 19.5
EPS adj cps -11.0 -19.0 -4.8 10.3 19.9
Analyst P/E adj x -20.5 -11.8 -46.9 21.8 11.3
Guy Hallwright EV/EBITDA x -26.9 -16.0 -115.0 18.0 8.1
+64 21 999 442 DPS cps 0.0 0.0 0.0 0.0 0.0
guy.hallwright@woodwardpartners.co.nz
Forecasts: Bloomberg consensus
Source: Woodward Partners, Bloomberg, company data
NZ Spotlight Investor Day | 28 September 2017 6SERVICES SECTOR Turners Automotive Group
NZX:TRA; ASX:TRA
Business description Firing on all cylinders
Turners is an integrated automotive financial services
group centred on auto retailing, vehicle finance and
Growth a priority
insurance. The group was formed in 2014 when
Dorchester Pacific acquired Turners Auctions, and Growth remains a priority for Turners, and the company anticipates
has since acquired several finance and insurance another year of strong growth in FY18 as it looks to build market share
operations, Buy Right Cars and Autosure. and integrates recent acquisitions. A number of M&A opportunities are
under consideration in the fragmented automotive market, and the
NZX Profile as at 22 Sep 2017 company is also seeking further organic growth opportunities (recent
NZX ticker TRA.NZ examples include the Cartopia online retail channel and the MTF non-
Price $/share 3.25 recourse finance partnership). Other FY18 targets include expanding the
Market cap $m 269.8 Trucks and Machinery site network, developing a bundled approach to
Issued share capital m 83.0 finance and insurance, combining the finance entities into a single
12-month average daily trading 000/day 95
business under the Oxford brand, and building on existing servicing and
Share price performance maintenance capability. A foreign-exempt compliance listing on the ASX
in July 2017 will increase access to capital to support the growth
$/share Vol m/day
strategies.
4.00 0.4
3.80
3.60 FY17 result – driven by automotive retail
0.3
3.40 Turners’ FY17 NPAT was up 13% to $17.6m; pretax profit was up 14% to
3.20 $24.6m, slightly ahead of guidance. Recent acquisitions, growth in
3.00 0.2 automotive retail, and growth in the finance and insurance books boosted
2.80 revenue growth to 48%, with an increasing percentage of annuity income
2.60
0.1 from finance and insurance contracts. Most of the profit growth came from
2.40
automotive retail, and most of that was finance growth and the Buy Right
2.20
Cars (BRC) acquisition. BRC contributed $3.1m for 8 months and is
2.00 0.0
tracking about 10% above expectations, with finance origination into the
Sep 16 Dec 16 Mar 17 Jun 17
TRA TRA vs NZX50 Turners group picking up. The Autosure Insurance business was
transferred to Turners at the start of this FY and is expected to contribute
3 Mths 6 Mths 12 Mths 2 Yrs $3.5m in FY18 (after amortisation). Over $26m in MTF non-recourse
TRA -11.0% -6.2% +6.9% +8.3% loans have been written since the December 2016 launch, which will
NZX50 +3.3% +10.7% +6.9% +37.7% contribute positively to FY18 earnings.
TRA vs NZX50 -14.4% -16.9% +0.0% -29.4%
Largest shareholders FY18 outlook positive
The Business Bakery & interests 14.7% We expect Turners’ FY18 (March year) pretax profit to grow by about
Salt Funds Mgmt 9.2% 30% to around $32m. This is around 10% growth on FY17 excluding the
Bartel Holdings 8.1%
BRC part-year contribution, plus a full year of BRC ($4.8-5m) and
Harrigens Trustees Ltd 8.1%
Autosure ($3.5m), and is in line with company expectations.
Milford Funds 7.0%
Financial performance history & outlook estimates
31 Mar years FY15A FY16A FY17F FY18F FY19F
Revenue $m 90.2 171.7 234.0 302.0 325.0
EBITDA $m 20.2 35.1 30.8 40.2 44.7
NPAT adj $m 18.1 15.6 17.4 22.9 26.4
EPS adj cps 33.0 25.0 25.0 31.0 34.5
Analyst P/E adj x 11.7 15.4 15.4 12.5 11.2
Guy Hallwright
EV/EBITDA x 13.9 8.0 9.1 7.0 6.3
+64 21 999 442
guy.hallwright@woodwardpartners.co.nz DPS cps 10.0 13.0 14.0 16.5 18.5
Forecasts: Woodward Partners, company outlook comments
Source: Woodward Partners, Bloomberg, company data
NZ Spotlight Investor Day | 28 September 2017 7INDUSTRIALS SECTOR Scott Technology
NZX:SCT
Business description Transformers
Scott Technology is an NZ-based engineering
company specialising in the design and manufacture Growth through acquisition and new technologies
of advanced automated production and process
machinery, particularly for the meat processing and Scott continues to expand operations through acquisitions as well as
mining industries globally, with these two industries strong organic growth underpinned by an ongoing commitment to R&D to
recently contributing more than 50% of annual sales. bring new products to existing markets and develop new technologies for
new applications. Revenues from all of the company’s target industries
are growing strongly, with last year’s largest increase coming from the
NZX Profile as at 22 Sep 2017
meat processing sector (+256%). Scott’s 1H17 pretax profit for the six
NZX ticker SCT.NZ
Price months to February 2017 was $4.2m, up 50% on the prior 1H, on
$/share 2.99
Market cap $m 223.3 revenues up 32% (reversing last year’s margin decline which resulted
Issued share capital m 74.7 from increased lower-margin contract work).
12-month average daily trading 000/day 30
Operational update for 1H17
Share price performance
In 1H17 Australasian sales were up 34%, mainly through a series of
$/share Vol m/day repeat builds for the food and industrial automation industries, but the
3.50 0.50 Australasian segment also benefited from the purchase of the BladeStop
bandsaw safety technology in October 2016. In the Americas, RobotWorx
3.00 0.40 is experiencing reduced availability of robots for refurbishment, but the
company sees potential for BladeStop bandsaw sales in the US. Scott’s
2.50 0.30 European manufacturing was expanded in 2H16 through the $0.88m
acquisition of the assets of a German equipment supplier to the appliance
2.00 0.20 industry, but development of this market will be a longer-term project.
1.50 0.10 Outlook positive
The changing global manufacturing environment is driving increasing
1.00 0.00 demand for Scott’s skills, technology and equipment. Acquisitions to
Sep 16 Dec 16 Mar 17 Jun 17 Sep 17
further drive strategic growth are being evaluated, but will only be
SCT SCT vs NZX50
undertaken where there are strong value propositions. The company’s
3 Mths 6 Mths 12 Mths 2 Yrs meat processing technology is now seeing good uptake in both Australia
and New Zealand, with strong demand to adapt the technology to other
SCT +7.1% +20.1% +49.2% +51%
species, including beef and pork, which is under way. Near term growth is
NZX50 +2.3% +8.5% +6.7% +36.9%
SCT vs NZX50 +4.9% +11.6% +42.5% +14% expected to come mainly from the Meat Processing and Mining sectors
where new products are already being commercialised. In the medium
Largest shareholders term the company’s commitment to R&D in areas such as automated
JBS Australia 50.1% guided vehicles and mobile robotics is expected to drive growth in the
Oakwood Securities 7.4% wider Industrial Automation sector.
Financial performance history & outlook estimates
31 Aug years FY15A FY16A FY17F FY18F FY19F
Revenue $m 72.3 112.0 135.5 160.7 184.4
EBITDA $m 7.7 13.8 15.5 17.8 20.8
NPAT adj $m 6.2 7.5 9.7 11.4 13.4
EPS adj cps 9.6 14.9 12.9 15.3 18.0
P/E adj x 31.1 20.1 23.2 19.5 16.6
Analyst
Guy Hallwright EV/EBITDA x 24.6 13.7 12.2 10.6 9.1
+64 21 999 442 DPS cps 8.0 9.5 9.5 9.5 11.0
guy.hallwright@woodwardpartners.co.nz
Forecasts: Woodward Partners
Source: Woodward Partners, Bloomberg, company data
NZ Spotlight Investor Day | 28 September 2017 8HEALTHCARE SECTOR Pacific Edge
NZX:PEB
Business description Stage set for a tipping point
PEB is a cancer diagnostic company with four
proprietary, molecular-based tests for the detection Sales momentum to arrive from transformational customers
and management of urothelial cancer. The company’s
products have been tested and validated in numerous An announcement in the next few months regarding the commercial
international multi-centre clinical studies. PEB arrangements with Kaiser Permanente (the world’s largest integrated care
operates two CLIA-certified laboratories. provider) will be an important catalyst for PEB’s share price. Sales
momentum across the Veterans Association and Tricare networks should
NZX Profile as at 22 Sep 2017 also become established. Our expectation is for Kaiser Permanente to be
NZX ticker PEB.NZ at least a NZ$25m per annum account within three years while the VA will
Price $/share 0.45 become a NZ$65m per annum account within five years.
Market cap $m 179.9
Issued share capital m 399.7 Research continues to validate test utility
12-month average daily trading 000/day 190
Three high profile research publications have appeared in the past six
Share price performance
months profiling the clinical effectiveness of the Cxbladder tests. One
$/share Vol m/day paper concluded Cxbladder “significantly outperformed all compared FDA
0.65 2.5 approved urine-based monitoring tests, as well as cytology”. A
0.60 forthcoming paper covering the successful Kaiser study will add further
0.55 2.0 weight to this evidence.
0.50 World-first departures from incumbent testing protocols
1.5
0.45
0.40 Waitemata, Canterbury and MidCentral DHB’s have set important
1.0 precedents – Waitemata will use Cxbladder Monitor to replace
0.35
cystoscopy for all low risk patients, Canterbury will use Cxbladder Triage
0.30 0.5 to replace cytology and MidCentral will use all CxBladder tests across
0.25
their clinical pathway. All three are world-first departures from incumbent
0.20 0.0 testing protocols and guidelines. Adoption by Kaiser Permanente will
Sep 16 Dec 16 Mar 17 Jun 17 represent another crucial step toward changing long established and
PEB PEB vs NZX50
entrenched clinical practices.
3 Mths 6 Mths 12 Mths Dec-15
Outlook - step-change expected in earnings
PEB -8.2% -22.4% -8.2% -8.2%
NZX50 +4.1% +7.9% +6.7% +6.9%
We expect test adoption across Kaiser, VA and Tricare to get established
PEB vs NZX50 -12.3% -30.3% -14.8% -15.0%
during FY18. This will set up FY19 and FY20 for a step change in
Largest shareholders earnings with revenue forecasts of $46m and $86m respectively and
EBITDA forecasts of $10m and $39m respectively.
Harbour Asset Management 12.1%
Salt Funds Management 10.6%
Westpac Banking Corporation 9.1% Financial performance history & outlook estimates
AMP Capital Investors 5.0% 31 Mar years FY16A FY17A FY18F FY19F FY20F
Revenue $m 6.4 9.2 22.1 45.6 86.4
EBITDA $m -16.0 -14.6 -6.9 9.5 39.2
NPAT adj $m -15.5 -14.9 -7.2 9.3 34.6
EPS adj cps -4.2 -3.8 -1.7 2.4 8.7
P/E adj x -10.7 -11.8 -26.5 18.8 5.2
Analyst EV/EBITDA x -10.3 -11.3 -24.0 17.4 4.2
Ian Graham DPS cps 0.0 0.0 0.0 0.0 0.0
+64 21 460 502
ian.graham@woodwardpartners.co.nz Forecasts: Woodward Partners
Source: Woodward Partners, Bloomberg, company data
NZ Spotlight Investor Day | 28 September 2017 9SPORTSTECH CricHQ
Unlisted
Invest in cricket’s digital revolution
• CricHQ is the world’s leading SaaS platform for cricket - the world’s
second largest sport.
• The Company’s digital platform has been developed over the past 7
years with $23m of capital invested to date.
• Cricket organisations and administrators have not kept up with
technology, which has created a global market opportunity for CricHQ.
• The Company is uniquely positioned to benefit from the technological
advancements now happening in cricket administration and fan
engagement globally.
• CricHQ is currently capturing 10% of the world’s cricket data and
content.
• The company has a large total addressable market of 214k cricket
organisations and 500m online cricket fans and players.
• The global sports analytics market is forecast to grow at a CAGR of
57% during 2017-2021*
• The increased adoption of SaaS-based sports software is identified as
one of the primary growth drivers for the global sports analytics
market.
• CricHQ’s platform success has given the company ownership of the
data, content and community within global cricket.
• The company’s strategic focus has now shifted to monetising it’s
platform success by targeting the more than 500m online cricket fans
and players globally, through platform developments, global marketing
and joint venture initiatives with strategic partners.
• CricHQ has an internationally renowned team (with more than 20
international cricketers as shareholders and Kevin Roberts as
Chairman and shareholder) with a combined social media reach of
15m cricket fans.
• CricHQ is raising $25m of new equity to accelerate its growth at a pre-
money valuation of NZ$47m.
• The pre-money valuation of $47m equates to 3.2x the Company’s
forecast revenue of $14.5m in FY19.
NZ Spotlight Investor Day | 28 September 2017
10Disclosures and Disclaimers The report has been prepared and issued by Woodward Partners Securities Limited (Woodward Partners). The information, analysis and views in this report are for class advice purposes only and do not constitute personalised advice (whether of an investment, legal, tax, accounting or other nature) to any person, and may not be suitable for all investors. Bef ore making an investment decision on the basis of the information, analysis and views expressed in this report investors should consider whether the information, views and analysis are appropriate in light of their particular investment needs, objectives and financial circumstances. This report has been prepared in good faith based on public information obtained from sources believed to be accurate, reliab le and complete as at the date of the publication. However, its accuracy and completeness is not guaranteed. Woodward Partners does not, and cannot, make any representations or warranty (expressed or implied) that the information is accurate, complete or current, and Woodward Partners excludes and disclaims (to the full ext ent permitted by law) any liability or responsibility for any loss which may be incurred by any person as a result of that information, including any loss of profit or any other damage, direct or consequential. Woodward Partners is under no obligation to update or keep current any of the information in this publication. Woodward Partners, its employees and persons associated with Woodward Partners may have held or hold securities mentioned in this publication (or related securities). Woodward Partners may perform services or solicit business from any of the companies listed in this report. This publication is intended for distribution only to clients of Woodward Partners in New Zealand and other jurisdictions to whom, under relevant law, this publication lawfully may be distributed. The report is not to be distributed to any persons in any jurisdiction where doing so would constitute a breach of laws or regulations. Woodward Partners is an accredited NZX Firm. Copyright © Woodward Partners Securities Limited 2017. All rights reserved.
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