Coffee Microcaps Presentation - Knosys · telecommunications and telematics. Stephen Kerr Chief Financial Officer Stephen Kerr (BCom, CA, FGIA) has held the role of CFO and Company

Coffee Microcaps PresentationOctober 2019 ASX:KNO

1Commercial In Confidence © Knosys Limited 2019

Disclaimer• The information contained in this presentation has

been prepared by Knosys Limited

• The information in this presentation is an overview

and does not contain all information necessary for

investment decisions. In making investment decisions

in connection with any acquisition of securities,

investors should rely on their own examination and

consult their own legal, business and/or financial

advisers.

• This presentation is not an offer, invitation, solicitation

or other recommendation with respect to the

subscription for, purchase or sale of any securities in

the Company. This presentation has been made

available for information purposes only and does not

constitute a prospectus, short form prospectus, profile

statement or offer information statement. This

presentation is not subject to the disclosure

requirements affecting disclosure documents under

Chapter 6D of the Corporations Act 2001 (Cth). The

information in this presentation may not be complete

and may be changed, modified or amended at any time

by the Company, and is not intended to, and does not,

constitute representations and warranties of the

Company.

• The Company does not have a significant

operating history on which to base an

evaluation of its business and prospects.

Therefore, the information contained in

this presentation is inherently speculative.

• The information contained in this presentation is

strictly confidential and you must not disclose it to any

other person. While the information contained in this

presentation has been prepared in good faith, neither

the Company or any of its directors, officers, agents,

employees or advisors give any representation or

warranty, express or implied, as to the fairness,

accuracy, completeness or correctness of the

information, opinions and conclusions contained in this

presentation. Accordingly, to the maximum extent

permitted by law, none of the Company, its directors,

employees or agents, advisers, nor any other person

accepts any liability whether direct or indirect, express

or limited, contractual, tortuous, statutory or

otherwise, in respect of, the accuracy or completeness

of the information or for any of the opinions contained

in this presentation or for any errors, omissions or

misstatements or for any loss, howsoever arising, from

the use of this presentation.

• This presentation may contain statements that may be

deemed “forward looking statements”. Forward risks,

uncertainties and other factors, many of which are

outside the control of the Company can cause actual

results to differ materially from such statements.

Such risks and uncertainties include, but are not limited

to, commercialisation, technology, third party service

provider reliance, competition and development

timeframes; limited operating history and acquisition

and retention of customers; reliance on key personnel;

maintenance of key business partner relationships;

brand establishment and maintenance; the Company’s

products may contain programming errors, which could

harm its brand and operating results; competition;

changes in technology; data loss, theft or corruption;

security breaches; liquidity and realisation; and

additional requirements for capital.

• The Company makes no undertaking to update or

revise such statements, but has made every

endeavour to ensure that they are fair and

reasonable at the time of making the presentation.

• Investors are cautioned that any forward-looking

statements are not guarantees of future performance

and that actual results or developments may differ

materially from those projected in any forward-

looking statements made.

Commercial In Confidence © Knosys Limited 2019 2

Commercial In Confidence © Knosys Limited 2019

Knosys is a fast-growing Australian SaaS software

company that is simplifying knowledge

management to improve the productivity of

employees and drive improved customer

experiences.

$0.099At 7 Oct 2019

Mkt. Cap.A$14.2m

At 7 Oct 2019

Key information:

20 staff

MelbourneSydneySingapore

40,430 licenses

APAC

$2.9m July 19(ARR)

3


Investor Highlights

4

Strong growth in recurring revenue

Experienced management and

board

Expanding saleschannels and

regions

Cloud focused SaaSplatform

Growth through acquisitions

• Recurring revenue increased by 71% to $2.5m in FY19

• Customer contracts typically 3-5 years

• On the path to operating EBITDA profitability

• Stable management team with strong track record of execution

• Executives invested in the company and incentives aligned to growth

• Co-sell partnership with Microsoft for global sales

• Gold Partner status with Microsoft for Azure Cloud services

• New sales office in Singapore

• Launch of KIQ Cloud service in FY19

• Platform optimized for enterprise and mid-market customers

• Interoperability with third party applications

• Actively seeking complementary technology or/and customer list

• Expertise in acquisition integrations

• Outsourced advisor to identify opportunities


Knowledge Management – Market Segmentation

5

Knowledge Management

Systems(eg. software

solutions) 34%

Knowledge Management

Processes(eg. BPM, consulting

services)25%

Knowledge Management Infrastructure(eg. storage and content platforms)41%

$33B

Forecast size of global Knowledge Management market in 2023

12% CAGR

Forecast growth of global Knowledge Management market from 2019 to 2023

Source: Global Knowledge Management Market : Zion Market Research 2019

21% CAGR

Forecast growth of large enterprise segment by 2025


Current challenges for organisations

6

Productivity - Employees are spending too much time looking for information

Compliance – delivering the most up to date information and approved answers to customers

Customer Engagement – single source of truth delivered through all the digital channels


Why Knowledge Management?

• Keep information up to date and easy to find

• Onboard new employees quickly

• Keep organisational continuity

• Enable customers to help themselves

7

Knowledge management is the process of identifying, gathering,

storing, evaluating and sharing all of the valuable information

organizations create in their day-to-day operations. It involves

capturing information and documenting it in an easy to understand

format, like step by step written articles, videos or images.

Knowledge is integral to every organisation.


What is the Knosys solution?

• Omnichannel platform

• Instant access to accurate answers

• Personalised formats for authorized users

• Flexible but strong information governance is at the core

• Data that evolves - gets smarter each time you use it

• Single source of truth

8

Knosys provides context and meaning to large volumesof unstructured content and data – turning information into actionable knowledge


KIQ Cloud is a cloud-based, omni-channel knowledge management solution designed to simplify, centralise and organise the sharing of knowledge.

KIQ Cloud makes it easy for teams and individuals to find the right information, exactly when they need it, and provides direction for workflows, processes and compliance.

The platform is perfect for businesses that operate customer contact centres, service desks, frontline offices or online self-service channels.

9

Who uses KIQ?

Tony – Knowledge Manager of Consumer Products for a large

telco

Melissa – Head of Retail Branches for a large bank

Lisa –Contact Centre Manager for a large utility

10

“Last week, there was an unexpected power outage and we received a high volume of inbound calls asking about the problem. We used KIQ to provide our customers with real time information on this issue and to ensure that this information was continually updated. KIQ significantly reduces the length of our calls and time to resolution.”

“When a new customer walks into one of our retail branches and they ask about our latest credit card deals, then we use KIQ to access all the latest offers on our system. This information is constantly changing, so it is really important that we have a single source of truth to ensure a consistent and superior customer service experience for our customers.”

“We recently launched our new 5G mobile product, and we used KIQ to manage all our internal communications with different teams, including the sales teams and retail stores, to ensure the consistency of information. We also used KIQ’s tracking and quizzes features for governance purposes to ensure that all staff have read and understood this new information.”

Industry Agnostic Solution

Knosys' Target Market:

• Companies in highly regulated industries

• Companies with information that is highly

dynamic and changes frequently

• Companies with large quantities of

pre-existing information

• Companies that engage with customers

through frontline and digital channels

Existing Sectors Emerging Sectors

Banking & Financial Services

Legal/Gov’t Services

Telecommunications

Utilities

Health

Insurance

11


Market Adoption

12

Commercial In Confidence © Knosys Limited 2019 13

$M FY19 FY18 % change

Recurring Revenue 2.5 1.5 up 71%

TOTAL REVENUE 3.6 3.2 up 12%

Licensed user base 40,430 29,900 up 35%

NPAT loss 0.77 0.81 up 4%

Cash balance 4.1* 1.1

*Cash balance as at 31 July 2019

In FY19, significant progress was made on the strategic

objectives to diversify revenue through:

• new product development;

• new channel partnerships and;

• geographic expansion.

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

FY16 FY17 FY18 FY19 Jul'19 annualrun rate

Annual Recurring Revenue

FY16

FY17

FY18

FY 19

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

No

Lic

en

ces

Financial Year

Knosys Licensed Users

FY19 Results Overview

Strong Leadership Team

John ThompsonManaging Director

John Thompson (BEng Hons, MBA) has held the role of CEO since 18 July2016. Mr. Thompson brings a wealth of leadership experience having worked for more than 20 years at the helm of private equity and listed technology companies. Most recently, MrThompson was CEO of Sigtec (PE backed), and MD of Wavenet International (ASX).

Alan StockdaleChairman

Alan has developed a career as a company Chairman and director of a number of ASX-listed companies and of various unlisted companies and not- for-profit organisations. He has been Chairman of Axon Instruments Inc (incorporated in the USA and listed on the ASX), Symex Holdings, Senetas and a director of Marriner Financial.

Nic PassmoreChief Technology Officer

Nic Passmore has lead the Knosys’ technology strategy since August 2016. Prior to that, Nic was the driving force behind the success of companiessuch as Sigtec and Mextrixa, and within several industries including enterprise applications,telecommunications and telematics.

Stephen KerrChief Financial Officer

Stephen Kerr (BCom, CA, FGIA) has held the role of CFO and Company Secretary since July 2015. Stephen Kerr is a qualified chartered accountant and chartered companysecretary. He is an experienced CFO and governance professional, having held senior finance positions in private and publicly listed company’s such as AUSDOC, Freightways, Linius, Avexa and Sigtec.



Expanded regional presence

Partnerships and channels

Greater usage from existing

customers

New customers in existing

markets

Growth through acquisitions

FY19:initiativesimplemented

✓ Sydney sales office opened

✓ Singapore sales office opened

✓ Microsoft Gold Partner

✓ Qualified as ‘co-sell’ ready

✓ Simplified onboarding

✓ High retention for Enterprise

✓ Regular upgrades and increasing functionality

✓KIQ Cloud targetmid-market customers

✓ Exploringcomplementary technology and/or customers

✓ Focus on earnings accretive acqs

FY20: growth strategy

• Leverage existing customers to drive growth in APAC sales

• Continued investment in channel partnerships to drive sales

• Regular upgrades and increasing functionality

• Focus on customer service

• Continue sales push in mid-market

• Engagement of partner to identify relevant opportunities

Executing on our growth strategy

15


Investor Highlights

16

Strong growth in recurring revenue

Experienced management and

board

Expanding saleschannels and

regions

Cloud focused KM platform

Potential growth through acquisitions

Managing DirectorJohn ThompsonEmail: [email protected]

CFOStephen KerrEmail: [email protected]

Head OfficeLevel 831 Queen St, MelbourneVictoria, Australia 3000


mailto:[email protected]

mailto:[email protected]

Documents

Coffee Microcaps Presentation - Knosys · telecommunications and telematics. Stephen Kerr Chief Financial Officer Stephen Kerr (BCom, CA, FGIA) has held the role of CFO and Company