ASX Small and Mid Cap Conference Presentation

1
Serko Limited
ASX Small and Mid Cap Conference, 6 September 2018

2
CEO PRESENTATION
Darrin Grafton
Chief Executive Officer

3
PRESENTATION OUTLINE
•About Serko
•Strategy Overview
•FY18 Results Overview
•Investment Proposition Summary

4
For further information refer to Serko’s website www.serko.comand its 2018 Annual Report which can be found under Investor Centre.
ABOUT SERKO
•Serko provides innovative cloud based corporate travel and expense technology solutions.
•Our purpose is to transform the way businesses manage travel and expenses.
•Founded in 2007 by myself, Darrin Grafton and my fellow co-founder, Robert Shaw.
•Listed on the New Zealand stock exchange in June 2014
•Listed as a Foreign Exempt Listing on the Australian Securities Exchange – June 2018. Serko trades under the ticker ‘SKO’.
•Serko is headquartered in New Zealand and employs more than 140 people worldwide including offices in Australia, United
States and China and India.

5
From $1.10 at IPO (June 2014) to a low 25c (April 2017) to NZX top performing stock for 2018
SKO – NZX top performing stock for 2018

6
Serko is a leading supplier of technology solutions for Travel Management Companies (TMCs) in Australasia
and is now expanding into Northern Hemisphere markets with signed global supply arrangements.

7
Our Products
6

8
THE CONNECTED TRAVELLER
Zeno is a single application to manage travel across every phase of the journey

9
COMMERCIAL MODEL
Recurring revenue split
$
Corporate traveller
makes a booking via
Serko Online/Zeno
Booking and other fees
Year ended 31 March
2018
Travel platform booking revenue
Expense platform revenue
Supplier commissions revenue
Other revenue
13,283
1,539
1,125
334
Recurring Product Revenue
16,443
Services revenue
1,835
Total Revenue
$18,279
$
Traveller books hotel
or taxi
Supplier commission
$
Traveller downloads
and uses Serko Mobile
Mobile subscription
$
Traveller submits
receipts using Serko
Expense/Zeno
Monthly user fee
AdditionalServices
Services Revenue
$

10
OUR
STRATEGY
ARPB : Average Revenue Per Booking is a non-GAAP measure.

11
GROWTH PATHWAYS
•Serko is still gaining domestic volume through new TMCs as
well as new corporates coming on to existing TMCs
•Targeting run forward bookings of 5 million by 31 March 2019
•International growth opportunities are very significant
•Activating these opportunities this year
•Building to double volumes and increase revenues to $100M

12
STRONG TRACK RECORD OF GROWTH
Total revenue growth (%)
Revenue growth – Serko Online (%)
Operating costs (excl depreciation & amortisation) (% change)
No of transactions (indexed, where FY13=100)
Transaction growth (%)
Recurring product revenue as % total revenue
Employees (number at end of year)
Average revenue per FTE (NZ$000)
Research & development costs - expense and capex (NZ$000)
Annualised transactional monthly revenue (ATMR) (NZ$m)
Selected Operational Metrics
27%
41%
35%
100
35%
84%
47
119
2,340
*
FY13
39%
12%
62%
123
23%
71%
87
100
3,387
*
FY14
55%
62%
105%
179
45%
80%
133
94
5,762
*
FY15
27%
49%
13%
275
54%
93%
127
101
6,268
11.2
FY16
9%
8%
(10%)
326
18%
91%
108
122
5,836
15.3
FY17
28%
23%
(5%)
390
20%
90%
106
170
4,906
18.4
FY18
* indicates not previous measured or reported.

13

14

15
OUTLOOK FY19
GROWTH IN OPERATING REVENUE EXPECTED
TO BE IN 20-30% RANGE
FY19 EBITDA PROFIT EXPECTED TO BE IN
LINE WITH FY18

16
SUMMARY
•SaaS based business with high recurring revenue which can
achieve economies of scale and good profit margins
•Successful in its home markets of Australia and New Zealand
•Large opportunity to expand into new territories
•Serko has had strong growth and remains focused on
continued revenue growth

17
DEFINITIONS
•ATMR (Annualised Transactional Monthly Revenue) is a non-GAAP measure. Serko uses this as a useful indicator of recurring revenues from Serko
products. It is calculated by annualising the combination travel and expense platform monthly revenues for the most recent non-seasonal month. The
travel platform revenue is annualised by taking the monthly online booking transactions divided by the number of weekdays for that month multiplied by
the average year to date ARPB and multiplied by 260 days. The expense platform revenue is based on the monthly revenue from active users multiplied
by 12 months.
•ARPB (Average Revenue Per Booking) is a non-GAAP measure. Serko uses this as a useful indicator of the combined value from transactional booking
fees and the supplier commissions earned from the travel platform. It is calculated by taking total travel platform booking revenue and supplier
commission revenue divided by the total number of bookings.
•Recurring product revenue (a non-GAAP measure) is the recurring revenue derived from transactions and usage of Serko products by contracted
customers. It excludes revenues from customised software development.
•R&D (Research & Development) costs is a non-GAAP measure representing the internal and external costs related to R&D both expensed and
capitalised.
•Operating Costs is a non-GAAP measure which excludes costs relating to taxation, interest, depreciation, and amortisation charges.
•EBITDA is a non-GAAP measure representing Earnings Before the deduction of costs relating to Interest, Taxation, Depreciation and Amortisation.
•FTE = Full time equivalent employee .

18
IMPORTANT NOTE
This presentation is given on behalf of Serko Limited. Information in this presentation:
•is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in Serko Limited;
•should be read in conjunction with, and is subject to, Serko’s Annual Report, market releases and information published on Serko’s website (www.serko.com);
•includes forward-looking statements about Serko and the environment in which Serko operates, which are subject to uncertainties and contingencies outside of Serko’s
control – Serko’s actual results or performance may differ materially from these statements;
•includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance; and may contain information from third-parties
believed to be reliable; however, no representations or warranties are made as to the accuracy or completeness of such information.
•Non-GAAP financial information does not have a standardised meaning prescribed by GAAP and therefore may not be comparable to similar financial information presented
by other entities. The non-GAAP financial information included in this release has not been subject to review by the auditors. Non-GAAP measures are used by management
to monitor the business and are useful to provide investors to access business performance.
All information in this presentation is current at the date of this presentation, unless otherwise stated. All currency amounts are in NZ dollars unless stated otherwise.