Annual Meeting of Shareholders Presentations

www.gentrack.com
GTK ANNUAL
MEETING 2019
26 February 2019

Introductions
John Clifford
Chairman (2007)
Directors
Andy Coupe
Non-executive Director
(2014)
Leigh Warren
Non-executive Director
(2008)
Graham Shaw
Non-executive Director
(2014)
James Docking
Non-executive Director
(2016)
Ian Black
CEO (2016)
Key Executives
Tim Bluett
CFO (2018)
Jon Kershaw
Company Secretary (2014)
Nick Luckock
Non-executive Director
(2018)
2

•CEO’s Report on FY18
•Strategy and Outlook
•Formal Business
•Questions/General Business
•Refreshments and Networking
Agenda
3

* All figures as at 13February 2019
Shareholder breakdown
NUMBER OF
SHAREHOLDERS - ALL
Up 13.8%
4,045
HOLDING OF TOP
20 SHAREHOLDERS
68.8%
HOLDING DIRECTORS
AND OFFICERS
16.4%
SHAREHOLDERS
WITH5%+
4
Shares - % held by region
1.04
4
NUMBER OF
SHAREHOLDERS -
STAFF AND DIRECTORS
116

Gentrack delivers software solutions which are
deeply embedded and mission critical.
We enable over 220 utilities and airports in 30
countries to lower service costs and drive innovation
delivering enhanced customer service.
EXPERTISE AND PASSION
Enterprise software for
utilities and airports
5

FY18 Financial Highlights
REVENUE
EBITDA
DIVIDEND
$104.5m
Up 39%
$31.0m
Up 30%
N PAT
$13.9m
Up 17%
13.7cps
Full year**
Up37%
Excluding acquisitions*
Up26%
Excluding acquisitions*
* Evolve Analytics acquired in June 2018
** Final dividend 8.7cps
*** Based on the closing share price on 14February 2019 of NZ$5.15
FREE CASHFLOW
85%
Pre-tax as a %
of EBITDA
137%
since 2014
IPO
***
TOTA L
SHAREHOLDER RETURNS
6

FY18 Highlights
7

8
Growth since IPO (2014)
CAGR EBITDA
c.24%
FY17 comparison:
•UK: up 107%
•Rest of World: up 105%
•Australia: down 4%
•New Zealand: down 9%
FY18 Revenue by Region ($NZm)

Growing recurring revenues
9
* Total includes Other revenues
Utilities
Airports
Licence Revenue
up 67%
on FY17
Annual Fees
up 86%
on FY17
Licence Revenue
up 80%
on FY17
Annual Fees
up 64%
on FY17
Annual Recurring Revenue
up 49%
on FY17
Annual Recurring Revenue
Up 50%
on FY17
Total*:
$63.5m$85.1m
Total*: $11.7m$19.4m
Annual
Recurring
Revenue
(ARR)
Annual
Recurring
Revenue
(ARR)

UK – growth opportunity
•Current market share
–47% of all energy suppliers
–11% of the household energy market by meters
–40% of non-household water market by meters
–Growing business with 4 of ‘Big 6’ energy suppliers
•Expansion of Evolve solution across customer base
•Introduction of a Gentrack Market Connector solution, a
£20m+ p.a. UK market opportunity
•Growth into core customer base of ‘Big 6’ – industry disruption
10

Evolve Analytics acquisition – tracking ahead of expectations
11
•Acquired in June 2018 for £23.0m (NZ$44.9m)
•SaaS solution provider to the UK energy sector
•Specialises in the identification and correction of meter dataerrors, and reconciliation
ofenergy and network settlement
•SaaS based solution and services improve revenue collection and cost control, which is
complementary to our core billing and customer engagement solutions
•Clear opportunity to cross sell into all our existing UK customers and to bring the
solution and service to Australia and New Zealand

Airports
12
•Launched Veovo branding and an integrated solution
across Airport 20/20, Blip and CA+
•Established US team to pursue large market opportunity
•New wins – Belfast, Jersey and Orlando Airports
•Launched BlipTrack Vision – a smart camera enabled passenger
tracking solution
•CA+ expanded into Middle East with key projects
•The CA+ earn out due in February 2020 will not be triggered as
profits have fallen short of the vendor’s forecasts. We have
written down the goodwill associated with the earn out
(NZ$3.98m), and written back the earn out liability (NZ$3.84m)

Asian opportunity
•Established operations in Singapore and deployed
software to 3 energy suppliers as Singapore introduced
competition
•Monitoring energy market deregulation and retail
competition in other Asian markets
•Major markets are already liberalising - China and Japan
•Other countries are planning deregulation - Korea,
Malaysia, Philippines
•Significant changes expected over the next 3-10 years as
energy retail competition opens up these markets for
Gentrack
13

•Productised solutions for each market to accelerate delivery
and ROI
•Offer includes compliance, regular enhancements, rapid value
delivery and is highly differentiated relative to competition
•Cloud-native solutions which enable utilities to bolt on new
features quickly and at low cost
•Signing new customers on a SaaS basis provisioned in the Cloud
•Increasing total lifetime value of customers
•Growing contracted recurring revenues and margins
•Sacrificing short term up front license revenues
•Revenue mix changing with the progressive migration of
customers to SaaS
•Customer lifetime value at Gentrack is measured over 15 years
and the corresponding revenue multiple over this period is 2
times the traditional licensing model
•Delivering revenue growth notwithstanding the move to SaaS
which has lower up front revenue, due to larger sales
Shift of business model to SaaS recurring revenues
14
Traditional On Premise vs SaaS Revenue Model
(Indexed)
On Prem $(PV)
SaaS $(PV)
Prem Acc. Revenue
SaaS Acc. Revenue
Year 1Year 2Year 3Year 4Year 5Year 6Year 7
SaaS revenue is 1.5 times the traditional licensing revenue after 7
years and 2 times after 15 years

Global market opportunity
Renewable and Distributed Energy
Resources driving energy market restructuring
Settlement and reconciliation of energy,
Smart Metering roll outs, tariff reforms
Rise of Demand Response, Battery storage,
Virtual Power Plants, Electric Vehicles
Our customers are at the forefront of new utility
business models, which are consumer centric
Market pressures and price regulation
forcing energy suppliers to reduce costs
Legacyand in-house systems are more expensive to
run and to keep compliant than new entrant solutions
Energy markets getting
competitive across Europe
We can follow our UK customers into Europe
Asian markets deregulating and
introducingenergy competition
Regulated/vertically integrated utilities cannot
adopt Renewables and Distributed energyefficiently.
15

GentrackStrategy
1.Continue to productiseour software
- Better for customers, faster to deliver with fewer people and lower risk
2.Move to SaaS revenue – new and legacy customers over time
- Improves margin and quality of earnings
3.Focus on our existing markets – UK, Australia and NZ
- UK and Australia are long term growth markets despite current regulatory uncertainty, with opportunity to follow our customers into Europe
4.Develop the Asia Pacific opportunity from a strong starting point
- Building on Singapore success and local expertise
5.Synergisticacquisitions,NZ$50m+ debt facilities
- We target synergistic products with cross sell opportunity
16

Outlook
17
•EBITDA for first half expected at c.$12.5m, compared to $15.9m 1H18 and $15m 2H18
•This is down on 1H18 due to increased staff investment of c.$5m compared to 1H18. We had
expected this cost to be covered by substantial projects which have been put on hold
•Notwithstanding the first half result,we expect the full year FY19EBITDA to be up on FY18 EBITDA
of$31m.We will comment further on this with the first half results released in May
•Recurring software revenue (ARR) will be up in first half, in line with continued underlying growth
•FY19 will see continued capitalised product investment, and is expected to reduce in FY20
when the margin benefits of the shift to ARR are expected to show
•Regulatory and investment uncertainty in the UK and Australia continues for utilities, however we
are winning business with a growing sales pipeline
•We remain confident in our 15% long-term organic EBITDA growth target

www.gentrack.com
FORMAL
BUSINESS

RESOLUTION 1:
APPOINTMENT OF AUDITORS AND
FIXING OF AUDITORS’ REMUNERATION
•That KPMGis re-elected as the
auditor of Gentrack Group Ltd and
that the Board is authorised to fix
the auditors’ remuneration.
Votes ForVotes Against
Number of Shares49,999,038857,068
Number of Shareholders1144
19

RESOLUTION 2:
ELECTION OF FIONA OLIVER
•That Fiona Oliverbe elected to the Board
as a non-executive director of
Gentrack Group Limited.
Votes ForVotes Against
Number of Shares50,766,06166,661
Number of Shareholders1036
20

RESOLUTION 3:
RE-ELECTION OF JOHN CLIFFORD
•That John Cliffordbe re-elected
as a non-executive director of
Gentrack Group Limited.
Votes ForVotes Against
Number of Shares50,001,085852,374
Number of Shareholders1132
21

www.gentrack.com
QUESTIONS AND
GENERAL BUSINESS

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