Presentation release to NZX Retail Investor Evening

NZX
RETAIL INVESTOR
OVERVIEW

•This presentation has been prepared by Serko Limited.
•All information is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollarsunless stated otherwise.
•Information in this presentation
•is for general information purposes only, and does not constitute, or contain, an offer or invitation for subscription, purchase, or recommendation of securities in Serko
Limited for the purposes of the Financial Markets Conduct Act 2013 or otherwise, or constitute legal, financial, tax, financial product, or investment advice;
•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 information for illustrative purposes only and should not be relied upon as (and is not) an indication of future
performance;
•may contain information from third-parties believed to be reliable, however, no representations or warranties are made as to theaccuracy 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 auditors. Non-GAAP measures are used by management to
monitor the business and are useful to provide information to investors to assess business performance.
Disclaimer

INTRODUCTION
Darrin Grafton
Chief Executive Officer

About Serko
Strategy Overview
Financial Highlights
Outlook

For further information refer to Serko’s website www.serko.comand its 2019 Annual Report which can be found under Investor Centre.
•Serko provides innovative cloud based corporate travel and expense technology solutions.
•Serko listed on the New Zealand stock exchange in June 2014, and more recently in June 2018, has listed as a foreign exempt
listing on the Australian Securities Exchange. Serko remains founder led. Serko trades under the ticker ‘SKO’.
•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.
•The majority of Serko’s revenue comes from Travel Management Companies (TMCs) who provide our solution to their
corporate customers.
•Serko is head quartered in New Zealand and employs more than 170 people worldwide including offices in Australia, United
States and China and India.
ABOUT SERKO

Zeno Travel
OUR SOLUTIONS
Zeno Expense
Zeno Travel is an Online
Booking Tool (OBT) that
corporate travellers use to
book flights, trains,
hotels, rental cars and
airport transfers in line
with their corporate travel
policies.
Zeno Expenseautomates
the process of corporate
card and out-of-pocket
expense submission,
reconciliation and
reimbursement
20

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

OUR CUSTOMERS
TMCsExample corporates
The majority of Serko’s revenue comes from Travel Management Companies (TMCs) that act as reseller partners,
providing our solutions to their corporate customers as part of their overall managed travel service.

$
Corporate travellermakes a
booking via Serko
Online/Zeno
Booking and other fees
Serko charges the TMCs a fee per booking (which
varies based on volume).
Year Ended 31 March2019
Travel platform booking revenue
Expense platform revenue
Supplier commissions revenue
Other revenue
15,948
2,710
1,538
467
Recurring Product Revenue20,663
Services revenue2,698
Total Revenue23,361
$
Traveller books hotel or taxi
via Serko OnlinZeno
Supplier commission
Serko also generates revenue through commissions
on hotels, rental cars, airport transfers and other
travel providers that are booked through its
platform.
$
Travellerdownloads and
uses Serko Mobile
Mobile subscription
$
Travellersubmits receipts
using Serko Expense/Zeno
Monthly user fee
Serko Expense customers pay a fee based on the
number of active users each month directly to
Serko.
Additional Services
Serko also earns other miscellaneous revenue such
as mobile licenses
Services Revenue
$
Paid customisation, market place integration or
implementation assistance
COMMERCIAL MODEL

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

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

GROWTH PATHWAYS
•Serko is still gaining domestic volume through new TMCs as well as new
corporate customers through existing TMCs
•Targeting run forward bookings of 5 million in ANZ
•International growth opportunities are very significant
•Activating North American resellers this year
•Building to double volumes and increase revenues to $100M

STRONG TRACK RECORD OF GROWTH
Total revenue growth (%)
Revenue growth –Travel Platforms (%)
Total travel booking transactions (000s)
Online booking transactions
1
(000s)
Online transaction growth (%)
Recurring product revenue as % total revenue
Operating costs
2
(% change)
Employees (number at end of year -FTE)
Average revenue per FTE (NZD$000)
Research & development costs -expense and capex (NZD$000)
Annualisedtransactional monthly revenue (ATMR) (NZD$m)
Selected Operational Metrics
27%
41%
987
821
35%
84%
35%
47
119
2,340
*
FY13
39%
12%
1,107
1,011
23%
71%
62%
87
100
3,387
*
FY14
55%
62%
1,588
1,468
45%
80%
105%
133
94
5,762
*
FY15
27%
49%
2,407
2,262
54%
93%
13%
127
101
6,268
11.2
FY16
9%
8%
2,913
2,673
18%
91%
(10%)
108
122
5,836
15.3
FY17
28%
23%
3,526
3,207
20%
90%
(5%)
106
170
4,906
18.4
FY18
1 –Online bookings exclude Offline and Custom bookings (system generated bookings) which are included in Online booking pricingor at a reduced rate
2 –Operating costs are Operating Expenses excluding depreciation and amortisation and fair value remeasurements of contingent consideration
* indicates not previous measured or reported
28%
20%
4,138
3,743
17%
89%
29%
173
167
9,165
26.0
FY19

PERFORMANCE DASHBOARD
PROFITREVENUEACTIVITYCOSTS
FY19 VS FY18
NET PROFIT
AFTER TAX
$1.6m
EBITDAF
1
up 19% over prior
year
$2.6m
OPERATING
REVENUE
28%
Operating revenue
from core products
plus services
revenue
$23.4m
RECURRING
REVENUE
2
26%
Recurring revenue (core
product revenue only)
89% of total operating
revenue
$20.7m
TOTAL
INOME
28%
Total income from
all sources including
grants
$24.6m
PEAK ATMR
3
41%
Indicator of future
growth potential
based on current
trading
$26m
ONLINE
BOOKINGS
17%
Travel platform
booking growth
against prior
corresponding year
17%
R&D COSTS
4
87%
39% of Revenue
Opex$2.4m
Capex $6.7m
$9.2m
OPERATING
EXPENSES
32%
Net FTE
5
increase in
the year of 67
$23.3m
Notes 1 –5: Refer to Appendix for Definitions
See Slide 13 of this presentation for a reconciliation of Net Profit to EBITDAF
Note 3 -Peak AnnualisedTransactional Monthly Revenue (ATMR) of $26m is as at February 2019. This includes InterplXacquired in Dec 2018. Excluding InterplX, ATMR would be $22.5m representing a 23% increase on prior year.

•Total Operating Revenue Growth expected to be in the range of 20%-40%
•Positive EBITDAF is dependant on continued capitalisation of internally developed
software and achieving revenue growth at high end of guidance due to scaling of
operations for signed contracts
•Further guidance will be given at Annual Shareholders Meeting in August 2019
OUTLOOK

QUESTIONS

DEFINITIONS
•Peak ATMR (AnnualisedTransactional Monthly Revenue) is a non-GAAP measure. Serko uses this as a useful indicator of recurring revenues from Serko
products. It is calculated by annualisingthe combination travel and expense platform monthly revenues for the most recent non-seasonal month. The
travel platform revenue is annualisedby taking the monthly online booking transactions divided by the number of weekdays for that month multiplied by
the average 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 bycontracted
customers. It excludes revenues from customisedsoftware development (services revenue).
•R&D (Research & Development) costs is a non-GAAP measure representing the internal and external costs related to R&D both expensed and
capitalised.
•EBITDAF is a non-GAAP measure representing Earnings Before the deduction of costs relating to Interest, Taxation, Depreciation and Amortisationand
Fair value remeasurement of contingent consideration.
•FTE = Full time equivalent employee.

THANK YOU