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
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• This presentation may contain statements that may be
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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
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• Investors are cautioned that any forward-looking
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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)
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Commercial In Confidence © Knosys Limited 2019
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
Commercial In Confidence © Knosys Limited 2019
Knowledge Management – Market Segmentation
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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
Commercial In Confidence © Knosys Limited 2019
Current challenges for organisations
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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
Commercial In Confidence © Knosys Limited 2019
Why Knowledge Management?
• Keep information up to date and easy to find
• Onboard new employees quickly
• Keep organisational continuity
• Enable customers to help themselves
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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.
Commercial In Confidence © Knosys Limited 2019
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
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Knosys provides context and meaning to large volumesof unstructured content and data – turning information into actionable knowledge
Commercial In Confidence © Knosys Limited 2019
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.
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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
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“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
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Commercial In Confidence © Knosys Limited 2019
Market Adoption
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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.
14Commercial In Confidence © Knosys Limited 2019
Commercial In Confidence © Knosys Limited 2019
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
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Commercial In Confidence © Knosys Limited 2019
Investor Highlights
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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
17Commercial In Confidence © Knosys Limited 2019
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