Transforming business travel

Transcription

1 Transforming business travel Darrin Grafton, CEO 16 th & 19 th March 2015

2 Important notice This presentation is not an offer of securities. It is a summary and does not purport to be complete, accurate or independently verified. Any forward looking statements are subject to known and unknown risks, uncertainties and assumptions, so may not be correct. This presentation does not constitute financial, product, investment or other advice and does not take into account the particular needs of individuals. When making an investment decision you should consider your financial circumstances and seek independent financial and other professional advice. Do not rely on any information contained this presentation. All information in this presentation is current at the date of this presentation, and all currency amounts are in NZ dollars, unless otherwise stated. This presentation should be read in conjunction with other market releases made by Serko. Page 2 Copyright 2015 Serko All rights reserved

3 Agenda 1. Introducing Serko 2. Business performance review 3. Serko deep dive The market for travel & expense Product strategy Business model review 4. Summary Page 3 Copyright 2015 Serko All rights reserved

4 About Serko Australasian leader in Online Travel and Expense Management for the business market Founded 2007, listed on NZX Main Board in June 2014 High growth, dynamic business employing 132 staff in 4 countries Objective to transform business travel and expense management processes Page 4 Copyright 2015 Serko All rights reserved

5 FY15 financial performance review Transactions Income from online bookings, customisation and per- active user month subscriptions for expense management First half Fy15 : Total revenue up 50% and online transactions up 32% (compared to same period FY14) Continued strong growth through second half of FY15 Page 5 Copyright 2015 Serko All rights reserved

6 FY15 business performance review Serko Travel Agent reseller base fully engaged 90%* of AU and NZ corporate travel spend now accessible through reseller base Existing reseller contracts extending to cover Asia India and now the USA Flight Center contract fully activated Serko Mobile launched Expedia content launched Team expanding in line with plan 132 staff across 4 countries *Source Bell Po,er Research Page 6 Copyright 2015 Serko All rights reserved

8 Global market for travel and expense USD $1 trillion global market for corporate travel Australian corporate travel ~ USD$23bn ~USD$3bn transacting through Serko today Asia corporate travel spend growing at ~10% India and China world growth engines US market back in growth mode ~4% Online expense management recognised as critical business process and growing quickly Concur valued by SAP at USD $8.3bn Source GBTA BTI Outlook Annual Global Report and Forecast: Prospects for Global Business Travel Page 8 Copyright 2015 Serko All rights reserved

9 The business of managing corporate Travel Corporates 8-15% of non salary Opex typically gets spent on travel Travel is essential but is often an inefficient business process Booking policies exist, but are difficult to implement Duty of Care emerging as a serious concern/issue Adopting an OBT saves ~20% on travel & protects employers Page 9 Copyright 2015 Serko All rights reserved

10 The business of managing corporate Travel Corporates 8-15% of non salary Opex typically gets spent on travel Travel is an essential but inefficient business process Booking policies exist, but are difficult to implement Duty of Care emerging as a serious concern/issue Adopting an OBT saves ~20% on travel & protects employers Travel Agents Travel Agency industry is commoditising quickly Agencies continue to own corporate relationships Manual booking is labour intensive making scale hard Technology is the answer to scale, but not a strength Reselling a strong OBT helps Travel Agencies to scale Increases overall Travel Agency Margin Page 10 Copyright 2015 Serko All rights reserved

13 Transforming corporate travel Serko Online Used by travel arrangers/travellers Book, cancel & change flights, hotel, car Access HIGH to RES leisure SCREEN providers GRAB Preferred supplier promo^on Powerful policy management engine Integrated approvals workflow Unique Mass Booking capability Page 13 Copyright 2015 Serko All rights reserved

14 Transforming corporate travel Serko Mobile HIGH RES SCREEN GRAB Used by travellers View extended i^neraries Change flights & hotels Flight alerts & duty of care Travel Concierge Booking coming in 2015 Page 14 Copyright 2015 Serko All rights reserved

15 Powered by Serko E&R companies using FIFO rosters book a lot of flights for crews Most mining companies use a Resource Planning tool such as INX Software Serko partnered with INX to deliver integrated Mass Booking capability Significant efficiency gains for mining companies generating $$ saving Patented technology with rapid adoption across AU, with interest from USA Page 15 Copyright 2015 Serko All rights reserved

16 The business of Expense Management Essential but inefficient business process High cost to manage, high friction Clear, well understood set of business benefits Industry best practice mandates using a single system for managing all types of expense Corporate card, Out of Pocket, Mileage, Allowances Tightly coupled with Serko Online for approvals Corporate card market growing strongly as organisations understand the card value proposition Product / sales strategy tightly aligned with Cards. Page 16 Copyright 2015 Serko All rights reserved

19 Transforming corporate expenses Serko Incharge Create, edit and submit expenses Cloud- based receipt translaôn (OCR) View corporate card transacôns Cloud- based matching of receipts Grouping of expenses & review Extensive repor^ng Rapid data expor^ng / integraôn Page 19 Copyright 2015 Serko All rights reserved

20 Future of Serko products New predictive booking functionality Leveraging proprietary big data Desktop and Mobile More travel providers Tighter coupling between travel & expense Deeper relationships with finance system vendors & banking partners Duty of Care integration across product suite SME proposition Page 20 Copyright 2015 Serko All rights reserved

21 Serko revenue model Travel Agents pay per booking for Serko Online bookings Organisa^ons pay per ac^ve user month for Serko Incharge Travel Agents pay for sobware customisa^on Page 21 Copyright 2015 Serko All rights reserved

22 Serko revenue model Travel Agents pay per booking for Serko Online bookings Organisaôns pay per ac^ve user month for Serko Incharge Travellers pay for Premium Funcônality for Serko Mobile Travel Agents pay for sobware customisaôn Page 22 Copyright 2015 Serko All rights reserved

23 Serko revenue model Travel Agents pay per booking for Serko Online bookings Organisaôns pay per ac^ve user month for Serko Incharge Travellers pay for Premium Funcônality for Serko Mobile Hotel providers pay per- room night commission Travel Agents pay for sobware customisaôn Page 23 Copyright 2015 Serko All rights reserved

24 Serko revenue model Travel Agents pay per booking for Serko Online bookings Organisaôns pay per ac^ve user month for Serko Incharge Travellers pay for Premium Funcônality for Serko Mobile Hotel providers pay per- room night commission Travel Agents pay for sobware customisaôn Adver^sers pay for access to Serko Mobile users Page 24 Copyright 2015 Serko All rights reserved

25 Serko revenue model Travel Agents pay per booking for Serko Online bookings Organisaôns pay per ac^ve user month for Serko Incharge Travellers pay for Premium Funcônality for Serko Mobile Travel suppliers pay commission for bookings Hotel providers pay per- room night commission Travel Agents pay for sobware customisaôn Adver^sers pay for access to Serko Mobile users Page 25 Copyright 2015 Serko All rights reserved

26 Summary Strong market and good traction Sound business foundation with strong leadership and investor base Engaged reseller base across Australasia driving transaction volumes Geographic expansion into Asia under way Underpinned by existing relationships New revenue generating products and opportunities ready for FY16 Page 26 Copyright 2015 Serko All rights reserved

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