Announcement PDF FY24 Full Year Results 26 August 2024 CONTACT DETAILS Stephen Kowal Chief Executive Officer and Executive Director 02 9657 0999 stephen.kowal@atturra.com Herb To Chief Financial Officer 02 9657 0999 herb.to@atturra.com This presentation has been authorised for release to the ASX by the Board of Atturra Limited. Atturra Limited | ABN 34 654 662 638 Level 2, 10 Bond Street, Sydney NSW 2000 Important Notice & Disclaimer The material in this presentation is general background information about Atturra Limited (34 654 662 638) (Company) and its activities current as at the date of this presentation, 26 August 2024. It is information given in summary form and does not purport to be complete. It should be read in conjunction with the Company’s other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, which are available at www.asx.com. Information in this presentation is not intended to be relied upon as advice to investors or potential investors and does not consider the investment objectives, financial situation or needs of any particular investor. Investors should consider these factors, and consult with their own legal, tax, business and/or financial adviser in connection with any investment decision. This presentation has not been audited in accordance with the Australian Auditing Standards. This presentation contains statements that are or may be deemed forwardlooking statements. Readers are cautioned not to place undue reliance on such forward-looking statements. Such forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. No representation or warranty, expressed or implied, is made to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, the Company and its related bodies corporate, respective directors, employees or agents, and any other person does not accept any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including without limitation, any liability from fault or negligence. Agenda 01 Results Summary 02 Financial Performance 03 Business Overview 04 Business Update 05 Outlook 06 Q&A Atturra FY24 Financial Highlights Atturra Results Revenue growth of 36% on pcp $243.4m $25.5m Underlying EBITDA growth of 21% on pcp Revenue $60.6m Cash Underlying EBITDA* $16.3m Underlying NPATA Strong Balance Sheet – well placed to acquire with cash balance of $60.6M Underlying NPATA growth of 27% on pcp * Underlying EBITDA is a financial measure which is not prescribed by the Australian Accounting Standards (AASBs) and represents profit under AASBs adjusted for specific items, including capital raising costs, share based payments, merger and acquisition (M&A) transaction costs and retention costs. Achievement of Key Objectives Objective Industry Strategy Technology Strategy Targeting 20%+ revenue growth and 10.5%+ underlying EBITDA per annum Outcome Atturra has consistently exceeded annual growth and profit targets since listing on the ASX in 2021 Selective overseas expansion where strong partner support exists (Prospectus 3.6) Atturra has offices outside ANZ in Singapore and Hong Kong Expansion into Managed Services over next 3-5 years (2021 Market update) Atturra now has a full end-to-end Managed Services offering Build Intellectual Property (Prospectus Section 3) Atturra has multiple proprietary offerings, ranging from connectors, accelerators, private cloud to enterprise solutions Deploy funds to expand in targeted industries (Prospectus 3.6) Atturra expanded into Education (Somerville) and Manufacturing (Kettering) through targeted acquisitions Core growth in Education, Defence, Local and Federal Government (Prospectus Section 3) Atturra has grown in every segment, particularly strong growth in Education (+121% CAGR since FY21) Vision and Strategy Atturra aims to be Australia’s leading Advisory and IT solutions provider. We will achieve this by focusing on these strategies: Industry Strategy Technology Strategy Deep industry capabilities Sales differentiation Industry specific IP Low client churn Expansion into Natural Resources Stable predictable revenue streams High-growth technologies Benefit from above market growth Specialist and niche-technologies Provides a level of pricing power Expand into Enterprise Solutions Increase in market size Business Philosophy Our Business Philosophy continues to focus on growth while delivering a sustainable margin Growth Philosophy REVENUE GROWTH 20%+ per annum targeting a mix of both organic and inorganic FY25 Revenue Forecast $292M+ Investment Philosophy IS TO FOCUS ON: 10.5%+ Underlying EBITDA* margin of approximately 10.5% and investing consistently into business growth and IP FY25 uEBITDA Forecast $30M+ * Underlying EBITDA (uEBITDA) is a financial measure which is not prescribed by the Australian Accounting Standards (AASBs) and represents profit under AASBs adjusted for specific items, including capital raising costs, share-based payments, merger and acquisition (M&A) transaction costs and retention costs. Atturra’s rapidly growing client base Our business continues to expand organically with over 80 new clients this financial year. Financial Performance Revenue Bridge 300.0 250.0 200.0 24.1 48.8 243.4 36% Strong revenue growth on pcp driven by a mix of organic and inorganic growth in-line with company strategy, made up of: -8.0 178.4 150.0 Acquisition Contribution 100.0 The revenue of the acquisitions made in FY24, based on the revenue of those acquisitions in FY23. 50.0 0.0 Legend: Organic Growth FY23 Acquisition Increase Decrease Canberra Advisory Organic Total * Note: The revenue bridge is unaudited. Figures in AUD in millions ($) unless stated otherwise. FY24 Growth from the core businesses and the growth of acquisitions since acquisition (difference between FY23 and FY24). Financial Highlights (continued) Consolidated Revenue CAGR = 34% 300.0 200.0 150.0 178.3 134.6 15.0 100.0 10.0 50.0 5.0 0.0 0.0 FY22 FY23 36% FY24 Revenue growth pcp 29% 21.0 42% 15.1 29% FY22 FY23 21% * Predictable revenue is the combination of recurring revenue and long-term client revenue Figures in AUD in millions ($) unless stated otherwise. 25.5 25.0 20.0 Revenue Composition CAGR = 30% 30.0 243.4 250.0 Consolidated EBITDA (Underlying) FY24 Underlying EBITDA growth pcp Other Revenue Recurring Revenue 58% Long-Term Client Revenue Predictable revenue* NPATA Bridge 18.000 2.482 16.000 1.348 14.000 -0.347 1.086 9.731 -0.506 NPATA Adjusted NPAT (“NPATA”) adds back client relationship intangible amortisation and acquired software amortisation. 8.000 6.000 4.000 Underlying NPATA 2.000 0.000 Reported Share-based Revaluation NPAT payments of contingent consideration Legend: 27% Strong Underlying NPATA growth on pcp 0.484 2.061 12.000 10.000 16.340 Increase Decrease M&A Transaction & Capital Raising Costs Total Gain on Bargain Purchase M&A Retention Integration Amortisation Costs Underlying NPATA * Note: The NPATA bridge is unaudited. Figures in AUD in millions ($) unless stated otherwise. Underlying NPATA is a financial measure which is not prescribed by the Australian Accounting Standards (AASBs) and represents net profit after tax under AASBs adjusted for specific items, including share-based payments and one-off merger and acquisition (M&A) transaction costs. 36% increase on pcp in revenue to $243.4m FY24 Financial Results Quality of business is stable, Gross Margin increase to 32% FY24 FY23 % 243,352 178,331 36% 14,118 16,571 -15% 25,462 21,009 21% 9,731 10,643 -9% 16,340 12,855 27% EPS (cents) 3.57 4.71 -24% Gross Profit 79,041 54,108 46% Gross Margin % 32% 30% EBIT Margin 6% 9% Revenue from customers EBIT EBITDA (Underlying)* NPAT NPATA (Underlying)** * Underlying EBITDA is a financial measure which is not prescribed by the Australian Accounting Standards (AASBs) and represents profit under AASBs adjusted for specific items, including capital raising costs, share based payments, merger and acquisition (M&A) transaction costs and retention costs. ** Underlying NPATA is a financial measure which is not prescribed by the Australian Accounting Standards (AASBs) and represents net profit after tax under AASBs adjusted for specific items, including share-based payments and one-off merger and acquisition (M&A) transaction costs. This measure is intended to remove the effect of non-cash charges of acquired intangibles. Figures in AUD in thousands ($) unless stated otherwise. Improved profitability 21% increase in underlying EBITDA to $25.5m Underlying EBIT margin slight decline to 6% Earnings per share down 24% to 3.57 cents EBIT and Underlying EBITDA are calculated as follows: Profit after income tax Add: Interest expense Less: Interest income Add: Income tax expense Reported EBIT Share based payments Revaluation of contingent consideration M&A Transaction & Capital raising costs Gain on Bargain Purchase M&A related retentions Integration Costs Underlying EBIT Depreciation Amortisation Depreciation included in cost of sales Underlying EBITDA FY24 9,731 1,823 3,332 -768 14,118 1,086 -506 2,061 -347 692 1,926 FY23 10,643 1,110 5,308 -490 16,571 1,155 19,030 3,290 3,142 18,695 1,846 208 260 21,009 25,462 570 399 Balance Sheet (AUD $,000) 30-Jun-24 Cash and cash equivalents 60,639 Trade and other receivables 67,065 Contract assets 739 Inventories 1,621 Income tax refund due 1,380 Other current assets 3,015 Trade and other receivables 6,718 Investments accounted for using the equity method 1,307 Property, plant and equipment 2,425 Right-of-use assets 11,236 Intangible assets 126,401 Deferred tax asset 3,322 Total Assets 285,868 30-Jun-23 44,250 39,627 422 755 2,356 1,191 1,716 9,645 56,539 5,869 162,370 % Change 37% 69% 75% 115% Nm 28% Nm 10% 41% 16% 124% -43% 76% Trade and other payables Contract liabilities Borrowings Lease liabilities Income tax payable Employee benefits Other liabilities Total Liabilities 76,976 9,652 14,494 12,310 3460 11,350 7,440 135,682 41,339 7,616 5,352 10,196 906 9,116 8,784 83,309 86% 27% 171% 21% 282% 25% -15% 63% Net Assets 150,186 79,061 67% Net Tangible Assets Working Capital 21,537 30,656 17,204 23,490 25% 31% Nm – not meaningful raised $50.0m Cash in Capital Raising $49.0m After costs $4.3m Increase in Net Tangible Assets $7.2m Increase in Working Capital December 2023 Tax liability of $0.6M settled during 1H FY24 Cash Flow (AUD $,000) Net cash position $60.6m 37% increase on pcp FY24 FY23 % Change Opening Cash 44,250 35,130 Cashflows from operations 11,844 10,469 13% Investments in Subsidiaries -48,991 -18,365 Nm -776 -281 Nm - 664 Nm -265 -1126 Nm - 97 Nm Impact of capital raising 49,035 24,254 102% Proceeds of debt 42,200 4,600 817% Repayment of debt -33,198 - Nm - -4,750 Nm Lease Payments -3,195 -2,129 Nm Dividends paid -265 -513 Nm Closing Cash 60,639 44,250 37% Investments in PPE and intangibles Proceeds from disposal of investment Share buy-back Proceeds from disposal of PPE Repayment of loans from related parties 26% Cash flow from operations $11.9m 13% increase on pcp Investment in Subsidiaries Incl. earn-out payments to subsidiaries $49.0m Capital raised $50.0m Less $1.0m Related fees paid in the period Nm – not meaningful Business Overview Trends in Digital Transformation & AI Digital transformation investments drive opportunity and value AI is driving a surge in Digital Transformation (DX) • DX market CAGR 16.2% 2022 – 2027 • DX investments projected to reach two thirds of all ICT spending by 2027 Atturra is uniquely positioned to lead the way in accelerating digital transformation Expertise in proven and emerging technologies We continue to develop deep expertise in proven and emerging technologies such as AI, advanced connectivity, cyber security, hybrid clouds and AI-enabled business applications, e.g. accelerating workloads on Nuix’s AI Neo software platform with HPE and NVIDIA. Advancement of connectivity technologies Cloud and edge computing enable high-performance, secure, and affordable infrastructure, enhancing datadriven decision making and customer experiences Adoption and integration of AI into business applications Organisations recognise that investing in digital transformation is core to being competitive and viable Strategic partnerships We have built strong strategic partnerships with leading technology providers and platforms allowing us to extend our capabilities and offer more capable solutions to our clients. Focus on industry-specific solutions We tailor solutions to meet the unique challenges and requirements of each Industry, accelerating time to value. Deep Industry Expertise FEDERAL & STATE GOVERNMENT Largest sovereign publicly listed Advisory and IT Solutions provider to Federal Government DEFENCE Largest sovereign publicly listed Advisory and IT Solutions provider to Defence with over 300 security cleared personnel and over 450 member organisations through its Industry Engagement business UTILITIES Enable utilities to adapt to changing customer needs; reinvent and stay competitive FINANCIAL SERVICES Atturra has unique IP with integration and data architectures building on multiple technologies to support the growth of finance, superannuation and banking clients LOCAL GOVERNMENT Atturra is the only holistic services provider to Australia and New Zealand, with over 140 Local Government Authorities as clients MANUFACTURING Sole QAD partner in ANZ and Fiji and providing QAD first line support for all clients in this area RESOURCES Expanded our presence in this new target industry, winning a strategic long-term deal, replacing a global systems integrator K-12 & HIGHER EDUCATION Leading trusted partner in K-12 Education with its endto-end solutions delivered by industry practitioners Atturra Capabilities Providing end-to-end solutions ADVISORY & CONSULTING Atturra is an ASX-listed sovereign IT and business advisory provider with a strong footprint in Government, Defence, and Aged Care BUSINESS APPLICATIONS Atturra is the only ASX-listed company that supports the full end-to-end capabilities of TechnologyOne, Infor Pathway and QAD CLOUD BUSINESS SOLUTIONS Atturra is the only ASX-listed sovereign provider with 5 Microsoft solution partner designations, and a core IT services focus on delivering end-to-end capability at an enterprise scale for highly regulated organisations DATA & INTEGRATION Atturra is the only ASX-listed company that is an award-winning leading partner in APJ for both structured and unstructured data enterprise solutions MANAGED SERVICES Atturra is the only ASX-listed sovereign Managed Services provider in Australia with end-toend capability to advise, integrate and manage the infrastructure for both mid-market and enterprise organisations Advisory & Consulting [Insert Selling Points] Atturra Unique is an ASX-listed sovereign IT and business advisory provider with a strong footprint in Government, Defence, and Aged Care 1,450+ SUCCESSFUL ENGAGEMENTS 85%+ 70+ REPEAT BUSINESS IN FY24 CONSULTANTS Including 40+ security cleared RECOGNISED LEADER Business Transformation Technology Transformation People Transformation Process Transformation Data Transformation Enterprise Risk Wargaming and experimentation Resilience and preparedness Enterprise Scale Defence & Federal Gov State Gov Local Gov NATIONAL FOOTPRINT AUS 1 country STRATEGIC INITIATIVES • Secure larger and longer-term revenue through end-to-end enterprise transformation • Expansion into key verticals such as Federal and Local Gov, Education and Aged Care • Enhanced the breadth of our consulting and digital advisory capability through the acquisition of Exent PROGRESS IN FY24 • Geographic and sector expansion 4 offices • Renewed extensions to key existing Government contracts • Instrumental in securing transformational deal in Natural Resources sector Business Applications Atturra is the only ASX-listed company that supports the full end-to-end capability of the core technologies we work with 2,750+ SUCCESSFUL PROJECTS 95%+ TechnologyOne Largest independent provider in ANZ Infor Pathway Largest provider in ANZ QAD Exclusive partner in ANZ and Fiji, and partner award winner including 2023 Global Growth Award and 2024 Global Cloud Award YoY CLIENT RETENTION* 200+ CONSULTANTS With leading Industry expertise STRATEGIC INITIATIVES RECOGNISED LEADER IN OUR CORE TECHNOLOGIES AUS NZ FIJI 3 countries 7offices Opened a new office in South Australia • Extensive industry focus on Local Government, Federal Government, Education, and Utilities • Expand partner ecosystem including ReadyTech, Efficiency Leaders, Curious Thing, Lighthouse, SafetyCulture, Aurion and Payble PROGRESS IN FY24 • Won our largest Local Government program of work across the TechnologyOne application suite • Successfully implemented TechnologyOne’s CiA rating and property application at the largest council in South Australia. In doing so, we developed a unique template for SA councils. • Led critical streams of a transformative Cloud program at a major Queensland University • Completed an award-winning QAD cloud upgrade at a major Fijian manufacturer Cloud Business Solutions Atturra is the only ASX-listed sovereign provider with 5 Microsoft solution partner designations, and a core IT services focus on delivering end-to-end capability at an enterprise scale for highly regulated organisations 300+ SUCCESSFUL GOVERNMENT PROJECTS 95%+ YoY CLIENT RETENTION 100+ SECURITY CLEARED MICROSOFT CONSULTANTS Solutions Partner Designations Business Applications Data and AI (Azure) Digital and App Innovation (Azure) Infrastructure (Azure) Modern Work Onshore Australian team of onshore consultants 9 locations across ANZ STRATEGIC INITIATIVES • Support growth in secret and above in Defence and Intelligence • Attainment of Advanced Microsoft specialisations • Expansion into new industries • Investment in IP PROGRESS IN FY24 Copilot AI integration Enhance existing D365 Case Management IP with Copilot AI • Successful growth in the Utilities sector • Setup foundation to build unique IP in the K-12 Education industry Data & Integration Atturra is the only ASX-listed company that is an award-winning leading partner in APJ for both structured and unstructured data enterprise solutions 1,250+ SUCCESSFUL PROJECTS 300+ UNIQUE SYSTEMS INTEGRATED 270+ CONSULTANTS Largest team of Data Integration Consultants (in country) RECOGNISED LEADER #1 Boomi Partner APJ #1 Software AG Partner ANZ #1 Smartsheet Partner APAC #1 OpenText Partner APAC STRATEGIC INITIATIVES • Atturra Data Reference Architecture • Technical Alliance program • Expansion into new regions • Investment in IP Enterprise Scale Capability to deliver systems that are supporting over 10 billion transactions a year AUS NZ SINGAPORE HONG KONG 4 countries PROGRESS IN FY24 • New partnerships signed to strengthen GTM 8 offices • Kicked off with early adopters Urbanise and Procore • Opened office in Hong Kong • DA Online v2 released Managed Services [Insert Selling Points] Atturra Unique is the only ASX-listed sovereign Managed Services provider in Australia with end-to-end capability to advise, integrate and manage the infrastructure for both mid-market and enterprise organisations 1,000+ SUCCESSFUL ENGAGEMENTS 99.999% CLOUD UPTIME 150+ TECHNOLOGY ENGINEERS Including 35+ security cleared engineers RECOGNISED LEADER NetApp Prestige Partner of the Year HPE Service Partner of the Year HP Education Partner of the Year Mimecast Acceleration Partner of the Year Red Hat Advanced Partner of the Year Cisco Gold Managed Service Provider Microsoft Cloud Partner Pure Storage APJ Partner of the Year Enterprise Scale 50%+ of our work is with energy & resources, and Federal & State Government LOCAL ENGAGEMENT, NATIONAL DELIVERY 1country STRATEGIC INITIATIVES • Technology diversification, including AI, Automation, Data Management and Security • Expansion in key verticals such as Federal Government, gas, oil and mining, and education PROGRESS IN FY24 • Fully integrated all acquisitions into one Atturra Managed Services 6 offices • Maturing of our enterprise systems • Underpinning Atturra’s end-to-end service offering with our Managed Services capability • Expansion into the wider Atturra client base Business Update Atturra's Key Proprietary Offerings Scholarion Atturra DA Online WHAT IS IT? Cutting-edge student information system (built on Microsoft D365), supports variety of workflow systems and approvals. WHAT IS IT? An end-to-end cloud-hosted offering in a ready-built, secure environment optimised for multiple solutions. 12 modules in total, can be licensed to other schools and tailored. Offers various financial and strategic benefits for organisations of all sizes. WHAT IS IT? Atturra (using Boomi) created a fully automated process for submitting and processing development applications (DAs) via the NSW ePlanning Portal. Will be a key enabler for digital transformation within the K-12 space. Scalable and flexible with various options to suit different needs. WHO USES IT? 1 current client, 50+ prospects, and part of selection process for a multiple schools' system. WHO USES IT? Recently launched. WHO USES IT? 16 existing clients. WHAT’S THE POTENTIAL? WHAT’S THE POTENTIAL? WHAT’S THE POTENTIAL? Student Information System Significant upside potential in a market underserviced for years. Cloud Platform Global offering depending on which solution. ePlanning for NSW Councils Reduces risk of errors and facilitates smooth compliance throughout entire planning lifecycle. Repeatable solution, taking less time for every subsequent implementation. Targeted at every council in NSW and potential for expansion in other states. FY24 Achievements Acquisitions Awardwinning Awardwinning Awardwinning Silverdrop Assets & Business Acquisition August 2023 OpenText APAC Regional Partner of the Year HPE Service Partner of the Year Boomi APJ Partner of the Year Sabervox Pty Ltd September 2023 Smartsheet APJ MVP Cirrus Networks Holdings Limited (ASX:CNW) December 2023 Mimecast Australian Acceleration Partner of the Year HP Education Partner of the Year AFR Australian Financial Review Fast 100 List Boomi ANZ Partner of the Year Boomi APJ Practice Excellence Partner of the Year Pure Storage APJ Partner of the Year Partnerships Microsoft Cloud Partner Program 5 designations ReadyTech Government, Education & Workforce Management ERP Solutions Acquisitions and Integration Atturra’s strategy is to integrate acquired businesses and maximise the common processes, including sales. Below are all acquisitions since January 2023 Finance system HR system CRM, timesheet Rebrand FINAL STEPS TO FULL INTEGRATION Fully migrated Fully migrated Done Complete integration of Key Ticketing Systems Fully migrated Fully migrated Done Fully migrated Fully migrated Done Fully migrated Fully migrated Done Fully migrated Fully migrated Done August ’24 March ’25 Jan ‘25 HSD Fully migrated Somerville Fully migrated Silverdrop Fully migrated Sabervox Fully migrated Cirrus Fully migrated Exent March ’25 FY25 Integrate Exent fully within financial year Integration costs forecast for FY25 • $400K related to Exent (restructuring, branding and systems) • $749K related to final elements for Cirrus/ Somerville/Sabervox (ticketing) Outlook Outlook Atturra is well positioned to continue to grow with strong industry capabilities and IP, and being the largest sovereign end-to-end provider in most of its areas. 01 Continue to invest in Managed Services sales, position for transformational deals in FY26/27 02 Continue to invest in developing Industry Solutions. Long-term vision is the majority of Atturra’s recurring revenue clients have a minimum of one piece of IP within the client's solution stack 03 Selectively focus on further offshore expansion, only where Atturra is a market leader. FY25 Revenue Forecast $292M+ FY25 uEBITDA Forecast $30M+ Questions & Answers Thank you CONTACT DETAILS Stephen Kowal Chief Executive Officer and Executive Director 02 9657 0999 stephen.kowal@atturra.com Atturra Limited | ABN 34 654 662 638 Level 2, 10 Bond Street, Sydney NSW 2000 Herb To Chief Financial Officer 02 9657 0999 herb.to@atturra.com