moq limited - asx• overall revenue growth of 7.8% from fy17 to fy18 from $54.87m to $59.13m •...

MOQ Limited Investor Presentation FY18 1

MOQ LimitedInvestor PresentationCovering Financial Year 2018

MOQ LimitedASX:MOQ

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This presentation has been prepared by MOQ Limited ACN 050 240 330 (MOQ). Each recipient of this presentation is deemed

to have agreed to accept the qualifications, limitations and disclaimers set out below.

None of MOQ and or its subsidiaries or their respective directors, officers, employees, advisers or representatives (Beneficiaries)

make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information

contained in this presentation, including any forecast or prospective information. The forward looking statements included in

this presentation involve subjective judgement and analysis, and are subject to significant uncertainties, risks and contingencies,

many of which are outside the control of, and are unknown to, the Beneficiaries. Actual future events may vary materially from

the forward looking statements and the assumptions on which those statements are based. Given these uncertainties, you are

cautioned not to place undue reliance on such forward looking statements.

This presentation is a general overview only and does not purport to contain all the information that may be required to

evaluate an investment in MOQ.

The information presented in this presentation is provided personally to the Recipient as a matter of interest only. It does not

amount to an express or implied recommendation with respect to any investment in MOQ, nor does it constitute financial

product advice.

The Recipient, intending investors and respective advisers, should:

• Conduct their own independent review, investigations and analysis of MOQ and of the information contained or referred to

in this presentation; and/or

• Seek professional advice as to whether an investment in MOQ is appropriate for them, having regard to their personal

objectives, risk profile, financial situation and needs.

Nothing in this presentation is or is to be taken to be an offer, invitation or other proposal to subscribe for shares in MOQ.

The Recipient specifically agrees, understands and acknowledges that some of the information contained herein has been

provided by third parties and the Beneficiaries accept no responsibility for any inaccuracy, misstatement, misrepresentation or

omission in relation to that information.

Except insofar as liability under any law cannot be excluded, none of the Beneficiaries shall have any responsibility for the

information contained in this presentation or in any other way for errors or omissions (including responsibility to any persons

by reason of negligence).

Disclaimer

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Presentation overview

1. Introduction

2. FY18 Performance Summary

3. FY18 Highlights & Priorities for FY19

4. Questions and Recap

Information provided, complementary to FY18 Annual Report

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2. Financial Year 16-17Introduction

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MOQ Limited

ASX:MOQ is a leading provider

of Specialist Services focused

on Applications, Data and

Infrastructure solutions to drive

positive business outcomes

from technology adoption.

Additionally MOQ is the proud

owner and developer of the

SkoolBag platform and

application suite, used by over

3,000 organisations.

Key Strategic Objective

To build a market leading digital technology business and

pursue positive growth by both organic investment and

through synergistic acquisitions in the technology sector.

MOQ Limited (ASX: MOQ)

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MOQ Limited Our Journey so far…..

Founding

acquisitions of

Technology Effect

and Breeze

Businesses

integrated to form

MOQdigital, key

hires made and

Brisbane branch

relocation

Acquisitions of

TETRAN and

SkoolBag

Integration of

TETRAN into

MOQdigital and

continued

investment into

SkoolBag

products.

Management

Team

Consolidation &

Re-focus

One Business

One Vision

One Future

Focus on

return to

operational

profitability as

well as key

investments in

SkoolBag suite

and

Applications

Speciality

-----------

FY16 FY17 FY18

Growth Focus -

Organic and

importantly

through

Acquisition

FY19

Consistency of

business

performance,

qualify further

M&A Targets

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Vertical Focus & Sample Client base

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FY18 Performance Summary

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FY18 Performance

• Group EBITDA growth of 186% over FY17 to $2,167,434

• Operating Cashflow improvement of 118% and Cash Balance growth by 21.4% to $3,963,738.

• Overall Revenue growth of 7.8% from FY17 to FY18 from $54.87M to $59.13M

• Recurring Services Revenue grew by 5.5%, plus highlight of additional deals closed in Q4 FY19 worth $11.7Million in 3 to 5 year contract value

• Professional Services Revenue grew by 20.7%, buoyed by growth in the Applications, Data and Analytics Speciality Practice.

• Business Services which drives our Digital Transformation Speciality Practices grew 37%over FY17

10.74

4.83

18.37

33.93

15.02

10.77

29.08

54.87

18.12

11.36

29.65

59.13

$0

$10

$20

$30

$40

$50

$60

ProfessionalServices

Recurring Revenue Technology TOTAL

Mill

ion

s

Continuing Revenue Growth FY16 to FY18 (by Segment and TOTAL)

FY16 FY17 FY18For

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FY18 Financial Position

Information provided,

complementary to FY18

Annual Report released August

31 2018

* Medium Term is defined as 2 to 3 years** Operational expenses excluding Corporate and

Depreciation & Amortisation costs

EBITDA

Operating Cashflow growth of 118% to $1.889M from FY17

Cash Balance growth of 21% to $3.964M from FY17

Cash Position

EBITDA for FY18 of $2,167,434, a 186%improvement on FY17

Expenses

FY18 Overall Expenses decrease by 10.9% on FY17.

Operational Expenses in FY18 decreased to 14.7%** of Revenue. (Continuing to drive towards a medium term* objective of 14% of Revenue)

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FY18 Revenue Analysis

Information provided,

complementary to FY18

Annual Report released August

31 2018

Business Services – (including Applications,

Data and Analytics Practice) growth of

+36.6%

Infrastructure Services growth of 6.5%

Operational Services growth of 6.0%

Services Revenue by

Line of Business within

MOQdigital v FY17

NSW branch is now 31% of total business revenues

Revenue By Geography

vFY17

Revenue by Segment Highlights v FY18

Growth of +20.7% in Professional Services

New Recurring Services Contracts of $11.7M

Value signed in Q4 FY18

NSW, 31%

QLD, 69%

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$16.81 $17.13

$29.37$25.50

$28.92 $30.22

0

6

11

17

22

28

33

39

Mill

ion

s

Revenue Linear (Revenue)

$0.21

-$0.75

$1.56

-$0.81

$1.00 $1.17

-3

0

3

Mill

ion

s

EBITDA Linear (EBITDA)

Continual growth trend in

revenue over the last six half

year periods

Trend in Revenue Growth

Trend in EBITDA

More consistent returns, as the

acquisition transition and

integration completed and

return to BAU

Business FinancialPerformance Trend

Looking back from H1FY16 through to end of H2 FY18

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FY18 Highlights and Priorities for FY19

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45%

55%ASX: MOQ

Shareholders

Directors and Management Other Investors

FY18 Highlights

*as at September 6, 2018

$0.20-$0.29

161.3 million

$38.7 million*

52 Week Share Price:

Shares on Issue:

Market Cap:

Through FY18 MOQ Limited continued to improve the overall business return and consistency of financial performance.

For MOQdigital

• Steady revenue growth coupled with much improved bottom line performance

• Growth of the Recurring Services Contract Base

• Growth of the Professional Services business category, primarily in the Applications, Data and Analytics Speciality Practice

• Growth of the NSW business as per our stated investment strategy

• Significant deal win (See June 2018 ASX Announcement)

For SkoolBag

• Re-developed the SkoolBag application, infrastructure improvements, new partnerships and release of key new features such as eNewsletter(See August 2018 ASX Announcement)

• Initial introduction of new revenue stream in Family Essentials offering

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MOQdigitalGo To Market Focus

Whether its cloud, on-premises or a

hybrid approach – our experience

working with industry leading

technologies in data, applications and

systems, allows us to create solutions

that address a range of business

critical challenges

.

Journey to the Cloud

End-User Experience

Business Insights

Service First

Cyber Security

Identity

Internet of Things

Future Workplace

advise integrate operate

Key Market Offerings:

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Over 480 projects delivered for 190 plus clients

135 Active Managed Services Contracts

.

BDO selected MOQdigital to assist with their digital transformation initiatives including the establishment of an Identity Access Management solution to service their global organisations operating in over 160 countries, with more than 73,000 people working across 1,500 offices. The solution utilised the services of Microsoft’s Azure Cloud platform and provides the foundation for applications to be accessed using a single identity.

MOQdigital has entered into a contract with EnzenAustralia to design, build and operate a customised infrastructure platform for one of its key energy industry clients in Australia.

Mortgage Choice chose MOQdigital to assist in a digital transformation process to provide its key business partners, its Brokers, with a much improved business process and set of tools to improve its brokers and customers experience. The New Broker platform has been a successful initiative, and services over 400 agents Australia wide

advise integrate operate

Digital Transformation Initiatives delivered by MOQdigital FY18

MOQdigitalFY18 in Review

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SkoolBagGo To Market Focus

SkoolBag’s vision is to bring every school

and organisation community closer

together through simple, unified and

reliable communication.

With over 3,000 subscriptions, SkoolBag

serves the communication needs of many

schools and organisations, including being

the communication platform of choice by

the Australian Olympic Committee at the

previous two major Olympics events.

Institutions & organisations

Deliver further value via productivity improvements, new features and integrated services.

Teachers, coaches & leaders

Parents, families & communities

Increase usage via improved user experience, easier access to personalised information. Deliver further value via premium content, products and services.

91%

9%

Education Sports/Business/Other

Our core focus:

Subscriptions by industry sector

Revenue Models:

• Subscriptions• Premium features and services – build, partner or acquire• Premium content

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SkoolBag Recently Announced:

• The release of the new

SkoolBag mobile application

• The addition of an electronic

school newsletter

(eNewsletter) feature to the

SkoolBag All-in-one suite.

• A Partnership with Samsung

Electronics Australia to bring

the SkoolBag App to the

Samsung Family Hub(TM)

Refrigerator range.

• Pricing increase to reflect the

enhanced value of the new

SkoolBag All-in-one suite.

Samsung Family Hub Partnership

Simple school newsletter builder - design beautifully formatted newsletters in minutes. Read easily on any device, 1 click translation to 100 languages and more.

The new SkoolBag

mobile app

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MOQ Limited FY19 - Immediate Priorities

Focus of initiatives and strategies that are in place today – throughout the business

Profitable

Growth

Continue to grow

revenue and

improve and

maintain

consistency in run

rate EBITDA to

drive Organic

Growth

Recurring

Services

All 4 Lines of

Business are being

driven to grow

their contracted

Recurring Services

offering

Leverage

Digital Trends

Further invest in our

Applications, Data

and Analytics

speciality practice

and associated

solutions – a high

value high return

focus area that

differentiates MOQ

New SkoolBag

Products

Continue to invest in

SkoolBag to ensure

uptake of the new

and enhanced

product suite into the

current and new client

base.

Ensure ongoing

innovation and new

partnerships to

leverage base and

new product features

Microsoft

Partnership

Microsoft is

growing its market

penetration into

our mid tier client

base substantially -

we have continued

to strengthen our

relationship and

investment in their

‘As A Service’

offerings and

Application Stack

Complete

M&A

Complete at least

one high quality

transaction to

improve Recurring

Services,

Technology

Specialisation or

geographic

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FY19 Outlook

The MOQ leadership and

management teams are focused on

initiatives in FY19 aimed at continuing

MOQ’s growth in both revenue and

EBITDA, which may be driven by the

following:

1. Strong Recurring Services momentum into

H1FY19 – as a result of onboarding of new

Managed Services (won in Q4FY18)

2. Increase market demand for Digital

Transformation services and solutions

3. Growing presence in the NSW market

4. Potential successful complementary acquisition

completed during FY19

5. Increased revenue via new features and pricing of

the SkoolBag product suite

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What we are looking for in an acquisition

target!

Profitable

Growth

Profitable, cash

flow positive,

growth business

Accretive

Earnings

Earnings accretive

(target 4 to 6

times EBITDA),

vendor / key

management

retention and

alignment via

MOQ shares

Strong

Culture

Like-minded

culture,

complementary

skillsets

Expanded

Presence

Expand Australian

and New Zealand

presence with

strong vendor

partnerships and

revenue

synergies across

client bases

Focus

Areas

Key themes:

o Managed

Services

o Internet of

Things (IoT)

o Big Data

o Data Analytics

o Business

Intelligence

o Security

Recurring

Revenue

Add recurring

revenue via

Product (Software

as a Service) and

Managed Services

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Questions and Recap

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MOQ Board

David Shein

Non-Executive Chairman

• Established Com Tech

Communications and built it to

revenues of $700m, 1400

employees (acquired by Dimension

Data, 2001).

• Chairman and founding investor of

Macromatix (Sold to TPG ventures,

2012). Invests in early stage

technology companies many of

which have been successfully

exited.

Scott McPherson

Executive Director

• 25+ years experience at Com Tech

Communications, Dimension Data.

• Started as a systems engineer,

transitioned into a solutions

architect and then into practice

management. Co-founded

Technology Effect..

Joey Fridman

Non-Executive Director

• Co-founder and CEO of Monash

Private Capital an independent

principal investment and advisory

firm.

• Previously CFO of Investec Bank

Australia and Chairman of the

bank’s Investment Committee. Joey

brings a comprehensive mix of

financial, strategic, operational, risk

management and commercial skills.

Michael Pollak

Non-Executive Director

• 20+ years experience in audit,

insolvency and corporate advisory.

• Currently Director of Big Star

Energy Limited

• Recently a Director of Janison

Education Group Ltd (ASX:JAN) and

UCW Ltd (ASX:UCW)

Joe D’Addio

Executive Director

• 35+ years in IT Industry with

extensive experience in Professional

Services and Technology into the

Enterprise market. Held key

Management and Director positions

building and leading IT businesses

with Com Tech Communications,

Dimension Data and co-founded

Technology Effect.

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MOQ Limited Investor Presentation FY18

24

MOQ is well positioned for steady

organic growth

MOQ is actively seeking strategic M&A opportunities

For further information please contact:

Joe D’Addio

Chief Executive Officer

Brad Cohen

Company Secretary

MOQ Limited

P: +61 (2) 8006 5790

E: [email protected] or visit our website at: www.MOQ.com.au

MOQ will continue to invest in its people and strategic partnerships to ensure a high value proposition into

market

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mailto:[email protected]

moq limited - asx• overall revenue growth of 7.8% from fy17 to fy18 from $54.87m to $59.13m •...

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