Kin Axis
Kin Axis
Kin Axis
APRIL 2017
Forward Looking Statements
Forward-Looking Information
This document contains forward-looking statements within the meaning of applicable Canadian securities legislation. In some cases, these forward-looking statements can be identified by words or phrases
such as may, will, expect, anticipate, aim, estimate, intend, plan, seek, believe, potential, continue, is/are likely to or the negative of these terms, or other similar expressions intended to
identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our
financial condition, results of operations, business strategy and financial needs.
These forward-looking statements include, among other things, statements relating to: our expectations regarding our revenue, expenses and operations; our plans for and timing of expansion of our solutions
and services; our future growth plans; the acceptance by our customers and the marketplace of new technologies and solutions; our ability to attract new customers and develop and maintain existing
customers; our expectations with respect to advancement in our technologies; our competitive position and our expectations regarding competition; and anticipated trends and challenges in our business and
the markets in which we operate.
Forward-looking statements are based on certain assumptions and analysis made by us in light of our experience and perception of historical trends, current conditions and expected future developments and
other factors we believe are appropriate, and are subject to risks and uncertainties. Although we believe that the assumptions underlying these statements are reasonable, they may prove to be incorrect. There
can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Given these risks, uncertainties and
assumptions, you should not place undue reliance on these forward-looking statements. These statements are provided to assist external stakeholders in understanding Kinaxis expectations as of the date of
this document and may not be appropriate for other purposes.
Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors,
including those identified on page 3 of our Managements Discussion and Analysis for the second quarter ended June 30, 2016, and in our other public disclosure documents, which are available under our
profile on SEDAR (www.sedar.com). Although the forward-looking statements contained in this document are based upon what our management believes are reasonable assumptions, these risks,
uncertainties, assumptions and other factors could cause our actual results, performance, achievements and experience to differ materially from our expectations, future results, performances or achievements
expressed or implied by the forward-looking statements. The forward-looking statements made in this document relate only to events or information as of the date of this document is made and are expressly
qualified in their entirety by this cautionary statement. Except as required by law, we do not assume any obligation to update or revise any forward-looking statements, whether as a result of new information,
future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Non-IFRS Measures
This document makes reference to certain non-IFRS measures, specifically Adjusted EBITDA. These non-IFRS measures are not recognized measures under IFRS and do not have a standardized meaning
prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement the IFRS
measures by providing further understanding of our results of operations from managements perspective. Accordingly, they should not be considered in isolation or as a substitute for analysis of our financial
information reported under IFRS. We use Adjusted EBITDA to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise
be apparent when relying solely on IFRS financial measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our
management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital
expenditure and working capital requirements.
Adjusted EBITDA is not a recognized, defined or standardized measure under IFRS. Our definition of Adjusted EBITDA will likely differ from that used by other companies (including our peers) and therefore
comparability may be limited. Non-IFRS measures should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial
statements and disclosures in their entirety and are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures.
For a reconciliation of Adjusted EBITDA to the most comparable IFRS financial measure please see the section titled, Reconciliation of Non-IFRS Measures in the Companys Managements Discussion and
Analysis filed on SEDAR (sedar.com) dated February 28, 2017.
2
Todays supply chain networks
are EXTENDED and COMPLEX
3
RapidResponse
A single product that provides customers
end-to-end visibility and planning, change
simulation and response co-ordination across
their supply chain networks
4
Rapidly growing market
for SaaS-based SCM solutions
2018
$4.4B
19.1%
CAGR
2012
$1.5B
2017
10.3%
CAGR
2012 Cloud Application
$8.3B
Market in SCM
Enterprise Application
Software Market in SCM
5
Investment Highlights
ATP dependent
Work
Constraints Narrow
Net
Forecasts functions
Requirements
Individual apps
and processes
Optimization
focused
7
Kinaxis connects the enterprise
KINAXIS
Network
Inventory
Planning Single
Planning/ solution
Optimization
Demand/Event
Planning processes
Transportation
Supply
Planning Concurrent
Planning planning
Order
Promising Integrated
Warehouse
Management Cloud
KINAXIS
Single
solution
Seamless
processes
Concurrent
planning
Integrated
Cloud
GIVEN THE
CONFIGURABILITY OF
RAPIDRESPONSE, IT IS AN
IDEAL SOLUTION TO TAKE
COMPANIES THROUGH THE
VARIOUS STAGES OF
MATURITY
This graphic was published by Gartner, Inc as part of a larger research document and should be evaluated in the content of the entire document. The Gartner document is available upon request from Kinaxis.
1 Payne, T., Magic Quadrant for Supply Chain Planning System of Record Gartner Inc., January 19, 2016
Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization
and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
10
Well established base of customers
including blue-chip enterprises
HIGH TECH AND AEROSPACE INDUSTRIAL LIFE SCIENCES AND AUTOMOTIVE CONSUMER
ELECTRONICS AND DEFENSE PHARMACEUTICALS PACKAGED GOODS
11
Actual Customer Results
IMPROVED ON-TIME DELIVERY LOWER INVENTORY COSTS
6 weeks
to 4 weeks
33%
Days to Minutes 20% less in 3 months
Planning cycle(1) Assessment of demand plan(2) Finished goods inventory(2) Finished goods inventory(3)
Overall product lead times(2) Customer order changes(2) Inventory productivity(2) Abnormal scrap(4)
(1) TechFact, TVID:CD2-40A-D90 (3) TechFact, TVID:589-4FF-2F6
(2) Kinaxis internal Study (4) TechFact, TVID:1A2-249-46E
12
Plan Respond
13
Strong track record of revenue and adjusted EBITDA
US Dollars (Millions)
116.0 81.8
26% 30.0
CAGR
91.3 25% 65.2 28.5
CAGR
70.1
51.1
27% 34% 33%
60.8 QoQ 40.0
QoQ
16.1
46.7 33.1 15.0 25%
22.7 23%
30.3 19.9 20.8 9.6 7.1
17.0 18.5
25% 6.4
24.2
30% 21%
21%
Q4 2015
Q4 2016
Q4 2015
Q4 2016
Q4 2015
Q1 2016
Q2 2016
Q4 2016
Q3 2016
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
VISIBILITY STABILITY
~80 % >100 %
FORWARD TWELVE-MONTH REVENUE NET REVENUE DOLLAR RETENTION
2-5
YEAR CONTRACTS
65%
FROM NEW NAME ACCOUNTS
| 35%
FROM EXISTING CUSTOMERS
15
Financial Results
YoY
$ in USD millions 2016 Change 2017 Guidance
Professional Services
$33.1 32%
Revenue
$127.9
Cash & Cash Equivalents
(1) Adjusted EBITDA is a non-IFRS measures, for reconciliation of Adjusted EBITDA to profit
before income taxes, please see Managements Discussion & Analysis 16
Clear growth elements
17
Strong Leadership Team
MANAGEMENT TEAM BOARD OF DIRECTORS
John Sicard, Chief Executive Officer Doug Colbeth (Chair)
Key contributor to the architecture and development CEO from 2003-15, led Kinaxis 2005 transition to SaaS
of Kinaxis since 1994 Previously CEO of Spyglass
Richard Monkman, Chief Financial Officer John Sicard, Chief Executive Officer
CFO since 2005; high-tech finance experience CEO of Kinaxis
(public and private)
Ian Giffen (Independent Lead Director)
Sarah Sedgman, Chief Knowledge Officer Serves as an advisor and/or director to technology companies
Joined Kinaxis May 2015 and investment funds
Leads Kinaxis customer success team Director at Absolute Software and a number of private companies
Extensive experience in the IT knowledge and learning
community PTC University, Cognos | IBM Ronald A. Matricaria
Former CEO of a prominent health care organization
Jack Nopp, Chief Technology Officer Has over 35 years of medical device and pharmaceutical experience
20 years of experience
Technical software background in analytics, Big Data, ERPs, Angel Mendez
web technologies, data warehousing, eCommerce Former SVP-Cisco Technology;
Previously SVP of Global Operations, Palm
David Kelly, EVP Professional Services
Joined Kinaxis June 2014 Jill Denham
Led IBMs Enterprise Content Management (ECM) worldwide Former Vice Chair at CIBC Retail Markets, and Director of the OTPP Board
services business Director at the National Bank of Canada and Chair of the Board of Morneau
Shepell
Randy Erwin, EVP NA / EMEA Sales
Joined Kinaxis May 2012 Robert Courteau
Established Siperians Life Sciences vertical, which eventually CEO of Altus Group Limited
became its highest performing sector and revenue contributor Previous Corporate executive with SAP AG
18
TSX : KXS
JOHN SICARD | CEO
RICHARD MONKMAN | CFO
APRIL 2017