Company Profile

Ord Minnett Research 1 February 2019

Wisetech Global Limited (WTC.AX)

WiseTech Global (WTC) is a provider of software solutions to the logistics Snapshot

industry globally. The Company develop, sell and implement software
solutions that enable logistics service providers to facilitate the movement Last Price $20.34
Market Cap. $6,123 million
and storage of goods and information, domestically and internationally. 52 Week High/Low $25.00 - $9.18
WiseTech Global provides solutions to 8,000 organisations across 130 Shares on issue 301 million
countries supported through 39 offices across the globe. GICS Industry Software

CargoWise One: CargoWise One, is a deeply-integrated global software Key Dates

solution that enables customers to execute highly complex logistics
Accounts Close 30 June
transactions and manage their operations on one database across multiple AGM 22 Nov 2017
users, functions, offices, countries and languages. We operate our own data Listing Date 11 Apr 2016
centres and deliver our CargoWise One software principally through the
cloud. CargoWise One enables logistics service providers to execute highly Investment Fundamentals
complex transactions in areas such as freight forwarding, customs clearance, 2018A 2019E 2020E 2021E
warehousing, shipping, tracking, land transport, e-commerce, and cross Sales Rev. $m -- -- -- --
-border compliance, and to manage their operations on one database across Rep Profit $m -- -- -- --
multiple users, functions, countries, languages and currencies. Norm Profit $m -- -- -- --
BorderWise: BorderWise is a technical border and customs reference library Rep EPS ¢ -- -- -- --
covering an integrated suite of legislation, technical documents, Norm EPS ¢ -- -- -- --
tariff-classification tools and reference materials with real-time updates and Rep PE x -- -- -- --
alerts on legislation, publications and notices from regulatory bodies. Norm PE x -- -- -- --

Acquisition: The Company acquired a further 22 valuable geographic and DPS ¢ -- -- -- --

adjacent acquisitions across Brazil, Taiwan, Australia, North America, the Yield % -- -- -- --
Netherlands, Ireland, France, Belgium, Latin America and Turkey. Franking % -- -- -- --
ROE % -- -- -- --
Source: Ord Minnett

Share Price Chart

Total Return on $10,000 Investment

Page 1 This report is to be read in conjunction with the disclaimers on page three. 1 February 2019
Company Profile

Ratios and Substantial Shareholders Recent Operational History

2015A 2016A 2017A 2018A 21 November 2018 - Wisetech Global provided presentation to
Profitability Ratios shareholders at 2018 Company AGM. It reported the revenue of
EBITDA Margin % -- 15.80 36.26 35.24 $221.6m, up 44% ac compared to same FY 2017. The interim dividend
EBIT Margin % -- 15.80 28.28 26.34 was 1.05c whereas final dividend was 1.65c. The TSR for FY 2018
Net Profit Margin % -- 13.39 20.72 18.41 was 126.6%. The Company noted the Payout ratio of up to 20% of
Return on Equity % -- 14.04 15.02 11.60
annual NPAT.
Return on Assets % -- 12.59 12.09 7.95
21 November 2018 - Wisetech Global provided Chairperson's and
Debt/Safety Ratios
CEO's Addresses to 2018 Company AGM. In FY 2018, the business
Net Debt/Equity % -47.89 -52.61 -45.73 -33.89
Interest Cover x -- 13.68 -63.47 47.65 continued to experience growth with revenues up 44% to $221.6m,
and net profit after tax attributable to equity holders increasing to
Top 5 Substantial Shareholders
$40.8m. For CargoWise One customers, the Company recurring
Richard White and Realwise Holdings Pty Ltd 52.9% revenue is 99% of total revenue, with 99% usage-based licensing, and
FIL Limited and the entities 9.6% customer attrition rate remains well below 1% for the sixth year in
Fabemu No 2 Pty Ltd and Charles Gibbon 7.1% succession. During FY 2018, the Company continued its investing over
34% of revenue and over 50% of Company people in product
development, further expanding its pipeline of commercialisable
innovations. The Company have completed 27 valuable geographic
expansion and adjacent technology acquisitions, across Europe,
Source: Morningstar Australasia and the Americas.
31 October 2018 - WiseTech Global announced the acquisition of
Principals & Directors CargoIT i Skandinavien (CargoIT), a customs management and
logistics solutions provider in Sweden. The purchase cost comprises
Principals
$1.8m upfront, with a further expected multi-year earn-out potential of
Company Secretary Mr David Rippon $1.8m in relation to business and product integration, and revenue
Directors performance.
Mr Andrew Charles Harrison ( Non-Executive Director,Non-Executive
Chairman )
Mr Michael J Gregg ( Non-Executive Director )
Mr Charles L Gibbon ( Non-Executive Director )
Mr Richard White ( Chief Executive Officer,Executive Director )
Ms Maree Isaacs ( Company Secretary,Executive Director )
Ms Christine Francis Holman ( Non-Executive Director )
Ms Teresa Lucille Engelhard ( Lead Independent,Non-Executive
Director )

Source: Morningstar

Peer Analysis Market Price PE (x) EPS Growth Dividend Yield Franking
Cap
% % %
Company Name Code Recommendation ($m) ($) 2019 2020 2019 2020 2019 2020 2019 2020
Computershare CPU Lighten 9,648 17.77 17.8 16.1 20.7 12.1 2.7 3.0 100 100
Wisetech Global WTC Buy 6,123 20.34 -- -- -- -- -- -- -- --
Xero XRO Buy 6,122 43.53 -- -- -- -- -- -- -- --
Link Administration Holdings LNK 3,800 7.14 9.6 16.7 80.3 -42.5 4.7 2.8 100 100
Afterpay Touch Group APT Buy 3,766 15.91 -- -- -- -- -- -- -- --
Altium ALU Sell 3,256 24.95 -- -- -- -- -- -- -- --
Technology One TNE Buy 2,210 6.97 -- -- -- -- -- -- -- --
IRESS IRE Buy 2,036 11.75 21.9 20.1 10.9 9.0 4.6 5.0 60 60
MYOB Group MYO Hold 2,003 3.39 20.2 18.4 5.7 9.6 3.4 3.9 -- --

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Company Profile

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