Ann: 2017 AGM Presentation, page-25

Just rereading the AGM presentation and absorbing some of the main points. I have bolded some of the points which I see are key drivers of future growth- there is strong reference to the recent infrastructure boom in Australia and to new enterprise agreements driving growth, and also to the OBOR.

I have not included the comments on Europe and the Middle East for reason of length.

It's a very strong presentation, so no wonder the short activity ticked up the following day in a tactical attempt to try to counter it.


"Our customers include Multiplex, CIMIC, John Holland and LendLease here in Australia, Chiyoda and Sumitomo in Japan; Bechtel, CH2MHill and Fluor in the US, Dubai Airports and the government in Dubai, Vinci in France and Siemens in Germany, to name a few.

Aconex serves over 30,000 projects worth well over one trillion dollars, across 70 countries. We have 5.4 million project users, managing 2.6 billion documents – a data set several orders of magnitude more than any other provider in the world.

We have delivered more successful projects, controlling more data, than any other system.

We will continue to invest in these relationships through our product and our customer service team, delivering better insights to our customers from this market leading data set.

In FY17, we delivered strong performance increases across all our regions. In the Australia and New Zealand market, our customers continued to standardize on the Aconex platform.

We signed 36 new enterprise agreements in FY17, including many first-time customers. 68% of revenue in this region is now attributable to highly recurring enterprise agreements.

Aconex is particularly well positioned to benefit from the increasing investment in civil and infrastructure projects. Many our key customers such as CIMIC, John Holland and Lendlease have won significant new  programs over the last 12 months and we expect to see an increase in revenue in this segment of the ANZ business.

Revenue in ANZ was just over 53 million dollars, extending the significant growth in this business at 19% annual growth from five years ago.

Profitability is high in the ANZ business showing the long-term growth and margins we can deliver in our other regions.

In the Americas, we are driving increasing awareness and referenceability as we grow our customer base, particularly in the key US market which increased 30%.

We have won some very high-profile infrastructure projects over the last 12 months, most notably with the California High Speed Rail and Mexico City Airport programs.

We have seen a strong ramp up in our user based customers with the total Bechtel, Fluor and Exxon user numbers doubling last year.

We continue to invest in sales and marketing, with sales headcount up 25%, and have extended our client operations team to support new customer implementations.

We are very excited about the opportunity in North America and Latin America and will continue to invest aggressively in growing the market.

It was a good year in Asia, as we have built out an increasingly diverse revenue base. A few years ago, most of our business in Asia was residential and commercial projects.

Over the last few years, we have transitioned this business to government & infrastructure – it now represents 60% of new sales in the region. Government funded infrastructure programs tend to be a lot more stable, so this will provide greater revenue certainty for the company.


US$13.3bn New Mexico City Airport- for Parsons and CH2M-Hill

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This post is based on my own research and is not investment advice. When making investment decisions, always DYOR.