Envirosuite Limited (EVS) Earnings Call Transcript & Summary

Welcome to our investor briefing presentation today, thank you for taking the time to join us. My name is Jeremy Gaedtke. I'm the Director of Marketing and Communications at Envirosuite, and I'll be moderating today's session. I'm joined here in the room by Jason Cooper, our CEO; Justin Owen, our CFO; and Andrew Barron, our Head of Product. We're also joined by some representatives from Hitachi Construction Machinery on today's call, and I'll let Jason introduce them very shortly. A very, very exciting announcement yesterday, which we're really looking forward to discussing and going through with you in more detail. Before we begin, just a little bit of housekeeping to get started. We will have time for Q&A at the end of today's session. We'll be taking questions in written form only, so please use the Q&A function in Zoom to submit your questions. [Operator Instructions] We're looking forward to the Q&A section of today's presentation, and we expect there's going to be a lot of questions. We'll do our best to get through as many of them as possible. But if we do run out of time in the session, we will come back to those unanswered questions via e-mail afterwards, and we will need your first and last name to be able to do that. With that, I'd like to hand over to Jason to begin the session today. Thanks, Jason.

Thank you, Jeremy. And as Jeremy opened up with, this is an incredibly exciting day to be sharing what we have been working on behind the scenes with Hitachi Construction Machinery. I think the overwhelming feedback that I received yesterday was really one of endorsement, strong validation that we're on the right path. And we certainly have signed an agreement with one of the world's leading mining companies. So we're excited to share this, get into depth, and as always, we want active questions in hand. So we are joined today, as Jeremy mentioned, with 3 people from Hitachi. So first of all, Motohiro Narao, Akio Hoshi and then Eric Winsborrow. Akio and Narao-san are in Tokyo, and Eric is calling in from Canada; also joined by the team here in Melbourne; and then certainly, probably the 7 who have been instrumental in getting this agreement done. We're certainly pleased that our Hitachi partners can join today. First point there is Hitachi and Envirosuite. We first met with Hitachi, right, back in November last year where I met Narao-san and Eric in Sydney, in offices. And what became apparent there is Hitachi had done a significant amount of homework around what were digital solutions in space, where are digital solutions that were driving ESG and which companies had that capability to really drive and have an impact around GHG emissions. And after an extensive search, Hitachi then reached out to Envirosuite. And our first meeting, albeit only lasting 1 hour, was then the pathway to then start to say, well, how can we actually drive something meaningful. And so we have spent considerable time since November understanding how each other's companies work, what our vision is, what our mission is, where we're driving towards, what our view of the market opportunity is and also what HCM's view is. And what has become very apparent is that the two companies are aligned. They're aligned on the fact that we need to have a commercial return for our shareholders, that we need to be driving growth, we need to be expanding what we can do, also understanding there's an enormous opportunity within the ESG and the net zero drive. To have a company like Hitachi to come in and knock on the door of Envirosuite is an incredibly proud moment. As I mentioned on the annual report, we are the world's leading environmental intelligence company, but to have that validation from a multibillion-dollar company was a great moment. This is now the culmination of the hard work that we have done in the background to get this agreement and the investment to support that growth. But as I was reminded yesterday, the hard work starts yesterday. This is about delivering results. I am focused on that. The team are focused on that. And so that will certainly be a strong part of what we communicate now and moving forward. We are an environmental technology company at our roots. And whilst we serve multiple segments, mining, industrial, waste, wastewater and aviation, this largely is about driving growth within mining. Now as we know, within our Omnis platform, it's an incredibly capable software platform, serving a multitude of different segments. And the investment will be going into driving the Omnis platform but with the primary view of accelerating our growth in mining. One of the key statistics that we called out in the financial results was our average revenue per site in the industrial platform has grown considerably over the last 4 years. A big chunk of that is coming through mining. And so that will continue to be a focus for us. We've added operations in the center of the image on the left. We want to be driving both from an emissions, a net zero and ESG as well as improvement in operations. When Justin and I were in Tokyo recently, we're sitting down with the mining BU managers and understanding day-to-day challenges that they're facing, plus also the vision of where Hitachi is going to. And you can see a strong alignment, leveraging our data science capability, our AI technology and our world-leading capability matched with the insights that Hitachi can bring. We will remain in real-time monitoring, but we will continue to be strong in the predictive capability, providing insight for our common customers. This image is what we used in the annual report, and there was no surprise that we used this image. Now we wanted to focus on mining. Our history and our results in '24 strongly suggested mining. But really importantly, this is going to be a strong driver for Envirosuite moving forward. We've included there our mission statement on the left. And it's an important one to have. When you bring two companies together in a proper partnership and collaboration agreement, you want to make sure that there are short-term goals as well as then that long-term vision. From every person that I've met within the HCM organization, it's strongly validated that there's a clear direction of where they're going. And we, fortunately, are absolutely aligned with that. And we can see that there is a significant market opportunity for both Hitachi and Envirosuite to be highly successful in this area. So you would have seen from the press release yesterday, and you would have learned a little bit around Hitachi Construction Machinery, if you weren't already aware. But the numbers from Hitachi are compelling: revenues of AUD 14 billion, they have served more than 400 mining sites and employ more than 26,000 people globally. For those of you who understand mining, you probably are not surprised by the image on the right of the screen. But that equipment is enormous. And they have got a really strong global footprint and highly successful in the areas that they operate in. They do have a core growth strategy as well, and that is going to continue to drive improvements in net zero emissions for mining. I want to talk through some of the problems then that we are starting to address. So ESG and net zero does represent a significant growth opportunity. This is just a statement for the market. Where I feel that Envirosuite is incredibly well positioned to do this is we've proven out our environmental intelligence technology around the world. We've proven this in a host of different regions and in domains. But if you look at what we have done within carbon emissions in aviation, that core technology has helped so many customers, such as Heathrow and Aena, around the world understand, monitor, measure and look at areas of improvement. Look at what we've done with NAV CANADA around the CANSO metrics and having a substantial impact on greenhouse gas emissions in the Canadian airspace. There's that science that we can use now to actually build out into this core capability. But we would not be successful in isolation. We need a strong partner to do that, and that is where Hitachi does come in. But let's look at the numbers about this opportunity. 4% to 7% of the metal and mining industry contributes to worldwide greenhouse gas emissions. This is substantial, but we all recognize we need mining, particularly in Australia, where we understand the importance that mining has to our GDP, to jobs, both to driving construction, to driving cars on the road. Although this is an outlier, up to 80% of direct emissions are coming from diesel-powered equipment on site. Yet only 0.5% is electrified today. The capital that is going to be required to invest in into the mining industry to tackle this problem is USD 800 billion. Now we will focus on a segment as we do, and we will become market leaders in that segment as we have continued to show. But this is about Hitachi talking about this as an ambition. This is talking about some of the world's leading mining companies. So you'll see there that 20 of the world's top 30 mining companies have publicly stated their greenhouse gas reduction goals. One of the good things about our press release today that I would encourage you to do is there's a substantial amount of reading and footnotes in each one of these, which has got strong validation in it. You'll see the logos on there, BHP Vale, Teck, Fortescue, Newmont. So the market cap of those companies is $679 billion. This is an enormous movement where companies who are well funded and have strong footprint within mining have stated those goals. On the right, we've put out four, but obviously, there's a lot more, and you can go in and have a look at their annual reports: BHP, Vale, Rio Tinto and Fortescue. Each one of those companies has clearly stated their goals as well as backing that up with direct investment in this decade. I'll pass to you, Andrew.

Thanks, Jason. Net zero is clearly a very unique and substantial opportunity, which probably stands to be one of the biggest transformations that the world will undertake in generations. Just last week, I had the opportunity to experience the conversation from the other side where Envirosuite and our team attended the Clean Air Society of Australia and New Zealand, a biannual conference. The speakers were world-leading neurologists, scientists and policymakers alike, with the overarching theme being the significant impact that greenhouse gases are having on the world today and how imperative it's going to be to change that trajectory. Envirosuite played a key part in the conference. We've provided 3 presentations on papers that we wrote based on emissions activity on mining sites and the like. We're also proud to say that we won the innovation award at the conference, which is a very prestigious award, that looked to us for our years and years of innovative contribution to the industry in Australia, New Zealand and globally. I think that talks to why Envirosuite is so proud to be selected by HCM as a leader in this field and identify that. To solve such a substantial problem, it's going to take more than just one of our companies, but it's going to take two of us working together with our vast experience in our own areas of specialization combined to make a really exciting outcome. When you look at the capabilities that Envirosuite brings through our environmental performance technology, our ability to provide insights to operators for things like air quality and emissions, carbon emissions, site operations, shift planning, engagement with their community, noise, vibration, always science-backed validation and calculations behind it, it's a perfect opportunity for us to leverage this into the operational space even further. We've said a number of times, part of extending our vision to reality is encompassing the operational impacts of the decisions that the environmental platform is making. So we're looking into where haul trucks get used, what their travel times are, what kind of shift planning gets done. But right now, we don't have access to all that information to significantly enrich that. If we look at it, when we add [ and match it ] to that equation, we get access to all that information and more from their substantial expertise in the field. Not to speak too much on Hitachi Construction Machinery's behalf, but if we look at it from their perspective, they are the world leading manufacturer of mining equipment with incredible success and strategy in envisaging and developing some of the best mining assets and constantly striving for greater efficiency for their customers who are increasingly demanding more environmentally responsible operations and strategies to do that. If you combine that with our ability to provide a site-wide digital solution to start extending their solution into that space, you have an incredibly compelling set of complementary capabilities. And together, that gives us access to untapped opportunities, which we are still working through the extraordinary size of. We'll get access to each other's customers, which we'll talk about shortly, and access to data that we can provide them to increase the value they get from us. With our combined environmental and equipment operations expertise, we'll work towards building ESG-related products to help optimization opportunities for our customers in the industry like no individual company has been able to do so far. So we're really excited about the combination that these two organizations are going to be able to leverage and take to the world. Now this isn't just a flash in the pan 1-year partnership. This is a multi-horizon partnership that will last many years and encompass strategy, corporate, marketing and sales parts of our organization. Speaking of flashes, though, there'll be an all-mighty flash later in September at the prestigious MINExpo in Las Vegas at the end of September. It's the largest mining conference in the world, only held every 4 years. Hitachi have invited us to join their substantial presence with one of the largest fans to meet some of their customers, many of which are the 20 or 1/3 that Jason referenced earlier with these GHG goals and targets. So we're really looking forward to extending those relationships and building from there. We're already working on some active opportunities together, and we're building out sales and distribution agreements already. That will be one of the first steps to drive short- and medium-term growth. There's also a lot of work to be done on the product and strategy sides. First, we're going to look at an iterative approach, taking the technologies and know-how we have today and combining them for our customers but then building out the foundations for what we can effectively deliver to the world in response to ESG and GHG emissions, monitoring them, managing them and ultimately reducing and optimizing them. So we're really excited for all of the phases that this partnership could bring to both organizations. Just as a great example, in some of our earliest conversations with the Hitachi Construction Machinery team, we discussed this customer, Glencore, which used to be named Teck, who you've heard us speak on a number of occasions about, and we quickly came to realize that we share a number of the same senior executive contacts and relationships. We're both talking to them about the environmental impact of the machinery on site, the strategies we can go about optimizing them or already providing with our own individual compelling sets of digital technologies. But if we're able to combine our data sets and work together, we would be able to deliver a wholly different solution that could transform their operation for 5, 10, 15 years, in what could potentially be the biggest revolution in how industrial operations manage GHG into future. So it's a really exciting tactical example of how we're going to be able to work with mutual customers and new customers together. Over to you, Justin.

Thanks, Andrew. So good morning. Just outlining our strategic investment and commercial partnership with Hitachi. So the partnership is covered by two agreements, the subscription agreement and the collaboration agreement. While both are key to the transaction, we are particularly pleased with the joint approach undertaken by Hitachi Construction Machinery to the partnership and the global resources that they have made available to us as we collectively move forward. Under the subscription agreement, Hitachi Construction Machinery is investing $10 million into EVS at $0.058 per share. Now this represents a 30% premium to our closing share price last Friday and the 7-day VWAP at that date. Based on this investment, they will hold approximately 12% of the company and will be the single largest individual shareholder. Now while this investment shores up the Envirosuite balance sheet, to enable us to pursue our stated growth goals within the industrial segment, we also have a committed partnership, details of which we've been discussing and will continue to. Importantly, the partnership enables growth and expansion of the EVS platform, utilizing our collective global footprint and, through this leverage, will enhance our gross margin improvement. I would now like to invite Akio Hoshi to comment on the collaboration agreement. Akio?

Okay. Can you hear me?

Yes.

Okay. This is Akio Hoshi speaking from Hitachi Construction Machinery. So I'd like to explain our strategy. So our digital mining strategy has two important pillars. So the first is to provide solutions that improve productivity of customer site. The other is to contribute to the ESG customer site. So this is our conclusion from past discussions with our customers. So we believe that a true solution provider is one who can provide a solution to customers about productivity and ESG. So Envirosuite already has solutions that contribute to the ESG of customer site and has also expanded into the mining industry. So combining Envirosuite's technology with our, for example, safety features based on data analysis can improve the working environment at the customer site more and more. And we believe that there will be a great synergy effect with our productivity analysis by fleet management system and asset-based analysis by our on-site mine. So we believe that we can achieve productivity optimization that take into account environmental parameters, such as dust, noise, vibration and GHG emission, so with a high-value solution with Envirosuite that achieves both productivity and ESG at the same time. That's all.

Thank you very much, Hoshi. That was very good. And this is something that we have worked together with Hitachi over the last many months to get to this point. So we certainly appreciate the confidence that you have in Envirosuite demonstrated not only by the dollar investment in it but also then the strategic part where you will then get a Board seat as well. And I think that's a really important one to help EVS to accelerate growth, with strong expertise. We certainly have enjoyed the engagement that we have had with Hitachi over those months. I want to address two or three things and then move to introducing Eric. One of the key things here is this is about, in the short term, driving sales growth. We're not going to come out with any stated number of sites that we're going to go for. But we are active in discussions, both with Hitachi and subsidiary companies, to look at ways that we can accelerate and bring this forward. And we've been very well supported today by the Hitachi Group. That is number one. Number two is the customers that they have got and that we have got, as Andrew has mentioned, right, we talk about it from a customer centricity perspective. These are customers who are signing off on large investment into moving equipment as well as our technology. I think it's an important one. And some of them we've learned over the many years around you want to be successful, you want to be talking to that customer group. And so we can see that validation from the Glencore/Teck side all back into Cerrejón as well. So we have got many, many examples where it's been successful. Importantly, we will resource for sales and marketing to support this. We will put people in that will support this to make sure that this is successful. And it's another key part around what does investment do for partnerships. Hitachi has provided us that platform, so now we continue on. But that does not deviate to our plan. We will still focus on driving to a positive EBITDA number as soon as possible. We will still drive to sustainable profitability. We have got a strong balance sheet now, and that's something that really gives us confidence to go and execute. But this is about a growth story underpinned by a commitment to positive EBITDA. So at this point, I'd like to introduce Eric. As I mentioned at the start of the call, I met Eric in Sydney back in November. Since that time, Eric has been down to Melbourne. We've met him in Brisbane. I've met him in Vancouver and also in Tokyo. Eric has got a very strong CV that you would have read today. But really interesting, Eric is lent into driving the strategy here about how we're going to drive the growth and what we need to do. Certainly, from a fellow Board member, I think Eric brings a huge amount of experience, global scale, understanding software and understanding technology. And he's about growth. When you look at the Board makeup, it's important that you have the right skills metrics on the Board to complement what we have and where we're going in the future. And certainly from Eric's expertise, he will make a very strong addition to the Board of Envirosuite. So Eric, I would like to pass over to you now to say a few words.

Thank you, Jason. Hello to everyone on the call. First, let me start off by saying how excited I am to be joining the Board of Envirosuite. It's an excellent team. And as Jason and Akio pointed out, we've been working together for months, so I can say that firsthand. We've also been meeting with the individual Board members. And I would say, to a person, and we've been working together for many months here, we all share the same view about how this is going to succeed and how we're going to do the growth that Jason just talked about. And that comes through having a long-term approach and a long-term strategy but also executing, in the short term, with detailed planning. And we've been working on both simultaneously. The other thing I would highlight, and Akio touched upon this, the very first day that we met Jason and the many times since, we've emphasized that Hitachi is entirely sincere when it talks about its vision of having environmental and social responsibility at its core. These aren't just words. They absolutely mean it, which is why Envirosuite is such a good partner because their DNA is the same. And we know that we have to balance this environmental need and social responsibility with the long-term productivity and profitability not just of this investment, which is key, but also that for our mutual customers and the communities that they serve. And in this way, we are entirely aligned. So quite frankly, we're very excited to be working together and are committed to the success of this investment. And we really can't wait to get started, which is really starting today. Thanks, Jason, off to you.

Thanks, Eric. Thank you for that, and I couldn't agree more. So looking forward to that. And as you said, it starts today. We've got to get those order books closed out and driving the growth. What we'll do is I'll finish off with a bit of an outlook and then we'll move into Q&A. Importantly, for us, we set this company strategy as a company running Envirosuite. What's been quite remarkable is how well the Hitachi investment supports our core company strategy. We haven't changed a single thing on this. It is understanding and supporting growth. It is focusing in on mining. We are focused on customer, customer, customer. And discussions are all around how does this benefit the customer, how does this benefit retention. Our strong recurring revenue business model is a strength of the company, and Hitachi can see that. But also understanding the customer, you're talking with Hitachi who's got 400 customers around the world there, deep domain expertise and that will certainly drive innovation now moving into product. We want to build high-value solutions. And what we have proven is we can successfully expand into new segments, into the core sectors we already serve. Arguably, we don't need to go and sell into any other sectors. Mining, we want to be #1 in that space. We want to have a strong footprint, and we believe we now have the right partner to accelerate that. We are about scale. We want to continue to drive scale and leverage the knowledge base, the contacts and relationship. However, as we do that, the sales and distribution agreement is an important agreement that will underpin that and will drive an efficient sales program. And we'll continue to invest into our people. And as Hitachi has 26,000 people, we're not that big, but we have a small number of [ environmentalists ] who are committed to this journey, strong expertise in data science and in artificial intelligence, and leveraging that technology to be the best that we possibly can. As we move into industry validation at the highest level, I mean, that is a headline statement. We did not seek this out. Hitachi found us. We're excited by that opportunity, and we've been excited from that first day in there that we are aligned in there. Ultimately, we see a significant market opportunity. We want to drive that growth in there, and we want to stay focused onto it. Our land, expand and scale strategy is critically important to do that. We want to have deeper discussions with our customers. And I think from Andrew, from Justin, from Akio, from Eric, from Narao-san, and all others, right, we're absolutely aligned on to that path. But importantly, we are committed to maximizing value for our shareholders on the back of Hitachi's investment as a publicly traded company in Japan as well for their shareholders. This is about providing strong returns to our shareholders. You may have seen today, and we did another market update, where we did appoint Colby as our new share Chair. Colby has been on the Board for the last month -- sorry, for the last year. And Colby has been a very active contributor into the company, and it's a really strong validation that Colby wanted to do it and also was elected, and he's absolutely the right person to be helping us through. So Colby, I might pass over to you to say a few words.

Yes. Thank you, Jason. It's clearly an exciting time at Envirosuite, and I'm pleased to have the opportunity to address our investors in this positive setting and announcing a strategic partnership that promises to transform our business in mining. It doesn't get much better than days like this. Before I get into some of that, though, I would like to take a moment to thank our outgoing Chair, David, for bringing me onto the Board just short of a year ago. It has been a bit more than a month, Jason. Clearly, you've enjoyed the time we work together, so it seems like only a month.

I welcome you.

Good. But David, thank you for bringing me onto the Board a year ago and providing an exciting opportunity to me. So thanks for your support and, frankly, for all your efforts to bring us to this point today. Secondly, I'd also like to start by welcoming Eric to the Board of Directors. I've spent time with Eric and I believe he brings a valuable commercial focus to the Board. The success of this partnership will be greatly enhanced by his active participation. So welcome, Eric, and let's get to work. As has been stated, Hitachi Construction Machinery and Envirosuite are strongly aligned. As I look forward, the opportunity to accelerate growth at both companies as we meet the needs of industrial companies, specifically mining companies, with world-leading environmental sustainability and operational performance technology is substantial and invigorating. Now is the time to lean into the success we have experienced in the industrial segment. The investment by Hitachi Construction Machinery will enable changes in our go-to-market approach, as Jason has already mentioned. It will allow us additional capability and abilities to open new doors and in reaching mining in around the world. I expect that the Board, the executive team and our go-to-market team will be highly focused on driving new growth. And in parallel, our executive team will drive financial performance off of the back of this momentum. So again, all in all, a really great day at Envirosuite. I'm excited to be here and to take the position of Chair and experience the great ride that we're all starting in on. So thank you for your time today. And back to you, Jeremy, I believe.

So thanks very much, Colby. That moves us into the Q&A phase of our session today. There's lots of questions coming through already. Thank you, everyone. [Operator Instructions] First question, the question is specifically around when we're going to be cash flow positive. Now I'm going to frame that a little bit differently because we did have our full year results presentation just a couple of weeks ago when we did speak about that at length. But what I would ask off the back of yesterday's announcement and what we've spoken about today, how do we see this agreement impacting what we said 2 weeks ago around our profitability goals? And also as well, to weave in another question from Lachlan Scott here as well, in terms of our new ARR aspirations as well. I might pass to you those stuff, Jason.

Sure. So our stated goals of driving towards a sustainable business, cash flow positive, it does not change, right? Absolutely, that is our core focus. And that is a discussion that we continue to have both at the Board level and also with HCM. Clearly, we're going to drive an investment though, right? So you've got to be able to return this investment of $10 million into something intangible. We want to accelerate growth in mining, and we can see that. But we will be measured in the way that we do that. Certainly, in the first 12 months, we are aligned around really driving sales and distribution agreement, which is signing on in what we sell today. And that's a really important part on that one.

Yes, Jason, I think from our perspective of cash flow, cash flow positive and profitability, the focus has never shifted. We are moving to that or we're transitioning into that cash flow positive and profitability over FY '25. The benefit of the investment from Hitachi is the ability to accelerate and our ability to leverage our gross margin. We've spoken at length about our ability to drive gross margin improvement as we scale and we've certainly set ourselves up for that. So again, excited to be able to leverage the footprint of both companies and to grow in a market where we're very well placed.

Just the last one on the question around ARR. Look, the mine opportunity itself is quite substantial. We need time, obviously, to validate around product, fees and where we want to focus in within net zero and greenhouse gas emissions in particular and understanding the integration requirement and opportunity that comes through that. But what is clear is that we need to review what is our addressable market. That has grown considerably on the back of this investment decision. We know that we have got a strong capability to deliver and execute into a cloud-based software. We know that our Omnis platform is highly scalable. It's incredibly capable. And I think that's a really important point today. The software platform is incredibly capable. So what we see here is being able to leverage the underlying technology capability today and then to accelerate that. So coming back to your point around gross margin, yes, absolutely, it is that. To Lachlan's question, this is an ARR growth story, right? We want to build that through. So that doesn't change. I will stay away from any number. Perhaps I'll say $100 million seems to be a good number to target. But it's something in front of us, right? $100 million is absolutely achievable, but I would suggest it's a significantly higher number on the back of what this opportunity is presenting.

Thanks, guys. A question from Ross Barrows, thanks for submitting your question, Ross, around our go-to-market strategy. So Ross picked up on the comment, A.B., I think, that you made around we're often talking to the same senior stakeholders with our customers. So Jason, maybe a question for you first, and you can direct it further if you want to. Can you tell us a bit more about what the go-to-market strategy is? Will Hitachi be selling Envirosuite to the end customer or vice versa? Will each opportunity have joint involvement from both companies? What's that going to look like?

Yes. Good question. So we want to be able to leverage the branding, the positioning, the relationships with Hitachi and Hitachi's subsidiary companies has got. So certainly, there will be a sales and distribution agreement to put in place, which will enable Hitachi, and Wenco in particular, to go on and sell that software as it stands today. That is something that, I was with Greg, our Head of Sales in Vancouver recently, starting to talk that one through. So that's already in motion. As Eric said, we've got to start now. But it's not that this is an exclusive deal either, right? And so it's actually who's the best positioned to drive that and come through. Ultimately, anything that we own on our platform, Envirosuite will benefit for, whether that's through, let's say, the sales and distribution agreement or direct. We will resource this, though, both with someone in the product team as well as in sales and marketing, and that really is about driving that adoption. A.B., anything to add?

No, I think that's spot-on.

Good. Thank you. A question from [ Alex Ross ]. Alex, thanks for sending in your question. A.B., I might direct this one to you. This is around this partnership announcement and talking to some of the partnerships we've announced in the past. What have we learned from our experiences with past partnerships like the GHD one? And what gives us the confidence that the partnership with Hitachi Construction Machinery is going to be successful?

Yes. So still vastly different in the way we've engaged up at this point, in the way we've already started laying the groundwork, for how we're going to progress. As much as we can, we've been able to do, before the announcement, we've engaged with their technology specialist teams and the go-to-market teams to understand if we have the same vision, which we clearly discussed today as being very well aligned. We've taken that vision to our customers, and they want the same types of solutions that we're both talking about offering. We have a channel to market, and we are very ready to work together in things like that sales and distribution agreement to make it a reality for our customer. That level of basic foundation hasn't been present in some of the previous partnerships that we survived before, especially to both being product manufacturing organizations, albeit software versus very large machinery and everything in between there. And we're very aligned. So that's really exciting. Hitachi brings a huge investment towards us that no other partnership has brought. So that brings a level of commitment from them to make this successful and take us to their customers and grow us as much as it grows their opportunity forward. So that's dramatically different from those previous partnerships that we've had. Eric's position on the Board further substantiates their involvement in direct desire to drive the growth of the organization going forward. And at the same time, just simple yet huge steps of inviting us to join them at the MINExpo booth and be proud to put us in front of their customers and start building those relationships out, from the very beginning of this relationship, are really exciting to have. So we're very excited by all the different aspects that we're going to be able to leverage in this particular partnership that's been different to the other ones that we've had.

Thanks, Andrew. And you've offered a nice segue to another question that's come through, which is around MINExpo. So the question was what are we going to be doing with Hitachi Construction Machinery at MINExpo. And I might take that one from a marketing perspective. So A.B. mentioned, I think, on one of his slides, that MINExpo is the largest mining event in the world, only happens once every 4 years, and obviously, very well attended as well. So Hitachi Construction Machinery are actually going to have one of the largest booths at this event in the main central theater. They're going to be having some mining equipment at this booth in the building, just to give you a sense of the scale, I suppose, of the booth and what this show is going to be like. We're very, very pleased and appreciative that HCM had invited us to join them at MINExpo and join them at that booth to launch the agreement together. So there's a few things that we're going to be doing there. Hitachi Construction Machinery has a presentation slide where they've invited us to co-present with them on what Hitachi Construction Machinery's vision for growth is, around net zero, which Jason mentioned earlier, but also to introduce us as the collaboration partner as part of that as well. So that's very exciting. And Greg Bracci, our Head of Sales, will be there in MINExpo delivering that presentation. We're going to be filming that presentation as well and doing quite a bit of filming around the booth to really capture a lot of content that we can then use to provide this further to our customers and potential customers going forward. So it's a really exciting opportunity. We're going to have a strong presence at the event, and again, really appreciative of the invitation and the opportunity to do that with Hitachi. The next question that has come in is probably one for you, Justin, what is the current revenue that we're getting per mining site, average revenue per mining site?

So thanks, Jeremy. The question on that one is relevant for our industrial sector. What we're seeing is around $150,000 ARR per customer. We see that as a variable because we have some of our mining customers that we have as an entry platform and then we've got some of our mining customers that are more mature that have a much higher and more significant ARR. In some cases, we are booking very high 6 figures. So it represents a growth opportunity in our land, expand and scale strategy that we've got in place. And with our Hitachi partnership, we'll see that opportunity to further expand in terms of being able to more quickly grow with ARR on existing customers and also more [ traditional ] ones.

Thanks, Justin. We'll make this the final question, just conscious of the time. And Jason, I think I'll direct this question to you. So off the back of this announcement and these agreements, what are we doing with the water and aviation parts of our business?

Okay. Good question. Look, we're absolutely committed to our water customers around the world. I did a recent trip where we're meeting some of our water partners in Asia and, as you said, the incredibly strong validation that we have got in there and a significant market opportunity. We have controlled the investment into the product as we announced more recently. And I think that's an important one to understand in that part. Aviation is central to the organization. And you can look at the footprint that we have, it gives us a global reach all around the world. We are world leaders in our aviation business, and we continue to innovate and drive growth in that part. As I touched on before, around what we've done within NAV CANADA, I think, it's a fantastic example of taking new technology, solving a very significant problem with GHG, and we're working with them to look at seeing how we can grow that out. So aviation remains a steadfast part of the organization and also underpins a lot of the technology and the innovation that we've got across the company. So certainly for both groups, it's the piece of the jigsaw, right, that makes sense. And certainly, from a revenue perspective, we should remind everyone that aviation contributes almost 2/3 of the total revenue of the company. So it's a strong contributor in that path.

Thanks, Jason. I want to thank everyone for submitting their questions during that segment. There were a few questions that we didn't get to. We will endeavor to come back to you after the webinar via e-mail. But Jason, at this point, I'll just pass to you for some closing comments.

Yes. Thank you. First of all, I would like to thank Hoshi-san and Narao-san for joining the call today and talking on behalf of Hitachi Construction Machinery. I think that was very nice of you to do that. I thank Eric for coming on as a Board representative. I think that will be a great path forward for the company. I'd like to welcome Colby as the new Chair to the company, and I look forward to working with Colby to execute the plan. We're under no illusion that this is still about a growth story, right, so we want to be driving growth and executing to that. So we'll do that. Certainly, to the mine customers around the world, we are really looking forward to talking to you, driving this collaboration forward and being successful into those markets, proving out that this investment is warranted and really having an impact. And I want to come back to that impact line and lay a little bit there the longer-term goal. Envirosuite is incredibly well positioned, being one of the most impactful companies in the world serving certain segments, mining being one of them. We have got that foundation. We have been around for a long time. We have got that domain expertise in place. And I believe we have the team to go and execute to that. So I think it's a strong validation of the path we've gone on, and where the future is going is incredibly bright. So to our shareholders that have joined today, I want to thank you. I think this is a fantastic achievement for the company and positions us for really sustained growth for many, many years and continued success through. As always, to our staff, I thank all staff in aviation, water and the industrial parts, to understand that we're all contributing on this journey together. So I thank everyone there. And lastly, our customers who are paying the bill, so we want to continue to serve you, and we want to continue to bring innovative products to market and to drive that growth and, importantly, to retain the customer part. So thank you for joining in. If you have got any questions, certainly send them through to our investor e-mail. Stay tuned on LinkedIn, certainly follow us, we will be announcing things. And the MINExpo in Las Vegas does seem like a great show. I have spoken to some investors in the past who have attended it. Certainly, if you go in there, go over to the Hitachi booth and introduce yourself. But thank you, everybody. Thank you for joining us today.

Thank you, everyone, and good morning.