Infomedia Ltd (BGLOBAL.BO) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. My name is Bart Vogel, I'm the Chairman of Infomedia Ltd. Welcome to our 2021 Annual General Meeting. The health and safety of our shareholders and our people is of paramount importance to us. In consideration of the potential health risk posed by the ongoing pandemic and the uncertainties around restrictions on public gatherings, we elected to hold this AGM as a virtual event. We remain hopeful that shareholders will be able to attend in person at our next AGM in 2022. Despite being virtual, we've made efforts to ensure that the meeting is delivered in a way that allows you, our shareholders, to attend and ask questions. Shareholders who were on the register at 7:00 p.m. on Tuesday, the 23rd of November 2021, are eligible to vote and ask questions at this meeting. Shareholders can ask questions in the virtual meeting format. If you're a shareholder, a proxy, attorney or representative of a shareholder and wish to ask a question about an item of business, please refer to the virtual meeting online guide, which was distributed with the notice of meeting. As well, it can be downloaded from the bottom right-hand corner of your screen under Downloads. If you have a written question you wish to submit via the online platform, you may submit it now. You do not need to wait until a relevant item of business to ask the question. All of your questions will be acknowledged and dealt with. Shareholders who have preregistered and received a unique PIN number will also have the opportunity to ask questions via telephone as outlined in the notice of meeting. If you intend to ask a question via telephone, please wait until the relevant item of business to raise your question. Please keep the questions brief. Questions sent via the online platform will be moderated to avoid repetition. And if questions are lengthy, we may need to summarize them in the interest of time. We will give all shareholders a reasonable opportunity to ask questions, but it is possible that not all questions will be able to be answered today. Shareholders are welcome to follow up with our Head of Investor Relations, Tanya Thomas, with any unresolved questions after the meeting. And as always, Tanya can be contacted using the dedicated Investor Inquiries page within the Investor Center on our website. If you are experiencing technical difficulties, which preclude you from attending this meeting live, a recording will be available to review after the meeting on the company website. At this stage, I declare that a quorum is present and declare the meeting open. I'd like to start by acknowledging the Ku-ring-gai people as the traditional custodians of the lands from which we are presenting today, and we pay our respects to their elders past and present. The format of today's meeting will follow -- will proceed as follows. I will provide an opening address, commenting on the performance during the year. I will then ask Jim Hassell, our Interim CEO, to speak about the company's performance, strategy and outlook. I will then ask our CFO, Gareth Turner, to provide an update on business reporting metrics. And finally, I will address the items of business in the order in which they appear in the 2021 AGM Notice of Meeting. For expediency, I will now take the notice of meeting as read. As mentioned, there will be an opportunity to ask questions and make comments about the operations or management of the company and any related matters at the appropriate times during the meeting. I'd like to thank those shareholders who lodged questions prior to today's meeting. I think we had 5 questions. And they will be -- and we have considered your questions, and either Jim or I will speak to the topics raised during our respective addresses to shareholders. To use the online platform, please click the Get a Voting Card icon on your screen, then enter your shareholder number or proxy number, complete your details and vote following the on-screen prompts. I'd now like to introduce our team of executives and directors who join me here today at our headquarters in Belrose in Sydney. Firstly, Dan Wall, our Company Secretary; Anne O'Driscoll, the Chair of the Audit & Risk Committee; Gareth Turner, our CFO; Jim Hassell, our Interim CEO and Managing Director; and Kim Anderson, the Chair of our Remuneration, People & Culture Committee. In attendance, we also have Warren Brugger, the Head of Infomedia's Asia Pacific operation; and we also have Infomedia's external auditor, Deloitte, attending this meeting. The audit partner, Ms. Pooja Patel, is available to answer any relevant questions you may have -- you may wish to ask in the meeting, and I thank her and Warren for being in attendance at today's AGM. Let me then turn to the Chairman's address. On behalf of Infomedia Ltd and our Board, thank you for your support during the year. To our customers, thank you for your partnership during the year. Our purpose is to offer software, applications and data solutions that support your key objectives of increasing aftersales revenue, creating value-added customer experiences and retaining customers to your remarkable brands. I also want to thank our team, many of whom are on the call this morning, for their persistence, their hard work and commitment to our customers during a challenging year globally. Let me start by talking about our F1 '21 highlights and achievements. I'll aim to address some of the key disruptive forces impacting the global automotive industry before handing over to our Interim CEO, Jim Hassell; and our CFO, Gareth Turner. Let me start by saying the Board is feeling very confident about the business and the opportunities we see ahead. We've confirmed this morning, we remain on track to deliver revenue in the range of AUD 117 million to AUD 123 million for the FY '22 full year. Looking back, Infomedia Ltd finished the year as anticipated, delivering a solid financial performance overall. Revenue was up 3% to $97.4 million, but was up 7% in constant currency. EBITDA increased 3% to $47.6 million, in line with revenue, while cash EBITDA declined 4% to $20.4 million, reflecting the significant development costs incurred in our Next Gen platform build. Pleasingly, we saw a 13% increase in our exit ARR, or annual recurring revenue, in constant currency as of the 30th of June 2021 to $98 million. And that is before we include the ARR associated with our acquired SimplePart business. You will see this in more detail later in the presentation when Gareth presents his section of the proceedings. This reflects some normalization from COVID-19 impact as our customers reopened and the contribution of some new business wins that we announced during our August results announcement. Your Board declared a final dividend of $0.023 per share, bringing the total dividend to $0.0445 per share, a 3% increase on the prior year. Importantly, as we focus on strategic wins, we've secured major significant global customer wins since I last addressed you. This includes 3- to 5-year contracts with major OEMs, including Ford, Mazda, Audi, Nissan and BMW, amongst others. Jim and Gareth will provide some further insights into our sales momentum and provide some case studies that illustrate the breadth of our solutions. The 12 months to 30th of June was also characterized by 3 major achievements. The first of these was the completion of the transition from our legacy software to Next Gen, which is a data-driven integrated parts and service platform. The Microcat's electronic parts catalog, or EPC, was upgraded from a technical reference tool to a powerful parts selling platform. The Superservice Menus platform was also substantially upgraded and streamlined, adding more value and more insight for our customers. Investment in the Next Gen platform was necessary. We are a relatively small company competing against -- competing globally against much larger peers. We've been agile and entrepreneurial for years, but the foundations, the architecture of our business required updating, and we took the opportunity to ensure that we remain competitive for many years to come. With the Next Gen platform, we're able to support our customers' transition from selling parts and services separately to enabling an integration of the aftersales function with digital applications and data solutions that can be actioned. The value to our customers is shifting from a transactional relationship to the creation of a consistent, individualized and extended customer experience with the automaker brand. This is a fundamental shift in the automotive industry. Next Gen was rolled out successfully to all of our 220,000 users in 186 countries during the year. 92% of users reported that the new Microcat EPC, a mission-critical tool, makes them more efficient when identifying parts and preparing customer quotes. Next Gen was also central to winning the Ford Europe contract, the major contract that we announced earlier this year. The next significant outcome during 2021 was an increase in sales of our Infodrive and data insights product. Our Infodrive exit ARR, or annual recurring revenue, grew by 41% in constant currency in the year to 30th of June. Technology advances in manufacturing and digital transformation are driving a significant increase in the availability of valuable automaker dealership and customer data. Infodrive collects, analyzes and identifies opportunities for automakers and dealerships to make faster, personalized and more profitable decisions in aftersales. And finally, in June 2021, we completed the acquisition of U.S.-based automotive e-commerce platform, SimplePart. This is an exciting business and an important strategic extension of Infomedia's global platform offering. Traditionally, automakers have had limited direct contact with their customers, but consumers are demanding opportunities to connect with brands in a digital environment. Automakers and their dealers are looking for opportunities to support their customers online beyond the original purchase of a vehicle. We are excited about the cross-sell opportunities that we've already identified with 2 deals closed in the last few months between our Infomedia sales team and the SimplePart team in all our regions. This year's achievements coincide with a time when the automotive industry is evolving. Technology is disrupting all aspects of manufacturing. The pandemic and a focus on climate change globally will also have a lasting impact. Let me now turn to the opportunities we see as we transition to a new chapter in the company's growth. On the matter of executive transition, firstly, let me highlight that Non-Executive Director Paul Brandling, who was with us last year, resigned from the Board for family reasons, paving the way for the appointment of Jim Hassell as Non-Executive Director. Jim joined the Board in May 2021 after Paul's departure in March. In October, Jonathan Rubinsztein resigned as CEO to pursue another opportunity in the technology sector. Jonathan made a significant contribution to the company's setting in place several strategic initiatives that will contribute to Infomedia's growth. Jim has now stepped into the Interim CEO role following Jonathan's resignation. Jim has had an outstanding career as a technology executive, and the Board is very confident that the business will maintain momentum under his direction. Once the new CEO and managing director is appointed, our aim is to have Jim report -- return to the Board as a Non-Executive Director. The recruitment process for our new CEO is well underway, and we'll consider both highly credible internal as well as external candidates. Let me just comment that our shareholders expect us to conduct a thorough search to ensure that we secure the best possible candidate, whether they be internal or external. There's been an understandable external focus in recent months about the departure of Jonathan and our former CFO, Richard Leon. And while their departures were earlier than we would have liked, they do present an opportunity for other leaders in the business to step forward and for the introduction of new skills, ideas and relationships to the business. Gareth Turner, our new CFO, joined Infomedia in August. In the very short period that Gareth -- in a very short period, Gareth has put in place several processes to enable better internal reporting, laying the groundwork to provide an improved level of transparency and analysis of our business and our key metrics. Gareth will share the early results of the finance team's effort under his direction later this morning. Jim and Gareth, importantly, are supported by a very experienced executive team. The average tenure of our senior leadership at Infomedia is nearly 9 years. This includes several founding members who bring decades of industry experience and experienced executives who've joined us through M&A and team members who've been recruited in the last 5 years, adding depth and capability to the team. The Board has a high degree of confidence in the executive and the broader leadership team to continue to drive the growth and innovation of this business, a long-standing hallmark of our presence in the industry. Let me address the question of a war for talent. The technology industry, along with other sectors, is facing an unprecedented war for talent, the lack of global mobility of talented professionals, combined with new ways of working, and a rapid transition to global digital disruption have created a real challenge in recruiting and retaining staff. But as much as that's a threat for us, it's also an opportunity. We continue to invest in our people. And through the year, we've introduced several initiatives to ensure we are competing for the best talent in all our markets. These initiatives focus on attracting, recognizing and rewarding outstanding contribution and retaining our team members with programs that support their whole lives, not just their careers. On the question of capital management. Our strategic -- our shareholders often ask us about our capital position and our progress on M&A initiatives. Infomedia has a strong balance sheet and is a highly cash-generative business, with more than $65 million in cash and equivalents as at the 30th of June 2021. The company has no debt. In April 2020, at the height of COVID uncertainty, we raised capital. At the time, management was in advanced stage discussions with several potential acquisitions, including SimplePart. Debt markets had effectively closed in Q1 of 2020. And our judgment was to bolster the balance sheet to provision both for uncertainty and for opportunity. With the acquisition of SimplePart earlier this year, we allocated approximately AUD 40 million, comprising an upfront consideration of USD 24.5 million plus an estimated earnout over the next 3 years. The Board supports the strategy of acquiring logical product and footprint expansions, which are close to our core and which are accretive to earnings. We continue to refine our approach to acquisition targets, and we're confident that the opportunity to add to our portfolio remains strong. Let me just add here that we have a competitive and disciplined M&A program, which assesses opportunities in each region with support from the regional leaders as well as from a number of investment banks who have been supporting us in our search with the right opportunities. So we are looking in both the application space as well as in data solutions place and addressing both inbound and outbound opportunities. But we've been disciplined in not pursuing deals that are not on strategy and disciplined in not pursuing deals that are not going to be accretive to shareholder value. Finally, through our dividend policy, we will continue to deliver a return to shareholders. We expect that dividends will continue to reflect the steady growth in our business. I also note in response to a question we've received from a shareholder that the dividend reinvestment plan will remain suspended until further notice. Let me move then to our investment in the future. I spoke earlier about the successful transition from our legacy software to the Next Gen platform for our Microcat and Superservice applications. This investment was necessary and important step for the business. We were determined to complete the biggest development in the company's history. Simultaneously, of course, our revenues were impacted by the impact of a global pandemic. So the combination of these 2 factors resulted in a high ratio of R&D to revenue in the 2021 financial year, which we acknowledge and recognize. But it has also placed us in a position where we are competitive now, supporting our customers and able to underpin our growth in our core products and our data services revenue. Gareth will talk later about the measures which are underway to provide greater insight into our R&D spend going forward, which we believe will see a revised focus in our R&D and improved ratios post Next Gen. As a trusted strategic partner to automakers, dealers and suppliers to the industry globally, Infomedia is well-placed to support customers as they increasingly turn to technology to solve complex issues and identify new areas for aftersales growth. An increase in software-driven features and functionality in automotive, operating and safety systems is driving connectivity and an explosion of data in the automotive sector. Opportunities to leverage VIN-specific data into our integrated parts, service and e-commerce platform, combined with decades-long knowledge of customers and global automotive aftersales has meant that Infomedia is well-placed to respond to trends emerging from the sector. Our strategic focus to become the leading SaaS provider to global automotive aftersales and the achievements delivered during the year are well-aligned to these global trends. In the lead up to today's meeting, we've received several questions about the impact of EVs or electric vehicles for Infomedia's business model in the future. But as electrification, automation and shared mobility models become a greater percentage of the global car park, customers will visit dealers differently than they do today. Dealerships will transition from a traditional business model of selling parts to a future where dealerships evolve into providing customer experiences. Parts and service will become more heavily reliant on accurate and timely information, which is specific to each car and to each owner. Importantly, new opportunities will emerge. Automakers and dealers are investing in their own businesses and new technology to ensure they move beyond selling siloed products and services to a model focused on creating real customer engagement with their brands. And we should all be very familiar with this concept. We all have a mobile phone, but they're more than just a phone. They've become digital devices, which have fundamentally changed the way we live and work. We are accelerating very quickly, in our opinion, to a future where the automobile is another digital device. And in our core parts and service applications, our ability to deliver value-added data solutions to automakers, dealers and suppliers in the wider ecosystem creates a unique and differentiated position for Infomedia. The addition now of SimplePart will change the game for our customers, enabling them to move to new segments and engage directly with their customers. Today, e-commerce companies have between 5% and 10% of the automotive car parts market share, and that is expected to double by 2030. Infomedia's core applications, our investment in technology and new capabilities underpin our future growth as data and analytics become central to value creation and business innovation for our customers. Value-added and VIN-precise data, intuitive applications, technical knowledge, global relationships, actionable data solutions and our decade-long -- decades-long experience in automotive aftersales will be vital to our success. Let me close by acknowledging the difficult conditions for our customers, executives and employees that they've all endured this past year around the world. It is remarkable that we were able to conclude our SimplePart acquisition without being to travel to Atlanta to meet the owners. Similarly, our sales teams have worked and our service teams have worked very closely with our customers through this environment. We thank them for all of their efforts. We also thank them for the very positive customer feedback that we've received for our products, both here at Infomedia and with our new team at SimplePart. I want to acknowledge the contribution of the management and the Board and thank them for their support and efforts during the year. At this point, I'd like to now hand over to Jim and will return shortly to run through the formal business of the meeting. Thank you.

Thanks, Bart. Good morning, everyone. I'm Jim Hassell. It's good to be with you this morning. So this morning, I'd like to spend a bit of time just to provide my initial thoughts on Infomedia, having stepped into the CEO role about a month ago. And my comments are intended to explain, in a bit more detail, some of the observations of the Chairman shared this morning and the strategic focus of the business and the opportunities that we see emerging. So in a little while, I'd invite Gareth Turner, our CFO, to present on the strength of the business model and the recurring revenue model as well. But first off, let me start with the observation that although Infomedia solves challenging industry problems, it really provides customers simple, easy-to-use business solutions with a lot of opportunity for growth, and I want to try and explain this today. And the reason I say it is because I've received feedback on several occasions that at times we seem complex and difficult to understand. So Infomedia serves the global automotive industry, specifically to help automakers, OEs, national sales companies, NSCs and dealership networks generate customer engagement and profit from vehicle servicing and genuine part sales, collectively described as aftersales. The sale of genuine parts is very important to the OEs and dealerships who generate a growing amount of their profit from aftersales activities. So helping OEs, NSCs and dealers realize the opportunity in the aftersales market is high value to them, and Infomedia is one of very few companies that has a genuine global aftersales offering across parts and service. Our applications are delivered as Software as a Service. They manage key aspects of the service life cycle, including replacement parts identification, vehicle inspection, service quoting and marketing campaigns to build customer engagement and retention. Those applications are powered by a huge amount of disparate data sourced from manufacturers, dealers, vehicles and ecosystem partners. Our Chairman spoke earlier about the importance of Next Gen. And you'll see on the slide before you that prior to Next Gen, our solutions -- sorry, can we go back a slide, please, guys? That one. Thank you. So I'm on Slide 12 here. Prior to Next Gen, our solutions were more stand-alone in nature. The parts catalog was predominantly in the domain of the parts' interpreters in the back-of-house parts department and the digitized service menus and vehicle health check solutions supported the front-of-house customer service managers. Post-Next Gen, and if we move on to Slide 13, post-Next Gen and with the addition of SimplePart and leveraging our extensive data knowledge and assets, we have built an applications platform with greater integration to better serve our customers. The data solutions business is delivering rapid growth and will, I believe, continue to provide that for many years. The investment in Next Gen over the prior 2 years has also strengthened our relationships with global customers. Platform strategy has identified customers in new segments in our ecosystem. And importantly, provide a new source of growth for our customers and for Infomedia. And the platform strategy also allows us to add to both areas organically and through acquisition. So I want to spend a little bit of time now talking about the data and the data platform. Our core application platform supports the growth of our emerging data solutions business. It's the application capability that we're leveraging to create a high-growth data product portfolio that serves all of our customers in the ecosystem, automakers, distributors, dealers, consumers and technology partners. For our parts solution, data comes to us in many different formats, and it's difficult to use as single point of information. So for example, we receive 134 different files from 1 OE relating to different vehicles and parts catalogs. We convert that into 1 clean integrated set of data that's updated in real time in the applications with the latest OE information. This standardization and accuracy drives meaningful productivity gains for users of the applications. Our service solutions are supported by a team within Infomedia of ex-dealer technicians who understand the repair process, take the raw data from the OE together with guidance from repair manuals to complete the entry into our proprietary production systems, which makes them so useful. The data is enriched, by which means we have data by individual car, everything on that car from its technical specification, service intervals, repair operations, parts kit and even accessory fitment. The value add to our customers is the breadth and depth of Infomedia's VIN-precise data assets, together with intuitive applications that streamline the parts selling process and make the service process very efficient. Our ability to combine real-time parts and service data with value-added technical knowledge, global, regional and local relationships and efficient processes, delivers insights to the OEs, NSCs and dealers that they can't access on their own. Our systems are also designed to manage new data sources from emerging technologies such as connected cars. We add value that empowers OEs to take advantage of technology-enabled innovation, harness more data, derive more insights and offer more digital-first aftersales experience. I'd like to try and bring that to life now by providing some examples of how our customers are using our applications and data solutions to grow our aftersales and offer to their customers a more engaging and transparent service life cycle experience. So firstly, if we look at our connected car data solution, it captures and analyzes connected car data to generate actionable insights for customer communication. BMW Australia wanted to leverage the valuable data being recorded from their connected car fleet to improve timing and relevance of communication to vehicle owners during the life cycle. They were also looking for a way to map connected car insights back into their traditional dealer data sets to improve the quality of the customer experience at every point of engagement. Taking the raw data generated and turning it into actionable solutions, Infodrive provides BMW with improved repair forecasting, automated and targeted sales and service campaigns and an elevated brand experience for vehicle owners. Most importantly, the execution of these insights are in the main hands-off with full automation via a variety of applications that drive, monitor and report on communications 7 days a week and at times that best suit the vehicle owner. The BMW Connected Car solution was able to be delivered by Infomedia through our Nidasu business, now part of our Infodrive data solutions. That has shown rapid growth since acquisition, and we believe it has got tremendous scope to continue that. In June, we completed our acquisition of U.S.-based automotive e-commerce platform, SimplePart. We're really excited about the SimplePart business. The acquisition is highly strategic and complementary as it expands and enhances Infomedia's value proposition to our customers. Infomedia's traditional parts and service applications enable the servicing and sale of original manufacturer parts through the physical dealer network. However, there's a large and growing online market for sale of parts for any given manufacturer, and it's important for them to be able to service this market as consumers shift online for purchases. SimplePart provides a platform for online sales of original parts. Again, from a customer perspective, one I want to highlight here how SimplePart works with Subaru parts online. SimplePart delivered a turnkey e-commerce program for dealers to easily sell genuine parts and accessories online. The solution includes a branded online store, search engine optimization, marketing agency services and onboarding support that made it easy to get started. Converting large volumes of technical catalog data to be customer -- consumer-centric was critical to the success of the portal. SimplePart's data enrichment process ensured Subaru model descriptions and parts catalogs were intuitively presented and could be understood by nontechnical consumers. The solution has helped Subaru achieve double-digit growth -- annual double-digit growth of online sales since 2014. SimplePart is a market leader in e-commerce for automated parts, which provides this capability for manufacturers and dealers. SimplePart has got a fantastic presence in the U.S. market, combining with Infomedia gives ready access to both a European and an APAC marketplace with established customer relationships and a now bigger value proposition. We're already starting to see the fruits of this with e-commerce wins at Hyundai in Ireland and at TECO in Australia. The last example I'd like to share this morning highlights the solution we've developed for Mazda Europe, which was included in the recently won contracts announced at the full year. The solution is currently in pilot and illustrates a growing area of Infomedia's business. It also illustrates the cross-platform synergies we are building by using aspects of both Infodrive data solutions and Superservice applications to deliver a differentiated outcome. This solution provides Mazda the ability to integrate and standardize service data for 22 local markets in Europe into 1 centralized consumer-facing platform. The data is used by our Superservice Connect application to provide Mazda vehicles owners an easy-to-use branded website to view pricing and make service bookings. Infomedia's data management tools provide the Mazda markets the ability to localize content relevant to their own customers. All aspects of parts and labor pricing can be uniquely managed by each dealer. Data and insights are also integrated with Mazda's Europe's IT systems to underpin investment strategies for marketing, customer retention and dealer performance. The data solutions we offer are an emerging marketplace with high barriers to success. Would-be providers not only need to access the raw data but also need the capability and understanding to turn that into something which is useful, valuable and actionable for customers. There's a continuous requirement to clean the data, put it into a usable format and keep updating it, which makes it a highly specialized field. This is a nascent area and new uses of data solutions are constantly emerging. As such, we see much faster growth in this and anticipate that will be the case for the foreseeable future. I hope you can see from what I've talked about this morning that the combination of the application solutions, data solutions, industry expertise, and long-term customer relationships give Infomedia a very powerful offering to OEs, national sales centers and dealers, both now and into the future. And now I'd like to hand over to Gareth Turner, our recently appointed CFO. Gareth and his team have been analyzing our business to provide greater transparency on some of the numbers which support the presentation myself and Bart have just taken you through. This is a work in progress. And what you see today is the start of the journey, which we will build on over the coming months. Gareth?

Thank you, Jim. Good morning, everyone. Today, marks just over 3 months since I joined Infomedia, and it's my pleasure to have the opportunity to speak to you this morning. This has been a very busy period for me getting up to speed on the business, meeting as many people as possible and working closely with the finance team, the leadership team and, of course, with Jim in his transition into the interim CEO role. We mentioned at the full year results presentation in August that we would provide some additional revenue metrics and analysis at the AGM, and I'll be pleased to take you through that shortly. In addition, I'd like to talk about some of our own early observations as I've gotten into the details of the business and provide some color around further reporting enhancements that we are working on and hope to release in the near term. Slide 19 shows Infomedia's total revenue by year from FY '16 to FY '21 in reported AUD and in constant currency, and our guidance range of FY '22 of $117 million to $123 million. The constant currency calculations take the average exchange rates for FY '21 and show what the reported AUD amounts would have been for each year back to FY '16 had that same FY '21 exchange rate been in place throughout. This eliminates currency fluctuations over time to give a better insight into the true underlying revenue performance, and which shows sustained organic growth in the business. All constant currency measurements detailed in subsequent slides are calculated in the same way. As shown in the slide, we have had 6 years of steady growth in total revenue. Something that has impressed me greatly about Infomedia's business is its significant proportion of revenue -- recurring revenue. Generally, more than 95% of Infomedia's revenue is recurring, and we'll highlight some of that in the subsequent slides. Moving to Slide 20. Accounting numbers often suffer from lag effects where customer wins take time to roll in and customer losses take time to roll out of the historical reported numbers. For this reason, annual recurring revenue, or ARR, can be very informative for businesses with strong recurring revenues like Infomedia. ARR immediately reflects the annualization of a business's recurring revenue profile at each point in time, is therefore more comparable across periods and often is more insightful as to the true operating performance of the business. This slide shows Infomedia's ARR by month from July 2015 to June 2021 in reported and constant currency, with and without SimplePart, which was acquired with effect from the 1st of June 2021. Focusing on the constant currency solid blue line, one can see that Infomedia enjoyed a strong and sustained increase in ARR from about $70 million in January 2018 through to about $90 million in January 2020. Unfortunately, as we all know, this is when the effects of the global COVID-19 pandemic started hitting into which Infomedia and the automotive industry weren't immune. ARR declined to $82 million in April 2020, a period during which Infomedia supported customers by providing COVID-19 credit notes and relief during the worst of the first pandemic shutdowns. Even so, Infomedia's ARR proved to be remarkably resilient through the pandemic, which had much less of an impact on Infomedia than on many other companies and industries during that same time. In addition, through FY '20 and the first half of FY '21, Infomedia embarked on one of the largest development projects in the company's history, Next Gen, to transition to the next generation of its Microcat and Superservice applications. While I wasn't with Infomedia at the time, I've certainly heard about the mammoth effort that Next Gen entailed, and I have no doubt that as important as it was, it would have been a headwind to Infomedia's growth over that particular period. Now with Next Gen complete, Infomedia deploys innovation that moves beyond a stand-alone technical reference tool to an integrated parts-selling platform. As one of very few global service providers, software providers in both parts and service, Infomedia is now in a distinctive and enviable position to leverage information and transaction data that is often trapped in disparate operational manufacturing and dealership systems. Infomedia's ARR started to recover towards the beginning of FY '21 and has been on an upward trajectory since. The linear trend line on the ARR, excluding SimplePart, shows a significant lift in Infomedia's organic ARR over this period and reveals a positive ongoing momentum in the business with ARR established back above the trend line. ARR finished FY '21 at $98 million, excluding SimplePart, and $112 million in total, including SimplePart. Remembering, of course, that this is the annualization of the recurring revenue only and any onetime revenues over and above these numbers. With the worst of COVID hopefully behind us, being on the other side of Next Gen, seeing SimplePart start to contribute strongly and everything else I've seen so far provides confidence for continued ARR growth and delivering our FY '22 revenue guidance. Slide 21 shows Infomedia's ARR split by product class. As Jim explained earlier, Microcat, Superservice and SimplePart together make up our application platform with Infodrive in various parts, service and data analytics comprising the Data Solutions portfolio. Where applicable, historical numbers have been recategorized to put revenue into the appropriate classifications. For example, certain revenue earned from giving access to Microcat APIs in the past were recognized within Microcat or parts revenue. This has now been captured under Infodrive, recognizing that this is a component of our Data Solutions. And this is the way we intend to split and report on Infomedia's revenue going forward. The bulk of Infomedia's revenue is from Microcat and Superservice, which generates very sticky recurring revenue with stable and consistent underlying organic growth. Given the long relationship that Infomedia has with its customers, and the critical nature of the services we provide, we're in the fortunate position of being able to see what matters most to our customers and to gather an incredible amount of rich data in supporting their businesses. These 2 things form the basis of how Infomedia thinks about the cross-sell opportunity and has driven the investments in our 2 newer product classes, data through Infodrive and e-commerce through SimplePart. This is a key capability of Infomedia that I'm most excited about, the ability to leverage a sustainable competitive advantage that we have through global strength and customer stickiness in Microcat and Superservice to continue to pursue new higher-growth product classes. One can already see the success of this strategy with data. Having started out small, data has accelerated quickly with the Nidasu acquisition in December 2018 and has continued to deliver some of the biggest growth in Infomedia's ARR to date. We expect this to continue to grow into the future at a solid rate. We are focused on replicating the success with our new e-commerce offerings spearheaded by SimplePart. The highly strategic SimplePart acquisition, which completed in May 2021 is the latest exciting new product class with global application that will leverage Infomedia's strength in our other global product offerings. As we heard earlier in Jim's presentation, even though it's early days, SimplePart has already started to close e-commerce opportunities in EMEA and APAC with the help of Infomedia's teams on the ground in those locations. It remains a key part of Infomedia's strategy going forward to continue to complement organic growth by making strategic acquisitions that will either strengthen an existing product class or add a further layer of new higher growth revenue streams. Slide 22 is the ARR split by region. And this chart talks about the story of not only Infomedia's global reach, but also of its spread of recurring revenue globally, that Infomedia's ARR is so well spread between regions reduces regional concentration risk and is a significant positive feature of the business's recurring revenue profile. While all regions have experienced growth, APAC and EMEA have performed the strongest, and we expect that, that will continue. We haven't seen the same level of growth in the Americas, but we continue to see the region as an opportunity. We have a solid base of sticky customers and see an opportunity to accelerate growth by replicating cross-sell opportunities that have been effective in APAC and EMEA via our dedicated and reinvigorated team on the ground plus new data partnerships. The SimplePart acquisition also provides increased scale for us in the Americas region, with the spike at the end of the chart reflecting the inclusion of SimplePart in those numbers. On Slide 23, we've shown some of the output of work that we've started on analyzing ARR by customer cohorts. This slide shows the ARR dollars and percentage mix by customer cohorts as at June 2017, '19 and 2021, excluding SimplePart. The analysis shows 3 key things: number one is that Infomedia supports customers right across the spectrum of industry participants globally from the very large OEM relationships through to large NSCs, dealer groups and down to individual dealers; number two is that these interactions across the industry spectrum are well spread, as evidenced by the spread of Infomedia's ARR across cohorts from the large to the small. This is important as it highlights how Infomedia is not biased by or beholden to any particular industry participant. This engenders trust at all levels across industry players engaging with Infomedia's platforms, services and product and data offerings. Infomedia plays a trusted intermediary role, essentially serving all levels and competing with none. Point number three is that the customer cohort mix and therefore, Infomedia's position in this industry dynamic has been stable over time. Each customer cohort has, in fact, grown in ARR over the period and contributed towards Infomedia's overall ARR growth. In percentage terms, the middle customer cohort, those with ARR of between $100,000 and $1 million, has increased in share over time, reflecting a focused strategy to target NSC and dealer group market opportunities, which gives us a better spread of revenue, lower risk and also positions us very well for larger opportunities in the future. Very large ARR opportunities only come around every 3 to 5 years. We have not lost any very large deals in the space and have in fact secured renewals with some of our largest key customers. We're also very aware of shareholders' interest in having more insight into Infomedia's research and development expenditure and the return the business gets from those investments. As we progress down this analysis path, we are working on enhanced reporting and disclosures, which we hope to start showing during 2022. As I said earlier, it's been a very interesting and busy 3 months for me, but I'm thrilled to be a part of the Infomedia team. Just echoing Jim and Bart's points earlier, I also feel like Infomedia is in a great place with good momentum behind it. I hope you found the analysis of some of the earlier ARR slides useful, and I look forward to us being able to show further enhancements to our financial reporting and analysis soon. I'll now hand you back to Jim. Thank you.

Thanks, Gareth. And I'd just like to take a couple of minutes now to describe how I see the opportunity for the company going forward. We are undoubtedly in a rapidly changing industry, and that's going to see much movement over the coming years. Four of the major changes impacting the automotive industry are connected cars, autonomous vehicles, shared vehicles and electric or zero emissions vehicles. I believe that Infomedia is well-placed to play a significant role in these major market shifts. Currently, our catalogs contain data for several electric and hybrid models across our customer base. And we know from customers that electric or zero emissions vehicles still need aftersales support. We have the applications and data solutions in place, together with long-term deep relationships with OEs, NSCs and dealerships to help them on the journey to zero emissions vehicles. In terms of connected vehicles, they're predicted to generate around 30 terabytes of data every single day by 2025, a staggering amount of data, roughly the equivalent of 10 million e-books per day. Manufacturers and dealers need to find ways to capture and use the different data sources to understand correlations and patterns that add value in the aftersales life cycle, including personalized customer communications, optimized parts planning, customer retention and reducing operating costs. Infomedia is experienced in taking large amounts of data and converting that into solutions, which help generate revenue and profit for automakers and dealer networks, will be hugely valued in this environment. With regards to autonomous cars and shared cars, they're likely to play out over a longer timeframe than electric vehicles and connected vehicles. Those market trends will also be characterized by the vast amount of data that they generate and will need organizations with industry knowledge, data management and analytics capability to turn that into real solutions. Infomedia's track record means we are well-positioned to have a meaningful part to play in these 2 as they take off. So I'd just like to summarize then. So to start with, we are on track to meet guidance and deliver revenue in the range of $117 million to $123 million for FY '22. We've got good momentum in the first quarter, in line with our expectations to achieve that. The company is well-placed to continue to play a very significant role in a rapidly evolving automotive industry with our existing offerings, complemented by some well-placed acquisitions. At this time last year, we delivered an aspirational target to double revenue over 5 years, and that remains in our goals. My introduction to Infomedia has been dynamic, and I look forward to working closely with our executive and Board as Interim CEO. I thought I'd share my priorities with you, which are: firstly, delivering FY '22 financial results in line with expectations; secondly, improving our value propositions for both customers and staff; thirdly, ensuring we have the right mechanisms in place to manage and scale the business and aligning our resource to revenue and profit growth opportunities; and fourthly, providing greater transparency in our internal and annual reporting. Thanks for your time. I look forward to talking to you in the future. And now I'd like to hand back to Bart for the formal part of today's meeting.

Thank you, Jim. I now move to the formal business of the meeting. I will briefly introduce each resolution. The formal resolution wording together with proxy positions will be displayed on your screen. All items of business will be determined by poll. Votes will be counted after the meeting and the results will be posted to the ASX as soon as practicable. As stated in the notice of meeting, I intend to vote all open proxies held by me as Chairman in favorable resolutions. The voting positions, which will be displayed behind me for each resolution, include the proxy votes that I hold. There will be an opportunity for comments or questions before each vote is taken. I now declare the poll open. The first item of business is the consideration of the company's FY '21 financial statements and reports. The financial report, the directors' report and auditor's report for the year ended 30th of June 2021 have been distributed to members. The company's 2021 annual report is available for download from the company's website. There is no formal vote required for this item of business, but I do now invite shareholders to ask questions or make comments as to the financial statements and reports, the operation and management of the company or the conduct of the FY '21 audit, the audit report, the accounting policies of the company or the independence of the auditor. Our Chair of the Audit and Risk Committee, Anne O'Driscoll, is available to answer questions about the FY '21 financial statements. And Ms. Pooja Patel of Deloitte is available to respond to questions relating to the conduct of the audit and the preparation and content of the auditor's report. Let me pause to see if there are any questions that are coming through online. There are no questions. I will, however, respond. We have received 1 further question in advance of the meeting, which we had not directly addressed in Jim and Gareth and my speeches. The question relates to the sales traction in North America and the stability of our Americas team. As noted in the 2021 annual report, the Americas business had a challenging year in sales, hampered by travel restrictions, lockdowns and economic uncertainty. However, the SimplePart acquisition, the reorganization of our sales structure in North America should deliver positive outcomes in FY '22 and FY '23. The core Americas team is stable, and we're continuing to examine strategies to bolster our sales capabilities in the region, both organically and importantly, as we previously announced, our work via channel partners. We are confident that with the support of Warren Brugger, the Head of our Asia Pacific team that our team in North America will restore itself to the revenue growth pattern we're all hoping for. Before we proceed any further, telephone operator, do we have any further questions on the financial statements, the audit or operations of the company?

No questions on audio, Chair.

Thank you. And Dan, do we have any further questions received online? No? As we have no further questions, that concludes our consideration of the company's audited financial report. Let me then move to the resolutions. The first resolution is to consider the adoption of the 2021 remuneration report. Please note that this resolution is advisory only and does not bind the directors of the company. I note for the record that if 25% or more of the casts -- votes cast are against the resolution, this would constitute a first strike. Voting exclusions apply to Resolution 1 as set out in the notice of meeting. The Board unanimously recommends that shareholders vote in favor of this resolution. The formal resolution, together with the voting positions are displayed on your screen now. As Chairman, I hold 0.11% of voted capital by proxy, which I intend to vote in favor of this resolution. I now welcome any questions on this item. Telephone operator, do we have any questions on this resolution?

No questions for this resolution, Chair.

Dan, do we have any questions received online on this resolution? There being no questions, please cast your vote on this resolution if you have not already voted. [Voting]

The second resolution relates to the election of Jim Hassell as a Director. Jim was appointed to the Board on the 10th of May 2021. When Jim joined the Board in May, it was outside the Board's contemplation that he would assume an executive interim role. So nevertheless, we're immensely grateful to Jim that he's agreed to step into the role of Interim CEO and Managing Director following the resignation of Mr. Rubinsztein earlier this year. And Jim, on behalf of the Board, a big thank you to you for stepping in. Jim's change in status means that he's technically exempt from seeking shareholder election under the company's constitution and the ASX listing rules. Despite this, Jim has volunteered to retire as if he were in a nonexecutive capacity to allow shareholders to vote on his ongoing appointment to the Board. Jim is highly experienced in the information technology and telecoms industries, having worked in these sectors both domestically and internationally for over 30 years. Jim has held positions as Group CEO of BAI Communications, as VP and Managing Director of Sun Microsystems in Australia as well as senior executive positions with NBN Co and Broadcast Australia. Jim has a proven track record of driving business growth via traditional revenue streams augmented by the development of new services and revenue from data analytics and artificial intelligence. It's intended that Jim will resume as a nonexecutive director following his time as the interim CEO. As an -- as additional voluntary commitment to good governance and shareholder rights, the Board also intend that Jim will stand for election as a nonexecutive director at the 2022 AGM. Prior to Jim's appointment, the Board undertook appropriate checks into his background, character and experience as well as appropriate criminal and bankruptcy searches. No concerns were identified from those checks, thankfully. So I now invite Jim to say a few words regarding his candidacy.

Thanks, Bart, and morning again, ladies and gents. Yes, I think just in terms of Infomedia and my attraction to the business, it's really a great business, and there were a number of things that I found really interesting about it in the first place. So firstly, that it's a technology business, and I've been in technology for the last 35 years and seen lots and lots of changes through that period. And secondly, it's a global business. It's growing. It generates cash, which I think is really important. And it's invested some of that cash into new areas of the business, both in terms of acquisition and also building up new product areas. So all of those things I found very exciting in the first place. And then the other thing for me around the business is that it's in a marketplace which is changing rapidly. And I always see that in the tech sector, having been here in the tech sector for a long time, as opportunity. Certainly, it's threat as well, but I see that as opportunity. And the companies that place themselves well in changing technology markets do incredibly well. And I thought Infomedia was well-placed for that. So those are the things that attracted me to it. In terms of my own and candidacy, as I say, I've been in the technology industry for 35 years. I'm very interested in technology and always have been not from the sake of technology itself, but from the perspective of what it does for people or businesses or organizations. And I think one of the things that I can bring and help with is understanding some of those things and understanding how a company can make profit and help their customers and make profit out of that themselves. So those are the things that I think I bring. And the other thing I'd just like to say about the business is as working as interim CEO for the last 4 weeks has given me the chance to get to know very well the management team, the executive team in the company. And there are some fabulous people here. And it's always a joy to work with really good people and to figure out, try and figure out how you can help them and the company achieve its maximum potential. And I think I've got some things which I can do to help the Board and to help management achieve the maximum potential for the business. So thank you.

Thank you, Jim. The Board, with Jim upstanding, has considered Jim's candidacy, both in respect of his individual merits, his background and experience as well as in relation to overall Board composition and recommends you vote in favor of his election. The formal resolution, together with voting positions, are displayed on your screen now. As Chairman, I hold 0.11% of voted capital by proxy, which I intend to vote in favor of this resolution. I now welcome any questions on this item of business. Telephone operator, do we have any questions on this resolution? I'm assuming that the silence means no. And Dan, do we have any questions online? No. Thank you. There being no questions, please cast your vote on this resolution. [Voting]

The third resolution relates to my reelection as nonexecutive director. For this portion of the meeting, it is appropriate that I stand down as meeting Chair and that the Chair of the Remuneration, People and Culture Committee, Kim Anderson, temporarily assume the role of Chair. Before I hand over to Kim, I'd like to say a few words regarding my own candidacy. Firstly, let me say it has been an absolute privilege to work with a dedicated Board and a talented management team since I joined the Board in August 2015. The graphs that Gareth will have shown you earlier reflect the 6-year journey. It's been a journey of steady growth. And whilst Gareth has been able to share with you the growth in our revenue line, what wouldn't be visible to shareholders is the hard work that has been done behind the scenes by the Board and management to build a more mature organization than the one I joined 6 years ago. Our systems, our capabilities, our product development and our global account management with our major customers have come a long way during that time. And I feel very proud to have been a part of the process not only of participating in that growth journey with leading the Board for much of that time. As I said earlier, I'm confident in the strategy and momentum of the business. And I commit myself to continuing to grow the business alongside the management team and my fellow directors. I also commit myself to continuing to be open and accessible to shareholders as we move through this important transition phase and to working tirelessly to improve our shareholder value. And with that, let me hand over to Kim.

Thanks, Bart. And as you've just heard from Bart, he was formally appointed to the Board as a nonexecutive director on the 31st of August 2015 and was last elected by members at the 2018 AGM. He retires by rotation in accordance with the company's constitution and the ASX listing rules. Being eligible, he now stands for reelection. Bart acts as the Chairman of the Board and serves on the Remuneration & Nominations Committee and the Technology & Innovation Committee. He also serves as a temporary member of the Audit & Risk Committee whilst Jim holds his role as Interim CEO and Managing Director. He is a Chairman of InvoCare Ltd. and a Director of Macquarie Telecom Group Limited. He is also a director of BAI Communications Proprietary Limited and the Children's Cancer Institute of Australia. Bart has extensive commercial experience from a range of sectors including telecommunications, information technology and business services. His executive career included CEO roles with Asurion Australia and Lucent Technologies Australia and Asia Pacific, Computer Power Group and more than 20 years in the management consulting industry as a partner with Bain & Co -- sorry, Bain & Company, A.T. Kearney and Deloitte. The Board has considered Bart's candidacy, both in respect of his individual merits and contribution to the Board composition and recommends you vote in favor of his reelection. The formal resolution, together with the proxies received for this resolution are displayed behind me. As Chair, I hold 0.11% of voted capital by proxy, which I intend to vote in favor of this resolution. I now welcome any questions on this item of business. Telephone operator, do we have any questions on this item? No. Dan, do we have any questions on this item? There being no questions, please cast your vote on this resolution. I now hand back to Bart to conclude today's meeting. [Voting]

Thank you, Kim. Before we conclude today's meeting, I'd like to invite any further questions from shareholders and proxy holders. Telephone operator, do we have any further questions? No. We don't have any further questions. And Dan, do we have any further questions online? No further questions online. Thank you, ladies and gentlemen. That completes discussions and questions on the formal business of the meeting. If you've not done so, please now cast your votes via the online platform. The poll will close in approximately 5 minutes' time. The results of the poll will be reported to the Board as soon as possible. The results will then be released to the ASX and published on the company's website. On behalf of the Board, I thank all shareholders and our employees who've joined us for attending today's meeting. Thank you.