WiseTech Global Limited (WTC) Earnings Call Transcript & Summary

We're across Australia and New Zealand with all transport modes and directions. We've recently released the product into the U.S. with a couple of pilot customers. So yes, we're definitely seeing a big increase in the volumes in the United States.

And is it the same software globally? Do you have different takes on it for different markets? Or is it a single global product?

It is a single global product. It is country agnostic. So we just plug-in the solution from a customs perspective for that country. So each country may have a different customs declaration. So as the customs team build out new customs declarations that apply it to low-value goods, we'll just plug that solution into our solution.

And what new things are coming? Is there something new happening in the space that you're excited to be involved in?

The biggest thing for us is new markets. As I said, the U.S., that's a very big market. There was some new legislation changes last year in the U.S. for low-value goods and new declaration types. So we're on the forefront of that. And then after that, we're following the customs plan where we just go into new countries as they go into new countries. So every country has its own challenges. But yes, that's exciting path for us.

So it sounds like this is a great success story. It's working very well. It's hitting the market, solving a lot of the problems of the industry. That's great news. Thanks for your time.

Thank you [Presentation]

I'm a 20-year industry veteran of CargoWise. CargoWise is instrumental in the facilitation of international freight. I'm proud of the role that we play in that. But quite often, the supply chain has taken for granted until it's interrupted and there's a disruption of goods not readily available. Never before has the industry been so critical or so visible it has been in today's movements of goods. COVID-19 has taken a toll on logistic service providers as well as the normal pressures that they've had of capital constraints, heavy regulatory compliance and pressure on margins. And because of that, many of these international logistics providers today are embracing a digital transformation strategy. These companies have been saddled with legacy systems with inherently strung together microsystems with an ever-increasing concern of cyberattacks across multiple platforms. And because of that, they're looking for a single global integrated system to execute that digital strategy, and we are well positioned today to assist them in that growth. Our 17,000 customers range from multinational operations to small and medium-sized regional and domestic players. They include 42 of the top 50 global 3PL companies and all of the top 25 global freight forwarders. 23 of them use our CargoWise flagship product. And we're proud to say that nearly half, 11, have either completed or in the process of doing a global rollout. We continue to penetrate our customer base. There's a significant runway ahead of us in the top 25 global forwarders as well as the top 200 logistics service providers. Quite often when we're in the walls of an organization, we grow with them. The product essentially sells itself. We might start with a customer on a geographical need or a functional need. And then once within the organization, it's a logical progression for them to move to a global rollout. So keep in mind that as we make a sale, there's a large revenue runway ahead of us in 3 fronts. One, as they're rolling out a system globally because it's complex geographically and compliance wise that takes time, so they grow with the product. Secondly, they grow their business either organically or through acquisition. So they grow their business. And then lastly, we keep extending the product and offering more and more product for our customers to consume. We grow the product. Taking a look at the revenue growth of these global operations as well as our low attrition rate, we realized years ago that the exponential growth was going to come from this segment of customers for a number of reasons. They are less volatile to negative market conditions. They have aging legacy systems that need to be replaced as part of their digital transformation strategy. They appreciate what CargoWise has to offer as far as a single platform, as far as the quest for productivity and throughput. And also, they realized CargoWise has a proven scalable success record with global implementations. It's a low-risk option, which is normally a very high-risk project. So now we have a seat at the table. If not CargoWise, who? Our biggest competitors, they do nothing. So our job at this point is to work with the multinationals proactively and drive them to business. Enter team Delta. We took our most successful and experienced sales individuals and we formed a team. We realized that the deals we were going after were too diverse geographically, too complex and too large for a single individual. So from a team aspect, team delta, the whole was greater than the sum. After posting a number of successes, we're able to document our strategies and processes and scale that out, not only from the top 25 forwarders to the top 200, but also across the greater sales team as a whole. It took us nearly a decade to sign our first 7 global deals. We picked up our momentum, though. In the last 9 months alone, we've signed 6. And these include a. hartrodt, Aramex, Cargo Partners, SEAFRIGO. Combine this with the top 25 forwarders, we signed in that time of Hellmann Worldwide Logistics, CEVA Logistics. That in conjunction with the 17 companies that have done global rollouts with CargoWise include the largest of largest of DHL global logistics, DSV/Panalpina and Bolloré. These operations need a technology that helps them drive cost efficiencies, improve staff productivity as well as mitigating risk. CargoWise has this deeply embedded in its DNA to help them plan, visualize and execute global operations. As we grow, we have seen a surgeon transaction as well as an increased demand in CargoWise as part of our global rollouts. In addition to that, we've seen a number of our larger customers co-funding normal R&D of CargoWise in order to address their specific needs. As a business team, we concentrate specifically on new customer acquisition, but we realized there was an opportunity to amp up our revenue opportunities by addressing these needs of the customers to extend our product through their ideas and dollars. CargoWise is the market-leading platform for global logistics execution. We're well placed to strengthen our position in the near and the long term. But what better way to bring this to light than to hear from a couple of our global customers. Aramex, who's rewritten the playbook and a big bang approach of their global implementation of CargoWise; as well as DHL global logistics, our largest global implementation to date of CargoWise. Mohammed Sleeq, Thank you for spending time with me today.

Thank you, Gene. You can call me Sleeq, if you want.

Thank you, Sleeq. Sleeq, if you would, just give us a little bit of introduction to Aramex and what differentiates Aramex in the market?

Aramex is a comprehensive logistics and a transportation solutions provider. The company quickly grew into a global brand operating in 65 countries, and we have almost 15,000 employees across the world. The services that we offer are express services, international cross-border and domestic included, freight forwarding, warehouse management and e-commerce services and supply chain.

Aramex is focused on being a digital innovator. Can you tell me a little bit what drove you to look for a logistics execution platform and specifically CargoWise?

So we've kicked off a large enterprise transformation program 2 years ago in multiple areas of the business to include customer experience, transforming the last mile processes. Big Data analytics, again, is a big part of our transformation journey. And of course, the core modernization of our core landscape. So we have to look for the best solutions out there or platforms out there that can enable the business and transform our business processes. And of course, the SaaS solution versus the build versus buy component is very important for us. So we've chosen CargoWise as a SaaS solution for the industry-best practices and the global consistency. Because this solution has been vetted and tested with a lot of freight forwarders in the market, including the network of partners and agents that we work with in the world, so I think CargoWise was the obvious choice. And we obviously made that decision simply because of the best practices that CargoWise offers and the out-of-the-box solutions and integration that comes with CargoWise. So we really wanted to hit the market with a solution that can deliver value on day 1 of the implementation. We really didn't want to reinvent and rewrite a freight forwarding engine for us because historically, we used to deliver most of our solutions, our core operating systems in-house. And today, we're really reshaping this strategy and looking at components, solution components and technologies that can deliver value without the need for us to reinvent the wheel. So it was the obvious choice given the market that we are in today.

How important was your customer experience, your shippers, your [ companies ] in making the decision? What benefits and value-add will CargoWise add to your customers?

The freight forwarding industry is seeing a massive transformation. And of course, the industry is really looking at new ways to transform the customer experience. And our vision really is to move and interact with customers and more self-service kind of ways. And obviously, CargoWise will come in support and back up this strategy and make sure that we deliver on our promise and our commitment to our customers. Specifically when we look at the freight forwarding product, I think the vision and the dream for us is for customers to be able to move a container, let's say, from one location to the other without the need for interacting with anyone at Aramex, right? So with an investment like CargoWise, we will be able to achieve that vision and make sure that we offer the best customer experience in that regard.

Sleeq, There's been quite a bit of media around the big bang approach to rolling out CargoWise versus the gradual rollout. Can I ask you about your desire to take this approach and what key factors you were looking for with success with this?

We really wanted to challenge ourselves. With a big bang approach, obviously, the implementation included a community of around 2,000 users in around 62 countries. We're very proud about this achievement, but we really wanted to really challenge the status quo and reap the benefits of the implementation very early on as quickly as we can because we have a very aggressive target for the implementation and for the transformation of the organization. So with the big bang approach, we were able to achieve things faster and get to the efficiencies that we wanted to get very early on in the program.

Can you talk specifically about the COVID-19 challenges and executing this global rollout?

I have not seen a time where Aramex as an organization has been more resilient. And we've never seen a time where we've been embracing more and more technology and powering customers in this pandemic and also delivering a future for the organization that is by far more agile and resilient as we look at the future. I think the transportation industry is looking for new ways to transform. And the disruption in this age of disruption, we need to act fast, and the agility is really a testament to our commitment to serving our customers moving forward.

Looking back on the implementation, any lessons learned you can share with us?

Of course. Well, I think knowledge sharing and bringing the team all up to speed and governing the program in a way that keeps everyone informed about where we are, I think that's extremely important. We've governed the program in ways that is extremely meticulous, and we make sure that everyone is brought up to speed to the same level of alignment. We kept the team super aligned on a common understanding of why this is very important for the organization. If the team believe in one common goal, I think everything is doable. And again, we're very, very happy about this implementation.

CargoWise is a broad product. Can you tell me a little bit about what module specifically Aramex is using today and what you might grow into in the future?

Of course, when you look at the landscape, we are a one-stop shop solution. So We have air freight, sea freight and land freight and customs clearance. We're also using it for billing and the order to cash cycle, specifically. We wanted to obviously implement a solution that can scale for the growth of the organization. So we have very ambitious growth targets. So with the implementation of CargoWise, we were able to -- the solution was able to cut across all of these products all in one go. So it was only a big bang across countries. It was a big bang across all the products of freight within Aramex as well.

You just recently gone live with CargoWise. I know things are fresh. But what benefits are we looking to achieve? And have we realized anything yet?

Well, it's only been 25 days since the implementation of the program. We just closed the month of October. Again, it was a challenge, but we're happy about this about milestone. We believe with the CargoWise investment, you'll be able to optimize our operations and make sure that we deliver value for our customers from an experience standpoint. So I would summarize this with basically improving the employee experience, the user of the CargoWise today, which is around 2,000 people, improve the customer experience as we go along and develop these online platform that can deliver value for our customers and, of course, drive operational efficiency on the ground.

COVID-19. So this is the new norm. Can you share your thoughts as far as how you think this is reshaping our industry today and in the future, specifically with Aramex and the greater industry?

A lot of customers, specifically the big retailers have been accelerating their digital transformation journey and offering their omnichannel strategy to their consumers. So we've seen a massive surge in the number of shipments that we handle. The cost of running business became higher and higher. But I think this is a potential for us as an opportunity to look at new ways to manage and maneuver and the movement of goods across markets and the intercontinental movements and even the cross-border movement across continents and across the same continent as well. And I think we've accelerated the demand for the third-party logistics. So the industry, I think, is enjoying a lot of, I would say, growth. But I think the prioritization on digitization and accelerating our digital transformation journey became more and more evident as part of the COVID-19 pandemic.

I can't thank you enough or today, for your time and for your business as a CargoWise supporter. Thank you very much.

Thank you for having me as part of this conference. It's good to be here, and it's been a hell of a journey with CargoWise in the initial stages as well and throughout the implementation. So thank you for your support, and I hope I can see you soon.

We just heard from Aramex on their big bang approach to implementing CargoWise. Now let's go to DHL global logistics, and they'll share their experience with us on the largest global implementation of CargoWise to date. Tim, the biggest question is what drove you to market? And why was CargoWise the right solution for DHL?

Well, maybe I should talk a bit about DHL first. So we are -- or I'm responsible for DHL Global Forwarding, which is a part of the entire DHL family. And within our division, we have been a company which acquired some 20 years ago large forwarders, have brought them together. We integrated them, but we never really integrated on our IT systems that we have. So we rolled out IT renewal road map. And based on that program, we then had discussions to see what is the core application, just the transport management system. So what's the best technical solution out there? Because we also felt we don't need to do everything for ourselves or by ourselves. And the other reason was what drives our customers, what do we need to do in future to be better. And I think in that case, you then also decided to go with CargoWise, one, being our core, being our transport management system within the DHL Global Forwarding.

I've seen some fantastic LinkedIn post with your team announcing your local CargoWise go lives. How are you tracking with the global rollout?

Ocean freight organization, which used to be on the legacy system, is now on the CargoWise system together also with the age instead use the legacy system certain functionalities. So ocean freight for us is more or less a tick in the box when it comes to taking over from the legacy systems. On the air freight side, we are still missing roughly certain counties and we are planning to roll them out in Q1 and Q2 next year, latest Q2 next year. And if you have managed that, then we've done the real large rollout of the global transport management system being CargoWise one, and we believe this is probably the fastest rollout of any freight forwarder of the size that we have.

Tim, can you talk to the usage across the CargoWise platform and what benefit you're seeing both immediately and long term?

Well, I think first just to have a one global application is great already because the global application helps you to really make sure that the quality of your service is everywhere the same because you use once this, you don't use differences. And also CargoWise gives you this 1-5 transparency. And transparency is actually the name of the game in our business. Our customers expect that we are able to ship something from A to B. But they also expect us to be transparent that information about them. The information have to be clear with the shipment. And I think this is something else that CargoWise gives you, that transparency.

What are some of the major ways this has changed how you operate today versus before CargoWise?

It gives us the possibility to really support our business model where we had to work in the hub and spoke model on the ocean freight side to make sure that we're able to consolidate strongly our shipments, and this is something which our legacy system didn't support us as well as CargoWise is supporting us with right now. This again paired with transparency and paired with a higher better way of working better quality of working is really important for us.

Your approach to the global implementation of CargoWise has been a progressive slower burn approach. Can you explain why this was the right choice for DHL? And how are you managing the co-existence of multiple systems during the rollout process?

Well, as I outlined before, CargoWise is one system we are rolling out. We have our IT renewal road map, which is a multiple systems which we are rolling out. So we've deployed in a we believe controlled but very well this established way but also making sure that our organization can follow the change. Because every system for [indiscernible] is a different way of working, and we wanted to make sure that they can follow and can embrace. I understand also while we are doing certain things. Now on the co-existence, this was something which was a bit tricky for us, but I think we've managed it very well in the way that we used shared service centers that we have in certain parts of the world to make sure that [indiscernible] manual changes were being done. But also we saw the [indiscernible] when we bring in larger countries, these co-existences just go away quickly and we immediately see the quality within the CargoWise system rollout.

COVID has brought unprecedent challenges to many business. How has CargoWise supported your business during this time?

We have to go into a home office scenario pretty quickly in Q1 this year. And we could clearly identify and seal those countries who are already working with CargoWise where much better equipped and been able to go really quicker into the home office environment than those countries which are still running on the legacy system. So it was a real support for us. And we were up in a way lucky, if you can say that the pandemic hit us later the rollout and not the beginning of the rollout. So overall, I think it was really good that we have CargoWise in these situations here.

The partnership between our 2 companies is something that I'm really proud of. You and your team are helping drive CargoWise forward with produce ideas and development investment. Your priorities have reshaped our road map. Gateway is one good example. It was on the product road map, but it was a priority for DHL. So we accelerated development of the gateway module. Why is this type of partnership important to you and how does it change the dial for DHL?

The way that both companies engage was very good because both companies believe -- I believe can learn from each other. We can learn a lot on how to standardize things and make sure that a system which is best of breed in our way of seeing it is really something which you can deliver into our organization and I think from a [indiscernible] perspective was good to see that the ideas that we had and how we run our business with any freight forwarder who runs this business a different way, maybe the business models around [indiscernible] 100% comparable, and there we could also see the agility and the speed and how we could bring these functionality changes into the system to really support us.

Can you share your thoughts on buy versus build CargoWise product versus in-house development in the past?

Well, as I explained, we have our IT renewal road map. And some of the functionalities or programs that were ones that if you build it oursleves, we of course believe in having that also that knowledge around these functionalities of programs. But then we also followed the best-of-breed approach on the TMS side. We really saw that what CargoWise delivers and the possibilities that systems gives us is best opportunity to get out of the market and that's why the question for us to build our own TMS system, we didn't come up.

We've heard comments about the experience of rolling out CargoWise internally. It could also assist in a cultural shift for digital transformation. How has this played across your organization?

Well, I think as I outlined a bit before, any new system is a change for the clerk and the management in the stationed country or in a region. And I think with CargoWise, this also is something where we have gone through a transformation of how we want to work in an organization. [indiscernible] and do more model things. It will also attract more people also younger talents to our organization. So I think CargoWise helped us a lot in making sure that we can start [indiscernible]. But to implement and deploy is one step to continue the journey is now something which we have to do internally, but with the system, we had at least a basis of where we can really continue the transformation of our organization also when it comes on the question how we want to work in future.

DHL is taking steps to digitize your customer experience. For example, earlier this year, you launched myDHLi. Congratulations on that, Tim. How did CargoWise support you in getting this enhanced customer offering out to the market?

Well, thanks for the congratulations. It was also one of the milestones in our IT renewal road map that we wanted to come up with a new digital offering for our customers which gives our customers the transparency that they need also to be able to manage their transportation needs and requirements. And without modern architecture, modern system behind it going to able to give this kind of data quality to the customers and that's where CargoWise did a really important role and B the basics to be able to develop [indiscernible].

So at CargoWise, we have strong belief in content-based learning, providing our customers with extensive e-learning and certification processes. How these processes approach supported the DHL implementation?

Well, we stated using the e-content learnings in the beginning and also to get the organization for a minute, you raise with the system. So if you come from a legacy system, which is in the 70s and 80s, you don't go the something brand new. You have to bring the organizations that have to see adapt touch, that they have to feel for it. So at the beginning, we used these support functions very strongly. But then as we develop and as we become better understanding of the system, we also started to do more class work training and class work trainings with the organization because we also felt that we need to understand the system Especially if your groups get larger and if you are countries organization complex, it's better to have people in the room and really explain how things work.

Can you talk how DHL worked with CargoWise partners to implement CargoWise across your global operations?

In the beginning of the program or the project, we work together with partners of CargoWise, who supported us, and also smaller regions, smaller countries where we didn't have reach in the beginning. But over time, we got less and less because we really believe, since this is our core system, we need to -- we better know how our core system works. There are -- To understand what the application can do and so on. So we took the knowledge that we brought and we built up over the last years and made sure that we have in our house. And that's what we use the partners less now, probably even less in future.

So what is the future hold in store for our industry? And what role do you see CargoWise playing and serving it?

Well, I think the industry itself will go through a transformation that digitalization is going to be more and more important. Our customers, be interested in understanding of the data, which comes with their businesses, correct, as the shipment arriving on time. So they also want to, I think, see the industry use the data in a much more different way than we today. And you can only get that kind of a service, if you have again a system in place, which gives you the basics to do these kind of things. And there again this CargoWise are one of the solutions in the market, we can do these things.

Tim, that's all the questions I have for you today. Thank you for your insights and your time. DHL and Aramex, thank you. That's an example of our runway of revenue growth, long, but increasingly fast.

Thanks for the opportunity to be with you and share a little bit how CargoWise partners in general and Zinnovate a bit more specifically help CargoWise customers to get the most out of the systems because that is really the key here. It's a 2 step to success, getting the best system in place, but also getting to the best usage. Here in Zinnovate, we have 3Cs as the guiding life for that: Competence, collaboration and chemistry. Of course, the necessity, the starting of the founding block is the deep competence our consultants have. And then collaboration is -- it is really a collaboration game. First of all, we need to put a team in place, particularly with the larger customers that we can support them on all geographies and on all aspects of CargoWise. And of course, the collaboration between our consultancy team and the customer is key to the success. The final C there, chemistry, is that this ball is down actually to very personal level in the relationship between our team members and the customers' team members. Unless there is this cultural fit and personal chemistry, we will not get to what is our mantra here in Zinnovate to help the customers make the whole more than the sum of the part. And that goes across systems, that goes across processes and that goes across the organization, i.e. team members. In terms of the uniqueness and competitive advantages of CargoWise, there are a number of key aspects of that. First of all, it is the overall functionality of richness. Secondly, I would say it is the global aspect. There are providers -- local providers that have strong functionality in a local market. But for global forward, that is, of course, not enough. Then there is an aspect which has been improved even further with the acquisitions was taken down in adjacent industries. So out of the box of CargoWise, you will have connectivity to customs, to carriers, et cetera, which you -- in competing systems may have to pick and choose among a number of other vendors to get that full level of functionality. Then I think also WiseTech has been able to address the classical dilemma, how do you create a superior standard software that would meet the needs of the market and yet at the same time, be able to address the customization needs each individual customer has. I would like to define success in terms of deployment. There are basically 2 aspects of success all my customers are looking at. It's getting higher faster. Getting higher means, of course, how can we get as close as possible to the full potential power that CargoWise delivers, in terms of automation, in terms of going paperless, in terms of connectivity with parties. And secondly, of course, how quickly can we get to realize those benefits. And the second aspect is important for a couple of reasons, primarily, of course, the faster you get there, the faster you get your return. But also, the faster you get there, the shorter time will you spend in a -- in between situation, a coexistence between your legacy system and your target situation where you're running CargoWise full out globally in the single file setup. There are a couple of trends in the industry that I would like to point out. I'm thinking primarily 3 trends. One is industry players increasingly moving to become full house logistics providers. So you can see traditionally players in the carrier side, in the express side, in the freight forwarding side, realizing that their customers have needs in all areas across the logistics portfolio and that's where you see an expansion into new territory. That has also caused a very important consequence for software providers. Traditionally, software provider has been very specialized in those different disciplines and logistics, very much silo based. But as increasingly logistics giants are moving into full-house scenarios, they need support across all those disciplines. So that's a strong industry trend. Then, of course, the overriding trend of going digital that has sped up enormously due to the pandemic. There, I believe, we also can see some disruptive change. I think you need to go about innovation to meet those needs of these trends a little bit differently, whether that is a continuous improvement of fine-tuning or whether it's actually a disruptive change, going from paper-based processes to completely digital is a disruptive change. And I think a good strategy there is what I see with CEVA Logistics, setting up their CargoWise global deployment project from the get-go to be completely paperless. That is something I think is very hard to do as a gradual fine-tuning. It's almost like if you have an addiction, you need to make a radical change. So from paper addiction to paper-free, I think a strategy is to go full out in one big bag, if you may, also in that respect. Finally, of course, the booming e-commerce industry is -- it is here to stay. It's not just a pandemic effect. It has been dramatically sped up by lockdowns, but it's here to stay, and it addresses a classical dilemma in the logistics industry. The imperfect last-mile delivery. So that's where we also see a number of system feature approaches, process approaches and new business concepts to address that classical industry dilemma. So thanks for the opportunity to share a little bit from a CargoWise partner perspective and from us here at Zinnovate, how we go about the task of helping the industry reach higher faster. Thank you.

At WiseTech, we've done about 40 acquisitions since the IPO. Most of the businesses have been founder-led businesses. They've achieved good scale within their own markets or the market niche and the businesses generally fall into 2 categories: foothold acquisitions and adjacencies. The foothold acquisitions, mainly border compliance with some accounting acquisitions as well. And they provide us with entry into a new market, a stronger customer base and also the IP and importantly, intellectual capital within those businesses for us to use within the wider group. To give you an example of the intellectual capital, just think about the approximately 20 foothold businesses we've acquired, assume about 2 specialists in each business and about 10 years of tenure for each of those specialists. That's 400 years of custom specialist we have across those foothold businesses, and that's being conservative. And also, that excludes the 500 to 600 other valuable team members that we acquire with the acquisitions. From an adjacency perspective, the businesses that come into the group have normally achieved good growth within their domestic markets. So we're not acquiring businesses for short-term financial returns and short-term growth targets. We already have CargoWise One, which grows strongly organically and delivers high EBITDA margins. This is the engine of our growth at the moment. We are buying businesses for their strategic value to help us enter into new markets and extend the functionality of our existing product. Because the acquisition strategy is different from other companies so is our integration approach. We're not trying to quickly bolt together 40 or so independent entities with different people, businesses, markets and objectives into one and call this done. Our approach is to create a common vision, ensure businesses, teams and individuals understand how the contribution can help and move towards our vision, accept and leverage the diversity within our group, but also highlight the similarities. We're looking to share solutions to problems we have faced and overcome. And in doing so, we aim to align people, team objectives, approaches and culture over time to create a smooth transition, resulting in more effective and longer-lasting change, a high-quality output. There are a number of elements to the integration process at WiseTech. First one is business integration. This is normally a short-term process that takes 3 to 6 months and comprises finance, information services, people and culture and legal. Business integration is virtually complete for almost all of the businesses we've acquired so far. Secondly, there's product. The first element is our interface, product interface that we do for the foothold businesses. We interface the system through an API that supports data interchange between CargoWise One and the acquired systems. This allow us more efficient access and use of the product by our customers. This phase is used by some, but falls far short of the full solution we're looking for. This is a standard realized process and almost all of the foothold businesses have completed this. Integration for adjacencies allows customers to effectively use the acquired businesses application. A number of businesses have functional integrations with ongoing development, such as CargoSphere and Cargoguide, whilst others are in pilots. These integrations, including Pierbridge, SaaS Trans and SmartFreight, and they have wider commercialization we expect next year. For the foothold businesses, the main solution we're looking for is a native rewrite. This involves writing the functionality into the CargoWise One platform and takes more time, and we expect to deliver longer-term value. Target dates are included in the FY '20 results presentation, which illustrates some of the path to covering 90% of the global manufactured trade flows. When we talk about the commercial model, we're referring to various approaches, which we've developed over time to make the business what it is today. Examples include the license model, our focus on recurring revenue rather than onetime licenses and having lower focus on services which is why we see, in some cases, businesses that come into group revenue declines in the first few years. We focus on what we sell, selling standard products rather than customized versions, which take a long time to implement and our hardest effort. One example here is Microlistics, where we've launched the Microlistics express delivery product. This is a standard configuration of the broader product, which is able to be swiftly and efficiently deployed at client sites, making it highly scalable. We also focus on how we sell, selling on value, not price; our use of content, which is proven particularly valuable during COVID; who we sell to and the support for sales. From a productivity perspective, we use various different tools at WiseTech. Productivity is the core of what we do. Whilst we often talk about these in the development context, they can really be applied widely across the organization. Examples include prioritizing quality over speed, slower today, faster forever, focus on test first and automated testing, our approach to development and our use of PAVE as to manage workflow, our use of content. From a cultural perspective, we have multiple touch points with the acquired businesses. We supplement these interactions with content-based educations, and we provide a shared vision and strategy for each of the businesses. There are 5 key steps to this approach. We start aligned, we start early. We work in a scalable way and create an efficient process. We understand the differences, but leverage the similarities, and we focus on doing the most important things first. From an alignment perspective, we really look for common cultural alignment when we're doing the deal in the first place. And we also use the earnouts, which help align the objectives of the vendors with our strategic objectives. This has been a key driver enabling us to run so many complex processes at the same time. We start early. The integration starts during the acquisition process. This is one of the major improvements we've made in the process over the last few years. We've brought forward as much of the work as we possibly can into the acquisition process, making the initial integration process much smoother. We work in a scalable way and create an efficient process. We use our excellent resources from all around the business. We make use of functional specialists from all areas to help integrate the business. We place trust in local management who know their team, their businesses and their customers. We also leave with content. We have briefing materials and how-to guide, welcome guides, development guides and where necessary, these are translated into different languages. We used PAVE widely as possible for monitoring progress. We understand the differences, but leverage the similarities. Every business is different, its geography, culture, language, customer base and the regulations of the market or the industry segments. But equally, they have many similarities. We apply and present a common vision and growth focus. We help them with their core challenges that they're facing, which are similar to the ones that we've already sold. We also focus on doing the most important things first. We don't try to do everything at once. Businesses are full of people and people need time to adapt to change. Some things are nonnegotiable, such as compliance, reporting and security. But other things such as development take longer. Where we cannot achieve both quality and speed together, we prioritize quality, slower today, faster forever. As you've seen, there are a number of different phases of integration. Some are more relevant to some businesses and less or not relevant to others. It's multifaceted. However, to give you a sense of our progress at a high level, aside from the most recent acquisitions, all business integration is virtually complete. And any remaining activities of general performance improvement, businesses usual activities or purposely deferred. Productivity, the most obvious indicator of productivity is the use and adoption of PAVE. This is widely used across the businesses. All foothold businesses where the products and development teams are fully integrated use PAVE with the CargoWise One teams. The adjacencies also use PAVE widely, and they've been installed in a number of our businesses, including Trinium, Pierbridge, Containerchain and Microlistics. One significant event, of course, to address has been COVID this year. This was the trigger for us to renegotiate and/or close out 22 of the earn outs. It is a challenging process, but it was met with typically constructive dialogue, which is to be expected from the high-caliber individuals throughout our group. The MDs and former owners believed in what we are trying to do and the benefits to the group, and they were positive about the prospects of growth and the confidence in equity rather than cash. This, in turn, has provided us the opportunity to accelerate many of the integration actions and align the businesses more closely and quickly. Vlad will touch on this more in the next session. Our process is evolving and improving. The process we have today is built on the experience of the early acquisitions, and I expect the process to continue to be refined based on the experience we're going through at the moment. Product development for the foothold businesses is a prime example of a process, which has matured significantly from the initial IPO acquisitions in Germany and Italy. We already had some development experience from South Africa. But as we started to add multiple countries, the team had to find a way to do this at scale. They spent time developing onboarding content for developers and developed how-to guides for interface development and testing. Our Sydney support team adjusted working hours to work with European teams as they did with us. We also developed monitoring of remote teams input and output to ensure we were getting the highest quality output. For me, the greatest challenge of doing so many at once is meeting the expectations of ambitious, talented and passionate individuals within the acquired businesses and balancing local needs and demands across a broad range of businesses. Across the business, we have a group of talented and engaged people who understand the WiseTech Global vision and are excited to be part of the global strategy and growth trajectory.

Good morning. My name is Vlad Bilanovsky, and I'm the Chief Execution Officer for WiseTech. As the CXO, my focus is to translate WiseTech growth strategy into action across the business and work with our global teams to deliver key strategic initiatives. This includes corporate development, which involves constantly monitoring and reviewing potential strategic partnerships and acquisition opportunities. When I took over as CXO in April, my first goal was to review our acquired businesses and facilitate their integration to the context of the COVID-19 operating environment. Within 3 months, Mark and I have restructured the earn-out of the majority of our acquired companies to enable acceleration of their integration into our core operations. Since our IPO in 2016, we have grown from around 520 employees to 2,000, 14 offices to 55 and 7 countries to 30. We've expanded organically and through acquisitions. We now have the scale, resources and the talent in place to fulfill our global growth aspirations, as well as the opportunity to deliver efficiencies, productivity improvements and cost savings. We will do this through shared functions across global operations and very mobile of duplication, centralizing physical operations and development hubs in critical jurisdictions, aligning our product and development teams by collocating development and product teams across the world, aligning our product portfolio with the CargoWise product suite, consolidating software product delivery into 3 regional data centers to provide better security and compliance management for our customers and rightsizing our global operations. Let's start with our administrative functions. There is a huge opportunity across our business to share support services and remove duplication. From an acquisition integration perspective, we can generate efficiencies by integrating our acquired businesses with our existing WiseTech infrastructure and removing the duplication of support services that can be offered through our head office. We aim to centralize our HR, finance, legal, marketing and sales functions. To appreciate the magnitude of the opportunity, you should think of each of our 4 key acquisitions, all having their own administrative and other functions, which can be consolidated into the WiseTech head office functions. In addition, many of our acquired businesses have resources dedicated to the provisioning of consulting services. This is very different to CargoWise high-margin global model, which utilizes single standardized global architecture, this online self-help training and channel partners to assist with nonrecurring on-site services and consulting. There is, therefore, further upside opportunity for us by transitioning many of these consulting services to our channel partners as part of the integration process and further reduce their associated costs. This then brings us to centralization of our physical spaces. We are operating in the industry that is rapidly growing and evolving, which is resulting in changes in the way the industry operates and in how we interact with customers. We have reviewed our business, core teams and processes with a focus on best positioning the business for long-term strategic success. To facilitate our global growth and coverage, we are focused on building our 3 key regional hubs in Sydney, Chicago and Hamburg. This will ensure we are strategically located in each of our major geographical markets. Sydney is our head office and our largest office with more than 500 people and serves as a gateway for Asia Pacific. Most of our global functions will be consolidated in Sydney and supported by our 2 other regional hubs and our satellite offices in key geographical locations. We are establishing a centralized administration function in Sydney that supports other regions. We are also continuing to build our regional hubs in Hamburg and Chicago. Hamburg in Germany will take over from U.K. as our European regional center. This brings us closer to our key customers and major logistics organizations in the European Union and helps us build our specific EU Privacy Management requirements under GDPR. Hamburg is already our largest office in the EMEA region with more than 100 people. Chicago, as you know, is well-established and provides us with a strong geographical foothold in the Americas. We are a product-first company, which means the caliber of our innovation is core to what differentiates our product from our competitors. We win business from top logistics companies globally because we deliver a superior product offering. More than 50% of our staff, around 1,000 people, are part of WiseTech Product and Development team. Our strategic acquisitions have enabled us to add some of the best product and technology experts in their respective markets to the WiseTech team. Our focus is on integrating this talent with our existing core development team to accelerate CargoWise development with restricted development and compliance updates on legacy product. We currently have development teams in 40 disparate locations. There is a huge opportunity for us to improve productivity and the caliber for our development and innovation by consolidating product teams in the same location, collocating development teams with product teams, centralizing product and development on CargoWise and a central team direction, adopting WiseTech productivity and visibility tools across the board, and developing team extensions in 1 of 3 major global development centers, with the exceptions of teams that have country-specific compliance requirements, such as customs and accounting, which will continue with geographic specific locations. By collocating and consolidating our product teams and development teams, we can continue to improve their development capability and increase their productivity. For example, our acquired local customs teams can help take our e-commerce solution across borders to provide an international e-commerce solution. Historically, most of our product development have been undertaken in Sydney. However, in recent years, we have seen an opportunity to extend our development capacity by establishing a development center in Nanjing, China. Our success in China has given us confidence to open a new development center in Bangalore, India, where we see a huge IT talent pool. We have strong local leadership in place, and we are well underway in building out the team. Several of our acquired companies already have teams in India. The consolidation of those teams in one center will not only bring greater innovation, productivity and scalability, but also reduce cost. There is also significant upside opportunity in integrating our acquisition product offerings with CargoWise platform to enable us to provide a consistent product experience and pricing model to our customers across all jurisdictions. Many of the businesses we have acquired operate in an industry niches that product offerings that complement each other. There's an opportunity to globalize these products on CargoWise platform and in some cases, split the product work between acquired teams based on specific strengths and experience. Our rate management business are a good example. CargoGuide's freight management tools focus on air freight rates and CargoSphere is the world's leading ocean rates management provider. We are bringing both development teams together with our CargoWise team on our global rates management solution. We are undertaking similar initiatives with parcel management and e-commerce fulfillment, bringing Pierbridge in the U.S. and SmartFreight which has a footprint in Europe and Oceania together to join forces to deliver a global solution for our customers. For both of these examples, we expect to highly automate the process by direct connections to carriers and to further consolidate interface development and mapping in Bangalore moving forward. As part of our product alignment process, it is important that we ensure that the customers of our acquired businesses also transition across to CargoWise, as it provides them with a powerful productivity tool and greater confidence to expand abroad. We are putting in place processes and allocating resources based on our experience and knowledge to ensure a seamless conversion that not only retains the existing customer base but facilitates its revenue-generating capacity. Let's turn now to our data centers and the important issue of data security. One of our key areas of focus is on consolidating our software product delivery to 3 regional data centers in Sydney, Chicago and Hamburg. Our priorities are security, compliance and cost effectiveness. We are migrating data center operations of acquired businesses into the WiseTech data centers where we have a centralized security architecture and are able to more effectively manage cybersecurity risk. This will enable us to reduce costs by consolidating legacy hosting technologies. It will also enable us to implement scalable backup systems to ensure that we have effective cyber protection, ransomware protection and contingency solutions in place. Importantly, it will provide us with a greater oversight and tighter management of regulatory compliance in each jurisdiction with the ability to apply greater security controls, assurances and detection methods. Last but not least, I'd like to talk about the opportunity to rightsize our global operations. We are now in a hybrid working model, pioneered through the COVID-19 pandemic. This incorporates work from home flexibility with a face-to-face interaction that office working provides. This working model affects the way we use our office space and allow us to reassess the requirements of our people and the best way to provide a seamless offering to our customers. We are currently reviewing all aspects of our global offices. In particular, the opportunities that exist to consolidate and rightsize our office space around the world and take advantage of the opportunities at collocating and technologically-enabled collaboration has delivered this year. While this consolidation and the renegotiation and exiting of leases will take time, the process has commenced with discussions already taking place with landlords. We anticipate that financial savings from reduced lease spaces will emerge in FY '21. Importantly, as part of this process, we want to provide ourselves with a flexibility to reduce or increase space as needed. We are also reviewing our procurement process and various supply contracts with a view to consolidating local agreements and the global umbrella agreements to further drive operational efficiencies, reduce administration tasks and negotiate more favorable commercial terms by leveraging the largest supply contract size. To wrap up my session today, I would reiterate that we have enormous opportunity to generate operational efficiencies and cost savings in our business. Our initiatives are well underway. Our present focus is mostly on realigning our acquired businesses into the core. As we announced in our full year results, we anticipate $10 million net cost out for this financial year, and run rate of $20 million to $30 million reduction in FY '22. We are confident and committed to achieving these numbers. These initiatives position WiseTech to deliver accelerated value creation, return on investment, capability and growth. To give you some color around the quantification of the savings and the impact of our margin and profitability, I will hand over to Andrew.

Thank you, Vlad, and good morning, everybody. You've heard us talk today about WiseTech's total addressable market, what differentiates CargoWise from competitor offerings and our strategy to increase market penetration. I'd like to spend some time now talking about how all this plays into WiseTech's commercial model. And more specifically, how it's designed to drive revenue growth and increase profitability. Let's start with WiseTech's revenue generation. In short, we generate revenue growth from 3 sources. Firstly, from existing customers who increased their usage for increased transactions and users on the CargoWise platform as they continue to roll out and grow, adopt new products and features and increase their demand for co-funded product enhancements. Secondly, from new customers that sign up to the CargoWise platform. And last but not least, from our strategic acquisitions. Given our core offering, CargoWise is a SaaS cloud-hosted product, 72% of WiseTech's revenue is generated from on-demand licensing. This typically involves customers paying monthly in arrears based on usage without any upfront license fee. This means we don't require customers to enter long-term contracts. Customers can configure their platform to suit their specific needs and add further modules, users, locations and transactions as they become more familiar with our product, without the need for any customization, site visits, coding changes or additional sales contracts. This enables us to streamline the sales and onboarding process, reduce dependency on direct sales, lower our customer acquisition costs and drive customer adoption of the product, whilst at the same time, continuously releasing new features and announcements which generate further revenue growth opportunities. We use a Seat Plus Transaction license, or STL model, which we introduced in 2014 to coincide with the launch of CargoWise. All new CargoWise customers are signed up to our STL model. In FY '20, STL fees accounted for 94% of all CargoWise revenue. Prior to 2014, we used Module User License or MUL model, under which we charged a fee per user per module per month. We've been phasing out MUL billing by converting customers onto our STL model with this transition effectively completed in FY '20. Under our STL model, customers pay a small fee for each user and a fee for each transaction, which is generally aligned to the point of value creation for our customer. The inclusion of a fee per transaction is an important and deliberate differentiator that provides greater revenue upside potential for our business. So let's take a closer look at how we derive that upside. The variables that drive our revenue growth under STL model reflect the customer's journey from local solution to full global rollout and the productivity benefits and efficiency gains that our software delivers. This results in a win-win model for WiseTech and its customers. We typically see customers start regionally and expand globally, enabling WiseTech's revenue to grow as our customers expand their usage. From a productivity perspective, even though fewer users may be required to handle the workflow, due to the efficiencies that our software delivers because we charge on a transaction basis, our revenues grow as customers' transaction volumes grow. This brings us to one of the most important features of our STL model. The network effect with an existing CargoWise customers base and the broader supply chain market. Many of our STL customers represent significant and better growth potential as strong internal network effects drive organic adoption and increased usage over time, with minimal spending on sales and marketing required by WiseTech. We leveraged the strong internal network within these customers so that they effectively act as CargoWise champions, promoting our software benefits, both internally to other functional teams within their organization and externally to other global supply chain participants. The same network principle comes into play with customer counterparties. The interconnectedness and collaboration required through the global supply chain means participants benefit from utilizing common logistics service provider software. This facilitates our growth as existing CargoWise customers encourage other logistics providers to adopt our platform as a way to reduce costs while increasing efficiency, productivity, accuracy, speed and visibility of information between organizations and across the entire global supply chain. The networking effect is further enhanced by industry consolidation. And you heard Richard talk today about the fragmentation in the logistics provider sector and the structural changes, which are gaining pace as a result of the COVID-19 pandemic. We're ideally placed to benefit from this industry consolidation given our strategic focus on the Top 25 Freight Forwarders and Top 200 Global Logistics Providers. If you look at the freight forwarding sector as an example, whilst it's expected to continue to grow, consolidation has meant that CargoWise has been the beneficiary of the biggest share gain as our customers acquire other smaller players in the market. If you look at DSV, as an example, it's early global rollout and company-wide use of CargoWise, has facilitated a successful integration of 2 major transformative acquisitions in the past 5 years, enabling it to realize synergy benefits from their integration. This is a testament to the scale and efficiency benefits that customers can realize using the CargoWise platform. It enables them to seamlessly integrate acquisitions putting them in the driver seat for further consolidation opportunities that arise as the industry continues to undergrow structural change. I'd like to pause here and talk about value versus price as a driver of customer behavior and decision-making. We've spoken extensively about the productivity gains, cost reductions and efficiencies that CargoWise is designed to deliver to our customers. It enables them to manage highly complex, time-critical operations that are core to their business activities. Hence, our software becomes embedded in our customers' operational processes, and we're able to achieve high levels of customer stickiness with low levels of price sensitivity. This is an important competitive differentiator. Because it means once a customer is signed up, we don't have to continually participate in competitive tender processes for additional services and functionalities. As a result, our customer attrition rate is very low, at less than 1% per annum for the past 8 years, resulting in a significant lifetime value for each of our CargoWise customers and users. Another important feature of our on-demand billing is that it provides WiseTech a high degree of revenue visibility. 97% of CargoWise revenue is recurring and 89% of group revenue is recurring, providing us with stable long-term and relatively predictable revenue streams. Prior to our adoption of on-demand licensing, we utilized onetime license model, which involve customers paying an upfront license fee plus annual recurring maintenance fees. Whilst WiseTech ceased offering onetime licenses to new customers in 2012, many of our acquisition assets are onetime license models. In FY '20, 17% of our group revenue was derived from onetime license maintenance fees, which constitute recurring revenue. Another 11% of our revenue was derived from onetime licenses and support services, which is nonrecurring. As part of our acquisition integration program, we're transitioning these businesses to our long-term growth STL model and expect revenue from these businesses to be flat or reduce as the transition takes place. In parallel with this transition, we're removing the duplication of functions and streamlining processes and teams that are part of our acquired businesses, to align them with the WiseTech business model. It should be noted that our acquired businesses generally have higher products and services support costs and lower leverage due to their smaller size and onetime license model, which means they typically have lower gross profit margins and EBITDA margins than CargoWise. For each business we acquire, we expect the dilutive impact of their existing margins to reduce over time as they integrate where they'll convert on to the WiseTech platform. We anticipate that our integration process will deliver net cost savings of $10 million in FY '21, after the impact of onetime costs and achieve a cost saving run rate for FY '22 of $20 million to $30 million. If you look at our FY '21 guidance, this contributes to 3 to 5 points of EBITDA margin expansion versus FY '20 on top of our already-strong CargoWise EBITDA margin, which was 48% in FY '20. I might pause here to highlight the fact that we're a global company with customers operating in 160 countries. 75% of our FY '20 group revenue was generated in currencies other than Australian dollars. When you think about the foreign exchange position in our business, you should also consider natural hedges. We have both revenue and expenses denominated in local currencies, including recent acquisitions. FY '20 revenues included a $12.1 million FX benefit, which was broadly in line with the $10 million benefit we reported in FY '19. In FY '21, we've included in our guidance $20 million of revenue and $9 million of EBITDA FX headwind versus FY '20. We do have hedging positions in place to cover part of our U.S. dollar and euro revenue exposure. And when you look at our guidance for FY '21, you should review the FX sensitivity analysis we included in our FY '20 results presentation and have provided again today in this presentation. In addition to our focus on top line revenue growth, our commercial model is also designed to ensure profitability is enhanced via an efficient operating structure. There are 3 major categories of operating expense in our business; general and administration, sales and marketing and product design and development. Our G&A costs represent 20% of revenues in FY '20 and include our M&A costs and the impact of acquired businesses, which have their own G&A costs. CargoWise itself, however, is intentionally designed to be a very efficient operating cost model. Our single standardized global architecture with online self-help training and channel partners to assist with integration means we avoid the costs associated with nonrecurring on-site services, implementations and consulting. A similar efficient approach is taken to sales and marketing. Our STL model means a significant portion of our revenue growth is usage-driven, allowing us to generate significant growth without additional sales expenditure. This differs to a common competitor approach, which requires more sales interaction and negotiation, site visits and additional license sales to expand customers' usage. In terms of new customer acquisitions, whilst we do have a global sales team in our regional headquarters, our STL model and our ability to leverage the interconnectedness and network promotional effects means that the sales cycle has shortened, and we improved the efficiency of our direct sales activity. As you heard earlier, our sales process typically doesn't require on-site visits for CargoWise product demonstrations. Instead, we use virtual demonstrations conducted by our business development analysts. On-site visits, if required, are typically reserved for larger delta size customers. This low-touch sales process has helped maintain our sales and marketing expenditure at 13% of revenue in FY '20, a comparatively low level than our SaaS peers. As I mentioned earlier, we're focused on removing duplication, with significant cost savings earmarked to be delivered in both FY '21 and FY '22 as this process takes place. Whilst our commercial model is designed to enable low maintenance, marketing and sales cost, there is strong ongoing investment in product design and development. We're a technology company. And the asset we build is software. Our competitive positioning and growth are heavily reliant on our ability to continue to innovate and provide technology solutions for the pain points in the constantly evolving global logistics and supply chain sectors. Our R&D investment is high and a key driver of our long-term recurring revenue growth. In FY '20, 37% of our revenue was reinvested in R&D, which is at the top end of other SaaS peer investment levels. Our commercial model is based on the premise that by continuing to increase R&D investment, our operating leverage will deliver long-term recurring revenue growth. Over the past 5 years, we've invested $438 million in R&D, and our revenue has grown from $103.3 million in FY '16 to $429.4 million in FY '20, a CAGR of 43%. In accordance with the requirements of the applicable Australian Accounting and International Financial Reporting Standards, we capitalize our investment in new, internally developed software components. For example, our investment in R&D related to the build-out of global customs capability, including native customers built in Asia, Europe and Latin America, international logistics and international e-commerce capabilities are capitalized. Capitalized R&D accounts for between 40% and 50% of our total R&D investment each year, and the remainder, which relates to bug fixes, maintenance and researcher is expense. This approach is consistent with other ASX-listed technology peers, but it's different to the treatment of R&D under U.S. GAAP, which generally leads to lower average capitalization rates. An important difference when you compare WiseTech to its U.S. counterparts. Before I wrap up, I'd like to talk briefly about our strong operating cash flows and the financial firepower we have to fund future growth initiatives. Over the past 5 years, WiseTech has delivered $451 million of operating cash flow as well as $398 million of EBITDA. The ability of the business to generate such strong operating cash flows is a testament to the strength of the underlying commercial model and is indicative of the quality of our earnings. Our closing cash balance at the end of FY '20 was $224 million, and together with our undrawn $190 million debt facility and $200 million accordion provides us with significant liquidity and and the ability to continue to fund our long-term strategic growth. The key takeout I'd like to leave you with today is that WiseTech's commercial model is built on a solid financial foundation. We have a strong balance sheet, robust cash flows, ample financial headroom to fund future growth initiatives and an efficient low-cost operating structure designed to enhance profitability and drive future revenue growth. Our product, CargoWise, is a win-win offering that aligns WiseTech's growth to customer productivity gains and usage expansion, resulting in extremely low customer attrition rates of less than 1%. We have a product pipeline and R&D program that we believe will ensure we have a competitive edge and enable us to maintain our existing product leadership position. We're well placed to capitalize on the structural changes in the sector as customers shift from aged legacy in-house proprietary applications and have plenty of upside opportunities to continue to grow our revenues and improve margins and profitability through the centralization of key functions and the continued focus on the CargoWise product suite. Our focus is on continuing to differentiate our offering from competitors through relentless product innovation, which means we're not competing merely on price, but rather with value-add based expertise, which brings us to our people. [Presentation]

My name is Angelina McMenamin, and I'm Head of Talent Acquisition at WiseTech. Over the last 6 years, our team has pioneered a talent acquisition system that allows us to bring together a unique set of behavioral psychometric and work-based testing protocols to identify a diverse mix of the most talented and driven people to drive our innovation engine. Our culture allows our teams to maximize their productivity, efficiency and effectiveness by attracting highly talented and motivated people into cohesive teams with shared goals. We know that there are successful traits that we can select for. We've built a recruitment platform to effectively identify the most appropriate talent to build and deliver products that surprise and delight our customers and empower their success. We've researched this structure in partnership with the senior organizational psychologist at the University of Technology in Sydney. We've identified cleared attributes that allow us to select not just the capability, but the application of that talent through an outcome. We apply this across our organization, whether within our development teams, our industry experts or our commercial operations. The people we look for love to build things. They love to create things. And at WiseTech, we love to empower and enable them to do what they are passionate about and what they do best, building the operating system for global logistics.

To wrap up today's investor session, the key takeouts I like to leave with you is that our vision is unwavering. We are building a world-leading organization with a clear goal to empower and enable the world supply chains. Our slower today, faster forever and productivity is center of everything mantras have enabled us to create a unique customer value proposition. This culture and the platforms that it has spawned have been 25 years in the making and cannot be easily replicated. There has never been a greater need for the end-to-end digitized, globally integrated logistic technology that CargoWise provides and the momentum we are gaining in signing up global rollout is a testament to this. Our opportunity for growth and considered market penetration is enormous. And I can genuinely say that there has never been a more exciting time to be part of the WiseTech team and the WiseTech journey. I look forward to touching base with you again at our half-year results in February, and thank you for your interest in WiseTech.