WiseTech Global : WTC 1H22 Appendix 4D and financial report

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ASX Announcement: 2022/08

23 February 2022

WTC 1H22 Appendix 4D and financial report

Attached are the Appendix 4D and financial report for the half-year ended 31 December 2021.

//ENDS

Authorized for release to ASX by David Rippon, Corporate Governance Executive and Company Secretary.

Contact information
INVESTOR RELATIONS:	MEDIA:
Ross Moffat	[phone]	Helen Karlis	[phone]

About WiseTech Global

WiseTech Global is a leading developer and provider of software solutions to the logistics execution industry globally. Our customers include over 18,0001 of the world's logistics companies across more than 165 countries, including 42 of the top 50 global third-party logistics providers and 24 of the 25 largest global freight forwarders worldwide2. Our flagship platform, CargoWise, forms an integral link in the global supply chain and executes over 72 billion data transactions annually.

Our mission is to change the world by creating breakthrough products that enable and empower those that own and operate the supply chains of the world. At WiseTech, we are relentless about innovation, adding over 4,600 product enhancements to our global platform in the last five years while bringing meaningful continual improvement to the world's supply chains. Our breakthrough software solutions are renowned for their powerful productivity, extensive functionality, comprehensive integration, deep compliance capabilities, and truly global reach. For more information about WiseTech Global or CargoWise, please visit wisetechglobal.comand cargowise.com

1. Includes customers on CargoWise and platforms of acquired businesses whose customers may be counted with reference to installed sites
2. Armstrong & Associates: Top 50 Global 3PLs & Top 25 Global Freight Forwarders ranked by 2020 logistics gross revenue/turnover and freight forwarding volumes

WiseTech Global Limited ABN 41 065 894 724 Unit 3a, 72 O'Riordan Street Alexandria NSW 2015

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APPENDIX 4D

WiseTech Global Limited

For the half-year ended 31 December 2021

Results for announcement to the market

Six months ended 31 December ($M)			2021	2020
Revenue from ordinary activities	Up	18%	281.0	238.7
Statutory net profit after tax	Up	74%	77.4	44.4
Underlying net profit after tax1	Up	77%	77.3	43.6
Basic Earnings per share (cents)	Up	74%	23.8	13.7

1Underlying net profit after tax excludes fair value adjustments from changes to acquisition contingent consideration (FY21: $0.1m,

FY20: $0.8m).

Dividends - Ordinary	Amount per	Franked amount
shares	security	per security	Record date	Payment date
FY22 interim dividend	4.75 cents	4.75 cents	14 March 2022	8 April 2022
FY21 final dividend	3.85 cents	3.85 cents	13 September 2021	8 October 2021

Dividend reinvestment plan

WiseTech has a dividend reinvestment plan ("DRP") under which eligible shareholders can reinvest all or part of any dividends to acquire additional WiseTech shares. The price of the shares under the DRP will be the average of the daily volume weighted average price per share of all shares sold in the ordinary course of trading on the Australian Securities Exchange ("ASX") for the five trading days from 16 March 2022 to 22 March 2022, rounded to the nearest cent. The last date for receipt of election notices from shareholders wanting to commence, cease or vary their participation in the DRP for the FY22 interim dividend is by 5pm (Sydney time) on 15 March 2022.

Net tangible assets ("NTA") backing
As at 31 December	2021	2020
NTA ($M)	259.8	160.6
Number of shares (in millions)	326.3	323.8
NTA per share (cents)	80	50

Review

This report is based on the consolidated financial statements for the half-year ended 31 December 2021 which have been reviewed by KPMG.

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Directors' report

The Directors present their report together with the consolidated financial statements of the Group comprising WiseTech Global Limited ("Company") and its controlled entities for the half-year ended 31 December 2021 and the review report thereon.

Directors

The names and details of the Company's Directors in office during the financial period and until the date of this report are set out below. Directors were in office for this entire period unless otherwise stated.

• Andrew Harrison
• Richard White
• Richard Dammery	(Appointed: 1 December 2021)
• Teresa Engelhard
• Charles Gibbon
• Michael Gregg
• Maree Isaacs
• Michael Malone	(Appointed: 1 December 2021)
• Arlene Tansey

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Operating and financial review

for the half-year ended 31 December 2021

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Review of operations

Principal activities

We are a leading provider of software solutions to the logistics industry globally. We develop, sell and implement software solutions that enable and empower logistics service providers to facilitate the movement and storage of goods and information, domestically and internationally. We provide our solutions to more than 18,000 customers in over 165 countries.

Our industry-leading flagship technology, CargoWise, is a deeply integrated, global software platform for logistics service providers. Our software enables and empowers logistics service providers to execute highly complex logistics transactions and manage their operations on one global database across multiple users, functions, offices, corporations, currencies, countries and languages. Our main data centers in Australia, Europe and the US deliver our CargoWise platform principally through the cloud, which customers access as needed and pay for usage as they execute on our platform.

Our customers range from small and mid-sized domestic and regional logistics providers to large multinational and global logistics providers, including 24 of the Top 25 Global Freight Forwarders1 and 42 of the Top 50 Global Third-Party Logistics Providers (3PLs)2. Our software solutions are designed to assist our customers to efficiently navigate the complexities of the logistics industry and can dramatically increase productivity, reduce costs and mitigate risks for our customers.

Innovation and productivity remain key areas of focus for the business. We invest significantly in product development and continue to deliver hundreds of new product features and enhancements each year. This drives greater usage of our CargoWise platform, enabling the business to achieve sustainable, profitable growth. Our strategy of focusing on the '3Ps' - Product; Penetration; and Profitability - is designed to deliver our vision to be the operating system for global logistics. We are building our capabilities and, where appropriate, fast-tracking our technology development and knowhow through acquisitions. This allows us to deliver a comprehensive global logistics execution solution for our customers, from the first-mile road movement, connecting to long-haul air, sea, rail and road, crossing international borders - all while navigating complex regulatory frameworks with improved compliance, safety, visibility, predictability, manageability and productivity.

We are committed to making a positive contribution to the communities that we are part of and recognize that our social license to operate is integral to our ability to create long-term value for our stakeholders. Our people, the communities and marketplaces in which we operate, and the environment are integral to our strategy and our operating decisions. We are focused on ensuring we prioritize accountability and that we have robust governance frameworks in place.

Our technology solutions have an important role to play in solving the complex pain points of the logistics industry and in enhancing productivity and efficiencies for logistics providers. We have now secured a strong foundation for future technology development and geographic expansion, with 35 product development centers, including centers of excellence in Bangalore and Nanjing, and a headcount of 1,900 people globally across 35 countries.

1. Based on Armstrong & Associates Inc. Top 25 Global Freight Forwarders List ranked by 2020 logistics gross revenue/turnover and freight forwarding volumes - Updated 3 September 2021.
2. Based on Armstrong & Associates Inc: Top 50 Global Third Party Logistics Providers List ranked by 2020 logistics gross revenue/turnover

• Updated 3 September 2021.

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Summary of statutory financial performance

During the six months to 31 December 2021, we delivered solid revenue growth, driven mainly by increased market penetration, customer usage and adoption of our technology, as well a price change to CargoWise reflecting increased investment in product research and development (R&D), data center hardware and cyber security. We continued our significant investment in innovation and development and made considerable progress with our cost reduction initiatives to drive operational efficiencies and acquisition synergies across the business.

Revenue increased 18% to $281.0m (1H21: $238.7m)

Operating profit increased 75% to $107.6m (1H21: $61.4m)

Net profit after tax increased 74% to $77.4m (1H21: $44.4m)

Underlying net profit after tax increased 77% to $77.3m (1H21: $43.6m)

Basic earnings per share increased 74% to 23.8 cents (1H21: 13.7 cents)

Summary financial results1

	1H22	1H21	Change	Change
	$m	$m	$m	%
Recurring On-Demand revenue	225.0	179.4	45.6	25%
Recurring One-Time License ("OTL") maintenance revenue	37.1	39.0	(1.9)	(5)%
OTL and support services	18.8	20.3	(1.5)	(7)%
Revenue	281.0	238.7	42.3	18%
Cost of revenues	(42.4)	(38.9)	(3.5)	9%
Gross profit	238.6	199.7	38.9	19%
Product design and development2	(66.7)	(64.1)	(2.5)	4%
Sales and marketing	(22.5)	(27.0)	4.6	(17)%
General and administration	(41.9)	(47.2)	5.3	(11)%
Total operating expenses	(131.0)	(138.3)	7.3	(5)%
Operating profit	107.6	61.4	46.2	75%
Net finance costs3	(1.9)	(1.3)	(0.6)	43%
Fair value gain on contingent consideration	0.1	0.8	(0.7)	(90)%
Profit before income tax	105.8	60.8	44.9	74%
Tax expense	(28.5)	(16.5)	(12.0)	73%
Net profit after tax	77.4	44.4	33.0	74%
Underlying net profit after tax4	77.3	43.6	33.7	77%
Key financial metrics	1H22	1H21	Change	1H227
Recurring revenue %	93%	91%	2pp	99%
Gross profit margin %	85%	84%	1pp	90%
Product design and development as % total revenue2	24%	27%	(3)pp	20%
Sales and marketing as % total revenue	8%	11%	(3)pp	7%
General and administration as % total revenue	15%	20%	(5)pp	15%
Capitalized development investment ($m)5	38.8	38.3	0.5	32.5
R&D as a % of total revenue6	30%	35%	(5)pp	29%

1. Differences in tables are due to rounding, see page 16 Rounding of amounts.
2. Product design and development includes $21.5m (1H21: $19.4m) depreciation and amortization but excludes capitalized development investment.
3. Net finance costs includes finance income and finance costs but excludes fair value gain on contingent consideration.
4. Underlying net profit after tax excludes fair value adjustments from changes to acquisition contingent consideration (1H22: $0.1m, 1H21: $0.8m).
5. Includes patents and purchased external software licenses used in our products.
6. R&D is total investment in product design and development expense, excluding depreciation and amortization, but including capitalized development investment.
7. Excluding acquisitions; acquisitions are those businesses acquired since 2012 and not embedded into the CargoWise platform.

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