Felix Group Holdings Ltd. · ASX:FLX
Felix — FY2023 Earnings Presentation
30 slides from Felix's earnings presentation, Aug 30, 2023
Slide 1: FY23 Results Presentation
FY23 Results Presentation 30 August 2023
Slide 2: Contents
Contents FY23 highlights and results 3 Felix overview 11 Growth strategy 17 Outlook 24 Additional information 27 2
Slide 3: FY23 highlights and results
FY23 highlights and results 3
Slide 4: FY23 highlights
FY23 highlights Strong sales momentum with 11 new Contractors and 20 expansion deals signed $6.0m $4.0m $304k 45 Group ARR Contracted Contractor ARR1 Contractor MRR2 Tier 1 and leading Contractors +27% on FY22 +44% on FY22 +65% on Jun-22 +13% on FY22 100%+ 11 20 81.5k Contractor ARR retention3 New C
Slide 5: FY24 momentum
FY24 momentum Continued conversion of advanced pipeline, with several contracts won in July and August CY23 Vendors in the Contracted Vendor Marketplace Contractor (‘000) ARR (unaudited; $m) Strong start to FY24 o ~$0.4m in Contractor ARR added in the first two months of FY24 4.4 o Average ARR for t
Slide 6: Group ARR
Group ARR Group ARR of $6.0m in FY23, representing a 27% increase on pcp, Group Contracted ARR (unaudited; $m) supported by strong conversion of Contractor pipeline 6.0 Contractor ARR made up 67% of Group ARR in FY23, an increase from 59% in FY22, inline with Felix‘s deliberate strategic shift towar
Slide 7: Monthly recurring revenue momentum
Monthly recurring revenue momentum Contractor MRR continues to grow, providing further validation of the Contractor-led strategy Contractor MRR1 (unaudited, $‘000) 315 304 +65% 255 184 +37% 172 135 115 D EC -20 J UN-21 DEC -21 J UN-22 D EC -22 J UN-23 1. Contractor MRR represents the monthly recurri
Slide 8: Growing operating leverage
Growing operating leverage Improvement in OpEx as a % of revenue highlighting growing operating leverage and supporting pathway to cash flow breakeven Group revenue (unaudited, $m)1 and OpEx as a % of revenue 6 400% • As a percentage of group revenue, operating 340% 5.1 350% expenses were 218% in FY
Slide 9: Summary FY23 financials
Summary FY23 financials FY23 ($000) FY22 ($000) Change (%) Significant revenue growth achieved with operating expenses REVENUE remaining stable, highlighting Felix‘s growing operating leverage 1 Contractor revenue 3,218 2,041 58% 2 Vendor revenue 1,886 1,875 1% 58% increase in Contractor revenue dri
Slide 10: Platform engagement metrics
Platform engagement metrics Engagement across key platform metrics reflects Felix becoming entrenched in Contractor operations Active Compliance Requests for Quotations Active Projects Contractor User Accounts Documents (RFQ) +153% +30% +69% +31% on pcp on pcp on pcp on pcp 109,908 9,929 5,867 106,8
Slide 11: Felix overview
Felix overview felix 11
Slide 12: Felix snapshot
Felix snapshot Leading enterprise platform for capital asset sectors to Established procurement management platform linking Contractors and manage their high-risk and diverse supply chains Vendors, digitising and automating complex supply chains Trusted by Tier 1 Contractors to manage risk, increase
Slide 13: Convergence of industry tailwinds
Convergence of industry tailwinds Felix is capitalising on a significant digital disruption opportunity across the construction industry Supply chain complexity Transparency and Siloed critical Manual processes and compliance oversight information Significant reliance by Contractors on third- Lack o
Slide 14: Established platform connecting industry players
Established platform connecting industry players Felix links Contractors and Vendors, digitising and automating complex procurement supply chains Contractors Vendors (e.g. CIMIC) engage a supply chain of third-party (e.g. Boral) are contracted to deliver specific Vendors to deliver capital projects
Slide 15: End-to-end solution
End-to-end solution Felix enables Contractors and Vendors to efficiently find, manage and engage each other Contractor modules Vendor modules Vendor Sourcing Procurement Contracts Vendor Marketplace Vendor Wallet and Management Schedule Passport Seamlessly manages all tiers Enables project teams to
Slide 16: Highly strategic leading Contractors
Highly strategic leading Contractors Tier 1 and leading Contractors trust Felix to automate and digitise high risk procurement supply chains Note: Select customers only. 16
Slide 17: Growth strategy
Growth strategy Large domestic and international Contractor pipeline and expansion into adjacent sectors Capitalise on expansion opportunities with existing customers Unlock the value of Felix’s Vendor Marketplace Strategic platform development 17
Slide 18: Focus on pipeline conversion
Focus on pipeline conversion Strong and growing pipeline of domestic and international customers Conversion approach and focus: International 19 ↘ Build on strong ongoing sales momentum from FY23 Contractors and early FY24 to continue driving adoption in both target and adjacent sectors ↘ Leverage r
Slide 19: International expansion
International expansion Targeted and capital-light expansion strategy into select international markets Opportunity in target international markets o Average ARR of international opportunities of $192k, significantly higher than current average Contractor ARR of $94k o Named preferred bidder on two
Slide 20: Penetration of adjacent sectors
Penetration of adjacent sectors Leveraging success in initial target sectors to drive traction in high value adjacent sectors Continued focus on and traction Broad applicability of platform validated by traction in adjacent across initial target sectors sectors Government & Infrastructure Engineerin
Slide 21: Land and expand opportunity
Land and expand opportunity Opportunities to generate high margin / low CAC revenue from existing customers Demonstrated ability to generate revenue from existing customers through: ↘ Upselling to large parent organisations and rolling Felix out across multiple subsidiaries (e.g. NRW Land Expand Sca
Slide 22: Vendor Marketplace monetisation
Vendor Marketplace Long-term growth underpinned by significant opportunity to unlock the value of the Vendor Marketplace monetisation Vendors in the Vendor Marketplace (‘000) o Contractor-led strategy accelerating Vendor Marketplace take-up as new Contractors mandate usage of Felix across respective
Slide 23: Strategic platform development
Strategic platform development Investment to expand markets and enhance platform value Current focus Medium-term focus Long-term focus Continue making architectural updates to facilitate Integrated ecosystem including an expanded Vendor modules, including Compliance Passport local hosting in new reg
Slide 24: Outlook
Outlook felix 24
Slide 25: FY24 priorities
FY24 priorities Accelerate Tier 1 Contractor growth Strong momentum with large Tier 1 contract wins in Q4 FY23 and early FY24. Significant pipeline growth of domestic and international prospects with Felix named as preferred bidder for 2 large global Contractors, in addition to numerous other Tier 1
Slide 26: Favourable industry backdrop
Favourable industry backdrop Structural tailwinds support long-term growth Compliance ESG Digitisation Infrastructure spending Increasing legislative requirements, such as Contractors are pursuing initiatives to Errors, delays, disputes and rework – Government initiatives to stimulate the Modern Sla
Slide 27: Additional information
Additional information felix 27
Slide 28: Corporate Overview
Corporate Overview Share price performance (last 12 months) Substantial shareholders David Williams 14.4% $0.30 Perennial Value Management 11.9% Thorney Investment Group 9.1% $0.25 Salter Brothers Emerging Companies 9.0% George Rolleston (NED) 6.9% Mike Davis (Co-Founder and CEO) and Michael Trusler
Slide 29: Board and Management
Board and Management Michael Bushby - 30 years’ experience in Government including former - Extensive corporate experience in Australia and Chief Executive of Roads & Traffic Authority in NSW Joycelyn Morton internationally across a variety of industries Chairman - Senior experience in the transport
Slide 30: Disclaimer
Disclaimer The information in this presentation does not constitute Accordingly, neither the Company nor any of its directors, personal investment advice. The presentation is not intended officers, employees, advisers, associated persons to be comprehensive or provide information required by or subs