Hsenid Business Solutions Plc · CSELK:HBS.N0000
Hsenid Business Solutions — H1 FY2024 Earnings Presentation
18 slides from Hsenid Business Solutions's earnings presentation, November 2023
Slide 1: Half-yearly Investor Forum 1H FY2024
hSenid Business Solutions PLC Half-yearly Investor Forum 1H FY2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements for which there are risks, uncertainties, and assumptions. Forward-looking statements may include any statements regarding strategies or plans for future operations; any statements concerning new features, enhancemen
Slide 3: HBS at a Glance
HBS at a Glance Offering a comprehensive $10 Bn+ TAM Seamless Connection to Third-Party Systems OpenAPIs to connect to third-party ERP, Accounting and range of HRIS solutions other software solutions Market Opportunity APAC and MEA Geared to Handle Large and Complex Organisations $2.7 Mn Exit ARR* L
Slide 4: Key Business Updates
Key Business Updates Product and Talent Product development o Obtained ISO 27017 certification on Cloud Security Control, for the first time in Sri Lanka o Launch of advanced features on recruitment module and meal management module, including the POS and mobile app o Working towards the release o
Slide 5: Key Business Updates: Sales and Marketing
Key Business Updates Sales and Marketing Undergoing transformation as a "Sales-led" organization o Strong focus on inculcating both the "science" and "art" of selling o Strengthening of local sales teams in APAC and MEA markets o Increasing average deal size is a key priority Market development
Slide 6: New Deal Bookings
New Deal Bookings New Deal Bookings USD mn USD 0.8 Mn in New deal closures - up 2.5 18% in 1H FY24 compared to 1H FY23 o The revamped sales process backed by strong lead generation campaigns resulted in new deal 2.0 closures for 2Q FY24 growing by 141% from 1Q FY24 1.5 Regionally, APAC accounted
Slide 7: Quest to be the Most Preferred HR Tech Player in APAC and MEA
Quest to be the Most Preferred HR Tech Player in APAC and MEA Sri Lanka continues to generate majority On-Prem to Cloud shift continuing as expected revenue; expect MEA to pick up in the upcoming quarters 15% 14% 14% 14% 12% MEA Other † 22% 24% 26% 9% 10% 8% PHR Outsourcing 7% 5% 4% 5% 30% Tracking
Slide 8: Business Segments PHR On-Premise and Cloud
Business Segments PHR On-Premise revenues PHR On-Premise and Cloud LKR mn 3yr CAGR +0% (-17% in USD cc) 450 375 PHR On-Premise revenues slight increment in 300 LKR terms due to: 225 3% YoY growth (-2% in USD cc) o Invoicing on 3rd Milestone of Government of Uganda 150 (GoU) project. 75 o Stabilizi
Slide 9: Business Segments PHR Outsourcing and Tracking Solutions
Business Segments PHR Outsourcing and Tracking Solutions Tracking Solutions revenues PHR Outsourcing revenues LKR mn LKR mn 3yr CAGR +32% 150 (+34% in USD cc) 3yr CAGR +34% 90 (+13% in USD cc) 120 75 -18% YoY growth 60 90 (-18% in USD cc) -3% YoY growth (-4% in USD cc) 45 60 30 30 15 0 0 FY20 FY21 F
Slide 10: ARRs Grown at a CAGR of 31% in the Past 3 Years
ARRs Grown at a CAGR of 31% in the Past 3 years Core-recurring† revenues reached 55% in 1H FY24 Annual core recurring revenues LKR mn 800 3yr CAGR +31% 36% 700 42% 41% 48% 48% 55% 600 +22% YoY 500 growth 400 300 64% 59% 58% 52% 52% 45% 200 100 0 FY20 FY21 FY22 FY23 1H FY23 1H FY24 FY20 FY21 FY22 FY2
Slide 11: Revenue Drill Down
Revenue Drill Down 3Yr CAGR YoY growth All in LKR millions FY20 FY21 FY22 FY23 1H FY23 1H FY24 (in LKR / USD cc) (in LKR / USD cc) PHR On-premise 359 374 408 362 144 148 Recurring revenue 103 110 109 110 51 61 +0% / -17% +3% / -2% Non – Recurring revenue 256 264 298 252 93 86 PHR Cloud 208 278 372 6
Slide 12: Cost of Sales Drill Down
Cost of Sales Drill Down YoY All in LKR millions FY20 FY21 FY22 FY23 3Yr CAGR 1H FY23 1H FY24 growth On-site and third-party implementation 58 58 59 94 +18% 51 79 +53% costs† Infrastructure costs†† 25 34 53 170 +90% 78 77 -1% Cost of devices sold 25 28 54 64 +38% 32 17 -46% Mobile solutions related
Slide 13: Analysis of Normalized EBITDA
Analysis of Normalized EBITDA Normalised COGS Admin expenses†† S&D expenses††† EBITDA margin † as a % of Sales as a % of sales as a % of sales 63% 32% 41% 56% 56% 20% 29% 29% 49% 24% 47% 24% 43% 20% 13% 12% 12% 12% 16% 16% 11% 8% 13% -16% FY20 FY21 FY23 FY22 FY20 FY21 FY23 FY22 FY20 FY21 FY23 FY22 F
Slide 14: Summarized Income Statements
Summarized Income Statements In LKR millions FY20 FY21 FY22 FY23 1H FY24 Revenue 955 961 1,091 1,464 758 Gross profit 491 513 617 644 278 Gross profit margin 51% 53% 57% 44% 37% Normalised EBITDA 227 280 313 114 (121) EBITDA margin 24% 29% 29% 8% (16%) FX gain 11 27 287 71 (8) Net interest income 4
Slide 15: Cash Position and IPO Fund Utilization
Cash Position and IPO Fund Utilization Cash position at ~LKR 1.2 Bn IPO fund utilization at 45% LKR mn LKR mn 700 1,600 600 1,400 308 1,200 500 1,000 400 800 300 600 200 350 384 400 168 100 140 200 0 34 - Market Product Potential Strategic Total FY19 FY20 FY21 FY22† FY23† 1H FY24† Development Develo
Slide 16: Free Cash Flow Generation
Free Cash Flow Generation Annual free cash flow generation LKR mn 300 200 100 - (100) (200) (300) (400) FY20 FY21 FY22 FY23 1H FY24† Operating cash flow Capex Free cash flow to the firm † Includes higher capex on product development, and negative impact from working capital Page 16
Slide 17: Key Updates on Investor Relations (IR)
Key Updates on Investor Relations (IR) Quarterly IR calls From 3Q FY24 onwards, hSenid Business Solutions PLC will be hosting quarterly IR calls, in conjunction with the release of the quarterly results. Level of depth of information provided on a quarterly basis will be similar to that of the c
Slide 18: Q&A Session
Q&A Session You can use the Q&A functionality in zoom to send in your questions; OR ALTERNATIVELY Click on the "Raise your hand" button to be given an opportunity to unmute your microphone and pose your questions. Investor Relations Contacts Nilendra Weerasinghe – Chief Financial Officer +94 11 462
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