Kainos Group Plc · LSE:KNOS
Kainos — Investor Day (April 2016)
55 slides from Kainos's investor day presentation, Apr 19, 2016
Slide 1: Capital Markets Day London
Capital Markets Day London Kainos Group plc 19 April 2016
Slide 2: Agenda
Agenda 3.30pm Brendan Mooney, CEO Introductions & Opening Remarks 3.40pm Russell Sloan, Divisional Director Sam Bolton, Divisional Director Digital Services Update, Followed by Q&A Dr. Sam Bolton 4.00pm Malachy Smith, Divisional Director WorkSmart Update; Followed by Q&A 4.40pm Break 5.00pm Nigel Hu
Slide 3: Trading Update
Trading Update (1) COMMENTARY REVENUE • Trading Update issued 16/03/2016 £60m – In line with expectations £40m • Highlights £20m – Digital Services: increased drive for digitisation in Central Government; new client wins £0m FY12 FY13 FY14 FY15 – WorkSmart • UK and European Consulting contracts • Sm
Slide 4: People
People COMMENTARY STAFF NUMBERS • 842 Continue to attract and retain high calibre people; 114 people joined in the past 12 months – Northern Ireland 460 (+71 people) – Great Britain 142 (-13 people) – Poland 203 (+55 people) GROWTH OF 16% – Ireland & International 37 (+1 person) – Total 842 (+114 pe
Slide 5: Customers
Customers COMMENTARY REVENUE TYPE • Existing clients driving revenue growth One Off – Repeat / Recurring: 88.7% Completed – New clients: 10.8% New Repeat – Non-recurring: 0.5% Recurring • FY2016 new client acquisition – 62 in total – Consulting: 27 (25 in FY2015) FY11 FY12 FY13 FY14 FY15 FY16 – SaaS
Slide 6: Growth Story
Growth Story (1) Digital Services Evolve WorkSmart • Build deeper relationships • Continue to dominate NHS • Expand into Europe, opening with current customers Acute market a dedicated office • Increase number of large • Extend IP and sell to installed • Extend our Workday services central governmen
Slide 7: Digital Services
kainws’ Digital Services
Slide 8: Digital Services Overview
Digital Services Overview Kainos is a trusted and innovative digital partner for Government, leading the digital transformation of public services 60+ Deliver high quality Proven track Building digital Industry Digital Exceptional people and cost effective record of digital capability within Leader
Slide 9: Digital Services Market Summary
Digital Services Market Summary COMMENTARY COMPETITION • Significant increase in market opportunity Competitors – Estimates indicate spending on digital projects – Specialist: Valtech, BJSS, ThoughtWorks – Large SIs: HP, Atos, Fujitsu rising to £2.5bn by 2020 – Internal IT – limited capacity – Centr
Slide 10: Digital Services DNA
Digital Services DNA Strategy Style Systems Successful delivery of full Impress with on-demand Data-driven business digital services with deep bottom-up software decision-making to client relationships and delivery, complemented provide repeatable, valuable offerings with substantive senior scalable
Slide 11: Client Case Study: DVSA
Client Case Study: DVSA Up to September 2015 April 2016 Distributed Agile Delivery of Initial phase Range of Services Live Enhancements Operations New Functionality Nottingham 49 people MOT-2 Project Summary • 22,700 garages Data Gdansk 10 people • England, Scotland, Wales Service Design Belfast 7 p
Slide 12: WorkSmart
kaines? WorkSmart
Slide 13: Workday Inc.
Workday Inc. COMPANY OVERVIEW GROWTH FOCUS • Leading SaaS Human Capital Management • Focused on displacing ERP legacy vendors (HCM) and Financials platform • Continue sales momentum in HCM • Workday competes against Oracle and SAP • Accelerate into Financials market • Annual growth rate of 48% in FY
Slide 14: Kainos' Workday Journey
Kainos’ Workday Journey 2011 2012 2013 2014 Services Testing Software Workday Partner Partner Partner Customer 19/04/2016 14
Slide 15: Kainos WorkSmart Services - Market Dynamics
Kainos WorkSmart Services - Market Dynamics COMPETITIVE LANDSCAPE UK MARKET • 80% of Workday projects are implemented by Number of Organisations partners Med. Enterprise Large Enterprise • Tightly controlled partner ecosystem 850 – 36 service partners worldwide 500 – Kainos is the only software and
Slide 16: Kainos WorkSmart Services Overview
Kainos WorkSmart Services Overview PERFORMANCE UK MARKET • Leading European boutique Workday partner Med. Enterprise Large Enterprise – 75 certified consultants 1,000 – One of 3 European Medium Enterprise 850 partners 800 • Primary markets are UK and Benelux 600 500 companies with under 20,000 emplo
Slide 17: Kainos Smart is an automated testing product built for Workday
KAINOS SMART IS AN AUTOMATED TESTING PRODUCT BUILT SPECIFICALLY FOR WORKDAY (@) Smart workday. kaines: 19/04/2016 17
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Slide 19: Kainos Smart is an automated testing product built for Workday
KAINOS SMART IS AN AUTOMATED TESTING PRODUCT BUILT SPECIFICALLY FOR WORKDAY Smart wor eka day. kaines: AUTOMATION IS PRE BUILT AND IN SYNC WITH CURRENT VERSION OF WORKDAY 19/04/2016 19
Slide 20: Kainos Smart is an automated testing product built for Workday
KAINOS SMART IS AN AUTOMATED TESTING PRODUCT BUILT SPECIFICALLY FOR WORKDAY Smart workday. kaines: AUTOMATION IS PRE BUILT AND IN SYNC WITH CURRENT VERSION OF WORKDAY SMART IS A CLOUD BASED SOLUTION HOSTED ON AMAZON 19/04/2016 20
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Slide 22: Security Test Run Results Screen
Security Test Run Results Screen 19/04/2016 22
Slide 23: Client Case Study: AstraZeneca
Client Case Study: AstraZeneca COMPANY OVERVIEW TEST EVENT • 57,500 employees • 51,000 security tests • $26 billion annual sales • One button click • 65 different countries • Execution time: 2hours 20mins • Constant change • 500+ man days to execute manually 65 65 Countries 57 Countries 20 Fields Ac
Slide 24: Kainos Smart Customers
Kainos Smart Customers Across financial services, government, education, manufacturing and technology 19/04/2016 24
Slide 25: Kainos Smart - Market Opportunity
Kainos Smart - Market Opportunity 1400 20% Global Workday Customers Smart Market Penetration (%) 1180 1200 15% 1000 860 800 620 10% 600 410 5.1% 400 3.5% 5% 200 1.5% 0.0% 0 0% 2013 2014 2015 2016 • There is no competitor for Kainos Smart • Smart utilises a 3-year subscription model • Addressable mar
Slide 26: Kainos Smart Strategy
Kainos Smart Strategy Attract new Retain existing Increase annual business clients subscription charge • Increased investment • Client focused in Sales & Marketing • Strong emphasis on roadmap customer service • Continued expansion in • Additional modules in USA • Dedicated customer line with Workda
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Slide 28: Evolve Overview
Evolve Overview • Software product business focused on Mobile Enabled Healthcare • 140 people in the Evolve team based in Belfast, London and Gdansk 70 34 20 16 Engineering Service Delivery Support Sales and Marketing 35 customers (30 acute trusts in England), recent contracts: 19/04/2016 28
Slide 29: Healthcare & Technology Requirements
Healthcare & Technology Requirements KEY GLOBAL ISSUES AND TRENDS IN EUROPE • Ageing population and chronic diseases Estimates point to a shortage of one million health professionals in the EU by 2020 … and • Cost and quality of healthcare a shortage of 600,000 workers in nursing and a shortage of 2
Slide 30: Evolve Offerings
Evolve Offerings Offering Evolve EMR Evolve Integrated Care (1) Market License Model Perpetual (2) Subscription Deployment UK NHS: £400m Addressable market UK NHS: £200m Partners (Global): $1bn+ Notes: 1. We see some opportunity to offer Evolve EMR outside the UK NHS 2. Some Evolve EMR modules have
Slide 31: Evolve Integrated Care Platform
Evolve Integrated Care Platform Users Can be users from our customers or our partner’s customers Platform Services Key components include Forms and Workflow to allow clinical process to be changed easily Integration EMR (could be Evolve) to provide patient context and history 19/04/2016 31
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Slide 33: Evolve and Apple
Evolve and Apple Making good applications great • Apple mobility partner in healthcare (one of a very small number globally) • Strong interaction with Apple Healthcare Business Development teams in UK, US, EMEA and with other partners • Regular Apple Executive Briefings and joint prospect meetings 1
Slide 34: Summary
Summary • We have a strong product focused • We are encouraged by the early business in Evolve with a clear vision on successes of the Evolve Integrated Care making healthcare delivery easy through Platform and its ability to underpin a technology. sustainable business with both customers and partne
Slide 35: The leading Telehealth network for specialist care
The leading Telehealth network for specialist care 35
Slide 36: The Healthcare Delivery Bottleneck
The Healthcare Delivery Bottleneck ELECTRONIC HEALTH RECORDS $ HEALTHCARE INFORMATION EXCHANGE $ PERSONALIZED MEDICINE $ REMOTE MONITORING $ BIG DATA $
Slide 37: InTouch at a Glance
InTouch at a Glance Service Locations HS Customers 2000 300 20% 1,500+ 260+ US 250 30% 1500 Hospital Hospital 200 Locations 1000 Customers 150 100 500 50 0 0 2012 2013 2014 2015 2013 2014 2015 Clinical Users Sessions 200,000 4,000+ 5000 500,000+ 65% 30% Specialist Users 4000 Clinical 150,000 3000 En
Slide 38: InTouch Telehealth Network
InTouch Telehealth Network PROVIDER ACCESS PATIENT ACCESS • Simple User Experience • Purpose-built InTouch devices • Windows and iOS Compatible • Consumer devices • Clinical Support Tools • Software solutions SINGLE NETWORK • Easy to Use – physician friendly • High Reliability • Healthcare Compliant
Slide 39: Leading U.S. Health Systems are expanding use of Telemedicine
Leading U.S. Health Systems are expanding use of Telemedicine • From ‘encounter’ to ‘patient management’ • Managing patient populations across time and locations • To drive access, best practice, team coordination, and improved patient engagement CHALLENGE: • Siloed EHR systems • Not interoperable •
Slide 40: Next Generation Telehealth Platform
Next Generation Telehealth Platform CONNECT ANYWHERE: cloud-based and mobile enabled accessible anytime, anywhere WORKFLOW: patient engagement system riding above and across the EMR systems of record INTEGRATED: to create a unified patient-centric view across care systems and organizations AGILE: ne
Slide 41: Closing Remarks, Final Q&A Session
Closing Remarks, Final Q&A Session 19/04/2016 41
Slide 42: Closing Remarks
Closing Remarks • We are pleased to have delivered a • We are excited by the growing strong FY 2016 performance opportunities available to us. as detailed in our Trading Update (issued The opportunities have increased in 16/03/2016). value, more than doubling our original estimates and extending the
Slide 43: Appendix
Appendix IPO Presentation Slides (Summary slides from June 2015 presentation) 19/04/2016 43
Slide 44: Executive Summary
Executive Summary » Overview » Revenue Growth • Kainos is a high growth, high-margin company £60m providing IT services, consulting and software solutions £40m • Digital Services - online platforms for UK Government • Evolve - digitised patient records for NHS £20m • Workday - implementing Workday S
Slide 45: Board and Senior Management
Board and Senior Management » Experienced Executive » Code Compliant Board » Skilled Leadership Team John Lillywhite Divisional Directors Non-Independent Chairman 1997-now: Chairman, Kainos • Russell Sloan (39), Government Digital 2004-10: Chairman, APT Joined as graduate: 1999 Brendan Mooney (48) 2
Slide 46: Corporate history
Corporate history ICL ‘Captive’ Ireland Expansion Targeted Markets 1987 2004 2010 ICL and Queens University create Customer Relationship Enter Healthcare market with first Kainos, investing a total of £50,000 Management system deployment of Evolve at Ipswich NHS Trust 1992 2005 2012 Personnel system
Slide 47: Group Overview
Group Overview Kainos is a high growth, high-margin company providing digital technology solutions and agile software development through three divisions 1 Digital Services 2 Evolve 3 Workday Implementation Building online digital platforms for UK Delivering digitised patient records for Implementin
Slide 48: Growth Story
Growth Story 1 Digital Services 2 Evolve 3 Workday Implementation • Build deeper relationships • Continue to dominate NHS • Expand into Europe, opening with current customers Acute market a dedicated office • Increase number of large • Extend IP and sell to installed • Extend our Workday services ce
Slide 49: Conclusion
Conclusion » Summary » Group Performance £61m • Kainos is a high growth, high-margin company FY15 Revenue • Strong, organic, revenue growth with good visibility £73m Contracted Backlog 20% • High levels of repeating and recurring revenue • Increasing diversification in revenue mix FY15 EBITDA and PB
Slide 50: Appendix
Appendix Interim Presentation Slides (Summary slides from November 2015 presentation) 19/04/2016 50
Slide 51: Financial Overview
Financial Overview revenue commentary • In line H1 2016 revenue and profit £37.2m growth of 29% • In line with FY 2016 market expectations • Adjusted diluted EPS: 4.8p per share (1) • EPS H1 2015, 4.1p per share • Dividend declared: 1.8p per share (1) • Payment date: 8th January 2016 Profit • Strong
Slide 52: Operational Overview
Operational Overview (1) sales bookings commentary £34.8m growth of 55% • Added 30 new customers in H1 2016 • Including Office for National Statistics, Queen Victoria Hospital NHS Foundation Trust and New York Public Library • Established offices in Boston and Amsterdam (1) backlog • Local sales ope
Slide 53: Summary
Summary commentary H1 performance • Excellent growth across all operating parameters, delivering in-line H1 2016 trading performance £37.2m revenue growth of 29% • Increasing demand from existing customers, augmented by new customer acquisition £6.8m profit(1) growth of 20% • Underlying market condi
Slide 54: Legal and Confidentiality Statement
Legal and Confidentiality Statement This document contains statements about Kainos Group plc that are or may be forward-looking statements. Forward-looking statements include statements relating to (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebt
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