Beeks Financial Cloud Group Plc · LSE:BKS
Beeks Financial Cloud — FY2019 Earnings Presentation
23 slides from Beeks Financial Cloud's earnings presentation, 2019
Slide 1: Final Results 2019
Final Results 2019 Gordon McArthur, CEO & Fraser McDonald, CFO
Slide 2: Beeks Financial Cloud
Beeks Financial Cloud Global IaaS partner for low latency financial markets Established in 2011, Beeks has grown from a single site in New Jersey to having a presence in 11 international data centres Offering both low latency connectivity within the data centres to various venues, and a point to poi
Slide 3: Delivering on the growth strategy since IPO
Delivering on the growth strategy since IPO * Underlying EBITDA is defined as earnings before amortisation, depreciation, finance costs, taxation, acquisition costs, share based payments and exceptional non-recurring cost 3
Slide 4: Beeks Private Cloud & Hybrid Cloud Management
Beeks Private Cloud & Hybrid Cloud Management Cross Connect, Lowest Latency, Most Bandwidth, Consumption Based on Demand Services 4
Slide 5: Our Global Network
Our Global Network W A ni Beeks 222" WD @CME Zexcm WoANDA [A Beker beeksfinancialcloud.com EQUINIX
Slide 6: Highlights FY 2019
Highlights FY 2019 Momentum in H2 delivers strong financial performance for the financial year Signing of three Tier 1 clients and continued growth of all customer segments Continued expansion of new asset classes Geographical expansion First acquisition since Admission 6
Slide 7: Financial Results
Financial Results • Revenues +32% £7.35m (2018: £5.58m) The benefits of our IaaS • Annualised Committed Monthly Recurring Revenue (ACMRR) +32% £9.1m (2018: £6.9m) model: • Gross profit +22% £3.65m (2018: £2.98m) • 99% of clients pay monthly • Average monthly entry now • Gross profit margin 50% (2018
Slide 8: Acquisition of CNS
Acquisition of CNS • 1,000 retail traders across multiple geographies Additional customers and • Low latency algorithmic trading systems, virtual private networks and streaming media data centre locations to our retail offering • Datacentres in London, New York and Los Angeles Expected to deliver co
Slide 9: Income Statement
Income Statement * Underlying EBITDA is defined as earnings before amortisation, depreciation, finance costs, taxation, acquisition costs, share based payments and exceptional non-recurring costs ** Underlying profit before tax and underlying EPS excludes amortisation on acquired intangibles, acquis
Slide 10: Capacity
Capacity • Total unused capacity of 9.5 racks across locations • Potential to support up to c.£3.0m of additional annualised revenue from 9 of these racks, depending on location/mix, from current cost base 10
Slide 11: Balance Sheet
Balance Sheet BALANCE SHEET (£000) 2017 2018 2019 MNetAssets MM Debt Mi Fixed Assets Beeks £2" a @CME Qexcm beeksfinancialcloud.com 30JUN17 30JUN18.——-30.JUN19 (£000) (1000) (000) BALANCE SHEET Assets Tangible fixed assets 1,302 2,137 2,440 Goodwill / Intangible assets 574 852 2,229 Deferred tax ass
Slide 12: Cash Flow
Cash Flow CASH FLOWS FROM OPERATING ACTIVITIES 2017 2018 2019 (€:000) (e000) ——_(¢'000) Operating cash flows before working capital (including tax paid) (253) 1,486 2,310 Net receivables/payables/other 872 (1,038) (211) Net cash from operating activities 619 448 2,099 Purchase of PPE (net) (818) (1,
Slide 13: Advantages of IaaS model
Advantages of IaaS model CAPEX to OPEX Based Model Accelerate New Product Development & Innovation Fit for Purpose Proof Of Concept Environments Generate New Sources of Revenue Test New Markets and Geographies Decrease Time to Market 13 13
Slide 14: Growing Market Opportunity
Growing Market Opportunity 14
Slide 15: Capturing the Tier 1 Market
Capturing the Tier 1 Market Tier 1 A solid & secure platform Scalability & Financially stable provider needs Flexibility IMPACT • Larger deal sizes • Longer ✓ Extensive network ✓ Unique portal ✓ PLC Status ✓ High levels of ✓ Entrepreneurial commitments security approach • Higher quality ✓ Experience
Slide 16: Strategic Priorities
Strategic Priorities Ongoing investment Service expansion Customer growth ISO Accreditation Back up as a Service Further Tier 1s SOX Process start Further new geographies Continued mid-tier growth Network automation Network automation Maintain retail customers Alert to acquisitions 16
Slide 17: Summary and Outlook
Summary and Outlook • Capitalising on the growth in demand for Infrastructure as a Service offerings within financial markets “We are confident the • Expanding addressable market, with increased institutional quality of our service customer opportunities will see our client list continue to grow in
Slide 18: Appendix
Appendix = Beeks f:2" . ff - @ Zrxcm i) OANDA FOREX com — _ ll @CME 2 . pone
Slide 19: Revenue analysis
Revenue analysis REVENUE BY CUSTOMER TYPE (¢,000) REVENUE BY GEOGRAPHY (¢,000) 8,000 8,000 7,000 7,000 6,000 6,000 5,000 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 0 i) |______I 2017 2018 2019 2017 2018 2019 MEINSTITUTIONAL = RETAIL MEUNITED KINGDOM EUROPE IM REST OF THE WORLD ig fier et
Slide 20: Self Service Portal
Self Service Portal Industry leading, self-service platform View our capacity of Dedicated Servers in each of our locations globally Client simply selects the preferred server package, add any connectivity or customisations and then submit their order to be built Standard Dedicated Server builds can
Slide 21: Example customer journey
Example customer journey Fintech application vendor • Started with first customer • Every client the customer wins means Beeks sales • As the fintech scales it provides significant revenue opportunity for Beeks 21
Slide 22: Board
Board Gordon McArthur Fraser McDonald Mark Cubitt Christopher Livesey Will Meldrum CEO CFO Chairman Independent NED Independent NED • Founder & CEO since 2011 • At Beeks since 2016 • 21 years’ of PLC experience • 25 years’ experience in the software • Currently SVP and Chief of Staff at • 20 years’
Slide 23: Disclaimer
Disclaimer The information contained in this document (the Presentation) has been prepared by Beeks Financial Cloud Group plc (the Company). This Presentation has not been approved by an authorised person in accordance with section 21 of the Financial Services and Markets Act 2000 and therefore it i
Beeks Financial Cloud Group — FY2019 Earnings Presentation on 6ix