Slide 1: Interim Results: Six months ended 30 September 2015
Interim Results Six months ended 30 September 2015 23rd November 2015
Slide 2: 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 3: 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 4: 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 5: 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 6: People
People people commentary • Continue to attract and retain high calibre 788 growth of 22% people • • • Northern Ireland Great Britain Poland 435 147 174 (+55 people) (+46 people) (+45 people) • Ireland & RoW 32 (-6 people) • Total 788 (+140 people) • H1 2016 recruitment also replacing contract staff;
Slide 7: Divisional Performance
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Slide 8: Digital Services: Performance
Digital Services: Performance revenue commentary • £24.4m Increasing demand across existing customers; new customers added • Growth excluding re-profiled project: 48% growth of 18% • Gross profit £11.1m (£11.4m H1 2015) • Utilisation impact following early re- profiling of one project • Use of contr
Slide 9: Digital Services: Market
Digital Services: Market sales bookings commentary • Sales bookings £24.2m growth of 40% • • • Existing customers: New customers: £22.4m £1.8m Client concentration rebalanced • Top 5 clients account for 56% (67% H1 2015) • Continued growth in central government; regional government beginning journey
Slide 10: Digital Services: Progress on Growth Plan
Digital Services: Progress on Growth Plan 1 Digital Services Progress • Build deeper relationships • 100% retention of all • £22.4m of contracts signed with current customers government clients. with existing clients. • Increase number of large • Added new government • Office for National Statistics
Slide 11: MOT-2 Project Summary
MOT-2 Project Summary. 22,700 garages in England, Scotland, Wales. 60,000 users of the new system. 31m annual MOT tests conducted annually. James Munson, Director of Digital Services and Technology, DVSA. “We were able to switch off MOT-1 on plan. We’ve also got funding agreed to improve MOT-2 from
Slide 12: Evolve: Performance
Evolve: Performance (1) revenue commentary • Good progress on revenue and £5.8m growth of 115% margins • Performance underpinned by consortium deal (3 Trusts) • East Sussex, West Sussex, Queen Victoria Hospital • Evolve continues to extend leadership gross margin position • Evolve has now been selec
Slide 13: Evolve: Market
Evolve: Market sales bookings (1) commentary • Strong H1 sales bookings £7.3m • Timing of Sussex consortium deal unusual, most NHS deals signed in H2 growth of 280% • South East Coast Ambulance Trust • Evolve now in live operation • Successful break-out from Acute market (1) • NHS market remains cha
Slide 14: Evolve: Progress on Growth Plan
Evolve: Progress on Growth Plan 2 Focus Progress • Continue to dominate NHS • Kainos selected by East Queen Victoria Hospital in first Acute market Sussex, West Sussex and contract award of FY 2016. • Extend IP and sell to installed Evolve SaaS Apple base, with particular focus on • SaaS version of
Slide 15: Workday Implementation Services: Performance
Workday Implementation Services: Performance revenue commentary • £4.1m Implementation revenues reduced in H1 • Slippage on key implementation deal (€2.8m) now in signing process • Used sub-contract market to minimise no change margin impact of deal slippage • Margins impacted by lower utilisation •
Slide 16: Workday Implementation Services: Market
Workday Implementation Services: Market sales bookings commentary • Workday, Inc. continues strong growth £3.6m growth of 3% • • Q3 2016 (Aug-Oct) registered 41% YoY growth H1 sales bookings impacted by slippage on two key deals • Smart Automated Testing Platform progress • 42 customers now signed u
Slide 17: Workday Implementation: Progress on Growth Plan
Workday Implementation: Progress on Growth Plan 3 Focus Progress • Expand into Europe, opening • Project in Slovakia underway • Initial staff recruited a dedicated office and on schedule • Sales activity underway • Amsterdam office opened • Extend our Workday services • Selected as one of two LDP •
Slide 18: Financial Performance
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Slide 19: Financials: Income Statement
Financials Income Statement » Income Statement » Commentary FY 2015 H1 2015 H1 2016 Change • Revenue: • Top 10 customers: 51% (66% H1 2015) Digital Services 43.6 20.7 24.4 18% • Services growth: 17% Evolve 9.0 4.1 8.8 117% • Licence growth (Evolve and Smart): 195% Workday Implementation 8.2 4.1 4.1
Slide 20: Financials: Balance Sheet and Cash Flow
Financials Balance sheet and Cash flow » Balance Sheet » Commentary As at 31 March (£m) H1 14/15 H1 15/16 • Limited fixed assets: IT, office equipment Fixed assets 1.5 2.0 • Underlying trade debtors/WIP total 75 Debtors and WIP 18.4 20.9 days Cash 11.9 9.7 • Working capital requirements similar by T
Slide 21: Summary
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Slide 22: 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 23: 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