Slide 1: Digital Compliance Transformation
SKILLCAST GROUP PLC Digital Compliance Transformation 2022 RESULTS INVESTOR PRESENTATION April 2023
Slide 2: Legal Notice
Legal Notice This document, which comprises an investor presentation (this "Investor Presentation"), has been prepared by, and is the sole responsibility of, Skillcast Group plc (the "Company") and is solely for use at a presentation (the "Presentation") to inform the investment community regarding
Slide 3: Presentation Team
Presentation Team Vivek Dodd Richard Steele CEO CFO • Co-founded Skillcast in 2001 • Joined Skillcast as CFO in May 2022 • Ex-investment banker (JP Morgan) • 30 years commercial finance • MS (MIT), BTech (IIT Delhi), former background CFA Charterholder • Previously CFO Mind Gym Plc vdodd@skillcast.c
Slide 4: 2022 Highlights
2022 Highlights Delivered against expectations and plans in the first full year as a plc Subscription revenues continued to grow Significant progress on investment strategy CFO and CPO appointed 4
Slide 5: 2022 Operational Highlights
2022 Operational Highlights Significant progress in headcount growth to support growth strategy: ▪ +26% in the year to 111 (2021: 88) ▪ Investment in product development, commercial and organisational structure to support ambitious growth Maintained excellent customer service records while achieving
Slide 6: Our strategy
Our strategy Focus on organic growth ▪ Resilient and growing market New clients ▪ Focus on mid size regulated market ▪ Core plan Existing clients ▪ Minimise churn through excellent customer service ▪ Maximise upsells with new products New products ▪ Global content libraries ▪ “RegTech” ▪ AI Inside 6
Slide 7: Revenue Streams
Revenue Streams Subscriptions (Recurring) Professional Services (Non-Recurring) 2022 saw 28% revenue growth to £6.7m driven by: 2022 saw revenues of £3.1m in line with prior year: • New clients buying our e-learning libraries and hosting platform • Our strategy is to maintain absolute revenues to ou
Slide 8: Financials – Income statement summary
Financials – Income statement summary Income Statement (£’000) 2021 Growth rate 2022 Growth rate YEARS ENDED 31.12 6.8 Subscriptions 5,227 28% 6,690 28% Annualised Recurring Revenue (£m) 6.3 Professional Services 3,181 -1% 3,140 -1% 5.8 Total Revenue 8,408 15% 9,830 17% 5.0 Gross Profit 5,931 6,888
Slide 9: Cash flow statement
Cash flow statement Cash flow statement (£’000) YEARS ENDED 31.12 2021 2022 PBT 61 (556) Strong Track Record of Cash Generation Depreciation/amortisation 282 237 Share Option Reserve 17 207 Free cash flow of +£0.3m despite LBT of -£0.6m Finance income 0 (16) Share-based payments charge increase due
Slide 10: Financials – Balance sheet summary
Financials – Balance sheet summary Statement of Financial Position (£’000) 31.12.21 31.12.22 Non-current assets related to office F&F, IT equipment and the right of use assets of the 2 office leases. All Non-current assets 864 882 product and tech development is expensed. Current assets Receivables
Slide 11: Current Trading & Outlook
Current Trading & Outlook Starting to see the fruits of our post-IPO investments Continued subscription growth in Q1: ARR up +22% YOY, helped by higher average contract values from customers Strong sales pipeline Product development: Global Risk and Compliance Libraries launched, with Compliance Bit
Slide 12: Summary
Resilient demand, Recurring revenues, Strong cash flows Summary Subscription growth in 2022 Growth 17% Revenue growth 28% Subscription growth Diverse team 16% ARR growth 70% Gross margin Breadth and depth of offering Non-discretionary demand Market £3.8bn UK Online Training(1) Corporate compliance m
Slide 13: Thank you
Thank you 80 Leadenhall St London EC3A 3DH skillcast.com 13
Slide 14: About Skillcast
About Skillcast Skillcast enables businesses to build ethical and resilient workplaces. Our vision is to be the leading provider of digital training and technology for staff compliance. Skillcast Group is headquartered in the City of London, with an operations hub on the island of Malta. We develop
Slide 15: What we do
What we do Skillcast provides time-saving and cost-effective “SaaS” (Software as a Service) solutions, including: 100+ off-the-shelf (OTS) e-learning courses that cover topics including Anti Money Laundering (AML), Bribery and Corruption, Diversity, Equality and Inclusion (DEI), Environmental, Socia
Slide 16: Our Customers
Our Customers Over 1,000 companies use Skillcast’s SaaS (Software as a Service) products consultancy services to support over 1 million employees to meet their compliance requirements. Originally targeting the financial services industry, 45% of revenues now come from other sectors, including retail
Slide 17: Board of Directors
Board of Directors Richard Amos Vivek Dodd Catriona Razic Richard Steele Non-exec Chairman CEO CRO CFO Anthony Miller Sally Tilleray Isabel Napper CTO NED & Audit Chair SID & Remuneration Chair 17
Slide 18: The Investment Case
The Investment Case Corporate compliance is a That is large and growing Skillcast is well positioned to thrive in resilient market … fast … 01 Corporate spending on $744m growing at 15-20% Breadth and depth of Market position - regulatory compliance is largely non- product to help companies train de