Slide 1: Results Presentation for the year ended July 2023
Results Presentation for the year ended July 2023 Mark Furness Chief Executive Officer & Founder Sarah Harvey Chief Financial Officer
Slide 2: Our business
Our business Our software and technology provides the foundation from which Helping our customers deliver digitally large landlords and flex workspace providers can deliver seamless, connected, in-building and cross-portfolio digital experiences. enabled buildings and spaces since 2006 Our mission c
Slide 3: Strategic progress
Strategic progress Headwinds • Macro-economic uncertainty • Capital Accelerated path Strategic Improving Delivered major Market evolution constraints to profitability customer focus product upgrades continues as across sector • Customer mix and cash delivering results following hybrid embeds generat
Slide 4: Market opportunity continues to evolve
Market opportunity continues to evolve 4
Slide 5: Flight to quality accelerating: Office market bifurcating
Flight to quality accelerating : Office market bifurcating Highly amenitised buildings outperform Highly amenitised buildings Higher quality Vacancies Average rent for highly amenitised Submarket product lower building set vs. submarkets Gap (%) outperforms market Rents higher $90 22% 24% $80 22% $7
Slide 6: Landlords increasingly motivated to meet occupier demand
Landlords increasingly motivated to meet occupier demand Economic drivers becoming clear OVER 50% OF OCCUPIERS WANT LANDLORDS TO BUNDLE ACCESS TO SHARED BUILDING SERVICES, AMENITIES AND/OR FLEX SPACES INTO LEASE CBRE spring 2023 U.S. Office occupier sentiment survey Shared meeting Building amenity F
Slide 7: Delivering this is challenging
Delivering this is challenging Physical experience Managing this can be inefficient and costly Shared meeting spaces Space Occupier Tenant Digital Room Room Charges management management app services access booking and billing Building amenity spaces IT Property Flexible space options Operations Tea
Slide 8: Improving the occupier experience
Improving the occupier experience Shared meeting spaces Building amenity spaces Smart access Physical experience Manage Smarter Manage Dynamic Flexible space options occupiers, connectivity complex access spaces & for smarter licensing, control services buildings contracts & designed for across whol
Slide 9: Long-term structural market drivers
Long-term structural Cushman and Wakefield estimates that nearly 60% of US office inventory needs upgrading to meet occupier demands1 market drivers Total office inventory by tier Increasing risk of competitive obsolescence and financial 6,000 15% underperformance for commodity, Top - a fraction of
Slide 10: Financial review
Financial . | essensYs
Slide 11: Financial highlights FY23
Financial highlights FY23 £25.3m Total revenue +9% £20.0m ARR -9% £20.9m £4.4m £7.9m £1.1m Recurring Non-recurring Cash balance Contracted ARR1 revenue +3% revenue +38% £15.8m +20% £8.7m -11% £0.8m +207% North America UK & Europe APAC 1New ARR contracted not live at 31 July 2023 Tishman Speyer - The
Slide 12: Income statement
Income statement YEAR ENDED 31 JULY (£Õ000) 2022 2023 REVENUE Recurring 20,140 20,913 Non-recurring 3,158 4,341 TOTAL REVENUE 23,298 25,254 of which: North America 13,233 15,747 North America driving growth UK & Europe 9,797 8,673 Good progress in APAC APAC 268 834 UK decline offsets Europe growth C
Slide 13: ARR bridge July 2022 to July 2023 (£m)
ARR bridge July 2022 to July 2023 (£m) 88% strategic 3.7 57% strategic 24.0 12% non-strategic 43% non-strategic 23.0 21.9 22.0 21.1 21.0 (0.8) (3.5) (0.3) 20.0 20.0 (0.8) (0.2) 19.0 18.0 17.0 16.0 15.0 R r e en t te 2 3 R ge rr tan e ag l2 l2 AR AR ra th an cy us Ju Ju pe cu ns O w st ch Ne co Lo O
Slide 14: Adjusted EBITDA bridge FY22 to FY23 (£m)
Adjusted EBITDA bridge FY22 to FY23 (£m) - Increase Decrease Total -1.0 Increase Decrease Total -2.0 -3.0 -4.0 -5.0 -6.0 0.8 0.8 1.0 1.0 -6.3 -7.0 -0.6 -7.0 -6.3 -0.6 -0.5 -7.0 -0.5 -8.0 EBITDA FY22 Gross profit Bad debt Staff costs Other overheads EBITDA FY23 £0.85m underlying reduction; £0.15m fx
Slide 15: Cashflow statement
Cashflow statement YEAR ENDED 31 JULY (£Õ000) 2022 2023 Adjusted EBITDA (7,043) (6,259) Add: exceptional costs - (2,610) Changes in working capital 168 (953) Lower capitalisation of Other 86 77 software development due to Cash from Operations (6,789) (9,745) platform migration and Tax & foreign exch
Slide 16: Cashflows FY23 (£m)
16 0 5 10 15 20 25 30 O pe n in g ca sh 24.1 EB IT DA -6.3 Re s tru c tu rin St ra g te co st gi c s -1.6 in ve n to ry pa ym O en th t e -1.8 rn et Cashflows FY23 (£m) wo rk in g ca Ca pi ta pi ta l -0.1 lis ed de ve l op m en t -3.8 Ca pi ta le xp en di tu re -0.6 Le a se pa ym en ts -1.8 FX tra n
Slide 17: Cash burn by quarter FY23 (£m)
Cash burn by quarter FY23 (£m) Strategic inventory payments £1.8m Data centre payments £0.6m 30 25 24.1 Restructuring payments £1m 20 Restructuring payments £0.6m 15 -7.4 -4.1 10 7.9 -3.2 -1.5 5 0 Opening cash Q1 Q2 Q3 Q4 Closing cash 17
Slide 18: Balance sheet
Balance sheet AS AT 31 JULY (£Õ000) 2022 2023 Non-current assets 14,223 12,776 Intangible 8,922 10,059 Higher depreciation following Tangible 2,819 1,577 FY22 investment; impairment Right of use 2,482 1,140 in APAC; lower remaining lease Current assets 33,102 14,888 terms Inventories 2,546 2,260 Tra
Slide 19: Operational review
Operational view essensYs
Slide 20: Operational highlights FY23
Operational highlights FY23 466 sites 23 new customers 16 Strategic 102 152 98% 2.1 : 1 Customers People Net revenue LTV:CAC +2 -16% Retention -3ppt 308 +8 147 -9 11 +9 UK & Europe APAC North America 1 Additional 30 headcount reduction following year end Landmark - Lighthouse in Kings Cross, UK 20
Slide 21: Improving quality customer base
Improving quality customer base Strategic customers replacing small operators Customer movement FY23 110 4 15 100 4 102 + 16 new strategic all small non-strategic 100 customers customers; -8 90 represents 24 sites -13 + 7 non-strategic 80 70 60 New strategic customers by Reasons for customer churn 5
Slide 22: Return to growth: Site bridge FY23
Return to growth Site bridge FY23 Strategic customer sites replacing small operators 42 -34 500 458 14 -23 9 466 450 Gross site closures 400 Insolvency 350 10 300 Strategic customer sites 250 Non-strategic customer 22 ica ica EA EA AC 23 29 EM EM er er AP y an sites ul Am Am J K/ K/ J ew at at U U 1
Slide 23: Strategic customers
Strategic customers Foundation for success % of total strategic revenue Opportunity pipeline is strong & strategic of total APAC 3% growing customers lost revenue UK & • 68% from new Europe logos 28% Net Revenue of new sites with • 32% from existing Retention strategic customers North customers Amer
Slide 24: Our products - a milestone year
Our products - a milestone year 24
Slide 25: 2023 Multi-product solution
2023 Multi-product solution Manage occupiers, spaces & Manage complex licensing, services across whole portfolios contracts & invoicing Smart access Smarter connectivity for Access control & bookings smarter buildings designed for the future of hybrid real estate 25
Slide 26: Meeting the needs of strategic customers
Meeting the needs of strategic customers 1 Smart access (pilot customer) ÒWeÕve achieved a rental premium of up to 2.5x on our flex product.Ó ÒA big piece of the puzzle is allowing our different customers to use more spaces, more locationsÉ We can create a network effect.Ó Annie Rinker - Hines 1 In
Slide 27: Major product milestones achieved
Major product milestones achieved Smart access Final customer migrations • Hardware certified | FCC & CE • Standalone product 2-way integration with in progress October 2023 • essensys LENS essensy platform • Mobile wallet certified (SW & HW) October 2023 software integrated software & hardware netw
Slide 28: Summary and outlook
Ulanlantclavaciale tlook essensYs
Slide 29: Summary and outlook
Summary and outlook • Absolute focus • Profitability • Multi-product line-up • Evolution continues • Customers • Strong SaaS metrics • Cash • Smart access certified • Structural • Product • Land - Expand - Grow • Growth • Long-term investment • Long-term • Market 29
Slide 30: Thank you
Thank you Nominated advisor & broker: Singer Capital Markets +44 (0)20 7496 3000 Financial public relations: FTI consulting +44 (0)20 3727 1000 essensys.tech
Slide 31: Important notice
Important notice This presentation (this ÒPresentationÓ), which has been prepared by, and is the sole responsibility of, essensys plc (the ÒCompanyÓ), has been prepared solely in connection with the CompanyÕs preliminary financial results for the 12 month period ended 31 July 2023. This Presentation