Kainos Group Plc · LSE:KNOS
Kainos — FY2024 Earnings Presentation
28 slides from Kainos's earnings presentation, May 20, 2024
Slide 1: Full Year Results
Full Year Results 12 months ended 31 March 2024 Russell Sloan (CEO) Richard McCann (CFO) 20 May 2024
Slide 2: Safe harbour statement
Safe harbour 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, indebtedness, finan
Slide 3: Contents
Contents 1. Business Overview 2. Divisional Performance 3. Financial Performance 4. Looking Ahead For more information visit kainos.com/investor-relations 3
Slide 4: Business Overview
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Slide 5: Business Overview
Business Overview We have an excellent position in long-term, high-growth markets MARKET CAGR MARKET CAGR MARKET CAGR £3.1b 15% £1.1b 32% £1.1b 32% £123m £162m £200m £224m £213m £37m £49m £71m £106m £112m £19m £24m £32m £45m £57m FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23
Slide 6: Expertise at a Global Scale
Expertise at a Global Scale Tai) Ge VHS Re Le © come CWE stripe Rated, «= KION- senomiss = PIOXT — O)Eikzx,, —Bootingcom comeast Heese encom Penn | aggreko (SB, YESH © slobalpeyments Magellan: Re sitrburas pl nasdaq ee gency kaines®
Slide 7: FY24 Highlights
FY24 Highlights Disciplined execution delivering Workday Products revenue and profit growth while +28% FY24: £57m FY23: £45m investing in the future • Excellent performance in • Strong international Revenue(1) Workday Products as we growth Digital advance to our 2026 • Long-term underlying Workday +
Slide 8: Our Customers
Our Customers Delivering value to our clients drives long-term relationships New Client Rev enue Healt hcare Sect or Rev enue Cent ral Europe(1) Rev enue Ex ist ing Client Rev enue Public Sect or Rev enue Nort h America Rev enue £37m £37m Commercial Sect or Rev enue £44m £50m £43m £35m £37m £68m £35
Slide 9: Our People
Our People We are building an exceptionally talented and engaged workforce Promoting Diversity Wellbeing: Parkrun challenge Volunteering days People 23 Global Locations Engagement 2,995 93% Employee Retention 78% Peakon Employee engagement score FY20 1,715 UK & Ireland 2,043 -4% FY21 FY22 2,024 2,69
Slide 10: Our Responsibilities
Our Responsibilities Being responsible towards our people, customers, communities and planet … Our BelTech EDU conference 250+ attended CodeCamp Climate Action Gender Equality Quality Education Reducing our Promoting gender equity, Increasing employment potential climate impact equality and gender r
Slide 11: Divisional Performance
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Slide 12: Digital Services
Digital Services Solid performance in Revenue(1) Backlog Bookings public sector offset by -5% -4% +11% weakness in health and FY24: £213m FY24: £228m FY24: £157m commercial sectors FY23: £224m FY23: £238m FY23: £141m Revenue trend H1/H2 FY20 £62m £61m £122m Public sector / +1% to £138m Strong custom
Slide 13: Healthcare Revenues
Healthcare Revenues Strong growth in core healthcare revenues Cov id-19 Related Rev enues obscured by pandemic Core Healthcare Rev enues spending spike £14m As reported, FY24 healthcare rev enues reduced by £34m 11% from FY23, but core healthcare(1) revenues £18m increased by 23% From FY20 (pre-pand
Slide 14: Digital Health and Care Wales (DHCW)
Digital Health and Care Wales (DHCW) “Kainos was both creative and efficient in its approach to delivering the NHS Wales App. Their deep knowledge of the NHS and healthcare technology streamlined the entire process.” Matt Cornish| Programme Director, Digital Services for Patients The NHS Wales App i
Slide 15: We are making AI real
We are making AI real We are inspiring, guiding and enabling responsible AI adoption and data transformation through technical excellence to help solve real world problems How we help our customers on their AI journey Our leadership credentials in AI 1. AI powered Digital 2. AI solutions to address
Slide 16: Workday Services
Workday Services Continued growth after Revenue(1) Backlog Bookings an exceptional FY23 +6% -4% +0% performance FY24: £112m FY24: £117m FY24: £73m FY23: £106m FY23: £122m FY23: £73m Revenue growth continues / +6% to £112m Revenue trend H1 / H2 Consolidation after 49% expansion in FY23 and FY20 £17m
Slide 17: Workday Financials Deployment
Workday Financials Deployment “The best aspect about Kainos consultants is that they always think about what is best for the customer – everyone was on the same boat rowing in the same direction.” Pasi Vilhunen | Chief Financial Officer at Bravedo Based in Finland, Bravedo is a group of over 35 busi
Slide 18: Workday Products
Workday Products Significant progress towards £100m ARR target driven by Revenue(1) ARR Backlog Smart portfolio sales; successful +28% +26% +17% EDM product launch FY24: £57m FY23: £45m FY24: £61m FY23: £48m FY24: £128m FY23: £109m Employee Document Management (EDM) success Built on Workday Extend,
Slide 19: EDM - Document Retention
EDM - Document Retention High levels of variance in global compliance rules for document retention Purge all documents six years from termination Except: 1. Accidents, purge fifty years from creation Purge all documents ten years from termination Except: 1. Accidents, purge four years from Simple re
Slide 20: Employee Document Management (EDM)
Employee Document Management (EDM) “Kainos EDM is supporting our organization to scale globally. Having all HR documents in Workday helps to streamline processes, enhance compliance and provide a better user experience for our people.” Rachel Geier | Director of HR Product Management at JLL JLL is a
Slide 21: Financial Performance
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Slide 22: Group Income Statement
Group Income Statement Digital Services: Income Statement • Public and commercial revenue impacted by market conditions • Public +1%, Commercial -19%, £m FY24 FY23 Change • Healthcare -11% as a result of Covid expenditure reductions • Gross margin increased slightly to 38.4% (FY 23: 38.1%) Revenue 3
Slide 23: Balance Sheet and Cashflow
Balance Sheet and Cashflow Balance Sheet: Balance Sheet Fixed assets and investments As at 31 Mar (£m) FY 24 FY 23 Fixed assets and inv estments 25.0 17.3 • IT, office equipment, investments etc. £9.5m (FY 23: £7.7m) Goodwill and Intangible assets 43.4 22.8 • IFRS16 leases capitalised £5.2m (FY23: £
Slide 24: Looking Ahead
Looking Ahead
Slide 25: Outlook
Outlook We have strong positions in long-term growth, resilient, international markets Digital Services Workday Services Workday Products UK leader in delivering Continue to expand in £100m of annual recurring digital transformation high growth market revenue by 2026 25
Slide 26: Appendix: Definition of terms
Appendix: Definition of terms
Slide 27: Definition of terms
Definition of terms Active customer: a customer who has paid us to deliver a product or service Contracted backlog: the value of contracted revenue that has yet to be within the current financial year. recognised. Adjusted EBITDA: calculated as being adjusted pre-tax profit excluding interest, Compo
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