FINEOS Corporation Holdings Plc · ASX:FCL
FINEOS — FY2021 Earnings Presentation
28 slides from FINEOS's earnings presentation, Aug 26, 2021
Slide 1: FY21 Results Investor Presentation
For personal use only Financial year ending 30 June 2021 (FY21) Results Investor Presentation Michael Kelly CEO & Tom Wall CFO 26th August 2021 © FINEOS Corporation Ltd 1
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by FINEOS Corporation Holdings PLC (Company or FINEOS). By accessing or attending this presentation, you acknowledge that you have read and understood the following statements. NO OFFER OF SECURITIES Nothing in this presentation sh
Slide 3: FY21 Financial Highlights
FY21 Financial Highlights For personal use only Total Subscription1 Services Revenue of revenue Revenue €108.3m €40.1m €66.4m 23.3% growth 48.6% growth 13.9% growth on FY20 on FY20 on FY20 Gross Profit Pro-forma ARR €72.0m EBITDA €45.7m GP Margin 66.5% €7.9m at 30 June ’21 23.0% growth on FY20 Vs €1
Slide 4: FY21 Operating Highlights
FY21 Operating Highlights For personal use only North America FINEOS New Business 60+ CARRIERS revenue increases to 73% of total revenue up from 59% in FY20 & Underwriting solution launched Market Leader in Life, Accident North America focused FINEOS AdminSuite now covering & Health core systems gro
Slide 5: FY21 Proforma Financial Performance
FY21 Proforma Financial Performance For personal use only % All figures €m FY21 FY20 Variance Revenue 108.3 87.7 23.3% Software1 41.9 29.5 42.0% Services 66.4 58.3 13.9% Cost of Sales (36.3) (29.3) 23.9% Gross Profit 72.0 58.5 23.0% Gross Profit Margin 66.5% 66.6% -0.2% Total Operating Expenses (64.
Slide 6: FY21 Revenue Highlights
FY21 Revenue Highlights For personal use only Total revenue of €108.3m, an increase of 23.3% on FY20 ARR1: €45.7 million 120 Total Revenue €m €108.3 €5.2 100 • Total revenue growth driven by cross- €87.8 selling and up-selling to existing client base, revenue contribution of €9.2m 80 from Limelight
Slide 7: North American Region performance; Cloud adoption supporting strong subscription growth rates
North American Region performance; Cloud adoption supporting strong subscription growth rates For personal use only • Since listing on the ASX in August 2019 the proportion of revenue coming from North America has grown significantly to now represent 73% of total revenue • Growth driven by new clien
Slide 8: FY21 revenue by region
FY21 revenue by region Geographic mix of revenue For personal use only 5% 22% EMEA • North America focused strategy working with revenue APAC from the region growing to 73% of total revenue in FY21 North America versus 59% in FY20. 73% • Strong growth in NA region driven by new client wins, cloud up
Slide 9: R&D Investment
R&D Investment For personal use only FINEOS continues to dedicate significant resources and financial Investment being made in R&D to investment to develop its software through research and development continue to drive revenue growth €45.0 R&D1 investment €m €41.3 €40.0 ▪ 38.1% of revenue invested
Slide 10: Our Clients
Our Clients For personal use only Client revenue concentration decreasing over time as client base of leading insurance carriers expands Length of % of FY20 % of FY21 2% 3% Client No. of years relationship revenue revenue 3% 13% Client 1 3 years 14% 13% Client 2 11 years 14% 12% 4% Client 3 3 years
Slide 11: Our People
Our People For personal use only Employees by function 3% 5% Product Consulting • Average utilisation for the period was 88%, down on prior year 88% 39% Cloud Ops Utilisation1 average of 91%. Current average is R&D 45% in line with more normalised levels Sales & Marketing 8% General & Admin • Slight
Slide 12: Our People and Social Mission
Our People and Social Mission For personal use only • Our People principal objective is to "Drive Organisational Health to create a great place to work and a competitive advantage". Updated DEI Policy launching: • Updated DEI Policy and global program; “Embrace” launched in 2021. • FINEOS is also co
Slide 13: Financial Performance
For personal use only Financial Performance © FINEOS Corporation Ltd 13
Slide 14: Proforma Income Statement
Proforma Income Statement For personal use only €m 30 June 21 30 June 20 % Change Software 41.9 29.5 42.0% • FY21 overall revenue growth of €20.5m on FY20; €10.9m organic growth and 66.4 58.3 13.9% €9.6m acquisition impact. Services 108.3 87.8 23.3% • Software revenue grew 42.0% on FY20. Current yea
Slide 15: Operating Expenses
Operating Expenses For personal use only €m 30 June 21 30 June 20 % Change • R&D operating costs are up €5.3m on FY20. Excluding acquisitions – increase of Research & Development (18.4) (13.1) 40.4% 16.2% due to increase in headcount driven by extra implementations and go- lives. Current year acquis
Slide 16: Statutory to Proforma reconciliation
Statutory to Proforma reconciliation For personal use only €m 30 June 21 30 June 20 108.3 87.8 Statutory revenue - - No adjustments to revenue 108.3 87.8 Pro forma revenue (12.5) (0.2) Statutory (loss) after tax (0.1) Incremental pubic company costs 0.2 Net finance expense 0.7 IPO Cost Existing Opti
Slide 17: Financial Position
Financial Position For personal use only €m 30 June 21 30 June 20 % Change Cash at Bank 14.0 39.8 -64.8% Trade receivables 22.3 17.6 26.7% • Cash at Bank movement reflects combined share issue costs and Unbilled receivables 1.2 0.6 100.0% acquisition costs (€3.1m) and increased spend on R&D to suppo
Slide 18: Statement of Cash Flows
Statement of Cash Flows For personal use only €m 30 June 21 30 June 20 % Change Net cash flows from operating activities 2.9 11.5 -74.8% • Lower net cash inflow from operating activities primarily due to increase in trade receivables and operating expenses. Net cash used in investing activities (85.
Slide 19: FY21 Growth Strategy & Acquisitions
For personal use only FY21 Growth Strategy & Acquisitions © FINEOS Corporation Ltd 19
Slide 20: Growth Strategy
Growth Strategy Expand within existing clients, win new clients and enter new geographic markets For personal use only Grow and Win Expand sales and FINEOS the upsell with clients new clients enter new markets LA&H industry platform ◼ FINEOS has a multinational client ◼ According to Swiss Re; the gl
Slide 21: The FINEOS Platform for Life, Accident and Health
The FINEOS Platform for Life, Accident and Health Meets the Challenge – Core, Digital and Data For personal use only FINEOS AdminSuite; the only ‘Quote to Claim’ core system 9 clients chose the FINEOS for Employee Benefits- Group Customer Expectations Platform for Integrated Voluntary and Absence Di
Slide 22: Proven track record; Referenceable in the market
Proven track record; Referenceable in the market For personal use only “We partner with FINEOS because we know they are going to be there to grow, FINEOS adapt and future-proof the services that we provide to our clients and customers.” AdminSuite – Paul Montanari, VP Operations, New York Life Group
Slide 23: New Business & Underwriting; Limelight Health Acquisition
New Business & Underwriting; Limelight Health Acquisition, August 2020 For personal use only • Integration streams largely complete with product integration ongoing as part of broader product roadmap project • Limelight Health brand and product suite converted to FINEOS in December 2020 • First New
Slide 24: FINEOS Insight and Engage; Spraoi Acquisition
FINEOS Insight and Engage; Spraoi Acquisition, May 2021 For personal use only ✓ Product acceleration Spraoi’s Machine Learning technology will help accelerate the FINEOS Insight product suite to enhance overall product capability and market appeal. ✓ Cross Sales FINEOS has a client base who will be
Slide 25: FINEOS Outlook & Growth
FINEOS Outlook1 & Growth For personal use only • FY22 revenue expected to be in the range of €125-130m, with Subscription revenue anticipated to grow at approximately 30% • Growth expectations supported by a robust pipeline of significant cross-sell and up-sell opportunities with existing clients in
Slide 26: Appendix – Additional Financial Information
For personal use only Appendix 1 – Additional Financial Information © FINEOS Corporation Ltd 26
Slide 27: Statutory Income Statement
Statutory Income Statement For personal use only €m 30 June 21 30 June 20 % Change Software 41.9 29.5 42.0% Services 66.4 58.3 13.9% Total Revenue 108.3 87.8 23.3% Cost of sales (36.3) (29.3) 23.9% Gross profit 72.0 58.5 23.0% Research & Development (18.4) (13.1) 40.4% Sales & Marketing (6.2) (4.3)
Slide 28: Financial Position
Financial Position For personal use only €m 30 June 21 30 June 20 % Change • Cash at Bank movement reflects combined share issue costs and acquisition costs (€3.1m) and increased spend on R&D to support Cash at Bank 14.0 39.8 -64.8% implementations and ongoing product development. Trade receivables
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