Kainos Group Plc · LSE:KNOS
Kainos — FY2022 Earnings Presentation
23 slides from Kainos's earnings presentation, May 23, 2022
Slide 1: Full Year Results
Full Year Results 12 months ended 31st March 2022 Brendan Mooney (CEO) and Richard McCann (CFO) 23 May 2022
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: Group Overview
Group Overview We have an excellent position in long-term, high-growth markets DIGITAL SERVICES WORKDAY SERVICES SMART PRODUCTS £200m £71m £32m £162m £49m £24m £117m £123m £19m £37m £75m £23m £11m £14m £8m 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 • The full lifecycl
Slide 4: Highlights
Highlights Another excellent year of growth Our performance reflects sector demand, high levels of customer engagement REVENUE(1) +29% and the commitment of our colleagues • Revenue, bookings and backlog all recording very strong growth £303m • Profit growth moderated by increased investment and cos
Slide 5: Financial Summary
Financial Summary An established track record of high growth, high margin performance Our performance represents the twelfth consecutive year of revenue and REVENUE adjusted pre-tax profit growth £300m H1 Revenue • Five-year (2017-2021) revenue CAGR of 33% H2 Revenue £240m • Very strong revenue visi
Slide 6: Our People
Our People We continue to build an exceptionally talented and engaged workforce PEOPLE +33% COMMENTARY GLOBAL LOCATIONS 2,692 Increased presence across all regions • UK & Ireland (+399), Central Europe (+74) and 415 337 With people based in 22 countries, we Americas (+195) GROWTH TREND 1,940 are gro
Slide 7: Our Customers
Our Customers Delivering value to our clients drives long-term relationships £350m REVENUE BY CUSTOMER TYPE CUSTOMER RETENTION £300m £35m New client acquisition unlocks multi-year £17m Recurring Customers £250m Repeat Customers revenue streams. New Customers £29m £35m Revenue from clients acquired p
Slide 8: Business Balance
Business Balance We have made excellent progress in building resilience into our revenue streams GROUP REVENUES BY SECTOR GROUP INTERNATIONAL REVENUES (6) Public Sector Rest of World Commercial Sector £68m Central Europe Healthcare sector North America £27m £48m £23m £124m £20m £21m £81m £63m £40m £
Slide 9: Our Responsibilities
Our Responsibilities Being responsible towards our people, our customers, our communities and our planet CLIMATE ACTION GENDER EQUALITY QUALITY EDUCATION Reducing our climate impact Promoting gender equity, equality Increasing employment potential and gender rights for under-represented groups Remai
Slide 10: Divisional Performance
Divisional Performance
Slide 11: Digital Services
Digital Services Very strong revenue growth and sales execution, driving exceptional backlog growth REVENUE +24% COMMENTARY MARKET SIZE Continued momentum recorded in all key metrics • Very strong client demand, we remain selective and £1.919bn focused on undertaking strategic opportunities UK PUBLI
Slide 12: Digital Services
Digital Services Expanding the markets where we can succeed UK COMMERCIAL SECTOR NEW BUSINESS INITIATIVES INTERNATIONAL BUSINESS GROWTH ACCELERATES GAIN TRACTION ESTABLISHED Building reputation and references Data and Artificial Intelligence Central Europe growth from across several clients practice
Slide 13: Digital Services: Customer Stories
Digital Services: Customer Stories We have established a clear reputation for delivering value, at scale and at pace FCDO DVSA CUSTOMERS 20+ people supporting First engagement with 14 different FCDO DVSA in 2013, for services globally replacement MoT Service Emergency Travel Continue to improve the
Slide 14: Workday Services
Workday Services We are one of the most experienced partners in the Workday ecosystem REVENUE (8) +45% COMMENTARY ADDRESSABLE MARKET Very strong performance across all key metrics • Excellent growth in backlog, underpinning future £884m £71m 2022 GLOBAL SERVICES FORECAST (9) £49m performance £37m £2
Slide 15: Smart Product Suite for Workday
Smart Product Suite for Workday Innovative products that complement Workday’s core platform REVENUE +32% COMMENTARY ADDRESSABLE MARKET Very strong performance across all key metrics • Annual Recurring Revenue up 45% to £34m (2021: £24m) £410m £32m 2022 ESTIMATED GLOBAL WORKDAY £24m £19m Smart Test:
Slide 16: Increasing our product investment
Increasing our product investment Extending Smart Test, launching Smart Audit and adding new products INVESTING IN SMART PRODUCT ROADMAP INVESTING IN SALES AND MARKETING REACH Creating a suite of functional products for Building international sales and marketing global Workday customer base teams al
Slide 17: Workday Practice: Customer Stories
Workday Practice: Customer Stories Helping forward-thinking customers deploy and safeguard their Workday system AUTOSTORE CHEMOURS CUSTOMERS Warehouse robot tech US chemical company company, Norway HQ 6,500 employees, 3,300 serving 40+ countries customers, 120 countries Fast-growing, AutoStore Initi
Slide 18: Financial Performance
Financial Performance
Slide 19: Group Income Statement
Group Income Statement Group INCOME STATEMENT • Comparisons to 2021 complicated given the impact of Covid-19 £m 2022 2021 Change Revenue 302.6 234.7 +29% Digital Services: • Revenue growth varies by sector Gross profit 140.2 118.3 +19% • Public: +6% Direct expenses (59.3) (43.8) +35% • Commercial: +
Slide 20: Balance Sheet and Cashflow
Balance Sheet and Cashflow Balance Sheet: BALANCE SHEET As at 31 March (£m) 2022 2021 • Fixed assets and investments Fixed assets and investments 19.4 15.4 • IT, office equipment, investments etc. £8.2m (2021: £3.9m) Goodwill and Intangible assets 24.8 6.4 • IFRS16 leases capitalised £3.2m (2021: £3
Slide 21: Underlying Performance assessment
Underlying Performance assessment Significant gains achieved vs pre-Covid-19 environment Comparison with last “normal” year: INCOME STATEMENT • Revenue growth 69% FY • Gross profit growth 67% £m FY 22 FY 20 Change • Significant salary inflation Revenue 302.6 178.8 +69% • Reduced travel costs Gross p
Slide 22: Looking Ahead
Looking Ahead
Slide 23: Outlook
Outlook We have strong positions in fast-growing, international markets DIGITAL SERVICES WORKDAY SERVICES SMART PRODUCTS UK leader in delivering Continue to outpace Achieve £100m of SaaS digital transformation underlying market growth recurring revenue by 2026 2023 PRIORITIES 2023 PRIORITIES 2023 PR