Slide 1: Full Year Results
Full Year Results 12 months ended 31st March 2018 Presenter Name Date
Slide 2: Highlights
Very strong sales performance, up 38% to £130.7m. Highlights • Sales closure driving backlog up 45% to £110.7m. Continued revenue diversification. £96.7m REVENUE UP 16% • International revenues up 18% to £20.2m. • Commercial revenues up 19% to £29.1m. • SaaS and software-related revenues up 4% to £1
Slide 3: Group Overview
DIGITAL SERVICES DIGITAL PLATFORMS(1) Group Overview £80m £20m £60m £15m £40m £10m Digital Services: we £20m £5m are a key partner to UK government and £0m £0m FY14 FY15 FY16 FY17 FY18 the leading European FY14 FY15 FY16 FY17 FY18 boutique partner for • Digital Transformation: Online digital • Smart
Slide 4: Financial Summary
REVENUE Financial Latest results represent eighth consecutive year of revenue and adjusted pre-tax profit growth £100m Summary Financial Metrics £75m £55.3m • Growth has been entirely organic, with five-year revenue £42.9m £39.4m CAGR of 23.2%. £50m £31.9m • Excellent revenue visibility: £110.7m bac
Slide 5: People
Talent development and retention is a key focus. People • 7,617 training days completed, or 8 days per person • 234 promotions completed. 1,169 PEOPLE, UP 20% • Good levels of engagement, although attrition has increased to 13%, but below UK average (17%). Number of people increased by 20% to 1,169.
Slide 6: Customers
Commercial is the fastest growing segment. SECTORAL REVENUE FY18 Customers • Revenue increased by 19%: £29.1m (2017: £24.4m). Existing customers underpin revenue growth. Healthcare 14% • Recurring revenue: 21% (2017: 19%). • Repeat customer revenue: 65% (2017: 71%). Commercial Government 30% 56% Bes
Slide 7: Digital Services
Digital Services Presenter Name Date
Slide 8: Digital Services
Digital Services represents 81% of Group revenue. REVENUE Digital Services Very strong sales performance in both Digital Transformation and Workday Services. £78.6m UP 22% • Total sales orders up 45% to £108.4m (2017: £74.6m). • Digital Transformation sales orders increased 40% to £91.2m (2017: £65.
Slide 9: Digital Transformation
Digital Transformation • MOT Transformation • Assisted Prison Visits • View Driver Records • Digital Mortgage • Mobile Examiner Service • Workload Measurement Tool • View Vehicle Records • Student Finance • Commercial Vehicle • Digital Prisons Cloud and • Online Enforcement • Local Land Charges Serv
Slide 10: Digital Transformation
Extending beyond Central Government. MARKET SIZE Digital • Commercial (16%) and healthcare (5%) both growing. Transformation Commercial progress reflects prior investment in sales capacity. £885m UK PUBLIC SECTOR FY18 SPEND • A total of 47 clients engaged in digital projects, with a strong financial
Slide 11: Case Study
Case Study HM Passports Office – Renewal or Welsh Revenue Authority - tax collection Replacement and management Digital Transformation 1.5 million passports The first Wales-only taxes for generated since 2016 800 years We have developed Digital applications increased Raise more than £1bn over three-
Slide 12: Case Study
Case Study NHS Digital – the NHS app MOJ – Online Divorce service Digital Transformation Building a new NHS App to be 841 successful submissions launched in England in late 2018. in the first two weeks. Smartphone App and web site Our services are offering a range of services. 93% user satisfaction
Slide 13: The Workday opportunity
Existing Activity Planned Activity 2011 2014 2018 2021 The Workday opportunity Implementations EUROPE Smart SaaS Subscriptions 2011: UK Post Deployment Services 2015: BENELUX 2017: DACH, NORDICS Globally, there are 35 Workday Cloud Platform partners accredited to implement Workday’s Smart SaaS Subsc
Slide 14: Workday Services
Strengthened our position as leading European partner. MARKET SIZE Workday • Strong sales closure: 39 deals signed (2017: 12). Services • A total of 29 clients in mainland Europe (2017: 17). • Copenhagen, Frankfurt, Amsterdam offices supporting clients in Nordics, DACH and Benelux regions. £110m UK
Slide 15: Case Study
Case Study PUMA SE Crown Commercial Service Workday Services Helps the public sector find the right commercial 13,000 employees solutions for over £12 billion of spend annually With over 250 ongoing Project headquartered in 720 staff operating in 4 Herzogenaurach locations across the UK engagements,
Slide 16: Digital Platforms
Digital Platforms Presenter Name Date
Slide 17: Digital Platforms Overview
Digital Revenues increased by 4% to £15.9m, (2017: £15.2m) REVENUE TREND (1) representing 17% of total Group revenue (1). Platforms • Complements Digital Services, providing long-term £16m Overview revenue visibility, with backlog at £34.4m (2) £12m £2.5m £4.7m £7.7m (2017: £32.6m). £1.0m • All inve
Slide 18: Smart for Workday
Now 115 global customers using Smart. REVENUE TREND FY18 Smart for • Further 33 signed in 2018 including Centrica, United £8m £1.3m Workday Technologies Group, Cancer Research and Telia. £6m £4m £1.1m Financial performance underlines strength of product £6.4m and market opportunity. £2m £3.7m • Reve
Slide 19: Case Study
Discover Financial Cardinal Health Case Study Smart for Workday Number 15 on the Fortune 16,500 employees 500 list Smart is a cloud- $9.8 billion in revenues Servicing over 24,000 pharmacies based SaaS solution licensed on a subscription basis to Manufacture or source more Leading Financial than 2.5
Slide 20: Evolve
Evolve Performance reflects NHS funding headwinds. REVENUE TREND (1) £12m • Revenue: down 24% to £8.1m (2017: £10.6m).(1) £10m • Sales Orders: up 28% to £10.0m (2017: £7.8m).(2) £3.9m £8m £2.6m £6m EMR: Improved sales closure and increasing £3.2m £1.7m £4m procurement activity. £2m £3.5m £3.8m • Mod
Slide 21: Case Study
Case Study Ashford and St Peter’s Hospital Ipswich Hospital Evolve Serves a population of 380,000. First time EMR migration to the Cloud for Kainos Evolve Annual saving of £3 million for Microsoft Azure cloud-hosted Evolve continues to be the Trust. managed service a key enabler in delivering transf
Slide 22: Financial Performance
Financial Performance Presenter Name Date
Slide 23: Financials: Income Statement
Revenue: INCOME STATEMENT Financials: • Digital Services Income • Digital Transformation growth: 19% • Workday Services growth: 40%. £m 2018 2017 Change Statement • Digital Platforms Digital Services 78.6 64.5 22% • Growth excluding 3rd party: 4%. Digital Platforms 18.1 19.0 (5%) • Smart growth: 66%
Slide 24: Financials: Balance Sheet and Cashflow
BALANCE SHEET Financials: Commentary As at 31 March (£m) 2018 2017 Balance Sheet Balance Sheet: Fixed assets and investments 3.1 2.9 Debtors and WIP 29.3 22.4 and Cashflow • Limited fixed assets; IT, office equipment. • Trade Debtors/Accrued Income at 62 days Other assets 3.9 1.9 (2017: 60 days). Ca
Slide 25: Looking Ahead
Looking Ahead Presenter Name Date
Slide 26: Market Expansion
Market Expansion 2011 2014 2018 2021 PUBLIC Digital Transformation (UK) 56% OF GROUP REVENUE Workday (UK) We are well placed to COMMERCIAL Workday Services (UK, Benelux, DACH, Nordics) deliver growth in the 30% coming years OF GROUP REVENUE Digital Transformation (UK) We are expanding our offerings
Slide 27: Legal and Confidentiality Statement
Legal and 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, financial Confiden