Slide 1: Full Year Results
Full Year Results 12 months ended 31 March 2016 31/05/2016
Slide 2: Group Summary
Group Summary OVERVIEW REVENUE • Kainos is a high growth, high-margin company £80m providing IT services, consulting and software £60m solutions £40m – Digital Services – online platforms for UK Government and Commercial customers £20m – Evolve – digitised patient records for UK NHS £0m and internat
Slide 3: Group Overview
Group Overview Kainos is a high growth, high-margin company providing digital technology solutions and agile software development through three divisions Digital Services Evolve WorkSmart Building online digital platforms Delivering digitised patient Implementing the Workday SaaS for UK Government D
Slide 4: Growth Story
Growth Story Digital Services Evolve WorkSmart • Build deeper relationships • Continue to dominate NHS • Expand into Europe, opening with current customers Acute market dedicated offices • Increase number of large • Expand into Ambulance, • Extend our Workday services central government clients Comm
Slide 5: FY2015-16 Full Year Performance
FY2015-16 Full Year Performance 31/05/2016 5
Slide 6: Financial Overview
Financial Overview COMMENTARY REVENUE • £76.6m FY 2016 revenue and profit in line with market expectations – 5th consecutive year of revenue growth – 5th consecutive year of profit growth • Significant, software-led international expansion GROWTH OF 26% – Evolve and WorkSmart signed significant inte
Slide 7: Operational Overview
Operational Overview COMMENTARY SALES ORDERS(1) • £81.2m Added 62 new customers in FY 2016 – Including Office for National Statistics, Queen Victoria Hospital NHS Foundation Trust and New York Metropolitan Museum • Kainos Smart Software Performance GROWTH OF 8% – 55 international clients now on the
Slide 8: People
People COMMENTARY STAFF NUMBERS • 840 Continue to attract and retain high calibre people; 123 people joined in the past 12 months – Northern Ireland 458 (+66 people) – Great Britain 143 (+2 people) – Poland 203 (+55 people) GROWTH OF 17% – Ireland & International 36 (no change) – Total 840 (+123 peo
Slide 9: Customers
Customers COMMENTARY REVENUE TYPE • Existing clients driving revenue growth One Off – Repeat / Recurring: 88.7% Completed – New clients: 10.8% New Repeat – Non-recurring: 0.5% Recurring • FY2016 new client acquisition – 62 in total – Consulting: 27 (25 in FY2015) FY11 FY12 FY13 FY14 FY15 FY16 – SaaS
Slide 10: Digital Services
kainws’ Digital Services
Slide 11: Digital Services Market Summary
Digital Services Market Summary COMMENTARY MARKET • Significant increase in market opportunity Competitors – Estimates indicate spending on digital projects – Specialist: Valtech, BJSS, ThoughtWorks – Large SIs: HP, Atos, Fujitsu rising to £2.5bn per annum by 2020 – Internal IT – limited capacity –
Slide 12: Digital Services Performance
Digital Services Performance COMMENTARY REVENUE • £48.5m Increasing demand across existing customers; new customers added – Growth excluding re-profiled project: 40% • Comprehensive Spending Review – Delays during review period but strong GROWTH OF 11% commitment from government to digital transform
Slide 13: Digital Services Performance
Digital Services Performance COMMENTARY SALES ORDERS • Sales orders • – Existing customers: – New customers: £50.5m £2.8m Client concentration reduced £53.3m – Top 5 clients account for 55% (67% FY 2015) GROWTH OF 7% • Continued growth in central government; regional government beginning journey REV
Slide 14: Case study: Ministry of Justice
Case study: Ministry of Justice HMCTS Reform Identity & Access Automated Track Case Programme Management Project Management Project • HM Courts and Tribunal Service • For the Criminal Justice System • Remove high volume, low • Ensure public, magistrates, level cases from courtrooms • Programme to di
Slide 15: Case study: Scottish Courts Service
Case study: Scottish Courts Service Digital Services and Case Management for Civil Proceedings in Scotland • 600 court officers, 11,000 solicitors and general public • 39 Sheriff Courts nationwide • 130,000 Civil court cases per year • Additional projects: Managed Cloud, Juror Selection, Criminal co
Slide 16: Evolve
31/05/2016 16
Slide 17: Healthcare & Technology Requirements
Healthcare & Technology Requirements KEY GLOBAL ISSUES AND TRENDS IN EUROPE • Ageing population and chronic diseases Estimates point to a shortage of one million health professionals in the EU by 2020 … and • Cost and quality of healthcare a shortage of 600,000 workers in nursing and a shortage of 2
Slide 18: Evolve Offerings
Evolve Offerings Evolve Electronic Offering Evolve Integrated Care Medical Record (EMR) (1) Market License Model Perpetual (2) Subscription Deployment UK NHS: £400m Addressable market UK NHS: £200m Partners (Global): $1bn+ Notes: 1. We see some opportunity to offer Evolve EMR outside the UK NHS 2. S
Slide 19: Evolve Performance
Evolve Performance COMMENTARY REVENUE (1) • £11.5m Good progress on revenue whilst maintaining strong margins and international investment • Evolve EMR continues to extend leadership position in UK NHS – Added East Sussex, West Sussex, Queen GROWTH OF 72% Victoria Hospital and West Middlesex – Evolv
Slide 20: Evolve Performance
Evolve Performance COMMENTARY SALES ORDERS(1) • Evolve EMR: NHS market remains challenged – £13.1m high need, but capped funding and lengthy sales cycles remain – Department of Health (2) submission to Spending Review: £3bn, “front loaded for paper free healthcare…” REDUCTION OF 29% – Early indicati
Slide 21: Case Study: Worcestershire Acute Hospitals NHS Trust
Case Study: Worcestershire Acute Hospitals NHS Trust • Worcestershire Acute Hospitals NHS Trust “Evolve for iPad is a complete no- – 5,500 staff, annual turnover: £360m brainer. This improves patient safety enormously: to lose access to this – Worcestershire Royal Hospital (500 beds) would be like r
Slide 22: WorkSmart
kaines? WorkSmart
Slide 23: Workday Inc.
Workday Inc. COMPANY OVERVIEW GROWTH FOCUS • Leading SaaS Human Capital Management • Focused on displacing ERP legacy vendors (HCM) and Financials platform • Continue sales momentum in HCM • Workday competes against Oracle and SAP • Accelerate into Financials market • Annual growth rate of 48% in FY
Slide 24: Kainos WorkSmart Services - Market Dynamics
Kainos WorkSmart Services - Market Dynamics COMPETITIVE LANDSCAPE UK MARKET • 80% of Workday projects implemented by partners Number of Organisations Med. Enterprise Large Enterprise • Tightly controlled partner ecosystem – 36 service partners worldwide 850 – Kainos is the only software and services
Slide 25: Kainos Smart SaaS
Kainos Smart SaaS 31/05/2016 25
Slide 26: Kainos Smart Client Case Study
Kainos Smart Client Case Study COMPANY OVERVIEW TEST EVENT • 57,500 employees • 51,000 security tests • $26 billion annual sales • One button click • 65 different countries • Execution time: 2hours 20mins • Constant change • 500+ man days to execute manually 65 65 Countries 57 Countries 20 Fields Ac
Slide 27: Kainos Smart Customers
Kainos Smart Customers Across financial services, government, education, manufacturing and technology 31/05/2016 27
Slide 28: Kainos Smart - Market Opportunity
Kainos Smart - Market Opportunity 1400 20% Global Workday Customers Smart Market Penetration (%) 1180 1200 15% 1000 860 800 620 10% 600 410 5.1% 400 3.5% 5% 200 1.5% 0.0% 0 0% 2013 2014 2015 2016 • The only alternative to Kainos Smart is • Addressable market is all Workday clients manual testing (or
Slide 29: WorkSmart Performance
WorkSmart Performance COMMENTARY REVENUE • £9.0m New projects drive strong H2 performance – H2 vs H1 revenue - increase of 23% – Five new consulting projects signed • Strong recruitment and certification of consultants INCREASE OF 10% – 75 certified consultants (+13 from H1 2016) – A further 7 consu
Slide 30: WorkSmart Performance
WorkSmart Performance COMMENTARY SALES ORDERS • Workday, Inc. continues strong growth (48% in £16.2m FY2016) • Strong WorkSmart H2 sales performance – £12.4m signed in H2 2016 (£3.8m H1 2016) – Five new consulting engagements signed, GROWTH OF 96% including largest ever consulting project of €4.5m –
Slide 31: Case Study: Icon plc
Case Study: Icon plc • Global Workday Support Partner across 37 Countries • Helping ICON to improve their people processes for over 12,000 employees • Proactive maintenance and enhancement coupled with reactive fault/fix services • New and improved functionality being deployed on a weekly basis 31/0
Slide 32: Financial Performance
Financial Performance 31/05/2016 32
Slide 33: Financials: Income Statement
Financials: Income Statement COMMENTARY INCOME STATEMENT • Revenue: £m FY 2014 FY 2015 FY 2016 CAGR – Services growth: 13% Digital Services 31.8 43.6 48.5 24% – Licence growth (Evolve and Smart): 101% Evolve 5.9 9.0 19.1 79% – Top 10 customer concentration: 48% (62% FY15) WorkSmart 4.2 8.2 9.0 47% •
Slide 34: Financials: Balance Sheet and Cash Flow
Financials: Balance Sheet and Cash Flow COMMENTARY BALANCE SHEET As at 31 March (£m) 2014 2015 2016 • Balance Sheet: Fixed assets 2.2 1.8 2.1 – Limited fixed assets; IT, office equipment Investments - - 0.9 – Investment in Cirdan Imaging: £0.9m Other current assets 18.5 21.0 24.0 – Underlying trade
Slide 35: Summary
Summary 31/05/2016 35
Slide 36: Summary
Summary COMMENTARY FY2016 PERFORMANCE • £76.6m Excellent growth across all operating parameters, delivering in-line FY 2016 trading performance • Increasing demand from existing customers, REVENUE GROWTH OF 26% augmented by new customer acquisition • Underlying market conditions remain robust, suppo
Slide 37: Legal and Confidentiality Statement
Legal and Confidentiality 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, indebt