Felix Group Holdings Ltd. · ASX:FLX
Felix — FY2021 Earnings Presentation
31 slides from Felix's earnings presentation, Aug 23, 2021
Slide 1: FY21 Results Presentation
FY21 Results Presentation Felix Group Holdings Ltd ACN 159 858 509 felix.net
Slide 2: Building relationships. Connecting construction.
Building relationships. Connecting construction. Felix - FY21 Results 2
Slide 3: Construction industry is ripe for disruption
Construction industry is ripe Perfect storm of critical issues is driving technology adoption for disruption Large and growing Significant compliance Low IT industry environment spend ↘ Example: Multi-billion dollar infrastructure project Sustainability 50% local supply Inabillity to 4% Indigenous o
Slide 4: Established platform connecting industry players
Established platform connecting Felix connects Contractors and Vendors, digitising and automating critical procurement processes industry players Vendors Contractors (e.g. Boral) are contracted to deliver (e.g. CIMIC) engage a supply chain of specific works or supply materials third-party Vendors to
Slide 5: Felix transforms the procurement lifecycle
Felix transforms the "Felix provides real-time visibility of what stage the procurement process is at, from who is waiting on procurement lifecycle approvals to the visibility of all documents and analysis." Peter Bolanis - Head of Procurement & Contracts West Gate Tunnel Project $6bn+ major infrast
Slide 6: Network effects are accelerating scale and entrenching market position
Network effects are Mandated use of Felix by Contractors drives rapid scale accelerating scale and entrenching market position 05 Increased scale of Vendor Marketplace attracts new 01 New Contractor adopts and embeds Felix across Contractors organisation New Contractors onboard their entire third-pa
Slide 7: Company timeline
Company timeline Staged platform development with the focus shifting to accelerating scale ↘ Launch and expand ↘ Develop enterprise solution ↘ Integrate ↘ Contractor-led marketplace for Vendors for Contractors platforms strategy to scale platform May Jan Oct May Sep Jan 2013 2015 2015 2018 2020 2021
Slide 8: Growth Strategy
Growth Strategy Highly strategic base of leading Contractors Significant Contractor pipeline Penetration of new high value sectors Unlocking the value of Vendor Marketplace Global Opportunity Felix - FY21 Results 8 8
Slide 9: Highly strategic leading Contractors
Highly strategic leading Contractors 31 Contractors with significant value to be realised as platform usage expands across divisions Felix - FY21 Results 9
Slide 10: Felix monetises both Contractors and Vendors
elix monetises both Contractors F End-to-end solution across entire procurement cycle and Vendors Vendor Sourcing Contractors $60,000 Management Enables project teams to Seamlessly manages all tiers of manage sourcing activities while Average ARR Contractors‘ supply chain remaining centrally documen
Slide 11: Land and expand strategy
Land and expand strategy ↘ Case Study Platform adoption expands across Contractors‘ divisions underpinning organic growth ARR expansion from existing ASX-listed Enterprise customer $36k $45k $69k $100k ~$210k Apr Jul Jun Dec Expansion 2018 2020 2021 2021 2022 Vendor Management Vendor Management Ve
Slide 12: Accelerating conversion of Contractor pipeline
ccelerating conversion of A Felix is on the cusp of accelerated growth underpinned by immediate pipeline opportunities Contractor pipeline Significant growth potential (# Contractors1 ) ~1,700 Near-term focus on doubling Contractors 130 31 36 24 5 12 COVID-19 impact FY18 FY19 FY20 FY21 Advanced Qual
Slide 13: Penetration of new high value sectors
Penetration of new high value sectors Success in initial target industries leading to wider adoption of Felix across new high value sectors Potential licence fee of advanced stage pipeline by sector (%) ↘ Ongoing traction across ↘ Broad applicability of platform providing initial target sectors grow
Slide 14: Monetise Vendor Marketplace
Monetise Vendor Marketplace Long-term growth underpinned by significant opportunity to unlock value of Vendor Marketplace Pathway to further monetisation of Vendor Marketplace Monetise Accelerated scale Release Vendor Vendors modules Increase Contractors Release Vendor Compliance Significant value o
Slide 15: Vendor Compliance Passport
Vendor Compliance Passport Allow Vendors to centrally store qualification and compliance documents and automatically populates prequalification forms Verifies Vendor qualifications against documents such as ABN, insurance certificates and banking information Value of the module provides significant
Slide 16: Vendor compliance automation
Vendor compliance automation Scaling compliance document volume represents an opportunity to achieve improved efficiency and accuracy for users through automation AI-powered documentation information extraction and validation will provide signifcant operational and strategic benefits for Vendors and
Slide 17: Global opportunity
Global opportunity Geographic footprint of Vendor Marketplace ↗ Felix‘s compliance framework is based on international standards making the platform easily deployable to +131 % 53 international markets Growth in international Countries Vendors vs FY20 ↗ Large Australasian customers with global suppl
Slide 18: FY21 Results
FY21 Results Felix - FY21 Results 18
Slide 19: Group ARR
Group ARR Deliberate strategic shift in FY20 towards scaling Contractor ARR Group Contracted ARR ($m) ↗ Key focus of Felix has been on scaling Contractors Accelerated growth and increasing Contractor ARR which has increased 25% to $1.9m in FY21 4.1 3.8 ↗ Strong momentum into Q1 FY22 with a number of
Slide 20: Continued Contractor revenue growth
Continued Contractor revenue growth Contractor ARR FY21 vs FY20 Contractor ARR ($m) $ 1.9 m +25 % 1.9 1.5 ↗ Strong year-on-year revenue growth trajectory with a number of near-term contract discussion well progressed 0.6 ↗ Completed a number of planned key staff hires to support ramp-up of platform
Slide 21: Contractor strategy driving rapid Marketplace growth
Contractor strategy driving rapid Marketplace growth Vendors in Marketplace vs FY20 Vendors in Marketplace ('000) 52.2 k +53 % 52.2 34.1 ↗ Growing scale of Vendor Marketplace accelerates future monetisation opportunities 20.2 ↗ Ongoing discussions with a number of new customers provide access to lar
Slide 22: FY21 Key performance metrics
FY21 Key performance metrics Strong growth across core business and expanding key Contractor revenue metrics 98.3 % 31 $ 135 k Contractor Contractor Contractor APR1 Retention Customers MRR2 UP from 95.9% (FY20) +29% (FY20) +48% (FY20) 1 Sum of annualised recurring lience fees for Contractor customer
Slide 23: Growing engagement across the platform
Growing engagement across Accelerating key engagement metrics reflects the platform‘s penetration of customer ecosystems the platform +777 Number of active projects % ↘ Reflects rapid take-up of Sourcing module +294 Request for Quotations (RFQ) sent % ↘ Reflects growing use by Contractors to source
Slide 24: Summary FY21 financials
Summary FY21 financials FY21 ($m) FY20 ($m) Change (%) Financial Commentary Revenue ① Contractor subscriptions 1.5 1.1 30 ① Strong performance in Contractor revenues was a result of a number of new contracts wins and expansions of existing contracts. ② Vendor subscriptions 2.1 2.6 (17) ② Vendor reve
Slide 25: Outlook
Outlook Felix - FY21 Results 25
Slide 26: Strategic plan
Strategic plan Continued execution against strategic plan provides foundation for accelerated growth Phase 1: ↘P hase 2: Phase 3: Core Platform established Accelerate growth Monetise Vendors (Complete) (Underway) $15m invested in technology platform latform internationalisation enhancements to drive
Slide 27: Favourable industry backdrop
Favourable industry backdrop Strong tailwinds provide Felix with expanding opportunities Compliance ESG & CSR Digitisation Infrastructure spending Increasing legislative Contractors are pursuing initiatives Errors, delays, disputes and Government initiatives to stimulate requirements, like the Moder
Slide 28: Investment summary
Investment summary Established platform Highly strategic Accelerating connecting industry customer base conversion of players Contractor pipeline Felix connects Contractors and Vendors, Leading Contractors with significant value to be Near-term focus on doubling number of digitising and automating c
Slide 29: Additional information
Additional information Felix - FY21 Results 29
Slide 30: Board and Management
Board and Management Michael Bushby -3 0 years’ experience in Government including former - Extensive corporate experience in Australia and Joycelyn Morton Chief Executive of Roads & Traffic Authority in NSW internationally across a variety of industries Chairman Non-Executive -S enior experience in
Slide 31: Disclaimer
Disclaimer The information in this presentation does not constitute Accordingly, neither the Company nor any of its directors, personal investment advice. The presentation is not intended officers, employees, advisers, associated persons to be comprehensive or provide information required by or subs