Kainos Group Plc · LSE:KNOS
Kainos — Investor Day (June 2018)
27 slides from Kainos's investor day presentation, Jun 26, 2018
Slide 1: Capital Markets Day
Capital Markets Day 26th June 2018 Presenter Name Date
Slide 2: Highlights
Highlights Very strong sales performance, up 38% to £130.7m. (as at 31 March 2018) • Sales closure driving backlog up 45% to £110.7m. Continued revenue diversification. £96.7m REVENUE UP 16% • International revenues up 17% to £20.2m. • Commercial revenues up 19% to £29.1m. • SaaS and software-relate
Slide 3: Group Overview
Group DIGITAL SERVICES DIGITAL PLATFORMS(1) Overview £80m : 21 . 6% £20m 32. 0 % GR R: CA CAG £60m £15m £40m £10m Digital Services: we £20m £5m are a key partner to UK government and £0m £0m the leading European FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 boutique partner for • Digital Transfo
Slide 4: Today's Speakers
Today’s Speakers Russell Sloan Nigel Lynas Dyfed Alsop, Welsh Revenue Russell leads the Digital Nigel is responsible for public Dyfed was appointed Chief Executive Transformation business within sector sales within the Digital of the Welsh Revenue Authority in Our six speakers Kainos, which numbers
Slide 5: Agenda
Agenda 1.40pm Digital Transformation. • Russell Sloan, Kainos. Session 1 • Nigel Lynas, Kainos. 2.10pm Welsh Revenue Authority. • Dyfed Alsop. 2.40pm Q&A Session. This Capital Markets Day presentation Demonstrations and coffee focuses on Digital Services. Session 2 3.20pm Workday Overview. • Carolyn
Slide 6: Digital Services Overview
Digital FIVE YEAR PERFORMANCE FY18 REVENUE UP 22% Services £80m £78.6m Overview CA GR : 21 . 6% DIGITAL UP 19% TO £64.7m WORKDAY UP 40% TO £13.9m £60m We are a key partner £40m FY18 SALES ORDERS UP 45% to UK government and increasingly to innovative commercial £20m £108.4m DIGITAL UP 40% TO £91.2m o
Slide 7: Digital Transformation
Digital Transformation Presenter Name Date
Slide 8: Digital Transformation Overview
EXTENDING ACROSS SECTORS Digital Very strong performance across key metrics. • Revenue increased 19% to £64.7m (2017: £54.6m). Transformation • Sales orders increased 40% to £91.2m (2017: £65.3m). • Data governance Overview • Backlog increased 102% to £63.2m (2017: £31.3m). operating model. Extendin
Slide 9: Our Track Record
Our Track Record • MOT Transformation • View Driver Records • Digital Mortgage • Assisted Prison Visits • Mobile Examiner Service • View Vehicle Records • Student Finance • Workload Measurement Tool • Commercial Vehicle • Online Enforcement • Local Land Charges • Digital Prisons Cloud and Service Pa
Slide 10: Operating Model
Operating Outcome focused work. • Agile delivery working along with clients. Staff mix. • Target model is 90% permanent staff, 10% Model • Enablement of client organisations. contractors (currently 18.5% contractors). Data to drive decision making. Team mix. • Range of skills and roles. Cloud implem
Slide 11: Case Study DVSA
Case Study MOT History Driver Theory Test Mobile Examiner • 6 million searches per • 2.2 million tests per year • 2 million practical tests per year month • 60% fail at hazard • 1,856 iPad-enabled driving DVSA • User satisfaction: >80% perception stage examiners 2014 2015 2016 2017 We have worked in
Slide 12: How We Sell
WIN RATE How We Sell Consulting and delivery led selling. • Concentration on delivering continued value and building strong, trusted relationships. • Service design ensures we propose and develop the 72% ‘right service’ all of the time. OF ALL COMPETITIVE BIDS Build on strong references. • With over
Slide 13: Digital Transformation Market
MARKET SIZE Digital Central Government marketplace remains buoyant. • Digital marketplace growing at 30% p.a. Transformation Market • Digital Outcomes and Specialists framework is growing significantly (150% increase on prior year) and Kainos £885m is ranked #1. UK PUBLIC SECTOR FY18 SPEND Disaggreg
Slide 14: EU Exit
EU EXIT ADDITIONAL BUDGET EU Exit No impact to our business is expected. Government currently exploring key IT challenges. • Capacity in the supply base to address the demand. • Capacity and maturity of internal IT skills. £3bn £1.5bn ALLOCATED FOR FY19 • Speed of turnaround in procurements. • Abili
Slide 15: Case Study: NHS App and Online Divorce service
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 16: Case Study: HM Passport Office and Welsh Revenue Authority
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 Plan to raise more than £1bn t
Slide 17: Workday Services
Workday Services Presenter Name Date
Slide 18: Workday Services Overview
Workday Very strong performance across key metrics. • Revenue increased 40% to £13.9m (2017: £10.0m). COMPETITOR LANDSCAPE • Boutique: Kainos, OSV, Appirio, Services • Sales orders increased 85% to £17.2m (2017: £9.3m). Collaborative Solutions, Overview • Backlog increased 56% to £7.5m (2017: £4.8m)
Slide 19: UK Public Sector Opportunity
UK Public Significant market opportunity available. • 18 Central Government Departments. CROWN COMMERICAL SERVICES Sector • 350 Arms Length Bodies. Helps the public sector find Opportunity • 560 Housing Associations. the right commercial solutions for over £12 • 157 Universities. billion of spend an
Slide 20: Financials Opportunity
Financials, Globally, the Financials ERP opportunity is twice as large as the HCM opportunity. GLOBAL ERP MARKET OPPORTUNITY Opportunity For Workday, Financials is a fast growing market. • Recent acquisition of Adaptive Insights for $1.55bn. HCM Financials 19% 41% Workday Financials is Kainos have t
Slide 21: Post Deployment
Post Post Deployment widens the market opportunity, while introducing annuity-style revenue. POST DEPLOYMENT REVENUE Deployment Annuity revenue from Post Deployment Services is currently 32% of total revenue (2017:14%). £4.5m 66% of our clients have been secured by displacing £1.4m competitors. Post
Slide 22: European Expansion
European Increased from 110 to 170 consultants in CUSTOMER GROWTH BY GEOGRAPHY Expansion Europe (2017-2018). 60 UK & Ireland and Continental Europe 50 businesses served from two Centres of 40 Excellence (NI and Poland). 30 Investment in WorkSmart Academy. From our strong base 20 in UK & Ireland we U
Slide 23: Germany, Austria & Switzerland (DACH)
Germany, Austria & Kainos are the only Boutique partner in DACH. GERMAN COMPANIES (# of EMPLOYEES) Switzerland Established in March 2017. 3331 (DACH) 1955 1558 15 consultants based in Germany. 421 205 • Further 20 German speaking consultants in Poland Centre of Excellence. 250-499 500-999 1-3.5k 3.5
Slide 24: The Workday opportunity
Existing Activity Planned Activity 2011 2018 2021 The Workday 2014 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 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