Felix Group Holdings Ltd. · ASX:FLX
Felix — H1 FY24 Earnings Presentation
29 slides from Felix's earnings presentation, Feb 26, 2024
Slide 1: H1 FY24 Results Presentation
felix H1 FY24 Results Presentation February 2024
Slide 2: Contents
Contents Felix Overview H1 FY24 highlights Growth strategy Outlook Additional information felix
Slide 3: Felix overview
Felix overview felix
Slide 4: Felix snapshot
Felix snapshot Leading enterprise platform for capital asset sectors to manage their high-risk and diverse supply chains Established procurement management platform linking Contractors and Vendors, digitising and automating complex supply chains Trusted by Tier 1 Contractors to manage risk, increase
Slide 5: Established platform connecting industry players
Established platform connecting industry players Felix links Contractors and Vendors, digitising and automating complex procurement supply chains Contractors Vendors (e.g. CIMIC) engage a supply chain of third-party (e.g. Boral) are contracted to deliver specific Vendors to deliver capital projects
Slide 6: End-to-end solution
End-to-end solution Felix enables Contractors and Vendors to efficiently find, manage and engage each other Contractor modules Vendor modules Vendor Sourcing Procurement Contracts Vendor Vendor Wallet Management Schedule Marketplace and Passport Seamlessly manages all Enables project teams to Stream
Slide 7: Highly strategic leading Contractors
Highly strategic leading Contractors 49 Tier 1 and leading Contractors trust Felix to automate and digitise high risk procurement supply chains comme «QR. uCIMIC | RW. A THIESS = SARAH NEW HOPE Ra GPT PRIM=RO = (CSSyMRaUF ®. Hl Monedelphous SOUTHERN reed The GPT Group Ports AUTHORITY AERIS@N wcenus
Slide 8: H1 FY24 highlights
H1 FY24 highlights felix
Slide 9: H1 FY24 highlights
H1 FY24 highlights Strong sales momentum with Contractor ARR growth of 55% on pcp $6.8m $4.9m $426k 49 Group ARR Contractor ARR’ Contractor MRR2 Tier 1 and leading Contractors +39% on H1FY23 +55% on H1FY23 +67% on Dec-23 +14% on H1FY23 Contractor net revenue retention? New Contractors signed Expansi
Slide 10: Group ARR
Group ARR Strong growth in Group ARR tracted ARR (Sm) © +39% growth in Group ARR to $6.8m o +55% growth in Contractor ARR to $4.9m, another record half Pipeline conversion o new Contractors signed in H1FY24, driven by growing momentum in 19 the mining & resources sector o First international custome
Slide 11: Monthly recurring revenue momentum
Monthly recurring revenue momentum Contractor MRR has almost quadrupled over the last three years and continues to accelerate Contractor MRR’ ($‘000) , 8426 $172 $115 DEC-20 MAR-21 JUN-21 SEP-21 DEC-21 MAR-22 JUN-22 SEP-22 DEC-22 MAR-23 JUN-23 SEP-23 DEC-23 f li ellx 1, Contractor MRR represents the
Slide 12: Improving operating cost efficiency
Improving operating cost efficiency Significant improvement in operating costs as operating leverage builds Employee benefits (% of revenue) 153% 121% H1FY23 H1FY24 Employee benefits declined significantly relative to pcp, despite increasing by 5% on an absolute basis, highlighting an optimised empl
Slide 13: Summary H1 FY24 results
Summary H1 FY24 results H1FY24 H1FY23 ($000) (ooo) _ Change (%) REVENUE Contractor revenue 2,216 1,453 53% Vendor revenue 1,006 920 9% Other income 57 96 (41%) TOTAL REVENUE 3,278 2,469 33% OPERATING EXPENSES Employee benefits (3,976) (3,776) 5% Subscriptions (521) (361) 44% Contractor expenses (453
Slide 14: Positive cashflow trajectory
Positive cashflow trajectory $1.7m reduction in net operating cash outflows on H1 FY23 Net operating cashflow (Sm) H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 Q1FY25 Cash flow trajectory demonstrates continued improvement in performance and pathway to achieiving cashflow breakeven in Q1FY25 Targeting op
Slide 15: Growth strategy
Growth strategy @ Large domestic and international Contractor pipeline and expansion into adjacent sectors @ Capitalise on expansion opportunities with existing customers © Unlock the value of Felix’s Vendor Marketplace @ Strategic platform development felix 15
Slide 16: Focus on pipeline conversion
® Focus on pipeline conversion $10m+ ARR pipeline focused on high value sectors and domestic customers with demonstrated value proposition Contractor pipeline ARR by sector (%) Other, 4% Government, 0% Real Estate, 6% Utility, 7% Mining & Resources Infrastructure, 47% Diversified pipeline across var
Slide 17: Penetration of adjacent sectors
® Penetration of adjacent sectors Leveraging success in initial target sectors to drive traction in high value adjacent sectors Continued focus on and traction Broad applicability of platform validated by traction in across initial target sectors adjacent sectors Government & Infrastructure Engineer
Slide 18: Land and expand opportunity
Land and expand opportunity Opportunities to generate high margin / low CAC revenue from existing customers c) ° aes" Demonstrated ability to generate revenue from o-@)-0 existing customers through: x Upselling to large parent organisations and rolling Felix out across multiple subsidiaries Scale (e
Slide 19: International expansion
@ International expansion Targeted and opportunistic strategy © Capital-light international expansion strategy to leverage opportunities to upsell into large international parent organisations of Felix’s existing customer base o International opportunities sourced through InEight partnership provide
Slide 20: Vendor Marketplace monetisation
® Vendor Marketplace monetisation Contractor-led strategy accelerating Vendor Marketplace take-up as new Contractors mandate usage of Felix across respective Vendors Each Contractor therefore contributes to building the Vendor Marketplace at no direct acquisition cost to Felix 14% increase of Vendor
Slide 21: Strategic platform development
® Strategic platform development Investment to expand markets and enhance platform value G—P Current focus v Data compliance certifications for US and Europe v Deployment of Al-powered document information extraction and validation to provide significant operational and strategic benefits for Vendor
Slide 22: Outlook
Outlook felix 22
Slide 23: Progress against FY24 priorities
Progress against FY24 priorities Clear execution against strategic priorities as Felix approaches cashflow inflection point / Contractor Growth Accelerate Contractor revenue growth by converting the strong and growing pipeline of domestic and international opportunities S4.9m Contractor ARR +55% on
Slide 24: Additional information
Additional information felix 24
Slide 25: Favourable industry backdrop
Favourable industry backdrop Structural tailwinds support long-term growth Compliance Increasing legislative requirements, such as the Modern Slavery Act 2019, and supply chain complexity create significant risk for Contractors felix % ESG Contractors are pursuing initiatives to improve ESG performa
Slide 26: Platform engagement metrics
Platform engagement metrics Engagement across key platform metrics reflects Felix becoming entrenched in Contractor operations Active Projects +52% onpep ™ International 8531 @ Australian based 679 542 268 176 H1 H2 H1 H2 H1 FY22 FY22 FY23 FY23 FY24 Rapid penetration of platform across Contractor pr
Slide 27: Corporate Overview
Corporate Overview Share price performance (last 6 months) Substantial shareholders $0.28 $0.24 $0.20 $0.16 $0.12 $0.08 $0.04 s Aug-23, Sep-23, Oct-23, Nov-23 Dec-23 \e FELIX — erase sorceress Jan-24 David Williams 14.4% Perennial Value Management 12.3% Thorney Investment Group 8.0% Salter Brothers
Slide 28: Board and Management
Board and Management i ~30 years’ experience in Government including former Michael Bushby Chief Executive of Roads & Traffic Authority in NSW = Senior experience in the transport infrastructure sector Previous Chairman of transport technology company EROAD Ltd (NZX:ERD) and previous Board member an
Slide 29: Disclaimer
Disclaimer The information in this presentation does not constitute personal investment advice. The presentation is not intended to be comprehensive or provide information required by investorsto make an informed decision on any investment in Felix Group Holdings Limited ACN 159 858 509 (Company). I