Kainos Group Plc · LSE:KNOS
Kainos — FY2021 Earnings Presentation
22 slides from Kainos's earnings presentation, May 24, 2021
Slide 1: Full Year Results
Full Year Results 12 months ended 31st March 2021 Brendan Mooney (CEO) and Richard McCann (CFO) 24 May 2021
Slide 2: Highlights
Highlights A very strong performance in 2021 Very strong performance reflecting sector demand, customer trust and our REVENUE (1) +31% dedicated people • Revenue, profit and bookings all showing growth £235m ADJUSTED PROFIT (2) +124% Our continued focus on revenue diversification has created a robus
Slide 3: Business Overview
Business Overview Long-term, strong revenue growth trends in both Digital Services and our Workday Practice DIGITAL SERVICES WORKDAY PRACTICE £162m £73m £117m £123m £56m £69m £75m £34m £22m £15m 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 • The full lifecycle development and support of • We ar
Slide 4: Financial Summary
Financial Summary An established track record of high growth, high margin performance A strong performance, representing the eleventh consecutive year of revenue REVENUE and adjusted pre-tax profit growth £240m H1 Revenue H2 Revenue Five-year (2017-2021) revenue CAGR of 30% £180m £128m £92m £120m On
Slide 5: Our Responsibilities
Our Responsibilities Being responsible towards our people, our customers, our communities and our planet OUR GOALS OUR PROGRESS Reducing our climate impact and Carbon Neutral in 2021, offsetting full Scope 1,2 & 3 emissions helping others achieve their low • On track to achieve Carbon Net Zero by 20
Slide 6: Our People
Our People We continue to build an exceptionally talented and engaged workforce PEOPLE +18% COMMENTARY GLOBAL LOCATIONS 2,024 An extraordinary performance by everyone in Kainos has delivered a very strong business performance 341 142 With people based in 16 countries, we GROWTH TREND are growing Mai
Slide 7: Our Customers
Our Customers Delivering value to our clients drives long-term relationships £250m REVENUE BY CUSTOMER TYPE CUSTOMER RETENTION Recurring Customers £35m New client acquisition unlocks £200m Repeat Customers New Customers multi-year revenue streams. £32m £24m Revenue from clients acquired pre-2015 £15
Slide 8: Business Balance
Business Balance We have made excellent progress in building balance into our revenue streams GROUP REVENUES BY SECTOR GROUP INTERNATIONAL REVENUES (6) Public Sector Rest of World Commercial Sector £48m Central Europe Healthcare sector North America £20m £23m £21m £81m £63m £17m £40m £15m £14m £38m
Slide 9: Divisional Performance
Divisional Performance
Slide 10: Digital Services
Digital Services Very strong revenue growth with sales slightly decreased due to pandemic disruption REVENUE +32% COMMENTARY ADDRESSABLE MARKET SIZE Very strong revenue performance delivered • Slight decrease in bookings and backlog as normal £1,753m UK PUBLIC SECTOR 2021 SPEND(7) £162m signing cycl
Slide 11: Digital Services: Customer Stories
Digital Services: Customer Stories We have established a clear reputation for delivering value, at scale and at pace NHS ENGLAND AND NHS IMPROVEMENT CUSTOMERS Support for national video Live Ops and Cloud support consultation service for Attend Anywhere service 170 NHS trusts across 3 million video
Slide 12: Workday Practice
Workday Practice A very strong revenue performance and a confident outlook REVENUE +30% COMMENTARY CUSTOMERS Very strong business performance • Performance reflects a strong return to growth £73m £56m following some early pandemic-related delays £22m £34m • Continued backlog growth, underpinning fut
Slide 13: Workday Services
Workday Services We are one of the most experienced participants in the Workday partner ecosystem REVENUE +32% COMMENTARY ADDRESSABLE MARKET A strong performance across all key metrics • Overall revenue growth of 32% (14% organic) £751m 2022 GLOBAL SERVICES FORECAST (8) £37m £49m • High activity lev
Slide 14: Smart for Workday
Smart for Workday Smart is the leading automated testing platform for Workday REVENUE +27% COMMENTARY ADDRESSABLE MARKET £384m SAAS Subscriptions SAAS Services Another very strong performance • Revenue growth of 27% to £24m (2020: £19m), which includes £3m of professional services 2021 ESTIMATED GLO
Slide 15: Workday Practice: Customer Stories
Workday Practice: Customer Stories. We are trusted by our customers to launch, test, expand and safeguard their Workday system. BP CHENMED TERANET ENERCITY Global energy Leading primary Electronic land reg & Top 10 municipal company care provider in US commerce leaders utilities in Germany 70,000+ p
Slide 16: Financial Performance
Financial Performance
Slide 17: Segmental Reporting
Segmental Reporting Digital Services: Digital Services • Varied revenue growth depending on sector. 2020 2021 Change £m • Public: 18%. • Commercial: 3%. Revenue 122.5 161.6 32% • Healthcare: 111%. Gross profit 48.9 72.0 47% • Gross Margin increased by 5%. Gross profit margin 40% 45% 5% • Covid impac
Slide 18: Group Income Statement
Group Income Statement Group position INCOME STATEMENT • Revenue growth 32%. • Contribution growth 63%. £m 2020 2021 Change • Central overheads decreased 14%. Revenue 178.8 234.7 31% • Covid impact – travel, training, facilities. Gross profit 84.0 118.3 41% Direct expenses (38.2) (43.8) 15% • Adjust
Slide 19: Balance Sheet and Cashflow
Balance Sheet and Cashflow Balance Sheet: BALANCE SHEET • Fixed assets and investments As at 31 March (£m) 2020 2021 • IT, office equipment, investments etc. £3.9m (2020: £3.4m). Fixed assets and investments 15.3 15.4 • IFRS16 leases capitalised £3.9m (2020: £4.5m). Goodwill and Intangible assets 7.
Slide 20: Looking Ahead
Looking Ahead
Slide 21: Summary and Outlook
Summary and Outlook We have a strong position in fast-growing, international markets UK UK PUBLIC DIGITAL SERVICES SECTOR COMMERCIAL INTERNATIONAL SECTOR NORTH WORKDAY INC SMART CLIENT GEOGRAPHIC WORKDAY SERVICES GROWTH CONVERSION EXPANSION AMERICAN GROWTH WORKDAY INC MARKET ADDITIONAL SMART CLIENT
Slide 22: 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