Felix Group Holdings Ltd. · ASX:FLX
Felix — H1 FY23 Earnings Presentation
27 slides from Felix's earnings presentation, Feb 27, 2023
Slide 1: H1 FY23 Results Presentation
H1 FY23 Results Presentation 27 February 2023 Felix Group Holdings Ltd ACN 159 858 509 felix.net
Slide 2: Contents
Contents Overview 3 H1 FY23 highlights and results 8 Growth strategy 14 Outlook 21 Additional information 24 Felix –- Investor H1 FY23 Presentation
Slide 3: Felix snapshot
Felix snapshot Leading procurement management and Vendor Marketplace platform Established procurement platform linking Contractors and Vendors, digitising and automating complex supply chains Trusted by Tier 1 Contractors to manage risk, increase productivity and minimise spend leakage across the pr
Slide 4: Supply chain complexity and compliance
Construction industry is ripe for disruption Felix is capitalising on a significant digital disruption opportunity across the construction industry Supply chain Transparency Siloed critical Manual complexity and and oversight information processes compliance Significant reliance by Contractors Lack
Slide 5: Innovative platform connecting Contractors and Vendors
Innovative platform connecting Felix connects Contractors and Vendors, digitising and automating critical procurement processes Contractors and Vendors Vendors Contractors (e.g. Boral) are contracted to deliver (e.g. CIMIC) engage a supply chain of specific works or supply materials third-party Vend
Slide 6: Established platform connecting industry players
Established platform connecting Felix enables Contractors and Vendors to efficiently find, manage and engage each industry players other Contractor modules Vendor modules Vendor Sourcing Procurement Contracts Vendor Vendor Wallet & Management Schedule Marketplace Passport Seamlessly manages all tier
Slide 7: Highly strategic leading Contractors
Highly strategic leading Contractors Tier 1 and leading Contractors trust Felix to automate and digitise high risk procurement supply chains Felix –- Investor H1 FY23 Presentation 7
Slide 8: H1 FY23 highlights
H1 FY23 highlights Felix –- Investor H1 FY23 Presentation 8
Slide 9: H1 FY23 standout sales momentum
H1 FY23 Standout sales momentum and record number of expansion deals signed $ 4.9 m $ 3.2 m $ 255 k 43 Group ARR Contractor Contracted ARR1 Contractor MRR2 Tier 1 and leading Contractors +16% on H1 FY22 +34% on H1 FY22 +49% on Jun-22 +8% on FY22 5 New Contractors signed 8 Expansion deals signed 79.3
Slide 10: Group ARR
Group ARR Group ARR breakdown Focused on driving Contractor ARR as priority: Contractor license fees represent high margin opportunity relative to current Vendor ARR High strategic value placed on Contractors given onboarding of their respective third-party Vendors at no acquisition cost to Felix Hi
Slide 11: Monthly recurring revenue momentum
Monthly recurring revenue Contractor MRR growth providing further platform validation momentum Contractor MRR1 ($‘000) 6.1% CMGR 2 (Jun-19 to Dec-22) 255 184 172 135 115 91 76 21 Jun 19 Dec 19 Jun 20 Dec 20 Jun 21 Dec 21 Jun 22 Dec 22 1 Contractor MRR represents the monthly recurring revenue as at m
Slide 12: Platform engagement metrics
Platform engagement metrics Engagement across key platform metrics reflects Felix becoming entrenched in Contractor operations Active Active Compliance Requests for Contractor User Projects Documents Quotations (RFQ) Accounts +208% +58% +140% +74% 109,908 542 7,502 5,751 81,868 5,866 69,701 4,492 26
Slide 13: Summary H1 FY23 financials
Summary H1 FY23 financials H1 FY23 H1 FY22 Change 1 Strong growth in Contractor revenue driven by five new contract wins and ($000) ($000) (%) a record eight expansion deals signed during H1 FY23. Note this figure excludes the BMD Group and Laing O‘Rourke enterprise contracts signed REVENUE subseque
Slide 14: Growth Strategy
Growth Strategy Large Contractor pipeline and expansion into adjacent sectors Capitalise on expansion opportunities within existing customers Focus on targeted international expansion Unlock the value of Felix’s Vendor Marketplace Strategic platform development Felix - Investor Presentation 14
Slide 15: Large Contractor Pipeline
Large Contractor Pipeline Growth potential underpinned by validated platform and significant Contractor pipeline, further supported by InEight partnership Conversion approach and focus: ~2,550 ↘ Build on strong sales and expansion ~850 Potential momentum from H1 FY23 to continue InEight Opportunitie
Slide 16: Penetration of new high value sectors
Penetration of new high value sectors Strong track-record in existing high value sectors, supported by industry tailwinds, fueling growth opportunity ↘ Continued focus on and traction ↘ Cornerstone customer wins and early across initial target sectors traction in adjacent sectors highlight broad app
Slide 17: Land and expand opportunity
Land and expand opportunity Compelling module suite unlocks further high margin / low CAC revenue opportunity within existing customers ~50% Of existing customers licence 2 Land Expand Scale of Felix’s 4 modules 24 Single module, project or small Multiple projects, additional Enterprise agreement, l
Slide 18: International expansion
International expansion Targeted and capital-light expansion strategy Opportunity in target international markets ↗ Near-term focus on growing ANZ Contractor base, while partnering in key international markets to expand Felix‘s global market opportunity ↗ Flexible platform and common Contractor proc
Slide 19: Vendor Marketplace monetisation
Vendor Marketplace monetisation Long-term growth underpinned by significant opportunity to unlock the value of the Vendor Marketplace Vendors in the Vendor Marketplace ↗ Contractor-led strategy is accelerating the scale of the Vendor Marketplace as new Contractors mandate 79,293 usage of Felix and o
Slide 20: Strategic platform development
Strategic platform development Investment to expand markets, unlock the value of the InEight partnership and enhance platform value Current Focus 12 months 12 months + A rchitecture updates to facilitate ↗ I ntegrated ecosystem including an ↗ V endor modules, including Compliance local hosting in ne
Slide 21: Outlook
Outlook Felix -– Investor H1 FY23 Presentation 21
Slide 22: 2023 Priorities
2023 Priorities Scale Contractor revenue Focus on near-term high value Contractor opportunities in the pipeline and leverage existing customer relationships to expand accounts Secure first international customer Deliver first Contractor win in targeted international markets Unlock value of InEight p
Slide 23: Favourable industry backdrop
Favourable industry backdrop Structural tailwinds support long-term growth Compliance ESG & CSR Digitisation Infrastructure spending Increasing legislative Contractors are pursuing initiatives Errors, delays, disputes and Government initiatives to stimulate requirements, like the Modern to improve E
Slide 24: Additional Information
Additional Information Felix –- Investor H1 FY23 Presentation 24
Slide 25: Corporate Overview
Corporate Overview Share price performance (Last 6 Months) Substantial Shareholders David Williams 14.4% Thorney Investment Group 9.1% $0.22 Salter Brothers Emerging Companies 9.0% George Rolleston (NED) 6.9% Mike Davis (Co-Founder & CEO) 6.4% $0.19 and Michael Trusler (Co-Founder & NED) Perennial V
Slide 26: 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 27: 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