Kainos Group Plc · LSE:KNOS
Kainos — FY2023 Earnings Presentation
24 slides from Kainos's earnings presentation, May 22, 2023
Slide 1: Full Year Results
Full Year Results 12 months ended 31 March 2023 Brendan Mooney (CEO) Richard McCann (CFO) 22 May 2023
Slide 2: Safe harbour statement
Safe harbour 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, indebtedness, finan
Slide 3: Contents
Contents 1. Business Overview 2. Divisional Performance 3. Financial Performance 4. Looking Ahead For more information visit kainos.com/investor-relations 3
Slide 4: Business Overview
Business Overview kaines’
Slide 5: Business Overview
Business Overview We have an excellent position in long-term, high-growth markets MARKET CAGR MARKET CAGR MARKET CAGR £2.7b 18% £1.1b 47% £0.6b 41% £117m £123m £162m £200m £224m £23m £37m £49m £71m £106m £11m £19m £24m £32m £45m FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 F
Slide 6: Expertise at a global scale
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Slide 7: Highlights
Highlights Continued growth with increasing Workday opportunity and international scale Services +49% • Strong demand in public • Increased investment in FY23 £106m FY22 £71m and commercial sectors Workday Products driving Revenue(1) growth as we approach • Workday Phase 1 Partner the mid-point of o
Slide 8: Our people
Our people We are building an exceptionally talented and engaged workforce Reimagining our offices for hybrid working Creating social events in our offices Focused on employee engagement People 22 Global Locations Engagement +11% 88% Employee Retention FY19 1,470 FY20 1,715 UK & Ireland 2,130 +10% #
Slide 9: Our Customers
Our Customers Delivering value to our clients drives long-term relationships Existing Clie nts £37m Commerc ial Se ctor £50m North America New Clients Public Sector Central Europe (1) He althcare £37m £35m £68m £35m £48m £138m £28m £24m £23m £18m £21m £111m £21m £106m £92m £19m £90m £13m £133m £155m
Slide 10: Our responsibilities
Our responsibilities Being responsible towards our people, customers, communities and planet … Inspire group celebrate IWD23 Tech Outreach 2023 Climate Action Gender Equality Quality Education Reducing our Promoting gender equity, Increasing employment potential climate impact equality and gender ri
Slide 11: Divisional Performance
Divisional Performance kaines’
Slide 12: Digital Services
Digital Services Strong revenue growth Revenue(1) Bookings Backlog with significant pipeline +12% +11% +6% and backlog FY23: £224m FY23: £238m FY23: £141m FY22: £200m FY22: £215m FY22: £133m Revenue trend H1 / H2 Public sector / +26% to £137m Commitment to existing digital programmes FY19 £52m £66m
Slide 13: Future Theory Test
Future Theory Test One of the most complex digital transformations in UK Government “This was agile delivery at its best. An exemplar in collaboration to transform a highly complex service and delivering our strategy of keeping Britain’s roads safe.” Alex Fiddes, DVSA Head of Digital Operations A si
Slide 14: Our Artificial Intelligence Projects
Our Artificial Intelligence Projects The Journey 2016 Machine Learning and AI identified as a research topic for our Innovation Team 2017 Dedicated AI Team formed to explore interest with clients 2019 Data & AI practice launched to support our clients 2023 Over 120 professionals with revenues in exc
Slide 15: Workday Services
Workday Services Exceptional growth in Revenue(1) Bookings(2) Backlog revenue, bookings and +49% +56% +42% backlog and appointed FY23: £106m FY23: £122m FY23: £73m Phase 1 partner for US FY22: £71m FY22: £78m FY22: £51m Revenue trend H1 / H2 Americas / +84% to £56m FY19 £10m £13m £23m Excellent grow
Slide 16: HR & Finance Transformation
HR & Finance Transformation “We knew we could rely on Kainos. We worked together to make this successful and feel like a one-team approach.” Gene Peskens, the City’s Chief Financial Officer and Co-Executive Sponsor Leduc Alberta is a growing, dynamic city of 34,000 citizens but relied on disparate f
Slide 17: Workday Products
Workday Products Exceptional growth in revenue, ARR and backlog as Revenue(1) ARR(2) Backlog we increase investment and +40% +40% +44% expand our product portfolio FY23: £45m FY22: £32m FY23: £48m FY22: £34m FY23: £109m FY22: £76m on our £100m ARR journey Revenue trend H1 / H2 Increased Investment /
Slide 18: Data Privacy with Smart Shield
Data Privacy with Smart Shield “Kainos has been a tremendous Smart Shield partner. It’s been the easiest and simplest implementation I’ve done.” Carolyn Kelfer Director - Financial Systems, Match Group With hundreds of millions of users globally, Match Group have been bringing people together and re
Slide 19: Financial Performance
Financial Performance kaines’
Slide 20: Group Income Statement
Group Income Statement Digital Services: Income Statement • Revenue growth varies by sector • Public: +26% £m FY 23 FY 22 Change • Commercial: +51% Revenue 374.8 302.6 +24% • Healthcare: -25% • Gross Margin reduced slightly to 38.1% (FY22: 38.7%) – 2 extra UK holidays Gross profit 177.2 140.2 +26% W
Slide 21: Balance Sheet and Cashflow
Balance Sheet and Cashflow Balance Sheet: Balance Sheet Fixed assets and investments As at 31 Mar (£m) FY 23 FY 22 Fixed assets and investments 17.3 19.4 • IT, office equipment, investments etc. £7.7m (FY 22: £8.2m) Goodwill and Intangible assets 22.8 24.8 • IFRS16 leases capitalised £1.3m (FY 22: £
Slide 22: Looking Ahead
Looking Ahead
Slide 23: Outlook
Outlook We have strong positions in fast-growing, resilient, international markets Digital Services Workday Services Workday Products UK leader in delivering Continue to outpace Achieve £100m of SaaS digital transformation underlying market growth recurring revenue by 2026 Market Drivers Market Driv
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