Activeops Plc · LSE:AOM
Activeops — H1 FY23 Earnings Presentation
34 slides from Activeops's earnings presentation, November 2022
Slide 1: Interim Results to 30 September 2022 (H1 23)
ACTIVE Interim Results to 30 September 2022 (H1 23) Presented by
Slide 2: Agenda
Agenda Introduction to ActiveOps & overview of the ye: ~~» Richard Jeffery, CEO - Patrick Deller, CFO ~~~ Strategy & Opportunity ~~» Richard Jeffery, CEO 2 ACTIVEOPS
Slide 3: A global leader in Management Process Automation (MPA)
A global leader in Management Process Automation (MPA) Global Reach Blue chip customer base Strong SaaS metrics 40+ countries in which software is used 7 offices, 7 countries 180 employees . . 80+ global, enterprise customers with £22.1m Saas ARR substantial land & expand opportunity 14% improvement
Slide 4: We help operations teams release capacity
We help operations on teams teed SUAS, within Our software & approach enables customers to release capacity 44% % Reduction in staff attrition Positive employee morale Leading to -20% 30,000+ Decrease in cost per Utilisation Hours in resource sharing standard hour 87 to 30 days -82% 8.8 to 74.81 Red
Slide 5: ActiveOps Solutions
ActiveOps Solutions ControliQ CaseworkiQ Workforce optimization Workforce optimization for transactional work for case-based work 0 Integrate with existing applications to provide a single source of work and capacity data o Provide complete visibility of work, use of time and performance 0° Enables
Slide 6: Expanding product portfolio increases addressable market within existing customer base to £90m
Expanding product portfolio increases addressable market within our existing customer base to £90m © Previously £70m directly addressable, that has now increased to £90m today through product expansion ene o Considerable expansion opportunities for upsell ControliQ within existing customers remain N
Slide 7: H1 FY23: Strong financial performance - Continued growth
H1 FY23: Strong financial performance - Continued growth +14% £14m £25.0m 201m Strong SaaS performance fam £20.0m £10m £15.0m 7 3 gs 5 > 3 3 = e6m New Customer s £10.01 2 ™ logos £4m £5.0m £2m £0m £0.0m H121 H122 123 Significant mmm S225 Revenue mm Training & Implementation and Other maaan expansion
Slide 8: Progress with strategic goals
Progress with strategic goals @ Business growth : Innovation Partnerships, marketing and sales o Extended relationship with Microsoft o Substantial expansion deals o Successful launch and first with existing customers across : customer for CaseworkiQ © Now integrated with Teams all territories : : o
Slide 9: Financial Review
AcTiveOps Financial Review
Slide 10: Strength of SaaS model
Strength of SaaS model Annual Recurring Revenue £22.1m +12% (constant currency 7%) Net Revenue Retention (Last 12 months) 109% (FY22: 102%) © Improved retention since March 22 Expansion Nine out of top ten accounts expanded ° Allregions o ControliQ and WorkiQ rollouts o Top 40 accounts: o Expanded A
Slide 11: YE March (£M) H1 FY22 H1 FY23
YE 31 March (£M) H1 FY22 H1 FY23 SaaS Revenue £9.6m £10.9m T&I Revenue £1.9m £1.4m Group Revenue £11.5m £12.3m Cost of Sales (£2.3m) (£2.3m) Gross Profit £9.2m £10.0m o Gross Margin % 80% 81% Operating Expenses* (£9.3m) (£9.7m) Forex (£0.0m) £0.1m o Adj EBITDA (£0.2m) £0.5m o EBITDA Margin % (1%) 4%
Slide 12: EBITDA — breakeven
EBITDA — breakeven £1.5m a Y On target to generate positive run rate adjusted fom aut “comm EBITDA at the end of FY23 co.om | (42m) £1.41m o Positive Forex impact due to (£0.5m) € (€0.8m) USD, CAD & AUD cash on balance sheet (€1.0m) (£1.5m) AdjEBITDAH1 SaaSgrowth T&l Revenue Sales & Customer Product
Slide 13: Cashflow
Cashflow £16.0m £14.0m £12.0m £10.0m £8.0m £6.0m £4,0m £2.0m £0.0m Cash @ 31st March 22 £0.5m Adj EBITDA * Cash from Continuing Operations Capex (£0.0m) (€0.1m) pl £11.0m Interest Tax Forex & Lease Cash @ 30th Liabilities September 22 13 Operating Cashflow (£1.5m) in line with prior year Seasonal bi
Slide 14: Strategy and Opportunity
ACTIVEOPS Strategy and Opportunity
Slide 15: The world of work is not getting any simpler
The world of work is not getting any simpler 6060 Operational Skills Productivity Hybrid risk development management working Potential recession only increasing the pressure to do more with less 15 ACTIVEOPS
Slide 16: Growth in ActiveOps Software License Numbers in 2008-2010 Financial Crisis
10000 15000 20000 25000 0 5000 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 in 2008-2010 Financial Crisis Mar-10 May-10 Jul-10 Growth in ActiveOps Software License Numbers Sep-10 Nov-10 o o o o o
Slide 17: In development
In development In development In development
Slide 18: Introducing: Smart planning
Introducing: Smart planning Launching soon / Jan 23 co Increasing the attractiveness of ControliQ Applicable across ControliQ customer base Customer Experienc °e Summary Resource
Slide 19: Proven, powerful ROI
Proven, powerful ROI Based on a sample of 6517 tasks in 618 teams 54% || 80% | | 500... of tasks are planned of tasks planned Saving per year to within 1% more accurately per team Over £1m saving per 1,000 FTE “Automated forecasting will free up time for our team leaders to focus on other things...”
Slide 20: FY23 priorities
FY23 priorities Convert our increased Launch Smart Planning Continued careful cost immediate addressable and continue to develop management, driving the opportunity further Al capabilities business towards profitable EBITDA run rate 20 ACTIVEOPS
Slide 21: Confident outlook
Confident outlook H2 Trading and Outlook ° Positive start to H2 o Record T&l sale 0 Significant customer win © CaseworkiQ pipeline growing strongly o Investment targeting expanded product offering o On target to generate positive run-rate EBITDA at the end of the current financial year Confident in
Slide 22: Questions?
A Questions?
Slide 23: Appendix
ACTIVEOPS Appendix
Slide 24: South African Bank case study
Total Login time (2) = Avag 2028 South African Bank case study ControliQ = a] = = With ControliQ: Worki@Q identified numerous teams were working significantly beyond expected hours 1 2% Improvement in productivity 30% Reduction in poorly used © capacity . Uplift in Reduced Supported colleagues Balan
Slide 25: UK high street bank
UK high street bank CaseworkiQ yr ControliQ WorkiQ - a] = Implemented ControliQ in 2016: 2022 first major adopter of CaseworkiQ ro) . - roy . a 12 % Improvement in productivity (UK) 21 % Improvement in casework productivity re) Improvement in productivity (offshore) re) an 20% £0.6m (30%) unit in ar
Slide 26: CAPACITY22
CAPACITY22 ActiveOps Conference We've seen our metrics moving favourably...in 2018 our NPS score was 8.8 and our latest NPS was tracking at 74.81. So it's beena massive improvement ... turn around times have reduced. SLA's are tracking either at target or above and another big metric for us is clien
Slide 27: Committed to ESG
Committed to ESG Our purpose is to simplify running operations Simplifying how organisations’ control operational performance has a transformative impact on organisational success, the wellbeing of employees and the outcomes for customers \d Environmental (Planet) «&~” The ESG committee determined t
Slide 28: Our products: WorkiQ
Our products: WorkiQ A fair method of measurement Wellbeing Time and application usage Work outcomes Location ARWNS Example use case: North American Bank identifies unsustainable WorkiQ - Analysis roger Dashboard | Time By Ceteoor |/ Gomoarsons(m Werkcroup) | individual Pertarmance | Workarcup Histo
Slide 29: Our products: ControliQ
Our products: ControliQ Complete view of enterprise performance 1. Act with confidence using real time operations data 2. Identify opportunities and risks with fast, accurate planning Rw Better performance Example use case: Major insurer increases productivity by 19%, avoiding all expected hiring an
Slide 30: Our products: CaseworkiQ
Our products: | Ca sewo rki Q AcTiveOps Progress Tracker T) Work Effort / Service Control Chart - View By Category ® ° 3 The smart way to manage case work and teams Complements existing case management systems Visibility across all cases, SLAs and progress Case Age Predictability of resources requir
Slide 31: o o o
o o o o FO of various international divisions over a period of 12 years o o o o o o o o o
Slide 32: Productivity on a daily basis (%)
Productivity on a daily basis (%) Reduced volatility and eliminating silos delivers capacity and control Daily performance varies Daily performance varies Daily performance varies 140 ‘on average +/-20% ‘on average +/-10% ‘on average +/-5% 130 120 no 100 -LAR---Wy- WV _ yy WWW Y= 90 <| t TE --4, > 1
Slide 33: Balance sheet (£M) Mar-22 Sep-22
(£M) Mar-22 Sep-22 Non-Current Assets £6.5m £6.8m o Trade and Other Receivables £3.7m £3.9m Cash and Cash Equivalents £13.8m £11.0m o Corporation Tax Recoverable (£0.0m) (£0.0m) Total Current Assets £17.5m £14.9m o Total Assets £24.0m £21.7m Trade and Other Payables (£2.1m) (£0.8m) o Accruals and De
Slide 34: Confidential 34 ACTIVEOPS
Confidential 34 ACTIVEOPS