Eagle Eye Solutions Group Plc · LSE:EYE
Eagle Eye Solutions — FY2020 Earnings Presentation
32 slides from Eagle Eye Solutions's earnings presentation, Sep 21, 2020
Slide 1: Successful international expansion, significant growth in adjusted EBITDA and revenue
Successful international expansion, significant growth in adjusted EBITDA and revenue
Slide 2: Tried, tested and proven
eagleeye Tried, tested and proven The best-in-class loyalty and promotions SaaS platform 200m * for leading omnichannel retailers globally . personalised offers weekly Loblaws soxteastem ‘ASDA aa a Walmart 2.1bn FY20 AIR —r volumes e || M&S D) pets vibe: wangyoule ® Mitchells © ra e & Butlers GREENE
Slide 3: What do the world's largest retailers need?
eagleeye What do the world’s largest retailers need? Data management Transactional capability store advanceo custom transactions
Slide 4: Executive Summary - excellent progress against our strategic objectives
eagleeye Executive Summary - ‘excellent progress against our strategic objectives” * Strong trading period - delivering revenue and adj. EBITDA growth * Resilience and agility during COVID-19 * Won and delivered for major clients: new territories include the US (largest global market) and New Zealan
Slide 5: COVID-19 resilience
eagleeye COVID-19 resilience Revenue impact of COVID-19 * Delivered H2 over H1 revenue growth * Impact on 10% of Group revenue prior to COV|D-19: Drop off in Brand and non-grocery revenue, * Revenue from grocery and digitally-engaged retailers remained strong * Continued to deliver significant proje
Slide 6: Group has emerged as a strengthened team
eagleeye Group has emerged as a strengthened team We continue to innovate to meet client needs We have set the goal of being a great place to work Passionately believe our values set us apart We recognise and reward people for their “purple” behaviour Increased communication through the year Fosteri
Slide 7: Large global markets with inherent growth, converting to digital
eagleeye Large global markets with inherent growth, converting to digital Pandemic has accelerated the drive to digital - Global eCommerce sales +28% in June 2020* Bricks and mortar retailers have struggled An omnichannel strategy is key to building resilience and maximising recovery Small increases
Slide 8: Financial update
eagleeye Financial update
Slide 9: Key KPIs
eagleeye Key KPIs Revenue growth to £20.4m (FY 19: £16.9m) Recurring revenue (FY 19: 71%) Adjusted EBITDA (FY 19: £0.7m) Churn (FY 19: 0.8%) Net cash; cash inflow of £2.8m (FY 19: outflow £1.6m) AIR redemption and interaction volumes increased to 2.1bn (FY 19: 0.9bn)
Slide 10: Revenue split by business model
eagleeye Revenue split by business model 25% growth in recurring revenue FY 20 FY 20 FY 19 FY 19 % of total % of total One off implementation | £5.5m 27% £4.9m 29% fees Recurring revenue: Licence fees £7.7m 38% £6.5m 38% Transaction fees £6.0m 29% £4.5m 27% SMS fees £1.2m 6% £1.0m 6% £20.4m £16.9m 1
Slide 11: Interaction and redemption volumes
eagleeye Interaction and redemption volumes * Overall AIR redemption and interaction volumes increased by 140% to 2.1bn in FY 20 (FY 19: 0.9bn) * Growth driven predominantly by loyalty transactions * Go-lives of Tier 1 customers, launching existing contracts, deepening and new wins all geographies *
Slide 12: FY20 - Income Statement
eagleeye FY20 - Income Statement * 21% revenue growth, delivering on our strategy. Despite COVID-19 impact. 3% half on half growth * 94% GM, lppt ahead of FY 19 + AIR GM maintained at 97% * £15.8m net operating expenses, 5% growth * £0.9m increase in staff costs * £0.3m increase in infrastructure co
Slide 13: Year on Year analysis
eagleeye Year on Year analysis * 73% continued high percentage of subscription and transactional revenue (FY 19: 71%) * Implementation revenue value represents key customers retaining professional services as well as new wins * Growth in all categories * 30% growth UK Tier 1 & International revenue
Slide 14: Net cash/(debt) bridge
eagleeye Net cash/(debt) bridge £2.8m cash inflow with c£2.0m COVID-19 benefit; (FY 19 £1.6m outflow) Operating cash inflow of £6.1m: EBITDA £3.3m, working cap inflow £2.6m, £0.2m overseas corporate tax payments , £0.4m R&D tax receipt £2.8m capex £2.2m capital expenditure on AIR, IFRS 15 contract c
Slide 15: Strategic update
eagleeye Strategic update
Slide 16: Strategic focus in the year
eagleeye Strategic focus in the year 1. To win new customers, transact through our platform, deepen with additional products from our portfolio 2. To develop new products to provide further upsell opportunities across our customer base and strengthen our competitive positioning 3. To enter new geogr
Slide 17: Delivering on our customer strategy
eagleeye Delivering on our customer strategy Win * Increased win rate both in the UK and in new geographies * |ncreased go live speed for Southeastern Grocers and The Warehouse Group Transact * Brand revenue impacted by COVID-19 but +26% to £0.8m (FY19: £0.7m) * Added over 1,000 hospitality venues i
Slide 18: Innovation to support the world's largest retailers
eagleeye Innovation to support the world’s largest retailers Better data - Analytics integration Additional channels - Message at Til! Personalised loyalty - Reward bank for exchange of points ESG - Loyalty points for charity donations Coalition schemes - |ntegrating B2B partners HOFF ¥ Coupons Loya
Slide 19: SY Text & Trace
SY Text & Trace Weekly Registrations eagleeye 19 Launch of Text & Trace Fancy a pint? You might need an app for that Rory Cellan-Jones Technology correspondent @BBCROLC! Marketing messages The simplest approach | came across was wise or text: from a company called Eagle Eye. © GREENE 1646~’ And it d
Slide 20: YourPret Barista - Digital Coffee Subscription
eagleeye 20 YourPret Barista - Digital Coffee Subscription PretaManger 2020. can | + DRET« 4 ‘} BUT-EIRST CORFEE, £20.00 YourPret Barista ‘YourPret Barista Subscriotion hocolets for £20 month and your rt AND THEN WELCOME TO YOURPRET bani SY Customer is targeted Customer enters personal Digita A Ad w
Slide 21: 10% OFF
image My Grocer Your voucher will expire soon… don’t miss your chance! 10% OFF NAME
Slide 22: Powerful collaborations to target US market
eagleeye Suppliers Partners Programs & Offers Powerful collaborations to target US market Combining these relationships with our own, direct marketing activities, we believe provides us with the right mix to capture more of what is the world’s largest promotions and loyalty market News America Marke
Slide 23: Better, Simpler, Cheaper
eagleeye Better, Simpler, Cheaper Agile methodology implemented across the business - facilitates faster decision making & swifter response to change Business is now split between functions that form the core ‘packbone’ and those that can be flexibly allocated with wins GCP migration: 140% growth in
Slide 24: Outlook
eagleeye Outlook
Slide 25: Outlook
eagleeye 25 Outlook Trading - positive start to the new year, in line with Board expectations Funding - position is comfortable with sufficient headroom to support existing growth plan Focus - capitalise on accelerated digital transformation in the retail sector, as well as sustain the momentum we h
Slide 26: Questions & Answers
eagleeye Questions & Answers
Slide 27: Our Board and Executive team
eagleeye 27 Our Board and Executive team <b & £ Malcolm Wall * Sir Terry Leahy * Bill Currie * Robert Senior* Chairman Non-Executive Director Non-Executive Director Non-Executive Director Tim Mason *a Steve Rothwell *» Lucy Sharman-Munday *a Al Hendersona David Aylmer « CEO CTO and Founder CFO cso c
Slide 28: Balance Sheet
eagleeye Balance Sheet £'000 Non-current assets Trade and other receivables Cash and cash equivalents Current liabilities Financial liabilities Non-current liabilities FY 20 7.727 4840 1,519 14,086 (7,879) (1,783) (9,662) FY 19 7,580 3,988 1,363 12,931 (4.874) (2,600) (1,137) (8.611) VAR 147 852 156
Slide 29: Cashflow
eagleeye Cashflow £'000 FY 20 FY 19 VAR % Movement in working capital 2.571 2.213 618% Net tax receipts 209 497 (288) (58)% Net operating cashflows 6.059, 1,569) 4,490 286% Capital expenditure (2,883) | (2,707) (176) % Lease payments (268) (313) 45 14% Issue of equity less interest (54) (209) 155 74
Slide 30: Share register
eagleeye Share register % Bill Currie 3,413,322 13.26% Sir Terry Leahy 2,420,970 9.41% Stonehage Fleming Investment Limited 2,063,001 8.02% Andrew Sutcliffe 2,032,158 7.90% Hargreave Hale Limited 1,679,667 6.53% Christopher Gorell Barnes 1,531,866 5.95% Steve Rothwell 1,511,672 5.87% Julian Reiter 1
Slide 31: How we make money
eagleeye How we make money SaaS business model 32 One off implementation fee Recurring licence fee for access to Eagle Eye AIR Transaction fees: per issuance X pence - linked to value and per redemption 3-5 times issuance or interaction fees (earn and burn of points) for loyalty services replaces ab
Slide 32: Illustrative contract lifecycle
eagleeye Illustrative contract lifecycle 1 Implementation periods based on complexity 2 Licence fees start at a reduced rate. Full rate from launch z Transaction growth with digital adoption and more use cases 4 On average customers adopt new services | year after launch 5 Opportunity - Brands to en
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