FINEOS Corporation Holdings Plc · ASX:FCL
FINEOS — Non-Deal Roadshow (November 2024)
31 slides from FINEOS's roadshow presentation, Nov 13, 2024
Slide 1: Investor roadshow: 5 years since IPO, ready for the future
For personal use only Investor roadshow 5 years since IPO, ready for the future Michael Kelly – Founder & CEO Ian Lynagh – CFO Eoin Kirwan – Chief Product Officer 13 November 2024 © FINEOS Corporation Ltd 1
Slide 2: Presenting today
Presenting today For personal use only Michael Kelly Ian Lynagh Eoin Kirwan Chief Executive Officer Chief Financial Officer Chief Product Officer © FINEOS Corporation Ltd 2
Slide 3: Agenda
Agenda 1 CEO business overview For personal use only 2 Product position, roadmap and sample demonstration 3 Financial update 4 Live customer and systems integrator discussion 5 Outlook – The next 3-5 years © FINEOS Corporation Ltd 3
Slide 4: CEO business overview
For personal use only CEO business overview 4
Slide 5: FINEOS Achievements since IPO – FINEOS Platform for Employee Benefits
FINEOS Achievements since IPO – FINEOS Platform for Employee Benefits FINANCIALS PRODUCT CUSTOMERS Market leading Core Systems vendor For personal use only FINEOS AdminSuite FINEOS AdminSuite at NYL-GBS Largest base of Employee Benefits clients. FINEOS Market ready and rounded out for groups of all
Slide 6: The FINEOS Playbook – A powerful culture with a singular focus
The FINEOS Playbook – A powerful culture with a singular focus For personal use only Vision A world where protection from illness, injury and loss is accessible to everyone FINEOS Mission “Global market leader in core systems for group and individual Life Accident and Health insurance on a single te
Slide 7: The Core Systems problem – Old technologies unfit for digital transformation
The Core Systems problem – Old technologies unfit for digital transformation For personal use only © FINEOS Corporation Ltd 7
Slide 8: The FINEOS Platform for Employee Benefits
The FINEOS Platform for Employee Benefits Meets the Challenge of Core, Digital and Data For personal use only Largest reference production NA client New York Life for Group, Voluntary & Absence with $4.1B+ Premium, 9 million Multiple clients chose the FINEOS customers - 6 Legacy systems replaced Cus
Slide 9: The FINEOS Platform – Purpose-built for Group, Voluntary & Absence
The FINEOS Platform – Purpose-built for Group, Voluntary & Absence Versus core systems adopted from other insurance domains Acquisitions Play For personal use only • Multi-Domain Focus • Made up of Legacy Parts • Fragmented and inflexible • Limited & Costly to Maintain Solution approaches Rules & To
Slide 10: Product position, roadmap and sample demonstration
For personal use only Product position, roadmap and sample demonstration 10
Slide 11: FINEOS Platform – years after IPO
FINEOS Platform (FINEOS AdminSuite & FINEOS Absence) – 5 years after IPO Capabilities added (selection) Member Billing Voluntary End-to-End State PFML Regulations Interactive Reporting For personal use only Cash & Accounts Receivable Policy Claim Accelerators Direct-to-Employer Market
Slide 12: FINEOS Platform – years after IPO: market reach, win ratios, value
FINEOS Platform (FINEOS AdminSuite & FINEOS Absence) – 5 years after IPO Expanded Market Reach Higher Win Ratios For personal use only • The largest and smallest carriers • Highly functional (demos / RFP checklists) • Jumbos to smallest groups • Quickly reflect each prospect’s business • Direct-
Slide 13: FINEOS Platform – Cloud adoption: stickiness and a widening moat
FINEOS Platform – Cloud adoption: stickiness and a widening moat ‘Life Event’ cases Payment volumes For personal use only Growing Case Load Growing Payments Volume Over 15 million cases of all types Over $30bn in aggregate, approaching $1bn per month 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024
Slide 14: Driving continuous platform efficiency gains
Driving continuous platform efficiency gains Focus on enhancing platform efficiency improvements Infrastructure costs / system workload For personal use only • Leaner infrastructure Dynamic scaling Greater usage of AWS-managed services Move to open source over commercial software AWS cost op
Slide 15: FINEOS Platform – Enables and accelerates an Insurer's AI journey
FINEOS Platform – Enables and accelerates an Insurer’s AI journey Insurer – Target AI use cases Solution: The FINEOS Platform Actionable Insights Where do insurers see opportunities FINEOS is both the source of truth and the place where insights are applied Embedded in FINEOS workflows For personal
Slide 16: Financial update
For personal use only 16 Financial update
Slide 17: FINEOS growth since IPO in August 2019
FINEOS growth since IPO in August 2019 Market growth ARR growth SaaS growth For personal use only •79% of global revenues from •210% growth in Subscription •88% of total revenues derived North America Fees from FINEOS Platform 2019 2024 1 2019 2024 1 2019 2024 1 5.5 1% 5% 4% 16.4 5.7 11.8 12% 8% 22.
Slide 18: Impact of Limelight acquisition & investment required to rewrite
Impact of Limelight acquisition & investment required to rewrite Limelight – Revenue and costs (€m) Limelight acquisition and turnaround For personal use only • Acquired to round out our quote to claim 12.3 end-to-end product suite 10.6 • Purchased during Covid - banker sale, 11.3 relied on analysts
Slide 19: Revenues, costs & ARR growth (including Limelight)
Revenues, costs & ARR growth (including Limelight) Core business is healthy and growing Group – Revenue and costs (€m) including the impact of Limelight • 3x growth in ARR due primarily to IDAM For personal use only (Integrated Disability & Absence 149.9 143.4 Management) product demand 139.3 140.2
Slide 20: Revenues, costs & ARR growth (excluding Limelight)
Revenues, costs & ARR growth (excluding Limelight) Core business is healthy and growing Group – Revenue and costs (€m) excluding the impact of Limelight • 3x growth in ARR due primarily to IDAM For personal use only (Integrated Disability & Absence 139.3 Management) product demand 134.2 134.2 128.0
Slide 21: FINEOS up-sell & cross-sell opportunities to existing FINEOS clients
FINEOS up-sell & cross-sell opportunities to existing FINEOS clients 1 Up-sell – Expand usage of a single core product Scaling on FINEOS IDAM - Case study ~ 0.5x to 2x New LoBs & Add-Ons For personal use only FINEOS client – Incremental subscription fees (U$000’s) Sell new lines of business to enabl
Slide 22: Client track record of continued investment in FINEOS
Majority of activity is with CIient track record of continued investment in FINEOS existing clients, with significant interactions and 1 repeat commitment / Product Subscriptions Subscription fees (by number of deals) endorsements Orders for incremental license coverage ranging from a 1H24 9 2H23 7
Slide 23: Live customer and systems integrator discussion
For personal use only Live customer and systems integrator discussion 23
Slide 24: Live customer and systems integrator discussion
Live customer and systems integrator discussion For personal use only Miloje Stevanovic Rima Safari SVP Digital Ventures and Transformation Partner • Leads the Product, Technology and Transformation strategy • Specialises in technology strategy and transformations for at unum insurance and financial
Slide 25: Outlook – The next 3-5 years
For personal use only Outlook – The next 3-5 years 25
Slide 26: Global market – Insurance premiums for Life, Health & Non-Life
Global market – Insurance premiums for Life, Health & Non-Life Global Life, Life Savings & Health premiums are Global premiums US$4,758b For personal use only Life US$6,782b Risk Non-Life Personal Lines Excluding Life Savings (pensions / wealth) 992 the combined premiums for Life Risk & 628 15% Heal
Slide 27: Significant growth opportunity for FINEOS in North America
Significant growth opportunity for FINEOS in North America Existing clients Total Employee Benefits Market (AM Best) • FINEOS penetration is at 10-15% For personal use only US$200b premium • Up-sell white space to expand lines of business supported • Cross-sell opportunity for FINEOS FINEOS Target M
Slide 28: FINEOS Platform for Employee Benefits – Positioned for growth
FINEOS Platform for Employee Benefits – Positioned for growth Purpose built maturing product Strong Customer Success Grow Industry Partners For personal use only • Market ready business capabilities • High C-Sat – driving loyalty, • 6 SI partnerships in place - over 200 advocacy & investment FINEOS
Slide 29: FINEOS target financial metrics within our current market (TAM)
FINEOS target financial metrics within our current market (TAM) Within 3-years Within 5-years For personal use only Subscription fees +65% of total revenues +75% of total revenues Gross margin 75% 80% EBITDA 25% 40% R&D as a % of 30% 25% revenue Cash Strong positive cash flows to fund organic growth
Slide 30: Disclaimer
Disclaimer This presentation has been prepared by FINEOS Corporation Holdings PLC (Company or FINEOS). By accessing or FINANCIAL INFORMATION attending this presentation, you acknowledge that you have read and understood the following statements. All financial values contained in this presentation ar
Slide 31: Thank You
For personal use only Thank You © FINEOS FINEOSCorporation CorporationLtd Ltd 31
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