FINEOS Corporation Holdings Plc · ASX:FCL
FINEOS — FY2020 Earnings Presentation
22 slides from FINEOS's earnings presentation, Aug 26, 2020
Slide 1: FY20 Results Announcement
For personal use only FY20 Results Announcement Michael Kelly, CEO Tom Wall, CFO 26 August 2020 © FINEOS CORPORATION
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only This presentation has been prepared by FINEOS Corporation Holdings PLC (Company or FINEOS). By accessing or attending this presentation, you acknowledge that you have read and understood the following statements. NO OFFER OF SECURITIES Nothing in
Slide 3: Presenting
Presenting For personal use only Michael Kelly Tom Wall Founder, Chief Executive Officer Chief Financial Officer Michael has more than two decades of Tom has over 30 years of industry senior management experience in the experience across the IT, financial insurance industry. services, distribution,
Slide 4: Agenda
FY20 Highlights FCL For personal use only Financial Performance FY21 Progress and Outlook Appendix 1 – Statutory Accounts © FINEOS CORPORATION
Slide 5: FY20 Highlights
01 For personal use only FY20 Highlights © FINEOS CORPORATION
Slide 6: FY20 Financial Highlights
FY20 Financial Highlights For personal use only Exceeded FY20 pro-forma prospectus forecasts and recent revenue guidance Revenue Subscription Pro forma EBITDA €87.8m Revenue €27.0m €15.7m vs prospectus €74.0m, up vs prospectus €28.8m vs prospectus €8.7m, up 80.6% 18.6% down 6.2% vs FY19 €8.4m up 88.
Slide 7: FY20 Operational Achievements
FY20 Operational Achievements For personal use only Largest U.S. client completes upgrade of FINEOS Claims Headcount up 31.8% >90% employee to the cloud on 30 June 2019 retention rate to 875 9 new name clients All staff working from 91% Product signed during FY20 home since March 2020 Consulting emp
Slide 8: FY20 Financial Performance
FY20 Financial Performance For personal use only Significant growth in revenue and earnings, beating prospectus and guidance forecasts % % All Pro-forma1 figures €m FY20 Actual FY20 Prospectus Variance FY19 Variance Revenue 87.8 74.0 18.6% 62.8 39.8% Software2 29.5 30.1 -2.0% 23.3 26.7% Services 58.
Slide 9: FY20 Revenue highlights
FY20 Revenue highlights For personal use only Record revenue achieved from new client wins and strong demand for FINEOS Product Consulting teams Total Revenue €m 100 87.8 ▪ FY20 revenue growth of 39.8% on FY19 and up 90 18.6% on prospectus forecast of €74.0m 2.5 80 ▪ Subscription revenue growth of 3
Slide 10: Significant R&D investment
Significant R&D investment For personal use only FINEOS continues to dedicate significant resources and financial investment to develop its software through research and development over time R&D Investment €m 30 28.4 ◼ Total R&D investment for FY20 up 24.3% on FY19, but down as a percentage of reve
Slide 11: Geographic mix of revenue
Geographic mix of revenue For personal use only Total Revenue growth of 39.8% on FY19. Significant expansion in North American proportion of total revenue, representing 59% for FY20 up from 45% in FY19. FY19 revenue by region FY20 revenue by region 10% 6% APAC APAC 35% 45% North North America Americ
Slide 12: Growing global and diverse client base
Growing global and diverse client base For personal use only FINEOS has a global and diverse client base, with many long stand relationships % of FY19 % of FY20 No. of years FY20 client concentration Client Length of relationship revenue revenue by revenue Client 1 16 Years 24% 19% Client 1 Client 2
Slide 13: Teamwork
Teamwork Aligning culture & strategy For personal use only Employees by function Employees by region 3% 6% 19% 18% Product Consultant APAC 43% Cloud Ops EMEA North America R&D 43% Sales & Marketing 6% General & Admin 63% Average Employee Utilisation1 High employee retention at >90% 91% © FINEOS CORP
Slide 14: Multiple growth pathways
Multiple growth pathways For personal use only Attractive opportunities exist to expand within existing clients, win new clients and enter new geographic markets Grow and Win Expand sales and FINEOS the upsell with clients new clients enter new markets LA&H industry platform ◼ FINEOS has a multinati
Slide 15: Financial Performance
02 For personal use only FINANCIAL PERFORMANCE © FINEOS CORPORATION
Slide 16: Income Statement
Income Statement For personal use only % Change % Change FY20F per € millions FY20 FY19 v FY20F v FY19 prospectus Pro Forma Prospectus Software (Subscription + ILF) 29.5 23.3 26.7% 30.1 -2.0% ▪ FY20 total revenue growth of 39.8% on FY19 and Services 58.3 39.5 47.5% 43.9 32.8% 18.6% up on prospectus
Slide 17: Balance Sheet
Balance Sheet For personal use only Statutory Statutory € millions 30-Jun-20 30-Jun-19 % Change Current assets Cash at Bank 39.8 6.9 477.0% Trade Debtors 17.6 7.4 137.3% ▪ Cash at Bank increase 477% received from IPO R&D credit 2.3 3.8 -39.3% capital raise less IPO costs and EIB loan & Prepayments 3
Slide 18: Cashflow Statement
Cashflow Statement For personal use only Consolidated Statement of Cash Flows Statutory Statutory % € millions 30-Jun-20 30-Jun-19 Change ▪ Strong cash position provides sufficient Net cash flows generated from operating activities 11.6 10.3 -13.4% funds to deliver on FINEOS’ growth strategy Net cas
Slide 19: FY20 Progress and Outlook
03 For personal use only FY20 PROGRESS AND OUTLOOK © FINEOS CORPORATION
Slide 20: FY21 Progress and Outlook
FY21 Progress and Outlook For personal use only ▪ Strategic acquisition of Limelight Health completed on 14 August 2020; ▪ Placement of AU$85 million completed on 11 August 2020 to part fund the acquisition (US$75m) ▪ Security Purchase Plan to raise up to AU$5 million ongoing, to complete in Septemb
Slide 21: Appendix Statutory Accounts
04 For personal use only APPENDIX 1 Statutory Accounts © FINEOS CORPORATION
Slide 22: Statutory Income Statement
Statutory Income Statement For personal use only % Change v % Change FY20F per FY20 FY19 FY20F v FY19 prospectus €m Prospectus Software (Subscription + ILF) 29.5 23.3 26.7% 30.1 -2.0% Services 58.3 39.5 47.5% 43.9 32.8% Total Revenue 87.8 62.8 39.8% 74.0 18.7% Cost of sales (29.3) (18.8) 56.0% (25.8
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