Felix Group Holdings Ltd. · ASX:FLX
Felix — H1 2021 Earnings Presentation
28 slides from Felix's earnings presentation, Feb 25, 2021
Slide 1: H1 FY21 Results Presentation
H1 FY21 Results Presentation Felix Group Holdings Ltd ACN 159 858 509 felix.net
Slide 2: Connecting Contractors and Vendors in the cloud
Connecting Contractors and Vendors in the cloud 2
Slide 3: H1 FY21 Highlights
H1 FY21 Highlights ° Maintained strong growth in challenging environment ° Platform and scale progress is on-track ° Well capitalised to accelerate further growth Strong Financial Successful Growth Performance Funding Enterprise SaaS revenue of growth of 53% Significantly improved operating efficie
Slide 4: H1 Key Performance Metrics
H1 Key Performance Metrics Strong growth in core focus areas while improving operating performance. 48% $1.8m 77% 43,865 Enterprise SaaS Vendors in Contracted ARR Marketplace HY20 $1.2M HY20 24,832 47% 68% 106% 28 -$0.9m $0.2m Enterprise Adjusted Operating customers EBITDA Cash flows HY20 19 HY20 -$
Slide 5: Continued Enterprise SaaS growth in challenging conditions
Continued Enterprise SaaS growth in challenging conditions Growth in Contracted ARR (Enterprise SaaS) ($m) $1.8m 48% 1.8 Enterprise Saas (Contractor) vs H1 FY20 Contracted ARR CAGR 106% 1.5 H1 FY21 1.2 ° Maintained growth in challenging environment with COVID-19 impacting sales cycles 0.6 ° Strong p
Slide 6: Enterprise strategy driving rapid Marketplace growth
Enterprise strategy driving rapid Marketplace growth Vendors in Marketplace 43,865 +77% Vendors in Marketplace vs H1 FY20 43,865 as at 31 Dec CAGR +68% 34,066 24,832 ° Enterprise SaaS growth engine accelerating 20,194 Vendor Marketplace growth ° Little to no acquisition cost for Vendors due to Cont
Slide 7: New Enterprise Contractors added to blue-chip customer base
New Enterprise Contractors added to blue-chip customer base ° Existing customers continuing to expand accounts through licensing additional modules and increasing usage ° Zero customer churn for the period ° 31% of TCV added in the period from existing customer expansion Felix - H1 FY21 Investor Pre
Slide 8: Significant growth in key Enterprise engagement metrics
Significant growth in key Enterprise ° Key engagement metrics showing strong growth (over PCP) in usage levels from enterprise customers engagement metrics ° Higher usage levels increase platform stickiness and drive network effects 118% 199% 407% Growth in Requests for Quotations Growth in total
Slide 9: Strong financial performance with funding to drive growth
Strong financial performance with funding to drive growth ° IPO funds have strengthened H1 FY21 H1 FY20 % Change financial position ° Cost base restructured in March 2020 Enterprise SaaS – Contracted ARR $1,760,318 $1,188,198 48% to put the Group in a strong financial position during COVID-19 Ente
Slide 10: Financial Performance
Financial Performance ° Marketplace Subscriptions (Vendors) Statement of profit and loss and other comprehensive income H1 FY21 H1 FY20 % Change revenue declined slightly following a 45% Revenue reduction in its cost base to prepare for uncertain COVID-19 environment. Contractor Subscriptions 720,47
Slide 11: Financial Position
Financial Position ° 94% of receivables balance received Statement of Financial Position H1 FY21 H1 FY20 % as at Feb 25. Assets ° Reduction in the carrying balance of the Cash and cash equivalents 850,632 1,017,911 (16%) intangible asset due to reduced R&D spend. Trade and other receivables 301,107
Slide 12: Cash Flows
Cash Flows ° Receipts from customers includes $670k ($'000) H1 FY21 H1 FY20 % Change of JobKeeper and cash flow boost. Cash flow from operating activities ° Reduction in payments to suppliers and Receipts from customers 3,311,855 1,824,308 82% employees due to reduction of cost base. Payments to sup
Slide 13: Board and Management
Board and Management Michael Bushby Rob Philpot George Rolleston Michael Trusler Chairman Non-Executive Director Non-executive Director Non-executive Director 30 years’ experience in Government Rob is a global technology leader, with George has over 15 years’ transactional & Co-Founder including as
Slide 14: Construction project ecosystem
Construction project ecosystem Used by market-leading organisations, Felix is a leading Enterprise SaaS procurement platform tailored for Contractors to source, manage and engage with Vendors Subcontractors Vendors Suppliers Asset Owner Head Contractor Departments using Felix: ° Finance ° Estimating
Slide 15: Network effects create significant value for Contractors and Vendors
Network effects create significant value for Contractors and Vendors Felix creates increasing value for Contractors and Vendors as it continues to scale 05 Increased scale of Vendor Marketplace attracts new 01 New Contractor adopts and embeds Felix across Contractors organisation Increases value pro
Slide 16: Felix monetises both Contractors and Vendors
Felix monetises both Contractors and Vendors ° Felix monetises both Contractors and Vendors Enterprise SaaS (Contractors) Marketplace Subscriptions (Vendors) through SaaS subscriptions ° C ontractors invite their Vendors to join Felix and prequalify to their organisation $64,000 $2,100 ° Vendors hav
Slide 17: Enterprise platform - Current modules
Enterprise platform - Current modules Vendor Sourcing Contracts Vendor Management Marketplace Seamlessly manages all tiers Enables project teams Stores all contracts Enables Contractors of Contractors’ supply chains. to manage sourcing activities and contract summaries to discover new Vendors while
Slide 18: Strong Enterprise pipeline and large addressable market
Strong Enterprise pipeline and large Early stages of penetration with platform expansion to accelerate uptake addressable market 1,743 ° Large addressable market of c.1,743 businesses across target sectors ° Strong pipeline growth during COVID-19 impacted months ° Well positioned to accelerate
Slide 19: Strategic plan
Strategic plan Phase 1: Platform established Phase 2: Accelerate Growth Phase 3: Monetise Vendors (Complete) (Commenced) ° Grow current paying Vendor subscriber base ° Accelerate Contractor and Vendor growth from c.2.5% towards target penetration of 30% (based on Phase 3 target of 100,000 ° Enterpri
Slide 20: Platform expansion to drive revenue growth
Platform expansion to drive ° Investment in product breadth to accelerate Contractor uptake ° Potential 43% ARR uplift at full saturation of module uptake from existing revenue growth customer cohort (assuming release of new modules) ° High demand for new modules from existing and prospective cus
Slide 21: Land and expand case study
Land and expand case study Land and expand strategy ° Shortens sales cycle ° Build trustwith Enterprise customers Timeline of ARR expansion from existing ° Expand ARR and increase platform stickiness ASX-listed Enterprise customer Apr May Nov Proposed Future 2018 2020 2020 Vendor Management Ve
Slide 22: Vendor Compliance Passport
Vendor Compliance Passport The traditional methods used to prequalify Vendors are manual, repetitive and can result in significant third-party risk exposure. Felix is developing a Vendor Passport to solve this significant industry problem. requalify Vendors within the P rovide Vendors with one-walle
Slide 23: Vendor Passport to drive Marketplace revenue growth (Phase 3)
Vendor Passport to drive Marketplace revenue growth (Phase 3) Vendor Subscriptions (Current) Vendor Subscriptions (Target) ° c.2.5% current paying subscription penetration in Marketplace ° Contractor growth number is driving scale and engagement of Current penetration Target Penetration Vendors in
Slide 24: FY21 – Driving growth across key focus areas
FY21 – Driving growth across key focus areas Strategic plan progress is on-track Recent Progress ° Released additional platform internationalisation enhancements to drive further uptake of Felix on major international projects ° Commenced development of core new Enterprise platform modules °
Slide 25: Appendix
Apendix Felix - H1 FY21 Investor Presentation 25
Slide 26: Case study: Major Infrastructure Project
Case study: Major Infrastructure Project Size Packages $6b+ ~2,500 Duration Construction zones Procurement staff 5+ years 7 50 “Felix provides real-time visibility of what stage the procurement process is at, from who is waiting on approvals to the visibility of all documents and analysis.” Head of
Slide 27: Client profiles
Client profiles ° Market-leading customers across multiple industries ° Opportunity to expand revenue as existing customers scale usage of Felix and license additional modules Client 1 Client 2 Client 3 Client 4 Client 5 ° Type: Engineering, Construction ° Type: ° Type: ° Type: Engineeing, ° Type: P
Slide 28: Contact
Contact Mike Davis (CEO) James Frayne (CFO) investors@felix.net