Kainos Group Plc · LSE:KNOS
Kainos — H1 FY24 Earnings Presentation
26 slides from Kainos's earnings presentation, Nov 13, 2023
Slide 1: Interim Results
Interim Results 6 months ended 30 September 2023 Russell Sloan (CEO) Richard McCann (CFO) 13 November 2023
Slide 2: Safe harbour statement
Safe harbour statement This document contains statements about Kainos Group plc that are or may be forward-looking statements. Forward-looking statements include statements relating to (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, finan
Slide 3: Contents
Contents 1. Business Overview 2. Divisional Performance 3. Financial Performance 4. Looking Ahead For more information visit kainos.com/investor-relations 3
Slide 4: Business Overview
Business Overview kaines’
Slide 5: Business Overview
Business Overview We have an excellent position in long-term, high-growth markets MARKET CAGR MARKET CAGR MARKET CAGR £2.7b 18% £1.1b 47% £0.6b 41% £117m £122m £162m £200m £224m £23m £37m £49m £71m £106m £11m £19m £24m £32m £45m FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 F
Slide 6: Expertise at a global scale
Expertise at a global scale = Vd N ET FL l X INHS| a... Capital “Life Financial match s H United KION Home Office IKIO|NIE| stripe | ll i @ Nations GROUP 3 The | : AA HELLO sence MEXI (0) Bizz, Beotinscom comcast FRESH w 8 ., Pon conmonvcath @ Penn aggreko Pt a Wate @ globalpayments & Development Of
Slide 7: H1 FY24 Highlights
H1 FY24 Highlights Strong growth in key business areas Workday with ongoing expansion opportunity Serv ices +18% • Strong demand in public • Ongoing investment in H1 24: £57m H1 23: £48m sector, Workday Products Workday Products as we Revenue(1) and Workday Services remain on track to • Disciplined
Slide 8: Our people
Our people We are building an exceptionally talented and engaged workforce Creating social connection Genie acquisition extends India presence Kainos Argentina Great Place to Work award People 23 Global Locations Engagement +8% 92% Employee Retention 79% Peakon Employee engagement score FY20 1,715 U
Slide 9: Our Customers
Our Customers Delivering value to our clients drives long-term relationships New Client Rev enue Healt hcare Sect or Rev enue Nort h America Rev enue Ex ist ing Client Rev enue £37m £50m Cent ral Europe(1) Rev enue Commercial Sect or Rev enue Public Sect or Rev enue £35m £37m £68m £35m £11m £48m £13
Slide 10: Our responsibilities
Our responsibilities Being responsible towards our people, customers, communities and planet Work Experience Working with Primary Schools … Climate Action Gender Equality Quality Education Reducing our Promoting gender equity, Increasing employment potential climate impact equality and gender rights
Slide 11: Divisional Performance
Divisional Performance kaines’
Slide 12: Digital Services
Digital Services Strong revenue growth Revenue(1) Backlog Bookings in key public sector -1% +2% +7% market H1 24: £109m H1 24: £119m H1 24: £149m H1 23: £111m H1 23: £117m H1 23: £139m Public sector / +17% to £73m Revenue trend H1/H2 Continued commitment to existing digital FY20 £62m £61m £122m prog
Slide 13: Extended Producer Responsibility: "a commitment to high-quality design and delivery"
Extended Producer Responsibility (EPR) “a commitment to high- quality design and delivery” Colin Banno-Thornton | Director Digital Delivery at DEFRA EPR is about reducing waste and lessening the UK’s environmental footprint by making organisations responsible for their products from creation to disp
Slide 14: Our Artificial Intelligence Projects
Our Artificial Intelligence Projects The Journey 2016 Machine Learning and AI identified as an innov ation research topic 2017 Dedicated AI Team formed to explore interest with clients 2019 Data & AI practice launched to support our clients 2023 Over 190 professionals deliv ering significant, leadin
Slide 15: Workday Services
Workday Services Strong growth following Revenue(1) Backlog Bookings exceptional FY23 sales +18% -34% -23% closure and ongoing H1 24: £57m H1 24: £53m H1 24: £64m market demand H1 23: £48m H1 23: £81m H1 23: £83m Americas / +12% to £29m Revenue trend H1 / H2 An established position in the largest gl
Slide 16: Multi-phase Workday Deployment
Multi-phase Workday Deployment “We have partnered with Kainos for 4 years now and delivered 8 Workday deployment projects successfully.” Henrik Andersen | Head of Platform Delivery at Stibo Group Stibo Group is a global leader of data management and media solutions, with their HQ in Denmark and 1,50
Slide 17: Workday Products
Workday Products Excellent growth across key metrics as we expand our Revenue(1) ARR Backlog product portfolio and progress +28% +25% +33% to our £100m ARR target H1 24: £27m H1 23: £21m H1 24: £55m H1 23: £44m H1 24: £114m H1 23: £86m Measured increase in investment / +34% to £12m R&D investment in
Slide 18: Employee Document Management (EDM)
Employee Document Management (EDM) “We can be compliant. We can meet all the functional requirements. We can increase the efficiency of our HR teams. We can empower our employees.” Zuzana Rozkosna | HR Global Project Manager at Hilti The Hilti Group has 33,000 team members in 120 countries, supplyin
Slide 19: Financial Performance
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Slide 20: Group Income Statement
Group Income Statement Digital Services: • Significant variation in revenue performance by sector • Public +17%, Commercial-16%, Healthcare -31% Income Statement • Gross margin reduced slightly to 37.7% (H1 23: 38.3%) • Direct expenses decreased 2% due to cost control £m H1 24 H1 23 Change Workday S
Slide 21: Balance Sheet and Cashflow
Balance Sheet and Cashflow Balance Sheet: Balance Sheet Fixed assets and investments As at 30 Sept (£m) H1 24 H1 23 Fixed assets and inv estments 22.9 18.6 • IT, office equipment, investments etc. £7.7m (FY 22: £8.2m) Goodwill and Intangible assets 44.7 25.8 • IFRS16 leases capitalised £3.9m (H1 23:
Slide 22: Looking Ahead
Looking Ahead
Slide 23: Outlook
Outlook We have strong positions in fast-growing, resilient, international markets Digital Services Workday Services Workday Products UK leader in delivering Continue to expand in Achieve £100m of SaaS digital transformation high growth market recurring revenue by 2026 Market Drivers Market Drivers
Slide 24: Appendix: Definition of terms
Appendix: Definition of terms
Slide 25: Definition of terms
Definition of terms Active customer: a customer who has paid us to deliver a product or service Contracted backlog: the value of contracted revenue that has yet to be within the current financial year. recognised. Adjusted EBITDA: calculated as being adjusted pre-tax profit excluding interest, Compo
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