FINEOS Corporation Holdings Plc · ASX:FCL
FINEOS — FY2019 Earnings Presentation
33 slides from FINEOS's earnings presentation, Aug 29, 2019
Slide 1: FY19 Results Announcement
For personal use only FY19 Results Announcement Michael Kelly, CEO Tom Wall, CFO 29 August 2019 © 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
FY19 Highlights FCL For personal use only Growth Strategy Financial Performance FY20 Progress and Outlook Appendix 1 – Statutory Accounts Appendix 2 – Company Overview © FINEOS CORPORATION
Slide 5: FY19 Highlights
01 For personal use only FY19 Highlights © FINEOS CORPORATION
Slide 6: FY19 Financial Highlights
FY19 Financial Highlights For personal use only Exceeded FY19 pro-forma prospectus forecasts Revenue Subscription Pro forma EBITDA €62.8m Revenue €19.6m €8.4m vs prospectus €61.5m, up 2.2% in line with prospectus €19.6m vs prospectus €7.1m, up 18.4% vs FY18 €53.8m, up 16.8% vs FY18 €15m, up 30.8% vs
Slide 7: FY19 Operational Achievements
FY19 Operational Achievements For personal use only First Tier 1 client went live on FINEOS Policy & Billing. Headcount up 11% >90% employee All modules of FINEOS on FY18 to 664 retention rate AdminSuite in production 3 large contracts won Established new bases 86% Professional in Q4 with North in S
Slide 8: FY19 Financial Performance
FY19 Financial Performance For personal use only FY19 prospectus forecasts exceeded % % All Pro-forma figures €m FY19 Actual FY19 Forecast Variance FY18 Variance Revenue 62.8 61.5 2.2% 53.8 16.8% Software 23.3 23.0 1.1% 22.0 5.6% Services 39.5 38.4 2.8% 31.7 24.6% Cost of Sales (21.1) (20.5) 3.1% (1
Slide 9: FY19 Revenue highlights
FY19 Revenue highlights For personal use only Total Revenue €m 70 62.8 ◼ FY19 revenue growth of 16.8% on FY18 and up 2.2% on 3.7 prospectus forecast of €61.5m 60 53.8 ◼ Subscription revenue growth of 30.8% on FY18 and in line with prospectus forecast 50 7.0 19.6 41.1 ◼ Services revenue growth of 24.
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 Significant investment in R&D1 R&D investment €m ◼ FINEOS has invested €91m into the FINEOS Platform from FY
Slide 11: Long standing significant client relationships
Long standing significant client relationships For personal use only FINEOS has a global and diverse customer base, with many long standing relationships FY19 client concentration by revenue % of FY18 % of FY19 Client No. of years Length of relationship revenue revenue Client 1 Client 2 Client 1 15
Slide 12: Teamwork
Teamwork Aligning culture & strategy For personal use only Employees by function Employees by region 2% 6% 13% 29% Professional Services APAC 41% Cloud Ops EMEA North America R&D 47% Sales & Marketing 58% 4% General & Admin Average Employee Utilisation1 High employee retention at >90% 86% © FINEOS C
Slide 13: Growth Strategy
02 For personal use only GROWTH STRATEGY © FINEOS CORPORATION
Slide 14: The FINEOS Playbook
The FINEOS Playbook For personal use only The FINEOS playbook provides clarity and alignment and has supported strong levels of employee engagement and retention Vision Long term A world where protection from injury and loss is accessible to everyone Purpose We help our clients care for the people t
Slide 15: Established global business
Established global business For personal use only Headquartered in Dublin, FINEOS has a truly global client base North America EMEA APAC 6 of the 10 largest Life 6 of the 10 of the largest Group Life and Health Large multi-line insurers in Ireland, the UK and 100% of Accident Claims in New and Healt
Slide 16: Insurers facing change
Insurers facing change For personal use only Insurers facing non-negotiable change in operating environment Benefits of external solutions Client expectations ◼ Lower IT infrastructure costs ◼ Many customers are expecting ‘digital service’ ◼ Opportunities for variable subscription-based and high qua
Slide 17: The FINEOS Platform
The FINEOS Platform Overview For personal use only The FINEOS Platform comprises the core modules in FINEOS AdminSuite, assisted by engagement capabilities through FINEOS Engage and data analytics through FINEOS Insight FINEOS AdminSuite FINEOS Engage FINEOS Insight CORE DIGITAL DATA ▪ The FINEOS Ad
Slide 18: Multiple growth pathways
Multiple growth pathways For personal use only Attractive opportunities exist to expand within existing customers, win new customers 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 multi
Slide 19: Financial Performance
03 For personal use only FINANCIAL PERFORMANCE © FINEOS CORPORATION
Slide 20: Income Statement
Income Statement For personal use only % Change % Change FY19F per € millions FY19 FY18 v FY19F v FY18 prospectus Pro Forma Prospectus Software (Subscription + ILF) 23.3 22.0 5.6% 23.0 1.3% ▪ FY19 total revenue growth of 16.8% on FY18 and Services 39.5 31.7 24.6% 38.4 2.9% 2.1% up on prospectus fore
Slide 21: Balance Sheet
Balance Sheet For personal use only Statutory Statutory Pro Forma Pro forma € millions 30-Jun-19 30-Jun-18 % Change Adjustments 30-Jun-19 Current assets ▪ Cash at Bank adjustment reflects proceeds Cash at Bank 6.9 10.1 -32% 40.0 46.9 received from IPO capital raise less IPO Trade Debtors 7.4 11.5 -3
Slide 22: Cashflow Statement
Cashflow Statement For personal use only Consolidated Statement of Cash Flows Statutory Statutory % € millions 30-Jun-19 30-Jun-18 Change Net cash flows generated from operating activities 13.3 10.4 28% ▪ Strong cash position provides sufficient funds to deliver on FINEOS’ growth Net cash used in in
Slide 23: FY20 Progress and Outlook
04 For personal use only FY20 PROGRESS AND OUTLOOK © FINEOS CORPORATION
Slide 24: FY20 Progress and Outlook
FY20 Progress and Outlook For personal use only ▪ IPO on the ASX – completed 16 August 2019; ▪ €62.9m1 raised to support the FINEOS Growth Strategy ▪ Repay EIB loan and interest – process is underway ▪ On target to achieve FY20 prospectus revenue forecast; ▪ 4 new name small contract wins with North
Slide 25: Appendix Statutory Accounts
05 For personal use only APPENDIX 1 Statutory Accounts © FINEOS CORPORATION
Slide 26: Statutory Income Statement
Statutory Income Statement For personal use only % Change v % Change FY19F per FY19 FY18 FY19F v FY18 prospectus €m Prospectus Software (Subscription + ILF) 23.3 22.0 5.6% 23.0 1.3% Services 39.5 31.7 24.6% 38.4 2.9% Total Revenue 62.8 53.8 16.8% 61.5 2.1% Cost of sales (21.1) (14.3) 47.4% (20.5) 2.
Slide 27: Appendix – Company Overview
06 APPENDIX 2 – Company Overview For personal use only © FINEOS CORPORATION
Slide 28: FINEOS overview
FINEOS overview For personal use only FINEOS is a leading provider of core software solutions to the Life, Accident & Health (“LA&H”) insurance industry globally OUR MISSION To be the global market leader in core systems for group and individual LA&H insurance on a single technology platform 664 peo
Slide 29: Company Overview
Company Overview For personal use only FINEOS has deep industry expertise and a strategic vision including growth and investment Key milestones 1993 – 2002 2003 – 2012 2013 – 2019 Phase 1: Deep expertise in insurance Phase 2: Claims + Software Phase 3: Building the Platform Solutions ◼ FINEOS was fo
Slide 30: Billing model and revenue recognition
Billing model and revenue recognition For personal use only FINEOS generates revenue through the sale of its software products for subscription fees and the provision of professional services • All new software sales of FINEOS modules are of its cloud-based SaaS products, with no new sales under the
Slide 31: Competitive strengths
Competitive strengths For personal use only Implementing FINEOS’ software provides a wide range of diverse benefits both to insurers and to their customers Leader in claims Track record and Single platform Built for scale and All products live in management software experience accessibility the clou
Slide 32: LA&H insurance addressable market
LA&H insurance addressable market For personal use only Large, attractive and growing market opportunity Global estimated IT spend by life insurers (US$bn)1 ◼ FINEOS’s clients operate within the LA&H insurance market and use FINEOS’ services and software as part of an external 4 3 3 third party soft
Slide 33: Board of Directors
Board of Directors For personal use only Director Experience & qualifications — Based in Sydney, Anne has over 30 years of business experience across a broad spectrum of the insurance industry. Anne is currently on the boards of listed companies, Steadfast Group Limited and Infomedia Limited, as wel
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