Felix Group Holdings Ltd. · ASX:FLX
Felix — H1 FY22 Earnings Presentation
28 slides from Felix's earnings presentation, Feb 21, 2022
Slide 1: H1 FY22 Results Presentation
H1 FY22 Results Presentation 21 February 2022 Felix Group Holdings Ltd ACN 159 858 509 felix.net
Slide 2: Contents
Contents Overview 3 H1 FY22 highlights and results 9 Growth strategy 16 Outlook 22 Additional information 25 Felix - H1 FY22 Results 2
Slide 3: Perfect storm of critical issues is driving construction technology adoption
Perfect storm of critical issues is driving construction technology adoption Large and growing Significant compliance Traditionally industry environment low IT spend ↘ Example: Multi-billion dollar infrastructure project Sustainability 50% local supply Inabillity to 4% Indigenous owned find vendors
Slide 4: Established software platform that digitises and automates critical procurement processes
Established software platform that digitises and automates critical procurement processes Third-party Vendors Contractors (e.g. Boral) are contracted to deliver (e.g. CIMIC) engage a supply chain of specific works or supply materials third-party Vendors to deliver capital projects Subcontractors Sup
Slide 5: Highly strategic leading Contractors
Highly strategic leading Contractors 38 Contractors with significant value to be realised as platform usage expands across divisions Recent contract wins Felix - H1 FY22 Results 5
Slide 6: Felix monetises both Contractors and Vendors
Felix monetises both Contractors End-to-end solution across entire procurement cycle and Vendors Vendor Sourcing Contractors ~$63,000 Management Enables project teams to Seamlessly manages all tiers of manage sourcing activities while Average ARR Contractors‘ supply chain remaining centrally documen
Slide 7: Felix transforms the procurement lifecycle
Felix transforms the "Felix provides real-time visibility of what stage the procurement process is at, from who is waiting on procurement lifecycle approvals to the visibility of all documents and analysis." Peter Bolanis - Head of Procurement & Contracts West Gate Tunnel Project $6bn+ major infrast
Slide 8: Network effects are accelerating scale and entrenching market position
Network effects are Mandated use of Felix by accelerating scale and Contractors drives rapid scale entrenching market position New Contractors onboard their entire third-party supply chain of thousands of Vendors on to the platform 05 Increased scale of Vendor Marketplace attracts new 01 New Contrac
Slide 9: H1 FY22 Highlights & Results
H1 FY22 Highlights & Results Felix - H1 FY22 Results 9
Slide 10: H1 FY22 Highlights
H1 FY22 Highlights $ 4.2 Group ARR m $ 2.0 m Improvement in EBITDA 38 Enterprise Contractor Customers +8% on H1 FY21 position to ($3.3)m +36% on H1 FY21 $ 2.4 m Contractor (Contracted) ARR $ 172 k Contractor MRR1 59 k Vendors on the platform +34% on H1 FY21 +50% on Dec-20 +35% on H1 FY21 Felix - H1
Slide 11: Group ARR
Group ARR Group Contracted ARR contribution ($m) ↗ Key focus of Felix has been on scaling Contractors and increasing Contractor ARR following a deliberate strategic shift See next slide for further detail ↗ Strong momentum in Contractor ARR, with the 4.1 3.9 3.8 4.2 3.7 contribution increasing from
Slide 12: Building Contractor momentum
Building Contractor momentum Contractor (Contracted) ARR ($m) 2.7 Contractor ARR H1 FY22 vs H1 FY21 2.4 $ 2.4 m +34 % 1.8 1.9 1.5 ↗ Strong year-on-year revenue growth trajectory with early momentum in Q3 FY22 following GPT (ASX.GPT) and Altrad 1.2 contract wins ↗S ix customer expansions in H1 FY22,
Slide 13: Focus on scaling Contractors driving rapid marketplace growth
Focus on scaling Contractors driving rapid marketplace growth Vendors in Marketplace ('000) Vendors in Marketplace vs H1 FY21 59.0 59 k +35 % 43.9 52.2 34.1 ↗ Contractor growth is accelerating the scale of the 24.8 Vendor Marketplace as new Contractors mandate usage of Felix across their network of
Slide 14: Platform engagement metrics
Platform engagement metrics Accelerating metrics reflects the platform‘s penetration of customer ecosystem and stickiness of the platform Active Projects Active Compliance Documents Requests for Quotations (RFQ) Contractor User Accounts 71,758 5,358 298 3,960 4,169 184 2,632 38,873 3,267 2,857 1,803
Slide 15: Summary H1 FY22 financials
Summary H1 FY22 financials H1 FY22 H1 FY21 Change (%) Financial Comenatary Revenue ① Contractor Subscriptions 920,168 720,470 28% ① Strong performance in Contractor revenues as a result of new contract wins and expansions of existing customer licences ② Vendor Subscriptions 947,745 1,154,948 (18%) ③
Slide 16: Growth Strategy
Growth Strategy Significant Contractor pipeline Penetration of new high value sectors Global opportunity Unlocking value of Vendor Marketplace Felix - FY21 Results 16 16
Slide 17: Accelerating conversion of a Contractor pipeline
ccelerating conversion of A Felix is on the cusp of accelerated growth underpinned by immediate pipeline opportunities Contractor pipeline Significant growth potential (# Contractors) ~1,700 77 Near-term focus on doubling Contractors 58 38 31 24 5 12 COVID-19 impact FY18 FY19 FY20 FY21 H1 FY22 Advan
Slide 18: Penetration of new high value sectors
Penetration of new high value sectors Success in initial target industries accelerating adoption of Felix across high value adjacent sectors ↘ Continued focus on and traction ↘ Early uptake in adjacent sectors highlighting across initial target sectors broad applicability of platform Government & In
Slide 19: Global opportunity
Global opportunity Geographic footprint of Vendor Marketplace ↗ Felix‘s compliance framework is based on international standards making the platform easily deployable to +68 % 49 international markets Growth in international Countries Vendors vs FY20 ↗ Large Australasian customers with global supply
Slide 20: First strategic international agreement
First strategic international agreement ↗ Felix signed its first strategic sales and collaboration agreement with InEight, a global leader in construction project management software ↗ Agreement provides Felix with immediate opportunities to promote its highly complementary solution to InEight‘s glo
Slide 21: Monetise Vendor Marketplace
Monetise Vendor Marketplace Long-term growth underpinned by significant opportunity to unlock value of Vendor Marketplace Pathway to further monetisation of Vendor Marketplace Monetise Accelerated scale Develop Vendor Vendors modules Increase Contractors Significant value of new Vendor modules is ex
Slide 22: Outlook
Outlook Felix - H1 FY22 Results 22
Slide 23: Favourable industry backdrop
Favourable industry backdrop Strong tailwinds provide Felix with expanding opportunities Compliance ESG & CSR Digitisation Infrastructure spending Increasing legislative Contractors are pursuing initiatives Errors, delays, disputes and Government initiatives to stimulate requirements, like the Moder
Slide 24: Strategic plan
Strategic plan Continued execution against strategic plan provides foundation for accelerated growth Phase 1: ↘P hase 2: Phase 3: Core Platform established Accelerate growth Monetise Vendors (Complete) (Underway) $15m invested in technology platform latform internationalisation enhancements to drive
Slide 25: Additional information
Additional information Felix - H1 FY22 Results 25
Slide 26: Corporate overview
Corporate overview Substantial shareholders Share price performance (last 6 months) David Williams 14.4% Perennial Value Management 12.9% Thorney Investment Group 9.1% $0.40 Rolleston Family Office (George Rolleston - NED) 6.9% Mike Davis (Co-Founder and CEO) and Michael Trusler (Co-Founder and NED)
Slide 27: Board and Management
Board and Management Michael Bushby -3 0 years’ experience in Government including former - Extensive corporate experience in Australia and Joycelyn Morton Chief Executive of Roads & Traffic Authority in NSW internationally across a variety of industries Chairman Non-Executive -S enior experience in
Slide 28: Disclaimer
Disclaimer The information in this presentation does not constitute Accordingly, neither the Company nor any of its directors, personal investment advice. The presentation is not intended officers, employees, advisers, associated persons to be comprehensive or provide information required by or subs