Slide 1: Full Year Results
Full Year Results 12 months ended 31st March 2019 Brendan Mooney | Richard McCann | 28/05/2019 Presenter Name Date
Slide 2: Highlights
Highlights Strong performance across all financial indicators. • Revenue, profit, cash and sales orders all recording very strong growth. £151.3m REVENUE UP 56% Strong revenue diversification. • International up 44% to £29.0m. • Commercial up 42% to £40.0m. Performance in-line • SaaS and software-re
Slide 3: Group overview
Group DIGITAL SERVICES DIGITAL PLATFORMS(1) overview £140m £20m £105m £15m £70m £10m Digital Services: we £35m £5m are a key partner to UK government and £0m £0m the leading European FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 boutique partner for • Digital Transformation: Online digital • Sma
Slide 4: Financial Summary
Financial Results represent ninth consecutive year of revenue and adjusted pre-tax profit growth. REVENUE Summary £160m Growth has been entirely organic, delivering five-year £120m revenue CAGR of 26% (FY15 - FY19). £84.1m £80m Financial Metrics. £39.4m £42.9m £55.3m • Good revenue visibility: back
Slide 5: People
People Building a talented team within Kainos is key to our long-term success. 1,470 PEOPLE, UP 26% Continue to attract strong interest in key recruitment markets, with a 26% increase in staff numbers. • 459 people joined, 121 from education, 338 from industry. We continue to build Engagement remain
Slide 6: Customers
Customers Revenue diversification continues, across a series of segments. SECTORAL REVENUE • Commercial up 42% to £40.0m (2018: £28.1m). Healthcare • Healthcare up 42% to £21.4m (2018: £15.0m). 14% • International up 44% to £29.0m (2018: £20.2m). Commercial Government Existing customers underpin rev
Slide 7: Digital Services
Digital Services Presenter Name Date
Slide 8: Digital Services
Digital Digital Services represents 88% of Group revenue. REVENUE Services Very strong revenue performance, up 69%. • Digital Transformation revenue up 70% to £109.8m £132.6m UP 69% (2018: £64.7m). • Workday Services revenue increased 63% to £22.7m (2018: £13.9m). SALES ORDERS A very strong revenue
Slide 9: Digital Transformation
Digital Very strong performance in Central Government. • Continue to extend our presence, now operating across MARKET SIZE Transformation 14 government departments. Brexit: limited impact on key programmes. £1,290m UK PUBLIC SECTOR FY19 SPEND • Clear commitment by Government to deliver key digital p
Slide 10: Digital Transformation
Digital Transformation We have established a clear reputation for delivering value, at scale and pace. From a central role in Public Sector we have extended into transformation programmes in Commercial and Healthcare sectors. 28/05/2019 10
Slide 11: Case Studies: Digital Transformation
Case Studies: Digital Transformation UK-based Telensa is #1 Supporting 1.2 million annual globally in streetlight controls. property transactions in the UK. Our services are 1.7 million lights installed across driving digital Enabled over 15,000 searches. 100+ cities. transformation in government, A
Slide 12: The Workday opportunity
Existing, Revenue Generating Activity Planned or Pre-Revenue Activity The Workday 2011 2014 2019 2021 opportunity Europe Implementations Smart SaaS Subscriptions CONSULTING ACTIVITY 2011: UK 2015: BENELUX Post Deployment Services Globally, there are 34 2017: DACH, NORDICS 2018: FRANCE Workday Cloud
Slide 13: Workday Services
Workday Strengthened our position as leading European partner. • A total of 45 clients in mainland Europe (2018: 29). MARKET SIZE Services Continued regional expansion, appointed partner in Canada (Q3, 2018) and France (Q3, 2018). £121m UK & NORTHERN EUROPE • Offices in Toronto and Paris are now ope
Slide 14: Workday Services
Workday Services Our focus on delivering customer success has resulted in excellent client references, both locally and internationally. 28/05/2019 14
Slide 15: Case Studies: Workday Services
Case Studies: Workday Services 500 employees. c. 7,000 employees. Our focus on Operates in 9 countries across Government Agency, part of delivering customer 26 offices. UK Research and Innovation. success has resulted in excellent client references, both 11 million passengers and FY18 budget of £90b
Slide 16: Digital Platforms
Digital Platforms Presenter Name Date
Slide 17: Digital Platforms Overview
Digital Revenues increased 3% to £18.7m (2018: £18.1m). • Five-year CAGR of 17% (FY15-FY19). REVENUE TREND Platforms • Currently represents 12% of Group revenue. £20m Overview • Solid long-term revenue visibility, with backlog at £41.6m (2018: £40.1m). £15m £7.8m £11.3m £10m Continued R&D activity w
Slide 18: Smart for Workday
Smart for Over 150 global customers using Smart. REVENUE TREND • Clients signed during FY19 including Stripe, Prudential, £12m Workday IMCO and CSL Behring. £10m £1.9m £8m £1.3m Financial performance underlines strength of product £6m and market opportunity. £4m £9.4m £6.4m • Revenue: up 45% to £11.
Slide 19: Smart for Workday
Smart for Workday Over 150 global customers use Smart to reduce their manual testing by 90%. These customers span financial services, education, technology, government and manufacturing. 28/05/2019 19
Slide 20: Financial Performance
Financial Performance Presenter Name Date
Slide 21: Financials: Income Statement
INCOME STATEMENT Financials: Digital Services: • Very strong revenue growth in both segments. Income • Digital Transformation: 70%. • Workday Services: 63%. £m 2019 2018 Change Statement • Gross Margin decreased by 2%. Digital Services 132.6 78.6 69% • Underlying staff margin unchanged. Digital Plat
Slide 22: Financials: Balance Sheet and Cashflow
Financials: Balance Sheet: • Limited fixed assets; IT, office equipment. BALANCE SHEET Balance Sheet • Underlying trade receivables/WIP total 64 days As at 31 March (£m) Fixed assets and investments 2019 4.0 2018 3.1 and Cashflow (2018: 62 days). • Initial property cost £0.7m in Prepayments Receivab
Slide 23: Looking Ahead
Looking Ahead Presenter Name Date
Slide 24: Market Expansion
Market 2011 2014 2019 2021 Expansion PUBLIC Digital Transformation (UK) 59% OF GROUP REVENUE Workday (UK) COMMERCIAL Workday Services (UK, DACH, BeNeLux, Nordics, France, Canada ) Kainos remains on 27% Digital Transformation (UK, Germany) track to meet OF GROUP REVENUE expectations. HEALTH Evolve (U
Slide 25: Legal and Confidentiality Statement
Legal and 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, financial Confiden