FINEOS : FY23 Results Presentation

FY23 results presentation

Michael Kelly (Founder & CEO) and Ian Lynagh (CFO) 23 August 2023

© FINEOS Corporation Ltd

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Disclaimer

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 this presentation should be construed as either an offer or a solicitation of an offer to buy or sell securities in the Company in any jurisdiction or be treated or relied upon as a recommendation or advice by the Company. NOT FINANCIAL PRODUCT ADVICE Nothing in this presentation constitutes legal, financial, tax or other advice or any recommendation by the Company. The information in this presentation does not take into account the particular investment objectives, financial situation, taxation position or needs of any person. You should not rely on the presentation and in all cases, you should conduct your own investigations and analysis of the financial condition, assets and liabilities, financial position and performance, profits and losses, prospects and business affairs of the Company, and the contents of this presentation and seek legal, financial, tax and other professional advice. FORWARD-LOOKING STATEMENTS This presentation may contain certain forward-looking statements, forecasts, estimates, projections, beliefs and opinions (Forward Statements). Forward-looking statements can be identified by the use of 'forward-looking' terminology, including, without limitation, the terms 'believes', 'estimates', 'anticipates', 'expects', 'projects', 'predicts', 'intends', 'plans', 'propose', 'goals', 'targets', 'aims', 'outlook', 'guidance', 'forecasts', 'may', 'will', 'would', 'could' or 'should' or, in each case, their negative or other variations or comparable terminology. Forward Statements involve elements of subjective judgment and analysis, and are subject to known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future, assumptions which may or may not prove correct, and may be beyond the Company's ability to control or predict. No representation or guarantee is made by the Company or any other person that any of these Forward Statements or forecasts will be achieved or proved to be correct. Readers are cautioned not to place undue reliance on Forward Statements and the Company assumes no obligation to update such statements (except as required by applicable regulations or by law). PAST PERFORMANCE Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon (and is not) and indication of future performance. FINANCIAL INFORMATION All financial values contained in this presentation are in Euros (€) unless otherwise stated. This presentation contains a number of non-IFRS financial measures. The Company believes this information provides useful information for investors and form key performance indicators for the Company. Financial information in this presentation including totals and percentages may be subject to rounding. THIRD PARTY INFORMATION AND MARKET DATA This presentation contains information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, reliability, adequacy or completeness of the information. This presentation should not be relied upon as a recommendation or forecast by the Company. NO LIABILITY OR RESPONISBILITY The information in this presentation is provided in summary form and is therefore not necessarily complete. To the maximum extent permitted by law, the Company and each of its subsidiaries, affiliates, directors, employees, officers, partners, agents and advisers and any other person involved in the preparation of this presentation disclaim all liability and responsibility (including without limitation, any liability arising from fault or negligence) for any direct or indirect loss or damage which may arise or be suffered through use or reliance on anything contained in, or omitted from, this presentation. The Company accepts no responsibility or obligation to inform you of any matter arising or coming to its notice, after the date of this presentation, which may affect any matter referred to in this presentation. This presentation should be read in conjunction with the Company's other periodic and continuous disclosure announcements lodged with ASX.

©©FINEOSCorporationLtd.

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FY23 Financial Highlights

FINEOS continuing to demonstrate the business' transition to a higher quality subscription revenue base

Subscription	ARR
Revenue	€67.3m
€62.4m	at 30 June '23

Up 15.9% on FY22 and now the		Up 19.3% on 30 June 2022
largest revenue stream,
overtaking services revenue

Total

Revenue

€125.0m

Down 1.7% on FY22 due to major customer reducing services work in favour of R&D investment in product

Gross Profit		EBITDA		Cash Position
€85.7m		€2.0m		€25.5m
GP margin 68.5%		EBITDA margin 1.6%		at 30 June '23
GP margin up from 65.3% in FY22		EBITDA down 70.2% on FY22		In August '23:
GP € up 3.2% on FY22		EBITDA margin FY22 5.3%
		A$40m capital raise completed1

© FINEOS Corporation Ltd

1. Comprising of a fully underwritten A$35m institutional placement to investors and A$5m conditional placement to Michael Kelly, Founder & CEO of FINEOS, subject to FINEOS securityholder approval.

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FY23 Operational Highlights

Larger Clients are scaling up utilisation of the platform

More legacy platforms being made

redundant due to

maturity of FINEOS product

Cost reduction

initiatives

commenced

Savings already realised

in 2H23 v 1H23

Major contract win

for complete AdminSuite

Expected subscription & services revenue from contract in FY24 US$10-14m

1,042

Total Headcount1 as of 30 June '23

Headcount remained steady with continued redistribution to lower cost regions ongoing into FY24

North American

Revenue 78.1% of

Total Revenue, in

line with FY22

North America represents in total over

30% of the global L,A&H market

3 new name contract wins including 1st new Direct-to-Employer market sale

The Direct-to-Employer market

has a TAM of $200m2

© FINEOS Corporation Ltd Notes: 1. Headcount includes full time employees and all contractors. 2. TAM for the US Direct-to-Employer market, sourced from AM Best & Frazer Group 'Group Universe Report' 2020.

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Subscription Revenue now greater than Services Revenue

Up-sell expansion initiatives and new customer wins has seen subscription revenue growth consistent with FINEOS' strategy

120m

105m

90m

75m

60m

45m

30m

15m

0m

Total Revenue by year €m

127.2	125.0
108.3

		87.8					71.4	60.8
62.8							66.4
												1.8
		58.3
						2.0
39.5							1.8
		2.5					53.8	62.4
3.7			40.1
27.0
19.6
	FY19		FY20		FY21				FY22		FY231
					Subscription		ILF		Services

Breakdown of FY23 Revenues:

▪• Total Subscription Revenue of €62.4m

North America Cloud Subscription

grew by 15.9%

revenue up 21.3% to €20.7m

• ARR of €67.3m up 19.3% on 30 June ▪ >10 times since the FINEOS IPO

2022

on the ASX in August 2019

• Subscription Revenue growth driven by

expansion of footprint within existing customers (including upgrades to Cloud), and 3 new customer wins

• Services Revenue down 14.8% on FY22 due to a planned strategic partnership with large client to build product features in place of services

• The FINEOS growth strategy is to prioritise Subscription Revenue over Services

© FINEOS Corporation Ltd

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