Proactis Sa · EURONEXT:PROAC
Proactis Sa — FY2020 Earnings Presentation
31 slides from Proactis Sa's earnings presentation, Oct 29, 2020
Slide 1: Results for the year ended 31 July 2020
Investor Presentation Click to edit Master title Results for the year ended 31 July 2020 style Click to edit Master subtitle style Tim Sykes, CEO Richard Hughes, CFO
Slide 2: Disclaimer
Disclaimer These presentation slides and the accompanying verbal presentation (the “Presentation Materials”) do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the PROACTIS Holdings PLC (the "Co
Slide 3: Key messages and highlights
Key messages and highlights Click to edit Master title Year ended 31 July 2020 style Click to edit Master subtitle style Tim Sykes, CEO Richard Hughes, CFO
Slide 4: Key messages
Key messages PROGRESSING WELL AGAINST OUR STRATEGY: Core financial value proposition Click to edit Master title Continued delivery on returning the group to growth with record year in new business performance and return to organic growth in underlying ARR Revenue Forward style ROBUST THROUGH CHALLEN
Slide 5: Highlights
Highlights Strategic Financial Strategic new business wins in each of DE and FR In line with pre-COVID guidance Click to edit Master title Pipeline build is good Early adopters identified for bePayd platform Reset of bank facility, now fully funded for mid-term - Revenue £49.6m (2019: £54.1m); - Adj
Slide 6: COVID-19 impact
COVID-19 impact Operationally robust No disruption to customer service levels Click to edit Master title Mix of teams working from home or in office depending on country specific guidance All teams well connected and engaged Set up to continue to deliver effectively style COVID-19 revenue impacts la
Slide 7: Growth strategy
Growth strategy Click to edit Master title Year ended 31 July 2020 style Click to edit Master subtitle style Tim Sykes, CEO Richard Hughes, CFO
Slide 8: Momentum building in growth strategy
Momentum building in growth strategy Objective: Objective: Objective: Objective: Click to edit Master title Maximise existing customer and technology opportunity Accelerate new Business Spend Management momentum Objective: Roll-out bePayd Drive adoption of existing supplier paid products Extend supp
Slide 9: Target market
ERP Target market used Transformational projects managed by large Click to edit Master title Tier 1 / Global consultancy firms e.g. KPMG, Deloitte etc. on behalf All of prospect and often part of a larger organisational • Mid-market Oracle change programme • Goods, services, contingent labour style
Slide 10: Mid-sized organisation positioning
Mid-sized organisation positioning Strategic need Go-to-market process Click to edit Master title Strategic corporate activity Commitment to digitalisation Unit4 Business World MRI – Sector Specific Epicor Direct Engagement Mid-Tier Consultancies ERP system deficiency Corporate Microsoft AX, NAV Per
Slide 11: bePayd is live with a growing pipeline
bePayd is live with a growing pipeline Progress Click to edit Master title Product is live Deployable as buyer funded, Proactis funded or blend Early adopters identified, contracting and planning for implementations What is bePayd? Platform to help suppliers get paid more quickly than style - One Pr
Slide 12: Commercial update
Commercial update Click to edit Master title Year ended 31 July 2020 style Click to edit Master subtitle style Tim Sykes, CEO Richard Hughes, CFO
Slide 13: TCV performance
TCV performance FY20 FY20 FY19 FY19 Record year in TCV wins Total No. Total No. - £14.6m, being a 29% from 2019 TCV Deals TCV Deals Click to edit Master title UK delivered a normal H2 performance after a slow H1 (run rate c.£8-10m pa) NL business as usual Business Spend Management United Kingdom £6.
Slide 14: ARR performance – Group
ARR performance – Group Strong performance in core business where non- £’m 2019 Growth/(Loss) 2020 HRAs) Click to edit Master title volume related ARR grew by 8% (includes £1.6m from Volume-related contracts impacted by COVID-19 Non-volume related contracts Volume-related contracts* 26.2 13.1 8% (12
Slide 15: ARR performance
ARR performance £’m 2019 Growth / (loss) 2020 Decrease of £0.7m in UK United Kingdom 14.6 (5%) 13.9 - Slow new business in H1 (TCV £2.0m), normalised in H2 (TCV £4.6m) - - Click to edit Master title Negative volume-related impact from COVID-19 of £0.3m Churn of £1.2m slightly larger than normal Grow
Slide 16: HRA analysis
HRA analysis £’m ARR Heightened Risk Accounts defined at 31 July HRA risk identified Click to edit Master title Contract converted to multi-year deals upon renewal 5.0 (1.6) 2019 following a full risk assessment of Group’s customer/product base: £5.0m ARR One-off exercise, no new additions Customer
Slide 17: Churn analysis
Churn analysis FY20 FY20 FY20 FY19 UK - Returning to normalised levels (no items >£0.1m) £’m underlying HRAs Total Total Click to edit Master title - Budget FY21: £0.8m United Kingdom 1.2 - 1.2 2.4 FR France 0.2 0.2 0.4 1.1 - Underlying churn normal - Budget FY21: £0.9m (incl. £0.4m relating to HRAs
Slide 18: Financial update
Financial update Click to edit Master title Year ended 31 July 2020 style Click to edit Master subtitle style Tim Sykes, CEO Richard Hughes, CFO
Slide 19: Financial highlights
Financial highlights £’m FY 2020 FY 2019 YoY movement Click to edit Master title Revenue 49.6 54.1 (9%) Adjusted EBITDA 11.8 15.1 (22%) Adjusted Operating profit 4.0 8.8 (55%) style Adjusted EPS (pence) 2.9p 6.6p (56%) Adjusted net free cash flow 0.9 6.9 (87%) Value of new customer wins and upsell d
Slide 20: Reported to Adjusted analysis
“Reported” to “Adjusted” analysis FY 2020 FY 2019 Comment Reported operating (loss) / profit (£18.4)m (£24.4)m Click to edit Master title Non-core net expenditure Intangible impairment and amortization Share-based payment charges £2.8m £19.3m £0.3m £1.2m £31.5m £0.5m Principally restructuring and in
Slide 21: Summary and outlook
Summary and outlook Click to edit Master title style Click to edit Master subtitle style Tim Sykes, CEO Richard Hughes, CFO
Slide 22: Summary
Summary Delivering well against our strategy, transformation of business is on track but COVID- Click to edit Master title 19 is slowing the rate of acceleration Record year in new business performance style Strategic new business wins in each of DE and FR Churn reduced substantially Return to organ
Slide 23: Outlook
Outlook A profitable, cash generative, SaaS based software company with growing ARR in an Click to edit Master title exciting growth market Cognisant of the broader environment: COVID-19 risks being monitored closely, but business model is resilient style Business spend management pipeline is strong
Slide 24: Appendix
Appendix Click to edit Master title style Click to edit Master subtitle style
Slide 25: Consolidated income statement (extracts)
Consolidated income statement (extracts) FY 2020 (£m) FY 2019 (£m) Revenue 49.6 54.1 Direct cost of sale Click to edit Master title Staff and operating expenses Depreciation and amortization (5.4) (35.5) (12.3) (6.7) (34.1) (10.7) Impairment of goodwill Operating profit Net finance expenses style (1
Slide 26: Consolidated cash flow statement (extracts)
Consolidated cash flow statement (extracts) FY 2020 (£m) FY 2019 (£m) (Loss) / Profit after tax (19.4) (26.5) Click to edit Master title Depreciation, impairment and amortization Other non-cash items (forward contract movement and share based payment charges) Net finance expenses and income tax cred
Slide 27: Consolidated balance sheet (extracts)
Consolidated balance sheet (extracts) FY 2020 (£m) FY 2019 (£m) Non-current assets 124.9 138.5 Cash Net working capital Income taxes Click to edit Master title 5.5 1.8 0.1 7.7 1.5 - Short-term finance obligations Net current assets style Deferred revenue (non-cash obligations) (1.4) 6.0 (18.4) (3.2)
Slide 28: Consolidated net debt
Consolidated net debt FY 2020 (£m) FY 2019 (£m) Secured bank loans Convertible loans Click to edit Master title Non-current 41.7 6.1 Current 0.9 - Total 42.6 6.1 Non-current 41.0 5.5 Current 3.2 - Total 44.2 5.5 US Government loan Finance lease liabilities Total borrowings style 0.4 - 48.2 0.4 1.3 -
Slide 29: Consolidated goodwill and intangible assets
Consolidated goodwill and intangible assets Business Spend Management Supplier Global £m 2020 Click to edit Master title United Kingdom United States France Germany Nether- lands Transac- tions Proactis Tenders bePayd Total style Goodwill 31.5 8.2 1.3 2.4 11.1 6.5 13.0 - 74.0 Other intangible assets
Slide 30: Share register
Share register Holding Lombard Odier Investment Managers 29% DBAY Advisors Rodney Potts Click to edit Master title 15% 9% Gresham House GAM Holding AG style 6% 5% Click to edit Master subtitle style
Slide 31: Click to edit Master title style
Click to edit Master title style Click to edit Master subtitle style Tim Sykes – CEO +44 (0)1937 545 070 Richard Hughes – CFO AlmaPR Rebecca Sanders-Hewett Sam Modlin, David Ison +44 (0)20 3405 0205 [email protected]