Ondo Insur Tech (LSE:ONDO) — Full Year Results

0:01 Good morning, and welcome to the ONDO INSURTECH PLC for your results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, and they can be submitted at any time using the q and a tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll, and I

0:31 would now like to hand you over to CEO, Craig Foster. Good morning to you. Good morning. Thanks thanks for the handover there, Alice. Good morning, everyone. Thank you for joining our full year results investor presentation. So these are talking about our results to the end of March twenty twenty five. So our very busy and important chairman sends his apologies. He's he's unfortunately just been pulled into something urgent, not related to ONDO, by the way. So he sends his apologies. So today, leading the presentation will be myself, ONDO, CEO Craig Foster, and also our CFO, Kevin Withington. So the agenda today is pretty straightforward. I assume, many investors are familiar with the company already, but we'll do a quick recap for any of you who are brand new to our story and our our business. We'll do a quick highlights of the the results, and then we'll do a bit of a deep dive into really what is the key story here, which is the progress that we've made in The United States.

1:38 We'll talk a bit about the outlook. And then today, we'll try and leave enough time for q and a. I know in the past with these webinars, we've had so much engagement with questions. We've always run out of time. So I'm gonna try and do the presentation a bit quicker today to make sure we have enough time to answer everybody's questions. So to get straight into it, our mission and vision have not changed. So we came on the market as ONDO INSURTECH in March 2022, and, our our mission and vision have been consistent. So we, are aiming to become a world leader in claim prevention technology for home insurers specifically. And our vision is a world where homes around the world, are protected by sensor technologies powered by the Internet of Things, which helps every home reduce waste, helps the planet, but protects the the assets in in those homes.

2:37 And the first problem that we are focused on is the problem caused by water leaks. So water leaks are a major problem for homeowners and a major problem for insurance companies around the world. It's typically 20 to 30% of the claims on home insurance. So that adds up to over $20,000,000,000 a year if you just look at The UK and The US as two markets. In in The United States, the average claim value, for an example, is about $14,000 per claim. And to make this real, if you think about where the plumbing is in your house, it's typically hidden from view. It's hidden in walls. It's hidden in ceilings.

3:23 And, if that pipework starts leaking, the drip starts very small, and you can't see it. And at the time when you realize it's caused damage to the property, it's when you see a wet patch on the ceiling or you realize there's some some damage to the home, and that's what triggers an insurance claim. And that's the very expensive, high value problem that's consistent to all home insurers that we are set about solving. So our solution is a unique water damage prevention system specifically designed to solve this problem. So one thing that's unique is the device itself. It's a sensor technology that we invented. It's self installed, so we send it in a post in the post to a homeowner, and a single unit can detect a leak anywhere on a mains water system. That's the technology we invented, and it's the only known way of detecting small leaks without physically cutting a pipe.

4:19 The second thing though that's unique about what we do is we pair that sensor technology with an in home repair service specifically tuned to find and fix exactly the types of leaks that cause insurers' claims. And then we report all of that

4:33 back to our insurance partners through APIs, through dashboards. So it's a system very much specifically designed for the insurance industry. So our strategy, again, has been very consistent. Our primary target is we're a b to b business. Our primary, customers are insurance companies. We operate in four key markets, The US, The United Kingdom, and, Denmark and Sweden. And we offer this as an end to end solution, driving recurring revenues, recurring service revenues into the business. And we have a clear moat around the business, a clear competitive advantage.

5:18 The sensor technology is unique. It's differentiated. It's low cost. It's self installed, and it's protected by a whole suite of IP. The integrated plumbing service is entirely unique. No one else has that expertise, and has paired that in an integrated way with, this type of sensor technology. And we can really demonstrate the return on investment to partners. And the key is we have very high customer satisfaction of the actual homeowner as well. And as I said in our last investor presentation, our immediate focus is top line growth, focus on The USA, and getting to cash flow breakeven. And I'm pleased to say we've made very good progress on all three of these things as you'll see in the results in a moment.

6:04 So a quick snapshot of the business today, The solution's in a 170 over a 170,000 homes. Contracted revenue is almost at 6,000,000. In this fiscal year to the end of March, we fixed we visited over 4,000 homes with a physical plumber going into those homes, and we fixed over 7,000 different leaks. And if you look at the value of the claims we've prevented, this adds up to over £14,000,000. We've got 54 employees now counting all of the plumbers as well. Like I say, we're active in four countries. And our net promoter score, if you're familiar with that measure, it's a pretty tough measure of customer satisfaction. It's hard to get over zero. Anything over 30 is world class. We're at an 82 net promoter score.

6:57 So let's dive into the results to the end of March. I'll hand over to Kevin in a second, but the headline is on that first strategic focus of top line growth. Revenue grew to just under 4,000,000, 44% year on year growth. The one off device fee revenue was flat year on year, and that's because our strategy has been to shift all of our revenues towards a recurring revenue subscription model. And all of our recent growth in The US is based on this model. So recurring revenues have actually grown by 80% year on year.

7:35 The customer base has grown by almost 60% to a 151,000 customers to the end of March. And like I say, that's already grown to over a 170,000 in in June post period. So I'll hand over now to Kevin to talk quickly about the p and l and the balance sheet, and then we'll explain these results through the lens of our success in America and bring that to life a bit as I know that's a crucial kind of strategic focus that our our investors are interested in. Good morning. Yes. Good morning. As Craig has said, you know, revenue overall is up 44% to $3,900,000 with the recurring revenue up 80% at $2,500,000 with an exit run rate of $3,300,000 And this is the deployed device base as at the year end on an annualized basis.

8:37 We're as we've also as we also said, our contracted recurring revenues increases this further from 3,300,000 to $5,900,000 And you can see that from our partner commitments that we've had in the deferred revenue of 2,700,000 that's shown in on the ONDO INS in note eight and and in the financial statements in note 18. So but as we've said previous and yeah. And then to to so just under 6,000,000. As we said previously, there's a split of contracts within the business with the older legacy contracts having the separate device deployment fees, ongoing smaller smaller fees for monitoring of of fees for repairs. And as Craig's mentioned, the we are actively trying to switch those to switch those to the ongoing recurring fee model.

9:30 As much as and as much as possible, we're trying to switch these onto the ongoing fee model with the twelve with the twelve months fees paid in advance to give us a positive working capital as we roll out. In terms of The USA, which we're gonna go into in a bit a bit more detail later, all the all the contracts are on a fee on the the monthly fee model at 5 or $6 a month, with The UK and The Nordics being a mixture of these older contract types. NFU in The UK is on the monthly fees, and all future contracts that are currently under discussion will be as much as possible on the same monthly fee model. Anyway, so now let's turn if you turn to the gross margin. As you can see on the slide as you can see on the gross margin slide, the gross margin has fallen from 27.5% last year to 3.1% in the year, and it was, just, I think, just over 2023% in the interims.

10:28 So what's happening? So what's happening, really? Because, obviously, that is a significant movement. It's in line with our expectations. But the first point key point to mention is the device deployment costs are fully expensed in year one. So the cost of the device and the postage to the customer is all in the all expensed in the first year, and this accounts to about 2,400,000 within the numbers, and it sits within the cost of sales number. So the mix the mix between devices in the first year and over year is key to understanding the margin. And the and this alongside the frequency of prepares for deployed devices, which is higher in year one and then halves in year two, has been a consistent trend that we've seen across all the markets that we're currently operating in.

11:19 And it's and we see and we see a similar trend in the in The US US market as it continues to evolve. So when you're in a period of rapid growth, the the margin the margin is depressed in the first year, and then it increases significantly in the second year. So the sum the very high level summary is the rapid growth in The US has negatively impacted the margin in the year, but there but that cohort of customers and of those customers that we've got in The US, I think it's just done just over 90% of them are are year one customers. But as that cohort moves into year two, I e '25, '26, the margin will improve to probably between 6080%, and that for The US market, and that will naturally increase the group margin the group margin over the as the year two, year one, year two plus mix improves.

12:22 And and this is this is in line with our expectations because we we sort of expect to see

12:31 that margin improve over time, and we expect it to take the hit in year one. But the rapid growth in The U. S. Was as expected. So turning to the turning to the balance sheet, the the key the key the key related points to note are even though the inventory even though the inventory went down year or a year on year, it was a little bit higher than than the higher than we we had anticipated. And that was just to do to do with some delays in rollout rollout in The UK. This led to us holding a higher stock level higher stock level at year end. Obviously, the cash balance at 4,000,000 was significantly better than the previous year. You know, pleased to and we are pleased to see pleased to be able to to to keep it at that level. The home serve loan note, which is a legacy of the original original RTO at 7,000,000, of that, we repaid 1,300,000, in April April twenty five, reducing the balance to 5.7.

13:37 And this was following the loan note restructure that was done, you know, done during the year. The 40% of the 25 p warrants that have now expired went to HomeServe as a a pre as a repayment of that loan. And with their expiry of the July 2020 p warrants, we're due to make a further payment further repayment to them later on in the year. So that's that's about about 300,000. So the loan note the loan note continues to continues to come down. And as noted on the slide, we have May 26 warrants that are due to due to expire at the end of May of eight hundred and sixty six thousand, and then that is that is all the warrants gone out of gone out of the business.

14:26 You know? But that's the that's the brief the brief summary. I've obviously seen there's a number of questions in the q and a, which we can obviously dig into a bit more. But for now, I'll hand back over to Craig. Very good. Thank you, Kevin. So let's talk more about the The United States. So it's worth just recapping before we show the results why The US is such, an exciting opportunity for our shareholders and, for for the company. It's not just because The US is a big market. I guess if you're in The UK, most markets look a lot bigger, in in in The US compared to, compared to the home market, But it's, it's different for us. There's another, factor of leverage here, and that's because the fundamental, structural unit economics in home insurance are different in The United States than they are in The UK.

15:20 The average premium that customers are paying in The UK, in The USA is a lot higher. So on average, $1,400 for a homeowner's insurance policy compared to, under £300 in The UK.

15:33 In The US, people buy homeowners insurance through brokers, not through comparison sites primarily. So there's a more of an emphasis on quality of coverage rather than just a race to the the bottom price. And what that means is the average amount that insurers pay out on claims is a lot higher in The US. And the reason why that's relevant for us is our model at $60 per year or, you know, 5 or $6 per month works on a mass market basis in The United States. So we don't have to target above average properties or high value homes. If we talk to a nationwide carrier in The US, our business case works across their entire book, which is why it's such an attractive opportunity for us.

16:21 So let's have a look about the how we've been doing. So the key point here is The US is already our biggest market even though we've only just really got started over there. Customer growth went up by eight times in in The US. So it's 50% of all of our new customers have come from the The States. In terms of recurring revenue, it's already 41% of our recurring revenue. It's gone up by seven times by the end of the fiscal year. And when you look at contracted revenue, it's almost 60% of our contracted revenue, and that's a 32 times increase year on year. So very rapid growth in The US, means that it's already our biggest market on a number of dimensions.

17:14 You can see that shift over time here. So the first chart shows addressable households. So this is if you look at the insurance partners that we've signed, how many homes, do they insure? How many homes can we access as part of that partnership? Back in March 23, The US was just 7% of the addressable households that we'd, we got under contract. When I presented, these results a year ago, it already increased to to 57%. It's now 80% of all of the addressable households. It's, and like I say, in terms of recurring revenue, 41%, as of March 25 and sixty percent of the contracted revenue.

17:59 Even just by March 23, it was only 2% of our recurring revenue. So you can see the very fast shift, in the in The US. So I guess that's explaining the shift in terms of charts. Another way of explaining this is just to show you, straight from our back end systems, a map that shows the devices coming online over the course of a year.

18:24 So, obviously, we've started, at the start of the fiscal year in four US states, and led by Nationwide after a successful pilot in Ohio, they expanded the program into 16 states. We're now live in 25 US states. So this next short video for it's about five seconds kinda shows illustrates that progress. So you can see the devices first. This patch here is Ohio, and then you can see the units expanding through through the through the course of the year. So you got the ones in Washington up here with mutual libenum claw, some activity on the the the on on the, East Coast. But what what worked very well here is we came up with a very collaborative plan with Nationwide so we could handle this rapid scaling in The US.

19:17 But then all of our existing partners played ball and supported it and also put new devices into all of the states where Nationwide had gone. If you look on the ground, what does this look like? Well, the great news is we've been doing, exactly the thing that delivers the ultimate value to our partners. So on the face of it, I know that we look like a technology business, but the important thing is there's also a service element that ultimately delivers this ROI for our partners. So what does this look like? In the course of the year, in The US, we fixed 1,600 leaks in customers' homes in a twelve month period.

20:02 What do they look like? There are a range of different things that we typically fix. Here's a a corroded main water line into a into a water heater. So when something like this fails, they can typically flood a basement. This is a pretty high value home, in, in the Northeast Of The US. The second example here, this is a water heater that's leaking. So, again, these often in US homes go unnoticed because they're in a basement where the homeowner doesn't normally go. We catch these early, before they've caused much damage, but when they when that pipe finally goes, that's mains water pressure, water flooding into that basement for as long until someone can can realize and turn the water off.

20:48 There's a good example here of a pinhole leak. You can actually if you look close, you can actually see the water spraying here in into into a basement. So this example, there was a leaking toilet, and what we what we train our engineers to do is not just fix the thing, but also gather some data while they're in the home. So what they'll often do is go to the room below and take some photographs to show the damage. We use thermal imaging cameras on-site to also show with the buildup of moisture, fix a lot of leaks on the sinks. I mean, many of you on the call, I'm sure you're much more tidy and organized, but, I know my kitchen sink looks a lot like this. And this is typical. These things are leak, and people won't realize.

21:36 And what looks like a small leak can quickly add up to the average of the $14,000 because by the time you replace a bit of flooring or some kitchen units, the costs quickly quickly add up. So this gives you an example of the types of things. But you'll notice all of the customer feedback here is 10 out of 10 in answer to the question, would you recommend this? How

21:59 likely would you be to recommend this to your friends and family?

22:03 And it's typical of the feedback that we get over and over again. This last example, we could have had six inches of water through the whole lower level. It could have been more than a $100,000 worth of damage. We really avoided a a disaster. So that gives you when you really zoom in and show what the guys have been, been doing, this again just shows you a slightly different view of that growth, in the Northeast Of The United States. These charts just show you zoom in a little bit on some key US cities, and show the current density of the live, devices. So So how has that added up? Well, at the end of the fiscal year, we were in 32,000 US homes. That's already above 47,000.

22:54 So I think 50% higher than that number already in The States. We delivered 11 times growth in revenue at 1,100,000. But crucially, we've saved a 134 claims for insurers with a value of 2,400,000. So a 188% ROI based on that that revenue that we've charged US insurers. And in The United States, based on 436 reviews, we've got an 83 net promoter score.

23:24 So that net promoter score went up by 20 points even though a lot of these engineers were brand new to the business, and we'd recently trained them in the Leakbot way of doing these jobs in the home. And there's a few there's a few example customer reviews all from The US name checking individual plumbers about how impressed they were with the customer service. So I'll labor this point because this has been crucial period for the business. The, US insurers were convinced that we had a unique solution that uniquely solved this problem for The US market. The next question was, okay. Let's let's try and see if it works over here, and it did. The next thing was, okay. You're a small UK based company today. Are you gonna be able to handle this if we ask you, as Nationwide did, for us to expand quickly across 16 states? We've we've categorically proven that we can handle that type of that type of growth.

24:27 So in terms of outlook then, what next in The US? Well, this is really the key. We have a unique solution to this problem. There are competitor solutions out there. I think there's a few specific questions in the q and a that I'll come on to shortly. But the the shutoff valves are very expensive, hundreds of dollars. They need a professional installation. There's no real viable commercial case for them that anyone has figured out. Even the most high net worth insurer in The US, pure underwriting, who you would imagine, they're, ensuring properties that are worth millions and millions of dollars with art collections. Surely, they would find a use case for these expensive, plumbed in systems, but even they have chosen LeapBot for their customers and expanded that across The US.

25:21 Moisture sensors are these small point sensors that go in a particular place, but they can only go where a water leak would be accessible, and you need lots of them across the house. Insurers have tried them. They don't work. They don't deliver a claim saving.

25:35 They're pretty much dead as a solution that's been offered to insurers. And finally, the other thing that you'll see a couple of the questions are about exactly this type, acoustic sensors that clamp over a pipe, and they use acoustic sensor technology to listen to water flow, but they're hundreds of times less sensitive than a LeapBot device. And the reason why that is really important is because we find the leaks when they're really small, and we fix the thing early before they've managed to cause any damage to the property.

26:09 So we've got a great opportunity. And even if we didn't sign any new partners, and we obviously fully expect that we will, and we've got some exciting pipeline developments in in in process at the moment. But even if we didn't, look at the progress we've made driven by The US. Going back to March 2023, this chart shows how many homes can we access through the partners that we've already signed.

26:39 There was a massive jump in a year when I presented these results a year ago when we signed Nationwide, the eighth biggest home insurer in The United States. We just signed them. We were just getting going in Ohio, and that doubled the number of homes that we can access globally with that one deal.

26:59 Since we talked about that a year ago, that partner's expanded from one state to 16 plus states now. They're happy with the results. They're backing our solution along with one of the solution that prevents fire damage, and they philosophically believe this is the future of home insurance. I was over at their head offices a couple of weeks ago with the president of of personal lines, and it's clear that they fundamentally believe this is where the future of insurance is going. Since then, look at where the customer number is now. It's, the addressable households has gone up by another three times as we signed, more US insurers, the most notable of which are insurers like Hanover, top 20 US insurer, and Liberty Mutual, the third largest home insurer in The United States. They, on their own, insure over 7,000,000 properties.

27:51 So 80% of that opportunity, even if we didn't sign another partner, is in The US. So we just need to execute as we are and carry on driving penetration into that, into that customer base. So one of the key things that we've been focused on is how do we, drive penetration into those customer bases?

28:17 And the way I like to characterize this is it's a it's a factor of two different things. One is it's about reinforcing the desire, of the insurance partner to deploy carry on deploying this as quickly as they can. And that's all about proving the quality of the customer experience, continuing to show the claim savings, monitoring that that return on investment, and measuring that with the partner over over time. And we've got very good at that process. And all of our partners, if you look, the partners that launched five years ago are all deploying more devices into their customer bases on on a on a, on the basis of those results. The other thing then is giving the partner the ability to deploy units, in a timely way, and that's one thing that we've been, doing more work on, recently.

29:11 So what this chart shows you on the left is the annual partner deployment velocity. So let me explain why what I mean by that. So each one of those bars represents a different US partner. And what it does is it looks at how many customers have they got in The States where we're already active today, and then it looks at how many devices are they deploying on a kinda annualized run rate basis. So if they carried on at that same rate, what percentage of that customer base would they penetrate each year? And you can see there's quite a big range here. So the fastest partner is getting into basically 10% of that customer base in a twelve month period if they continue at the same, same pace that they've been going.

29:59 Then the next best is going at 5% all the way down to the slower partners, 2%, one and a half percent a year. Now most of these, most of these activities opt in marketing. So if you're a customer of this insurer, you'll get an email, and it'll say, hey. Great news. This thing called Leakbot is now included with your policy. Would you like one? Click here, and we'll make only one for free. And it comes with a free plumbing service. We tend to get fairly consistent results on the opt in marketing. So the big difference is really just the frequence the frequency, the cadence of the campaigns. And some partners are are just better at the marketing than than others and do more activity to supplement it. So the partner going at 10% a year has just done more of those campaigns, and they've also done clever things with kind of Facebook advertising and and other supplementary advertising that's driven that response as well.

30:56 So one thing that we're doing at the moment is constantly sharing best practice across the partners, trying to push everyone towards the top end of this of the of this cadence, to accelerate the deployments into the customer base. But the the interesting thing, the resource constraint here is sometimes that we're we're fighting for resources within an internal marketing team at INSURTECH have got lots of other things to do. So they're working on all kinds of other bits of communication and marketing to the customer base. We're not the only thing that they need to, to work on. And we've actually got insurance partners today saying, look. We've seen enough. We wanna deploy this as quickly as possible. How can we get this into 50% of our customer base, but how can we do it quickly? Do we have to do a couple of years of these, opt in campaigns?

31:45 So we're testing more and more things. When a customer wants to go as fast as possible, how can we enable them to deploy the devices in a way that, in a way that works? So we're testing lots of things at the moment, and and I think the the really exciting thing is more and more ways that we can use something that we call auto ship, which is basically when the insurer just sends us a spreadsheet with the addresses, and we just mail the devices out. The, we've done it multiple times, in The US, in The UK, and the key difference is how many of those then get installed, and is that commercially viable? So we've learned a lot from that. We're testing all kinds of different things at the moment. We're testing display advertising that happens, before the device arrives, in the post. So you imagine, you see your insurer brand every time you go on Facebook or when you go use the Internet, you see display ads talking about how great this thing called Leadbot is, why it's, great for your home, and, actually, it happens to be your insurance company that's, that's partnering with this thing. And then four weeks later, you get an email saying, hey.

32:55 Great news. You're part of the program. You've been selected. This is gonna arrive in the post. And when it arrives in the post, it's fully partner branded, not LeapBot branded. Then the advertising continues, while we're encouraging you to make the the installation. And then the other thing that we're experimenting with is whether we can use third party appended data to really work out who are the customers who were just never likely to install. Are there some key of the profile of those customers, and can we use, that data to then take them out of the selection at the beginning? So all of this is about finding faster, more efficient ways that when a partner wants to go quick, we can facilitate that, as fast as possible. So this the strategy, going back to the beginning, is consistent.

33:43 It hasn't changed. We remain really focused on these core markets, specifically on The US, as we've said in the last few of these investor meetings. And I hope you can see from the results today that, we are delivering on top line growth. The focus on The US has worked. We are, very much focused on getting cash flow breakeven. We remain on track to get to EBITDA positive trading at the end of this fiscal year. And, and I think that the the highlights speak speak for themselves. So in summary, recurring revenue growing by, 80%, contracted revenue up to 6,000,000. 80% sorry. 60% of that is in The United States, and that will remain, our focus, going, going forward.

34:34 That's great. Craig, Kevin, thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated on the top right corner of your screen. And while the company take a few moments to review those questions submitted today, would I like to remind you that a recording of this presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. I'm Craig David. As you can see, we have received a number of questions throughout today's presentation. And if I may now hand back to you and kindly ask you to read out the questions where appropriate to do so, and I'll pick up for you both at the end. Thank you. Okay. Well, thank you. As always, it's great to see the level of engagement, from you all, and we always seem to run out of time. So I I'm sure I'll I'll kick Kevin digitally under the proverbial table if we waffle on too much on the on the answer to these, and we'll try and get through them.

35:25 So I think, Kevin, should we just we'll just take them in in the order they they Yeah. Yeah. No. I mean, there's there's there's There's a lot. Okay. Well, let's go. Well, yeah. Are planning on issuing more warrants after the the the last ones in 2026 expire? No. We're not. And there's also a question I saw in there about the May the May warrants. It said the 4,300,000 that's currently there, the we just announced the block list, so that's all that's left. And the question was how many were issued at the start? 5,200,000. So so Yes. No. We're not is the short the short answer to to that. The the warrants were all kind of legacy from a few years ago when we first came on the market, and so, no, we won't we won't we won't issue any new ones.

36:20 What is the cause of continuing delay with the LF rollout? When can we expect any significant numbers on lead bots to have deployed by that client? So it's always difficult talking about individual insurers too much. I think as I've said previously, they took a path where they started doing wanted to integrate our technology into their app. It was all very good. I think it's just they're quite a unique organization because it's kinda separating to essentially 21 different operating companies. So it's just taken longer than we expect, but we derisked our forecasts from that, but it is starting to get there now. So I can't really give specifics, but, I think it was just, some of the unique nature of that partner, made it didn't it didn't go quite as fast as we were expecting when we first signed the deal.

37:11 Given the exponential growth in the target addressable market, particularly in The US, what is hindering a commensurate growth in LeapBot deployments, and what steps are you taking to address this disparate gap? Well, I mean, I would, maybe take issue with the wording of the question to say, what is hindering commensurate growth. I'd say 11 times revenue growth is quite is quite speedy revenue growth. Four states to 25 states has been difficult to pull off. So I'm not sure how much faster we could have grown within a twelve month period. But I think I agree with the thrust of the question, which is the target addressable market is so big. How do we get into a bigger percentage as fast as possible? I think I probably already answered that question, hopefully. It comes down to those two things about, one, giving the insurers as much desire as possible to roll out as fast as possible, and that's all about the the API data, the dashboard data, giving them the confidence in the customer service. And I think we're good at that bit.

38:15 The other part is then giving them the right tools, and I've already talked a bit about that, about some of the things that we're doing so we can increase the kind of velocity and the speed of the marketing. When do you anticipate breakeven? They look like two different questions, actually. Could you link your offering through telecom plus customer membership? So when do we anticipate breakeven? Same answer as we've given before, Kevin, isn't it? Yeah. To to get there by the end of this fiscal year. Could you link I don't know anything about telecom telecom plus, so I'll have to have a look at that afterwards. It'd have to be a big offer, wouldn't it, to distract us from The US? Yeah. Exactly. I think, yeah, I can give a more generic answer, which is we're really trying to be ruthlessly focused on the core model and not take our eye off the ball because we've got such a big opportunity.

39:07 And there's lots of other good ideas, that crop up all the time, but there's only so much, bandwidth that we've got as a team. So we have to be quite brutally focused on on the kind of core priorities. Given The US market size and Trump's tariffs, is there economic advantage to add manufacturing capability within the territory? Kevin, do wanna answer that one? Yes. There yes, there will be. As as The US market grows and with the deployment continues to grow, then, yes, there is an there obviously is an advantage of manufacturing in The US because you obviously avoid The UK, The US tariffs. We've got as we've said before, we've got a manufacturing partner, A Steel Flash, that's got US facilities, and we have spoke to the we have talked to them about looking at US manufacture.

40:01 At the moment, we have enough capacity in The UK to to and enough capacity in The UK and a and a solid method of getting those devices to The US in orders for them to be deployed. But I suspect, you know, in in the future, a second second or a second factory in The US to meet demand, the increasing demand is definitely a possibility, and it's it's on our it's, something that we've done some feasibility work on. Thanks, Kevin. Can you provide a status update on the development of the hot weather solution, Australia and the condo apartment solution, if any, in the works. So that's a that's a good question. So I we toyed with the idea of putting a lot more detail in this investor presentation, and we decided we would save it for another day to go into a more more detail. So I'm not I'm not gonna say too much about it now other than, the testing original idea when we we so we partnered with, to recap, IAG in Australia, the largest insurance, insurer in Australia, to develop a solution that would work in that market where, because it's hot, the underground supply pipe doesn't go underground and into the house. It comes out in in the yard and then goes in in into the wall from an exterior perspective.

41:27 So we thought we could just weather seal the device and insulate it and put it there. So we tested that in Australia. It didn't work. So we had to go back to the drawing board and come up with a new idea of how we could get it to work. The short answer is we found a new way to do it. It's actually really quite interesting, but I because of where we are from an IP point of view, I can't say too much about exactly how it works. But that has now expanded into testing across Australia. It's in 50 homes now in Australia, and we're gonna test that in some other use cases as well quite soon. So I'll talk some more about that in another meeting. I'm interested to show you some some designs and and a bit more about what we think the opportunity is there, but I think we'll keep the powder dry for for another day.

42:15 Casey Kempton once said that one of the easiest ways to convert customers is to have agents use the devices. Given the agency model in The US, what are you doing to put lead bot in agents' homes? That's a great question. So if anyone's wondering who Casey Kempton is, she's the president of personal lines at Nationwide. So Casey is an interesting character. She is really leading the charge, in in, home insurance, I would say globally, in being a visionary for what the future of home insurance could look like in terms of how insurers can utilize these types of technologies to manage risk and protect customers' customers' homes.

43:01 I was in Columbus. I've been in Columbus a lot recently where Nationwide's head head offices are. And, one of the things I was doing recently is, I was invited over with the CEO of Ting, Bob Marshall, to just record, a podcast with their chief marketing officer, record a load of, video kind of Vox Pops, and they're all aimed at the agent community across The US. So I don't think they've used the the material yet. They're gonna give us access to that, so I'll be able to share that if anyone's interested. But the key there is about nationwide promoting what they're doing in smart home across that agent population because it is a different model in The States. So, improving everyone's education about that. And what Nationwide have been doing, is exactly this, is is offering some devices to get them into, the hands of agents as well. So we have been have been, have been doing this.

43:59 So there's, I'll answer a couple of questions because there's another one right here, that's kind of connected. So what's the most important thing you've learned from Bob Marshall? So, again, anyone who's wondering who who's Bob Marshall, there is a solution in The US called Ting and a company called Whisker Labs that, Bob runs. And they've been, an outsized success in in in this field of claim prevention technology in The States. So we don't compete with them. Their solution prevents household fires. So it looks a bit like a a US plug, but the BDI among you might spot some analogies here. So it's a small device. The insurance companies offer it for free.

44:47 When When it arrives in the post, you can self install just by plugging it into the mains electricity, and it detects electrical arcs in the property. So US electrics is different to The UK. It's not grounded. So if the electricity short circuits, it can cause a house fire. So the device monitors for that risk. And if it finds a risk, it connects you with an electrician. So some big analogies with, with our solution. Bob and the team have been really successful. It's in well over a million homes now in The US. And we're seeing it's actually that's very helpful for us. So what a lot of partners are doing, if if a customer's offered a Ting, they get a Leakbot automatically. So nationwide, we just start shipping Leakbots to any customer who's got a Ting, and we get really good.

45:35 So that's an example of Autoship where we get a really high installation rate. So there's an obvious kind of link between the two, prop propositions, to the point where, you know, Bob and I started speaking on a monthly basis, just kinda comparing notes and and helping each other out. So, it's a great solution. It's a great team. In terms of the most important thing I've learned from from Bob is really probably when it the penny dropped about how similar our two solutions are, that that really is the model that works because it's self install. It connects to an actual, service to really address the root cause of the problem. It delivers a demonstrable return on investment, and the Net Promoter Score is really high on the Ting solution just like just like ours.

46:26 So and then a few kind of practical things I learned from Bob about, you know, the importance of keeping the the kind of server technology costs really lean as you scale and things things like that. So it's, yeah, it's a very interesting analogous context of a company trying to do something very similar to what we're trying to do, but addressing a different peril within home insurance. I'm just gonna try and find there was another question about Nationwide. So while we're on the topic, Carl There's a quite a couple of priority questions that are probably quite related to Nationwide than others. Yeah. There there you go. So, yeah, while we're on the same topic then, Craig, you've mentioned Nationwide's leadership on predict and prevent. What is it about their leadership that's that's different?

47:16 So, again, I need to answer in a way that doesn't give away doesn't give away, you know, anything that's confidential. But I think what you can see and what Casey Kempton has said publicly is how Nationwide have set their stall out that they really think this is the future of insurance and how much they really wanna use these technologies to to protect their customers' homes. I think the thing that, again, is probably in the public domain that I can talk about is what we've seen nationwide do that's different is they've built their own, smart home platform. So they've actually built their own piece of technology in the background, and what they what that piece of technology can do is ingest all of the API data off a product like LeapBot. LeapBot is actually the first thing that they've fully integrated into the platform.

48:05 And it means that they can see in real time what we can see, from the device, but they can use that to then trigger their own custom communications and even trigger things like discounts. So what we've seen Nationwide do is they offer a smart home discount. So once you install a LeapBot, you get a premium discount on a monthly basis off your homeowner's premium, but it's actually dependent on you do certain things. So if you change your Wi Fi password and the device loses connection, Nationwide, rather than us warn you and say, hey. The device has lost connection, you'll also get a message from Nationwide saying, the device has lost connection. Can you reconnect it to Wi Fi? Otherwise, you're gonna lose your smart home discount, which is a really great way of encouraging customers to, do the right thing to protect their their home.

48:55 So, it's things like that. And I was on a I was separately invited to their their group CTO's, technical strategy away day. So I had the benefit of meeting their technical leadership across the business and getting an insight into how that, solution and what they're doing with solutions like, products like, ours and Ting and how that fits in with their AI strategy, and their vision, as an insurer about how those things fit together is really quite, quite exciting. So I do think they are a real pioneer in this area. It might be worth mentioning how Casey Kempton fits into the Nationwide structure because she's right at the top, isn't she? Yeah. I think I think so Casey's the president president of personal lines for for Nationwide, and I think she I think she reports straight into the CEO. So that's the kind of level that we're we're engaging with them in in in these companies.

49:54 Okay. Are commercial addresses too too difficult? Yeah. So we're focused on kind of single family homes today. That could change, though, with the with the Australia version that we're that we're talking about. The profitability of LeapBot kicks in in year two when the device cost is recovered. How do you solve the issue of people switching insurance providers each year? I'm not sure that is a a problem that we can solve, so to speak. I mean, people will naturally switch providers. The churn in home insurance is a lot less than things like car insurance, for example. So in The US, it's only about 10% per year. But interestingly, insurers do have evidence that by giving a customer a leak bot, it actually reduces that churn and makes the customer more sticky in the first place.

50:47 So, yeah, we inevitably lose some devices along the way as as people switch insurance. Some partners, Kevin, they do have a minimum term that's longer than a year, don't they? Yeah. And certainly in The U in The UK in The UK, we we're tied into a two or three year term where we get paid for the for the devices, mace basically, to to go against the price comparison websites, which encourage churn in The UK, whereas The US, it's more tied to agents. So the customer's relationship with their broker would which an agent in an agent or a broker in The UK would would make that relationship quite sticky. So the churn's a lot lower in The US. There's no real price comparison websites in The US. Kevin, we have we've got seven minutes left. We've epically failed on getting anywhere near answering all these questions. It's more chatting. Hundreds.

51:42 Okay. So let's try let's do rapid fire. In the recent deal with VIP HomeLink, has this been on similar terms to existing insurance partners? So we still have a contract directly with the insurer. It will be slightly higher priced than the normal deal, and the the cut on the top will give to VIP HomeLink for introducing us and orchestrating those smaller deals. How should we interpret the small print in NFU's lead bot offer, which states it's a two year free trial? They didn't wanna make it an open ended offer, so they chose to kind of backstop it at two years. But, obviously, the intention is we'll carry on going with with NFU, but that was the the just the structure of the first contract that you can see reflected in the customer terms.

52:30 Are they 20? Are you specifically, Mark Wood, still confident that lead bot or similar devices will become mandatory in due course? If so, what do you think the catalyst will be for actually making it happen? What's a realistic time frame for that? So I'll answer on Mark's behalf. So Mark absolutely thinks that's where the industry will end up. I think the reason we think that is because claims costs just keep going up. And and hitting profitability on a on a net margin basis, a combined ratio for the home insurance industry is hard. And I think climate change has put an additional pressure on margins. So where there is something that you can do to reduce risk like deploying LeapBot and making out Mandustry, I think over time, it's we we think it will happen. What evidence is that there's not a lot I can say too openly, but suffice it to say partners are actively testing things at at at the moment. So we do think this is where we'll get to.

53:41 Number 50 could have been submitted by the chairman. Number 50. I don't see that. It's on the priority. Which is more important, new insurance partners or driving density with existing partners? I'm pleased somebody I'm pleased you asked that, Ian, because I've seen some comments saying, oh, I wish Craig had never said that the that the the priority was on driving this with the existing partners because it doesn't sound very exciting. So I think that in the numbers that we've shown today, you can see how big that addressable households, how big the opportunity is, even with the partners that we've we've already signed because we've signed some of the biggest carriers in The US.

54:29 So we, as a board, we believe that ultimately our success as a company will be in those partners reordering reordering and driving penetration and deployments into their whole customer base. And as long as we get that right, growing with new partners will just naturally follow because of that momentum that we've got in the market. The thing that will stop new partners signing is if they see that, oh, wait a minute. These guys, they started and never really never really carried on deploying. So that focus is absolutely right. Have we stopped trying to sign new insurance partners? Of course, we haven't. We haven't we're not doing anything different from a new business point of view. It's just a matter of emphasis, and we wanted to make sure that we're doing everything that we can to drive penetration into the existing partners.

55:21 So but you can expect to see more more new partners joining us in Europe, but especially in The US over between now and the interims. Wanna comment on fifty one? It's quite an easy quite a How would capital one. Have appeared as a significant shareholder. Have they engaged directly with the management team? Did they undertake any due diligence? Yeah. We know the guys at Harwood very well now. We've met them many times. We were really pleased to see that they've increased their holdings recently. So I think they were on the other side of the, the the warrants, getting getting exercised. So they use that as an opportunity. I think it's it's, it's interesting because we, obviously, we would like to increase, the institutions institutions that that we've we've got, got, on on our our on our register.

56:17 The problem is, they haven't got much of an opportunity at this point because, I think when you when we first told them at the last raise that this would be the last time we were raising money, they didn't believe us. And I think now they actually realized that we were we were telling the truth. So it's difficult now for institutions other than buying on the market to to increase their holdings significantly. So I think Howard saw a good opportunity there to to mop up the the and be on the other side of the warrant transactions. So we yeah. The team there are great. They're really supportive. You know, we've we've we've spent some time with them this week. Is there concern over the lack of growth experience in The Nordics and The UK? I mean, not not particularly because quite simply, we haven't really been focused on it that much. We've we've we've kind of focused all of our resources in The US.

57:12 And the reason is, like I've already explained, because the structural economics of The US just look so attractive to us as a company. Say the difficulty in The UK is because the average premium is so low and because the average amount of underwriting on water damage is much lower than in The US, about thirty five, forty pounds per policy compared to $202,120 dollars in The States. It means that when we talk to UK insurers, we either have to talk to high mid to high net worth insurers, of which say NFU is a great example. They've got hundreds of thousands of customers where our economics work on the same basis as they do in The US. But the the thing in The US in The UK is there's not that many NFUs. There's not that many opportunities, whereas the whole of The US market is that kind of opportunity.

58:00 So the so therein lies the reason why we've, we've focused, on that market. Okay. We're almost out of time. Have you received interest from insurers in markets outside The UK, US, and Nordics? Yes. We have. We we we have a lot of interest. I think we're trying to the reason why we don't just follow that demand is it just takes time to figure out the plumbing resources, nuances in plumbing, differences between countries. So it's not that easy, but absolutely, they're all a very relevant opportunity to the company in due course. Distribution center as well, isn't it, in that country? Yeah. Yeah. You have to set up the distribution center, which takes time. Have new broker notes been released? Yes. They have.

58:50 Have forecast changed? No. They haven't. In The US, it's the biggest market by far. Pairs continues to be so. Is there any plan to list on an American stock market? Hi, Groville. Nice to hear from you for a while. There are not any plans to list on the American Stock Exchange. I think we're probably too too small for that. More for Nasdaq at the moment. But Yeah. But yeah. But may today. Yeah. Maybe one day it would it would make sense. So I think we're on on the hour, aren't we? So we might be out of time. So, yeah, there's a lot of sorry. There's still a lot of questions we haven't got around. Yes. Great. Come back to them with with written answers, though, but I do appreciate everyone's engagement.

59:39 Fantastic, Craig, Kevin. You are getting lots of questions, so we'll just end the Q and A here. And of course, the company, as Craig said, can review all the questions submitted today. I will publish those responses on the Investor Me company platform. But, Craig, before I redirect investors to provide you with their feedback, which I know is particularly important to the company, could I please just ask you for a few closing comments? I'd just like to thank everyone for their interest and and support. I do really appreciate all of our retail shareholders and some of the passion and interest that that you've got for the for the business. And I hope you can see that the team are working at 200% at the moment, really trying to deliver on the strategy that we've committed to.

1:00:27 And we're really pleased with the progress we've made in The US, and we could not be more excited about the opportunity that we have ahead. We're already transitioning to becoming an American business given that significant shift, and we have got really a very realistic opportunity to become the industry standard solution for The US market and solve that $20,000,000,000 problem as long as we just keep executing in the way that we have. But thank you, everybody, for the questions, and apologies again. We didn't we didn't manage to answer everybody's. That's great. Craig, Kevin, thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the Board can better understand your views and expectations.

1:01:17 This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of ONDO INSURTECH PLC, we would like to thank you for attending today's presentation, and good morning to you all.