Ondo InsurTech (LSE:ONDO) — Interim results for the six months to 30 September 2025

0:00 Good morning, and welcome to the ONDO INSURTECH PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time via 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 it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll, and I'd now like to play a short video on behalf of the company. Protect your home against water damage with LeakBot. LeakBot is our twenty four seven leak detection and repair service. The LeakBot's ThermiQ technology means it can identify leaks with ease even in the most hidden places.

0:46 If a leak is detected, you'll get instant alerts thanks to our LeakBot app. LeakBot, smart technology for smarter leak detection. My name is Craig Foster. I'm the chief executive of ONDO INSURTECH. I'm joined by our CFO, Kevin Withington. Good morning. Welcome to our results presentation for the six month period to 09/30/2025. It's been a very busy six month period. It's been a very busy few days. There's a huge amount for us to talk about, so we're gonna get straight straight into it. So the agenda for today, we'll go over the results highlights.

1:35 We'll spend, most of the time talking about, The United States, and then we'll also talk about the outlook and, some of the news that we've announced over the last, day or two. So I'm gonna assume on this call that most people are aware of the company strategy, and, we're not gonna do the intro slide. We thought we'd get straight into the, into the details. So what you'll hear today is the overall results are recurring revenues of, more than doubled year on year, 110% growth to 3,600,000 on an annual recurring basis, and that's really powered by the growth in The United States. Group revenue is 2,100,000, so up 26%.

2:24 The group revenue is now 86% recurring where it was, only half of the revenue, in the same period a year ago was recurring. So it's been a big shift, and that's because of the that pricing model in The United States. The USA is not only our biggest market, but it's now over half of group revenue already from from almost a standing start just a couple of years ago. So The US business, if you look at that in isolation, has grown by seven times year on year whether you look at the customer number or the the revenue number. Group customer numbers have grown by 86 year on year, and they've just passed 200,000 as of the end of end of November.

3:10 So the expansion has been pretty rapid in The US. We were in, just a couple of states not that long ago, and now we're in 26, US states. We're gonna talk in quite a bit of detail about the challenges of that growth, about how, we've managed to execute that, and the kind of tactics on the ground in The US that we've as we've scaled the operation. Because as you all know, we're a tech business at heart, but we've also, underlying, we're a services business as well. And, scaling a services business has its own set of challenges compared to scaling a a tech business. So we'll tell you some more detail about what's been going on on the ground in The United States. So The US is now clearly our largest market. It's the engine for growth. It's the big opportunity that we've got, in front of us.

4:02 That growth in The US has been offset to some degree by, the fall in one off device fees, which are all in Europe, specifically in in The Nordics, as we've migrated away from that model. We've announced, a £2,300,000 investment to really help us accelerate US infrastructure growth and also finalize the launch of what we're now calling LeapBot Edge, a really exciting product development that helps us round out the proposition in The US and offer a truly nationwide solution across the whole of The United States. And we'll talk some more in in detail about what that project looks like. So the strategy here is really to cement our position as the market leader in The USA. We're well on our way on the trajectory to do that.

4:55 And I think now, especially with that financing agreed to accelerate that infrastructure build out and to help us add this new product, it positions us very well to capitalize on on the position in front of us. So let's get straight into into the results. So the customer overall customer number has grown by 64% year on year to a 187,000 registered customers. That's 200,000 as of today. But as you can see, this dramatic shift towards The United States where if you look at that growth, 77% of the growth, is coming from The USA. If we look at the revenue numbers, you can see here that, the overall group revenue year on year grew by 26%.

5:49 However, US revenues were up seven times year on year, and you can see the shift here. A year ago in the same interim period, 48% of our revenues were one off device fees. So, relatively speaking, lower quality revenue, driven by Europe primarily in The Nordics. That's now dropped to just 14% of our revenue, and now 86% is that high quality recurring revenue, and that's driven by The United States. You can see here 51% of overall revenue is now from The US, and you can see that growth in annualized recurring revenue here in in dollar terms. We had 400,000 annual recurring revenue in the last set of interims.

6:35 That's now just under 3,000,000. The contracted annual recurring revenue in The US at the period end was 4,400,000. By the end of November, eight weeks later, it's 5,500,000 based on a couple of contracts we we signed recently with Westfield and Indiana Farm Bureau. So when you look at the headline level, I know investors have got a couple of questions about gross margin, and about, the cash balance change in the period. So we're gonna take that head on now. I'm gonna have a look at that in some detail because it's important to understand when you pick that part actually what's what's what's going on.

7:21 Kevin, over to you. Do you want to talk first about the the gross margin? Yeah. Yeah. Good morning. So as Craig has as Craig has mentioned, the $2.12100000 of revenues are starting on the starting on the left is is 1,800,000 of of high quality ongoing recurring revenue and and point three of the Nordic one off revenue. I think what I think the key the key message is that as attached to that revenue is the cost of the plumbing repair service that we that we we provide to our customers. And and and that that cost is a function of the the re the cost of the plumber and the efficiency of the plumber in terms of how many jobs per day they they can do. And that and that ultimately drives the drives the repair costs. And as you can sort of see from the see from the slide, when it's that the underlying gross group margin is actually 54% before you add the cost of acquiring those customers in the period.

8:28 There's another do I need to click you need to click it, I think. And then when you add on the then when you add on the customer acquisition cost, which is 1,500,000, which is the cost of all devices that we have shipped in the period, whether whether they have activated or not activated, you that that brings the mar the average group margin down to just just under 16% to 15.150.5%. And the the key the key message is that the underlying group revenue is 54 a group margin is 54%, but it's the cost of acquisition that brings that down, which is a year one one off cost. The engineers across the group do one point or engineers, plumbers do one point seven one point seven jobs a day on average. But as you can see, and we'll go into this in more detail, in The US, it's currently 1.4 due to the due to the rapid rapid expansion.

9:24 So yeah. And and both those numbers, the 1.5 for cost of acquisition and repair costs is just basically the breakdown of the cost of sales that you can see you can see in the p and l. And in terms of in terms of those metrics, obviously, The UK The UK is UK and The Nordics are leading the way in terms of jobs per day. The US The US is a function of the scaling that we've we've been doing, but we understand the metrics, and we understand how that is how that model is being improved and optimized as we as we go into the go into the second half. Thanks. Kevin. So we'll we'll re loop back to some of these numbers when we go through The US results.

10:10 But like Kevin said, it's important to understand that the underlying grow gross margin before acquisition cost already in The United States is 50% even with the lower jobs per day, and we'll talk some more detail in a moment about that. But at a headline level, obviously, the gross margin looks like it's gone backwards. So it's really important to understand this in some detail. And I'll also address the 1,500,000 customer acquisition cost. Is that a good investment? We'll come on to that in a moment. Kevin, the other question we know investors are gonna have is about the cash movement in the period. Do want to touch on that as well? Yeah. Do you wanna move to the next slide? So so as at the as at the March 31 year end, the group had 4,000,004 million of cash. So what's what's happened to that over the period?

10:58 So we repaid the we paid $1,300,000 of the home served loan note, which is the vendor loan note that we've talked to talked to investors about before. That that went from $7,000,000 to 6,200,000 over the period. We built stock. So the stock balance, then you'll be able to see, and the current investors can see this from the stats. The balance at the end of the end of the period was just over £1,000,000 of stock, roundabout 52,052 units. So a net increase in stock over the period, and that were that absorbed $500,000 of cash. We had some some of the remaining warrants exercised, so that brought us in 900,000 And then we've had traded we're trading receipts of 2,500,000 which is the advances that the fee advance structure that we've got that we used to we used to fund the growth. And then there's operating expenses, so an outflow of 5,000,000.

12:04 So sort of net of those two is about is the 2,500,000 related to trading, which is close to the you know, is is the sort of EBITDA loss that we've reported in the period. So that gets us to a closing cash of 0.6. On the on the on the right hand side, you can see what the trading what the equivalent cash coming in was for the half the second half to March, which was just just over 4 or just over 4,000,000. And then you've got how many and then comparing that to the same the second half or the first half of step 30 for September 25. And so you can obviously see the the receipts are quite lumpy. Post post the interim period in the last two months, we've had another 1,500,000 that has come in on deals deals and advances that have been concluded.

12:57 The majority of that that 1.5 relates to the Westfield and the IFB extension that we've done. And, I mean, obviously, there are some there are some other movements in there. But and really, that cash we were expecting to be in the thirtieth of the the September 30. So it just missed the cutoff in in the period. So the the key the key message I would I would get across is that there was a lot of investment in stock. And and when you look at the six month period in isolation, the equivalent cash that relates to that stock investment came in after the period. So, you know and as the and actually, when you look at the equivalent period to '24, we got 1,800,000 in as a as a as a comparative number.

13:50 So it does tend to be a higher cash outflow in the first half of the year than the second half. And but we are building we are building stock for the future on in the second half and for deals we've already announced. We're not we're not concerned. Thanks, thanks, Kevin. So I think this is a really helpful picture just to spend some time understanding that properly because in The US, we obviously have a recurring revenue model. But as I think, our shareholders understand, we have a prepayment model. So the cash receipts on new orders are lumpy in nature. So if they just depending on what date they fall, they can show big variances when you're looking at, relatively tight windows like a six month, a six month period.

14:40 So it was worth just, explaining that, in in a bit more detail, I think. So let's go on to dive a bit into a bit more detail into The US. So, as you can see from the chart here, it shows the the registered customer growth, through this half year period, and you can see what that takeover has looked like, over over the last year. We work with 10 insurance partners now in in The US. We've done a lot of activity with Liberty Mutual through this period on their first order, signed a host of new contracts. We've signed some of the smaller carriers that have got big books of business in some of the states that we're in, like Bear River Mutual in Utah, Indiana Farm Bureau.

15:33 We did a really successful pilot with them. They then ex extended their contract recently, in Indiana. So this is the goal of signing carriers that have got big books of business in in specific locations where we've already entered a state led by some of our bigger carriers. Nationwide, expanded, as you know, into 16 states. We've just announced another order with them to expand, now to 26, and we've signed a couple of other bigger carriers, Westfield, and Hanover more recently. So that brings The US, customer base on that new pricing, just under 50,000 in the period that are all on that $5 or more per month recurring revenue model. So that's just under 3,000,000 in annualized recurring revenue, as we said at the start of the presentation. The contracted revenue, in The US is now, 5,500,000.

16:26 We've been in this period, the six months period, we've been, in 1,400 US homes, fixing leaks, and that's delivered a 135% return on investment for our US carriers. And we've done that while maintaining an 86 net promoter score. So as you can see from from this quote from Jeff McDonald at IFB, the outstanding results, including the strong claim savings and exceptional customer satisfaction, demonstrate the value that this innovative program provides. So this is really the key to maintaining the momentum in The US. It's continuing to deliver that exceptional customer service that homeowners love and also maintaining that return on investment for our carrier partners.

17:20 It's clear we've got the solution that The US market wants, and now the goal is to keep progressing at this same momentum and give them now what our biggest carriers want, is a fully US wide solution. Now delivering that is not without its challenges. As as we all know, The United States is a big place. You can see in this heat map the growth in the device distribution that we've that we've delivered. So it's a big ramp over a relatively short period of time. Now we say that we're in 26 active states, but an insight to share with you is that actually 80% of the volume and the repairs are actually in just 10 of the states.

18:11 And we've done that deliberately by working with our partners to focus on geographic areas and coordinate with them on the marketing so we can hire the plumbers and put them in the right place. We've obviously been doing that very carefully to manage, manage margins and, you know, manage, manage cash. We don't want to be reckless putting plumbers in places where we're not gonna deliver the revenue off the off the back of hiring them. But nevertheless, coordinating this is a kind of careful dance with with our US partners. Now an insight we talked broadly in the past about the importance of density in delivering the kind of network efficiency.

18:57 So I wanted to share with you a case study which brings this to life and and gives you a more visceral kind of feeling of what what it's like on the ground right now. So here's a comparison of two states in The US, Indiana and Virginia. So Virginia has got about 3,000 active devices, installed across the state. We're covering the whole of Virginia with a single plumber. You can see, the heat map for Indiana. Now Indiana has only got 7,000 devices, so not that many more, actually. It's relatively easy for us to ship, that delta of different you know, a few few more thousand devices into a state. The Indiana is still covered by a single plumber.

19:45 The difference is when we're scheduling the jobs, when you've got 7,000 active devices, it's relatively easier to schedule two jobs on the same day that the plumber can commute to and cover both, on the same day. So on average, our plumber in Indiana is doing 1.8 jobs per day. In Virginia, that plumber is doing 1.3, 1.4 jobs per day, on average because it's just more difficult to schedule two together on the same day. So when we talk about an increase in density, we're not necessarily talking about needing 10 plumbers in one particular state to start to drive economies of scale. Just a few more thousand devices in one area starts to lift that average jobs per day, and that has an immediate impact on gross margin.

20:38 So you can see at The US average at the moment delivering 50 gross margin, we're at 1.4 jobs per day. You can see the the split here of, the different states. So in Indiana, we're already doing 1.8. That equates to a US gross margin of 61%, all all other things being equal. Other things are gonna get better over time as well, the van leasing costs. There's other economies of scale, but this is just a like for like comparison on if you just do more jobs, per day. So the point here is the underlying gross margin is already equivalent to The UK at at just under, just 2% points off even with this, kind of suboptimal, density at the moment that will naturally get better as we expand, as we expand in The US.

21:32 So the key here is just building out that density and building out the state, the state expansion. Now this comes back to this question. I'm gonna loop back to where we started. When you look at that gross margin where Kevin started, it looks like the gross margin has gone backwards. You can see the underlying gross margin, is solid. So the question is, is this a good investment on all of these new customers in The United States? If you look at this business the way you you might as investors look at a SaaS business, and SaaS investors, I know you you you many of you have told me this. They have some simple rules of thumb about how you look at recurring revenue businesses to understand that return on investment, and we'll typically look at the lifetime value of a customer and compare that to the the straight one off customer acquisition costs.

22:25 So about the current device installation rate, the cost per new customer that we're acquiring, and I'm talking about the straight isolated costs of shipping devices and installing those devices and also accounting for all the uninstalled devices as well, it means every US customer at the moment at the current economics is costing us $54 in straight acquisition cost to activate them on day one. If you look at the lifetime value per customer, even at today's economics, if you assumed they never got any better for the next five years, an average customer will earn a $150, a $147 of gross margin over their lifetime. So that's just under a three to one ratio.

23:11 Now when you're assessing SaaS businesses, the rule of thumb is a business that has an LTV to cap ratio of around three to one is a highly investable proposition and shows that the returns are very good on that, customer acquisition cost. If you then factor in the the if you also factor in, we've got a prepayment model. So the actual cash profile of a new customer is still marginally positive. We still make about $2, positive cash margin in the first year on each of those customers as we're acquiring them. Even if nothing got better, this is a highly investable proposition in The United States. Once we pull the average up, say, in line with Indiana, that LTV per customer goes up by another $30.

23:59 The LTV to cap ratio goes up 3.3 to one. So the point being is even though we've got some suboptimal, kind of repair economics at the moment, this is already a highly investable, recurring revenue business model with no leaps of faith required. So we'll come back to the outlook in The US, in a second, but let's touch on Europe briefly. So, the focus of the company has been squarely on The United States. We've got a relatively small team on the ground in The US, so all of the team here, back in The UK have been focused on supporting The US and driving that growth. Still, we've signed some new deals, in Europe too.

24:48 We signed a deal with Aegis, another one with Admiral, a repeat order with Admiral. We've one of our most established customers is TopDenmark. They've had a merger with a bigger group, which has created one of the largest personal lines insurers in the North in the in Scandinavia now. With If, we signed an extension agreement with them, so that's created a bigger opportunity. Some of the deals that we were working on in Denmark have gone sideways, pushed out into 2026. And, also, Sweden still, although remains an opportunity in the long run, has been much, much slower than we anticipated and, hasn't hasn't taken off due to lots of reasons that we've talked about before, in the way that we originally anticipated.

25:37 So the recurring revenues are still marginally up in in Europe, 4% growth year on year, but the one off device fees from Scandinavia, particularly from Sweden, have declined significantly, year on year on year. So let's come back to The US opportunity that we've got in front of us. If you map The US today, you can see the dark green states are the states where we've got 80% of our installed base of units. That's where we're doing the majority of the repairs. The light green states are the more recent additions where we're starting to build out the volume, do the same thing that we've done with partners in the dark green states where we focus on an area, start to put more volume in, then put the plumber in place.

26:33 What our US partners are asking for is genuine US wide solution. I'm just gonna show you a quick video that Nationwide made recently. Can I have see you guys play that? I don't know. Non weather water is one of our most significant perils in home policies. Nationwide has partnered with Leakbot to really help customers identify hidden water leaks. This device is monitoring the whole home in a noninvasive way and protecting against those micro leaks that then turn into big leaks. We've already fixed, over 700 leaks in nationwide customers' homes. And as a result of that, we've got over 300 testimonials from customers, and they really can't believe that this is a service that Nationwide have offered. Hi. My name is Craig Foster. I'm the CEO of LeakBot. We set out to invent a totally new way of detecting leaks, a small sensor, and it just clips to a pipe and can detect a leak anywhere on a mains water system. This device is simple. It clips onto your water main. It's very easy to install. Other devices often require a professional plumber.

27:55 This can be done by any homeowner. Quickly downloading the app, and then you're all set, and it's immediately starting to add that extra layer of protection. The device will tell us that there's a leak. It won't necessarily tell us what's leaking or where it is, and that's why we actually send one of our plumbers into the home to then find and fix the root cause of the problem. Nationwide really are, very innovative. In terms of the smart home platform that you guys have built, that really is leading the way and quite innovative versus anything else that we've seen in in the industry. And the way you're you're integrating that data and doing your own communication to the customer to help them protect the home is really, at the forefront of what anybody is, doing in the market at the moment. So that was a promotional video that Nationwide, made themselves to market leak bots across their, sales agent community. They've been running around, NFL stadiums across The US giving out leak bots to to their agents.

28:57 They, announced recently that they're investing $1,500,000,000 in the next three years on AI and connected home technologies, and their vision is to connect the data from solutions like ours, utilize AI, and integrate that into their pricing engine, their CRM system, their underwriting, decisioning engine. So you can see how AI, is accelerating this type of change with insurers. Now we've got a great opportunity in front of us to cement our position as a market leader in The US. And we're working with some already of some of the largest insurers in The United States like Nationwide, Liberty Mutual. And now, insurers want something that they can offer all the way across The United States. So we've got two big jobs to do ahead of us. One is filling out that density of devices, building the plumbing infrastructure in those light green states, and also all of the white space states that we, we haven't entered a single device into, yet.

30:05 Now what I'm not planning to do is just hire plumbers across all of The US and wait for the volume. We'll still do this in a very coordinated way with our partners. But what we wanna do is to be able to lean in and build out that infrastructure as quickly as we can, which is obviously a big undertaking when it comes to hiring, onboarding these plumbers, training them, giving them the right the right equipment. But it's in you know, it's what our largest insurers are asking for, and that's the direction of travel. And we need to maintain that really high level of customer satisfaction and the return on investment, which is really a straight maths of making sure we do enough jobs and save enough claims for them.

30:53 The other thing is the orange states highlighted on the map along the South Of The US. So in these states, the plumbing is different. So the existing leak bot works, as you know, by the plumbing coming underground and up into the property. The device is located inside the property. So in all of the light the light blue states here, the plumbing is a lot like here in The UK, where it comes underground into the property. The the shutoff valve is inside the home. What we, what we now know is that the, the plumbing looks different in Southern California, in Texas, in Florida, and it's similar, very similar to in Australia where it doesn't freeze. So the pipes are often, like on the pictures here, outside, and then the the pipe work goes into the wall.

31:47 Now some of you may remember we've been working on a project for a while, in Australia where we've been trying to redesign our product so it can be used, in an external context. So it's a different sensor, but what we're trying to do is essentially offer the exact same solution that we know works today, something that has microleak sensitivity, a single device that can protect the whole home, can be installed without cutting the pipe, so it doesn't need a professional installation is key, and it plugs in to our plumbing service that we that we know works. Now in The US, there's 28,000,000, houses in those hot states, so it's a significant size, of The US, of The US market.

32:37 So the good news is we figured out and cracked the technology concept on how to do this. We're now ready to move to the next phase of, development. It's a process that we've done before with the development fleet, but one, we know very well how to how to do this. The device, will, clip to the pipe. Again, it's self install, and this device can detect leaks, below ten ten milliliters per minute. Similar sensitivity to the existing product, but then everything will plug into our existing operating model. The same app will just differentiate which one of the sensors you're installing. It's the same operating model, the same value proposition to our partners, the same plumbing plumbing repair service. It's a question of which is the right sensor for that specific, for that specific home.

33:33 So in terms of the work that's still left to do, we've done the hard part. So the technology concept, is done. We know how to, we know the specification for this, product. We've worked on the algorithm. The final pieces left to do are what we call design for manufacture. So this is when we, do the final piece of industrial design and optimize that so we can produce this in an manufacture it in in in the most efficient way and optimize the kind of bill of materials and the the final cost of the product. Now this is a project. That final piece is something that has been unfunded in our plan. US carriers keep asking us when are we gonna be able to launch this solution, and we were, you know, very very honest with them about, well, that final piece is not funded, we don't currently have the funding for it.

34:27 One of our customers, Indiana Farm Bureau, stepped up to the plate and offered to become a strategic investor so we could finish off finish off that design. IFB are a very happy customer based on their pilot. They are very enthusiastic about the solution. They they see a big opportunity across farm bureaus, of which there are lots across The US, and they were very keen to sponsor this project so we could, finish the job. That is the reason for the, the investment both, to help us finish off the design work, on this product and get it to launch, and also to, provide some additional strategic support so we can build out that infrastructure across The US with a path to getting to that fully nationwide solution across The US and really cementing our position as the market leader in The United States.

35:26 So that really brings me to the to the end of the formal part of the the presentation. I'm sure there's lots of questions as always. But in summary, it's obviously been a busy period. It's obviously been a busy, couple of days. I know there's been a mixed reaction from investors questioning, about the strategy, and you had lots of questions today that we've endeavored to really answer. I'm absolutely certain that the steps we've taken recently are the right thing to do for long term shareholder value. This investment is really needed to help us accelerate and give our US partners what they're asking for, and it's absolutely the right thing to do to cement that position in the in The US.

36:14 So I think we'll end the formal presentation there, and we'll go to go to the q and a. Great. Kevin, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab situated on the right hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation, along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. As you can see, we have received a number of questions throughout today's presentation. Now please ask you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end. Alright. So, Kevin, I don't know if you had a chance to look at these as they've been coming in. So we just Yeah. There's there there's a lot. There's a there's a very easy one that says that ONDO was pleased to announce his registered office change. Are there any cost implications?

37:08 No. There aren't. It was just driven by our corporate co set and moved locations. So that was a that's an easy one. CanLeap but warn users about potentially frozen pipes? It hasn't been able to, but it's actually a new feature that we're we're about about to launch. So, yes, it can as of now. Next week according to Okay. According to the team. We'll hold you to that. Yeah. Yeah. No. I checked this morning. Give me me try. What barriers to adoption it's given the great customer success so far, it would be good to understand useful to know what barriers to adoption are you seeing other than just inertia, slow decision making with insurers. Are some waiting for us to have a full national US coverage or an even longer track record with current customers, for instance? Yeah. It's a good question. So, yeah, I think it depends on the size of the insurer. So what we find is with some of the regional players, we we have a sales kind of methodology that works where we offer the senior execs a kind of quick free pilot. We give them some devices, get their feedback, show them the data that we can see for their property.

38:26 And then from there, we sign a master services agreement and agree a first order so they can try the product out at some kind of scale. For the regional carriers, usually, after that first pilot, six months later, we do a review. We show them the customer feedback that we've got. We show them the claim savings, and that typically leads to them wanting to, expand the program as much as they can into their into their customer base. For the biggest carriers in The US, that that second if they were to do the same thing as a second point, it would be hundreds of millions of dollars of investment. So there are obviously some steps along the way with the with the bigger carriers. The so the bigger insurers are able to measure the ROI on a much more statistical basis as as you get bigger and bigger.

39:17 So one of the key things is building up that dataset so we can show the ROI and continue to build confidence in addition to showing them the regular rep reports. So that model generally tends to work. In terms of what are they how did you Number seven is it's it's probably a good question that's linked into what you just said. Sorry? Number seven. Yeah. Okay. Well, yeah, let me just finish up the answer on that one. So in so in terms of barriers to adoption, the barriers to a partner doing a first order with us are often just due to bandwidth and capacity. It's often the team's working on something else. They might have an IT project. There's some other priorities within the organization. Sometimes they're doing a first deployment with the Ting, you know, the another solution that can prevent fires, and then we're in in in line to do something afterwards. So sometimes it's just down to organizational priorities.

40:15 Once we've signed a partner, the thing that we're relying on the insurer is often them doing the initial outreach and the marketing. So, again, sometimes it can just come down to bandwidth and other competing priorities. But then over time, it's just a a process of building that confidence with a partner, continuing to show them the same ROI results and the same great customer service, and then that confidence builds. And we we do, bigger and bigger deployments as we go along. So, Kevin, yes. Do do our ROI calcs include indirect claim savings, such as reductions in insurer claims handling overheads? No. They don't actually. It's a good point. So there are other benefits. That, there's retention benefits. We do a straight claim saving just on the reported, their their average severity of claim, which is the straight basically, the cash amount that would go to you as an insurance customer, if you were to to have a claim.

41:15 Any other interesting ones? Kevin, what should we anywhere else you wanna go? Ting is available to people to purchase when we'll link what we'll available. I don't think we will. We haven't got plans to make it available to purchase in The US. We're we're just focused on the on the straight b to b model with with insurers. Probably 14. What's the biggest gating factor for carriers joining the joining LeapBot or rolling out LeapBot? The biggest gating gating factor? Jumping on the band wrong. Well, they didn't really. I mean, I'm I'm not I don't I'm not sure how I'd answer that. I think it's the I mean, we're talking to a lot of carriers.

42:04 You know, some of them, it's just getting the lead into the company in the first instance and finding a way in. There's still some big carriers in the top 10 that we haven't found a meaningful way into them at a at a senior level yet. So sometimes it's just getting their foot in the door. But once you're in there, it's every insurer we've learned goes at a different pace. So sometimes the first conversation to get in a pilot lab can be quite quick. Sometimes these conversations will go on for a long time, and sometimes it's a timing thing just depending on other organizational resources. But the job that we need to do is to continue US insurers really wanna see the same thing that you guys do. It's the continued momentum.

42:49 The more that they see their peer group companies adopting this, rolling this out, the more and more traction we get with with other partners. Whenever we put an announcement out about what one insurer is doing, it tends to lead to more either inbound interest or interest with, you know, kind of warm leads asking for another conversation to to get an update on on what we're doing. So I think there's a momentum game. And and as we've talked about before, our goal is to establish ourselves as a market leading solution in in The US The US market. Why did I have to be subscribed in the placing? What's the interest from other carriers? We we have had interest from other carriers in the past, and it's sometimes the fact that we're a UK listed entity makes it difficult for them to to invest.

43:42 I for some reason, that wasn't a problem for IFP. I don't I don't exactly know the the difference. It's their legal structure. Their legal structure made it easier for them to to do it because they had an investment mutual company that could do it. So that was that that was the reason it was easier for them. So so their interest is they've got they've got some parts of their organization that sell services. Our actual commercial contract is with an entity called Peril Protect. That was in in one of the RNS that you may have seen. They offer some services across different farm bureaus. So I think there's an opportunity with IFB as well to help them to help us expand the solution with some of the other farm bureaus across across the states, of which there are many, and they tend to be very large in a in a specific state.

44:32 Kevin, 19 is one for you about inventories. Inventories, my favorite. Yeah. Need to question. I just They said inventory is built to a million pounds. Yeah. It keeps moving. What do we think the right level is? Probably at least half what it is at the moment. So yeah. So roundabout roundabout half a million, which is roundabout $25.30 thou well, 25 to 30,000 devices with the majority of that that count in The US because The US orders are bigger, and they tend to move quicker. Yeah. Why can't you tell us nationwide extended rollout will look like in terms of new numbers?

45:24 We're we we are lucky that we managed to name our insurance partners in press releases. Jim in The US, our our general manager, does remind us that in all of his experience, it's very difficult to get US partners to put their name to press releases. They allow us, I think, because we're a listed entity, so we have a regulatory duty to let let you guys know about things that material to us as a business. So there's always a conversation with partners around what they they will and will and won't let us put in a press release. So the policy with Nationwide is there hasn't ever been any volumes in any of the previous disclosures. So, you know, that's that's the reason. What are the benefits to plumbers of working for LeapBot? That's a great question. So we talk a lot about the high satisfaction of of our customers.

46:22 Our plumbers generally really like working for for Leakbot, and I think it's a couple of reasons. One is that, normally, if you're plumber, maybe you're a sole trader and you've got your own business, which is, you know, constant hustle because you gotta go find the jobs every day. If you're working for a big plumbing firm, you know, the downside of that job is there's always difficult conversations with customers about the price of extra jobs and the you know, if they're you're not meeting the customer's expectations about what you'll do for the for the price. They love working for us because the customer's expectation is often quite low when we go into the home. They're often even skeptical whether we've they've got a leak.

47:09 So when our plumber comes in and fixes sometimes multiple things in the home and there's no charge to the customer, they're often very surprised at how good an experience that has been. I put a few customer verbatims in in the deck that were all I think they all came on this in the same week in The US, but all of them are in the public domain. If you look at our Trustpilot feedback, you can have a look yourself about the the way customers react to that in home repair service. That's a nice job for plumbers to do. It's quite satisfying. And they also it's quite a high-tech plumbing job as well because we give them a whole bunch of equipment, infrared scanners that can show that's can look through walls to see leaks.

47:59 They've got our proprietary technology that they carry to be able to pressure test the property when they're on-site. So I think all of that adds up to a quite satisfying job. And, actually, in our organization, the plumbers are really the stars. My dad was a pipe fitter. My father-in-law is a plumber. I have a huge amount of respect for tradesmen, and everyone in our organization knows that we think the plumbers are the most important people because they're the ones at the front line ultimately delivering that claim saving and return on investment for our insurance partners. And that, by the way, is also the thing that our insurers love about our solution. In addition to the technology, it's the quality of the plumbers that we're putting in the homes to fix these things that is really part of our secret source.

48:52 Why is the customer I'm just going there's a lot on here, so I'm just pick picking them randomly. Why is the customer acquisition cost so high when the cost of the device is much lower? What other costs are included? So the customer acquisition cost that we were creating today also factors in the uninstalled devices. So that's the total cost. Not the periphery kind of marketing cost as well, but that's the fully loaded cost of manufacturing the devices, packaging the devices, shipping them to the country, storing them in the warehouse, shipping them on to the end customer, but also factoring in all the uninstalled devices as well. So remember, our US partners will pay us a cash prepayment on a number of the number of units that they expect to ship.

49:43 But then we activate them, and we're actually drawing down on that prepayment on activated devices from a p and l point of view. So we get the cash upfront to fund the distribution of the devices. But when it comes to recognizing that in the p and l, we take the full cost of all those uninstalled devices as well through through the p and l at the at the time. So that that basically explains why that number's higher. And that installation cost is different across the markets. It's really high in Scandinavia, often above 90%, 80% in the in The UK. In The US at the moment, it averages about 70%.

50:29 So it's our newer market. It's a bit lower. That'll keep getting better over time. We're seeing with some of our more advanced partners where they're integrating this more completely as part of their proposition, they're getting well into the into the eighties. So we we'll expect that will improve over time. But that customer acquisition cost was based on a a 70% installation rate in The US. Where do you wanna go next? Mean, I'm just picking them up randomly. With with the expansion of the share register through this raise with the recent Danish fund taking 3.6%, can you divulge the identities or the nature of these new or expanding investors. I think that is in the public domain, Kevin, isn't it? I don't think it's named yet, but, yeah, I expected to get a t r one notification because it was in an existing and a it was an existing holder that expanded, wasn't it?

51:25 Or there was one existing holder that expanded and some others. So Yeah. So yeah. I mean, the the the the investment was covered by by one of our institutions increasing their position and by this strategic investor as we talked about. I I meant to mention it, but I forgot. One of the things that you've our shareholders told me very forcefully in the past is if ever we were to raise money, we should always let retail investors participate. So we did also announce the opportunity for any retail investors to to take part through through a retail offer as well. That was absolutely based on that previous previous feedback. So I know I I I'm expecting a question on it, but I'm sure there isn't any if I look. But to to also address that, I've made it clear today what the rationale for that investment was. I hope now you've heard us explain the context of what we're trying to do in The US that that makes sense.

52:30 I know some investors were were upset because we'd said consistently that we didn't need to raise money to to get to that cash flow breakeven position. That was the case. The at this point in time, given that where we are and the opportunity we had in front of us, it made sense with that inbound strategic investor to back those projects so we could build out that infrastructure. So I hope that I hope that explanation makes makes sense. There's there's another one. Should Craig relocate to The US? Yeah. I mean, it's a it's a very good question. It there may be a point in time in the not too distant future that that might might make sense, obviously, if we continue on this this trajectory.

53:16 There's there's one on there there's one there's one on there that says, are we would we switch to US accounting standards? And we start reporting in dollars. Reporting in dollars, I would as The US business grows, I would say yes. US accounting standards, not yet. You know, I think will be the best that would be the best answer. Another one there's another one that just come up. Will our UK business suffer with the focus on The US? No. I don't think so. Yeah. I think that's that's fair. I mean, it's the the focus of the whole team pretty much is on is on The US. So, I mean, it's a good question. There is a there is a risk of that. I think it is the right emphasis for us, not just that it's a big market, but the unit economics in The US work for our preferred proposition, which is the recurring revenue model across The US.

54:17 In The UK, particularly, it's interesting. Like, you talk to US insurers. The average premium people are paying for home insurance in the in The US is $1,400 a year. In The UK, we were speaking to a major UK insurer the other day, and they said their average premium is £200 in The UK. So it's a very different market, and it means the opportunity for our preferred model is more niche in The UK. We have to target higher risk cohorts or more higher end premium properties. So there are opportunities. NFU is a good example of that where it's priced in the same way that The US deals are priced. It's a relatively large book of business, and it kinda looks like a US partner towards it from an economic point of view. So there are good opportunities in The UK, but there there there are not nearly as many of them as there are in the in The US.

55:14 Yeah. And actually, that the European team are in the Nordics at the moment, aren't they? With the with The US part Nordic part Danish partners. So The external lead bot looks very different and more expensive. Will it be priced differently? I know I just saw another question saying when do you think it will be launched? So the we've in anticipation, we've already spoke to a a range of suppliers in The US. So we've obviously got our partners that we developed the first LeapBot with. It's a kind of specialist skill to do the electrical engineering and the design for manufacture. So we'll work with a partner to to do that. We've already spoke to suppliers. My preference is to use someone in The United States given that that's the first primary market.

56:06 We spoke to range of suppliers. That's why we're confident in the costings and the timelines involved. We're saying that the aim the aim to launch is within twelve to eighteen months based on what those those partners have told us. They say what we're asking them to do now in this stage, we've done the hard part. This is relatively routine. The target is for is for the device from a manufactured cost point of view to be in a similar range to what we what we produce the existing version for. We won't know for sure until we get to the end of that design for manufacture process because the point of that process is to fully optimize both the component list and the assembly process to minimize the manufacturing costs. So we won't know exactly till we finish that job.

56:53 But when we look at the componentry involved, there's nothing radically different to the existing device from a cost point of view. So there's nothing immediately obvious that leads us to think it will be particularly more expensive than than the LeapBot one. I think we're on the I think we're on the hour. Any last questions we wanna you wanna answer on here, Kevin? I don't know. We're out of time. Is it a benchmark comparison, or is it an outlier? No. It's a good benchmark. That's why we put it in the presentation. It's the you can see on that to the scatter chart on on the slide that there's a distribution across the states at the moment, so they're all somewhere in between. But it's a great density question. As we put more devices in, the number of the the number of jobs per day naturally increase.

57:56 Yeah. And then on the on on the map of the the lighter colors, you know, those those states will go more will get get more efficient over time. And where and and I think that some of the some of the investment in the engineers, I. E, plumbers. Well, there's a good question there. I've I've hey. Just very quickly before we end the call. What data do you have that supports the average lifetime value in The US of four point nine years? Can you increase that life expectancy? So that's that's a great question. So we haven't in the decks before talked about a lifetime value per customer. It's a really important metric to understand the value of the the future cash flows that we're creating as we acquire these customers. So the four point nine years is based on obviously, this presentation is verified by lawyers. So we need to every single stat in there is supported with quite detailed process.

58:49 So the four point nine years is supported by our existing data set across the universe of devices, which equates now to over 300,000 device years of data, and it's based on an average monthly churn over all those devices of 1.7% per month. So if you do one divided by 1.7%, you get the the average lifetime of a device in months, which which equates to just under five years. Can we increase it over time? Absolutely. So part of that is to do with the insurer churn as they cancel policies. Part of it is to do with what we call technical churn if a device runs out of batteries and the customer doesn't replace it, that kind of thing. There are definitely opportunities that we'll we'll announce fairly soon that will have a significant increase on that on that lifetime as well.

59:44 Couple of questions have just come in about IAG in Australia. Would they roll out the all weather lead by edge? Yeah. So, obviously, they're the partner that we've been developing with this in in Australia. They're they're they are keen, and the testing's obviously been going well over there in in Australia. The what we were keen to do now is accelerate the development of that because it's got broader applicability, obviously, far beyond far beyond Australia as well. The other thing that I forgot to even mention in the presentation is we think the applicability is broader than just other hot climates as well. We think there may be opportunity that we can use it. It's more flexible in terms of where you can use that new sensor.

1:00:31 So we think it will also work from some rudimentary testing that we've done in apartment buildings, obviously, of which there are a lot in Western Europe, in The United States. And there isn't a good solution at the moment for apartments. So that could be another big addressable market for that solution. But day one, target number one is those the hot climate countries in in in The US. Do you wanna do 37 in terms of that was a question. Because I think you've added that to the presentation, haven't you?

1:01:17 So it was a Oh, I I see what you mean. Yeah. So annualized recurring revenue. Contracted annual annualized recurring revenue only increased from 5.9 to six in the period. That's a very good question. So as we contract revenue and then we start to install it and it hits the box as actual revenue, one offsets the other. So, yeah, do you wanna answer that, Kevin? Now since the thing The second point is the cash point, isn't it? It's Well, I think it's something. Well, I mean, the I think the question is, yeah, what what actually happened? So over the over time, you move from the run rate the the run rate at the end of the period plus the contracted the contracted position, and so it does flex. The two deals that we talked about, Indiana Farm Bureau and Westfield, that happened post period, increased that that annualized recurring revenue.

1:02:10 So between now and between September and November, it's jumped with that with that extra extra volume. So it's now I think you I think I'm sure it's added in I think it was added added into the purchase now about 6.9 with those, additional because there's additional contracted revenue. Yep. Okay. One more question then, Kevin. What about Canada? That's a good question. That's literally just come in. Do you wanna talk about that? It's good for America. Yeah. I mean, it's a it's an obvious question. So there are some big insurers in Canada, and, controversially, our American general manager likes to point out that Canada's very similar to The United States.

1:03:05 Although, since Trump tried to annex it, I think that's become quite a controversial thing to say. But, yeah, Canada is a good opportunity. But, yeah, I'd probably just add to that. Obviously, Canada is a commonwealth country, so going America to Canada is a little bit tricky at the moment in terms of the tariffs. But going UK to UK to Canada is fine, and we and it's obviously something we have looked at. That's great. Thank you for answering all those questions you can from investors. And, of course, the company can review all questions that were submitted today, and we'll publish those responses on the Investor Meet company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Craig, could I please just ask you for a few closing comments? I would just say that, hopefully, on this call, we've managed to convey, give you some more detail as to what's going on in the ground in The United States. The how it feels internally in the company is, we've made amazing progress in The US. It's been hard.

1:04:05 It's obviously difficult to scale a company like this that involves technology and involves a a services element. We're still a small company today. We're working with some of the largest insurers in The United States, and proving to them that we've got what it takes has been our primary focus. And we're really well positioned now to capitalize on that and become that market leading solution in The US. So it was with a heavy heart that I've read some of the comments and seen a mixed bag of the responses from some of you guys. I understand I understand some of those frustrations. I understand some of the questions that you've had. I hope today we've gone to some way to align some some answering some of those questions. And, I do, genuinely believe the decisions that we've taken recently are absolutely in the long term interest of all of us, of shareholders, and we've got a great opportunity, ahead of us. So thank you for your support.

1:05:04 Thank you. That's great. Thank you for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? 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'd like to thank you for attending today's presentation, and good afternoon to you all.