www.fdtechnologies.com

FY24 interim results

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The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation, an offer to sell or solicitation of any offer to buy any securities or financial instruments in FD Technologies plc (the "Company") or any company which is a subsidiary of the Company. Further this presentation does not provide any advice or recommendation with respect to any such securities or other financial instruments.

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Forward-looking Statements

Certain statements contained in this presentation constitute forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company's financial condition, business strategy, plans and objectives, are forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including, for example, the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparable terminology. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Such risks, uncertainties and other factors include, among others: inherent difficulty in predicting customer behaviour; customers may not respond as we expected to our sales and marketing activities; the competitive environment; our ability to adapt to technological change; business interruption or failure of our systems architecture and communication systems; problems with implementing upgrades to our applications and supporting information technology infrastructure; any failure to properly use and protect personal customer information and data; our ability to manage and maintain third party business partnerships; increased regulation of our businesses; changes in laws; any failure to process transactions effectively; any failure to adequately protect against potential fraudulent activities; any significant quality problems or delays; the global macro-economic environment; the potential for one or more countries exiting the Eurozone; the implications of the EU Withdrawal Act and the disruption that may result in the UK and globally from the withdrawal of the UK from the European Union; our inability to attract, retain and develop talented people; our ability to repurchase shares; our inability to adequately protect our intellectual property rights; disruptions, expenses and risks associated with any acquisitions and divestitures; amortisation of acquired intangible assets and impairment charges; our use of debt to finance acquisitions or other activities; and the cost of, and potential adverse results in, litigation involving intellectual property, competition authority, shareholders and other matters. These forward-looking statements speak only as at the date of this presentation. Except as required by the Financial Conduct Authority, or by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise.

2

Delivering on strategy

Strategic progress in KX and expect to deliver 35% ARR growth this year

Investing to accelerate growth on strong foundations

First Derivative resilient in slower market

MRP improving through first half

Evaluating Group structure to optimise value

3

In H1 we have delivered important milestones in KX

  • KX product available on Azure, AWS, GCP and Snowflake
  • First deals closed on Azure
  • Launched KDB.AI developer edition as a SAAS product
  • Delivering KDB.AI integration with Microsoft Copilot and AWS Bedrock and global system integrator partnerships
  • Completed the build out of the leadership team

4

Foundations to accelerate growth have been built…..

  • Completed the transition from selling custom solutions to selling scalable product on cloud or on premise
  • Ease of procurement with use of CSP commits and ease of deployment with Python &
    SQL
  • Growth rates from new product areas exceeding 60%
  • Proven ability to expand existing customers and add new logos

ARR progression

Product (£m) Solutions (£m)

63%

68%

62.0

35%

38.1

22.7

16.8

20.7

18%

24.4

11%

27.2

(3%)

26.3

Actual FY21

Actual FY22

Actual FY23

Target FY24

5

Demand with cloud partners driving pipeline to deliver 35% ARR growth

in FY24

General availability across our cloud service partners (CSPs) has driven our pipeline growth and conversion rates

  • 4x increase in CSP pipeline since the start of Q2
  • Q4 CSP pipeline now as large as our direct pipeline

£m

35

30

25

20

15

10

5

0

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

Q2 24

Q3 24

Q4 24

Direct pipeline (£m)

CSP pipeline (£m)

Conversion rate (%)

60%

50%

40%

30%

20%

10%

0%

6

Demonstrated success of upsell to existing customers and winning new clients in financial services

Strong relationships with long-standing customers

Ability to land and expand with new logos

Customer since 2001

Customer since 2022

Expansion sale of

kdb+ and kdb

Insights, expanding

ARR

to new teams and

divisions

Expansion sale of

Upsell KDB.AI, kdb

kdb Insights to

Insights Enterprise

Fixed Income

team

KDB.AI

kdb Insights

Enterprise

ARR

  • Additional usage on kdb Insights and
    KDB.AI
  • Upsell kdb Insights Enterprise

kdb Insights

Enterprise

Longstanding kdb+

core customer for

£0.9m

equities team,

upsold them to kdb

kdb

Insights

Insights

kdb

£0.4m

Insights

kdb

Insights

kdb+

kdb+

kdb+

FY21

Current

Future

New logo in FY22;

£2.4m

KDB.AI

system size grown

from 0.5Gb RAM to

+10TB RAM in less

KDB.AI

than 2 years

£0.3m

kdb

kdb

Insights

kdb

Insights

Insights

FY22

Current

Future

Use case: research, trading, forecasting, and trading analytics

7

And also expand significantly within customers across other industries

For example: Healthcare..

..and Defence

Customer since 2021

Customer since 2021

Expanding Insights

• Kdb+ new use cases

kdb Insights

and new

Enterprise to

Enterprise

ARR

ARR

departments

external users

Upsell KDB.AI, kdb

Upsell KDB.AI

KDB.AI

KDB.AI

Insights / Insights

Enterprise

kdb

Upsold to kdb

£3.2m

Insights

Insights and kdb

Follow on deals for

Insights

kdb Insights

kdb Insights

new use cases

Enterprise

Enterprise

Enterprise

£2.3m

Licensing for on

kdb

kdb

premise software

kdb+ and KX

kdb+

Insights

Insights

platform

£0.1m

£0.3m

kdb+

kdb+

kdb+

kdb+

kdb+

FY21

Current

Future

FY22

Current

Future

Use case: data science for clinical trials efficiency

Use case: location intelligence, anomaly detection, data science

8

Applicable across multiple use cases in Financial Services

and other industries

Horizontal use cases

Real-Time

Analytics

Anomaly

Detection/

Similarity

Search

Data Science

Real time processing Event detection Predictive analytics Visualisation

Pattern detection Pattern matching Recommendation

Data exploration Historical analysis Reporting Visualisations

.....in Financial Services

  • Trading analytics
  • Trade execution monitoring
  • Real time risk monitoring
  • Real time visualisation and reporting
  • Trading alerts and circuit breakers
  • Signal detection
  • Trade surveillance
  • Risk management
  • Quantitative research
  • Strategy development
  • Model development
  • Back-testing
  • Forecasting

.... applied in other verticals

Manufacturing

IOT

location monitoring

Yield monitoring

Device health

Fault detection

E&U

Telco

Network flow

Self-Optimising Network

Meter tracking

Telco

IOT

Network fault detection

Object identification

Manufacturing

Alerting

Predictive maintenance

Health and Life Sciences

Fault detection

Patient identification

Telco

Manufacturing

Common failure analysis

Network capacity

Operational

planning

improvements

IOT

Health and Life Sciences

Threat detection

Drug discovery

KDB.AI enhances

outcomes, combining

structured and

unstructured data for better decision making and increased

ROI

Cyber- security & Observability

Data ingestion, network monitoring, threat detection, anomaly detection, event play back, real-time visualisation, network optimisation

9

KDB.AI combines real time and structured data with any LLM using only CPU capacity to expand existing value and enable new use cases

EXPANDING EXISTING USE CASES

Generating alpha expanded to rapid trading strategy creation: enhancing research with generative AI to create

novel trading strategies from new data sources (media, analyst reports and filings)

Algo trading expanded to algo parameter exploration:

Natural language interface to adjust algo parameters

Trade surveillance expanded to generative event detection: Augmentation of trade patterns data with voice and text communications, enhancing rules and alert engines

Predictive maintenance expanded to fault explain-ability:Auto categorisation of new "events" self-learningrules engines and natural language exploration of faults

Data science expanded to multi-dimensional data exploration: perform similarity analysis using time windows to see 'point in time' or 'progression over time' (images, numerical, text)

ENABLING NEW USE CASES

Contracts knowledge-base exploration: Interactive co-pilotfor exploration of contracts; understand changes of in-forcerules over time

Interactive client services: Combine customer service interaction information with temporal interaction data from CRM systems, transcribed conversations and other sources

Similarity search and product recommendations: Hybrid

search of product language databases along with numeric and predictive signals of interest

Code development: search, diagnose and make recommendations from proprietary code knowledge base (and changes over time)

Prompting for demand forecasting: Augment demand forecasting with natural language (web, news, social) and unstructured data (video, images, audio) to maximize insights and context

10

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FD Technologies plc published this content on 24 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2023 05:40:36 UTC.