Beeks Financial Cloud : Interim Results Presentation 2024

HY24 Investor presentation

March 2024

Gordon McArthur CEO

Fraser McDonald CFO

Disclaimer

The information contained in this document (the "Presentation") has been prepared by Beeks Financial Cloud Group plc (the "Company").

This Presentation has not been approved by an authorised person in accordance with section 21 of the Financial Services and Markets Act 2000 and therefore it is being delivered for information purposes only. This Presentation has not been fully verified and is subject to material updating, revision and further verification and amendment without notice. Nothing in this Presentation or in any accompanying management discussion of the Presentation constitutes or forms part of, nor is it intended to constitute or form part of: (i) an invitation or inducement to engage in any investment activity, whether in the United Kingdom or in any other jurisdiction; (ii) any recommendation or advice in respect of the ordinary shares (the "Shares") in the Company; or (iii) any offer or invitation to sell, purchase or subscribe for, or any solicitation of any such offer to purchase, sell or subscribe for, any Shares, nor shall the Presentation or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract thereof.

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The distribution of this Presentation or any information contained in it may be restricted by law in certain jurisdictions, and any person into whose possession any document containing this Presentation or any part of it comes should inform themselves about, and observe, any such restrictions. No action has been taken by the Company that would permit possession or distribution of this Presentation or any other offer or publicity material relating to securities in the Company in any jurisdiction where action for that purpose is required. Accordingly, such recipients represent that they are able to receive this Presentation without contravention of any applicable legal or regulatory restrictions in jurisdiction in which they reside or conduct business. Any failure to comply with these restrictions may constitute a violation of Canadian, United States or other national or provincial securities laws.

This Presentation may contain certain forward-looking statements with respect to the Company's expectations and plans, strategy, management's objectives, future performance, production, costs, revenues, and other trend information. These statements and forecasts involve risk, uncertainties and assumptions about the Company, its assets, its subsidiaries and investments, including, among other things, the development of its business, trends in its operating industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the Company's actual results could differ materially from those included in this document or as otherwise discussed alongside the Presentation. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in this Presentation should be construed as a profit forecast. Past share performance cannot be relied on as a guide to future performance. Any forward looking statements speak only as at the date of this Presentation and the Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Presentation.

No undertaking, representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its members, directors, officers or employees or any other person as to the accuracy, correctness, completeness or fairness of the information, including estimates, opinions, targets and other forward looking statements, contained in this Presentation and no reliance should be placed on it. Neither the Company or any of its members, directors, officers or employees nor any other person takes any responsibility for, or accepts any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the information or the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation or its contents or otherwise arising in connection herewith, or undertakes to publicly update, review, correct any inaccuracies which may become apparent, or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

Other than in accordance with the Company's obligations under the AIM Rules for Companies, the Company is not under any obligation to update or keep current the information contained in this Presentation and any opinions expressed in it are subject to change without notice.

This Presentation does not constitute an offer of securities for sale in the United States. The securities referred to herein have not been and will not be registered under the Securities Act, or with any securities regulatory authority of any state or jurisdiction of the United States, and may not be offered, sold or transferred, directly or indirectly, in the United States absent registration under the Securities Act or an available exemption from, or as part of a transaction not subject to, the registration requirements of the Securities Act and, in each case, in compliance with any applicable securities laws of any state or other jurisdiction of the United States. No public offer of the securities referred to herein is being made in the United States.

In addition, the Shares have not been and will not be registered under the applicable laws of Australia, Canada, Japan and South Africa and, subject to certain exceptions, may not be offered or sold within Australia, Canada, Japan, New Zealand or the Republic of South Africa or to any national, resident or citizen of Australia, Canada, Japan or South Africa.

Canaccord Genuity Limited ("Canaccord Genuity") is acting as nominated adviser and broker to the Company and in the provision of corporate finance to the Company, within the meaning of the Financial Conduct Authority's Conduct of Business Sourcebook ("COBS"), and no one else in connection with the proposals contained in this Presentation. Accordingly, recipients should note that Canaccord Genuity is neither advising nor treating as a client any other person and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Canaccord Genuity under the COBS nor for providing advice in relation to the proposals contained in this Presentation.

Beeks: At the Forefront of Financial Technology Infrastructure

Introduction to Beeks

Beeks is recognised as a leader in the financial technology landscape, providing specialised Infrastructure as a Service (IaaS) tailored for low latency trading in the capital markets and financial services sector.

Our core mission is to offer a technological foundation that meets the current demands of the market and is also poised for future advancements.

What We Do

Beeks is in the business of building, maintaining and analysing the digital infrastructure that allows financial transactions to occur at unparalleled speeds.

We are the backbone of low-latency trading platforms, ensuring data travels with minimal delay, crucial in a sector where milliseconds can significantly impact outcomes.

Core Focus: Infrastructure as a Service Solutions for Capital Markets

Trading Infrastructure

At the heart of Beeks is our IAAS solutions,

tailored for the fast-paced environment of capital markets

Trading Infrastructure is the cornerstone of our IaaS offerings.

Supporting the vital operations of trading platforms, Beeks provides the physical and virtual resources necessary for high-performance trading environments.

From cloud services to dedicated servers and virtual machines, our infrastructure is tailored to the dynamic needs of our clients, ensuring flexibility, reliability, and scalability.

WAN Connectivity and Low Latency Networks

Comprehensive network solutions that serve as the circulatory system for Capital Markets, designed for the rapid execution of trades to enable swift and secure data movement across the financial ecosystem.

A critical component in minimising risk and maximising profitability in the trading environment

Network Performance Analytics

Leveraging advanced analytics, to offer insights into network and trading performance, facilitating informed decision-making and enhanced operational efficiency.

Professional

Services

Designed to align with the strategic goals of our clients, offering support for network configuration, management, and security, thus reinforcing our commitment to comprehensive IaaS solutions.

Revolutionizing Capital Markets: Beeks IAAS Solutions

£1-20k

Monthly

Recurring

Private Cloud

Custom-built for financial institutions

demanding dedicated, secure, and compliant

environments. Our Private Cloud solution offers a robust foundation for running critical financial applications with guaranteed low latency and high performance.

Target Customers

Financial Institutions

Independent Software Vendors (ISVs)

Wealth Management Firms

£1-5m

TCV

Proximity Cloud

Tailored for trading entities that require ultra-low latency access to financial exchanges and market data. The Proximity Cloud ensures that our clients are as close as possible to the action, reducing execution times and increasing trading efficiency.

Target Customers

Financial Institutions

High-Frequency Trading (HFT) Firms

Proprietary Trading Firms

Brokers and Dealers

£3-20m

TCV

Exchange Cloud

A game-changer for connectivity and trading

infrastructure, offering direct access

to multiple exchanges through a single cloud

environment. This solution simplifies the

trading ecosystem, allowing for rapid scaling,

reduced complexity, and lower costs.

Target Customers

Financial Exchanges

Clearing Houses

Multi-Asset Managers

Innovative and	Scalability and	Financial	Global Reach	Security and	Rapid
Proven Technology	Adaptability	Efficiency	with Local Expertise	Compliance	Deployment

Another period of significant double-digit growth

+25%	+25%	+28%	+113%	m
£12.96m	+£1.1
£26.60m	£4.61m	£1.38m	£5.4m

						Underlying
Revenue	ACMRR*	EBITDA	Net Cash
						PBT

• Is Operational cash flow positive in H1 with increased EBITDA and PBT margins
• Strong ACMRR* provides visibility on earnings
• Growth of Tier 1 customer base with notable customer wins
• Third Exchange Cloud customer secured post-period end and successful go-live of JSE
• Land and Expand success with existing customers
• Collaboration with BlueVoyant to enhance security measures
• Increased data centre presence, focusing on existing locations

*Annualised Committed Monthly Recurring Revenue (ACMRR)

Accelerating Growth: Beeks' Land and Expand Strategy

Beeks' "Land and Expand" strategy underscores our growth in fintech. The JSE Exchange Cloud timeline illustrates swift client onboarding and top performance. Our Johannesburg deployment and JSE Colo 2.0 launch reflect our commitment to global expansion and client satisfaction, highlighting our operational prowess and varied client portfolio.

First Meeting	Deployed equipment	JSE product launch
to Johannesburg

Aug 2022

June 2023

Sep 2023

Nov 2023

March 2024

Aug 2024

Signed deal: Business case client pipeline of long-sought clients targeted over a 3-year period

Revenue	Multiple clients
generating	onboarded

On target to sell out initial solution (40% of business case target) inc. 5 NEW clients.

Streamlined client		Flawless		Upcoming		Expanded service		Proven client
onboarding		performance		enhancements		applications		acquisition
Ready to trade within 24 hours,		No production incidents		Launch of a secondary,		Successful use in		Ease of access has secured
significantly faster		or latency issues since inception,		fully managed,		post-trade connectivity		long-sought clients
than the previous 7-14 days.		fully meeting SLA standards.		and resilient solution for clients.		and test environment management.		over two years.

Continued Growth

• Continued sales growth + 25%
• ACMRR up 25% to £26.6m
• 28% growth in EBITDA vs prior period
• 2 major proximity/exchange cloud deals delivered in the period
• Improved operating profit margins due to growing revenue versus flat overhead cost base
• Statutory profit achieved (£0.2m) against a statutory loss (£0.8m) in the prior period
• Cash flow positive during the period with net cash of £5.4m versus £4.4m at June 23 and £3.3m at Dec 2022

HY Key Metrics FY22-FY24

• Underlying EBITDA is defined as earnings before amortisation, depreciation, finance costs, taxation, acquisition costs, share-based payments and exceptional non-recurring costs and excluding grant income
• Underlying profit before tax excludes amortisation on acquired intangibles, acquisition costs, share-based payments and exceptional non-recurring costs and excludes grant income

Investment Opportunity: Beeks Group

1.

20-30% Top Line Growth

Strong Growth and Stability

Beeks boasts a remarkable track record of achieving 20-30%top-line growth annually. This consistent performance highlights our ability to scale, innovate, and meet the evolving needs of the financial technology infrastructure sector.

2.

Cash

Generative

Financial Strength and Profitability

Transitioning into a profitable and cash-generative phase, Beeks now stands on solid financial ground. Our prudent financial management and strategic investments have paved the way to achieve our strategy for sustainable growth and profitability.

3.

Strategic

Partnerships

Trusted by Global Leaders

Our proven capability to secure deals with the world's largest financial exchanges underscores our expertise and the industry's trust in our solutions. These partnerships are a testament to our high-quality service, reliability, and competitive edge.

4

.

Expansive

Market

Potential

Riding the Wave of Technology

With the growing adoption of cloud services, the addressable market is expanding rapidly. Financial markets are increasingly turning to cloud computing to fulfil their needs for speed, security, and efficiency. Beeks is at the forefront of this transformation.

Join us in shaping the future of high-frequency trading infrastructure.

FY24 key objectives

∕ Convert the Exchange	∕ Continue product	∕ Achievement of greater
Cloud and Proximity	development / adding	operational leverage
Cloud pipeline	feature functionality