Babylon SPAC Presentation Deck slide image

Babylon SPAC Presentation Deck

Consolidated Statement of Profit and Loss (Cont'd) For the Years Ended December 31, $ in thousands Revenue 1 Cost of Care Delivery 2 R&D and Technology Expenses 3 Sales, General & Administrative Expenses Operating Loss 4 Net Finance Costs 5 Exchange Rate Gains/ (Losses)(1) Share of Loss of Equity-accounted Investees Loss Before Taxation 6 Tax Benefit / (Provision) Net Loss 2019A 16,034 (19,810) (68,153) (90,891) (162,820) (101) 17,075 (145,846) 5,559 (140,287) 2020A 79,272 (67,254) (84,188) (103,341) (175,511) (3,920) (2,836) (1,124) (183,391) (4,639) (188,030) 1 Increase in 2020 following launch of Value Based Care services in US; further increases in the UK, Canada and Rwanda due to increased demand for appointments 2 3 4 Summary of Historical Performance 6 Increase in 2020 due to increased amortization following the launch of Licensing services in Asia and the US; technology headcount reduction in 2020 following mid- year restructuring Increase in 2020 due to higher headcount in commercial and support services aligned to business growth; increased professional fees from FCMG acquisition and deployment of Babylon services into new markets Finance costs relate primarily to lease obligations and the accounting for certain Licensing services when upfront payments are received from customers 5 Exchange rate loss primarily due to fluctuation between USD and GBP (majority of Babylon revenue received in USD, majority of expenses paid in GBP); exchange rate gain in 2019 results from majority of business operating in GBP despite the functional currency being USD The change in tax (provision)/benefit is primarily the reversal of previously recognized tax benefits of $4.3M related to U.K. tax credits for qualifying R&D activities, which will be amortized over the useful life of the related capitalized development costs as a reduction to R&D technology expense Source: Management reporting. Note: 1) Gain includes those resulting from inter-company relationships with significant GBP balances within USD companies translated at rates in accordance with IFRS. 93
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