Admicom Oyj: Investor presentation January 10th 2020 This presentation is not a Company Description described in the Securities Markets Act (746/2012). This presentation is solely for information purposes and is not intended to form part of or be the basis of any decision making by its recipients. The information contained herein shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Several risks are associated with investing in the company’s shares, many of which can be significant and are related to the operating environment and nature of company. If an investor is considering investing in the company’s shares, it is advisable that he or she is familiarized with the Company Description published on the company’s website at www.admicom.fi/sijoittajille before making any investment decision.
CONTENTS CONTENTS Vision and strategy Reasons why customers choose us Admicom in brief Markets and competition Financial information Positive track in Nasdaq First North
VISION AND STRATEGY (1/2) VISION Our vision is to be a pioneer in developing ERP solutions for small and medium-sized companies. index Productivity in Finland’s construction industry has been at the same level for 40 years. Agriculture, forestry Services Manufacturing Construction and fishing
VISION AND STRATEGY (2/2) VISION AND STRATEGY (2/2) STRATEGY Admicom offers the most advanced ERP and superior services to selected target groups. Most advanced ERP (Adminet) • Cloud service • Highly automated • Most extensive solution for customer industries • Constant development and regular updates Superior services • Safe maintenance and back ups, zero downtime • Best industry expertise • Efficiency and reliability • Packaged services
REASONS WHY CUSTOMERS CHOOSE US (1/4) 1. STREAMLINING CUSTOMER BUSINESS Adminet boosts operational efficiency by automating manual processes and complex integrations. Information flow is seamless from production site to office. 2. PIONEER IN SOFTWARE DEVELOPMENT Admicom boosts digitalization in its customer industries by offering the best practices in the field. Strong focus to specific customer segments has led to superior solutions.
REASONS WHY CUSTOMERS CHOOSE US (2/4) 3. THE MOST COMPREHENSIVE SOLUTION Admicom offers the most extensive software solution to construction, building services engineering and manufacturing companies. No outside- Adminet integrations are necessary. 4. PURE CLOUD ERP Customers can use Adminet in an internet browser anytime and anywhere. Our ERP is a modular system and customers can choose the most beneficial application combination. 5. REAL TIME INFORMATION Thanks to advanced automation, unique project revenue recognition logic and all in one solution, our ERP is able to produce real time information and the right metrics for business management.
SERVICES REASONS WHY CUSTOMERS CHOOSE US (3/4) CUSTOMER SERVICE ACCOUNTING SERVICES SOFTWARE SERVICES We help our customers We offer reliable, industry- We take care of our customers all manage all their functions with specific and 100% paper-free the way from system one automated cloud service. accounting and payroll services. implementation and support to business development.
REASONS WHY CUSTOMERS CHOOSE US (4/4) ”Adminet has been one of the prerequisites for our growth to be possible at all.” Hannu Kauppi , CEO, HSK Sähkö Oy ”Currently we have fewer administrative employees than before, even though our revenue grew almost 4 million euros last year.” Malik Bentaieb , CEO, LTU Group Oy ”We are more than pleased with how much easier our operations have become. Adminet has all the tools we need although our business is very diverse.” Vesa Korkiakoski , CEO, OMP Group
ADMICOM IN BRIEF (1/3) 100 % Finnish software company Founded in Jyväskylä in 2004 More than 17 000 active Adminet users Close to 90 % of revenue is recurring monthly invoicing Over 140 employees in Jyväskylä, Vantaa, Tampere and Oulu
ADMICOM IN BRIEF (2/3) 2017 – 2020 2021 – 2025 + 40 % / year Strategic work in progress Goal : > 30 % / year Building Engineering Services Construction Production 2013 – 2017 Lite + 56 % / year 15,7 Building Engineering Services Construction 2010 – 2013 11,5 + 61 % / year Building Engineering Services 8,1 7,2 2004 - 2010 5,9 Development 4,8 4,7 3,5 2,9 2,5 1,9 1,7 1,1 1 0,6 0,6 0,2 0,1 0 -0,2 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Revenue M€ EBITDA M€
ADMICOM IN BRIEF (3/3) » Admicom is the market leader in its core target group; » Approximately 89 % of Admicom’s revenue in 2019 building services engineering. Admicom has strong growth consisted of recurring invoicing. About 66 % of the in construction segment and significant potential in its most revenue came from SaaS services, 23 % from accounting recent customer segment of manufacturing industry. services, 7 % from education and consulting services and 4 % from other services. New sales by customer segments (2019) Revenue by services (2019) Other; 4% Manufacturing; 17% Education and Consulting Services; 7% Accounting Services; 23% Construction; 44% Building Services SaaS; 66% Engineering; 35%
MARKETS AND COMPETITION (1/3) ERP MARKETS » Key drivers of growth and development in the » SaaS business is estimated to grow 30 % per ERP markets are the digitalization of financial annum whereas the traditional license administration and the transition from software segment grows by 3 % per annum. laborious ERP projects to faster and more agile solutions.
MARKETS AND COMPETITION (2/3) CORE MARKETS
MARKETS AND COMPETITION (3/3) COMPETITION » Admicom’s main competitors are industry- specific ERP-systems, mainly local in Finland Competitive landscape » Other competitors are financial management software that are integrated with smaller software or mobile/web applications such as Excel, time reporting, invoicing, offer calculation etc. » Currently, there are no other players in the market who can offer as extensive and industry-specific solution for the same target groups.
FINANCIAL INFORMATION (1/4) KEY FIGURES 2019 Admicom Oyj 1-12/2019 1-12/2018 Change-% Turnover, 1 000 € 15 641 11 456 37 % EBITDA, % of revenue 46 % 42 % 49 % Operating profit, % of revenue 42 % 37 % 54 % Profit for the period, % of revenue 34 % 28 % 63 % Return on equity, % 38 % 45 % Return on investment, % 48 % 59 % Equity ratio, % 81 % 82 % Gearing ratio, % -100 % -95 % Earnings per share, EPS € ** 1,09 0,68 Earnings per share, EPS € (adjusted*) ** 0,73 Balance sheet total, 1 000 € 20 147 13 776 Amount of shares at the end of the period, 1 000 4 883 4 838 Employees at the end of period 145 113
FINANCIAL INFORMATION (2/4) PROFIT AND LOSS STATEMENT 2019 1 000 EUR 1-12/2019 1-12/2018 TURNOVER 15 641 11 456 Other operating income 52 13 Variable costs -540 -437 Staff expenses -6 056 -4 734 Depreciation and reduction in value -541 -505 Other fixed operating costs -1 942 -1 502 OPERATING PROFIT (-LOSS) 6 613 4 291 Financial income and expenses Other interest income and other financial income 18 15 Interest and other financial expenses -3 -230 PROFIT (LOSS) BEFORE APPROPRIATIONS AND TAXES 6 629 4 076 Income taxes -1 338 -823 PROFIT (LOSS) OF THE FINANCIAL YEAR 5 291 3 252
FINANCIAL INFORMATION (3/4) BALANCE SHEET 2019 12/2019 12/2018 12/2019 12/2018 1 000 EUR 1 000 EUR ASSETS EQUITY AND LIABILITIES NON-CURRENT ASSETS CAPITAL AND RESERVES Intangible assets Share capital 106 106 570 760 Capitalized development costs 9 489 7 665 Other reserves 242 372 Intangible rights 1 441 317 Retained earnings / loss 8 0 Other intangible assets 5 291 3 252 Profit / loss of the financial year 203 280 Company goodwill CAPITAL AND RESERVES IN TOTAL 16 327 11 341 Tangible assets 243 140 Machinery and equipment CREDITORS NON-CURRENT ASSETS IN TOTAL 1 265 1 552 Short-term creditors CURRENT ASSETS 131 132 Trade creditors Inventory 699 528 Other creditors 13 15 Raw materials and consumables Accruals and deferred income 2 990 1 775 Short-term receivables CREDITORS IN TOTAL 3 821 2 435 1 798 1 285 Accounts receivables 20 147 13 776 EQUITY AND LIABILITIES IN TOTAL 71 46 Other receivables Prepayments and accrued income 679 103 Cash at bank 16 322 10 775 CURRENT ASSETS IN TOTAL 18 882 12 224 20 147 13 776 ASSETS IN TOTAL
FINANCIAL INFORMATION (4/4) FINANCIAL GOALS » In 2020, Admicom's goal is to keep growing over 30 % so that the company's profitability Revenue growth EBITDA 2020 2020 (EBITDA) will remain between 35-45 %. 35-45 % > 30 % » Admicom aims to distribute more than half of its earnings as dividends to its owners, without risking the growth strategy or other financial targets defined in the strategy. Dividend per share > 50 % of profits
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