INFRONT ASA Q3 2019 Results 27 November 2019
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Presenters and agenda Kristia tian Nesbak ak CEO & Co-founder Agen enda da • Q3 2019 Highlights • vwd Transaction • Operations Review Max x Hofe fer • Financial Review CFO • Summary ir@infrontfinance.com 3
Q3 2019: M&A driving strong revenue growth Complet eted ed vwd Gro roup up acquis isit ition ion to become a top-three hree financi ncial al • Quarterly terly re revenue ue termi minal al pro rovider ider in Eu Euro rope EUR million • Rev even enue e of EUR 25.3 million ion, up 256% % fro rom EUR 7.1 milli lion in Q3 30 30 2018 2018 25.3 +256% • vwd Group the main contributor to growth with revenue of 25 25 EUR 14.8 million in period from the acquisition date 17 July 20 20 • Adjusted sted EBITDA 1 1 of EUR 2.9 milli lion n compare ared d to EUR 1.2 milli lion n in Q3 2018 15 15 • Adj. EBITDA before IFRS 16 implementation of EUR 2.3 million 10 10 7.1 • Number r of pro rofessi fessional al termina inals ls and solutio tions s users s increased reased 5 to 91.0k 0k fro rom 17.8k in Q3 2018 • Driven by inclusion of Infront Italia and vwd Group 0 Q3 Q3 18 Q3 Q3 19 4 1) EBITDA Q3 2019 adjusted for M&A-related costs of EUR 3.8 million.
Achieving our strategic ambitions Successfu ful l execut ution ion of our ambitio itious us long-term rm strat ategy gy... .. ...is is clearly rly re reflected ted in key figures Q3 2018 8 Q3 2019 9 ~2.5x ARR 1 EUR 28.4m EUR 98.8m Profess essio iona nal l 17.8k 91.0k ~4x Users Adj. EBITDA EUR 1.2m EUR 2.9m ~1.5x No. countr ntrie ies s 7 13 ~2x with offic ices es 5 1) ARR = annual recurring revenue; revenue based on subscriptions amount to 97% of total Group revenue in the period. Calculation for Q3 2019 based on inclusion of vwd Group from 17 July 2019.
Successfully completed the vwd Group acquisition in July 2019 Completed d on 17 July 2019 and consolidated olidated fro rom that at date • Final l purc rchase hase price of EUR ~130 milli lion n on an enterp rpris rise value • basis bond 1 in Finance nced d thro roug ugh issue ue of a four-year ear EUR 105 milli lion bond • April l and an ove oversub ubscrib ribed d NOK 242 milli lion n right hts issue in June 2019 2019 Repor ortin ting g curre rency ncy changed ged to EUR fro rom NOK • • Segment nt re reportin ting g adjusted ted to re reflect new gro roup structu ucture: : • Infront Solutions and Terminal • vwd Group • News and Other 1) Senior secured bond with EUR 200m maximum borrowing limit and a floating coupon of 3m EURIBOR + 5.75% p.a.. Final maturity of the instrument is 15 May 2023. 6
Creating the leading European provider of financial market data Diversifie ified d re revenue ue base with h ~91 000 pro rofes fessio ional nal users, • ~3 600 custo tomers, , bro roade der pro roduc uct t offe feri ring ng and more re markets Highly ly complement ntar ary operatio ations with th signific ificant nt cro ross- and • upsell lling ing opportu tunit itie ies Exposure ure to the gro rowing ing re regulat latory techn hnolo ology gy segment nt as well l • as the wealth lth and asset t managem gement nt market t • More re than n 500 employ oyees in 13 count ntrie ies • Platf atform rm for gro rowt wth h acro ross Eu Euro rope pe and in other markets ts Source: Company information, Burton Taylor 7 1) EMEA financial data terminal market
Integration process underway and initial synergies realized Total tal annual l sav aving ings potent ntial ial of EUR 8.5-11m ident ntif ifie ied Identified savings EUR m Realized savings* • Integr grat ation ion work ongoing ng with h focus on effic icie ient nt transi nsitio tion n to joint nt pro roduct platfo tform and combin inat atio ion n of servic ices and pro rocesses 12 6.0-8.5 8.5-11 11.0 • Technology platform, organization, products and services • Consolid olidat atio ion n of data ta fe feeds ds and licenses accord ordin ing g to plan 10 • Annual cost savings of EUR 2 million expected to be realized over the initial 12 months from optimization efforts 8 • Additionally, EUR 0.5m in other short-term Opex savings • Good traction in efforts and progress as envisaged 6 • Fu Furth ther estim timat ated EUR 6.0-8.5 .5 million ion in tot otal l cost t sav aving ngs to be achieved ove over the next t 24-36 months hs 4 • Additional operational efficiencies and scaling from strengthened position and product offering, and expanded reach in Europe 0.5 2.0 2 0 Data cost savings Short-term savings Long-term savings Total cost savings (12 months) (24-36 months) (realized and identified) * Annualized value of realized savings as per Q3 2019 8
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