Qt Group Plc INVESTOR DECK 14.3.2017
Contents Qt in Brief 1 Qt Market Opportunity 2 Strategy 3 Financials 4 Summary 5
Qt in Brief
The Future is Built with Qt Touch screens Seamless User Experience Need to reach markets Software platforms and expanding everywhere across all devices faster and more cost control of data and efficiently ecosystem › Qt is used to › Software built › Qt is a powerful › Qt is used to create software, with Qt works in software create these and especially all end user framework that software user devices, it’s helps you reach platforms and experiences cross-platform your markets ecosystems faster
Qt Solves the Issues Already Today Qt solves the issues for over 70 industries today with a ready-to-ship product Most of the Top 10 Even the future of Automotive brands Qt is part of everyday digital maritime is use Qt today. life, like smart TVs built with Qt Read more Read more Read more 5
Some of the Over 5000 Customers Using Qt Today 6
Qt at a Glance 32,4 M€ >5000 2016 Revenue Customers 20 % >70 >220 2016 YoY Growth Industries Professionals in eight countries -1.7 M€ >1 M Qt Group Plc First public version Trolltech Digia acquired demerger from Digia, of Qt released by acquired by Nokia ”All rights to Qt” listed independently in Trolltech (Norway) from Nokia NASDAQ Helsinki 2016 EBIT Users 1995 2006 2008 2011 2012 2015 2016 Trolltech IPO Digia acquired Qt ”The Qt Company” to Oslo exchange Commercial becomes its own licensing business entity, a subsidiary of from Nokia Digia
Qt Market Opportunity
Qt Business Model Developer Distribution Services Support & Licenses Licenses Maintenance Each device shipped with Ensuring customer success. Annual maintenance fees and Each developer using commercial Qt libraries requires Helping Qt fit customer needs. need for support access grow as commercial Qt libraries requires a distribution license, and brings Providing architectural the license business grow. a developer license. in a per-device runtime fee . expertise. Steady revenue stream, coming mostly from desktop licenses. Embedded is growing much faster. Strong growth potential Growing as the licensing Steady revenue stream from Growing moderately, targeting because of # of devices. business grows – specifically to large existing customer base. # of developers . ensure the large distribution license deals with major OEMs. 9
Markets: The market for embedded systems is the single greatest potential area of commercial growth for Qt Global software Number of software Internet of Things and Market growth forecast development tools developers globally exponential growth of for embedded systems market 2016 2016 connected devices development tools 10 B 20 M loT 10 % US dollars (Gartner) developers (IDC) (IDC) The global software development This is expected to grow to As embedded systems become more In 2014, the market size for tools market is estimated to be USD approximately 25 million by 2020 common, the number of different embedded systems development 10B in 2016 (Gartner). (Evans Data Corp). devices they serve grows as well. tools was valued at approximately 1 billion USD (IDC, Grand View For Qt, the most important sectors of This presents a huge opportunity Research). the software development market are for a provider of cross-platform currently desktop and mobile development tools. 8-10% growth is expected to application development, and continue until at least 2020. The value for users increasingly especially the embedded comes from the software rather than systems/lnternet of Things (IoT) the device. development. 10
Exponential Growth of Connected Devices Provides a Scalable Business Opportunity for Qt The number of devices that will be made is growing much faster than the number of developers that are educated and brought into the industry Biggest growth potential for Qt lies in 1 connected device volumes The IoT trend leads to a higher demand for creating devices; with less costs and with fewer people Powerful cross-platform frameworks and tools 2 are required for the change to take place.
Strategy
Growth Factors Sales network Embedded systems and Dual-licensing expansion industries › Attracting large companies › Automotive › Cultivating strong ecosystem › Adding local presence for › Automation & IoT › Independence and control for outbound sales activities and OEMs on platform strategy › Set-Top-Box/Digital-TV industry relationships › Improving the commercial › Medical and Other Verticals › Expanding reseller network conversion especially for commercial closed embedded devices 13
Accelerating Growth through Embedded Industries ACCELERATED GROWTH SERVICES FROM INDUSTRIES › Customer › More $/device success › Industry position › Supporting › Market share Sales MOBILE EMBEDDED › Supporting › Steady growth through dev seats technology › Large growth potential (# of devices) › Maintenance › Outbound DESKTOP › Current revenue streams › Staying relevant, mostly maintenance › Moderate growth (# of developers) › Inbound 14
Financials
Key Financials 2015-2016 2016 2015 16
2016 Strong growth in the global market continued Revenue by products & services 35,0 €32,4M 30,0 License sales & consulting: €26,9M +20% 25,0 › Developer licenses, distribution licenses (runtimes) +32% €20,4M 21,1 › Consulting & other services 20,0 15,6 Support & maintenance: 15,0 10,9 › Annual maintenance fees 10,0 ** ** 11,3 11,3 5,0 9,5 0,0 2014 2015 2016 **One-off Nokia revenue Support & Maintenance License Sales & Services › 1 850K€ in the 12 months of 2014 › 1 388K€ in the first nine months of 2015 17
2021 Goal: 100M€ Revenue, >15 % EBIT 100M€ License Sales & Consulting (target 80% of revenue): 100 › 60%-p. of Revenue from License Sales – Build scalable business model with recurring revenue from Distribution licenses 75 › 20%-p. of Revenue from sustainable stand-alone Consulting & Premium Support business 80% 80M€ › Mainly from organic growth, but selective use of M&A is 50 possible to support the growth 32,4M€ Support & Maintenance (target 20% of revenue): 25 21,1M€ › Sustainable business model with automatically renewing annual maintenance for the Developer license installed base 20% 20M€ › Auto-renewals defend the existing business from customer 11,3M€ churn and bring efficiency gains in Business Operations 0 2016 2021 18
Additional Growth Investment 2017 - 2018 › Up to €10M year -on-year increase in total expenses in 2017 and 2018 each Up to › Investment supports local geographic 20 M€ presence, industry focus of growing the business and product quality 1. Growing the global sales network and 2. Product offering in selected industries Additional › Investment funded by raising capital with rights Growth issue Investment › Additional investment realized in phases, investment decisions subject to the growth 2017-2018 plan being successfully executed by the management
Strategic Goals for 2017 - 2021 Revenue EBIT › Delivering on growth strategy is the most important goal › Deliver positive EBIT in FY2019 › Selective use of M&A to support the growth › Reach EBIT higher than 15% of Net Sales in FY2021 Total expenses Dividend policy › Executing growth investments to enable top-line growth › The company’s aim is to refrain from the distribution of dividends until further notice 2016 2017 2018 2019 2020 2021 Net Sales €32,4M €100M Total expenses €34,7M Increase up to Increase up to Moderate Moderate Moderate 10M€ 10M€ increase increase increase Investment funding Existing loan Rights issue Rights issue Cash flow Cash flow Cash flow Q2/2017 Q2/2017 EBIT - €1,7M Positive > 15% of Net Sales 20
Summary
Qt Investment Highlights › Operating in large and growing markets › Internet of Things driving the growth › More devices › Touch screen everywhere › Need for cross-platform tools › Already matching market needs in over 70 industries with a mature product › Scalable technology and business model › Large ecosystem and strong network of partners
Recommend
More recommend
