SmartSpace Software Plc Investor Presentation Private & - PowerPoint PPT Presentation

SmartSpace Software Plc Investor Presentation Private & Confidential

Our History 2000 - 2014 2014 - 2018 July 2018 RedstoneConnect Plc SmartSpace Software Plc Coms Plc Dave Breith removed and SD, GvZ and MB Disposal of Infrastructure business in June 2000 – started life as an AiM company, joined the business. Entered phase of 2018. struggled to get traction. Dave Breith came in stabilisation followed by restructuring. MB left the business as CEO and made a number of acquisitions in 360 employees Now a pure-play software business with focus on 2013/2014 creating a sprawling group covering smart environments – workplace, retail and telco, video/ animation and IT infrastructure  Sold/closed loss-making businesses hospitality. FBC joined as Chairman in July 2014  Disposed of properties 71 employees  26 legal entities to 6  Excessive overheads  Single identity  Rebuild trust with shareholders  Loss making  Redstone profitable  SmartSpace Software plc July 2018  After initial excitement developed poor  3 offices – Luton, Bristol and Mildenhall  Smart building software solutions emerge reputation in public market  New organization structure  Acquired ConnectIB, Comensus and  Implement acquisition strategy Anders+Kern  Organic growth Smart Spaces, Smart Buildings, Smart City, Smart World

What we do Our technology helps customers optimise their space, we operate in 3 markets: Workplace Retail Hospitality Connect platform configured to customers needs TIMS platform covering the following areas A unified platform with 7 modules helps our covering the following areas clients optimise their corporate real estate  Ticketing  Wayfinding  Corporate hospitality  Desk Management  Car-parking  Car-parking  Meeting Room Management  Loyalty Management  Loyalty Management  Visitor Management  Analytics  Analytics  Wayfinding  Employee & visitor car-parking  Employee engagement & loyalty  Reporting & Analytics Smart Spaces, Smart Buildings, Smart City, Smart World

Clients Workplace Retail Hospitality

Recent Developments Since 1st July 2018 we have:  Rebranded as SmartSpace Software Plc  Introduced employee EMI share option scheme  Reorganised management team  Appointed CTO and CCO, Steven Black to CRO and Keith Jump to CSO  Continue to secure customer wins  Acquired SwipedOn October 2018 Smart Spaces, Smart Buildings, Smart City, Smart World

Financial Highlights Segmental analysis: Interim report 6 months to 31st July 2018 *Results for the period from continuing • Revenue from continuing operations of £1.9 million (FY18 H1: £2.1 million) operations before net finance costs, • Adjusted LBITDA* from continuing operations £1.9 million (FY18 H1 LBITDA: £0.2 million) depreciation, amortisation, integration and • Profit before tax from continuing operations £0.6 million (FY18 H1: loss £0.7 million) transactional items, profit on disposal of • Profit from disposal of subsidiaries £1.9 million (FY18 H1: £nil) subsidiary companies, impairment charges and • Basic EPS from continuing operations of 3.2 pence (FY18 H1: 3.8 pence loss per share) share based payment charge. • Net cash position at 31 July 2018 £13.4 million (FY18 H1: £0.8 million) Smart Spaces, Smart Buildings, Smart City, Smart World

Financials Income Statement: Interim report 6 months to 31st July 2018

Financials Balance Sheet: Interim report 6 months to 31st July 2018

Financials Cash Flow: Interim report 6 months to 31st July 2018

Financials Profit of disposal: Interim report 6 months to 31st July 2018

Growth by Acquisition Targeted acquisitions of software business Not ‘buy and build’ – aiming for 2-4 acquisitions in next 12 months Three categories of targets: ‘Bulking Up’ ‘Pay & Go’ Solutions Address the gaps in our current offering  Grow £ turnover  Bridgehead at entry level  Increase geographical reach  Rapidly increase customer base  Visitor Management  Grow mid-market  Cross/upsell opportunities  Workspace Analytics customer base  Look for targets where we can  Increase development capabilities accelerate growth and increase ARPU  Product migration Smart Spaces, Smart Buildings, Smart City, Smart World

Acquisition Information • First acquisition since disposal • Visitor management solution • 2,279 SaaS customers, monthly subscription • Revenues growing 100% YoY with 100+ new customers added every month • Clients in 39 countries focus on US, UK, Canada & Australia • Addresses functionality gap in our portfolio and gives us our first ‘pay and go’ solution • Customer Acquisition Cost (“CAC”) of NZ$609 with a Life Time Value (“LTV”) of NZ$6,700 Smart Spaces, Smart Buildings, Smart City, Smart World

Potential for Growth • Grow customer base and increase SaaS revenue • Target English-speaking markets initially • Increase ARPU by adding new modules – meeting room, car parking and courier management • Enter non English-speaking markets • Upsell opportunity for mid-market and enterprise solutions amongst SwipedOn customer base • Offer more advanced meeting room to enterprise and mid-market offerings Smart Spaces, Smart Buildings, Smart City, Smart World

In Summary…  Exciting opportunity to create a SaaS business in workspace optimisation  Restructured business which is well-funded  Use proceeds from disposal of infrastructure business for targeted acquisitions  Excellent customer base including blue chip enterprise clients  Operating at three levels - enterprise, mid-market and entry level  Sticky revenue, high margin  Experienced management team  Significant growth potential in all markets Smart Spaces, Smart Buildings, Smart City, Smart World

Appendices

Case Study - UBS OneSpace enabled UBM to cut their occupancy from 7 floors to 5 • The freeing of two floors allowed UBM to sublet the space • Space utilisation increased from 40% to 88%+ • Energy saving on the 5 retained floors was 57% • Operating cost savings reached £1.5m per floor per year • ROI achieved a desk ratio of 1:1.4, with a peak of 1:1.6 Smart Spaces, Smart Buildings, Smart City, Smart World Commercial in confidence

Case Study - UBM By adopting OneSpace, UBS have put their employees at the heart of their real-estate policy.  Deployed desk management and Wayfinding  10,000 desks managed across the UK and US  Supporting the adoption of agile working for 8500 employees  A desk to colleague ration of 1:1.3 with further savings to come  Monitoring workplace utilisation at different levels: desk, neighbourhoods, departments and the buildings themselves  Easily integrated with their Citrix environment to enhance occupancy measurement data  Wayfinding incorporated to make it easy for agile workers to navigate different workspaces Smart Spaces, Smart Buildings, Smart City, Smart World Commercial in confidence

Team Management Spenc ncer er Dredge dge Guy Van Zwanenberg nenberg Frank nk Beec echinor hinor Diana na Dyer er-Bart Bartlet lett ( CFO) (Chairman) (CEO) (Independent NED) Plc Board Frank nk Beec echinor hinor Operational Board Chief Executive Officer (CEO) Alex Rehm Chief Stev eve e Batten en Spenc ncer er Dredg dge Keith h Jump Stev even en Blac ack Chief Technology Strategy Chief Customer Chief Financial Chief Strategy Chief Revenue Officer (CTO) Officer (CCO) Officer (CSO) Officer (CFO) Officer (CSO) Officer (CRO) (joins 29/10/18) (Joined 10/9/18) Keith Jump Smart Spaces, Smart Buildings, Smart City, Smart World

How we will achieve these objectives? Sell through direct Continuous innovation of & indirect technology Acquisition channels Organic growth We will continue to grow our Continuous innovation in The business will sell direct We also intend to use our business organically building our technology is both our best form resources to grow our business through its own sales team and sales pipeline for opportunities at of strategic defence and will also though an international network of by acquisition, and, in so doing, enterprise and mid market. Our provide us with the best partners. These organisations will grow our customer base, customers will bring us to new opportunity to attack our be segmented into 4 categories; increase our geographical reach territories and this will drive our competitors, especially those strategic partners; integrators; and ensure we have a product organic international growth. with outdated technology. resellers; and referral partners. offering that appeals to our customers. Our intention is to target acquisitions that enable us to increase the size of the group, address functionality gaps in our current offering (visitor and analytics) and to have a ‘pay and go’ SaaS offering at entry level end of the market. Smart Spaces, Smart Buildings, Smart City, Smart World