Admicom Oyj: Investor presentation July 1st 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 Tocoman 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 (1/3) 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 (2/3) 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.
REASONS WHY CUSTOMERS CHOOSE US (3/3) ”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 20 000 active Adminet users Close to 90 % of revenue is recurring monthly invoicing Over 170 employees in Jyväskylä, Vantaa, Tampere and Oulu
ADMICOM IN BRIEF (2/3) 2017 – 2020 + 40 % / year 2021 – 2025 Goal : > 30 % / year Strategic work in progress Building Engineering Services Construction Production Lite 2013 – 2017 Acquisition of Tocoman Oy + 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%
TOCOMAN • Admicom completed the acquisition of software manufacturer Tocoman Oy on March 10th. Of the purchase price, EUR 7.3 million was paid in cash and approximately 3 million (41,923 Admicom Oyj shares) as a directed issue to Tocoman's parent company Tocoman Group Oy. • Tocoman acquisition accounted for 15 % of growth in H1. • On April 15th Admicom announced that the employee co-operation negotiations held at Tocoman Oy led to termination of three employments. • The planned changes to Tocoman operations began to be implemented in the second quarter, but most of the positive effects on operations will be seen in 2021. The first phase of product integration is in operation and more advanced integration is scheduled to be in piloting during this autumn.
MARKETS AND COMPETITION (1/4) 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 (2/4) CORE MARKETS * * Based on Admicom’s market data
MARKETS AND COMPETITION (3/4) COMPETITION Admicom has many partial competitors but it remains the only one to provide extensive industry-specific SaaS ERP solution in its target groups.
COVID-19 EFFECTS & NEW SERVICE MARKETS AND COMPETITION (4/4) RAMPING UP 90% of Admicom’s revenue is recurring billing so the COVID-19 did not affect it dramatically. In new sales, however, the challenges have clearly increased and there are more uncertainties among existing customer base. Our operations were adapted to the changed circumstances and special attention was given to supporting the profitability of our customers. In the autumn Admicom is also launching a new Adminet cash flexibility service (=short term financing) to facilitate our customers' cash management in the crisis.
FINANCIAL INFORMATION (1/4) KEY FIGURES 1-3/2020 Admicom Oyj 1-3/2020 1-3/2019 Change-% 2019 Turnover, 1 000 € 4 866 3 427 43 % 15 641 EBITDA, 1 000 € 2 043 1 314 56 % 7 155 % of revenue 42 % 38 % 46 % Operating profit, % of revenue 1 818 1 171 55 % 6 613 % of revenue 37 % 34 % 42 % Profit for the period, % of revenue 1 419 937 51 % 5 291 Employees at the end of period 172 122 145 Earnings per share, EPS € 0,29 0,19 1,09
FINANCIAL INFORMATION (2/4) KEY FIGURES 1-6/2020 Admicom Oyj 1-6/2020 * 1-6/2019 Change-% 2019 Turnover, 1 000 € 10 738 7 664 40 % 15 641 EBITDA, 1 000 € 4 639 3 512 32 % 7 155 % of revenue 43 % 46 % 46 % Operating profit, % of revenue 4 029 3 228 25 % 6 613 % of revenue 38 % 42 % 42 % Profit for the period, % of revenue 3 136 2 581 22 % 5 291 Employees at the end of period 172 129 145 Earnings per share, EPS € 0,64 0,53 1,09 * The figures include Tocoman Oy's data for the period 1.3. - 30.6.2020. Tocoman Oy had 19 employees at the end of the period.
FINANCIAL INFORMATION (3/4) MAIN ELEMENTS OF REVENUE GROWTH
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 % » Revenue growth for 2020 is estimated to be over 37 %. » Admicom aims to distribute more than half Dividend per share of its earnings as dividends to its owners, > 50 % of profits without risking the growth strategy or other financial targets defined in the strategy.
POSITIVE TRACK IN NASDAQ FIRST NORTH (1/2) MEDIA COVERAGE European SME Awards, Star of 2019 November 12th 2019, Brussels Three successfully completed directed Admicom is the Tivi-company of the year and one “Admicom truly embodies the innovation that we at of the most profitable ICT companies in Finland. share issues to personnel Nasdaq would like to encourage and embrace” (Henrik Husman, President of Nasdaq Helsinki) 2016, 2018 and 2019 Finnish IT publication tivi.fi, 2018
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