Admicom Oyj: Investor presentation July 1st 2020 This presentation - - PowerPoint PPT Presentation

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

• r she is familiarized with the Company Description published on the company’s website at www.admicom.fi/sijoittajille before making any investment decision.

CONTENTS

• Vision and strategy
• Reasons why customers choose us
• Admicom in brief
• Tocoman
• Markets and competition
• Financial information
• Positive track in Nasdaq First North

CONTENTS

Our vision is to be a pioneer in developing ERP solutions for small and medium-sized companies.

Services Agriculture, forestry and fishing Manufacturing Construction

index

Productivity in Finland’s construction industry has been at the same level for 40 years.

VISION

VISION AND STRATEGY (1/2)

VISION AND STRATEGY (2/2)

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

Admicom offers the most advanced ERP and superior services to selected target groups.

STRATEGY

VISION AND STRATEGY (2/2)

Adminet boosts operational efficiency by automating manual processes and complex integrations. Information flow is seamless from production site to

• ffice.
• 1. STREAMLINING CUSTOMER BUSINESS

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.

• 2. PIONEER IN SOFTWARE DEVELOPMENT

REASONS WHY CUSTOMERS CHOOSE US (1/3)

Admicom offers the most extensive software solution to construction, building services engineering and manufacturing companies. No outside- Adminet integrations are necessary.

• 3. THE MOST COMPREHENSIVE SOLUTION

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.

• 4. PURE CLOUD ERP

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.

• 5. REAL TIME INFORMATION

REASONS WHY CUSTOMERS CHOOSE US (2/3)

”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

• perations have become. Adminet has all the tools we

need although our business is very diverse.”

Vesa Korkiakoski, CEO, OMP Group

REASONS WHY CUSTOMERS CHOOSE US (3/3)

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 (1/3)

ADMICOM IN BRIEF (2/3)

Development Building Engineering Services Building Engineering Services Construction Building Engineering Services Construction Production Lite Acquisition of Tocoman Oy 2004 - 2010 2010 – 2013 + 61 % / year 2013 – 2017 + 56 % / year 2017 – 2020 + 40 % / year Goal : > 30 % / year 2021 – 2025 Strategic work in progress 0,6 1 1,7 2,5 3,5 4,7 5,9 8,1 11,5 15,7

• 0,2

0,1 0,2 0,6 1,1 1,9 2,9 4,8 7,2

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Revenue M€ EBITDA M€

» Admicom is the market leader in its core target group; building services engineering. Admicom has strong growth in construction segment and significant potential in its most recent customer segment of manufacturing industry.

New sales by customer segments (2019)

» Approximately 89 % of Admicom’s revenue in 2019 consisted of recurring invoicing. About 66 % of the revenue came from SaaS services, 23 % from accounting services, 7 % from education and consulting services and 4 % from other services.

Revenue by services (2019)

Construction; 44% Building Services Engineering; 35% Manufacturing; 17% SaaS; 66% Accounting Services; 23% Education and Consulting Services; 7% Other; 4%

ADMICOM IN BRIEF (3/3)

TOCOMAN

• Admicom completed the acquisition of software manufacturer Tocoman Oy
• n 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.

ERP MARKETS

» Key drivers of growth and development in the ERP markets are the digitalization of financial administration and the transition from laborious ERP projects to faster and more agile solutions. » SaaS business is estimated to grow 30 % per annum whereas the traditional license software segment grows by 3 % per annum.

MARKETS AND COMPETITION (1/4)

CORE MARKETS *

MARKETS AND COMPETITION (2/4)

* Based on Admicom’s market data

COMPETITION

Admicom has many partial competitors but it remains the only one to provide extensive industry-specific SaaS ERP solution in its target groups.

MARKETS AND COMPETITION (3/4)

COVID-19 EFFECTS & NEW SERVICE 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.

MARKETS AND COMPETITION (4/4)

KEY FIGURES 1-3/2020

FINANCIAL INFORMATION (1/4)

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

KEY FIGURES 1-6/2020

FINANCIAL INFORMATION (2/4)

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.

MAIN ELEMENTS OF REVENUE GROWTH

FINANCIAL INFORMATION (3/4)

» In 2020, Admicom's goal is to keep growing

• ver 30 % so that the company's profitability

(EBITDA) will remain between 35-45 %. » Revenue growth for 2020 is estimated to be

• ver 37 %.

» Admicom aims to distribute more than half

• f 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

Revenue growth 2020

> 30 %

EBITDA 2020

35-45 %

FINANCIAL GOALS

FINANCIAL INFORMATION (4/4)

MEDIA COVERAGE

POSITIVE TRACK IN NASDAQ FIRST NORTH (1/2)

Three successfully completed directed share issues to personnel

2016, 2018 and 2019

Admicom is the Tivi-company of the year and one

• f the most profitable ICT companies in Finland.

Finnish IT publication tivi.fi, 2018

European SME Awards, Star of 2019

November 12th 2019, Brussels “Admicom truly embodies the innovation that we at Nasdaq would like to encourage and embrace” (Henrik Husman, President of Nasdaq Helsinki)

FASTEST FINANCIAL REPORTING

1 4 14 37 48 17 24 6 6 1 2

10 20 30 40 50 60 VIIKKO 1 VIIKKO 2 VIIKKO 3 VIIKKO 4 VIIKKO 5 VIIKKO 6 VIIKKO 7 VIIKKO 8 VIIKKO 9 VIIKKO 10 VIIKKO 11 VIIKKO 12 VIIKKO 13

Full year results announcements 2019 in Nasdaq Helsinki and First North

WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 WEEK 6 WEEK 7 WEEK 8 WEEK 9 WEEK 10 WEEK 11 WEEK 12 WEEK 13

Fastest audited financial reporting in 2020: Kone Oyj 28.1.2020

10.1.2020

”Admicom’s record-breaking reporting speed is unmatched – not even many unlisted companies are able to do the same.”

POSITIVE TRACK IN NASDAQ FIRST NORTH (2/2)

SaaS ERP for small and medium sized businesses