SmartSpace Software Plc Investor Presentation Private & - - PowerPoint PPT Presentation

Investor Presentation

SmartSpace Software Plc

Private & Confidential

Our History

Smart Spaces, Smart Buildings, Smart City, Smart World

Coms Plc 2000 – started life as an AiM company, struggled to get traction. Dave Breith came in as CEO and made a number of acquisitions in 2013/2014 creating a sprawling group covering telco, video/ animation and IT infrastructure FBC joined as Chairman in July 2014

• Excessive overheads
• Loss making
• After initial excitement developed poor

reputation in public market RedstoneConnect Plc Dave Breith removed and SD, GvZ and MB joined the business. Entered phase of stabilisation followed by restructuring. 360 employees

• Sold/closed loss-making businesses
• Disposed of properties
• 26 legal entities to 6
• Rebuild trust with shareholders
• Redstone profitable
• Smart building software solutions emerge
• Acquired ConnectIB, Comensus and

Anders+Kern SmartSpace Software Plc Disposal of Infrastructure business in June 2018. MB left the business Now a pure-play software business with focus on smart environments – workplace, retail and hospitality. 71 employees

• Single identity
• SmartSpace Software plc July 2018
• 3 offices – Luton, Bristol and Mildenhall
• New organization structure
• Implement acquisition strategy
• Organic growth

2000 - 2014 2014 - 2018 July 2018

What we do

Smart Spaces, Smart Buildings, Smart City, Smart World

A unified platform with 7 modules helps our clients optimise their corporate real estate

• Desk Management
• Meeting Room Management
• Visitor Management
• Wayfinding
• Employee & visitor car-parking
• Employee engagement & loyalty
• Reporting & Analytics

Connect platform configured to customers needs covering the following areas

• Wayfinding
• Car-parking
• Loyalty Management
• Analytics

TIMS platform covering the following areas

• Ticketing
• Corporate hospitality
• Car-parking
• Loyalty Management
• Analytics

Workplace Retail Hospitality Our technology helps customers optimise their space, we operate in 3 markets:

Clients

Workplace Retail Hospitality

Recent Developments Since 1st July 2018 we have:

Smart Spaces, Smart Buildings, Smart City, Smart World

• 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

Financial Highlights

Smart Spaces, Smart Buildings, Smart City, Smart World

• Revenue from continuing operations of £1.9 million (FY18 H1: £2.1 million)
• Adjusted LBITDA* from continuing operations £1.9 million (FY18 H1 LBITDA: £0.2 million)
• Profit before tax from continuing operations £0.6 million (FY18 H1: loss £0.7 million)
• Profit from disposal of subsidiaries £1.9 million (FY18 H1: £nil)
• Basic EPS from continuing operations of 3.2 pence (FY18 H1: 3.8 pence loss per share)
• Net cash position at 31 July 2018 £13.4 million (FY18 H1: £0.8 million)

Segmental analysis:

Interim report 6 months to 31st July 2018 *Results for the period from continuing

• perations before net finance costs,

depreciation, amortisation, integration and transactional items, profit on disposal of subsidiary companies, impairment charges and share based payment charge.

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

Smart Spaces, Smart Buildings, Smart City, Smart World

Targeted acquisitions of software business

Not ‘buy and build’ – aiming for 2-4 acquisitions in next 12 months Three categories of targets:

‘Bulking Up’

Address the gaps in our current offering

‘Pay & Go’ Solutions

• Grow £ turnover
• Increase geographical reach
• Grow mid-market

customer base

• Increase development capabilities
• Product migration
• Visitor Management
• Workspace Analytics
• Bridgehead at entry level
• Rapidly increase customer base
• Cross/upsell opportunities
• Look for targets where we can

accelerate growth and increase ARPU

Smart Spaces, Smart Buildings, Smart City, Smart World

• 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

Acquisition Information

Smart Spaces, Smart Buildings, Smart City, Smart World

• 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

Potential for Growth

In Summary…

Smart Spaces, Smart Buildings, Smart City, Smart World

• 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

Appendices

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

Case Study - UBS

Commercial in confidence

Smart Spaces, Smart Buildings, Smart City, Smart World

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

Case Study - UBM

Commercial in confidence

Smart Spaces, Smart Buildings, Smart City, Smart World

Team Management

Smart Spaces, Smart Buildings, Smart City, Smart World

Chief Strategy Officer (CSO)

Keith Jump

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

How we will achieve these objectives?

Smart Spaces, Smart Buildings, Smart City, Smart World

We will continue to grow our business organically building our sales pipeline for opportunities at enterprise and mid market. Our customers will bring us to new territories and this will drive our

• rganic international growth.

Organic growth Continuous innovation of technology Acquisition

The business will sell direct through its own sales team and though an international network of

• partners. These organisations will

be segmented into 4 categories; strategic partners; integrators; resellers; and referral partners. Continuous innovation in technology is both our best form

• f strategic defence and will also

provide us with the best

• pportunity to attack our

competitors, especially those with outdated technology. We also intend to use our resources to grow our business by acquisition, and, in so doing, grow our customer base, increase our geographical reach and ensure we have a product

• ffering 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.

Sell through direct & indirect channels

Product A different vision for the market Enterprise, mid- market and entry-level solutions

We do not want to measured just by how many desk or meeting rooms we manage. To succeed we believe that we need to have products which are ‘sticky’. One way we will achieve this is to get as many employees as possible using our App for their day-to-day interaction with their company – not just booking desking and meeting rooms but other ways of engaging with their organisation. Unlike most of competitors we want to be active at 3 levels in the market – Enterprise; mid-market and entry level. By having a capable ‘pay and go’ solution it will allow us to build our customer base across the globe quickly and inexpensively. In turn, building this base of customers will create cross- and upsell opportunities and increase our SaaS revenue.

Smart Spaces, Smart Buildings, Smart City, Smart World

Differentiating ourselves from the competition

Innovative product is at the heart of what we do. Using

• ur experience from retail and hospitality we will continue

to create products that look and operate better than our

• competition. We believe we are the only vendor in the

market with a completely integrated suite of space management modules and our platform is hardware independent and can be delivered as a Cloud or on- premise solution.