Inin Group As · OSL:ININ
Inin Group As — Elop AS — Q1 2021 Earnings Presentation
35 slides from Inin Group As's earnings presentation, May 6, 2021
Slide 1: Company Presentation Q1 2021
COMPANY PRESENTATION Q1 2021 Øivind Horpestad, Executive Chairman, Elop AS Bård Myrstad, VP Simplifai 6 May 2021
Slide 2: Q1 Highlights and subsequent events
Q1 Highlights and subsequent events Q1 HIGHLIGHTS SUBSEQUENT EVENTS • Several contract wins for Simplifai: • Strategically important industrial partnership agreed with Terratec (Nordics+) • Breakthroughs in India and Singapore • Covid–19 continues to affect the business • Public sector: National Arc
Slide 3: Group in brief
Group in brief Solutions to inspect, monitor Elop AI business unit and manage infrastructure Data-driven and AI-based solutions for inspection and Develops automation Unique technology for inspection and analysis of predictive maintenance of solutions using artificial intelligence to help clients cr
Slide 4: Elop establishes a holding structure
Elop establishes a holding structure CURRENT STRUCTURE FUTURE STRUCTURE Elop Holding AS 5
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Slide 6: Simplifai: Elop's AI business unit
Simplifai: Elop’s AI business unit Norwegian AI Company HQ in Oslo, 108 FTE’s Tech: AI, Natural Language Technology, AI Natural Language Processing (free-text) Verified: Microsoft Partner Products: Emailbot, Documentbot, and BOTS Chatbot Services: Digital Employees SaaS Business Model: Building recu
Slide 7: Global NLP market estimated to $12bn, growing at 20% p.a.
Global Natural Language Processing (NLP) market estimated to $12bn, growing at 20% p.a. Global NLP market1 • Natural language processing is necessary in several business processes which utilize e.g., the following 35 tools: Portals, Email, Customer service software, Docs, CRM +20% • Has historically
Slide 8: Simplifai's unique position facilitates early adoption of AI technology
Simplifai's unique position facilitates early adoption of AI technology 6-month payback, 150% ROI first year Low Low-cost implementation Simplifai Efficient tool for processing Digital structured information. Tool Employee High automation grade built for technical users Easy to use implementat
Slide 9: Digital Employees ensures end-to-end automation
Digital Employees ensures end-to-end automation Interact Inte rpre t conte nt a nd inte nt De cide Act AI Chatbot Documentbot Decision Engine API & RPA Emailbot
Slide 10: Customers (and Simplifai) benefit from best-in-class implementation approach
Customers (and Simplifai) benefit from best- in-class implementation approach 90% Automation 1 Month to 6 Months to Grade launch ROI
Slide 11: Key stepping stones for Simplifai
Key stepping stones for Simplifai Capturing a high growth market Recognition х Exponential sales growth Success stories х Widespread international NEW ENTRIES expansion ONGOING х Global distribution Claims Link and OSM COMPLETED Maritime success stories х Recognized as leading Credibility vendor w
Slide 12: Several contract wins verify Simplifai's technology leadership and growth potential
Several contract wins verify Simplifai’s technology leadership and growth potential • Renowned Indian internet brand • Singapore-based global network • Nationwide insurance company service provider • 30-40k customer enquiries monthly • 300k e-mail enquiries, with • 40k customer emails per month docu
Slide 13: Simplifai – strong growth Q1
Simplifai – strong growth Q1 Key figures • Q1 contracted MRR growth: 59% • 90% increase in contracted MRR in Q1 2021 vs Q1 2020 • Trending upwards across sales +59% channels • Nordics • India • Partner sales getting started • 4 new contracts with 3 different partners • On track to achieve 3-5 x ARR
Slide 14: elop
elop
Slide 15: Concrete is the worlds most used construction material
Concrete is the worlds most used construction material …and it is a major contributor to current environmental challenges as 8% of the world’s CO2 emissions come from the concrete production 21
Slide 16: Maintenance of critical concrete infrastructure is a growing global concern
Maintenance of critical concrete infrastructure is a growing global concern Concrete is the most used construction material worldwide with aging structures and prolonged neglect driving up the maintenance cost... Age structure of highway bridges in Germany Significant backlog of bridge maintenance H
Slide 17: Consequences of being unable to monitor infrastructure cost-effectively
Consequences of being unable to monitor infrastructure cost-effectively For society, infrastructure owners and users Short infrastructure Costs of building Accidents that could High CO2 emissions lifetime new infrastructure have been prevented from production and construction 23
Slide 18: New recommended practice supports Elop's business case
New recommended practice supports Elop’s business case Ultrasound technology outlined as crucial for the inspection method in the updated Norwegian Roads Significant increase in Authorities (NRA) manual for inspecting post tensioned attention from concrete bridges. all stakeholders • Increase in enq
Slide 19: Effective inspection of dams
Effective inspection of dams Appx 58.700 large dams worldwide, 41% in China1 At least 1,680 dams across the US are rated in poor or unsatisfactory condition2 Most constructed between 1930 and 1970 with a design life of 50 to 100 years. Elop technology integrated into existing Signs of aging after 50
Slide 20: Effective inspection of cooling towers
Effective inspection of cooling towers Cooling towers are used in power plants, oil Elop technology refineries, petrochemical plants and natural integrated into existing gas plants1 robots, crawlers etc. Condition assessment of cooling towers is challenging due to their size, geometry and operationa
Slide 21: Terratec partnership opens door to Nordic survey and inspection market
Terratec partnership opens door to Nordic survey and inspection market • Breakthrough in infrastructure inspection space • Norway’s largest • Terratec integrates Elop Insight into supplier of geodata existing service portfolio • Industry leader within use of sensors and • Key for Elop: Shortcut to i
Slide 22: Effective inspection of railway sleepers
Scalable cloud-based hub to collect, act on and share Effective inspection information ASSET MANAGERS of railway sleepers PROJECT INSIGHT Nearly 3 billion sleepers worldwide (1) OPERATOR Regulated to Inspect twice a year (2) Effective ultrasound Deterioration, abrasion, and cracking scanning are the
Slide 23: Selected projects agreed across new geographical markets and industry segments
Selected projects agreed across new geographical markets and industry segments Demonstration project with major asset owner in energy sector signed Demo projects for Elop Insight in France agreed Demo projects for Elop Insight in Germany agreed 29
Slide 24: Elop moving in the right direction
Elop moving in the right direction Introducing new technology to create a new Recognition high growth market х Exponential sales growth Success stories х International NEW ENTRIES expansion ONGOING х Successful field projects х Global distribution х New technology COMPLETED Credibility applications
Slide 25: Continue to realize synergies between Elop and Simplifai
Continue to realize synergies between Elop and Simplifai Operational optimization • Joint technology development team • SAAS commercial organization operational • Joint management team • Joint sales, marketing and business development • Significant benefits from Norway, India and Ukraine teams • Com
Slide 26: Becoming a NOK billion revenue company
Becoming a NOK billion revenue company • Establish Simplifai as a global ISV within AI business process 2025 TARGET automation technology • Establish Elop technology as an industry standard NOK 1 billion in revenues • Benefit from Simplifai AI capabilities to build next generation structural health
Slide 27: Summary Outlook
SUMMARY OUTLOOK • TERRATEC agreement door-opener to • STRONG MRR GROWTH from Simplifai the Nordic region expected to continue • Extensive and HEALTHY LEAD PIPELINE, • Continued strong and GROWING INTEREST but Covid-19 limitations affect sales and level in Elop’s ultrasound technology demonstration c
Slide 28: 1st quarter 2021 interim financial results
1st quarter 2021 interim financial results
Slide 29: Segment financial summary Q1 (mnok)
Segment financial summary Q1 (mnok)* Elop Elop AS 21Q1 20Q1 • **Excludes non-cash accounting • Revenue - - expenses related to options issued in • EBITDA ** - 8,9 - 7,3 Q1. See stock exchange announcement February 19th 2021 for details.. • Capitalized development -6,4 - 0,7 Simplifai Simplifai (Jan
Slide 30: Liquidity Elop Group as per March 31st 2021
Liquidity Elop Group as per March 31st 2021 Cash position • Cash balance Q1: 102 mnok • Further softfunding of 9 mnok • Innovasjon Norge – 2,3 mnok • Skattefunn 6,7 mnok • Innovation Loan of approved from IN 5 mnok Total available liquidity 116 mnok 37
Slide 31: Basis for preparation of interim financial results
Basis for preparation of interim financial results • The below slides provides financial highlights for the quarter for the Elop AS Group, a Norwegian limited company listed on the Oslo Stock Exchange on the Euronext Growth market. Although the company complies with IFRS, the interim financial infor
Slide 32: ELOP AS Group consolidated statement of profit and loss
ELOP AS Group consolidated statement of profit and loss Statement of profit or loss Amounts in NOK thousand Q1 - 2021 Q1 - 2020 Revenue 2,294 - Other operating revenue - - Total revenue 2,294 - Cost of sales 191 46 • Simplifai revenues are Employee benefit expenses 16,559 2,099 Other operating expen
Slide 33: Elop AS Group consolidated balance sheet
Elop AS Group consolidated balance sheet Amounts in NOK 31/03/2021 31/12/2020 Amounts in NOK thousand 31/03/2021 31/12/2020 EQUITY AND LIABILITIES ASSETS Equity Non-current assets Share capital 4,650 3,515 Share premium 336,063 181,220 Goodwill 129,218 Unregistered capital increase - - Intangible as
Slide 34: Elop AS Group consolidated cashflow statement
Elop AS Group consolidated cashflow statement Amounts in NOK thousand Q1 - 2021 Q1-2020 Amounts in NOK thousand Q1 - 2021 Q1-2020 Cash flows from operating activities Cash flows from investing activities Profit/(loss) before income tax (20,627) (7,326) Payment for investment company (1,484) - Paymen
Slide 35: Elop AS statement of changes in equity
Elop AS statement of changes in equity Unregistered Amounts in NOK Share Share capital Other equity Retained Total capital premium Increases reserves earnings equity Balance at 31 December 2020 3,515 181,220 - 4,571 (54,664) 134,643 Profit/(loss) for the year - - - - (20,952) (20,952) OCI - - - - -