Motork Plc · EURONEXT:MTRK
Motork — Investor Presentation (November 2021)
52 slides from Motork's investor presentation, November 2021
Slide 1: SaaS Platform Digitalizing the Automotive Retail Industry
SAAS PLATFORM DIGITALIZING THE AUTOMOTIVE RETAIL INDUSTRY
Slide 2: Disclaimer
Disclaimer By attending this meeting and accepting this presentation, you will be deemed to have agreed that: (i) you will not disclose information contained herein to anyone within your firm (other than subject to these restrictions) or outside your firm (ii) and these restrictions will apply to yo
Slide 3: Our mission: empowering OEMs and dealers with an innovative SaaS platform
Our mission: empowering OEMs and dealers with an innovative SaaS platform to optimize sales and marketing processes 3
Slide 4: Enhancing customer experience, improving dealer efficiency
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Enhancing customer experience Improving dealer efficiency 4
Slide 5: Integrated SaaS platform for automotive retailers
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy We offer automotive retailers an integrated SaaS platform, enhancing their digital footprint, performance, and efficiency €34M 250+ 7 LOCATIONS €25-27M 46% 24% 114% FUNDING EMPLOYEES UK, ITAL
Slide 6: MotorK's growth history
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy MotorK’s growth history €82M IPO (3) €10M FUNDING LAUNCH LAUNCH Portugal €15M France Israel FUNDING 3rd. M&A REBRANDING Enterprise - 13 SaaS 11 Customers(1) €9M 11 FUNDING LAUNCH UK LAUNCH Ge
Slide 7: Management team
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Management team AMIR ROSENTULER MARCO MARLIA ANDREA SERVO NIR ERLICH MARTIN HUGHES Chairman CEO CFO CPO CTO Vast executive management and Serial Entrepreneur experienced in Highly regarded fi
Slide 8: The Omnichannel Revolution in Automotive Retail
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy The Omnichannel Revolution in Automotive Retail Demand transformation Supply transformation Consumers are increasingly ...yet they still expect an Consumers prefer to buy cars ...yet dealers
Slide 9: The broken customer-journey of automotive retailers
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy The broken customer-journey of automotive retailers Research Leads leak to other ! RESEARCH dealers or OEMs Experience EXPERIENCE ! Customers from online platforms “only come to see” (ROPO) a
Slide 10: Offering a wide range of automotive-specific features
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Offering a wide range of automotive-specific features SERVICE & MAINTENANCE STOCK MANAGEMENT ● After-sales booking ● Import stock from multiple sources ● Automatic reminders ● Enrich stock wi
Slide 11: Customer success stories
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Customer success stories Ford Iberia: SparK as an integrated Toyota Motor Italy: WebSpark Avanti Motors, a privately owned online, sales and CRM tool empowers +100 websites dealership from Sp
Slide 12: Current omnichannel options for the end consumer in EMEA
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Current omnichannel options for the end consumer in EMEA OEMS / DEALERS DIGITAL FIRST AUTOMOTIVE RETAILERS Home 45.5m Home 0.4m delivery Cars sold delivery Cars sold in EU(4) in EU(5) 12-15%
Slide 13: Addressing a large and growing market
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Addressing a large and growing market Automotive OEMs, dealers +26% for all vehicles in Europe(1)(2) €5.4bn CAGR (6) Global revenues of Automotive OEMs & all car dealers online vehicle retail
Slide 14: Underserved addressable market
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Underserved addressable market Increasing ACV potential >€8M ACV (1) ~100 OEMs use fragmented software providers that are not centralized MotorK’s Large OEM brands in Europe(2) core market €3
Slide 15: Unique positioning within the Automotive Retail Software market in EMEA
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Unique positioning within the Automotive Retail Software market in EMEA LEGEND SIZE INNOVATORS Indicative headcount size of R&D department SAAS / CLOUD-BASED INTEGRATED SOLUTION LEGACY SINGLE
Slide 16: Our core SparK modules
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Our core SparK modules Ongoing transformation of AdSpark towards a SaaS module Stock Web CRM Advertising Module Module Module Module Web stock management platform Lead management & CRM system
Slide 17: SparK is proven to shape up core-business KPIs
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy SparK is proven to shape up core-business KPIs CARS SOLD >€ 440 last quarter before listing(1) Advertising spent per car sold in Europe(2) >145,000 ↓50% Marketing cost per car sold ↓40% Cost
Slide 18: Go-to-market channels and core KPIs
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Retail / Dealer Enterprise / OEM GTM Outreach blend of field and inside sales cycle High-touch field-based with long sales cycle CHANNELS ~1 quarter ~€14K ACV(1) ~3-4 quarters ~€100K ACV per
Slide 19: Retail dealers customer analysis
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Retail dealers customer analysis REVENUE COHORT ANALYSIS ON NET UPSELL(1) 220% 207% 2.9x Increase in EoY ARR(2) 2017-2020 200% 179% 180% 156% 1.4x 160% Increase in EoY ARR(2) / customer 2017-
Slide 20: Historical evolution of churn & NRR
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Historical evolution of churn & NRR (in %) ARR churn(1) (in %) Net revenue retention rate(2) Ongoing WebSpark 114% COVID avg. 2018-2019 NRR COVID upgrade in Q3-Q4 2021 EFFECT 117% EFFECT 111%
Slide 21: Sound portfolio of OEM clients
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Sound portfolio of OEM clients • Since 2021 • Since 2017 €191k • 232 rooftops • 65 rooftops • Since 2016 • 110 rooftops Average ARR June 2021(1) • Since 2018 • 96 rooftops • Since 2018 • 90 r
Slide 22: MotorK - KPIs
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy MotorK - KPIS € 25-27M 46% Positive H1 2021 Adjusted EBITDA 2021F Revenue(1) 2016-2020 Revenue CAGR(2) ~70% 114% 16:1 2022F Recurring revenue as Net Revenue Retention(4) LTV to CAC Ratio a %
Slide 23: Strong revenue growth and margin profile
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Strong revenue growth and margin profile ~160 Revenue and EBITDA margin targets COVID INCLUDING 3 EFFECT ACQUISITIONS(3) +M&A (in €m) Revenue from 2021 acquisitions ~110 45-47 ~€9m(3) 36-38 2
Slide 24: Q3 2021 strong growth performance and main takeaways
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Q3 2021 strong growth performance and main takeaways Revenue Adjusted EBITDA(1) margin 17.5% (in €m) 8.1 (in %) +86% 4.4 -5% Q3 2020 Q3 2021 Q3 2020 Q3 2021 Strong Q3 revenue as MotorK contin
Slide 25: Quick rebound already surpassing pre-pandemic level
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Quick rebound already surpassing pre-pandemic level (in €m) COVID EFFECT 3.5 3.3 3.1 • Pipeline is typically a 1.6 leading indicator of 2.7 2.2 bookings, which in turn is a 2.1 2.1 leading in
Slide 26: Continuously increasing the share of recurring revenues
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Continuously increasing the share of recurring revenues Revenue mix by type 2019 Revenue mix by type 2022 Future revenue mix 54% ∼70% Further Recurring Recurring increase in revenue(1) rev.(1
Slide 27: Clear strategy to drive future growth
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Clear strategy to drive future growth Build on our leading EMEA reach Leverage effective go-to-market Replicate model to new markets strategy and expand target markets Cross-sell and upsell o
Slide 28: Clear plan to roll-out across EMEA
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Clear plan to roll-out across EMEA The Nordics MENA DACH Eastern Europe France & Benelux Proven strategy to roll-out our Iberia platform across EMEA, leveraging consolidated HUBs in relevant
Slide 29: Strong upside potential through proven M&A track record
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Strong upside potential through proven M&A track record PROVEN BY RECENT ACQUISITIONS MOTORK’S THREE-PHASE M&A STRATEGY €m 3 4.0 GROW • Revenue and cost 1.7 synergies 1.4 2 • Unify product ro
Slide 30: Strong M&A pipeline
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Strong M&A pipeline Currently tracking 68 acquisition targets In conversation with 11 companies accounting for >20M in revenues Target Region Rationale Status 1 IBERICA Market share Binding L
Slide 31: Three highly strategic acquisitions to drive MotorK's expansion
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Three highly strategic acquisitions to drive MotorK’s expansion Spain-based, B2B SaaS company French B2B SaaS provider that French digital agency specializing in whose solutions are focused o
Slide 32: Multiple levers for future growth
Introduction Market & Positioning Business Model & Technology Go-to-market Financials & KPIs Growth Strategy Multiple levers for future growth … M&A Add-on products … Expand offering Add-on features Future … Today SaaS platform Today Geographical expansion 5 Countries … Further countries in Europe …
Slide 33: Key investment highlights
Key investment highlights 01 Well positioned as a fast-growing market leader in EMEA to take advantage of the urgent need for digital transformation in the Automotive Retail industry 02 State-of-the-art SaaS platform with excellent value proposition, providing automotive retailers with an integrated
Slide 34: Appendix
APPENDIX 34
Slide 35: Technology
Rernotoey IK” 35
Slide 36: Web Module: The ideal web platform for digital dealers
Web Module The ideal web platform for digital dealers Conversion-oriented UX, implementing e-commerce best practices with continuous monitoring and improvement 100% automotive with more than 100 vertical features from financing simulation to landing page builder OEM-ready with specific feature to pu
Slide 37: CRM Module: Turnkey solution to improve sales efficiency
CRM Module Turnkey solution to improve sales efficiency 100+ third-party tools integrated to offer a holistic view of the business and the customer base Data normalization and enrichment to provide the most relevant and actionable reports Customized workflows to easily adapt to any business processe
Slide 38: Stock Module: Real-time management for optimized result
Stock Module Real-time management for optimized result Enable customers to import stock automatically and upload it immediately Transform technical data into customer-relevant information and improve lead generation Enrich stock with impactful information for end customer: add vehicle details, descr
Slide 39: Financials
Financials 39
Slide 40: Efficient management of costs
Efficient management of costs (in €m) H1 side-by-side comparison 29.0 24.0 7.3 23.9 2.3 4.8 Other operating costs 7.3 3.2 D&A 1.0 6.6 15.2 Costs for marketing and call 4.5 centre services 6.0 12.1 2.8 2.3 1.9 1.7 3.6 15.9 3.0 Personnel costs 13.8 12.5 8.3 6.3 (2.7) (1.3) (1.4) R&D capitalisation (2.
Slide 41: Fast scaling leading to positive adjusted EBITDA in H1 2021
Fast scaling leading to positive adjusted EBITDA in H1 2021 (in €m) H1 Adjusted EBITDA (in €m) H1 2021 Operating loss - Adjusted EBITDA bridge (% of revenue) (13%) 3% +0.1 0.3 0.3 +0.8 (2.4) +1.9 (1.2) H1 2020 H1 2021 Operating Loss D&A Share based Extraordinary H1 2021 payment items (1) Adjusted ex
Slide 42: Income statement
Income statement • Significant impact of the Covid-19 outbreak on 2020 revenues with a 30.8% decrease in revenues in 2020 vs a 128.8% increase in 2019 • Revenue in H1 2021 experienced a 39.1% increase vs H1 2020 due to an increase in revenue from SaaS products, particularly in Italy • Although reven
Slide 43: Balance sheet
Balance sheet • The Group holds goodwill in respect of the companies’ acquisitions it has carried out since 2016 • Contract assets are related to the application of IFRS 15 on DealerK SaaS revenues • The reduction of trade receivables in 2020 compared to 2019 can be explained by the combined effect
Slide 44: Cash flow statement
Cash flow statement • The Covid-19 pandemic had a negative effect on net cash flow from operating activities in 2020 as the Group registered a decrease in revenues, and had to implement new measures in order to reduce the negative financial effects of the pandemic. • Yet, the Group recorded a positi
Slide 45: Customer case studies
Customer case studies 45
Slide 46: Gruppo Automaster
Gruppo Automaster Web module Yearly ACV (€k) CRM module Yearly ACV (€k) 2014 6.0 6.0 Automaster is a Citroen and Toyota dealer located Cross-selling 2015 6.0 3.0 9.0 in Ferrara, Italy MotorK customer since 2014 2017 7.0 3.6 10.6 The company started by diversifying its access to MotorK’s products • 2
Slide 47: Toyota Motor Italy
Toyota Motor Italy Toyota Motor Italy: WebSpark empowers +100 websites Client since 2016 110 1.5m Websites created by MotorK Visitors on all websites 80 Toyota dealer websites and 30 Lexus websites (official brand websites, dealer generated by MotorK(1) are supported by our SaaS WebSparK solution we
Slide 48: ESG
ESG 48
Slide 49: ESG vision
ESG vision FAMILY SPIRIT Environment To ensure environmental protection and to strive to minimize impacts PASSIONATE ABOUT OUR CUSTOMERS Social INNOVATIVE To ensure inclusiveness in the workplace, to promote and secure the development and wellbeing of employees DO THE RIGHT THING Governance GROWTH T
Slide 50: Diversified ESG strategy relying on four main pillars
Diversified ESG strategy relying on four main pillars • Undergoing process to ensure 1/3 of female presence in the Board of Directors Decreasing employee turnover rate Governance • Regular meetings regarding business performance to ensure transparency and inclusion towards employees ca. 37% in 2019
Slide 51: ESG objectives
ESG objectives • Appoint a Sustainability Ambassador in order to strategically promote ESG aspects Governance • Integrate the current policy and governance system with ESG aspects, such as inclusion and diversity, development and training of human resources, protection of the environment, health and
Slide 52: Thank you
Thank’ you 52