Solteq Oyj · OMXHEX:SOLTEQ
Solteq Oyj — Investor Day (January 2023)
26 slides from Solteq Oyj's investor day presentation, Jan 18, 2023
Slide 1: Capital Markets Day
Capital Markets Day January 18th, 2023 © 2023 Solteq. All rights reserved.
Slide 2: Aarne Aktan, CEO
Aarne Aktan CEO – since July 2022 Member of the Board in Solteq: 2015–2022 "IT-entrepreneur that came back home" Key Work Experience: Several leadership positions, such as CEO of SYNLAB Finland Oy Pihlajalinna Plc Talentum Plc Quartal Oy Extensive amount of board work experiencce © 2023 Solteq. All
Slide 3: Agenda
Agenda 10.00 Towards a Better Tomorrow CEO Aarne Aktan 10.15 Financial update CFO Kari Lehtosalo 10.30 Market Outlook: Retail & Commerce EVP Jesper Boye 11.00 Market Outlook: Utilities EVP Jaakko Hirvensalo 11.30 Q&A 12.00 Thank You © 2023 Solteq. All rights reserved.
Slide 4: Objectives of the Day
Objectives of the Day 01 Provide a more comprehensive a view of our ambitions and fears 02 Present an overview of our business and operating model 03 Describe the strategic choices © 2023 Solteq. All rights reserved.
Slide 5: Management Introduction
Management Introduction Aarne Aktan Kari Lehtosalo Jesper Boye Jaakko Hirvensalo CEO CFO EVP – Retail & Commerce EVP – Utilities Christa Tavan Mikko Sairanen Kirsi Jalasaho Director of Communications and General Counsel VP – People and Culture Marketing © 2023 Solteq. All rights reserved.
Slide 6: Summary of today's story
Summary of today’s story © 2023 Solteq. All rights reserved.
Slide 7: Past, present, future
Past, present, future Sleeping and boring ( - 2019) 1. Solteq has not performed at the desired level over the past year Overperformer (2020-2021) 2. Our task is to return the company back Underperformer (2022- ) on a growth path and clearly improve profitability Primary focus for 3. The market situa
Slide 8: Kari Lehtosalo, CFO
Kari Lehtosalo CFO MBA Key leadership positions in the software and technology industry. © 2023 Solteq. All rights reserved.
Slide 9: Financial update - Key Figures
Financial update - Key Figures Revenue (EUR million) Comparable EBITDA (EUR million) 69,1 69,8 12,6 60,5 10,8 55,3 8,5 6,6 2019 2020 2021 LTM 2019 2020 2021 LTM • Organic growth break off during 2022 Comparable operating profit (EUR Million) Average number of employees • Profitability hit due qualit
Slide 10: Recurring Revenue
Recurring Revenue ARR (keur & % of SW segment YtY) 3 000 50,0 % 35,9 % 43,2 % 45,0 % 32,4 % 2 500 37,6 % 31,4 % 40,0 % 35,0 % 2 000 30,0 % 2022 28,9 % 2021 1 500 25,0 % 29,1 % ARR % 22 20,0 % ARR % 21 1 000 2 408 1 809 2 353 1 900 2 468 2 014 2 066 15,0 % 10,0 % 500 5,0 % 0 0,0 % 1Q 2Q 3Q 4Q As per
Slide 11: Long-Term Financial Targets
Long-Term Financial Targets Retail & Commerce Utilities • Minimum average annual growth in revenue: 8 percent • Minimum average annual growth in revenue: 15 percent • Minimum EBIT (%): 8 percent • Minimum EBIT (%): 18 percent • Dividends – minimum of half of the annual operating result • Net-Debt-to
Slide 12: Jesper Boye, EVP Retail & Commerce
Jesper Boye EVP - Retail & Commerce MBA Key leadership positions in business and sales management within the technology industry. © 2023 Solteq. All rights reserved.
Slide 13: Retail & Commerce
Retail & Commerce • Retail & Commerce offers expert services and software solutions for retail and e-commerce. • The portfolio consists of leading third- party software platforms, related services, and Solteq’s own IPR. • More than 1,000 customers are served by 450 professionals in 6 countries. © 20
Slide 14: Portfolio
Business Segments Portfolio Retail & Commerce +8 % +8% p.a. growth target EBIT margin target ERP Commerce & Data Retail Software © 2023 Solteq. All rights reserved.
Slide 15: Macroeconomic Headwinds
Macroeconomic Headwinds Rising inflation, Challenging Disruptions in Increased interest rate, and labor market supply-chain amount of cyber cost levels security threats © 2023 Solteq. All rights reserved.
Slide 16: Trends in retail and e-commerce
Trends in retail and e-commerce • Unified Commerce • Digital Business Transformation • Emerging Technologies • Sustainability © 2023 Solteq. All rights reserved.
Slide 17: Global Retail Spend in EUR Billion
Global Retail Spend in EUR Billion 200,0 180,0 160,0 51,2 140,0 46,0 41,4 120,0 37,2 33,5 100,0 30,1 27,0 80,0 130,7 60,0 120,4 110,6 101,2 92,7 40,0 83,9 74,5 20,0 0,0 2020 2021 2022 2023 2024 2025 2026 Spend on IT Services Spend on Software Source: Gartner - “2023 Outlook Presentation: Enterprise
Slide 18: Global Retail Leaders Increasing Investments
Global Retail Leaders Increasing Investments Cyber/information security 68% BI/Data analytics 65% App lication modernization 59% Total experience solutions 53% Cloud platforms 49% Integration technologies/APIs/API architecture 42% Business continuity management 32% AI/machine learning 31% Connectivi
Slide 19: Jaakko Hirvensalo, EVP Utilities
Jaakko Hirvensalo EVP - Utilities M.Sc. (Tech) Diversely experienced in business and turnaround leadership within the energy sector and international technology industry. © 2023 Solteq. All rights reserved.
Slide 20: Innovations for energy evolution
Innovations for energy evolution © 2023 Solteq. All rights reserved.
Slide 21: Key Market Trends
Key Market Trends Changing New Intensifying Extreme Innovation markets regulations competition weather Sources: Gartner: "Energy and Utilities Digital Transformation and Innovation Primer for 2022". Deloitte: "2023 power and utilities industry outlook". 2023. https://www2.deloitte.com/content/dam/De
Slide 22: Innovations for Energy Evolution
Innovations for Energy Evolution • SQ Utilities Customers • SQ Utilities Today • Utilities e.g. Energy Supply, Retail and • Second largest Utilities ICT SW service provider in Distribution industry. Finland • Target market • Building capability to enter Swedish and Danish markets in 2023 – 2024 • En
Slide 23: Market Outlook
Market Outlook • The overall Utilities market IT spend has been • Market size increasing • Global Energy and Utilities SW market size is • According to Gartner, the growth rate in utilities estimated by Gartner to reach a bold 75B$/a. SW could be as high as a 5year CAGR of 14.8% • Solteq focuses at
Slide 24: Utilities Software Product families
Utilities Software Product families For Electricity Retailers For Electricity Distributors Solteq application specific SW Products EndtoEnd Solteq Utility Cloud Automation SW Products • Built exclusively for SW Utilities industry • Built on Commercial • Comprehensive Transactions Platform (Salesforc
Slide 25: Utilities Consulting, Professional Services
Utilities Consulting, Professional Services ICT procurements On Time and scoping ICT project PMO Facilitation and Energy sector Test cases and Co-ordination business advisory testing and ICT implementation Strategy Services Professional development Services Transformation Operating model and program
Slide 26: Thank You
Thank You © 2023 Solteq. All rights reserved.