Huddlestock Fintech As · OSL:HUDL
Huddlestock Fintech As — Investor Day (June 2023)
72 slides from Huddlestock Fintech As's investor day presentation, Jun 1, 2023
Slide 1: Presentation of 1Q23 results Capital Markets Day
Presentation of 1Q23 results Capital Markets Day 1 June 2023 Empowering our clients by delivering “Investment as a Service”
Slide 2: Disclaimer regarding forward looking statements
Disclaimer regarding forward looking statements Disclaimer regarding forward looking statements This presentation speaks only as of their date, and the views expressed are subject to change based on a number of factors, including, without limitation, macroeconomic and equity market conditions, inves
Slide 3: Huddlestock Fintech
Huddlestock Fintech Empowering our clients by delivering “Investment as a Service” Øyvind Hovland John E. Skajem Leif Arnold Thomas Chairman Group CEO CCD & IR 3
Slide 4: Highlights in 1Q 2023
Highlights in 1Q 2023 • Q1 2023 Consolidated Group Revenues of NOK 16.600.000 • Compared to Q1 2022 of NOK 9.100.000 • Year over year growth of 183% • Q1 2023 Proforma* Group Revenues of NOK 25.300.000 • Compared to Q1 2022 of NOK 9.100.000 • Year over year growth of 278% • Q1 Proforma Recurring Rev
Slide 5: Highlights after the close of Q1 2023
Highlights after the close of Q1 2023 • Winning new clients with added products for new mix; • Signs the first Family Office to use the Portfolio Management System and reporting platform in Norway • Swedish asset management firm has selected Bricknode’s cloud investment management system • Garantum
Slide 6: Key priorities in 2023
Key priorities in 2023 Empowering our clients by delivering “Investment as a Service” Deliver innovative technology solutions for the Trade and WealthTech industries. Delivering shareholder value through strategic growth opportunities: • Prioritize profitable growth and recurring revenues • Execute
Slide 7: Consolidated financials in 1Q 2023
Consolidated financials in 1Q 2023 Revenues EBITDA Total Equity 16.6m -2.4m 111.3m NOK NOK NOK Year over year growth of 183% Consolidated revenues and EBITDA does not include Trac Services, Trac Technology, Dtech nor Bricknode 7
Slide 8: Proforma financials in 1Q 2023
Proforma financials in 1Q 2023 Scaling up for future growth and profitability with transformational investments. Revenues EBITDA Total Equity 25.3m -6.0m 115.2m NOK NOK NOK Year over year growth of 278% *Proforma revenues include Trac Services, Tracs Technology, Dtech and Bricknode from 1st January
Slide 9: Strong strategic fit between Huddlestock and Bricknode
Strong strategic fit between Huddlestock and Bricknode • Bricknode’s Investment Portfolio Management System (back-office) technology, professional operational services, user interface, clients, strong foot- print in Sweden and recurring revenues • Huddlestock’s trading technology, eco system partner
Slide 10: Executed Synergies after M&A's (Yearly effect)
Executed Synergies after M&A’ s (Yearly effect) Creating shareholder value Cost synergies effectuated • From two to one office in Stockholm (Q3) MNOK 0,9 • Termination of external development consultants (Q3) MNOK 4,6 • Simplified legal structure (accounting, auditing, licences, etc) (Q4) MNOK 1,0 •
Slide 11: Legal structure
Legal structure Huddlestock’s Group legal structure as of June 1st, 2023 11
Slide 12: Huddlestock Group organizational structure as of June 1st, 2023
Huddlestock’s Huddlestock Group organizational structure as of June 1st, 2023 Organisation Board of Directors Head of Legal and Head of Compliance HR & Administration Role/Responsibility Role/Responsibility Administration Legal, Compliance, HR strategy and policy Regulatory Reporting, Group CEO (Tra
Slide 13: Shareholder register as of May 2023
Huddlestock Fintech Shareholder register as of 26 May 2023 Holding no. of Rank Investor Stake, % shares Shareholders: 1 Nordnet Bank AB 20,879,268 12.3% 2 3 NJORD GROUP AS VISION INVEST STAVANGER AS 12,429,113 8,286,715 7.3% 4.9% 1,463 4 SAA INVEST AS 8,000,000 4.7% 5 Bank Julius Bär & Co. AG 7,485,
Slide 14: Delivering on financial inclusion
Delivering on financial inclusion Our purpose: Empowering our clients to deliver access to global capital Our vision: markets through simple, accessible, and personalized trading and investing solutions. Reshaping financial markets through digital transformation and Huddlestock solutions Innovative
Slide 15: Combining a mix of cash flow generation and scalable products
Combining a mix of cash flow generation and scalable products Mission is to provide products that can be Mission is to deliver efficient and profitable licensed to many customers globally as a technology projects for the industries of SaaS model with no bespoke solutions that focus to external custo
Slide 16: Our strategic goals – where are we in 4 years from now?
Our strategic goals – where are we in 4 years from now? Strategic goals: In 4 years time we want to be a world class technology provider delivering innovative and sustainable technology and compliant solutions to the capital markets, treasury and wealth management industries. 2023 2027 • Investment
Slide 17: "Banking is necessary, banks are not."
“Banking is necessary, banks are not.” Powering financial services through Banking-as-a-Service. Banking-as-a-Service is the seamless integration of financial services and products into other kinds of customer activities, typically on non-financial digital platforms. B2C • BaaS is the opportunity fo
Slide 18: Bricknode perfectly complements the Huddlestock value chain
Bricknode perfectly complements the Huddlestock value chain Improving onboarding process, reporting and back office Clients XYZ Onboard Clients Trade global markets and funds Real time reporting and settlement, Backoffice services Our expertise is putting it all together. You can have some of it or
Slide 19: Simplifying our product portfolio as a part of gaining synergies
Huddlestock has everything to implement your solution quickly and efficiently Simplifying our product portfolio as a part of gaining synergies Bricknode Broker Bricknode Broker is a complete Portfolio Management system and Back Office solution Huddlestock Trader is a White Label Trading API. Huddles
Slide 20: Primary integration partners in the ecosystem
Primary integration Huddlestock partners in is expanding our the ecosystem Eco Partners within finance Custodians and brokers Price feed and reference data Front ends CRM & Productivity Insurance, Pension & tax wrappers Cloud providers AML, KYC, Credit API Aggregators
Slide 21: 1Q 2023 Results
1Q 2023 Results
Slide 22: Growing client revenues in 1Q – Reported consolidated results
Growing client revenues in 1Q – Reported consolidated results Delivering in Consulting. Investing in client deliveries and recurring revenue streams in Technology. Reported EBITDA Total Equity Reported Revenues 16.6m -2.4m 111.3m NOK NOK NOK Year over year growth of 183% 22
Slide 23: Group operating revenues
Group operating revenues Delivering and investing in strategic technology solutions Solid revenues growth Group operating revenues (NOK 1000) • Revenues were NOK 16.6m for 1Q vs NOK 9.1m in 1Q22 • Pro-forma* revenues amounted to NOK 25.3m in 1Q23 +199% • Attracting new products and new clients suppo
Slide 24: Group operating costs
Group operating costs Tighter labour markets, inflation and investing in technology. Set for good cost control and synergies Group operating costs (NOK 1000) • Group costs were NOK 25.5m for 1Q vs NOK 13.3m in 1Q22 • Pro-forma* costs amounted to NOK 39.6m in 1Q23 • The organisation continues to work
Slide 25: Group EBITDA
Group EBITDA Optimizing internal resources. Containing costs while growing revenues. Set for good cost control and synergies Group EBITDA (NOK 1000) • EBITDA was at NOK -2.4m for 1Q vs NOK -0.8m in 1Q22 • Pro-forma* EBITDA amounted to NOK -6.0m in 1Q23 25 *Proforma numbers includes Tracs, Dtech, Bri
Slide 26: Technology
Technology A story of two halves. Continued focus on client deliveries and growing recurring revenue streams. Technology revenues (NOK ‘000) *Proforma numbers includes Tracs, Dtech, Bricknode from January 2023. Reported numbers consolidates F5 IT from May 2022. 26
Slide 27: Visigon Consultants
Visigon Consultants Strong delivery from expert advisors in Sweden and Denmark despite tight labour markets. Consulting revenues (NOK ‘000) 27
Slide 28: Annexes
Annexes
Slide 29: Consolidated Income Statement
Consolidated Income Statement Consolidated Income Statement (in NOK) 1Q2023 1Q23 Pro-forma 1Q2022 2022 2022 Pro-forma 2021 Operating income Other operating income 16 600 346 25 326 276 9 054 914 46 708 344 62 437 172 23 363 188 Total operating income 16 600 346 25 326 276 9 054 914 46 708 344 62 437
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Financial Position (in NOK) 31.03.2023 31.12.2022 Consolidated Financial Position (in NOK) 31.03.2023 31.12.2022 ASSETS EQUITY Intangible assets Paid-in capital Research and development 40 389 755 35 770 453 Share capital 257 278 257 278 Goodwill 51 428 422 52
Slide 31: Investor relations contacts
Investor relations contacts: John E. Skajem Chief Executive Officer John.skajem@huddlestock.com Award-winning platform +47 418 87 412 Leif Arnold Thomas Chief Corporate Development & IR Leif.thomas@huddlestock.com +47 982 15 520 Listed on Images & Photography: unsplash.com and pixabay.com Icons: fla
Slide 32: Full disclaimer
Full disclaimer Full disclaimer This presentation has been prepared by Huddlestock Fintech AS (the Huddlestock) solely for the use at the presentations to investors held in connection with the presentation of the past results of the certain period and anticipated future performance. This presentatio
Slide 33: Full disclaimer continued
Full disclaimer continued Full disclaimer continued Any statement, estimate or projections included in this presentation (or upon which any of the conclusion contained herein are based) with respect to anticipated future performance (including, without limitation, any statement, estimate or projecti
Slide 34: Customer success enabled by great Product & Services
Customer success enabled by great Product & Services Reshaping financial markets through digital transformation and innovation Daniel Risberg CPO
Slide 35: Simplifying our product portfolio as part of gaining synergies
Simplifying Huddlestock hasour product everything portfolioyour to implement as asolution part of gaining quickly and efficiently synergies Bricknode Broker Bricknode Broker is a complete Portfolio Management system and Back Office solution Huddlestock Trader is a White Label Trading API. Huddlestoc
Slide 36: Product Roadmap
Product Roadmap Existing Existing Internal Partners standardized Products and Services
Slide 37: Huddlestock value proposition
Huddlestock value proposition Broker Trader Core Products (SaaS) Investment Manager Solutions (Integrations Custom) Backoffice Operations License Partners Fund Managers Private banking Family Offices Wealth Managers Examples of Client types
Slide 38: Investor Services
Investor Services Clients can focus on their Core business, and we can focus on our core business! • Quality Investor Services • Backoffice for hire • Licenses • Compliance • Scalability • Time to market Fund Managers Private banking Family Offices Wealth Managers Examples of Client types
Slide 39: Effect of acquisitions, combining Investor Services with Core products
Effect of acquisitions, combining Investor Services with Core products Benefits for Investor Services Benefits for Core Products • Scalable processes • Opening new market segments • Reduce Operative Risk • Stickiness • Reduce Bottlenecks • Domain knowledge • Automatization • QA Investment as a Servi
Slide 40: Strategy
Strategy • Increase market shares with existing services in current markets. • Attractive Bundle, Software as a Service + Licensed Services. • Adapt our services to new regions. • Expand the Service offering, new markets and client segments.
Slide 41: Grow your customers' wealth
Grow your customers’ wealth Reshaping financial markets through digital transformation and innovation Robert Fuchgruber CCO
Slide 42: The asset management industry in Europe is growing
The asset management industry in Europe is growing - and so is the proportion of retail customers who are invested. The distribution of AuM in Europe, shows that UK, France and Germany occupy the first three places. AuM is growing steadily - even if events such as the war in Ukraine are slowing this
Slide 43: The example of Germany shows trends that apply to all of Europe
The example of Germany shows trends that apply to all of Europe. Never before have more people saved in stocks. The younger generation invests broadly, regularly and for the long term. Funds and ETFs are the most popular forms of investment. A total of 12.9 million people were invested in shares, eq
Slide 44: Several factors have contributed to increased interest in capital markets
Several factors have contributed to the increased interest in the capital markets and the growing number of people investing in stocks, funds and ETFs. month +2.12% today +0.89% Access to Information Democratization of Investing Low Interest Rates Long-Term Wealth Creation Retirement Planning Financ
Slide 45: Several factors have contributed to increased interest in capital markets
Several factors have contributed to the increased interest in the capital markets and the growing number of people investing in stocks, funds and ETFs. month +2.12% today +0.89% Access to Information Democratization of Investing Low Interest Rates Long-Term Wealth Creation Retirement Planning Financ
Slide 46: Several factors have contributed to increased interest in capital markets
Several factors have contributed to the increased interest in the capital markets and the growing number of people investing in stocks, funds and ETFs. month +2.12% today +0.89% Access to Information Democratization of Investing Low Interest Rates Long-Term Wealth Creation Retirement Planning Financ
Slide 47: Several factors have contributed to increased interest in capital markets
Several factors have contributed to the increased interest in the capital markets and the growing number of people investing in stocks, funds and ETFs. month +2.12% today +0.89% Access to Information Democratization of Investing Low Interest Rates Long-Term Wealth Creation Retirement Planning Financ
Slide 48: Adaptation and innovation are crucial for banks and investment providers
Adaptation and innovation are crucial for banks and investment providers to thrive in an increasingly customer-centric and technology-driven investment landscape. To stay competitive in this changing landscape, banks and investment providers need to embrace technology, enhance customer experiences,
Slide 49: Factors that may hinder banks and investment providers adapting
While many banks and investment providers have taken steps to adapt to the changing landscape, several factors may hinder their ability to meet market demands. Legacy Systems. Regulatory Constraints. Risk Aversion. Organizational Structure and Culture. Customer Expectations. Competitive Landscape. C
Slide 50: Factors that may hinder banks and investment providers adapting
While many banks and investment providers have taken steps to adapt to the changing landscape, several factors may hinder their ability to meet market demands. Legacy Systems. Regulatory Constraints. Risk Aversion. Organizational Structure and Culture. Customer Expectations. Competitive Landscape. C
Slide 51: Factors that may hinder banks and investment providers adapting
While many banks and investment providers have taken steps to adapt to the changing landscape, several factors may hinder their ability to meet market demands. Legacy Systems. Regulatory Constraints. Risk Aversion. Organizational Structure and Culture. Customer Expectations. Competitive Landscape. C
Slide 52: Factors that may hinder banks and investment providers adapting
While many banks and investment providers have taken steps to adapt to the changing landscape, several factors may hinder their ability to meet market demands. Legacy Systems. Regulatory Constraints. Risk Aversion. Organizational Structure and Culture. Customer Expectations. Competitive Landscape. C
Slide 53: We now increase our speed, due to a larger team and more products
We now increase our speed, due to a larger team, more products and excellent networks. We have the technology, cover the value chain, can be fast and act in partnership. This is a unique offering on the market. Huddlestock's solutions are both technologically and functionally excellent, as evidenced
Slide 54: We are initially focusing on the achievable goals
We are initially focusing on the achievable goals, knowing that we will gradually be able to attack the entire market. Companies doing share issues Corporate finance firms, companies issuing preference shares Target region(s): Global Wealth managers without safekeeping Provide ready-to-launch softwa
Slide 55: We are initially focusing on the achievable goals
We are initially focusing on the achievable goals, knowing that we will gradually be able to attack the entire market. Companies doing share issues Corporate finance firms, companies issuing preference shares Target region(s): Global Wealth managers without safekeeping Provide ready-to-launch softwa
Slide 56: We are initially focusing on the achievable goals
We are initially focusing on the achievable goals, knowing that we will gradually be able to attack the entire market. Companies doing share issues Corporate finance firms, companies issuing preference shares Target region(s): Global Wealth managers without safekeeping Provide ready-to-launch softwa
Slide 57: We are initially focusing on the achievable goals
We are initially focusing on the achievable goals, knowing that we will gradually be able to attack the entire market. Companies doing share issues Corporate finance firms, companies issuing preference shares Target region(s): Global Wealth managers without safekeeping Provide ready-to-launch softwa
Slide 58: We are initially focusing on the achievable goals
We are initially focusing on the achievable goals, knowing that we will gradually be able to attack the entire market. Fund Companies Fintechs and Tier 2-4 banks without current investment offerings Target region(s): EU with a focus on Sweden Neo-banks, P2P platforms, Personal Finance Historically t
Slide 59: We are initially focusing on the achievable goals
We are initially focusing on the achievable goals, knowing that we will gradually be able to attack the entire market. Fund Companies Fintechs and Tier 2-4 banks without current investment offerings Target region(s): EU with a focus on Sweden Neo-banks, P2P platforms, Personal Finance Historically t
Slide 60: We are initially focusing on the achievable goals
We are initially focusing on the achievable goals, knowing that we will gradually be able to attack the entire market. Fund Companies Fintechs and Tier 2-4 banks without current investment offerings Target region(s): EU with a focus on Sweden Neo-banks, P2P platforms, Personal Finance Historically t
Slide 61: We are initially focusing on the achievable goals
We are initially focusing on the achievable goals, knowing that we will gradually be able to attack the entire market. Fund Companies Fintechs and Tier 2-4 banks without current investment offerings Target region(s): EU with a focus on Sweden Neo-banks, P2P platforms, Personal Finance Historically t
Slide 62: Our websites and social media channels are important tools
Our websites and our social media channels are important tools for achieving our goals. Relaunch of Bricknode website in April. Relaunch of Huddlestock website planned for June. Ongoing posts and activities across social media channels. Concept for future branding in progress.
Slide 63: Harmonization, streamlining and organizing for scalability
Harmonization, streamlining and organizing for scalability Reshaping financial markets through digital transformation and innovation Stefan Willebrand CTO
Slide 64: The three technology legs of Huddlestock
The three technology legs of Huddlestock Products & Services Solutions Consultancy • SaaS • Custom applications • Providing competence to customers • B2B Brokerage • Product development for customers
Slide 65: Combining tech skills with domain knowledge, our main value!
Combining tech skills with domain knowledge, our main value! This is how inventions like our dimension based transactional layers came to be
Slide 66: Our mission is to get three user types to love what we build
Our mission is to get three user types to love what we build Admin worker Wealth manager / Active investor Passive investor • Wants automation and no software! • Wants great tools and a lot of software! • Just wants the end result…profits! • And some reports that shows it
Slide 67: What have we done since Bricknode joined Huddlestock in April?
What have we done since Bricknode joined Huddlestock in April? Internal systems Alignment around roadmap Continue to ship! • Harmonization, streamlining and • Multiple releases and deliveries organizing for scalability • Business as usual! • We have to feel good internally before we can perform exte
Slide 68: We build our teams around our products and domains
We build our teams around our products and domains…not functions Platform team Broker team Lending team Solutions team Investment manager team
Slide 69: As CTO my main responsibilities are…
As CTO my main responsibilities are… Team development and happiness! Competitivity Scalability and continuity Optimize allocation of resources Well researched design
Slide 70: Buzzwords come and go, we focus on Real Intelligence!
Buzzwords come and go, we focus on Real Intelligence!
Slide 71: Prioritization is key
Prioritization is key We are still small and up against giants Organize and prioritize To win we have to be great at something, not ok on many things
Slide 72: Questions?
Questions? Reshaping financial markets through digital transformation and innovation