Siili Solutions Oy · OMXHEX:SIILI
Siili Solutions Oy — Investor Day (November 2020)
50 slides from Siili Solutions Oy's investor day presentation, Nov 3, 2020
Slide 1: Siili Capital Markets Day
Siili Capital Markets Day 3.11.2020 Helsinki HQ Broadcast 1
Slide 2: Executive Team of Siili
Executive Team of Siili Marko Somerma Jerry Jalassola Aleksi Kankainen Antti Kiukas Jarkko Malviniemi Kari Pirttikangas CEO VP, Creative Technology CFO CMO VP, Innovations VP, Operative Planning & Siili One Pasi Ropponen Hanna Seppänen Andreas Strandman Kristian Takala Kristiina Vainio CCO Director,
Slide 3: Board of Siili
Board of Siili Harry Brade Anu Nissinen Kati Hagros Tero Ojanperä — Chairman of the Board — Member of the Board — Member of the Board — Member of the Board — Chairman of the HR Committee — Vice Chairman — Member of the Audit Committee — Member of the Audit Committee — Chairman of the Audit Committee
Slide 4: Today's Talks
Today's Talks Marko Somerma Antti Kiukas Andreas Strandman On Siili and Strategy On New Brand On Digital Experiences Kristian Valkama Wojciech Kurek Aleksi Kankainen On SKALER - Intelligent Automation On Siili Auto On Key Financials 3.11.2020 Capital Markets Day 4
Slide 5: Siili Brand
Siili Brand Antti Kiukas 3.11.2020 Capital Markets Day 5
Slide 6: Digital Experiences through Creative Technology
Digital Experiences through Creative Technology 3.11.2020 Capital Markets Day 6
Slide 7: Siili Strategy
Siili Strategy Marko Somerma 3.11.2020 Capital Markets Day 7
Slide 8: Our focus is on the growing parts of the large market
Our focus is on 1. Industry and addressable market for 2021 IT Services Forrester predictions 2021 the growing parts Europe** Finland** “In 2021, every company will focus on technology-fuelled of the large 218 bn€ 4,2 bn€ experiences, operations, market Digital Services Development 2-2,5 bn€ product
Slide 9: 3-Pillar Strategy Drives Healthy Growth
3-Pillar Strategy Drives Healthy Growth 1. Build strong FIN Core – Digital Experiences through Creative Technology Partner with large & mid-sized customers in building unique competitive advantages, faster growth, and improved efficiency by offering full lifecycle digital services. Invest in develop
Slide 10: We have a Fantastic Team to Make IT Real
We have a Fantastic Team to Make IT Real Digital Experience Creative Technology Cloud & Devops — Design & Innovation — Data & AI — Cloud Managed Services — Digital Experience Platforms — Software Engineering — SAlabs — Analytics & AI — Integrations — VALA — Siili Auto — Enterprise Systems — SKALER +
Slide 11: Our Approach
Our Approach 1. Our Role - Digital Acceleration Partner Our work is always based on and assessed through our customer’s vision and strategy. Through human-centric design, we accelerate your digital change. 2. Our Core – Digital Experiences through Creative Technology We deliver full lifecycle digita
Slide 12: Siili as a Growth Platform
Siili as a Growth Platform 3.11.2020 Capital Markets Day 12
Slide 13: Corporate Model Accelerates Growth
l ita ap C Corporate Model Accelerates Growth New CORE 1. Siili as a Growth Platform — Incubation of new businesses and acquisitions of dynamic, well managed digital services companies. New CORE — Light business focused on integration and governance. — Exciting story for employees, entrepreneurs, an
Slide 14: Ensuring success of new incubated or acquired businesses
Ensuring success of new 1. Inspiring 2. Growth 3. Plug Into incubated or Solutions Acceleration Professional Support acquired — Facilitating the birth and Rainmaking machine — Finance, HR, IT, legal & development of new offerings. competence development. businesses — Communications and brand buildin
Slide 15: Experiences from Siili community
Experiences from Siili community Silli provides: — Support and environment for growth — Help in conquering new markets — Tools for professional marketing and brand building — Sales co-operation & new clients — Bigger and more interesting projects — Professional development possibilities — Business s
Slide 16: Siili is establishing a new Core Poland
Siili is — To accelerate its international growth, Siili is establishing a new Core Poland mirroring establishing Core Finland strategy & operating model. a new Core — Market focus is to grow client base in Europe Poland and to support Finnish operations. — Siili has in ~80 people in Poland. Core Po
Slide 17: Siili is building Platform for Healthy Growth
Siili is building CORE FIN Platform CORE POLAND for Healthy CORE FIN Growth CORE FIN Auto New A Auto NewCo Auto Skaler New B VALA VALA New C VALA 1. Build strong Core and 2. Accelerate 3. Multiply experiment Portfolio — Strategic direction & offering — Secure healthy growth — New Core countries — Co
Slide 18: Make Sustainability Real
Make Sustainability Real We look at sustainability from financial, social, and environmental points of view — Providing equal opportunities to employees: diversity & inclusion — Improving learning & well-being — Protecting privacy & security — Enforcing impactful ethical business relationships — Min
Slide 19: Digital Experience as our spearhead for growth
Digital Experience as our spearhead for growth Andreas Strandman Vice President, Digital Experience 3.11.2020 Capital Markets Day 19
Slide 20: Agenda
Agenda 1. What is Digital Experience (DX) Andreas Strandman until now: 2. Why are we focusing on DX Siili Solutions — Business Unit Director 3. Growth opportunities Industrial & Service sectors — Investor Relations — Marketing & Communications — Sales, Tribe Lead, Consultant Kiosked — Growing a star
Slide 21: What is Digital Experience (DX)
WHAT IS DIGITAL EXPERIENCE (DX) 3.11.2020 Capital Markets Day WHY DX 21
Slide 22: Our Holistic Approach to DX Sets Us Apart
Our Holistic Approach to DX Sets Us Apart End User & Her Digital Experience 3.11.2020 Capital Markets Day 22
Slide 23: Our Holistic Approach to DX Sets Us Apart
Our Holistic Approach to DX Sets Us Apart Digital Strategy End User & Her Digital Experience 3.11.2020 Capital Markets Day 23
Slide 24: Our Holistic Approach to DX Sets Us Apart
Our Holistic Approach to DX Sets Us Apart Digital Strategy End User & Her Digital Experience Experience Design 3.11.2020 Capital Markets Day 24
Slide 25: Our Holistic Approach to DX Sets Us Apart
Our Holistic Approach to DX Sets Us Apart Digital Strategy End User & Her Digital Experience Digital Experience Platforms Experience Design 3.11.2020 Capital Markets Day 25
Slide 26: Our Holistic Approach to DX Sets Us Apart
Our Holistic Approach to DX Sets Us Apart Software Engineering Digital Strategy End User & Her Digital Experience Digital Experience Platforms Experience Design 3.11.2020 Capital Markets Day 26
Slide 27: Our Holistic Approach to DX Sets Us Apart
Our Holistic Approach to DX Sets Us Apart Software Engineering Digital Strategy Data & Intelligence End User & Her Digital Experience Digital Experience Platforms Experience Design 3.11.2020 Capital Markets Day 27
Slide 28: Our Holistic Approach to DX Sets Us Apart
Our Holistic Approach to DX Sets Us Apart Software Engineering Digital Strategy Data & Intelligence End User & Her Digital Experience Automation Digital Experience Platforms Experience Design 3.11.2020 Capital Markets Day 28
Slide 29: Our Holistic Approach to DX Sets Us Apart
Managed Our Holistic Approach Services to DX Sets Us Apart Software Engineering Digital Strategy Data & Intelligence End User & Her Digital Experience Automation Digital Experience Platforms Experience Design 3.11.2020 Capital Markets Day 29
Slide 30: For our customers investing in DX makes sense
For our — Poor DX leads to high customer, employee, and — User-centred design enables investing in — Great DX leads to advocacy and free customers supplier attrition what’s essential publicity investing in DX makes sense In 2021, leaders of digital brands will widen the gap further by concentrating
Slide 31: Re-designing the "Afterlife Ecosystem"
Re-designing the “Afterlife Ecosystem” Siili understood the challenges and targets very quickly and was able to illuminate them in a very intuitive manner. Mikael af Hällström Development Expert Finnish Tax Administration We re-designed the complicated administrative user journey taking place after
Slide 32: Our DX projects lead to tangible benefits for our customers
Our DX projects lead to tangible benefits for our customers – Growth, efficiency and competitive advantage Websites To improve lead generation and conversion rates Online portals To strengthen the relationship and lifetime value of customers & suppliers Mobile apps To increase productivity by enabli
Slide 33: Why are we focusing on Digital Experience
WHY ARE WE FOCUSING ON DIGITAL EXPERIENCE 3.11.2020 Capital Markets Day WHY DX 33
Slide 34: We are already strong in DX
We are already strong in DX As shown earlier, the market is substantial and growing. Those able to respond to the demand will grow and capture market share. Substantial ongoing business The right experts Proven results — Projects in all verticals: public sector, — Team of 230+ experts specialised in
Slide 35: Competitive advantage through world class supplier experience
Case Global Process Industry company Competitive advantage through world class supplier experience As a result of our partnership and the supplier portal we have built, our customer is able to secure crucial raw material in a highly competitive market. 3.11.2020 Capital Markets Day 35
Slide 36: Efficiency and customer retention through improved user experience
Case Teosto Efficiency and customer retention through improved user experience We chose Siili because they have a good reputation as a technology and integration partner. Along the way we have discovered that Siili also excels in understanding our business and the intricacies of our customer journey
Slide 37: Growth Opportunities
GROWTH OPPORTUNITIES 3.11.2020 Capital Markets Day WHY DX 37
Slide 38: Digital Experience as our spearhead for growth
Digital Experience as our spearhead for growth By focusing on DX, we create opportunities for revenue and profit growth, both within our core business and in adjacent markets. Strategic position in Accelerated growth in Potential for digital value chain new markets higher margins — C-level access by
Slide 39: Siili Financials
Siili Financials CFO Aleksi Kankainen 3.11.2020 Capital Markets Day 39
Slide 40: We have successfully retained our strong customer base
We have Organic growth specification 2017 - 2019 successfully 140% retained our 120% strong customer 100% base… 80% 60% 40% 20% 0% 2017 2018 2019 Base revenue Existing clients growth New clients 3.11.2020 Capital Markets Day 40
Slide 41: ...this has resulted to continuing organic growth and CAGR +15 %
Organic growth target for 2021-2022 is 10 % p.a. …this has resulted Siili group revenue 2016 - Q3 2020 ltm to continuing 90 CAGR 15 % 80 organic growth 70 and CAGR +15 % 60 50 Organic growth 2019 +8,5 % 40 YTD growth Q3 2020 +5 % 30 Some corona impact in 2020 20 Overall CAGR +15 % p.a. from 2016 10
Slide 42: Profitability on the right track...
Adj. EBITA target is 10 % in 2021 - 2022 Profitability on the adj. EBITA and EBITA % 2016 - 2020 right track… 7 12% 6 10% 5 8% 4 6% 3 Turnaround after 2018 drop in profits 4% 2 Key drivers in 2020 1 2% — Siili Core and VALA growing — Consistent improvement in 0 0% utilization rate in Finland 2016 20
Slide 43: ...international business impacted by pandemic
In the international business growth rate target is double compared to domestic business …international Share of international revenue 2016 - H1 2020 business 12 16% impacted by 10 14% pandemic 12% 8 10% Siili Auto is main part of international 6 8% business 6% Cost savings carried out in 2020 4 ref
Slide 44: We have continued to maintain our core competence
We have 900 Siili headcount 2016 - Q3 2020 and subcontractors continued to 800 maintain our core 700 competence 600 500 Subcontractors Slowdown in headcount in 2020 due 400 Headcount to pandemic – Siili Auto adjusting to market conditions 300 200 Higher utilization driving growth 100 Somewhat slower
Slide 45: Strong balance sheet supports our growth ambitions
ROI Net debt / EBITDA 40% 1 35% 0,8 Strong balance 30% 25% 0,6 sheet supports 20% 15% 0,4 our growth 10% 0,2 0 ambitions 5% H2 2019 H1 2020 0% -0,2 2019 H1 2020 Net debt includes IFRS 16 liability, EBITDA based on reported EBITDA including IFRS 16 adjustement Strong ROI improvement driven by Siili t
Slide 46: Financial guidance 2020
Financial — Siili withdrew the financial guidance for 2020 on the 20th April 2020 guidance 2020 due weak visibility on market situation caused by the covid-19 pandemic — New financial guidance for 2020: we estimate that both revenue and adjusted EBITA will be higher than previous year. In 2019 Siili
Slide 47: Good position to move on!
Good position to — Solid customer base move on! — Profitability continues to improve — Some uncertainty still in the air due to covid — Strong financial position to support growth plan 3.11.2020 Capital Markets Day 47
Slide 48: Q&A
Q&A 3.11.2020 Capital Markets Day
Slide 49: Covid-19 impact on Siili
Covid-19 impact on Siili In 2020 Medium to long term — Wide customer portfolio, long term partnerships & — Digitalization will accelerate. Siili’s key role in developing critical processes have stabilised impact. “Paradigm change from physical to digital world as all stakeholders' experiences will b
Slide 50: Summary "Digital forest"
Summary CORE FIN — Our vision: To become the best digital community for our CORE POLAND customers, employees & entrepreneurs to learn, grow, and create sustainable value. — 3-pillar strategy 1. Build strong Core Finland – Digital Experiences through Creative Technology. Auto New A 2. Build specialis