Slide 1: Prioritizing the right opportunities
Prioritizing the right opportunities 2023 Q3 & 9M INVESTOR & ANALYST PRESENTATION 31 OCTOBER 2023
Slide 2: Presenters
PRESENTERS CEO CFO Jørn Larsen Kristian Wulf-Andersen Year of joining 1996 Year of joining 2007 Year of birth 1966 Year of birth 1971 Nationality Danish Nationality Danish Educational background Mechanical engineering degree - Civil engineering Educational background Bachelor in Economics - Aarhus B
Slide 3: Disclaimer - Important Information
DISCLAIMER ・ IMPORTANT INFORMATION This presentation contains forward-looking statements including, but not limited to, statements and expectations concerning expected or projected earnings, strategies, trends and developments. Forward-looking statements are statements (other than statements of hist
Slide 4: Revenue growth of 13% in 9M/23 in a slower market
Revenue growth of 13% in 9M/23 in a slower market (1) 20% EURm 34% 23% 9% 37% 17% 12-15% Revenue from acquisitions Revenue (2) Guidance 207-212 Revenue growth 184.9 183.4 158.5 4.0 9M/23 148.9 13.2% 138.0 115.4 24% GR: 106.4 r C A 2.8 e a 86.5 5- y 1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 5: 15.2% margin in 9M/2023 due to investments in sales
15.2% margin in 9M/2023 due to investments in sales EURm 16.3% to 12.4% 12.4% 17.5% 18.1% 17.3% Adjusted EBITDA, Trifork Segment 17.6% Guidance (1) Adjusted EBITDA margin, Trifork Segment 34.5-36.5 31.9 28.6 9M/23 23.3 15.2% 20.2 2 4 % G R: r C A yea 15 - 13.3 10.7 2007 2008 2009 2010 2011 2012 2013
Slide 6: 2023 guidance maintained
2023 guidance maintained Trifork Group Trifork Segment Trifork Group Trifork Group revenue adj. EBITDA EBIT NIBD/adj. EBITDA Guidance 2023 EURm 207-212 EURm 34.5-36.5 EURm 20.5-22.5 No guidance (UPDATED ON 5 OCTOBER 2023) 12.0% - 14.7% growth1 16.3% - 17.6% margin 9.7% - 10.9% margin Mid-term target
Slide 7: Trifork Group in short
Trifork Group in short 12.1% 12.1% 3.8% Trifork segment Trifork Labs - 72 individual business units - 21 strategic partnerships & startups Digital Smart - 1,202 employees in 15 countries FinTech - Minority investments Health Building - Majority ownership - Software products and platforms - Software
Slide 8: The CFO agenda has gained importance in the market
The CFO agenda has gained importance in the market Mobile devices Pressure on Cyber Sustainability Hybrid cloud in field & healthcare protection movement operations factory system Cost flexibility CFO AGENDA Cost savings Cost savings Reducing emissions NIS2 compliance GDPR compliance Customer outcom
Slide 9: Financial highlights in Q3
Financial highlights in Q3 REVENUE GROWTH KEY FINANCIALS KEY STATISTICS Organic growth ▪︎ 72 business units (1) Inorganic growth EURm 48.0 7.7% ▪︎ 1,202 headcount Q3/2023 revenue Q3/2023 organic ▪︎ 21 active startups revenue growth ▪︎ 58.2m video views online +10.2% EURm 7.0 14.5% +13.2% Q3/2023 Tri
Slide 10: Performance update Q3
TRIFORK SEGMENT Performance update Q3 2.3% Inspire ▪︎ Q3 is seasonally a slow quarter for conferences ▪︎ Sponsorships and ticket purchases still hit by corporate cost savings ▪︎ We are planning to slow down conference investments ▪︎ Satisfactory growth in our online tech universe GOTO - now 58m tota
Slide 11: Main events in Q3
TRIFORK SEGMENT Main events in Q3 Organization ▪︎ 1,115 FTEs on average (Q3/22: 985) and 1,202 employees in total (Q3/22: 1,044) (1) ▪︎ Employee churn was 14.1% (Q2/23: 13.6%, Q1/23: 14.3%) ▪︎ Sick leave 9M/23 was 2.1% (9M/22: 2.5%) ▪︎ Acquisition of 20.0% minority stake in Nine A/S took Trifork's o
Slide 12: Biodiversity protection with AI
CASE STORY BUSINESS AREA: SMART ENTERPRISE Biodiversity protection with AI (1) 1,844 Danish species of animals, plants, and fungus risk extinction Protecting biodiversity by using AI to identify and mitigate invasive alien plant species along roads in Denmark, Sweden, and Iceland Existing manual mon
Slide 13: Business area highlights in Q3
TRIFORK SEGMENT Business area highlights in Q3 FinTech 12.1% Digital Health 12.1% Smart Building 3.8% ▪︎ Carve-out of IT applications and ▪︎ Launched onboarding for Swiss Post of the ▪︎ First Trifork Dataplatform delivery implementation with new pension company electronic patient record in six Swiss
Slide 14: Business area highlights in Q3
TRIFORK SEGMENT Business area highlights in Q3 Smart Enterprise 46.3% Cyber Protection 6.6% Cloud Operations 16.5% ▪︎ Self service portal for Evida ▪︎ Several events focused on NIS2 requirements ▪︎ Business mix continue to shift towards more ▪︎ Store exit portal for REMA 1000 showing that ▪︎ New sec
Slide 15: Top 10 of Labs book value remains in good shape
TRIFORK LABS Top 10 of Labs book value remains in good shape Position 1-5 ALPHABETIC ORDER 6.9% Position 6 – 10 ALPHABETIC ORDER REST AxonIQ &Money Software development framework 20.2% NextGen fintech solutions POS. 6–10 C4 Media Arkyn Studios Software media and conferences BOOK VALUE Field and fact
Slide 16: ESG update Q3
STATUS 30 SEPTEMBER 2023 ESG update Q3 Hired ESG Manager Governance ▪︎ Our new lead ESG manager started in September ▪︎ Continuous development of data gathering that allows for more relevant ESG disclosure ▪︎ Will help us achieve industry-leading ESG results and reporting ▪︎ Continuous awareness tra
Slide 17: Trifork Group / Trifork Segment performance
Trifork Group / Trifork Segment performance REVENUE Organic growth Q3 2023 Inorganic growth +10.2% ▪︎ Revenue of EURm 48.0 equal to 10.6% revenue growth +13.2% ▪︎ Adjusting for non-core hardware and third-party license revenues in Run, organic growth was 8.2% in Q3 and 11.7% for 9M ▪︎ US and Switzer
Slide 18: Trifork Segment performance
Trifork Segment performance ADJUSTED EBITDA Q3 2023 Growth +4.9% Margin ▪︎ Adj. EBITDA 15.2% 16.4% ▪︎ No adjustments for special items in the quarter or in Q3/22 ▪︎ Continued investments in sales initiatives resulted in a decline in Q3/23 vs. Q3/22 -10.7% ▪︎ EURm 7.0, equal to margin of 14.5% (Q3/22
Slide 19: Trifork Group performance
Trifork Group performance EBIT Q3 2023 Growth Margin ▪︎ EBIT +0.4% ▪︎ No special items in the quarter or in Q3/22 ▪︎ Small increase in depreciations and amortizations from IBE acquisition 9.0% 8.0% ▪︎ 6.6% margin (Q3/22: 10.3%) impacted by investments in business development -29.7% ▪︎ While we alway
Slide 20: Trifork Segment performance
Trifork Segment performance REVENUE BY SUB-SEGMENTS (EURM) ADJ. EBITDA AND MARGINS BY SUB-SEGMENT IN 9M/23 Other Run -69.0% 18.9% 22.0% n.m. 15.2% Build Inspire 20
Slide 21: Inspire performance
Inspire performance REVENUE ADJUSTED EBITDA Organic growth Q3 2023 ▪︎ Seasonally quiet quarter for conferences ▪︎ Revenue increased slightly compared to the same period in 2022 - but not enough to cover the additional cost invested in increasing the organization and activities. +7.2% ▪︎ Started prep
Slide 22: Build performance
Build performance REVENUE ADJUSTED EBITDA Organic growth Margin Q3 2023 ▪︎ EURm 35.5 revenue corresponding to 4.8% growth, which was all organic ▪︎ Growth primarily driven by Smart Enterprise in the -3.1% quarter, with good performance in Denmark, +8.1% Switzerland, and US ▪︎ Adj. EBITDA margin decl
Slide 23: Run performance
Run performance REVENUE ADJUSTED EBITDA Organic growth Margin Q3 2023 Inorganic growth (1) +17.6% ▪︎ 29.8% revenue growth ▪︎ 15.6% organic revenue growth +31.5% ▪︎ 20.9% organic growth if adjusted for aperiodic and non-core hardware and third-party licenses (1) +15.6% +85.3% ▪︎ Inorganic contributio
Slide 24: Run revenue split
Run revenue split (1) Hosting and security Licenses and support Third-party licenses Hardware Adj. EBITDA margin 21.7% 16,000 23.2% 12,000 21.1% 12.1% 16.2% 20.1% 23.5% 28.3% 19.0% 16.4% 28.5% 8,000 20.6% 15.7% 22.7% 22.6% 4,000 Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 Q1/2022
Slide 25: Labs performance
Labs performance EBT (EURM) INVESTMENTS (EURM) Acc. realized gain Acc. unrealized gain Cash / cost in active investments (1) 1) Out of the EURm 37.1 of invested capital in Trifork Labs at the end of 9M 2023, EURm 20.3 came from deconsolidated Trifork Group companies and EURm 16.8 from cash investmen
Slide 26: Cash flow and financial position
Cash flow and financial position NET INTEREST-BEARING DEBT Q3 2023 Leverage ratio (NIBD/adj. EBITDA) ▪︎ Operating cash flow of EURm 11.6 (Q3/22: 6.0) -0.6x ▪︎ Investing activities of EURm -1.5 (Q3/22: -0.9) -0.1x ▪︎ Financing activities of EURm -1.4 (Q3/22: -2.4) 2.2x 0.5x ▪︎ Net interest-bearing de
Slide 27: Q&A
Q&A Strong non-cyclical growth drivers Software innovation specialists Please raise your hand to ask a question Long track record of resilient growth and margins Full-circle and low risk business model Effective and agile teal organization Successful and profitable R&D model Enabling customers to be