Inin Group As · OSL:ININ
Inin Group As — Elop AS — Q4 2021 Earnings Presentation
43 slides from Inin Group As's earnings presentation, Mar 3, 2022
Slide 1: Q4 2021 Presentation
Q4 2021 Presentation 3 March 2022
Slide 2: Cautionary note
Cautionary note This presentation includes forward-looking information and statements that are subject to risks and uncertainties. Actual results may differ significantly from those communicated herein. Such forward-looking information pertain to, amongst other things; (a) forecasts, projections and
Slide 3: Presenting team
Presenting team Øivind Horpestad Bård Myrstad Kim Boman CEO and Chair of The Board Chief Operating Officer and CEO Simplifai Chief Financial Officer 3
Slide 4: Q4 2021 Highlights and subsequent events
Q4 2021 Highlights and subsequent events Q4 HIGHLIGHTS SUBSEQUENT EVENTS • Simplifai contracted monthly recurring revenue (MRR) • Elop Technology secures distribution of the Elop up 233% YoY Insight in 11 new markets • Elop Technology receives first order from Japan and • First Elop Insight sales se
Slide 5: Technology
TECHNOLOGY Technology
Slide 6: Elop Technology has developed a revolutionary rolling ultrasound scanner for concrete
Elop Technology has developed a revolutionary TECHNOLOGY rolling ultrasound scanner for concrete Current subsurface inspection technologies all have …which is why Elop developed and patented the their limitations… world’s first rolling ultrasound scanner for concrete Tech Main use Limitations • Glob
Slide 7: Elop Technology expects to open up a new market with significant potential
Elop Technology expects to open up a new TECHNOLOGY market with significant potential Future Ultrasound when implemented as part of quality assurance of new built 5000+ units per year Today Current high-end ultrasonic scanner market for concrete 500+ units per year 7
Slide 8: Elop Technology is expanding its distributor / partner network
Elop Technology is expanding its distributor / TECHNOLOGY partner network • Signed a sales agent agreement for the markets in Spain and Portugal • Signed distribution agreement (LOI) for Japan • Ongoing discussions with multiple Distributors expected to be announced in the coming months +1 • Elop’s
Slide 9: Currently no requirements on testing concrete before project handover
Currently no requirements on testing concrete TECHNOLOGY before project handover There has not been any practical way of testing the concrete in newly constructed tunnels, before Elop Insight Elop Insight can detect voids behind the prefabricated concrete liner. These voids tend to fill up with wate
Slide 10: Major asset owner expected to launch new standard – mandatory inspections of concrete
Major asset owner expected to launch new standard – TECHNOLOGY mandatory inspections of concrete as part of handover 1 Define quality & specifications of concrete structure • The inspection expected to become a standard 2 Commission project part of the hand-over inspection and documentation of all c
Slide 11: Mandatory inspections of concrete structures will add value for asset owners and authorities
Mandatory inspections of concreate structures TECHNOLOGY will add value for asset owners and authorities Sources: https://edition.cnn.com/2022/01/28/us/pittsburgh-bridge-collapse/index.html, https://www.nytimes.com/news-event/miami-building-collapse, https://www.rfi.fr/en/europe/20201226-inquiry-int
Slide 12: Consequences of not knowing the concrete quality inside your construction
Consequences of not knowing the concrete TECHNOLOGY quality inside your construction For society, infrastructure owners and users Short infrastructure Increased costs of Accidents that could High CO2 emissions lifetime maintenance have been prevented from production and construction 12
Slide 13: Field tests across Europe and asset classes – aim to complete 50 field tests
Field tests across Europe and asset classes – aim TECHNOLOGY to complete 50 field tests before end of Q1 ‘22 Selected completed field tests and product demonstrations Field test with partner on apartment building in Florida, US BAM (German Federal Institute for Materials Research and Testing) German
Slide 14: Elop moving in the right direction
Elop moving in the right direction TECHNOLOGY Introducing new technology to create a new Recognition high growth market • Exponential sales growth Success stories • International NEW ENTRIES expansion ONGOING • First sales • Global distribution COMPLETED Credibility • New industries • New geographic
Slide 15: Simplifai has successfully managed to grow its stand-alone business…
Simplifai has successfully managed to grow its stand-alone business… …while supporting Elop Technology with: ✓ Software competence ✓ Technology development ✓ Access to competence and resources in India & Ukraine 15
Slide 16: Slide 16
Slide 17: Contracted MRR of NOK 1,1m as of end Q4 2021, up 233% from Q4 2020
Contracted MRR1 of NOK 1,1m as of end Q4 2021, up 233% from Q4 2020 MRR Development (NOK Thousand) 1,200 +233% (+770) • Starting to tap into upsell potential in 1,000 existing client relationships • Strong international growth due to 800 several geographical market breakthroughs in past 12 months 60
Slide 18: Selected customers
Selected customers BFSI clients Other industries Public sector Asia Nordics Europe
Slide 19: More information about some of our clients
More information about some of our clients • The National Archival Services of Norway (Norwegian: Arkivverket) • Joint venture Bajaj Group of India and Allianz SE is a Norwegian government agency that is responsible for keeping • Operates 759 branches across India state archives, conducts control of
Slide 20: Selected client wins Q4 2021
Selected client wins Q4 2021 • Third-largest office space provider in Asia with • As part of one of the Nordic’s leading financial a network spanning Greater China, Southeast advisors Söderberg&Partners, Claims Link Asia, North Asia, India, Sri Lanka, Australia and the delivers claims settlement ser
Slide 21: Illustration of upsell potential for current clients
Illustration of upsell potential for current clients 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 MRR (kNOK) Area A - Emailbot (1st deal) 25 Area A - Documentbot (2nd deal) 22 Customer A +66 Area A - Digital archivist (3rd deal) 14 (+262%) Area B - Emailbot and documentbot (4th deal
Slide 22: Illustration of mid-term potential ARR of current client portfolio ~50M NOK
Illustration of mid-term potential ARR of current client portfolio ~50M NOK i.e. +281% ARR (MNOK) +281% 55 50 50 45 40 35 37 30 25 20 15 13 10 5 0 2021 year end ARR Expansion Mid-term potential ARR 22
Slide 23: Simplifai's solution
Automating with natural language is hard – we have simplified this Simplifai’s solution Problem • Automating processes driven by • Simplifai has developed a no- unstructured natural language is code platform to automate difficult everyday office work processes • These processes are common in • The s
Slide 24: The Global Intelligent Process Automation market is growing and adopted by mainstream
The Global Intelligent Process Automation market is growing and adopted by mainstream Global Intelligent Process Automation Market (USD Billion) 22 20 CAGR 18 12,9% 16 14 12 10 17,8 8 6 4 7,5 2 0 2018 2023 Sources: Gartner, https://www.marketsandmarkets.com/Market-Reports/intelligent-process-automat
Slide 25: Simplifai's GTM strategy combines focused direct sales with partnership sales
Simplifai’s GTM strategy combines focused direct sales with partnership sales + Control + Flexibility - Cost and speed of scaling Nordics Direct sales Benelux India Telecom Logistics Public BFSI Partnership sales Global + Large scalability potential + Large reach + Moderate fixed cost - Needs refere
Slide 26: Partners
Partners knowit Ass v Consulting nevigate Crayon Proffcom © ge Microsoft UilPath
Slide 27: Key stepping stones for Simplifai
Key stepping stones for Simplifai Capturing a high growth market Recognition • Exponential sales growth • Widespread international NEW ENTRIES Success stories expansion ONGOING • Global distribution • Claims Link and OSM COMPLETED Maritime success stories • Recognized as leading Credibility vendor w
Slide 28: ARR target of 1 BNOK in 2026
ARR target of 1 BNOK in 2026 End-of-year ARR (MNOK) 1 000 ~1000 750 500 250 13 25-50 0 2021 2022 2023 2024 2025 2026 28
Slide 29: Q4 2021 interim financial results
Q4 2021 interim financial results
Slide 30: Elop Group income statement
Elop Group income statement Amounts in NOK thousand Q4 2021 Q4 2020 FY 2021 FY 2020 Revenue 5,009 - 13,382 - • Simplifai revenues are consolidated from Jan 18 2021 Other operating revenue - - - - Total revenue 5,009 - 13,382 - Cost of sales 1,288 135 2,804 145 Employee benefit expenses 11,877 6,364
Slide 31: Liquidity Elop Group
Liquidity Elop Group NOK million +9 • Grants of NOK 4m from 134 Innovasjon Norway1) 133 132 • Loan offer from Innovasjon 5 Norway1) of NOK 5m 130 128 126 4 124 124 122 120 4 2 0 1) 1) Cash balance Grants Loan offer Total Q4 2021 Innovasjon Norge 1) Conditions to be met to be eligible for payment of
Slide 32: Summary & Outlook
Summary & Outlook
Slide 33: Gradual shift towards contracted recurring software revenue
Gradual shift towards contracted recurring software revenue Elop revenue expected to pick up with software and scanner roll-out Revenue, MNOK 2026 TARGETS 1 500+ >1 500M NOK Revenue ~1000 Simplifai >40% EBITDA margin Elop Technology >75% Recurring revenue 2020 2021 2022 2023 2024 2025 2026 Note: Sim
Slide 34: Summary and Outlook
SUMMARY OUTLOOK • Simplifai contracted MRR up 233% YoY • Interest in Elop Technology expected to continue to grow as technology matures/adoption increases • Elop Technology receives first order from Japan and signs LOI for distribution rights to the Japanese • On track to launch Insight Crawler in c
Slide 35: Appendix
Appendix
Slide 36: General
General General Alternative Performance Measures Elop AS (the Company) was founded in 2013 and is a The European Securities and Markets Authority (ESMA) issued guidelines on Alternative Performance limited liability company who is incorporated and domiciled in Norway, with its head office in Measure
Slide 37: Elop AS Group consolidated balance sheet
Elop AS Group consolidated balance sheet Amounts in NOK thousand Q4 2021 FY 2020 Amounts in NOK thousand Q4 2021 FY 2020 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Goodwi l l 121,094 - Sha re ca pi tal 5,900 3,515 Intangi bl e a s s ets 94,441 28,690 Sha re premi um 434,787 181,220 Prop
Slide 38: Cashflow statement
Cashflow statement Amounts in NOK thousand Q4 2021 Q4 2020 FY 2021 FY 2020 Cashflows from operating activities Profit/(loss) before income tax (19,763) (17,355) (77,573) (31,217) Adjustments for Depreciation and amortization 4,736 420 12,579 420 Change in trade and other receivables (3,608) 13 (1,23
Slide 39: Segment financial summary
Segment financial summary Segments YTD - 2021 Elop Unallocated/ Amounts in NOK thousand Simplifai Total Group Technology eliminated Revenue 266 13,117 13,382 Internal revenue 96 9,094 -9,190 - Total revenue 362 22,210 -9,190 13,382 Cost of sales 220 2,584 - 2,804 Employee benefit expenses 15,699 26,
Slide 40: 20 largest shareholders
20 largest shareholders # Name No of shares % Ownership 1 Melandsø Invest As 12,771,081 10.8 • At 31st of December 2021; 6,200,000 outstanding options. 2 Gimle Invest As 8,830,684 7.5 3 Sogn Invest As 6,436,025 5.5 4 The Bank Of New York Mellon Sa/Nv 6,036,326 5.1 5 Tigerstaden Invest As 4,785,025 4
Slide 41: Elop Technology's solutions will contribute to securing critical infrastructure
Elop Technology’s solutions will contribute to securing critical infrastructure Several global bridge and building collapses exemplifies the need for improved inspection, surveys and maintenance of critical infrastructure. Elop Technology and its solutions provide information and insight into the co
Slide 42: Elop Technology will contribute to the reduction of CO2 generated by the concrete production industry
Elop Technology will contribute to the reduction of CO2 generated by the concrete production industry Extending life of existing concrete structures through optimized maintenance and inspection, will have a significant benefit to the environment - reducing the CO2 emissions from the concrete product
Slide 43: Elop Insight on market – development tracks progressing according to plan
Elop Insight on market – development tracks TECHNOLOGY progressing according to plan On market Q1 22 Under development (2023) Elop Insight Elop Insight Crawler Multrawheel Asset Management System1 Product • Hand-held rolling ultrasound scanner • Rolling ultrasonic scanner combined • Rolling ultrasou