Slide 1: Q2 2024 report
Q2 2024 report AUGUST 27TH, 2024
Slide 2: Disclaimer
Disclaimer IMPORTANT – You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by SmartCraft ASA (the "Company") or any person on behalf of the Company, and any question-and- answer session that follows the oral
Slide 3: Solid performance in a challenging market
Solid performance in a challenging marked o SmartCraft and the market o Q2 highlights o Financials o Summary and Q&A
Slide 4: SaaS for SME construction companies
SaaS for SME construction companies People Industry challenges Documentation o 0-5% margins -> High level of bankruptcies o High level of conflict between construction company and customer o High level of accidents and deaths Material o Increasing demand for documentation and reporting SmartCraft di
Slide 5: Leading position in the Nordics
Leading position in the Nordics Solid performance over time 2019 2023 LTM o Consistent and solid growth before ARR 145 387 461 NOKm and after the IPO in June 2021 29.4% CAGR o Constantly gaining market share Adjusted EBITDA 36% 42% 40% margin o 16 offices in Sweden, Norway, 4.0 p.p uplift Finland an
Slide 6: Renovation is our main segment
Renovation is our Norwegian construction market by segment, bNOK main segment New residential Renovation residential New commercial Renovation commercial New Infrastructure Renovation infrastructure 160 Renovation is our target market 140 o Large market, bigger than new build 120 o Less volatile, wi
Slide 7: Soft market with some early positive signs
Bankruptcies and new establishments in Norway1 Soft market with some +14% early positive signs o Growth in both bankruptcies and new +72% establishments in Norway Bankruptcies/Liquidations New establishements o UK insolvencies in the construction industry Jul 22 - Jun 23 Jul 23 - Jun 24 stable last
Slide 8: Q2 highlights
Q2 highlights Sala. SmartCraft BETTER DIGITAL TOOLS
Slide 9: Q2 2024 financial highlights
Q2 2024 financial highlights Continued strong growth, consistently high margins and low churn MNOK 461 29% 8% Annual Recurring Adjusted EBITDA-capex Low churn Revenue -0.3 p.p. +0.5% +29% Consistently hi excl. acquisitions +2% profitability
Slide 10: Good growth in marketing & sales efficiency
Good growth in marketing Brand exposure for the SmartCraft Group & sales efficiency 1 o +480% brand exposure (YoY) o Gather around SmartCraft brand Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec o Present at big industry trade fairs o Norbygg o Eliaden Inbound leads YoY o On- site purchases and clo
Slide 11: Real time emission data solution solving construction industry's reporting requirements
Real time emission data solution solving construction industry’s reporting requirements Open-source solution provided by SmartCraft as a contribution to simplify CO2 tracking in Sweden. o Capturing real time emission data from a range of truck manufacturers o Solving the construction industry’s requ
Slide 12: Bygglet product launches to drive stickiness and upsell
Bygglet product launches to drive stickiness and upsell Bygglet new app replaced legacy app in Q2 o 4.4 out of 5 review for new app Bygglet new budget module in pilot o Great feedback, promising pickup rate
Slide 13: Piloting new packaging to enable cross-sell
Piloting new packaging to enable cross-sell Low entry price Low entry price x 2-3 Low entry price x 4-5 ELECTRO BASIC ELECTRO PREMIUM ELECTRO PREMIUM+ Electro Basic features Basic quoting Project & stock mgmt. Electro Basic features Time & materials Electro Premium features Order management Upsell:
Slide 14: Accretive M&A
Accretive M&A o Acquired 2 solutions for construction companies and property developers o Locka (Sweden) April o 3D visualization and end-customer interaction ~ ARR NOK 55 million ~ 600 customers o Clixifix (UK) May o Management of complaints, repairs and defects o Softer construction market has fac
Slide 15: Best of breed solutions for all parts of the construction cycle
Best of breed solutions for all parts of the construction cycle Specialized solutions for different parts of the property life cycle Marketing & sales Construction phase QA and HMS Guarantee / service Solutions for across all phases of a property life cycle
Slide 16: Large total addressable market (TAM)
Large total addressable market (TAM) TAM (NOK) o TAM of NOK 50 billion* o ~700.000 addressable construction companies o The UK increases TAM by 70% Norway Sweden Finland UK *Analysis by SmartCraft, August 2024. Compounded on basis of ARPC, penetration and addressable companies (ADL model, 2020)
Slide 17: Q2 key takeaways
Q2 key takeaways o Continued growth and high margins despite challenging market o Strong results from marketing and sales activities across the group o New product launches to drive stickiness, upsell and cross-sell o Acquired 2 solutions, increasing the TAM to NOK 50 bn
Slide 18: Financials
Financials Sle. SmartCraft BETTER DIGITAL TOOLS
Slide 19: High growth in recurring revenue as basis for success
Quarterly ARR growth history, mNOK High growth in recurring Organic growth M&A revenue as basis for success 54,7 o 29% growth in ARR o 2.3% organic growth quarter-over-quarter 5,8 o Growth hampered by increased downgrades and 2,8 17,3 10,3 12,8 12,1 13,2 12,7 churn 8,3 5,6 3,4 9,2 o Substantial ARR
Slide 20: Continued growth in revenue and strong profitability
Continued growth in revenue and strong profitability Solid YoY revenue growth Consistently high profitability R&D capex mNOK mNOK 95.8% 89.6% 40 0 35 0 +31.9% 133,0 0 30 43,5 % 41,9 % 10,8 % 0 39,3 % 40,9 % 38,5 % 9,3 % 25 0 100,9 20 0 32,7 % 33,8 % 31,4 % 33,1 % 0 29,2 % 15 12,3 Acquired 10,9 Cored
Slide 21: Strong revenue growth in Sweden
Strong revenue growth in Sweden (mNOK) Sweden +47% o Strong growth o Acquisition of Coredination and Locka 46,0 23,6 67,5 31,1 o Maintained momentum in sales to new customers Q2'23 Q2'24 o 2023 revenue boosted by non-recurring Revenue EBITDA Revenue growth handbook sales o Positive signals in market
Slide 22: Solid growth and high margin continue in Norway
Solid growth and high margin Norway (mNOK) continue in Norway +11% o Continued good growth in revenue o Structures sales process drove growth of 41,6 20,8 46,2 21,4 new customers Q2'23 Q2'24 o Growth hampered by increased churn and downgrades Revenue EBITDA Growth o Adjusted EBITDA margin decrease d
Slide 23: Positive signals in a challenging Finnish market
Positive signals in a Finland (mNOK) challenging Finnish market -6% o Negative growth stabilized from Q1 13,3 4,8 12,5 3,6 o Positive market signals Q2'23 Q2'24 o Initiated construction projects exceed Revenue EBITDA Revenue growth project completion o Good marketing and sales activities building po
Slide 24: Solid financial position and strong cash flow
Solid financial position Balance sheet, June 30, 2024 and strong cash flow mNOK Cash and cash equivalents Deferred revenue - to support growth strategy and M&A activity Current assets Current liabilities Non-current assets Non-current liabilities Goodwill and intangible assets Equity Operating cash
Slide 25: Key focus to drive continued profitable growth
Key focus to drive continued profitable growth Medium-term financial targets remain unchanged Organic growth o Customer centric business model 15 – 20% o Continue with marketing and sales excellence to build solid new customer pipeline bolt on M&A o More sales automation & self service o Use our fle
Slide 26: We continue on our profitable growth journey
We continue on our profitable Q&A growth journey o Continue to deliver on strategy o Reduced operational risk Make sure to follow us for the latest news! o Consistent strong operational cash flow smartcraft.com LinkedIn Facebook YouTube
Slide 27: BETTER DIGITAL TOOLS
BETTER DIGITAL TOOLS