Fram Skandinavien Ab Class B · OMXSTO:FRAM_B
Fram Skandinavien Ab Class B — fram^ — Investor Day (December 2018)
31 slides from Fram Skandinavien Ab Class B's investor day presentation, December 2018
Slide 1: Capital markets day December 2018
Capital markets day December 2018
Slide 2: We create, develop & digitize companies
WE CREATE, DEVELOP & DIGITIZE COMPANIES
Slide 3: Company overview
Company overview • Founded in 2013 in Ho Chi Minh City, Vietnam • Christopher B. Beselin, Chairman & co-founder of fram^, is the ex-CEO & Co-Founder of Lazada.vn (Lazada Group was sold to Alibaba Group for 3.2 bnUSD) • Max Bergman, CEO & co-founder of fram^, is ex-Kinnevik and founder & CEO of Bima
Slide 4: A digital powerhouse with a distinct venture building platform & premium IT-development services
A digital powerhouse with a distinct venture building platform & premium IT-development services IT DEVELOPMENT – STANDING TEAMS BUSINESS AREAS VENTURE BUILDING SAMPLE CLIENTS • Currently >130 employees FOOTPRINT • Offices in Ho Chi Minh, Da Nang, Ha Noi, Colombo and Stockholm • Group holding compan
Slide 5: Business segments: the fram^ group
Business segments The fram^ group Venture builder Standing teams • Source and evaluate strong business models with strong digital potential • Standing teams are remote teams of IT engineers dedicated to one client for a long term • Invest into ventures in form of subsidiaries • Offer web development
Slide 6: SPD DDD PPPS PPP A PIPPI PD DEEEEEEEEEE EEE EERE EEE EEE EES
SPD DDD PPPS PPP A PIPPI PD DEEEEEEEEEE EEE EERE EEE EEE EES CK KKK KEL SSS Sexe KK Cece KK eee SeKKecedcdc<dec< ESKK KKK KKK KK Ke eek Ke KK eee Kee ce cede Kec ee ee SSSSSSSSSSSSSSSSSSSSSSS 55 8osc 555 5es6 soe ass cesses ec cccetecceraces CLK SKK IK Sede Kee K eK KKK KK eK eR EK KKK RKC ERKKKKEK
Slide 7: Venture building – how does it work?
Venture building – how does it work? What is a Venture builder? Why do we need a Venture builder? ► A venture builder (VB) is turning the traditional founder-venture ► Good deals are few and far in between. To find either a capital (VC) dynamics upside down. strong founding team or a solid business
Slide 8: Track record
Track record Summary Valuation Return on capital • South East Asia’s largest e-commerce • 3.2 bnUSD exit to Alibaba Group (BABA:US) group after 4 years • Activities in Indonesia, Vietnam, Malaysia, • Venture builder (RKET:GR) exits at 20x the Philippines, Thailand & Singapore initial investment 20x
Slide 9: Venture building – the ventures are accelerating above expectations
Venture building – the ventures are accelerating above expectations Fin Tech Ed Tech General Consumer
Slide 10: Venture building – overview of ventures
Venture building – overview of ventures Summary Progress Role model • Car classifieds site • 700,000 visitors per month • Selling new and second-hand • Revenue generated from cars and ancillary products advertising and recently launched online, e.g. insurance and “Inspection & Auction” financing • 1
Slide 11: Venture building – overview of ventures
Venture building – overview of ventures Summary Progress Role model • Online marketplace • First sales generated within 1 month connecting top-ranked tutors of initiating the venture with students in need of • Both offline and online tutoring extra study assistance classes have been conducted >1 bnU
Slide 12: Venture building – featured venture: Carmudi Vietnam
Venture building – featured venture: Carmudi Vietnam New feature – Inspection & Auction 2018 Vietnam Motor Show ● Carmudi successfully pioneered the add-on business model of ● Carmudi participated in the Vietnam Motor Show in October – the “Inspection & Auction” (similar to Swedish Kvarndammen / big
Slide 13: Venture building – featured venture: Nordic Coder
Venture building – featured venture: Nordic Coder Events & courses Strategic Partnership with Grab Vietnam ● Nordic Coder just finished the first course on the programming Nordic Coder has just signed a Strategic Partnership with Grab Vietnam to language ReactJS provide them with skilled IT develope
Slide 14: Venture building – featured venture: SmartBuddy Vietnam
Venture building - featured venture: SmartBuddy Vietnam Singles Day promotion ● Riding on the wave of the world’s largest online shopping day (11.11), SmartBuddy ran “Singles day” promotions for the affordable insurance products and set a new daily sales record. New services & sales channel SmartBud
Slide 15: Net asset value (NAV) of current set of operations: 101 SEK per share
Net asset value (NAV) of current set of operations: 101 SEK per share
Slide 16: SPD DDD PPPS PPP A PIPPI PD DEEEEEEEEEE EEE EERE EEE EEE EES
SPD DDD PPPS PPP A PIPPI PD DEEEEEEEEEE EEE EERE EEE EEE EES CK KKK KEL SSS Sexe KK Cece KK eee SeKKecedcdc<dec< ESKK KKK KKK KK Ke eek Ke KK eee Kee ce cede Kec ee ee SSSSSSSSSSSSSSSSSSSSSSS 55 8osc 555 5es6 soe ass cesses ec cccetecceraces CLK SKK IK Sede Kee K eK KKK KK eK eR EK KKK RKC ERKKKKEK
Slide 17: What is a standing team?
- What is a standing team? The stable core – “Standing teams” of IT engineers
Slide 18: fram^ standing teams of engineers offer some of the most stable IT development revenue sources in Vietnam
fram^ standing teams of engineers offer some of the most stable IT development revenue sources in Vietnam Standard framework for contractual setup Successive Setup phase Test phase Initial term terms (1-2 months) (2 months) (+10 months) (x12 months) Client and talent Client takes part in Ongoing clo
Slide 19: Standing teams – sample clients
Standing teams – sample clients Summary Role of fram^ Scope of services • Global leader in electronics • Partner for e-commerce content • Online marketing • No. 1 smartphone brand in Vietnam management, IT development and • Front & back-end development online marketing • Content management • Perform
Slide 20: Standing teams – sample clients
Standing teams – sample clients Summary Role of fram^ Scope of services • A complex CRM platform for B2B sales • Full service dedicated standing team • Full platform development management • Quality assurance • The only software named as a G2 Crowd High Performer in each of the CRM, Sales Enablement
Slide 21: SPD DDD PPPS PPP A PIPPI PD DEEEEEEEEEE EEE EERE EEE EEE EES
SPD DDD PPPS PPP A PIPPI PD DEEEEEEEEEE EEE EERE EEE EEE EES CK KKK KEL SSS Sexe KK Cece KK eee SeKKecedcdc<dec< ESKK KKK KKK KK Ke eek Ke KK eee Kee ce cede Kec ee ee SSSSSSSSSSSSSSSSSSSSSSS 55 8osc 555 5es6 soe ass cesses ec cccetecceraces CLK SKK IK Sede Kee K eK KKK KK eK eR EK KKK RKC ERKKKKEK
Slide 22: Management & board
- Management & board fram*
Slide 23: Management & senior leadership
Management & senior leadership Max Bergman Anh Duy Vu Stefan Dirolfo Frederick Smith Ha Tran Kim Nguyen CEO & Co-founder COO & Co-founder CFO & Investor Commercial Director Finance Manager Group HR Manager Relations • Former founder & MD • Background in IT • Approx. 15 years of • Responsible for new
Slide 24: Venture founders
Venture founders Beata Klein– Founder & MD Toni Tong – Founder & CEO • Former Executive Trainee at Tele2 Sweden, CEO Office • Former Head of Strategy at Tambour Vietnam • Experience in corporate finance at Danske Bank • Former Management Consultant at McKinsey & Co • Experience in e-commerce at H&M
Slide 25: Board of directors
Board of directors Christopher B. Beselin Stina Andersson Mikael Steinbach Henrik Kvick Chairman & Co-founder Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors • Chairman of Endurance Capital, • Part of group management • Current Head of Operations at
Slide 26: SPD DDD PPPS PPP A PIPPI PD DEEEEEEEEEE EEE EERE EEE EEE EES
SPD DDD PPPS PPP A PIPPI PD DEEEEEEEEEE EEE EERE EEE EEE EES CK KKK KEL SSS Sexe KK Cece KK eee SeKKecedcdc<dec< ESKK KKK KKK KK Ke eek Ke KK eee Kee ce cede Kec ee ee SSSSSSSSSSSSSSSSSSSSSSS 55 8osc 555 5es6 soe ass cesses ec cccetecceraces CLK SKK IK Sede Kee K eK KKK KK eK eR EK KKK RKC ERKKKKEK
Slide 27: Financials in summary
- Financials in summary fram*
Slide 28: Simplified P&L
Simplified P&L ‘000 SEK 2015 2016 2017 Q3 2017 Q3 2018 Sales 2 207 7 968 11 794 2 981 4 689 Organic growth +86% +261% +48% +47% +68.4% EBITDA 85 1 030 912 652 -1 599 Margin 3.9% 12.9% 11.3% 21.9% -34.1% D&A -2 -16 -40 -27 -218 EBIT* 83 1 014 871 625 -1 835 Margin 3.8% 12.7% 7.4% 21.0% -39.1% Chart 1
Slide 29: Divisional split 2018 YTD
Divisional split 2018 YTD ‘000 SEK Standing Teams Venture Builder Group Overhead Jan-Sep Jan-Sep Jan-Sep Sales 11 563 438 0 Other income - - 1 273 Total Costs -9 451 -5 440 -2 108 2 112 -5 002 -2 424 EBIT 18.3% n.a n.a Margin
Slide 30: Net asset value (NAV) of current set of operations - Methodology applied
Net asset value (NAV) of current set of operations - Methodology applied The management of fram^ has to make estimates and judgements when preparing the valuation policies applied to the net asset value of the operations. Fair value of unlisted assets The estimates and judgements when assessing the
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