Slide 1: Q4 update
Q4 update February 13, 2020
Slide 2: Today’s presenters
Today’s presenters Erik Syrén, CEO Magnus Hansson, CFO Lime since 2001 Lime since 2015
Slide 3: The Lime story
The Lime story 28 years of experience of long-term profitable growth 2000 – 2007 2008 – 2013 2014 –2018 2019 – Subsidiary within Bisnode, initial expansion and Transformation of business model to Focus on longterm profitable growth 100% CRM focus product development SaaS and organizational scale-up
Slide 4: Agenda
Agenda 1. Invest- 2. Strategy 3. Deals ments 4. Retention 5. Netsales 6. Profit- ability
Slide 5: Q4 2019 highlights: Investments
Q4 2019 highlights 1. Invest- ments
Slide 6: Netherlands
1 Netherlands • One of the fastest growing CRM markets in Europe • Business culture similar to the Nordics • Competitive landscape similar to the Nordics • Common industries: utility, real estate & wholesale • We can reach the whole country from one office
Slide 7: Janjoo
1 Janjoo Lime Forms Lime Portal
Slide 8: Q4 2019 highlights: Strategy
Q4 2019 highlights 1. Invest- 2. Strategy ments
Slide 9: Established position for further growth
2 Established position for further growth Several organic drivers supported by acquisition opportunities 1 2 3 4 5 6 CRM market Good sales 10-12% CAGR growth in rest of Nordics Structural market Geographical Grow sales from Platform Target selected Ample M&A growth expansion existing expansion verti
Slide 10: Q4 2019 highlights: Deals
Q4 2019 highlights 1. Invest- 2. Strategy 3. Deals ments
Slide 11: Several deals in the Nordics
3 Several deals in the Nordics Good mixture of small, midsize and large enterprises Customer concentration 11,3% 9,9% 8,8% 2,1% 1,6% 1,3% 2017 2018 2019 Top 10 customers % of net sales Top customer % of net sales
Slide 12: Q4 2019 highlights: Retention
Q4 2019 highlights 1. Invest- 2. Strategy 3. Deals ments 4. Retention
Slide 13: Revenue churn
4 Revenue churn Software net revenue churn Comments SEKm • Downgrades: Existing customers reduce numbers of Software net revenue churn of SEK 0.1 million1) users and addons 2,7 • Lost customers: Old customers cancel their agreements 2,1 -0,6 -1,3 • Upgrades: Existing customers acquire new licenses a
Slide 14: Q4 2019 highlights: Net sales
Q4 2019 highlights 1. Invest- 2. Strategy 3. Deals ments 4. Retention 5. Netsales
Slide 15: Increase in annual recurring revenue drives growth
5 Increase in annual recurring revenue drives growth ARR development (SEKm) +19% 181 173 167 160 152 142 138 132 126 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Annual recurring revenue (ARR)
Slide 16: Recurring revenue is growing rapidly
5 Transition from up-front to subscription pricing model since 2015 is nearly complete Recurring revenue is growing rapidly Pricing model transformation over time Revenue guidance LTM net sales by revenue stream, SEKm 325 License, subscription 300 CRM-system mainly as subscription Increased sale
Slide 17: Net sales development
6 5 Revenue SEKm Total Traction across geographies Net sales development 19% 19% growth SEKm Organic 14% 16% Y-o-Y growth (%) growth 50% 289,7 244,3 32% 13% 81,8 18% 68,9 Q4 2018 Q4 2019 2018 2019 55,1 36,8 234,6 SEKm 81,8 207,5 Sweden Rest of Nordics 69,9 70,0 68,9 68,0 Split by geography 16,1 Grow
Slide 18: Q4 2019 highlights: Profitability
Q4 2019 highlights 1. Invest- 2. Strategy 3. Deals ments 4. Retention 5. Netsales 6. Profit- ability
Slide 19: Profit
6 Profit Reaching an adjusted EBITA margin of 24% in Q4 2019 EBITA development1) Rolling LTM EBITA and margin development1) SEKm SEKm +23% 66,8 26,2% 67 54,3 62 23,1% 23,5% 59 23,1% 22,1% 22,4% 22,0% 22,2%22,2% 57 22,2%22,6% 22,1%22,2%22,1% 21,2% 21,5% 21,4% 54 51 SEKm 48 47 45 45 24,3% 40 22,5% 23,
Slide 20: OPEX development
6 OPEX development Large majority of operating expenses related to growth in FTEs Personnel expenses development Other operating expenses development (adj.)1) SEKm SEKm +14% SEKm +2% 52,9 54,0 169,9 +11% 149,0 +5% 61,0% 61,0% 58,7% 56,9% 14,8 15,6 42,0 46,5 21,7% 21,5% 19,0% 18,6% Q4 2018 Q4 2019 20
Slide 21: Financial targets
Financial targets FY 2019 Sales growth “Lime’s objective in the medium term is to achieve an annual organic net 16 % sales growth above 15%” “Lime’s objective in the medium term is to achieve an annual EBITA EBITA margin 23.1 % margin above 23%” “The objective in respect of the capital structure is
Slide 22: Q4 2019 summary
Q4 2019 summary Recruitments, expansion to Netherlands and Investments acqusition of additional 35 % of Janjoo Net sales MSEK 82, +13 MSEK Growth (19 % total growth & 53 % outside Sweden) Adjusted EBITA margin 24 % Profitability (23 % same period last year) 1.50 SEK Dividend - proposal (51 % of net
Slide 23: Thank you for listening!
Thank you for listening! investors.lime-technologies.com