Atoss Software Se · XETR:AOF
Atoss Software — Berenberg USA Conference 2023
53 slides from Atoss Software's conference presentation, May 2023
Slide 1: Excellence in Workforce Management
Excellence in Workforce Management ATOSS Software AG 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements based on the beliefs of ATOSS Software AG. Such statements reflect current views of ATOSS Software AG with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially from those p
Slide 3: Leading in the field of Workforce Management: Highlights at a glance
ATOSS – Leading in the field of Workforce Management Highlights at a glance TecDAX SDAX >30 years ~15,000 05/2023 High visibility as stock 07/2021 Market experience Customers worldwide from SMB to blue chips* corporation Customers in ATOSS is first mover and innovator in the field of workforce 50+ 6
Slide 4: Market for Workforce Management
Market for Workforce Management OBI | Retail 4
Slide 5: Regulatory environment, resource scarcity, digitalization
Increasingly complex regulatory environment Scarcity of resources and skilled staff Digitalization of labor world A shortage of workers have prompted investment in advanced scheduling and planning functions so existing workers are The application of artificial intelligence (AI) in deployed as effect
Slide 6: Workforce Management Market
Workforce Management Market Market Studies* Growth Workforce Management Market − Ø annual growth rate cloud-based WFM-solutions: 14.29% CAGR (2020 – 2025) − Ø annual growth rate of on premises WFM-solutions: 5.98% CAGR (2020 – 2025) Market segmentation by deployment On-premise Market size ($ million
Slide 7: Business Model
Business Model Universitätsklinikum Frankfurt | Healthcare & Services 7
Slide 8: Workforce Management in a Nutshell
Workforce Management in a Nutshell Efficiency via Highly Flexible Staff Deployment Employee engagement Workforce Qualification Scheduling Management ATOSS helps companies to have ... …the right employee Time & …with the right qualification Attendance …at the right place …at the right time Absence Ma
Slide 9: Highly flexible, demand-optimized workforce scheduling
Highly flexible, demand-optimized workforce scheduling Digital Workforce Management Current situation Goal Fluctuation in demand Demand and cost-optimized synchronization of working time and Little flexibility and long response times order volume OPTIMIZATION POTENTIAL AFTER OPTIMIZATION Staff hours
Slide 10: ATOSS Product Portfolio
ATOSS Product Portfolio As full-range provider, we offer solutions for every requirement Call Center Solution Services Solution Logistics Solution Manufacturing Solution Medical Solution Retail Solution > 10.000 Employees ATOSS > 1.000 Staff Efficiency Suite Employees Complexity of requirements > 50
Slide 11: Financials & KPI's – FY 2022
Financials & KPI’s – FY 2022 STIHL | Manufacturing 11
Slide 12: ATOSS – 17th Record Year in Succession
ATOSS – 17th Record Year in Succession Running like Clockwork Total Revenue in EUR mill. Software in EUR mill. 113.9 +14% 97.1 +17% 78.4 86.1 +16%* 71.4 66.0 +19% +7%* 62.6 56.0 54.6 +8%* 46.5 44.9 49.5 39.4 35.5 39.7 30.2 34.6 22.0 24.4 26.9 29.1 29.3 31.6 33.0 18.8 20.1 21.8 23.9 27.0 12.9 14.6 16
Slide 13: ATOSS Cloud Strategy and Software Revenues
ATOSS Cloud Strategy and Software Revenues Excellent foundation for further success Cloud MRR: Quarterly development in EUR mill. ARR Total (Cloud + Maintenance) in EUR mill. +16% +11% +41% ARR Maintenance +13% +20% ARR Cloud +29% 74.8 +15% 3.4 +11% 3.1 +23% +13% 2.7 +21% 53.1 33.8 2.4 +75% 2.0 41.0
Slide 14: ATOSS Cloud development by products
ATOSS Cloud development by products FY 2022 Cloud ARR1 Cloud KPIs New customer ARR in EUR mill. by product, in % +74% Net Retention Rate2): New Customer ARR 3): 41.0 22% ASES 135% 24% 23.5 75% 11% ATC 110% 35% 74% 67% 17% Crewmeister 92% 40% 18% 9% 8% 2021 2022 Total 127% 27% ASES ATC Crewmeister AS
Slide 15: Financials & KPI's – Q1 2023
Financials & KPI’s – Q1 2023 Landeshauptstadt München | Public & Social Services 15
Slide 16: Top Key Figures Q1 2023
Top Key Figures Q1 2023 Software Revenue in EUR mill. Total Revenue in EUR mill. EBIT in EUR mill. Software EBIT Margin Recurring Revenue +39% +93% CSS Non Recurring Revenue +47% HW & Others 36.2 11.6 25.2 +13% 4.7 +11% +16% +30% 26.0 +17% +21% 17.0 23.0 25.2 -2% 15.4 +17% (70%) +11% +9% 2.0 19.8 6.
Slide 17: Cloud MRR & ARR Development
Cloud MRR & ARR (Cloud + Maintenance) Development Q1 2023 Cloud MRR: Quarterly development in EUR mill. ARR Total (Cloud + Maintenance) in EUR mill. +18% ARR Maintenance +11% +40% +16% ARR Cloud +13% 4.0 83.6 +20% +37% +11% +15% 3.4 +13% 3.1 +22% 2.7 +72% +18% 59.7 35.2 2.4 2.0 43.6 1.5 1.7 30.3 35.
Slide 18: ATOSS Cloud development by products
ATOSS Cloud development by products Q1 2023 Cloud ARR1 Cloud KPIs New customer ARR5 in EUR mill. in % by product, in % ASES ATC Crewmeister ASES ATC Crewmeister Net Retention Rate2 New Customer ARR3 +72% 48.5 ASES 126% 27% 21% 28.2 75% ATC 109% 33% 13% 67% 74% Crew- 94% 43% meister 17% 18% Total 121
Slide 19: Order backlog
Order backlog Growth ambitions strongly supported by order backlog On-premises order backlog1) Cloud order backlog (12months)2) Quarterly development in EUR mill. in EUR mill. Cloud revenues Cloud order backlog +61% +24% 11.8 53.9 10.1 5.4 +73% 9.0 43.3 7.3 7.8 2.3 7.3 6.9 5.1 ARR 4.0 4.4 ARR 48.5 4
Slide 20: Q1 2023 Income Statement & Other Financials
Q1 2023 Income Statement & Other Financials 20
Slide 21: Income Statement
Income Statement Q1 2023 in KEUR Q1 2023 Proportion of total revenues Q1 2022 Proportion of total revenues Change 2023 / 2022 Total revenues 36,223 100% 26,002 100% 39% Software 25,213 70% 17,094 66% 47% Licenses 4,685 13% 2,048 8% 129% Maintenance 8,771 24% 7,724 30% 14% Cloud & Subscription 11,757
Slide 22: Cost ratios
Cost ratios Q1 2023 Totel revenue: EUR 36.2 million Cost of sales I&D S&M G&A as % of total revenue as % of total revenue as % of total revenue as % of total revenue 9,199 KEUR 5,598 KEUR 6,211 KEUR 3,272 KEUR 25,4% 15,5% 17,1% 9,0% -3,9 pp -2,1 pp -3,7 pp -0,6 pp 22 © ATOSS Software AG 2023
Slide 23: Income Statement
Income Statement Q1 2023 23 © ATOSS Software AG 2023
Slide 24: Financial Development Q1 2023
Financial Development Q1 2023 Impressive cash position Cash Flow in KEUR Liquidity in KEUR 78,952 21,913 56,827 Change in 48,671 Cash & cash equivalents KEUR 21,913 26,758 23,505 5,046 5,050 5,085 Financial Investments 2,979 3,173 4,052 4,015 Total return Q1 2023: +158 KEUR 6,060 77 12,500 12,500 -7
Slide 25: Growth Strategy
Growth Strategy WISAG | Service Industry 25
Slide 26: ATOSS Cloud Transformation
ATOSS Cloud Transformation Growth leading the way for increased Recurring Revenue (Model Projectory) Revenue in EUR mill. and growth in % (YOY) ~190 +19% Non Recurring Recurring ~160 +17% ~135 +13% 113.9 +21% 97.1 +14% 86.1 +15% +10% 71.4 +10% 62.6 71% 54.6 44.9 49.5 66% 64% 58% 46% 50% 42% 45% 38%
Slide 27: ATOSS Cloud Transformation
ATOSS Cloud Transformation Growth Leading the way for increased Recurring Revenue (Model Projectory) Software revenue in EUR mill. and growth in % (YOY) ~146 +23% 8% ~118 19% 10% ~97 +19% 12% 25% +18% 78.4 +20% 66.0 16% 33% +18% +14% 56.0 +15% 26% 73% +12% 46.5 40% 39.4 29% 34.6 31% 65% 27.0 30.2 34
Slide 28: Internationalization strategy
Internationalization strategy ATOSS solutions operating worldwide Increased International Revenue Share non-DACH ATOSS Solutions currently in 50+ countries: multilingual solutions, 11 software languages ATOSS Strategy • Expand regional sales & service hubs • Expansion of international partner networ
Slide 29: ATOSS Internationalization
ATOSS Internationalization Supporting overall growth strategy with expansion in non DACH countries Total revenue (Projections, in EUR mill.) Allocation of revenue shares (Projections) Non DACH Non DACH 10% 5% ~ 190 190 m 113.9 m +13-17% ~ 160 95% 90% DACH* DACH ~ 135 2025 2022 113.9 *thereof Austria
Slide 30: ATOSS Full Range Strategy
ATOSS Full Range Strategy Crewmeister continues successful development Highlights Key metrics Outlook 2025 • Positive impact by BAG decision • Av. Customer Acquisition costs (CAC*): 290 EUR • Positive EBIT • New product features developed • Av. Customer Lifetime Value (CLTV**): 1,331 EUR • ~18.500 C
Slide 31: ATOSS – Growth Projections 2023 – 2025
ATOSS – Growth Projections 2023 – 2025 Strong Growth and Margins while building Recurring Revenue Guidance 2023 Projections 2023 - 2025 Total Revenue Total Revenue Growth Increasing Share of Recurring Revenue 135 EUR Mill. CAGR 19% ≥ 70% Software Revenue EBIT Margin from EBIT Margin Growth ≥27% CAGR
Slide 32: Sustainability at ATOSS
Sustainability at ATOSS It‘s our vision to create a working world, in which everyone benefits Christof Leiber CFO, ATOSS 32 © ATOSS Software AG 2023
Slide 33: Sustainability at ATOSS
Sustainability at ATOSS Our sustainability pillars Customer and society • Data protection and data security • Customer satisfaction • Social and cultural activities Employees at ATOSS • Recruitment and retention • Continuous training and learning • Health promotion and recreation • Diversity 33 © AT
Slide 34: Sustainability at ATOSS
Sustainability at ATOSS Our sustainability pillars Integrity and compliance • Prevention of discrimination, corruption, bribery, respect for human rights • Compliance Management System – acting in accordance with all laws, social guidelines and values Environmental protection • Energy & CO2 reductio
Slide 35: Sustainability at ATOSS: Our goals (1/2)
Sustainability at ATOSS Our goals (1/2) Customer and society Employees at ATOSS Customers Employee Experience Goals for 2025: Goals by 2023: • Recurring revenue: >70% • Employee Engagement Index: >80% • Revenue CAGR: 19% • Introduction of new HR-KPI‘s: • Grow Customer Number: 20,000+ • Leadership In
Slide 36: Sustainability at ATOSS: Our goals (2/2)
Sustainability at ATOSS Our goals (2/2) Integrity and Compliance Environmental protection Integrity and Compliance CO2 footprint • Compliance training: 100% success rate Goals by 2023: • Continuing to raise awareness of compliance and • Establishment of an environmental task force security issues •
Slide 37: Employees at ATOSS
Employees at ATOSS Working with Passion & Purpose “The team is the key to „We live diversity and promote sustainable success” equal opportunities and inclusion” • Intensive and structured onboarding • Member of “Charta der Vielfalt” • Detailed career model • Employees from around 40 countries • Work
Slide 38: Additional Attachments
# . oe Additional Attachments _— se } ‘ ATOSS -&
Slide 39: HCM Trends
HCM Trends Time & Attendance Qualification Forecasting Management & Scheduling Compensation Payroll and Benefits Management HR Performance Management Management Self Service Onboarding Management HR Analytics Recruiting Management HCM Feedback Offboarding Match of employees Employee Hybrid Working E
Slide 40: Workforce Management – without ATOSS
Workforce Management – without ATOSS Production Capacity Time Time Forecasting Scheduling Payroll planning planning recording evaluation Working models Absences Wishes Adhoc Plan
Slide 41: Workforce Management – without ATOSS
Workforce Management – without ATOSS Production Capacity Time Time Forecasting Scheduling Payroll planning planning recording evaluation Working models Absences Wishes Adhoc Plan Upskilling needs Recruitment needs Self Services (Desktop/ Mobile) Notifications Compliance Monitoring HR Reporting/ Anal
Slide 42: Data value – with ATOSS
Data value – with ATOSS Employee Experience Efficiency Transparency Flexibility Compliance Time and Data-driven Attendance Scheduling One Platform Interfaces Cloud | On Premises Micro Services 42
Slide 43: Gartner predictions for WFM and HCM cloud adoption
By 2025, 60% of global By 2023, at least 99% of midmarket and large new WFM application enterprises will have sales will leverage cloud- invested in a cloud- based deployment deployed HCM suite for models. administrative HR & talent management. By 2025, 50% of large By 2025, 80% of large enterprises
Slide 44: The ATOSS Share: Dividend Policy
The ATOSS Share Dividend Policy EPS* per 31. December in EUR Dividend* in EUR 2.43 2.44 Special Dividend 2.83 Dividend 2.23 1.00 1.70 2.00 1.81 1.82 1.41 1.67 1.17 1.18 1.40 1.30 1.28 0.96 0.89 1.45 0.72 0.73 0.93 1.83 0.58 0.59 0.38 0.44 0.30 0.36 0.36 0.70 0.36 0.48 2011 2012 2013 2014 2015 2016 2
Slide 45: The ATOSS Share
The ATOSS Share Share price performance* (01/2020 – 04/30/2023) 19 Jan 2021: Preliminary FY 2020 results 31 Jan 2022: 31 Jan 2023: Total rev. growth: +21% Preliminary FY 2021 results Preliminary FY 2022 results Software growth: +20% Total rev. growth: +13% Total rev. growth: +17% (Share price in EUR
Slide 46: ATOSS Stock
ATOSS Stock High Performer in European Software and HCM Stocks since COVID Share price performance* (01/2020 – 04/30/2023) 151% 64% 20% 16% 10% 3% -1% -5% -48% -60% ATOSS Paylocity Nemetschek Workday SDAX SAP Software SimCorp Teamviewer Invision HCM Saas European Software * ATOSS, Nemetschek, Softwa
Slide 47: Financial KPIs
Financial KPIs Financial strength excellent base for further growth Net Income EUR mill. EUR Dividend per share EUR EPS Net income Margin Special Highlights Regular +16% +16% • Strong EPS 19.3 19.4 2.43 2.44 2.00 Performance: EPS 17.7 2.23 continuously increased 13.5 1.70 1.30 11.2 9.3 1.18 1.41 • M
Slide 48: Benchmark for Customer Satisfaction and Stability
Benchmark for Customer Satisfaction and Stability Receivables in EUR mill. Collection period in days* 11.9 10.6 34 8.9 30 31 31 28 7.7 6.3 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Value adjustments in kEUR 353 300 • Low volume of receivables and short collection periods reflect good custome
Slide 49: On Premise vs. Cloud Model
On Premise vs. Cloud Model Revenue/Payment scheme Cloud vs. On Premise Cloud vs. On Premise (accumulated) 120 250 Revenue break even 100 200 80 150 60 120 250 100 200 200 40 180 140 150 160 50 50 50 50 50 120 50 100 20 20 20 20 20 50 0 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4
Slide 50: Cloud Transformation – Technical Approach
Cloud Transformation – Technical Approach C1 Sunset! Manage Risk C2 Zero Downtime! CI/CD Micro/Macro Services C3 Feature Branches! C4 Service Architecture! Containerization DevOps C5 ATOSS World! 50 © ATOSS Software AG 2023
Slide 51: Comprehensive Workforce Management
Comprehensive Workforce Management 6 steps for success Workforce Personnel Capacity Workforce Real-time Time and forecasting Structure planning scheduling monitoring attendance optimization and updates management STRATEGIC STRATEGIC TACTICAL OPERATIONAL OPERATIONAL OPERATIONAL TACTICAL LONG-TERM MED
Slide 52: Effects generated from ATOSS Projects
Effects generated from ATOSS Projects Cross-industry -15% -22% -60% Personnel costs with the Balance-sheet Residual leave same number of staff provisions -70% -82% +5% Planning input Overtime Conversion rate +11% Revenue 52 © ATOSS Software AG 2023
Slide 53: ATOSS Sales by Segment
ATOSS Sales by Segment* Logistics 9% Retail Retail-Fashion other 22% 10% 11% Healthcare & Social Services 15% 90% 29% Retail - Food, DIY, etc. 14% Production Services The five largest customers account for approx. 7 percent of company‘s sales. * FY 2022/revenues 53 © ATOSS Software AG 2023