Arribatec Group Asa · OSL:ARR
Arribatec Group Asa — Q3 2021 Earnings Presentation
29 slides from Arribatec Group Asa's earnings presentation, Nov 11, 2021
Slide 1: Q3 – 2021 presentation
Arribatec. \Q3- 2021 presentation o\
Slide 2: Agenda
1 Introduction 2 Q3 – Financial performance Agenda 3 Organization & Integration 4 Appendixes 2
Slide 3: Highlights Q3 and subsequent events
Highlights Q3 and subsequent events • Revenue at NOK 94.4m - solid growth of 253% y/y – organic growth of 32% • Recognized recurring revenue of NOK 40.0m, NOK 34.4m higher than Q3-2020 • Growth of 614% compared to last year and 6% higher than Q2-2021 • Strong growth despite delay in recognition of r
Slide 4: Snapshot Financials Q3-21 vs Q3-20
Snapshot Financials Q3-21 vs Q3-20 Revenue Adj. EBITDA Recurring Revenue +253% +614% NOK 94.4m vs 26.7m NOK -13.9m vs 0.7m NOK 40.0m vs 5.6m 32% Organic growth in “Old Arribatec” 4
Slide 5: Revenue share & Growth - Q3-21 vs Q3-20
Revenue share & Growth - Q3-21 vs Q3-20 By geography: Share & Growth Share & Growth Share & Growth 62m / 340% 24m / 180% 8m / 99% 5
Slide 6: Q3 Performance
Q3 Performance 60 By Region By Service Old vs. Acquired 94.4 100 50 100 5,2 100 Revenue 90 8,2 90 90 80 80 80 +253% y/y 40 23,6 70 70 40,0 70 58,9 +32% Organic 60 60 60 30 50 50 50 40 40 40 26.7 20 62,5 30 30 1,1 30 4,2 5,6 49,2 20 8,4 20 20 35,4 10 26,7 10 10 20,1 10 14,2 0 0 0 Q3-20 Q3-21 Q3-20 Q3
Slide 7: Q3 Year-to-Date Performance
Q3 Year-to-Date Performance 60 By Region By Service Old vs. Acquired 350 50 350 350 Revenue 300 298 300 300 19,7 40 23,7 +222% y/y 250 250 250 73,6 108,7 +27% Organic 200 200 200 179,7 30 150 150 150 20 93 100 200,6 100 4,3 100 11,4 15,2 169,7 29,2 118,3 50 10 50 50 93,2 73,8 52,7 0 0 0 Q3 ytd-20 Q3
Slide 8: Balance sheet development
Balance sheet development Equity & Liabilities Assets 60500 500 Current Goodwill Non-current 103 Intangibles 50 Equity Other non-current 30/9-2021 Trade receivables 400 400 188 Other current assets Total assets NOK 501m 78 Cash 40 69 Total equity NOK 329m up 12m compared to end of 2020 17 300 300 31
Slide 9: Cash flow
Cash flow 60 Net change in Account Payables & Receivables 50 had a negative impact of NOK 4.7m Investment of 0.8 m 40 pertains to capitalized software development cost 30 Financing CF represent mainly lease instalments 20 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 9
Slide 10: Equity Development
Equity Development 60 Total equity at the end of Q3 50 was NOK 329m, a reduction of NOK 20m compared to end of Q2. 40 Equity ratio of 66% at the end 30 of the reporting period 20 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 10
Slide 11: Structure & Performance
Structure & Performance Organizational structure and performance 11
Slide 12: The Arribatec core
The Arribatec core 400+ Employees 28 Offices worldwide 2020 2021 1000+ Enterprise clients Transformed into five main Business Areas 12
Slide 13: Our main business areas
Our main business areas Business Services Marine Cloud Hospitality EA & BPM 13 13
Slide 14: Our business proposition
Our business proposition ERP Cloud Delivered as SolaaS …at a fixed Hospitality monthly fee solution as a service BI & Analytics with no up-front investment Software Development EA & BPM 14 Marine
Slide 15: What we deliver
What we deliver Business Cloud EA-BPM Marine Hospitality Services Services/Solutions Services/Solutions Services/Solutions Services/Solutions Services/Solutions SolaaS/SaaS Deployment of SolaaS/SaaS SolaaS/SaaS SolaaS/SaaS SolaaS/SaaS Enterprise Architecture ERP Implementation System Implementation
Slide 16: Old Arribatec focusing on ERP, BI & Analytics, DevOps, Integrations
Old Arribatec focusing on ERP, BI & Analytics, DevOps, Integrations, research management, SolaaS etc • Serving customers globally and counting for 47% of total rev. • Hit in July and August due to holiday period in Nordics and Europe • Strong results in September – on normal activity level • 13 new
Slide 17: Enterprise Architecture & Business Process Management
Enterprise Architecture & Business Process Management • Strong growth and traction in the market • Many new large strategic customers added • Increased the organization with 50% over the last few months • Negative result in July, but positive in August and historical high in September • Moved into n
Slide 18: Cloud Solutions – hybrid, Azure, Splunk, GDPR
Cloud Solutions – hybrid, Azure, Splunk, GDPR • Majority of revenue is recurring revenue The sky is not the limit! • Strong performance and strong organic growth • Delivering profit every month • ISO certification in process – to be completed Q1-2022 • Centralized internal IT on own infrastructure •
Slide 19: Software solutions to the hospitality industry
Software solutions to the hospitality industry New ISO requirements expected for the industry the coming • Still investing in products and market penetration months! Arribatec have solutions ready to • New contracts signed with a total value of NOK +3 deliver on these new requirements! million • Str
Slide 20: Software solutions to the maritime sector - InfoShip
Software solutions to the maritime sector - InfoShip Asset Management and Performance Large potential but need to restructure to • Continued investment in product and market turn positive! • Challenges to restructure due to Italian COVID-legislations • Potential pipeline increased by € 9 million sin
Slide 21: Corporate
Corporate • Increased investments in Corporate Functions to build a platform appropriate to support future growth • Internal ERP platform to support all 5 BAs globally is Group Management under implementation and roll-out Group Finance • A new Executive Management Team in place Corporate Group HR •
Slide 22: Summing up Q3
Summing up Q3 • Q3 - Continued solid growth in revenue 253% y/y – 32% organic • Q3 – 614% y/y growth in Recognized Recurring Revenue • Q3 is - EBITDA of NOK -13.3 • Losses due to vacation periods • Strong focus on growth, integration and organizational alignment • Q3 - Terminated Grupo Hodei acquisi
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Slide 24: Appendix
Appendix Financial Figures 24
Slide 25: Profit & Loss
Profit & Loss For the quarter end Year to date 30 Sep 30 Sep 30 Sep 30 Sep Full year NOK thousand. Note 2021 2020 2021 2020 2020 Revenue 3 94.361 26728 297 961 93 210 154.024 Materials, software and services (23 102) (2.447) (67.822) (8.219) (17.609) Gross profit 71.260 24 281 230 139 84 991 136 415
Slide 26: Balance Sheet
26 Balance Sheet Year to date Year to date 30 Sep 31 Dec 30Sep 31 Dec NOK thousand Note. 2021 2020 NOK thousand Note 2021 2020 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Property, Plant and equipment 616 3258 Paid in capital Right-of-use assets 6 20832 20768 Issued capital 9 163778 4172
Slide 27: Cash flow
27 Cash flow For the quarter end Year to date 30 Sep 30Sep Full year NOK thousand, Note 2020 2020 2020 Operating activities Profit/(Loss) before tax (1621) 3084 (55 620) ‘Taxes paid (598) 598 (1196) Adjustments for: Calculated cost from reverse takeover o ° 56822 - Finance income and expense 4 610 1
Slide 28: Equity
28 Equity Equity related to the shareholders of the parent company Restricted Share Treasury Other paid Exchange Retained earnings and Total NOK thousand capital___ shares _in capital_differences __profit for the year Equity Balance on 1 January 2020 2589 (312) 16 286 (2) 3291 21802 Result of the pe
Slide 29: Q3 Reporting Arribatec Group ASA
Q3 Reporting Arribatec Group ASA Per Ronny Stav – Group CEO Geir Johansen – Group CFO Oslo 11 November 2021 29