Slide 1: Q1 update
Q1 update April 28, 2020
Slide 2: Today’s presenters
Today’s presenters Erik Syrén, CEO Magnus Hansson, CFO Lime since 2001 Lime since 2015
Slide 3: This is Lime
This is Lime Nordic SaaS CRM expert with solid growth opportunities Geographical footprint Key success factors • Long history of profitable growth: 2000-2018 CAGR of 18 % in net Helsinki Gavle sales & CAGR of 25 % in adjusted EBITA. Stockholm Oslo • SaaS as a business model: Approx. 60 % of net sale
Slide 4: Agenda
Agenda 3. Profit- 1. Deals 2. Net sales ability 4. Covid-19 5. Strategy 6. Summary
Slide 5: 1. Deals
Agenda 1. Deals
Slide 6: Several deals in the Nordics
1 Several deals in the Nordics Good mixture of small, midsize and large enterprises Customer concentration 9,9% 8,8% 8,2% 2,1% 1,3% 1,1% 2018 2019 LTM 2020-03 Top 10 customers % of net sales Top customer % of net sales
Slide 7: 2. Net sales
Agenda 1. Deals 2. Net sales
Slide 8: Increase in annual recurring revenue drives growth
2 Increase in annual recurring revenue drives growth ARR development (SEKm) +19% 190 181 173 167 160 152 142 138 132 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Annual recurring revenue (ARR)
Slide 9: Recurring revenue is growing rapidly
2 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 10: Net sales development
62 Revenue SEKm Total Traction across geographies Net sales development 22% 19% growth SEKm Organic 15% 15% Y-o-Y growth (%) growth 47% 304,8 34% 255,7 14% 18% 85,0 69,9 59,0 Q1 2011 Q1 2020 LTM Q1 2019 LTM Q1 2020 40,1 245,7 SEKm 81,8 85,0 215,5 Sweden Rest of Nordics 69,9 70,0 16,0 68,9 68,0 Split
Slide 11: 3. Profitability
Agenda 3. Profit- 1. Deals 2. Net sales ability
Slide 12: Profit
3 Profit Reaching an adjusted EBITA margin of 28 % in Q1 2020 EBITA development1) Rolling LTM EBITA and margin development1) SEKm SEKm +35% 76,5 25,1% 23,5% 23,1% 22,4% 22,6% 76 22,0% 22,2% 22,2% 22,1% 22,2% 22,1% 22,2% 21,2% 21,5% 21,4% 67 56,5 62 59 57 SEKm 54 27,6% 51 25,1% 47 48 45 45 22,1% 40 1
Slide 13: OPEX development
3 OPEX development Large majority of operating expenses related to growth in FTEs Personnel expenses development Other operating expenses development (adj.)1) SEKm SEKm +13% SEKm 0% 54,5 54,3 +11% 174,8 154,5 +2% 61,5% 60,4% 56,3% 57,3% 13,4 13,7 43,0 47,9 21,3% 19,2% 17,8% 16,1% Q1 2019 Q1 2020 LTM
Slide 14: 4. Covid-19
Agenda 3. Profit- 1. Deals 2. Net sales ability 4. Covid-19
Slide 15: Impact
4 Impact • Existing customers postpone or cancel their projects • Declined chargeability • Customers postpone their payments • Increased customer losses • Increased customer churn • Declined new sales
Slide 16: Actions have been made to reduce impact during a recession
4 Actions have been made to reduce impact during a recession High share of recurring revenue Low customer concentration Four different verticals 325 • Utility: Not very affected by a downturn 300 275 • Real estate: Not very affected by a 250 225 Recurring 9,9% downturn Revenue 200 8,8% 175 ~57% 8,2%
Slide 17: 5. Strategy
Agenda 3. Profit- 1. Deals 2. Net sales ability 4. Covid-19 5. Strategy
Slide 18: 5
5
Slide 19: Business development, Leadership, Energy
5 Business development Customer health checks Train consultants in sales Service level Stand ups and cool downs Communication Keeping productivity Leadership Secured bank facilities Newsletter campaign Planing new releases Lime Academy Business Continuity Plan Stress test cash flow Webinars Energy B
Slide 20: Established position for further growth
5 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 vert
Slide 21: 6. Summary
Agenda 3. Profit- 1. Deals 2. Net sales ability 4. Covid-19 5. Strategy 6. Summary
Slide 22: Financial targets
6 Financial targets LTM Q1 2020 Sales growth “Lime’s objective in the medium term is to achieve an annual organic net 15 % sales growth above 15%” “Lime’s objective in the medium term is to achieve an annual EBITA EBITA margin 25.1 % margin above 23%” “The objective in respect of the capital structu
Slide 23: Q1 2020 summary
6 Q1 2020 summary Net sales MSEK 85 +15 MSEK Growth (22 % total growth) Adjusted EBITA margin 28 % Profitability (19 % same period last year) Customers postpone their projects, churn Covid-19 impact increases & customers postpone payments We keep our strategy: Investments in sales, Strategy marketin
Slide 24: Thank you for listening!
Thank you for listening! investors.lime-technologies.com