Trifork Group Ag · OMXCOP:TRIFOR
Trifork — Q4 2024 Earnings Presentation
41 slides from Trifork's earnings presentation, Feb 28, 2025
Slide 1: Transformation in a changed business environment
28 FEBRUARY 2025 2024 Q4 Investor Presentation Transformation in a changed business environment
Slide 2: Disclaimer: Important Information
DISCLAIMER IMPORTANT INFORMATION This presentation contains forward-looking statements including, but not limited to, statements and expectations concerning expected or projected earnings, strategies, trends and developments. Forward-looking statements are statements (other than statements of histor
Slide 3: Presenters
PRESENTERS CEO CFO Jørn Larsen Kristian Wulf-Andersen CEO since 1996 CFO since 2007 Year of birth 1966 Year of birth 1971 Nationality Danish Nationality Danish Educational background Mechanical engineering degree - Civil engineering Educational background Bachelor in Economics - Aarhus Business Scho
Slide 4: A Brief Overview
A BRIEF OVERVIEW Trifork Group Trifork Trifork Labs Profitable organic growth paired with Tech innovators with synergies to acquisitions Trifork segment Inspire Build Run Private Public Companies Book value 3.6% 72.5% 23.8% 61.7% 38.3% 24 83.2 EURm REVENUE SPLIT REVENUE SPLIT Q4 2024 Q4 2024 Fully c
Slide 5: Expecting rebounding earnings in 2025 driven by revenue growth and cost savings
FINANCIAL DEVELOPMENT IN TRIFORK SEGMENT Expecting rebounding earnings in 2025 driven by revenue growth and cost savings EURm 215-225 Revenue from acquisitions 208 206 Adjusted EBITDA, Trifork Segment 1 32-37 Organic revenue 35 185 2025 Guidance 2025 Guidance 32 159 29 27 115 20 106 87 13 11 2007 20
Slide 6: Update to mid-term revenue targets due to market situation and slow 2024
2025 GUIDANCE AND MID-TERM TARGETS Update to mid-term revenue targets due to market situation and slow 2024 Trifork Group Trifork Segment Trifork Group Trifork Group revenue adj. EBITDA EBIT NIBD/adj. EBITDA EURm 215-225 EURm 32-37 EURm 14.5-19.5 No guidance Guidance 2025 Q4 2024: 1.9x 4.4% to 9.3%
Slide 7: Growth and margins improved sequentially in Q4
FINANCIAL HIGHLIGHTS IN Q4 Growth and margins improved sequentially in Q4 REVENUE GROWTH KEY FINANCIALS KEY STATISTICS Inorganic growth +2.9% ▪︎ 73 business units EURm 56.0 -1.9% -0.9% Q4 2024 organic ▪︎ 1,229 headcount Q4 2024 revenue revenue growth ▪︎ 55 nationalities EURm 9.0 16.1% ▪︎ 24.4% women
Slide 8: Trifork Segment - Performance Update Q4: Inspire
TRIFORK SEGMENT - PERFORMANCE UPDATE Q4 3.6% OF 2024 REVENUE Inspire Conferences Innovation & Operate & Protect Design Workshop ▪︎ As usual, a quarter with several conferences and growing attendance. In total, we had 5,900 attendees ▪︎ After EURm 0.8 less negative EBITDA in Q1-Q3 compared to previou
Slide 9: Trifork Segment - Performance Update Q4: Build
TRIFORK SEGMENT - PERFORMANCE UPDATE Q4 Build Conferences Innovation & Operate & Protect Design Workshop ▪︎ Q4 and FY 2024 revenue flat vs. Q4 and FY 2023 ▪︎ Sequential improvement in adj. EBITDA margin from Q2 (13.0%) and Q3 (11.3%) into Q4 (13.2%) ▪︎ Cost savings starting to impact, expected to se
Slide 10: Trifork Segment - Performance Update Q4: Run
TRIFORK SEGMENT - PERFORMANCE UPDATE Q4 Run Conferences 23.8% OF 2024 REVENUE Innovation & Operate & Protect Design Workshop ▪︎ Revenue increased by 4.3% in Q4 ▪︎ Strong adj. EBITDA margin of 31.0% ▪︎ Expected more growth from Run in the second half of the year, partly due to large cloud operations
Slide 11: Diversified customer base with high degree of loyalty
TRIFORK SEGMENT Diversified customer base with high degree of loyalty Risk exposure SHARE OF GROUP REVENUE ▪︎ The customer base is well diversified, and diversifies further 50% as revenue grows 50% 48.7% 48.4% 45% ▪︎ The decline in customer concentration accelerated in 2024 41.6% as a result of incr
Slide 12: Main events in Q4
TRIFORK GROUP Main events in Q4 Key news from Trifork Segment Key news from Trifork Labs ▪︎ Multi-year partnership with Swiss Post to ▪︎ In December, we announced a partial exit of XCI, the advance digital transformation of first significant exit transaction since our IPO healthcare infrastructure i
Slide 13: Main events in Q4 - Trifork Segment
TRIFORK SEGMENT Main events in Q4 Organization Partnerships and trade shows ▪︎ 1,179 FTEs on average (Q4 24: 1,104) ▪︎ GOTO Copenhagen attracted hundreds of global thought and 1,229 employees in total leaders and senior IT managers from Nordic enterprises (Q4 24: 1,210) ▪︎ We hosted sold out AI enab
Slide 14: Bridging frontline workers and critical SAP processes
CASE STORY "The most impressive feature of the FastWork app – branded internally as My-Work by Energy Transfer – is its intuitive design. You can pick it up and immediately understand how to navigate and use it. This mobile tool seamlessly extends our SAP Bridging frontline workers and maintenance p
Slide 15: We met most of the strategic initiatives for 2024
TRIFORK SEGMENT We met most of the strategic initiatives for 2024 Priorities Action points Progress in Q4 Maintain high level of - Open US and Swiss markets further, potentially with - Expanded US team further with high growth rates as result 1 business development acquisitions - Swiss Post contract
Slide 16: Strategic priorities in 2025
TRIFORK SEGMENT Strategic priorities in 2025 Develop and sell more products and platforms (Run) as part of Build solutions that can be repeated Increase revenue per customer by cross-selling and up-selling to senior management with focus on business value, not hours Strengthen business development p
Slide 17: Building competitive edge before widespread adoption
EXAMPLES OF TRIFORK’S CAPABILITIES VS CUSTOMERS AND COMPETITORS Building competitive edge before widespread adoption ENTERPRISE MOBILITY OBSERVABILITY SOFTWARE AS MEDICAL DEVICE HIGHER COMPETITION DIGITAL TWIN VISION AI TRIFORK’S COMPETITIVE EDGE GEN AI LOWER COMPETITION SPATIAL COMPUTING QUANTUM CO
Slide 18: We will continue our acquisition strategy
INORGANIC GROWTH We will continue our acquisition strategy Spantree LLC Denmark >50% (Custom software) of revenue again due to M&A Sapere Group ApS Delta Software A/S Nine A/S (SAP development) (Public admin) (Fintech) Took over YOW! Marstrand Innovation A/S Interprise Consulting A/S Orange11 B.V. O
Slide 19: Book value continues to increase
TRIFORK LABS Book value continues to increase Top 5 ALPHABETIC ORDER Position 6 – 10 ALPHABETIC ORDER 7.3% POS. 11-24 AxonIQ Arkyn Studios Software development framework Field and factory SaaS on top of SAP 20.7% Bluespace Ventures POS. 6–10 C4 Media The future of Swiss digital health Software media
Slide 20: Continued strong financial performance in Labs Top 10
TRIFORK LABS Continued strong financial performance in Labs Top 10 # EURm EURm REVENUE EBITDA EMPLOYEES Growth Margin Growth +50% +100% 99.3 18.1% 100 100 20 20 550 99.3 18.0 507 90 90 18 18 500 457 18 507 80 80 16 16 450 457 72.2 14 14 400 70 72.2 70 13.6% 12 12 350 337 60 60 9.8 49.5 10 10 337 9.9
Slide 21: First annual report according to CSRD
INNOVATING FOR A BETTER WORLD First annual report according to CSRD 21
Slide 22: Environment
INNOVATING FOR A BETTER WORLD Environment In 2024, we focused on developing KEY INITIATIVES TARGETS our science-based emission targets, and advancing the transition to green - Reducing resource usage in our offices by We are evaluating our GHG targets, pending electricity. implementing smart devices
Slide 23: Social
INNOVATING FOR A BETTER WORLD Social In 2024, Trifork continued to focus on KEY INITIATIVES TARGETS fostering an inspiring workplace and providing development opportunities - Ensuring a healthy and safe working - Minimum 30% of underrepresented gender for our employees. Additionally, we environment
Slide 24: Governance
INNOVATING FOR A BETTER WORLD Governance In 2024, we continuously worked to KEY INITIATIVES TARGETS integrate sustainability and integrity into processes and decision-making - Promote and enable responsible business - 100% of suppliers are evaluated based on across our organization. conduct sustaina
Slide 25: Small growth returned in Q4 leading to ATH revenue
FINANCIAL REVIEW Small growth returned in Q4 leading to ATH revenue Inspire revenue Build revenue Run revenue Total y/y revenue growth 38% 55% 41% 21% 16% 15% 18% 18% 9% 20% 11% 10% 1% -5% -2% 2% 60,000 EURm 3.7 50,000 40,000 EURm 38.8 EURk 30,000 20,000 10,000 EURm 13.7 Q2/2020 Q4/2020 Q2/2021 Q4/2
Slide 26: Trifork Group / Trifork Segment revenue
FINANCIAL REVIEW Trifork Group / Trifork Segment revenue Q4 2024 REVENUE +2.9% ▪︎ Revenue of EURm 56.0 equal to 1.8% increase -0.9% Inorganic growth ▪︎ Growth impacted by: ▪︎ Run returned to positive growth in Q4 ▪︎ Stronger momentum in Danish private sector with 10.5% growth whereas Danish public s
Slide 27: Trifork Segment - Performance
FINANCIAL REVIEW Trifork Segment - Performance -23.2% Q4 2024 ADJUSTED EBITDA ▪︎ Adj. EBITDA Growth 16.9% ▪︎ EURm 9.0, equal to margin of 16.1% (Q4 23: 21.4%) Margin ▪︎ Decline of 23.4% explained by: 13.1% ▪︎ Operational leverage from low revenue growth -23.4% ▪︎ Lower Build margins from lower utili
Slide 28: Trifork Segment - Performance
FINANCIAL REVIEW Trifork Segment - Performance REVENUE BY SUB-SEGMENTS (EURM) ADJ. EBITDA AND MARGINS BY SUB-SEGMENT IN 12M 2024 Inspire Build Run -32.9% 13.4% 24.5% 13.1% Other 28
Slide 29: Cost savings programme progressing well
TRIFORK SEGMENT - ADJUSTED EBITDA Cost savings programme progressing well Adjusted EBITDA, Trifork Segment ▪︎ In Q3 we announced the cost savings program with the 2025 Guidance 32-37 ambition to reduce overall annual cost by around EURm 10 35 with full positive EBITDA effect in 2025 32 - 10% tempora
Slide 30: Trifork Group - Performance
FINANCIAL REVIEW Trifork Group - Performance Q4 2024 EBIT ▪︎ EBIT Growth ▪︎ 6.7% margin (Q4 2023: 13.5%) impacted negatively by -58.4% Margin same factors as adj. EBITDA 9.5% ▪︎ Slightly increased depreciations/amortizations from Chapter 5 and Spantree acquisitions, new office leases and from previo
Slide 31: Trifork Segment - Inspire
FINANCIAL REVIEW Trifork Segment - Inspire Inspire revenue Inspire adj. EBITDA 4,000 3,000 EURk 2,000 1,000 0 -1,000 Q2/2020 Q4/2020 Q2/2021 Q4/2021 Q2/2022 Q4/2022 Q2/2023 Q4/2023 Q2/2024 Q4/2024 31
Slide 32: Trifork Segment - Inspire
FINANCIAL REVIEW Trifork Segment - Inspire Q4 2024 REVENUE ADJUSTED EBITDA +18.1% ▪︎ Revenue EURm 3.7 in Q4 (+30.1%) ▪︎ Well attended conferences in Q4, which is typically a busy Inspire quarter ▪︎ Adj. EBITDA EURm -0.8 (Q4 2023: EURm -0.3) ▪︎ The expected breakeven result in Q4 was not +30.1% achie
Slide 33: Trifork Segment - Build
FINANCIAL REVIEW Trifork Segment - Build Build revenue (left) Build adj. EBITDA (right) 40,000 9000 35,000 8000 7000 30,000 6000 EURk 25,000 5000 20,000 4000 15,000 3000 10,000 2000 5,000 1000 0 0 Q2/2020 Q4/2020 Q2/2021 Q4/2021 Q2/2022 Q4/2022 Q2/2023 Q4/2023 Q2/2024 Q4/2024 33
Slide 34: Trifork Segment - Build
FINANCIAL REVIEW Trifork Segment - Build Q4 2024 REVENUE ADJUSTED EBITDA ▪︎ EURm 38.8 revenue (+0.2%) +2.9% Inorganic growth Margin ▪︎ Continued soft market environment in -0.2% Denmark, but still growth both in private -28.9% (10.5%) and Public market (0.9%) ▪︎ UK continue to be weak and decline in
Slide 35: Trifork Segment - Run
FINANCIAL REVIEW Trifork Segment - Run Q4 2024 REVENUE ADJUSTED EBITDA ▪︎ Revenue of EURm 13.7 Margin ▪︎ 4.3% organic growth -4.3% ▪︎ 6.8% growth on sales of own licenses -3.5% (IP) and support 24.3% 24.5% ▪︎ Adj. EBITDA margin of 31.0% (Q4 2023: 31.2%) +3.8% ▪︎ Also including positive effect from +
Slide 36: Trifork Segment - Run
FINANCIAL REVIEW Trifork Segment - Run Run revenue (left) Run adj. EBITDA (right) 16,000 5000 14,000 4000 12,000 EURk 10,000 3000 8,000 2000 6,000 4,000 1000 2,000 0 0 Q2/2020 Q4/2020 Q2/2021 Q4/2021 Q2/2022 Q4/2022 Q2/2023 Q4/2023 Q2/2024 Q4/2024 36
Slide 37: Trifork Segment - Run
FINANCIAL REVIEW Trifork Segment - Run Hosting and security Licenses and support Third-party licenses Hardware Adj. EBITDA margin 15.7% 20.6% 22.7% 28.5% 16.4% 23.5% 22.6% 28.3% 12.1% 16.2% 19.0% 20.1% 21.1% 21.7% 23.2% 31.2% 13.1% 19.2% 33.5% 31.0% 16,000 12,000 EURk 8,000 4,000 Q2/2020 Q4/2020 Q2/
Slide 38: Labs Segment - Performance & Position
FINANCIAL REVIEW Labs Segment - Performance & Position EBT (EURM) INVESTMENTS (EURM) Accumulated net exit proceeds and dividends Accumulated unrealized gains Invested unrealized gains from deconsolidation of Group companies Invested cash in current portfolio 39.2 40 35 30 25 20 13.3 EURm 77.7 15 boo
Slide 39: Why Labs is financially important
FINANCIAL REVIEW Why Labs is financially important FY 2024 ▪︎ Group net income ▪︎ Basic EPS ▪︎ Contribution from Labs EBT of EURm 13.3 helped offset ▪︎ Unchanged number of shares but acquisition of NCIs in the reduced earnings from Segment in 2024 Erlang Solutions January 2024 boosted EPS. Trifork n
Slide 40: Trifork Group - Cash Flow & Financial Position
FINANCIAL REVIEW Trifork Group - Cash Flow & Financial Position Q4 2024 NET INTEREST-BEARING DEBT ▪︎ Operating cash flow of EURm 8.0 (Q4/23: 6.6) Leverage ratio (NIBD/adj. EBITDA) -0.6x ▪︎ Investing activities of EURm -0.6 (Q4/23: -14.6) ▪︎ Financing activities of EURm -7.5 (Q4/23: 7.3) -0.1x ▪︎ Net
Slide 41: Q&A
Q&A Long-term external growth drivers Software innovation specialists To ask a question: Three decades of resilient growth and margins 1. Raise your hand by clicking the ‘Raise Hand’ button 2. Your name will be announced Full-circle and low risk business model 3. Make sure that you are unmuted 4. Yo