Slide 1: Admicom Oyj H1 2024 financial report
Admicom Oyj Building sustainable future together H1 2024 financial report – 9 July 2024 Petri Kairinen, CEO Satu Helamo, CFO
Slide 2: H1 2024 financial report: growth continued in Q2
H1 2024 financial report: ”Growth continued in Q2 despite lower annual adjustment fees and EBITDA improved to 38.4%” § Strategy execution during Q2- Petri Kairinen, CEO § Q2 financials - Satu Helamo, CFO § Q&A
Slide 3: Strategic phasing: Strengthen and then accelerate
Strategic phasing: Strengthen and then accelerate 2023-2024 2025 - Focus for Growth Accelerated Growth Ambition: Strengthening the platform: > 15 % organic ARR growth with Cross-sell, technical integrations and increasing EBITDA increased R&D for comprehensive platform, cultural integration and oper
Slide 4: Our solutions for the construction life cycle
Our solutions for the construction life cycle Comprehensive solution for Fieldwork management and building managing operations and maintenance operations financials Finance, personnel Construction and banking projects For gathering and producing information Quantity and cost estimations on the site
Slide 5: Lämpövelho Oy, MD Miska Rissanen
Lämpövelho Oy, MD Miska Rissanen: HVAC-company operating from Kuopio, Finland, 6 MEUR revenue and 35 employees. Admicom solutions: Ultima & Tempo "I've saved about 30% of my own time, which enables us to grow as I've been able to invest in sales and growing our operations – and this hasn’t been just
Slide 6: Highlights from Q2
Highlights from Q2 § ARR growth 6.7 % y-to-y: Reasonable new sales, given the market, especially in project management solutions, deal sizes generally smaller, but with more cross-sell § Amount of contract terminations excl. insolvencies is showing a positive trend. Insolvencies still form a quarter
Slide 7: The construction sector in Finland is weak – but are volumes returning to growth track?
The construction sector in Finland is weak – but are volumes returning to growth track? § New residential build construction starts for 2024 Construction sector revenue trends * estimated to be even lower level than in 2023 2 § Other construction sectors faring better – and our 0,4 0 customer compan
Slide 8: Setting up for Accelerated Growth during 2024
Setting up for Accelerated Growth during 2024 ü Modern, customized dashboard and SSO for the Suite ü Joint go-to-market approach and increased cross-sell Short Term ü First AI&data implementations into products and Priorities increased internal automation § Opening an international market via M&A §
Slide 9: Agenda
Agenda § Strategy execution during Q2- Petri Kairinen § Q2 financials - Satu Helamo § Q&A
Slide 10: Key figures of Q2 2024
Key figures of Q2 2024 ARR growth Recurring revenue Revenue growth growth 6.7% 1.7% 0.7% (9.3%) (15.8%1)) (14.7%1)) Adjusted EBITDA Customer churn YTD 6m Recurring revenue of total revenue 38.4% 3.6% 94% (38.1%) (94%) 1) Impact of inorganic Kotopro acquisition in comparative period growth: RR growth
Slide 11: Key financials Q2
Key financials Q2 ADMICOM GROUP (1,000 EUR) Q2 2024 Q2 2023 VAR y/y Q1 2024 VAR q/q H1 2024 H1 2023 VAR y/y ARR 33,676 31,566 6.7% 33,754 -0.2% 33,676 31,566 6.7% Recurring revenue 8,955 8,808 1.7% 8,054 11.2% 17,009 16,304 4.3% % of revenue 94.5% 93.5% 93.6% 94.1% 92.5% Revenue 9,479 9,417 0.7% 8,6
Slide 12: ARR trend 2022-Q2'2024
ARR trend 2022-Q2’2024 40,0 +6,7% Q2 q/q growth negative (- 0.2%) due to negative impact 35,0 from annual adjustment fees. 33,8 33,7 32,6 32,5 30,0 30,7 31,6 Trackinno impact in y/y 30,0 28,9 29,6 growth: +1.9%-points (+0.6 25,0 MEUR) 25,1 20,0 15,0 10,0 5,0 - Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3
Slide 13: ARR bridge 2021-Q2 2024
10,0 15,0 20,0 25,0 30,0 35,0 40,0 5,0 - AR R 20 21 24,4 Ne w sa le s 3,0 Ad j. f ee s 0,6 Up se ll 2,0 Do wn se ll -0,9 Ch u rn -1,4 M& A( Ko to p ro ) 2,2 AR R 20 22 29,9 Ne w sa le s 3,0 Ad Increase j. f ee s 0,8 Up se ll 2,5 Decrease Do wn se ll -1,5 ARR bridge 2021-Q22024 Ch Total u rn -2,1 AR
Slide 14: M&A and strategic investments supported by strong cash flow and high cash conversion
M&A and strategic investments supported by strong cash flow and high cash conversion (c. 80% of EBITDA) Cash & Net debt Operative & Free Cash Flow mEUR mEUR 4,0 12 11 3,5 10 8 8 3,0 5 2,5 1 2,0 1,5 -1 1,0 -4 -4 -6 0,5 -7 0,0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Cas
Slide 15: Majority of costs recognized in P&L
Majority of costs recognized in P&L R&D shifting focus to new technologies and AI à leading to increased capitalizations EBITDA & EBITDA - R&D capex R&D capex % of revenue kEUR 0,3 2,5 % 44,2 % 0,2 2,0 % 38,1 % 38,4 % 36,7 % 43,3 % 0,2 1,5 % 36,7 % 36,2 % 29,8 % 36,3 % 29,9 % 0,1 1,0 % 28,5 % 28,7 %
Slide 16: Outlook 2024 - unchanged
Outlook 2024 - unchanged + Renewed sales organization fully operational as of January 2024 with higher focus on cross sales ARR growth + Trackinno acquisition (+1.5 %-points) + – Price increases Economic situation expected to impact new sales and churn 5-10% (2023 ARR: 32.5m) Growth – Annual adjustm
Slide 17: Admicom - profitably growing vertical SaaS platform for building ecosystem
Admicom - profitably growing Vision vertical SaaS platform for First choice of partner in the European building ecosystem construction software ecosystem. 1. Strong foundation to build on Ambition 2. Huge long-term potential in ConTech 100 3. Comprehensive cloud SaaS -suite MEUR ARR by 2030 4. Prepa
Slide 18: Thank you! Questions please!
Thank you! Questions please! investors.admicom.fi