Slide 1: Q3 2024 report
Q3 2024 report NOVEMBER 5TH, 2024
Slide 2: Disclaimer
Disclaimer IMPORTANT – You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by SmartCraft ASA (the "Company") or any person on behalf of the Company, and any question-and- answer session that follows the oral
Slide 3: Solid performance in a challenging market
Solid performance in a challenging marked o SmartCraft and the market o Q3 highlights o Financials o Summary and Q&A
Slide 4: SaaS for SME construction companies
SaaS for SME construction companies People Industry challenges Documentation o 0-5% margins -> High level of bankruptcies o High level of conflict between construction company and customer o High level of accidents and deaths Material o Increasing demand for documentation and reporting SmartCraft di
Slide 5: Leading position in the Nordics
Leading position in the Nordics Solid performance over time 2019 2023 LTM o Consistent and solid growth before ARR 145 387 474 NOKm and after the IPO in June 2021 28.4% CAGR o Constantly gaining market share Adjusted EBITDA 36% 42% 39% margin o 16 offices in Sweden, Norway, 2.5 p.p uplift Finland an
Slide 6: Renovation is our main segment
Renovation is our Norwegian construction market by segment, bNOK main segment New residential Renovation residential New commercial Renovation commercial New Infrastructure Renovation infrastructure 160 Renovation is our target market 140 o Large market, bigger than new build 120 o Less volatile, wi
Slide 7: Positive signals in Sweden and Finland
Positive signals in Sweden and Finland Swedish market looks to improve after three interest rate cuts Construction starts have surpassed completions in Finland1 Norway is still experiencing a tough market as building permits continue to fall2 Housebuilding in the UK must double to meet Labour’s targ
Slide 8: Q3 highlights
Q3 highlights a Sala. SmartCraft BETTER DIGITAL TOOLS
Slide 9: Q3 2024 highlights
Q3 2024 highlights Continued strong growth, high margins, strong cash flow and low churn MNOK 474 25% MNOK 34 8% Annual Recurring Adjusted EBITDA-capex Operating cash flow Churn Revenue -4 p.p. + 58% +0.4% +29% excl. +3,1%acquisitions points +45% +21%
Slide 10: Strong marketing execution and prolonged conversion time to sales
Strong marketing execution and prolonged conversion time to sales +41% brand exposure 1 (44 million) Best in class sales engine with broad reach and highly effective lead conversion +30% inbound leads +62% sales meetings Sales Meetings 35% Lead processing Conversion from sales Meetings to sales (LTM
Slide 11: Positioning acquired solutions for future growth
Positioning acquired solutions for future growth o Clixifix (UK) acquired in May o Platform for UK expansion o +30% growth in recurring revenue in Q3 (YoY) o EBITDA-capex margin gone from negative to double digit in Q3 (YoY) o Evaluating Nordic solutions to the UK market along with Clixifix o Develo
Slide 12: Q3 key takeaways
Q3 key takeaways o Continued growth, high margins and strong cash flow despite challenging market o Some positive market signals in Sweden and Finland o Strong results from marketing and sales activities across the group o Investing in development and branding to be in pole position when the market
Slide 13: Financials
Financials aa Sala. SmartCraft BETTER DIGITAL TOOLS
Slide 14: High growth in recurring revenue as basis for success
Quarterly ARR growth history, mNOK High growth in recurring Organic growth M&A revenue as basis for success 54,7 o 29% growth in ARR o 10% organic growth year-over-year 5,8 o A high level of downgrades and churn affecting a seasonally low new-sales quarter 12,8 17,3 12,1 10,3 13,2 12,7 9,2 2,0 5,6 o
Slide 15: Continued growth in revenue and strong profitability
Continued growth in revenue and strong profitability Solid YoY revenue growth Consistently high profitability R&D capex mNOK mNOK 97.5% 94.1% 40 0 35 0 +32.3% 131,8 0 30 41,9 % 10,7 % 0 39,3 % 40,9 % 38,5 % 8,1 % 36,0 % 25 0 99,7 20 0 33,8 % 31,4 % 33,1 % 14,2 0 29,2 % 15 Acquired 25,3 % Coredinatio
Slide 16: Strong revenue growth in Sweden
Strong revenue growth in Sweden (mNOK) Sweden +38% o Strong growth o Acquisition of Locka 45,6 24,4 63,0 28,4 o Build momentum in sales to new customers after summer holiday Q3'23 Q3'24 Revenue EBITDA Revenue growth o Positive signals in market o Three interest rate cuts starting to materialize in p
Slide 17: Solid growth and high margin continue in Norway
Solid growth and high margin Norway (mNOK) continue in Norway +10% o Continued good growth in revenue o Strong performance in sales to new customers after the summer holiday 41,7 17,9 45,1 20,5 o Growth hampered by increasing churn and Q3'23 Q3'24 downgrades Revenue EBITDA Revenue growth o Adjusted
Slide 18: Positive signals in a challenging Finnish market
Positive signals in a Finland (mNOK) challenging Finnish market +2% o Negative growth improve from -6% in H1, expecting improvements to continue 12,4 4,4 12,7 4,7 Q3'23 Q3'24 o ARR growth trending up, churn trending down Revenue EBITDA Revenue growth o Positive market signals o Initiated constructio
Slide 19: Solid financial position and strong cash flow
Solid financial position Balance sheet, Sept 30, 2024 and strong cash flow mNOK Cash and cash equivalents Deferred revenue - to support growth strategy and M&A activity Current assets Current liabilities Non-current assets Non-current liabilities Goodwill and intangible assets Equity Operating cash
Slide 20: Key focus to drive continued profitable growth
Key focus to drive continued profitable growth Medium-term financial targets remain unchanged Organic growth o Customer centric business model 15 – 20% o Continue with marketing and sales excellence to build solid new customer pipeline bolt on M&A o More sales automation & self service o Use our fle
Slide 21: We continue on our profitable growth journey
We continue on our profitable Q&A growth journey o Continue to deliver on our strategy o Reduced operational risk Make sure to follow us for the latest news! o Consistent strong operational cash flow smartcraft.com LinkedIn Facebook YouTube
Slide 22: SmartCraft
yo SmartCraft