Trifork Group Ag · OMXCOP:TRIFOR
Trifork — FY2023 Earnings Presentation
32 slides from Trifork's earnings presentation, Feb 28, 2024
Slide 1: A challenged world needs digitalization
A challenged world needs digitalization 2023 Q4 & FY INVESTOR & ANALYST PRESENTATION 28 FEBRUARY 2024
Slide 2: Presenters
PRESENTERS CEO CFO Jørn Larsen Kristian Wulf-Andersen Year of joining 1996 Year of joining 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 B
Slide 3: 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 hist
Slide 4: Revenue growth of 12.4% in FY23 in a slower market
Revenue growth of 12.4% in FY23 in a slower market (1) 20% EURm 34% 23% 9% 37% 17% 12% 11-15% Revenue from acquisitions Organic revenue 230-240 Guidance Revenue growth 207.9 CAGR 2017-2023: 22% 184.9 202.2 183.4 158.5 138.0 115.4 106.4 86.5 CAGR 2007-2023: 23% 2007 2008 2009 2010 2011 2012 2013 2014
Slide 5: 16.9% margin in FY 2023 due to investments in sales
16.9% margin in FY 2023 due to investments in sales EURm 15.8% to 12.4% 12.4% 17.5% 18.1% 17.3% 16.9% 18.3% Adjusted EBITDA, Trifork Segment Guidance Adjusted EBITDA margin, Trifork Segment 38-42 35.0 CAGR 2017-2023: 28% 31.9 28.6 20.2 13.3 10.7 CAGR 2007-2023: 23% 2007 2008 2009 2010 2011 2012 2013
Slide 6: 2024 guidance: Continued double-digit growth
2024 guidance: Continued double-digit growth Trifork Group Trifork Segment Trifork Group Trifork Group revenue adj. EBITDA EBIT NIBD/adj. EBITDA Guidance 2024 EURm 230-240 EURm 38-42 EURm 21.5-25.5 No guidance 1 10.6%-15.4% total growth 15.8% - 18.3% margin 9.0% - 11.1% margin 9.7%-14.5% organic gro
Slide 7: Trifork Group in short
Trifork Group in short 12.2% 12.0% 3.5% Trifork segment Trifork Labs - 23 minority investments Digital Smart - Software solutions and services FinTech - Software products and platforms Health Building - Majority ownership - Partnerships and strategic focus - 72 individual business units - Revenue sy
Slide 8: We reduce costs and stress and enable compliance
TARGETING OUR CUSTOMERS’ “CFO AGENDA” We reduce costs and stress and enable compliance Field & factory Reaching NIS2, DORA, CRA Development & ERP Effective healthcare software sustainability targets cyber compliance integration AI and ML Digital twin platforms Flexible and secure Quality intelligenc
Slide 9: Spatial computing - The next step for Enterprises
Spatial computing - The next step for Enterprises Apple Vision Pro ▪︎ Significant leap forward in Enterprise mobility technology - no need for screen, mouse, or keyboard ▪︎ Supported by Apple Device Management meaning IT departments can manage AVP like they do with Macs, iPhones, and iPads Strong cu
Slide 10: Financial highlights in Q4
Financial highlights in Q4 REVENUE GROWTH KEY FINANCIALS KEY STATISTICS Organic growth (1) ▪︎ 72 business units (1) Inorganic growth +9.3% EURm 55.0 7.0% ▪︎ 1,210 headcount Q4/2023 revenue Q4/2023 organic ▪︎ 23 active startups +12.4% revenue growth ▪︎ 62.6m video views online EURm 11.8 21.4% Q4/2023
Slide 11: Performance update Q4
TRIFORK SEGMENT Performance update Q4 Inspire 3.0% ▪︎ Sponsorships and conference ticket purchases still hit by corporate cost savings ▪︎ Initiated reorganization and reduced investment plans in Inspire Conferences ▪︎ -0.3m adj. EBITDA in Q4 vs. average of -0.8m in the first three quarters ▪︎ Satisf
Slide 12: Diversified and loyal customer base
TRIFORK SEGMENT Diversified and loyal customer base Organic growth and M&A contributes to lower SHARE OF GROUP REVENUE customer concentration 50% 50% 48.7% 48.4% ▪︎ The customer base is well diversified, and diversifies further as revenue grows, as seen in the declining customer 45% concentration fr
Slide 13: Main events in Q4
TRIFORK SEGMENT Main events in Q4 Organization ▪︎ 1,149 FTEs on average (Q4/22: 1,013) and 1,210 employees in total (Q4/22: 1,062) (1) ▪︎ Employee churn was 15.8% (Q3/23: 14.1%, Q2/23: 13.6%) ▪︎ Sick leave FY/23 was 3.6% (FY/22: 2.7%) Acquisition of Chapter 5 ▪︎ Announced acquisition on 5th October
Slide 14: Building and running a new data platform
CASE STORY BUSINESS AREAS: SMART BUILDING & CLOUD OPERATIONS Building and running a new data platform Example of a customer spanning Build-revenue (Smart Building & IoT) and recurring Run-revenue (Cloud Operations subsidiary Netic) Kamstrup is a global leader in metering solutions for water, power,
Slide 15: Business area highlights in Q4
TRIFORK SEGMENT Business area highlights in Q4 FinTech 12.2% Digital Health 12.0% Smart Building 3.5% ▪︎ Acquisition of Chapter 5 in October, a leading ▪︎ Building AI platform to train LLMs with full data ▪︎ Workshops with large building materials Danish player in pension operations and fund control
Slide 16: Business area highlights in Q4
TRIFORK SEGMENT Business area highlights in Q4 Smart Enterprise 46.2% Cyber Protection 6.2% Cloud Operations 16.4% ▪︎ Selected as one of three winners on DKKm 250 ▪︎ High-profile projects executed in the hacking ▪︎ Became ISO 27001 certified of the entire SAP tender by Danish utility Andel Holding s
Slide 17: Strategic priorities in 2024
TRIFORK SEGMENT Strategic priorities in 2024 ▪︎ Maintain high level of business development - Open US and Swiss markets further, potentially with acquisitions - Broaden our opportunity pipeline further in all markets ▪︎ Sharpen business model in Inspire - Conference execution and how to work with sp
Slide 18: Go-to-market model
TRIFORK LABS 23 active investments at the end of Q4 Go-to-market model Q4 2023 1 Invested in Bluespace Ventures AG (Compassana), an existing 3 Trifork customer within digital Inspire health in Switzerland, co-owned by six large insurance and healthcare companies. Co-founded Ossmo ApS, a platform and
Slide 19: Top 10 accounts for 92% of book value, performing well
TRIFORK LABS Top 10 accounts for 92% of book value, performing well Position 1-5 ALPHABETIC ORDER Position 6 – 10 ALPHABETIC ORDER 8.1% REST AxonIQ Arkyn Studios Software development framework Field and factory SaaS on top of SAP Bluespace Ventures 19.5% C4 Media POS. 6–10 Swiss digital health platf
Slide 20: ESG update Q4
STATUS 31 DECEMBER 2023 Please see the new Trifork Group 2023 ESG Report here: Link ESG update Q4 Environment Governance ▪︎ Committed to Science Based Targets and the Danish local ▪︎ Dedicated our efforts to preparing for CSRD by initiating the initiative 'Klimaalliancen Aarhus', where we will work
Slide 21: Trifork Group / Trifork Segment performance
Trifork Group / Trifork Segment performance REVENUE Organic growth +9.3% Q4/2023 Inorganic growth ▪︎ Revenue of EURm 55.0 equal to 10.4% growth +12.4% ▪︎ As usual, no revenues recorded in Trifork Labs companies are included as Trifork Group revenue, however some Labs companies are customers in Trifo
Slide 22: Trifork Segment performance
Trifork Segment performance ADJUSTED EBITDA +9.7% Q4/2023 Growth 16.9% Margin 17.3% ▪︎ Adj. EBITDA ▪︎ EURm 11.8, equal to margin of 21.4% (Q4/22: 19.5%) ▪︎ No adjustments for special items in the +20.9% quarter or in Q4/22 21.4% 19.5% 22
Slide 23: Trifork Group performance
Trifork Group performance EBIT Q4/2023 Growth +7.4% Margin ▪︎ EBIT 9.9% 9.5% ▪︎ 13.5% margin (Q4/22: 12.3%) impacted negatively by investments in business development and positively by capitalizations of own product development +21.3% ▪︎ Small increase in depreciations and amortizations from IBE and
Slide 24: Trifork Segment performance
Trifork Segment performance REVENUE BY SUB-SEGMENTS (EURM) ADJ. EBITDA AND MARGINS BY SUB-SEGMENT IN FY/23 Other Run -43.3% 18.8% 24.3% n.m. 16.9% Build Inspire 24
Slide 25: Inspire performance
Inspire performance REVENUE ADJUSTED EBITDA Organic growth Q4/2023 ▪︎ Sponsorships and conference ticket purchases +9.2% still hit by corporate cost savings ▪︎ Scaled down planning of new conference activities to match the slower market demand, and reorganized how we arrange conferences ▪︎ -0.3m adj
Slide 26: Build performance
Build performance REVENUE ADJUSTED EBITDA Organic growth Margin Q4/2023 Inorganic growth +6.5% ▪︎ EURm 38.7 revenue corresponding to 3.9% growth, -4.2% of which was 2.0% organic +7.0% ▪︎ Growth below expectations as initiation of customer engagements were moved from Q4 to 20.9% 18.8% first half of 2
Slide 27: Run performance
Run performance REVENUE ADJUSTED EBITDA Organic growth Margin Q4/2023 (1) Inorganic growth +19.2% ▪︎ 33.7% revenue growth ▪︎ 23.9% organic revenue growth +32.1% +92.2% ▪︎ 26.4% organic growth, if adjusted for aperiodic and non-core hardware and third-party licenses 24.3% (1) ▪︎ Most Run-based revenu
Slide 28: Run revenue split
Run revenue split (1) Hosting and security Licenses and support Third-party licenses Hardware Adj. EBITDA margin QUARTERLY RUN REVENUE ANNUAL RUN REVENUE 16,000 60,000 24.3% 12,000 45,000 16.7% 22.8% 22.2% EURk EURk 8,000 30,000 4,000 15,000 Q1/2020 Q3/2020 Q1/2021 Q3/2021 Q1/2022 Q3/2022 Q1/2023 Q3
Slide 29: Labs performance
Labs performance EBT (EURM) INVESTMENTS (EURM) Acc. realized gain Acc. unrealized gain Cash / cost in active investments (1)(1) 1) Of the EURm 41.7 invested capital in Trifork Labs at the end of 2023, EURm 20.3 come from deconsolidated Trifork Group companies and EURm 21.4 from cash investments. 29
Slide 30: Cash flow and financial position
Cash flow and financial position NET INTEREST-BEARING DEBT Q4/2023 Leverage ratio (NIBD/adj. EBITDA) ▪︎ Operating cash flow of EURm 6.6 (Q4/22: 6.8) ▪︎ Investing activities of EURm -14.6 (Q4/22: -1.8) -0.6x ▪︎ Financing activities of EURm 7.3 (Q4/22: -1.6) ▪︎ Net interest-bearing debt of EURm 28.3 -
Slide 31: Capital Markets Day
29 May 2024 Capital Markets Day - Trifork’s first CMD since the IPO in 2021 - New and valuable insights into Trifork’s growth journey, capabilities, strategies, financial development, and future ambitions - Meet many key representatives from Trifork Group and Trifork Labs companies Date: May 29, 202
Slide 32: Q&A
Q&A Strong non-cyclical growth drivers Software innovation specialists Three decades of resilient growth and margins Full-circle and low risk business model Effective and agile teal organization Successful and profitable innovation model Enabling customers to become sustainable with software We chan