Trifork Group Ag · OMXCOP:TRIFOR
Trifork — Q1 2024 Earnings Presentation
29 slides from Trifork's earnings presentation, May 7, 2024
Slide 1: Embracing Partnerships & Business Development - 2024 Q1 Investor Presentation
Embracing Partnerships & Business Development 2024 Q1 INVESTOR PRESENTATION 7 MAY 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: Q1 revenue growth of 1.4% affected by less business days
Q1 revenue growth of 1.4% affected by less business days (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% 50.4 2007 2008 2009 2010 2011 201
Slide 5: Earnings expected to normalize in coming quarters
Earnings expected to normalize in coming quarters 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% 5.8 2007 2008 2009 2010 2011 2012 20
Slide 6: Guidance for 2024 is unchanged
Guidance for 2024 is unchanged Trifork Group Trifork Segment Trifork Group revenue adj. EBITDA EBIT Guidance 2024 EURm 230-240 EURm 38-42 EURm 21.5-25.5 10.6%-15.4% total growth 15.8% - 18.3% margin 9.0% - 11.1% margin 1 9.7%-14.5% organic growth 6 (1) Inorganic revenue (based on announced transacti
Slide 7: Trifork Group in short
Trifork Group in short 15.4% 12.8% 2.0% Trifork segment Trifork Labs - 24 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: Financial highlights in Q1
Financial highlights in Q1 REVENUE GROWTH KEY FINANCIALS KEY STATISTICS Inorganic revenue (1) ▪︎ 72 business units Organic revenue EURm 50.4 0.0% ▪︎ 1,275 employees Revenue Q1 2024 organic Q1 2024 revenue revenue growth ▪︎ 24 active investments ▪︎ 66m views on GOTO YouTube & Instagram EURm 5.8 11.6%
Slide 10: Performance update Q1
TRIFORK SEGMENT Performance update Q1 Inspire 1.1% ▪︎ Limited conference activities in Q1 and preparation for events in Q2 ▪︎ Initiated reshaping of the GOTO organization and approach towards conferences Conferences ▪︎ EURm -1.0m adj. EBITDA in Q1 2024, incl. EURm 0.2 one-off costs ▪︎ Satisfactory g
Slide 11: Main events in Q1
TRIFORK SEGMENT Main events in Q1 Organization ▪︎ 1,169 FTEs on average (Q1 23: 1,052) and 1,275 employees in total (Q1 23: 1,235) 1 ▪︎ LTM employee churn was 16.2% (Q1 23: 14.8%) ▪︎ Sick leave Q1 2024 was 2.9% (Q1 23: 2.7%) Partnerships and trade shows ▪︎ Invited to speak and exhibit at NVIDIA GTC
Slide 12: A seamless travel experience
CASE STORY A seamless travel experience The DSB Group is an independent public corporation owned by the Danish Ministry of Transport and ensures 195 million public transport journeys are completed across Denmark each year. Last week, DSB unveiled a new check-in functionality completed by beacon and
Slide 13: Business area highlights in Q1
TRIFORK SEGMENT Business area highlights in Q1 FinTech 15.4% Digital Health 12.8% Smart Building 2.0% ▪︎ Engagement concerning Electronic ▪︎ Introduced GP-recommended health apps ▪︎ Vision Pro workshops with various players in identification (eID) for patient use building industry ▪︎ CSRD reporting
Slide 14: Business area highlights in Q1
TRIFORK SEGMENT Business area highlights in Q1 Smart Enterprise 49.6% Cyber Protection 3.2% Cloud Operations 15.8% ▪︎ Several workshops and new engagements ▪︎ Ongoing initiatives to reorganize our teams ▪︎ Launched contain.dk, our cloud native with enterprises regarding the Apple Vision Pro and deli
Slide 15: We are progressing with our strategic initiatives
TRIFORK SEGMENT We are progressing with our strategic initiatives Priorities Action points Progress in Q1 Maintain high level of - Open US and Swiss markets further, potentially with - Expanded teams in Switzerland and US focusing on 1 business development acquisitions Digital Health and Smart Enter
Slide 16: EURm 1.5 book value increase from good performance
TRIFORK LABS EURm 1.5 book value increase from good performance Position 1-5 ALPHABETIC ORDER Position 6 – 10 ALPHABETIC ORDER 7.7% REST AxonIQ Arkyn Studios Software development framework Field and factory SaaS on top of SAP 19.3% Bluespace Ventures POS. 6–10 C4 Media Swiss digital health platform
Slide 17: ESG update Q1
STATUS 31 MARCH 2024 Please see the Trifork Group 2023 ESG Report here: Link ESG update Q1 Environment Governance ▪︎ Initiated Science Based Targets calculations on Scope 1, 2, ▪︎ Dedicated our efforts to preparing for CSRD and 3, expected to be submitted for approval to SBTi within ▪︎ Exploring opp
Slide 18: Trifork Group / Trifork Segment performance
Trifork Group / Trifork Segment performance REVENUE Inorganic growth Q1 2024 ▪︎ Revenue of EURm 50.4 equal to 1.4% growth ▪︎ Total growth is entirely inorganic, from the acquisition of Chapter 5 A/S in October 2023 ▪︎ Growth impacted by: ▪︎ Some customers cancelling ongoing work with short notice du
Slide 19: Trifork Segment performance
Trifork Segment performance ADJUSTED EBITDA Q1 2024 Growth Margin ▪︎ Adj. EBITDA ▪︎ EURm 5.8, equal to margin of 11.6% (Q1 23: 17.2%) ▪︎ No adjustments for special items in the quarter or in Q1 2023 ▪︎ Decrease of 31.9% partly explained by: -31.9% ▪︎ One-off costs of EURm 0.5 for GOTO and Cyber Prot
Slide 20: Trifork Group performance
Trifork Group performance EBIT Q1 2024 Growth Margin ▪︎ EBIT ▪︎ 2.8% margin (Q1 2023: 10.1%) impacted negatively by same factors as adj. EBITDA ▪︎ Increased depreciations/amortizations from IBE and Chapter 5 acquisitions ▪︎ Amortizations account for 29% of total D&A ▪︎ Higher depreciations in relati
Slide 21: Trifork Segment performance
Trifork Segment performance REVENUE BY SUB-SEGMENTS (EURM) ADJ. EBITDA AND MARGINS BY SUB-SEGMENT IN Q1 2024 Inspire Build N.A. 15.7% 13.1% N.A. 11.6% Run Other 21
Slide 22: Inspire performance
Inspire performance REVENUE ADJUSTED EBITDA Q1 2024 ▪︎ Only smaller events in the first quarter and preparation work for the GOTO conferences and Lambda Days in Q2. ▪︎ EURm -1.0 adj. EBITDA in Q1 2024 (Q1 2023: EURm -0.7), including one-off costs of EURm 0.2 due to reorganization ▪︎ Cost reduction e
Slide 23: Build performance
Build performance REVENUE ADJUSTED EBITDA Inorganic growth Margin Q1 2024 ▪︎ EURm 38.8 revenue corresponding to 1.7% growth, entirely inorganic ▪︎ Less working days available in Q1 2024 vs. Q1 2023 due to shift of Easter break and vacation planning ▪︎ Some customers cancelling ongoing work with shor
Slide 24: Run performance
Run performance REVENUE ADJUSTED EBITDA Margin Q1 2024 ▪︎ 0.2% revenue growth, entirely organic ▪︎ Most Run-based revenue is recurring and comes from sales of Trifork’s own products and related services ▪︎ Focus areas in Q1 2024: ▪︎ Strengthening sales of own IP: 28% Y/Y increase in Q1 +0.2% ▪︎ Non-
Slide 25: Run revenue split
Run revenue split (1) Hosting and security Licenses and support Third-party licenses Hardware Adj. EBITDA margin 21.7% 16,000 31.2% 12,000 23.2% 21.1% 13.1% 12.1% 16.2% 20.1% 23.5% 28.3% 19.0% 16.4% 28.5% 8,000 20.6% 22.7% 22.6% 15.7% 4,000 Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/
Slide 26: Labs performance
Labs performance 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 Book value EURm 71.2 (1)(1) 26
Slide 27: Cash flow and financial position
Cash flow and financial position NET INTEREST-BEARING DEBT Q1 2024 Leverage ratio (NIBD/adj. EBITDA) ▪︎ Operating cash flow of EURm 1.9 (Q1/23: 4.6) -0.6x ▪︎ Investing activities of EURm -1.7 (Q1/23: -2.6) ▪︎ Financing activities of EURm -4.7 (Q1/23: -5.0) -0.1x ▪︎ Net interest-bearing debt of EURm
Slide 28: 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 and try the Apple
Slide 29: Q&A
Q&A Strong external 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 We change the world with