Smartcraft Group Ab (publ) · OMXSTO:SMCRT
Smartcraft Group Ab (publ) — Q3 2022 Earnings Presentation
30 slides from Smartcraft Group Ab (publ)'s earnings presentation, Nov 1, 2022
Slide 1: Q3 2022 report
Q3 2022 report SmartCraft ASA November 1st 2022 SmartCraft ASA Q3 2022 report 1
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: Agenda
Agenda • Market position • Operational development • Financial review and future outlook • Q&A SmartCraft ASA Q3 2022 report 3
Slide 4: Q3 highlights
Q3 highlights 16% organic ARR growth (NOK 304 million) 39% adjusted EBITDA margin Strong operating cash flow, 43% growth year-on-year Continued high activity in the construction market 97% recurring revenue 5% churn in revenue SmartCraft ASA Q3 2022 report 4
Slide 5: Our customers need to digitalize in good and bad times
Our customers need to digitalize in good and bad times Lack of skilled workers Our position •Need for skilled construction workers globally •Aging workforce and lack of recruitment • Greatly underpenetrated market that grows • SME focus • High customer activity Long tail of service needs in private
Slide 6: How to drive short/medium term revenue growth
How to drive short/medium term revenue growth • NOK 10bn market in existing Churn reducing Revenue geographies activities drivers • Strong culture and focus on organic growth Customer centric services Geographical expansion • Operationalizing several initiatives Usage tracking Extend value chain to
Slide 7: SmartCraft Group acquisition strategy
SmartCraft Group acquisition strategy • Wide selection criteria in all three geographies • Additional functionality to widen offering • Additional customer base • Selective • SaaS or SaaS understanding/mindset • Commercial proof of concept • Unique, not too generic • No customization • No turn-aroun
Slide 8: Acquisition of Inprog, strengthening leadership in software for electricians
Acquisition of Inprog, strengthening leadership in software for electricians • Acquired in the beginning of October • Nice addition to SmartCraft electro portfolio • Made by electricians for electricians • Specialize in project management for electricians in the field • Good intuitive app • Synergie
Slide 9: Q3 operational development
Q3 operational development
Slide 10: SmartCraft planning for further scale and growth
SmartCraft planning for further scale and growth SmartCraft 1.0 (to date) SmartCraft 2.0 (going forward) • Established Nordic leader • New leadership team • Proven ability to drive successful • Continue targeted acquisitions consolidation • One marketing organization, • Portfolio of great best of br
Slide 11: Leadership team – aligning for scalability and higher growth
Leadership team – aligning for scalability and higher growth Gustav Line Kjartan Bø Christian Saleki Katja Widlund Chief Executive Officer Chief Financial Officer Chief Technology Officer Chief Marketing Officer Hanna Konyi Timo Makkonen Vivienne B. Karlsen Country Manager Sweden Country Manager Fin
Slide 12: Increased coordination and collaboration in each geography
Increased coordination and collaboration in each geography • Coordinating sales efforts • Avoid contacting the same customers with different messages • Collaboration across solutions • Remove silo thinking and execution • Marketing synergies • Avoid competing for SoMe attention • Attending trade fai
Slide 13: We are on a mission to digitalize the construction industry
WE ARE ON A MISSION TO DIGITALIZE THE CONSTRUCTION INDUSTRY
Slide 14: Two important obstacles in faster rate of digitalization
Two important obstacles in faster rate of digitalization Super fast onboarding Maximize usage of our solutions and deliver value quickly SmartCraft ASA Q3 2022 report 14
Slide 15: Organizing workflow according to domains – Starting with electricians
Organizing workflow according to domains – Starting with electricians • It is about understanding user needs from the start to end of a workday • Mapping user’s journey throughout workday with a digital tool • Providing value, comfort and relief along the journey • In a way, domains can be seen as a
Slide 16: Aligning and segmenting solutions for electricians to optimize customer benefit and growth
Aligning and segmenting solutions for electricians to optimize customer benefit and growth Bob the electrician SmartCraft ASA Q3 2022 report 16
Slide 17: The benefits of domains
The benefits of domains Focus for teams Align business Natural feedback loop Clarity for the involved functions that drives product end users development SmartCraft ASA Q3 2022 report 17
Slide 18: SmartCraft ASA Q3 2022 report
SmartCraft ASA Q3 2022 report 18
Slide 19: Medium term SmartCraft offering for small and medium enterprises (SME)
Medium term SmartCraft offering for small and medium enterprises (SME) QA Calc Doc Sales Cable SmartCraft for Electricians SmartCraft ASA Q3 2022 report 19
Slide 20: Medium term SmartCraft offering for small and medium enterprises (SME)
Medium term SmartCraft offering for small and medium enterprises (SME) QA Calc Doc Sales Cable SmartCraft for Electricians COMMUNICATE CALC DOC ORDER COLLABORATE Headless capabilities PROJECT BIM RESOURCE SmartCraft ASA Q3 2022 report 20
Slide 21: Medium term SmartCraft offering for small and medium enterprises (SME)
Medium term SmartCraft offering for small and medium enterprises (SME) SmartCraft for Electricians COMMUNICATE CALC DOC ORDER COLLABORATE Headless capabilities PROJECT BIM RESOURCE SmartCraft ASA Q3 2022 report 21
Slide 22: Q3 Financial review and future outlook
Q3 Financial review and future outlook
Slide 23: Long history of growth irrespective of macro conditions
Long history of growth irrespective of macro conditions Aggregated revenue for companies embedded in SmartCraft pre IPO… …and post IPO mNOK 324 281 219 177 153 137 119 86 99 71 79 55 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LTM Q3'21 LTM Q3'22 Amalgamated revenue pre IPO1 Amalgamated revenu
Slide 24: Continued growth in revenue and increasingly strong profitability
Continued growth in revenue and increasingly strong profitability Solid YoY revenue growth Consistently high adjusted EBITDA margin R&D capex mNOK mNOK 96.1% 97.1% 47,1 % +15.9% 40,9 % 40,4 % 82.4 38,8 % 36,7 % 36,8 % 36,2 % 5.7% 72.2 4.7% Acquired Acquired Kvalitetskontroll Elverdi 4.7 3.4 Q3’21 Q3
Slide 25: Maintaining high growth in Q3
ARR growth, mNOK Maintaining high growth in Q3 M&A 27,9 24,7 • 17% growth in ARR Organic • 16% organic growth from new sales and upsales growth 8,8 17,6 2,8 • Acquisition of Elverdi in June 2022 8,6 8,8 10,6 7,0 7,8 8,3 5,6 • Continued high sales conversion rate and strong pipeline going Q4'20 Q1'21
Slide 26: Solid financial position and strong cash flow
Solid financial position and strong cash flow Balance sheet, September 30, 2022 Operating cash flow mNOK mNOK 74,3 202,9 58,7 78,2 54,2 35,8 39,7 18,4 771,9 28,6 707,1 14,9 4,1 10,4 9,8 Assets Equity and liabilities Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Cash and cash equivalents Deferred revenue
Slide 27: Medium term financial targets stand firm
Medium term financial targets stand firm Growth Margin Organic growth 15 – 20% bolt on M&A Margin expected to increase due to scalability of the business Short-term considerations: 1) Impact from acquired companies last 12 months SmartCraft ASA Q3 2022 report 27
Slide 28: Make sure to follow us for the latest news!
Make sure to follow us for the latest news! smartcraft.com Linkedin Facebook YouTube SmartCraft ASA Q3 2022 report 28
Slide 29: Q&A
Q&A
Slide 30: SmartCraft
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