Slide 1: Admicom Oyj Full year and Q4 results
Admicom Oyj Building sustainable future together Full year and Q4 results 19 January 2024 Petri Kairinen, CEO Satu Helamo, CFO
Slide 2: Agenda
Agenda § Admicom strategy execution in 2023 - Petri Kairinen § Q4 and 2023 financials - Satu Helamo § Expectations for 2024 - Petri Kairinen § Financial outlook for 2024 - Satu Helamo § Q&A
Slide 3: Strategic journey: First choice of partner in the European construction software ecosystem
Strategic journey: ”First choice of partner in the European construction software ecosystem” Construction Construction technology Multi-sector ERP- technology for building for building ecosystem software in Finland ecosystem in Finland internationally § Limited capability for § Comprehensive portfol
Slide 4: Building ecosystem software adoption is lagging
Building ecosystem software adoption is lagging Level of digitalization Huge ICT Media opportunity Finance & insurance Digitalisation creates Retail both operational benefits and cost savings through e.g.: Automotive / Discrete Utilities • Seamless dataflows Chemicals • Solid Process output Oil & Ga
Slide 5: Current growth opportunities
Current growth opportunities Large addressable market (TAM) Vast growth opportunities in major European markets opportunity just in Finland (TAM, relative to Finland) Services ARR Software ARR ~15x 323 MEUR ~6x 11x ~4x ~3x 30.2 MEUR N.q. ARR 12/23 TAM 5
Slide 6: Enabler of learning-driven construction
"Now, with the help of monitoring, we can also draw conclusions on how to act in the future and what we should actually do." Competence growth Responsiveness and Knowledge Enabler of learning- forecasting "The best thing about Admicom Ultimate is its comprehensiveness. We have driven construction "W
Slide 7: Our solutions for the stages in the building life cycle
Our solutions for the stages in the building life cycle All encompassing ERP solution for Easy-to-integrate ERP solution realtime steering of operations, for managing mobile field work Finances, personnel Construction projects personnel and finances and banking Purchases Offer calculation Employment
Slide 8: Focus for Growth highlights in 2023
Focus for Growth highlights in 2023 ü First new product MVP • Tempo and Estima Pro launched to fuel SME sector growth in future ü Joint brand and culture • Supporting One Admicom suite cross-sell and integration of operations ü R&D moving to fully agile • Allow transformation to new modern features
Slide 9: Highlights from Q4
Highlights from Q4 § New sales ended on planned levels during Q4 § Market situation continued to be soft with high churn levels due to insolvencies and also MRR downsell in volume priced solutions § Internationalization planning proceeded to further market studies and search of possible M&A targets
Slide 10: Agenda
Agenda § Admicom strategy execution in 2023 - Petri Kairinen § Q4 and 2023 financials - Satu Helamo § Expectations for 2024 - Petri Kairinen § Financial outlook for 2024 - Satu Helamo § Q&A
Slide 11: Key figures of FY2023
Key figures of FY2023 Recurring revenue growth/ EBITA ARR, MEUR Comparable organic RR growth* 12.4% / 10.8%* 36.9% 32.5 (43.4%) (30.0) Revenue growth Customer churn Recurring revenue of total revenue 8.6% 6.9% 93% (27.2%) (88%) * Comparable organic recurring revenue includes recurring software reven
Slide 12: Key financials of 2023
Key financials of 2023 ADMICOM GROUP (1,000 EUR) FY 23 FY 22 VAR Q4 23 Q4 22 VAR ARR 32 492 29 958 8.5% 32 492 29 958 8.5% Revenue 34 321 31 615 8.6% 8 194 8 039 1.9% Comparable organic recurring revenue 30 293 27 348 10.8% 7 458 6 990 6.7% % of revenue 88.3% 86.5% 91.0% 86.9% EBITDA 12 800 14 115 -
Slide 13: ARR trend 2022-2023
ARR trend 2022-2023 +8.5% 35,0 32,7 32,5 30,0 31,6 30,7 29,6 30,0 28,9 25,0 25,1 20,0 15,0 10,0 5,0 - Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23
Slide 14: ARR bridge 2021-2023
ARR bridge 2021-2023 Increase Decrease Total 40,0 2,5 35,0 0,8 3,0 - 1,5 32,5 - 2,1 2,0 2,2 29,9 30,0 3,0 0,6 - 0,9 - 1,4 25,0 24,4 20,0 15,0 10,0 5,0 - New sales Upsell Churn ARR 2022 Adj. fees Downsell ARR 2023 ARR 2021 Adj. fees Downsell M&A (Kotopro) New sales Upsell Churn
Slide 15: Revenue split 2023
Revenue split 2023 Revenue by business Revenue by services Software development services Onboarding, consulting and other 2% 6% Accounting services 18 % Documentation solutions ERP solutions SaaS 8% 77 % 76 % Project management solutions 13 % Approximately 93 % of Admicom’s revenue is recurring
Slide 16: Agenda
Agenda § Admicom strategy execution in 2023 - Petri Kairinen § Q4 and 2023 financials - Satu Helamo § Expectations for 2024 - Petri Kairinen § Financial outlook for 2024 - Satu Helamo § Q&A
Slide 17: Our North Star is the ambition we aim for
Our North Star is the ambition we aim for Our building ecosystem customers are +25% more productive than their peers Superior customer Comprehensive data experience is the result platform with AI: of seamless connection Innovative, but simple to use of software with value 2030: solutions utilize dat
Slide 18: Market situation in the Finnish construction sector
Market situation in the Finnish construction sector § The outlook for construction sector in Finland Construction sector revenue trends * continues to be weak § New residential build construction starts for 2024 15 12,7 impossible to estimate currently, hopes for starts to increase from 2023 10 8,1
Slide 19: Three principles guide us towards the North Star
Three principles guide us towards the North Star 2023-2024 2025-> Focus for Growth Accelerated Growth Winning customer Bringing the ecosystem to the Customer centricity as a client. Closeness with value- experience strategic advantage add services. Increasing speed and agility Data-driven comprehens
Slide 20: Admicommunity making the growth happen
Admicommunity making the growth happen 271 employees § Investments into personnel § in order to develop customer success, Services (accounting, product management and development customer success etc) and fully resourcing accounting services 15% 6% Engineering & product § Slight HC growth in Q4 (263
Slide 21: Setting up for Accelerated Growth during 2024
Setting up for Accelerated Growth during 2024 § Modern, customized dashboard and SSO for the Suite § Joint go-to-market approach and increased Short Term cross-sell Priorities § First AI&data implementations into products and increased internal automation § Efficient sales § Opening an international
Slide 22: Trackinno to reinforce Admicom's leadership position in ConTech
Trackinno to reinforce Admicom's leadership position in ConTech Ultima Ultima Assets Services Projects mgmt. Financials BI & AI mgmt. mgmt. & & HR IoT Flex Estima Insight Vision Planner Tempo Vision
Slide 23: Trackinno in a nutshell
Trackinno in a nutshell • Established in 2015 with vision of ”Asset management to the next level” • KPIs: 12/23 ARR 0.5 MEUR, ARR growth 22% and EBITDA 14% • Customers in Construction, Industrials and Logistics • Proven end-to-end solution with IoT automation, user experience centric design, no-code
Slide 24: Agenda
Agenda § Admicom strategy execution in 2023 - Petri Kairinen § Q4 and 2023 financials - Satu Helamo § Expectations for 2024 - Petri Kairinen § Financial outlook for 2024 - Satu Helamo § Q&A
Slide 25: Outlook 2024
Outlook 2024 + Renewed sales organization fully operational as of January 2024 ARR growth with higher focus on cross sales + – Trackinno acquisition (+1.5 %-points) Economic situation expected to impact new sales and churn 5-10% (2023 ARR: 32,5m) Growth – Annual adjustment fees expected to reduce fr
Slide 26: Admicom investment highlights
Admicom investment highlights Vision First choice of partner in the European 1. Firm foundation to build on construction software ecosystem. 2. Huge long-term potential in ConTech Ambition 3. Comprehensive cloud SaaS -suite 100 MEUR ARR by 2030 4. Solid financials and governance
Slide 27: Thank you! Questions please!
Thank you! Questions please! investors.admicom.fi