Inin Group AS · OSL:ININ
Inin Group AS — Elop — Q2 2021 Earnings Presentation
46 slides from Inin Group AS's earnings presentation, Sep 7, 2021
Slide 1: H1 and Q2 2021 results
H1 and Q2 2021 results 7 September 2021
Slide 2: Cautionary note
Cautionary note This presentation includes forward-looking information and statements that are subject to risks and uncertainties. Actual results may differ significantly from those communicated herein. Such forward-looking information pertain to, amongst other things; (a) forecasts, projections and
Slide 3: Presenting team
Presenting team Øivind Horpestad Bård Myrstad Kim Boman CEO and Chair of The Board Chief Operating Officer Chief Financial Officer 3
Slide 4: Q2 Highlights and subsequent events
Q2 Highlights and subsequent events Q2 HIGHLIGHTS SUBSEQUENT EVENTS • Several successful Elop Insight field tests completed within different • Internal reorganisation of group completed in August 2021. The industry verticals internal reorganisation has established Elop AS a holding company for the g
Slide 5: Elop in brief
Elop in brief Elop Group Joint management team Solutions to inspect and monitor critical infrastructure 100% 100% Developed and patented a rolling ultrasonic scanner that is far superior to what is available today Acquired Simplifai, a software company specializing in unstructured data processing an
Slide 6: Technology
elop elop TECHNOLOGY
Slide 7: The concrete challenge
The concrete challenge 8% of the world’s CO2 comes from the concrete production process Ageing infrastructure with significant backlog of maintenance Lack of efficient hardware to collect data Lack of efficient software to manage maintenances and monitor health of large infrastructure Source: Chatha
Slide 8: Consequences of being unable to monitor infrastructure cost-effectively
Consequences of being unable to monitor infrastructure cost-effectively For society, infrastructure owners and users Short infrastructure Costs of building Accidents that could High CO2 emissions lifetime new infrastructure have been prevented from production and construction 8
Slide 9: Elop has the first-of-its-kind concrete scanner
Elop has the first-of-its-kind concrete scanner Elop Insight is the world’s first rolling, ultrasonic, scanning solution for concrete inspection Real-time 3D visualization Globally patented ultrasound scanning solution that quickly, efficiently and accurately gathers assessment data on critical infr
Slide 10: Elop Technology's first sales orders signed in Q3
Elop Technology's first sales orders signed in Q3 Sales • The first batch of ultrasound scanners is being assembled inhouse for delivery in October • The first sales orders have been finalized Production • Production moved in-house for both software and hardware • Core components production to be he
Slide 11: First order received from Miami-based inspection company
First order received from Miami-based inspection company “Two-Thirds of Miami Condo Buildings Are Older Than 30 Years.” (Wall Street Journal) (according to data compiled by real-estate data firm Zillow for The Wall Street Journal.) 11
Slide 12: Field tests across Europe and asset classes
Field tests across Europe and asset classes Completed field tests Demo project with major asset owner in energy sector Demo project with inspection partner on the Abisko bridge in Sweden for large asset owner Demo project in Norway with major infrastructure entrepreneur Demo project for Elop Insight
Slide 13: Successful pilots and demo projects validate our technology
Successful pilots and demo projects validate our technology Demo project conducted in Demo project conducted in cooperation with CON+Scantech, a cooperation with Equinor utilizing specialist consultant for building Elop’s ultrasonic scanning solution maintenance and repair Conducted at the leaning t
Slide 14: DEKRA Visatec cooperation confirms the global potential of Elop's technology
DEKRA Visatec cooperation confirms the global potential of Elop’s technology • Global breakthrough for Elop Technology’s patented technology, including large sales potential • Collaboration and testing already on-going utilizing DEKRA facilities in Germany • Finalization of contract terms on-going -
Slide 15: Successful Crawler prototype tested in collaboration with DEKRA Visatec and ICM
Successful Crawler prototype tested in collaboration with DEKRA Visatec and ICM 15
Slide 16: Partnerships provide key opportunities within the survey and inspection market
Partnerships provide key opportunities within the survey and inspection market • Partnership with • Commercial use of Elop In addition to agreement Norwegian Public Roads technology in Administration to develop combination with with DEKRA Visatec, we Elop Technology’s Asset Terratec’s services Manag
Slide 17: Elop recruit infrastructure industry seniors
Elop recruit infrastructure industry seniors 2021 2021 2021 Fredrik Ekholm Marcus Jocham Niklas Persson Former Head of Strategy & Corporate Former VP Global Service Sales, Former VP Global Service Sales at Development at NRC Group Sweden Mechanized NDT Inspection DEKRA Group Technology at DEKRA Grou
Slide 18: Continuous R&D / Tech development and commercial launches in 2022
Continuous R&D / Tech development and commercial launches in 2022 Since 2013 2021 2022 2023 2024 Research & technology validation Combine GPR / IH1 Underwater scan Hardware Insight crawler Elop Multrawheel (Composite scan) Elop Multrawheel (Steel / Metal) R&D / Tech development Integrated Asset Mana
Slide 19: Simplifai's competence is key in building Elop AMS
Simplifai’s competence in data processing and process automation is key in building Elop AMS Software solutions that automate labor intensive work processes Software competence -Unstructured data processing -Process automation ELOP Asset Data generated by Elop scanners Management System Third party
Slide 20: Simplifai
Slide 21: Simplifai: Elop's AI business unit
Simplifai: Elop’s AI business unit Norwegian AI Company HQ in Oslo, 115 FTE’s Tech: AI, Natural Language Technology, AI Natural Language Processing (free-text) Verified: Microsoft Partner Products: Emailbot, Documentbot, and BOTS Chatbot Services: Digital Employees SaaS SaaS Business Model: Building
Slide 22: Key stepping stones for Simplifai
Key stepping stones for Simplifai Capturing a high growth market Recognition х Exponential sales growth Success stories х Widespread international NEW ENTRIES expansion ONGOING х Global distribution Claims Link and OSM COMPLETED Maritime success stories х Recognized as leading Credibility vendor w
Slide 23: Several contract wins verify Simplifai's technology leadership and growth potential
Several contract wins verify Simplifai’s technology leadership and growth potential Selected clients Description of service Why important? • New international clients won in Emailbot + Documentbot tough competition • GDPR/Schrems ii-compliance Emailbot + Documentbot validated • Strong customer refer
Slide 24: Contracted MRR of NOK 0.6m as of end Q2 2021, up 82%
Contracted MRR of NOK 0.6m as of end Q2 2021, up 82% from Q2 2020 MRR Development (NOK Thousand) +82% 600 (+265) • MRR growth impacted negatively by Schrems II1 which have created uncertainty related to GDPR and privacy matters 400 • Simplifai have mitigated the challenge by changing delivery method
Slide 25: H1 and Q2 2021 interim financial results
H1 and Q2 2021 interim financial results
Slide 26: Elop Group income statement
Elop Group income statement Amounts in NOK thousand Q2 2021 Q2 2020 1H 2021 1H 2020 FY 2020 • Simplifai revenues are consolidated Revenue 1,952 - 4,246 - - Other operating revenue - - - - - from Jan 18 2021 Total revenue 1,952 - 4,246 - - Cost of sales 1,767 (36) 1,958 10 145 • Employee benefit expe
Slide 27: Liquidity Elop Group
Liquidity Elop Group NOK million +14 95 95 5 90 85 9 81 80 5 0 Cash balance Q2 Grants Loan Innovasjon Norge Total available liquidity 27
Slide 28: Summary & Outlook
Summary & Outlook
Slide 29: Gradual shift towards contracted recurring software revenue
Gradual shift towards contracted recurring software revenue Elop revenue expected to pick up with software and scanner roll-out Revenue, MNOK 2025 TARGETS 1 000+ >1 000M NOK Revenue Simplifai >40% EBIT margin Elop Technology >75% ARR 2020 2021 2022 2023 2024 2025 Note: Simplifai is not reflected in
Slide 30: Summary Outlook
SUMMARY OUTLOOK Q2 • New group management team in place • Elop Technology targets to deliver the first • Insourced production (both SW and HW) Elop Insights in Q4 2021 • Successful Elop Insight field tests • Simplifai targets 3-5 x MRR at year end 2021 vs year end 2020 • Strategic industrial partner
Slide 31: Appendix
“Appendix _
Slide 32: Elop AS Group consolidated balance sheet
Elop AS Group consolidated balance sheet Amounts in NOK thousand Note 1H 2021 1H 2020 FY 2020 Amounts in NOK thousand Note 1H 2021 1H 2020 FY 2020 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Goodwill 5,6 121,245 - - Share capital 4,650 2,683 3,515 Intangible assets 5 83,781 17,377 28,690
Slide 33: Cashflow statement
Cashflow statement Amounts in NOK thousand 2Q 2021 2Q 2020 1H 2021 1H 2020 FY 2020 Cash flows from operating activities Profit/(loss) before income tax (18,714) (6,192) (39,341) (13,518) (31,217) Adjustments for Depreciation and amortization 3,458 - 5,430 - 420 Change in trade and other receivables
Slide 34: Segment financial summary
Segment financial summary Segments - H1 2021 Segments Q1 2021 Elop Elop Amounts in NOK thousand Simplifai Elimination Sum Amounts in NOK thousand Simplifai Elimination Sum Technology Technology Total revenue 1,652 7,269 -4,675 4,246 Total revenue - 2,874 -580 2,294 Total operating expenses 30,967 11
Slide 35: 20 largest shareholders as of 05.09.2021
20 largest shareholders as of 05.09.2021 INVESTOR NUMBER OF SHARES % OF TOP 20 % OF TOTAL • At 30th of June; 600,000 MELANDSØ INVEST AS 12771081 19.54% 13.73% outstanding warrants and GIMLE INVEST AS 7497665 11.47% 8.06% 6,200,000 outstanding options. SOGN INVEST AS 5186025 7.94% 5.58% • Average str
Slide 36: Elop moving in the right direction
Elop moving in the right direction Introducing new technology to create a new Recognition high growth market х Exponential sales growth Success stories х International NEW ENTRIES expansion ONGOING New industries х Global distribution COMPLETED Credibility New geographical markets TO BE REACHED
Slide 37: Point scanners for the concrete market have their limitations
Point scanners for the concrete market have their limitations The ultrasound scanners on the market have some limitations today… …which leads to low utilization and data generation • Point scanners - a still image needs to be • Scanners not being used to cover larger taken every 10cm areas • Not pra
Slide 38: Maintenance is a growing concern globally
Maintenance is a growing concern globally Maintenance of critical concrete infrastructure is a growing concern, with aging structures and prolonged neglect driving up maintenance costs Age structure of highway Significant backlog of Maintenance spend has historically bridges in Germany bridge mainte
Slide 39: Our goals
Our goals 1 Establish Elop technology as an industry standard Build the next generation structural health monitoring system 1 Establish Simplifai as a leading global software vendor within intelligent business process automation 39
Slide 40: Overall strategy: Become a fully integrated technology provider
Overall strategy: Become a fully integrated technology provider Elop Insight Elop Asset Management System Structural Live data feed Asset Hardware Remote access health on site management monitoring 40
Slide 41: Transforming data into unique insight
Transforming data into unique insight Asset Management & Scanner & Dashboard Monitoring System (AMS) Collect, connect, visualise Structure, analyse, act Keeping infrastructures safe, sustainable and financially viable 41
Slide 42: From reactive to proactive maintenance
From reactive to proactive maintenance By coupling data from many sources with • Monitor infrastructure health our scalable cloud-based system, we aim to give asset owners full digital overview of • Conduct predictive and preventative their structures allowing them to move from maintenance a reactiv
Slide 43: Look into the future with a digital collaboration tool
Look into the future with a digital collaboration tool Elop Asset Management System enables all stakeholders to look into the future maintaining and safeguarding bridges, dams, railroad infrastructure and other large infrastructures.
Slide 44: Simplifai: provides Elop with a large addressable secondary market
Simplifai: provides Elop with a large addressable secondary market… Global Natural Language Processing market1 • Natural language processing is necessary in several business processes which utilize e.g., the following +20% CAGR tools: Portals, Email, Customer service software, USD 35bn Docs, CRM • H
Slide 45: Digital Employees ensures end-to-end automation
Digital Employees ensures end-to-end automation Interact Interpret content and intent Decide Act AI Chatbot Documentbot Decision Engine API & RPA Emailbot
Slide 46: Simplifai's unique position facilitates early adoption of AI technology
Simplifai's unique position facilitates early adoption of AI technology 6-month payback, 150% ROI first year Low Low-cost implementation Simplifai Efficient tool for processing Digital structured information. Tool Employee High automation grade built for technical users Easy to use implementat