Admicom Oyj:Investor presentation
October 4th 2019
This presentation is not a Company Description described in the Securities Markets Act (746/2012). This presentation is solely for information purposes and is not intended to form part of or be the basis of any decision making by its recipients. The information contained herein shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Several risks are associated with investing in the company’s shares, many of which can be significant and are related to the operating environment and nature of company. If an investor is considering investing in the company’s shares, it is advisable that he or she is familiarized with the Company Description published on the company’s website at www.admicom.fi/sijoittajille before making any investment decision.
CONTENTS
Vision and strategy
Reasons why customers choose us
Admicom in brief
Markets and competition
Financial information
Positive track in Nasdaq First North
CONTENTS
Our vision is to be a pioneer in developing ERP solutions for small and medium-sized companies.
Services Agriculture, forestryand fishing
Manufacturing Construction
index
Productivity in Finland’sconstruction industry hasbeen at the same level for 40 years.
VISIONVISION AND STRATEGY (1/2)
VISION AND STRATEGY (2/2)
Most advanced ERP (Adminet)• Cloud service• Highly automated• Most extensive solution for customer industries• Constant development and regular updates
Superior services• Safe maintenance and back ups, zero downtime• Best industry expertise• Efficiency and reliability• Packaged services
Admicom offers the most advanced ERP and superior services to selected target groups.
STRATEGYVISION AND STRATEGY (2/2)
Adminet boosts operational efficiency by automating manual processesand complex integrations. Information flow is seamless from productionsite to office.
1. STREAMLINING CUSTOMER BUSINESS
Admicom boosts digitalization in its customer industries by offering the best practices in the field. Strong focus to specific customer segmentshas led to superior solutions.
2. PIONEER IN SOFTWARE DEVELOPMENT
REASONS WHY CUSTOMERS CHOOSE US (1/4)
Admicom offers the most extensive software solution to construction, building services engineering and manufacturing companies. No outside-Adminet integrations are necessary.
3. THE MOST COMPREHENSIVE SOLUTION
Customers can use Adminet in an internet browser anytime and anywhere. Our ERP is a modular system and customers can choose the most beneficial application combination.
4. PURE CLOUD ERP
Thanks to advanced automation, unique project revenue recognition logic and all in one solution, our ERP is able to produce real time information and the right metrics for business management.
5. REAL TIME INFORMATION
REASONS WHY CUSTOMERS CHOOSE US (2/4)
SERVICES
ACCOUNTING SERVICES CUSTOMER SERVICESOFTWARE SERVICES
We help our customers manage all their functions with one automated cloud service.
We offer reliable, industry-specific and 100% paper-free accounting and payroll services.
We take care of our customers all the way from system implementation and support to business development.
REASONS WHY CUSTOMERS CHOOSE US (3/4)
”Adminet has been one of the prerequisites for our growth to be possible at all.”Hannu Kauppi, CEO, HSK Sähkö Oy
”Currently we have fewer administrative employeesthan before, even though our revenue grew almost4 million euros last year.”Malik Bentaieb, CEO, LTU Group Oy
”Adminet helps us by making our operations more efficient, saving time and providing us a lot of information to keep track of the company’s finances.”Jukka Pietilä, CEO, IntLog Oy
REASONS WHY CUSTOMERS CHOOSE US (4/4)
100 % Finnish software company
Founded in Jyväskylä in 2004
More than 17 000 active Adminet users
Close to 90 % of revenue is recurring monthlyinvoicing
Over 130 employees in Jyväskylä, Vantaa, Tampere and Oulu
ADMICOM IN BRIEF (1/3)
ADMICOM IN BRIEF (2/3)
Development
Building Engineering Services
Building Engineering ServicesConstruction
Building Engineering ServicesConstructionProductionLite
2004 - 2010
2010 – 2013+ 61 % / year
2013 – 2017+ 56 % / year
2017 – 2020+ 40 % / year
Goal : > 30 % / year
2020 – 2025Strategic work in progress
0,6 11,7
2,53,5
4,75,9
8,1
11,5
-0,2 0 0,1 0,2 0,6 1,11,9
2,9
4,8
2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenue M€ EBITDA M€
» Admicom is the market leader in its core target group; building services engineering. Admicom has strong growth in construction segment and significant potential in its most recent customer segment of manufacturing industry.
New sales by customer segments (2018)
» Approximately 87 % of Admicom’s revenue in 2018 consisted of recurring invoicing. About 67 % of the revenue came from SaaS services, 20 % from accounting services, 8 % from education and consulting services and 5 % from other services.
Revenue by services (2018)
Construction; 48%Building Services Engineering; 39%
Manufacturing; 13%
SaaS; 67%
Accounting Services; 20%
Education and Consulting Services; 8%
Other; 5%
ADMICOM IN BRIEF (3/3)
ERP MARKETS
» Key drivers of growth and development in the ERP markets are the digitalization of financial administration and the transition from laborious ERP projects to faster and more agile solutions.
» SaaS business is expected to grow to € 57 billion by 2018. The traditional license software segment will shrink by 1% per annum.
MARKETS AND COMPETITION (1/3)
CORE MARKETSMARKETS AND COMPETITION (2/3)
COMPETITION
» Admicom’s main competitors offer industry-specific software for the same targetgroups.
» The most significant competitors are:
» Pajadata and Ecom in the building servicesengineering target group
» EVRY Jydacom and Lemonsoft in theconstruction target group
» E.g. Oscar Software, Visma and CGI in themanufacturing industry target group
» Currently, there are no other players in the market who can offer as extensive and industry-specific solution for the same target groups.
* A cloud in the picture refers to a 100 % cloud service and a rectangle refers to a traditional software. Some traditional software vendors also offer only partial cloud services.
Admicom’s competition*
MARKETS AND COMPETITION (3/3)
KEY FIGURES Q3/2019
The Q3/2019 figures are unaudited and in FAS format.
FINANCIAL INFORMATION (1/4)
Admicom Oyj 1-9/2019 1-9/2018 Change-% 1-12/2018
Turnover, 1 000 € 11 544 8 355 38 % 11 456
EBITDA, 1 000 € 5 478 3 657 49 % 4 796
% of revenue 47 % 44 % 42 %
Operating profit, 1 000 € 5 052 3 275 54 % 4 291
% of revenue 44 % 39 % 37 %
Profit for the period, 1 000 € 4 040 2 436 66 % 3 252
Employees at the end of period 133 110 113
Earnings per share, EPS € 0,84 0,53 0,71
* Admicom Oyj (pro forma)
1 000 EUR 1-12/2018 1-12/2017*
TURNOVER 11 456 8 094Other operating income 13 11Variable costs -437 -352Staff expenses -4 734 -3 676Depreciation and reduction in value -505 -439Other fixed operating costs -1 502 -1 132
OPERATING PROFIT (-LOSS) 4 291 2 507Financial income and expenses
Other interest income and other financial income 15 24Interest and other financial expenses -230 -114
PROFIT (LOSS) BEFORE APPROPRIATIONS AND TAXES 4 076 2 417
Income taxes -823 -489PROFIT (LOSS) OF THE FINANCIAL YEAR 3 252 1 928
FINANCIAL INFORMATION (2/4) PROFIT AND LOSS STATEMENT 2018
* Admicom Oyj (pro forma)
1 000 EUR 12/2018 12/2017*ASSETS
NON-CURRENT ASSETSIntangible assets
Capitalized development costs 760 951Intangible rights 372 533Other intangible assets 0 3Company goodwill 280 356
Tangible assetsMachinery and equipment 140 106
NON-CURRENT ASSETS IN TOTAL 1 552 1 948CURRENT ASSETSInventory
Raw materials and consumables 15 10Short-term receivables
Accounts receivables 1 285 275Other receivables 46 17Prepayments and accrued income 103 93
Cash at bank 10 775 1 888CURRENT ASSETS IN TOTAL 12 224 2 284ASSETS IN TOTAL 13 776 4 232
1 000 EUR 12/2018 12/2017*EQUITY AND LIABILITIES
CAPITAL AND RESERVESShare capital 106 106Other reserves 7 665 2 676Retained earnings / loss 317 -1 608Profit / loss of the financial year 3 252 1 928
CAPITAL AND RESERVES IN TOTAL 11 341 3 103
CREDITORSShort-term creditors
Loans from credit institutionsAdvances receivedTrade creditors 132 115Other creditors 528 368Accruals and deferred income 1 775 646
CREDITORS IN TOTAL 2 435 1 129
EQUITY AND LIABILITIES IN TOTAL 13 776 4 232
BALANCE SHEET 2018FINANCIAL INFORMATION (3/4)
» Admicom's goal is to grow by an average of over 30% in 2019-2020 so that the company's profitability (EBITDA) will remain between 35-45 % in 2019-2020.
» We estimate a growth of 34-37 % for year 2019 with EBITDA being 43-46 %.
» Admicom aims to distribute more than half of its earnings as dividends to its owners, without risking the growth strategy or other financial targets defined in the strategy.
Dividend per share > 50% of profits
Revenue growth2019-2020
> 30%
EBITDA 201943-46%
FINANCIAL GOALSFINANCIAL INFORMATION (4/4)
MEDIA COVERAGEPOSITIVE TRACK IN NASDAQ FIRST NORTH (1/3)
First day of exchange, Nasdaq TowerFebruary 9th 2018
Admicom is the Tivi-company of the year and oneof the most profitable ICT companies in Finland.
(Finnish IT publication tivi.fi, 2018)
In six months Admicom has nearly doubled its value. Notall newcomers in Nasdaq Helsinki are able to do that.
(Finnish financial publication Talouselämä, 2018)
FASTEST FINANCIAL REPORTING
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Full year results announcements 2019 in Nasdaq Helsinki and First North
WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 WEEK 6 WEEK 7 WEEK 8 WEEK 9 WEEK 10 WEEK 11 WEEK 12 WEEK 13
Fastest auditedfinancial reportingin 2018: Kone Oyj
25.1.2018
11.1.2019”Admicom’s record-breakingreporting speed is unmatched – noteven many unlisted companies areable to do the same.”
POSITIVE TRACK IN NASDAQ FIRST NORTH (2/3)
Year Exchange, shares Value in total, € Highest, € Lowest, € Average, € Latest in 2018, €2018 572 018 9 302 073 24,74 10,00 16,58 20,602019YTD 52,80 20,60
SHARE PRICE DEVELOPMENTPOSITIVE TRACK IN NASDAQ FIRST NORTH (3/3)
SaaS ERP for small and medium sized businesses