Smartcraft Group Ab (publ) · OMXSTO:SMCRT
Smartcraft Group Ab (publ) — Q4 2022 Earnings Presentation
31 slides from Smartcraft Group Ab (publ)'s earnings presentation, Feb 15, 2023
Slide 1: Q4 2022 report
Q4 2022 report SmartCraft ASA | 15 February 2023 Our vision is to become the leading provider of specialized digital solutions for construction companies in North-western Europe
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 A brief intro to SmartCraft Q4 operational and financial highlights Solid market fundamentals Continued operational improvements Summary and Q&A Financial Hearings: [email protected] 3
Slide 4: Our solutions provide competitive edge
Our solutions People provide competitive edge Documentation for our customers Material Ensure digital flow of information between people Store and process all data in one place accessible for all Data in the field is captured with mobile Apps Total overview of documentation Revenue and cost control
Slide 5: Large and underpenetrated market
Large and underpenetrated NOK 10bn+ market with double-digit annual growth market Among the least digitized industries Long tail of service, maintenance & ~260,000 upgrade construction companies Shortage of skilled workers Low More building regulations and digital documentation penetration Increased
Slide 6: Leading position in the Nordics
Leading position in the Nordics Strong local presence in key markets Finland 15 % Constantly gaining markets share Sweden 43 % 12.000 customers 33% growth post IPO 120.000 users Norway 26% growth since IPO 42 % ~ 200 Employees Geographical share of revenue 6
Slide 7: Q4 2022 highlights
Q4 2022 highlights Continued strong growth, high margins and low churn MNOK 318 41% 6% Annual Recurring Adjusted EBITDA Churn Revenue margin consistently low +19% +2% points * * Like for like comparison 7
Slide 8: 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% 96.3% 47,1 % +18.9% 40,9 % 40,4 % 40,8 % 90.6 38,8 % 36,7 % 36,8 % 36,2 % 8.9% Acquired 8.1% 76.2 ELINN Acquired Acquired Kvalitetskontroll El
Slide 9: Solid financial position and strong cash flow
Solid financial position and strong cash flow Balance sheet, December 31, 2022 Operating cash flow mNOK mNOK 115,6 106,5 69.9 98,5 191.3 97.4 37.3 42.2 17.5 727.8 764.4 Assets Equity and liabilities FY'20 FY'21 FY'22 Cash and cash equivalents Deferred revenue Current assets Current liabilities Non-c
Slide 10: High growth in recurring revenue as basis for success
ARR growth, mNOK High growth in recurring revenue as basis for success M&A 27,9 24,7 19% growth in ARR Organic 5,8 17% organic growth from new sales and upsales growth 8,8 Acquisition of Elverdi (June 2022) and ELinn (October 2022) 17,6 2,8 12,8 8,6 8,8 10,6 7,8 8,3 Positive returns from earlier str
Slide 11: Reporting segments aligned with organizational structure
Reporting segments aligned with organizational structure NOK 39.7 million NOK 38.0 million NOK 12.9 million Q4’22 18.0 % organic growth 15.4 % organic growth 21.9 % organic growth NOK 18.5 million NOK 18.9 million NOK 3.9 million Q4’22 46.7 % adj. EBITDA margin 49.7 % adj. EBITDA margin 30.1 % adj.
Slide 12: Solid track record since IPO expected to continue
Solid track record since IPO expected to continue Delivering consistently on guided organic growth of 15-20% Solid revenue growth last years Medium-term financial targets Organic growth 15 – 20% 90.6 CAGR +23.6% 81.6 82.4 79.1 76.2 72.2 63.9 59.3 bolt on M&A Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22
Slide 13: Solid market fundamentals
Solid marked fundamentals
Slide 14: Highly effective go-to market strategy
Highly effective go-to market strategy Highly efficient Best in class sales engine with broad reach and highly effective lead conversion sales process2 Customer acquisition cost LTV/CAC 23x Sales Meetings Lead processing Campaigns Branding Lifetime customer value 24 300 000 640 000 61% Media views1
Slide 15: Solutions to support customers in more challenging times
Solutions to support customers in more challenging times Cost control and improved efficiency Improved profitability Visualizing health status of ongoing projects Reduced material cost and waste New state of art calculation tool Currently in pilot No missed-out revenues Overview of ongoing projects
Slide 16: Still solid demand for SmartCraft solutions
Still solid demand for SmartCraft solutions Despite slowdown in new building projects Our customers operate mainly in the SME segment Largest customer group, plumbers and electricians, experiencing great demand due to energy saving intiatives Strong pipeline Great opportunities to increase NRR throu
Slide 17: No sign of market decline from existing customer base of SME general contractors
No sign of market decline from existing customer base of SME general contractors Analysis Average number of projects created per customer Analysis of existing Bygglet customers in the SME segment mainly service contractors Large representative customer base Jan Feb Mar Apr Mai Jun Jul Aug Sep Okt No
Slide 18: Specialized contractors have a consistently high activity level
Specialized contractors have a consistently high activity level Unique users pr month in solution A Active customers pr month in solution B 1300 1250 1200 1150 1100 1050 1000 950 Jan Feb Mar Apr Mai Jun Jul Aug Sep Okt Nov Des Jan Feb Mar Apr Mai Jun Jul Aug Sep Okt Nov Des Jan 2021 2022 2023 2022 2
Slide 19: Improved competitive position in 2022
Improved competitive position in 2022 Prices in 2023 will be adjusted to reflect inflationary environment SaaS model with 96% recurring revenue Low pricepoint at NOK 7 pr user pr day Relative competitiveness improved Moderate annual increases early in the year No further price increases as inflation
Slide 20: Leading position in a less cyclical market segment
Leading position in a less cyclical market segment 20
Slide 21: Continued operational improvements
Continued operational improvements
Slide 22: Reduced operational risk since the IPO
Reduced operational risk since the IPO Very low single customer dependency: Increased 0.01% Continued low customers churn at 6% by 33% (average customer ARR / total ARR) Very low take rate: Increased 0.2% Increased sales recurring revenue conversion from from 93% to 96% 55% to 61% of customer’s reve
Slide 23: Scalable business model provides strong cash contribution per customer
Scalable business model provides strong cash contribution per customer 90% incremental cash contribution per customer after initial acquisition cost ARPC NOK 29k CAC payback 1 year 23
Slide 24: Initiatives to further improve scalability
Initiatives to further improve scalability Country Sales automation One marketing team management & self service Scalable cloud Customer centric environment business model 24
Slide 25: Well positioned for value enhancing M&A opportunities
Well positioned for value enhancing M&A opportunities 9 acquisitions last years Dialogue with multiple potential Strong Y/Y performance in solutions acquired in 2021 targets in Nordics and new geographies +29.0% Well defined selection criteria Capacity for 1-3 acquisition pr year Well functional int
Slide 26: Unique add-on solutions create opportunities for synergies and cross-sell
Unique add-on solutions create opportunities for synergies and cross-sell Leading quality and safety solution Unique sales26 tool for electricians Great field tool for electricians
Slide 27: Strong balance sheet to support both organic and M&A growth strategies
Strong balance sheet to support both organic and M&A growth strategies Dividend and buybacks Acquisitions No short-term intention to Targeted disciplined approach to pay dividend industry consolidation Focus on growth investments Share buy-back program for up Clear plan for disciplined and sharehold
Slide 28: Q&A
We are on track for continued Q&A profitable growth! Continue to deliver on strategy Reduced operational risk Consistent strong operational cash flow Make sure to follow us for the latest news! smartcraft.com Linkedin Facebook YouTube
Slide 29: Appendix
Appendix 29
Slide 30: High quality international shareholder base
High quality international shareholder base Key facts Shareholder ID: Top 20 shareholders % of total Management and Board ~10% Listed Oslo Børs, Norway Valedo Partners III AB 39,70 % ownership Capital Research Global Investors 7,80 % Market cap B. Ulstein AS 6,60 % Nordic and international BNOK 3.5
Slide 31: SmartCraft
|g SmartCraft BETTER DIGITAL TOOLS