Arribatec Group ASA · OSL:ARR
Arribatec Group ASA — Q2 2021 Earnings Presentation
34 slides from Arribatec Group ASA's earnings presentation, Aug 26, 2021
Slide 1: Q2 – 2021 presentation
Arribatec. \ Q2 - 2021 presentation . o\
Slide 2: Agenda
1 Introduction 2 Q2 Financial performance | Agenda ^ 3 Organization & Integration 4 Appendixes 2
Slide 3: Highlights Q2
\ Highlights Q2 ^ • Revenue at NOK 104.4m - solid growth of 241% y/y – organic growth of 36% • Recurring revenue of NOK 37.8m is NOK 32.8m higher than Q2 2020 • Growth of 671% compared to last year and 22% higher than Q1-2021 • Strong growth despite delay in recognition according to underlying contr
Slide 4: Q2 - large contracts won
\ Q2 - large contracts won ^ MSC Cruises Tieto EVRY Strategic deal for Strategic deal for Arribatec Marine Arribatec EA-BPM Value € 2,7 million + Value + NOK 17 million services SKANSKA EXPLEO Strategic deal for Strategic deal for Arribatec BI & Analytics Business Services Value several million NOK
Slide 5: Q2 - new customers & contracts
| Q2 - new customers & contracts ^ 5
Slide 6: Integration & Focus
| Integration & Focus ^ Strong focus on integration of the acquired companies, and intensified recruitment to deliver on backlog! Integration Products Rebranding Expansion • New Global • New ARM Version • Bringing the entire • Established subsidiaries: Organization • AI Voice Beta group together • F
Slide 7: Snapshot Financials - Q2-21 vs Q2-20
| Snapshot Financials - Q2-21 vs Q2-20 ^ Revenue Adj. EBITDA Recurring Revenue +241% -27% +671% NOK 104.4m vs 30.6m NOK 2.2m vs 3.0m NOK 37.8m vs 4,9m +22% growth from Q1 2021 7 36% Organic growth in “Old Arribatec”
Slide 8: Revenue share & Growth - Q2-21 vs Q2-20
| Revenue share & Growth - Q2-21 vs Q2-20 ^ By geography: Share & Growth Share & Growth Share & Growth 72m / 306% 25m / 159% 7m/ 130% 8
Slide 9: Q2 Performance
| Q2 Performance ^ 60 By Region By Service Old vs. Acquired 120 120 Revenue 120 50 104.4 7,4 6,8 100 100 100 40 +241% y/y 25,4 80 80 37,8 80 +36% Organic 62,9 30 60 60 60 40 20 40 30.6 40 71,6 1,5 3,2 59,8 4,9 20 9,8 20 10 20 41,5 24,2 30,6 17,6 0 0 0 Q2-20 0 Q2-21 Q2-20 Q2-21 Q2-20 Q2-21 Norway Eur
Slide 10: Balance sheet development
| Balance sheet development ^ Equity & Liabillities Assets 60 500 Current 500 100 Goodwill Non-current Intangibles Equity Other non-current 30/6-2021 50 188 Trade receivables 400 400 Other current assets Total assets NOK 519m 70 78 Cash 40 Total equity NOK 349m up 33m compared to end of 17 2020 300
Slide 11: Cash flow
| Cash flow ^ 60 Net change in AP and AR had a negative impact of 50 NOK 10.3m Investment of 6m pertains to capitalized software 40 development cost Financing CF represent 30 COVID bank loan in Italy without covenants and with state guarantees 20 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 11
Slide 12: Equity Development
| Equity Development ^ 60 Total equity at the end of Q2 50 was NOK 349m, a reduction of NOK 8m compared to end of Q1. 40 Equity ratio of 67% at the 30 end of the reporting period 20 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 12
Slide 13: 2. Organization & Integration
| 2. Organization & Integration ^ Integration of the acquired companies 13
Slide 14: Arribatec Group
| Arribatec Group ^ 350+ Employees 26 Offices worldwide 2020 2021 900+ Clients in 25 countries Due diligence in progress Due diligence in progress 14
Slide 15: How we have organized our business
| How we have organized our business ^ Business Cloud EA-BPM Marine Hospitality Services Services/Solutions Services/Solutions Services/Solutions Services/Solutions Services/Solutions SolaaS/SaaS Deployment of SolaaS/SaaS SolaaS/SaaS SolaaS/SaaS SolaaS/SaaS Enterprise Architecture ERP Implementation
Slide 16: Our business proposition
| Our business proposition ^ erp cloud Delivered as SolaaS …at a fixed hospitality monthly fee solution as a service bi & analytics with no up-front investment software development enterprise management 16 marine
Slide 17: Global presence
| Global presence ^ Norway | Oslo | Stavanger | Kristiansand | Bergen | Hamar | Sandefjord | Lillehammer Sweden | Stockholm | Gothenburg Denmark | Copenhagen UK | London | Leicester | Manchester Italy | Milan | Rapallo | Pontinia Spain | Madrid | Granada | Barcelona | San Sebastian Belgium | Vossela
Slide 18: Business Areas
| Business Areas ^ 18
Slide 19: Business Services
| Business Services ^ • 36% Organic growth compared to same quarter last year • Strong growth in Europe and US • Resource utilization cross boarder • Continued investment in methodology to deliver SolaaS efficiently • ERP as the principal solution and “hub” for One Solution • Strengthen partnership
Slide 20: Cloud
| Cloud ^ • Strong growth including ARR • Extended Private Cloud capacity and “brought” Arribatec into our own Cloud infrastructure • In process of moving many customers of other group companies from 3rd party Cloud providers • Platform ready to deliver Cloud services throughout the Arribatec Group
Slide 21: EA & BPM
| EA & BPM* ^ • Highly competent and committed organization • Very strong growth with several strategic wins during the quarter • Large back-log and more manpower required – hired 18 new this year 40% growth • Transferring Cloud solutions from 3rd party providers to Arribatec Cloud • Plans initiated
Slide 22: Marine
| Marine ^ • Pipeline increased with € 6 million over the last 6 months • Several strategic contracts signed serving as a solid platform to take a strong position in the maritime sector • Several pilot and proof-of concept project delivered, which we expect will transform into new large contracts co
Slide 23: InfoSHIP – Performance
| InfoSHIP – Performance ^ • Control Room Cyprus • Own & Customer specific • Route planning • Fuel Optimization • Environmentally friendly • Signed strategically deals • Many additional in process 23
Slide 24: Hospitality
| Hospitality ^ • Promising pipeline – first contracts signed • Webinar in Singapore and response 61 hotels/25 000 rooms • LOI signed with Drivers Home – SolaaS self-service hotels throughout Scandinavia • Business Development agreement signed with AHA Hospitality in Dubai • New ISO standards will r
Slide 25: EXPO 2020 DUBAI
| EXPO 2020 DUBAI ^ - Official Participant – under the umbrella of Innovation Norway - Certify to control the Cleanliness process @ the Norwegian Pavilion - Platform to develop the GCC market for Arribatec Group - Starting October 1st 25
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Slide 27: M&A Strategy
| M&A Strategy ^ All acquisitors must be accretive to Arribatec’s valuation Solutions & Services Geography Technology Competence Enhance our presence in our Increase our geographical New and complementary … and always looking for verticals footprint solutions smart people Contribute to deliver on On
Slide 28: Summing up Q2
| Summing up Q2 ^ • Q2 - Continued solid growth in revenue 241% y/y – organic growth of 36% • Q2 – 671% y/y growth in RR and 22% higher than Q1 • Q2 - EBITDA of NOK 1.8 m – lower then Q1 due to strong focus on growth, integration and organizational alignment • Q3 - Closing acquisitions, Integra & Gr
Slide 29: Appendix
| Appendix ^ Financial Figures 29
Slide 30: Profit & Loss
30 \ Profit & Loss . For the quarter end YTD. 30 June 30 June 30 June 30 June Full year NOK thousand Note 2021 2020 2021 2020 2020 Revenue 3 104 427 30 637 203.509 66 482 154 024 Materials, software and services (21992) (1959) (44720) (5772) (17.609) Gross profit 82.435 28 678 158 879 60 710 136 415
Slide 31: Balance Sheet
\ Balance Sheet . For the quarter end For the quaiter end 30 June 31 Dec 30 June Dec NOK thousand Note 2021 2020 NOK thousand Note 2021 2020 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Property, Piant and equipment 5178 9258 Paid in capital Right-of-use asseis 6 18.796 20768 Issued capit
Slide 32: Cash flow
32 \ Cash flow . For the quarter end yo Bovine 30 June Touine 90 June Full year NOK thousand Noto 2021 2020 2021 2020 2020 Operating activities Profit/(Loss) before tax: (6622) 1680 (4047) 4705 (55 620) ‘Taxes paid 0 O (982) oO (1196) -Adystments for: -Caldlated cost rom reverse takeover ° ° ° ° 508
Slide 33: Equity
\ E q U | ty e Equity related to the shareholders of the parent company Restricted ‘Share Treasury Other paid Exchange Retained earnings and Total NOK thousand. capital__shares_in capital_differences___ profit for the year Equity, ‘Closing balance on 31 December 2019 2589 “32 76 286 (62) 3.291 21802
Slide 34: Q2 Reporting Arribatec Group ASA
| Q2 Reporting Arribatec Group ASA ^ Per Ronny Stav – Group CEO Geir Johansen – Group CFO Oslo 26 August 2021 34