Trifork Group AG · OMXCOP:TRIFOR
Trifork — Investor Day (May 2024)
164 slides from Trifork's investor day presentation, May 29, 2024
Slide 1: Building a Global Pioneering Technology Company
29 MAY 2024 · COPENHAGEN · CAPITAL MARKETS DAY Building a Global Pioneering Technology Company
Slide 2: Disclaimer: Important Information
DISCLAIMER ・ IMPORTANT INFORMATION This presentation contains forward-looking statements including, but not limited to, statements and expectations concerning expected or projected earnings, strategies, trends and developments. Forward-looking statements are statements (other than statements of hist
Slide 3: Agenda
AGENDA 1 Reflecting on our growth journey & perfecting “The Trifork Way” 2 Becoming an even closer tech partner BREAK · TRY THE APPLE VISION PRO 3 Staying ahead of the curve 4 Scaling across borders BREAK · TRY THE APPLE VISION PRO 5 Investing in our future 6 Financial and ESG review 7 Q&A MEET TRIF
Slide 4: Reflecting on our growth journey
28 YEARS SINCE THE BEGINNING & THREE YEARS SINCE OUR IPO Reflecting on our growth journey Jørn Larsen FOUNDER & GROUP CEO 4
Slide 5: Before we dive into the bigger picture…
NEWS SINCE Q1 REPORT Before we dive into the bigger picture… Persistently slow business environment in 2024 with extended decision-making cycles amongst both private and public customers - Expectation of increased activity from Danish public customers in 2024 - concerning opportunities relevant for
Slide 6: Before we dive into the bigger picture…
NEWS SINCE Q1 REPORT Before we dive into the bigger picture… M&A activities in May: - Announced acquisition of Spantree Technology Group LLC in the US - Took over activities in Marstrand Innovation A/S in Denmark 6
Slide 7: Pioneering technology partner
WE ARE A Pioneering technology partner We operate at the forefront of innovation and are often among the first to explore new technologies and methods. Trifork’s business model is about working closely with customers, not just as a service provider, but as a long-term technology partner invested in
Slide 8: We solve key challenges for the enterprise and public
TRIFORK GROUP We solve key challenges for the enterprise and public Challenges Data Increasing Regulatory Sustainability Rapid Technological Change Management & Cybersecurity Compliance Goals Analysis Threats Solutions Expertise & Scalability & Cost Efficiency Risk Management Urgent Action Experienc
Slide 9: Building an edge before widespread adoption
EXAMPLES OF OUR CAPABILITIES VS CUSTOMERS AND COMPETITORS Building an edge before widespread adoption ENTERPRISE MOBILITY DIGITAL TWIN HIGHER COMPETITION VISION AI LOWER COMPETITION SPATIAL COMPUTING ENTERPRISE ADOPTION New tech emerges 9
Slide 10: Our business areas are exposed to secular growth trends
VERTICAL BUSINESS AREAS Our business areas are exposed to secular growth trends Digital Health 12.0% FinTech 12.2% Smart Building 3.5% We are committed to making life better for We design and build user-friendly digital A digital core is necessary for sustainable patients and healthcare workers whil
Slide 11: Our business areas are exposed to secular growth trends
HORIZONTAL BUSINESS AREAS Our business areas are exposed to secular growth trends Smart Enterprise 46.2% Cyber Protection 6.2% Cloud Operations 16.4% We facilitate revolutionary user experiences, We advise, architect, monitor, alert, and Application operations is business continuity. cost savings, a
Slide 12: Five core building blocks to reach our new targets
FIVE CORE BUILDING BLOCKS TO REACH OUR NEW TARGETS Perfect “The Trifork Way” Organic expansion Strategic collaborations and acquisitions - Promote a learning environment - Growing our business units organically for employees - Acquiring companies in Europe and North - Internationalize selected solut
Slide 13: We met four out of five mid-term targets from the IPO
PREVIOUS MID-TERM TARGETS We met four out of five mid-term targets from the IPO Mid-term targets set at May 2021 IPO 2020-2023 Comment (UNCHANGED UNTIL CMD 2024) Group total Purposely reduced our M&A activity 15-25% CAGR 21.7% CAGR in 2022-23 due to high valuations revenue growth Group organic 10-15
Slide 14: Medium term, we expect organic revenue CAGR of 10-15%
UPDATED MID-TERM TARGETS Medium term, we expect organic revenue CAGR of 10-15% 20% 19% 9% 5-10% 10-15% 10-15% EURm ILLUSTRATIVE Organic revenue Revenue growth CAGR 2020-2023: 17.4% 202m CAGR 2017-2023: 21.7% CAGR 2007-2023: 22.6% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 15: Adding acquisitions, we expect to grow 15-25% mid-term
UPDATED MID-TERM TARGETS Adding acquisitions, we expect to grow 15-25% mid-term 37% 20% 12% 6-11% 15-25% 15-25% EURm ILLUSTRATIVE Revenue from acquisitions Organic revenue CAGR 2020-2023: 21.7% Revenue growth 220-230m CAGR 2017-2023: 21.5% 208m CAGR 2007-2023: 22.9% 2007 2008 2009 2010 2011 2012 201
Slide 16: In 2026, we target 16-20% adj. EBITDA margin in Trifork segment
UPDATED MID-TERM TARGETS In 2026, we target 16-20% adj. EBITDA margin in Trifork segment Adjusted EBITDA margin, Trifork Segment 21% 20% 19% MARKET RECOVERY 18% 17% ILLUSTRATIVE SLOW MARKET 16% 15% 2020 2021 2022 2023 2024G 2025T 2026T 16
Slide 17: In 2026, we target 10-14% Group EBIT margin
UPDATED MID-TERM TARGETS In 2026, we target 10-14% Group EBIT margin Group EBIT margin 15% 14% 13% MARKET RECOVERY 12% 11% SLOW MARKET 10% ILLUSTRATIVE 9% 8% 7% 6% 5% 2020 2021 2022 2023 2024G 2025T 2026T 17 2021 margin adjusted for deconsolidation of Dawn Health and IPO costs. The unadjusted EBIT m
Slide 18: Gearing target maintained for now
UPDATED MID-TERM TARGETS Gearing target NET INTEREST-BEARING DEBT Leverage ratio (NIBD/adj. EBITDA) maintained for now -0.6x - Net interest-bearing debt of 1.5x Group adj. EBITDA with possibility to exceed short-term -0.1x - We want to maintain a prudent balance sheet with 2.2x 0.9x 1.2x flexibility
Slide 19: Our DNA has always been about making a real impact
ESG Our DNA has always been about making a real impact ENVIRONMENT Science-based emission targets & finding greener solutions to how we operate Real-time ESG data collection from our buildings Cutting emissions through data analysis at Salling SOCIAL Creating an inspiring workplace, development and
Slide 20: Perfecting The Trifork Way
ORGANIZATION AND GO-TO-MARKET STRATEGY Perfecting The Trifork Way Jørn Larsen FOUNDER & GROUP CEO 20
Slide 21: We have to know our customers' business as well as they do
THE TRIFORK WAY We have to know our customers’ business as well as they do Inspire-Build-Run Conferences Our go-to-market model is all about Innovation & Design being a close tech partner to our customers Operate & Protect Workshop - We study work processes in factories, field, retailing, offices, e
Slide 22: Our people
OUR PEOPLE Global Gender Attracting & talent distribution retaining Total 1,275 24.5% 75.5% MEN 16.2% ** EMPLOYEES UNDERREPRESENTED * EMPLOYEE CHURN GENDERS Management 50 22.1% 77.9% MEN 39.7 AVERAGE AGE NATIONALITIES UNDERREPRESENTED* GENDERS Board of Directors – Participating in events aimed at 15
Slide 23: All about our teal organization
THE TRIFORK WAY All about our teal organization Before the split After the split Principals of teal Benefits Units split when they reach 42 Highly agile and close to people customers Decentralized decisions Entrepreneurial mindset in self-managed BUs Own P&L and HR responsibility Talent retention Ea
Slide 24: Teal organization ensures problems stay small and get solved swiftly
THE TRIFORK WAY Teal organization ensures problems stay small and get solved swiftly where they occur ESG, Legal, Marketing, Finance Business Unit Leader CCO BUL Workshops - BULs are gathered with executive management a few times a year in groups over two days - Helping each other run a BU and overc
Slide 25: Teal: People and culture at the core
THE TRIFORK WAY Teal: People and culture at the core PROS CONS Self-management Empowers employees, reduces hierarchies, and encourages Customer coordination decision-making at all levels When larger engagements require several BUs Increased agility Dependence on internal motivation BUL workshops The
Slide 26: Becoming an even closer tech partner
DIVING INTO OUR GO-TO-MARKET STRATEGY Becoming an even closer tech partner Morten Gram Julie Bork Nellegaard Nana Jensen GROUP CRO CO-CEO, DUCKWISE SVP & COO, SMART ENTERPRISE & IOT 26
Slide 27: A full-scale service provider
GO-TO-MARKET STRATEGY What is needed to What’s possible? A full-scale comply with regulations? service Is the solution efficiently operated and maintained? What does the user want? provider Is the solution properly What does the user integrated? need? Which risks are we Which experience do facing? w
Slide 28: Good starting point to grow resiliently with distributed risk
GO-TO-MARKET STRATEGY Good starting point to grow resiliently with distributed risk Countries Business units Public Admin Health Systems 15 72 Financial Services Industrial Enterprises … and more Customers in 2023 Cloud contract length Tender win rate 657 5 74% above EUR 10k revenue years avg. + one
Slide 29: Some of our customers
SOME OF OUR CUSTOMERS Doanfets salling group IiIMHP A PORSCHE COMPANY Pivotal —_—_{/swasPesr73) AP Ar PENSION STATENS IT MIGROS @® BEEKEEPER Vestas © Lufthansa bankdata 2 PEPSICO ‘FE - -Mobile- SIEMENS crunpros% EERHVERVSSTYRELSEN Bedelweiss Ss S ERICSSON Nykredit aws $ swisscom ‘)SsOSs DANISH HEALT
Slide 30: Our customer base continuously diversifies as we grow
GO-TO-MARKET STRATEGY Our customer base continuously diversifies as we grow SHARE OF GROUP REVENUE 50% 50.0% 50% 48.7% 48.4% Organic growth and M&A contributes to lower customer concentration 45% ▪︎ The customer base is well diversified, and diversifies further 40% 38.4% 36.2% 35.4% as revenue grows
Slide 31: Significant up-selling and cross-selling opportunity
TOP 20 CUSTOMERS IN 2021-2023 (ACCUMULATED) Significant up-selling and cross-selling opportunity High customer loyalty Up- and cross-selling opportunity Strategic focus on growing Run - Stable customer base in top 20 - Half of our top customers in Build become - Average Cloud contracts are 5 years c
Slide 32: Five strategic sales initiatives
GO-TO-MARKET STRATEGY Five strategic Sell to C-level sales initiatives Specialized More outbound sales efforts More services per customer geographical hubs (e.g. ride-alongs) Sell value creation, not hours 32
Slide 33: Leverage strong network of partners to get better access
GO-TO-MARKET STRATEGY Products · Platforms · Technologies Inspire · Build · Run Leverage strong network of partners to + OTHERS get better access 90,000+ enterprises in our main markets in Europe and North America 33
Slide 34: Increasing lead conversion and business impact
RIDE-ALONG Increasing lead conversion and business impact Paper-heavy QM Low forecast accuracy Manual quality control Manual Frequent manual pricing inventory counts Little trust in Manual numbers Use of old scanners inventory Suboptimal production and PC on trucks planning App is slow Forgets gate
Slide 35: Increasing lead conversion and business impact
RIDE-ALONG Increasing lead conversion and business impact Solution examples Customer outcomes - Quality control based on computer vision & AI Cost optimization - Improved efficiency and UX by mobilizing the workforce Minimize rework - Automatically collect ESG data from factory - Use AI to reduce ti
Slide 36: We believe that curiosity drives transformation
We believe that Conferences curiosity drives Operate & Protect Innovation & Design Workshop transformation We hang out with thought-leaders and experts, share knowledge and insights in order to identify new trends. Then we turn them into capabilities. This is how we’ve established ourselves as an in
Slide 37: Inspire is…
INSPIRE Operate & Protect Conferences Inspire is… Changing the world. And making a real impact through solid insights, strategic direction, and design thinking. t Innovation & Design Workshop Concept & Proof of Concept 37
Slide 38: Inspire is…
INSPIRE Operate & Protect Conferences Inspire is… Insights, which help us - discover new, valuable opportunities - define problem spaces - shape portfolios, roadmaps and backlogs t Innovation & Design Workshop Concept & Proof of Concept 38
Slide 39: Inspire is…
INSPIRE Operate & Protect Conferences Inspire is… Strategic direction by outlining a desired future and clearly communicating to others how to get there. t Innovation & Design Workshop Concept & Proof of Concept 39
Slide 40: Inspire is…
INSPIRE Operate & Protect Conferences Inspire is… Design Thinking at the intersection between tech, design and strategy, ensuring agility and enabling us to deliver great customer outcomes that drive desired business outcomes. t Innovation & Design Workshop Concept & Proof of Concept 40
Slide 41: Inspire is…
INSPIRE Operate & Protect Conferences Inspire is… Not just a methodology, but a culture fostering creativity and innovation across Trifork’s BUs, defining us as a long-term, pioneering tech partner. t Innovation & Design Workshop Concept & Proof of Concept 41
Slide 42: The impact of Inspire
INSPIRE The impact of Inspire Inspiring the future of diabetes care 42
Slide 43: Inspiring the future of diabetes care
Vi er godt på vej - men vi vil Nye veje til et godt liv - Et godt liv med diabetes - og skal gøre det endnu bedre med et kontinuerligt kerneforløb gennem hele livet og målrettede fokusforløb Inspiring the future of Kerneforløb er dit livsforløb - med særligt Diabetesbehandling i dag er på et rigtig
Slide 44: Inspiring the future of diabetes care
Vi er godt på vej - men vi vil Nye veje til et godt liv - Et godt liv med diabetes - og skal gøre det endnu bedre med et kontinuerligt kerneforløb gennem hele livet og målrettede fokusforløb Inspiring the future of Kerneforløb er dit livsforløb - med særligt Diabetesbehandling i dag er på et rigtig
Slide 45: Inspire in the coming years
Inspire in the coming years 01 FUTURE 02 FUTURE More impact for existing customers in key Expanding and growing Inspire business Trifork business areas abroad - Ride-alongs proactively generating - Ride-alongs opening doors and insights and identifying opportunities unlocking new opportunities - Inc
Slide 46: From Inspire to…
INSPIRE Operate & Protect Conferences From Inspire to… t Innovation & Design Workshop Concept & Proof of Concept 46
Slide 47: Strategic business development in Build and Run
BUILD & RUN Concept & Proof of Concept novation & Customer Product gn Workshop Development Strategic business development in Build and Run nferences Products Operate & Protect
Slide 48: Dare to build what they need
Dare to build what they need … and not just what they say they want Only 13% of enterprise tech buyers have no regrets Source: 2022 Gartner Technology Buying Behavior Study
Slide 49: Five key building blocks in business development
Five key building blocks Discover Allowing for a business Continuous life after Positioning for in business opportunities roadmap centric launch and & challenges building approach operations development Growing two-way loyalty and trust 49
Slide 50: Pioneering with our customers
Pioneering with our customers Build trust and strong relationships Be curious to understand why Solving the right problems Ask the hard questions Mind the surrounding organisation “A lot of times, people don’t know what they want until you show it to them.” 50
Slide 51: Expertise in making life easier and building engagement platforms
PIONEERING TECH PARTNER Expertise in making life easier and building engagement platforms and ecosystems From mobile to immersive intelligence, we are specialists in building rich, complex engagement experiences across enterprises and complex industries Customer and employee engagement: Commercial a
Slide 52: Land & expand with each customer
PIONEERING TECH PARTNER Healthcare Vision AI Digital Twin Land & User Experience Vision Pro expand Platform Engineering with each Arkyn customer MPI PIONEERING TECH PARTNER IoT Platforms Axon AI IT Operations OSSMO Promon Cheetah 52
Slide 53: Good foundation for mid- and long-term growth
KEY TAKEAWAY Good foundation for mid- and long-term growth - Full service provider - Strong and loyal customer base across geographies - Partnerships with global leaders in different areas - Opportunity to cross-sell more solutions, concepts, and services - Use our thought leadership and being on th
Slide 54: Break
15 minutes · Try the Apple Vision Pro Break 54
Slide 55: Staying ahead of the curve
TECHNOLOGY CAPABILITIES Staying ahead of the curve Preben Thorö GROUP CTO 55
Slide 56: Our mission statement
OUR MISSION STATEMENT We specialize in IT and AI, focusing on solving complex problems with a strong commitment to sustainability from start to finish. Our mission is to continuously push boundaries in everything we do. We work alongside our customers to create and apply cutting-edge digital solutio
Slide 57: A carpenter builds his solutions with wood and tools
USER EXPERIENCE IS EVERYTHING A carpenter builds Functionality his solutions with Data (what can I do?) wood and tools We build digital solutions with Looks Behaviour software and data (graphics) (how do I do it?) (and the right choice of hardware) What does the end user need, how should it work, wh
Slide 58: Predicting the future is difficult
Predicting the future is difficult “I think there is a world market for maybe five computers” Thomas Watson President of IBM (back in the days) 58
Slide 59: Mega trends and micro trends
MEGA TRENDS AND MICRO TRENDS We want to deliver the best user experience. Our means to do so are to a large degree Vision AI defined by the trends, mega and micro. Spatial computing Quantum technology 59
Slide 60: Why do we need R&D?
DECENTRALIZED R&D Why do we INSPIRE need R&D? Trifork Trifork R&D Segment Labs
Slide 61: Spatial computing
SPATIAL COMPUTING We have always been trapped inside the constraints of flat screens, screen sizes, keyboards, more or less creative input and output devices 61
Slide 62: What is Spatial Computing?
SPATIAL COMPUTING What is Spatial Computing? We are spatial by nature and our senses are meant to (read: have evolved to) Spatial computing is any of various work together. human–computer interaction techniques that are perceived by users as taking place in the real world, in and around their natura
Slide 63: To do true spatial computing…
SPATIAL COMPUTING To do true spatial computing… …we will have to melt our senses and perception of the world around us together. Spatial audio and video, movement and gesture tracking, orientation and focus awareness into one combined experience real time. An experience not excluding, but including
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Slide 65: Being acknowledged for the work we do
SPATIAL COMPUTING Being acknowledged for the work we do 65
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Slide 67: Ride height Front-Left/Front-Right/Rear (mm)
Ride height Front-Left/Front-Right/Rear (mm) Gpss[e2)
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Slide 69: Imagine
SPATIAL COMPUTING Imagine Vision Pro became possible with the newest Apple M2/R1 processors. Imagine where we will be when the combination is M5/R3 in a few years 69
Slide 70: We are a trusted NVIDIA partner
VISION AI We are a trusted NVIDIA partner What until recently required special sensors and/or human eyes has become possible through vision AI
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Slide 72: TRIFORK.-
TRIFORK.-
Slide 73: A new era of computing
A new era of computing Vision AI Spatial computing
Slide 74: Edge computing
PRIVACY Edge computing - Producing more data, being more online = more privacy focus - The interpretation of data is interesting - not the data itself - We consider edge reborn while most companies in the industry consider it ‘will be reborn’ New EU AI regulations Privacy not far from security 74
Slide 75: Quantum Computing
Quantum Computing 75
Slide 76: Key risk
QUANTUM COMPUTING → SECURITY Key risk Peter Shor showed in 1994 how easily quantum computers will be able to break public key encryption. Which means that if/when we manage to realise the quantum computer, encryption as we know it will fall apart Shor’s algorithm (1994) from Wikipedia 76
Slide 77: History shows that all encryption will be broken!
QUANTUM COMPUTING → SECURITY History shows that all encryption will be broken! 77
Slide 78: The real world is fundamentally quantum physics
QUANTUM COMPUTING → SUSTAINABILITY The real world is fundamentally quantum physics Trying to solve complexity with quantum physics → researching quantum principles will give (has given) us new ways of solving problems. Also problems closely related to sustainability 78
Slide 79: Sustainability
SUSTAINABILITY 79 TRIFORK.
Slide 80: Technology themes overview
Vision AI Privacy & Spatial Security computing Sustainability Quantum 80 technology
Slide 81: Well positioned for tech of the future
KEY TAKEAWAYS Well positioned for tech of the future What characterizes us: What characterises our customers: - Decentralized R&D through BUs and Labs - Core competences not software, centralized software R&D → difficult innovation and creativity in software - Cutting edge partners - Implementing GD
Slide 82: Scaling across borders
GROWTH THROUGH SOLUTIONS AND PRODUCTS Scaling across borders Jørn Larsen Karan Yadav CEO NORTH AMERICA FOUNDER & GROUP CEO SINCE JUNE 2023 82
Slide 83: Danish innovation leader = global innovation leader
A STRONG BASE IN DENMARK Danish innovation leader = global innovation leader - Second most digital public sector in the world* and fourth most digital competitiveness when including enterprises** - 68% of Group revenue in 2023 - Room to grow as one of the bigger players with market share of ~2.5%***
Slide 84: Increase penetration in existing markets
PRIMARY MARKET OBJECTIVE Increase penetration in existing markets Danish acquisitions make Denmark >50% Markets outside Denmark of revenue again account for 32% of revenue Took over YOW! Orange11 B.V. Open Credo Ltd. conference Founded New unit (Custom software) (Cloud, Data Engineering) Two new uni
Slide 85: Sustained growth as business units collaborate across borders
REPEAT SOLUTIONS IN OTHER COUNTRIES Sustained growth Solutions & Capabilities as business units Healthcare expertise Fintech expertise collaborate Aviation and airports Design-thinking & ride-along across borders Managed security Operations and data centres Cloud journey and migrations Enterprise mo
Slide 86: Focus on internal IP to support growth and margins
SELLING OUR OWN PRODUCTS Focus on internal Products & Components IP to support Vision AI - Quality control AI - Process automation, chatbots, customer service growth and Vision Pro - Platform Trifork Health Platform - Connecting patients margins Digital Twin - Asset connectivity Arkyn - Enterprise m
Slide 87: Solution and product hubs in Europe
KEY COMPETENCE CENTRES PUBLIC ADMIN Solution and product HEALTH PLATFORM VISION AI VISION PRO hubs in Europe CONTAIN CHEETAH IOT SECURITY DESIGN THINKING QUALITY INTELLIGENCE DESIGN - Build full-scale offering in more countries (similar to ENTERPRISE MOBILITY Denmark) with help from M&A SAP ELIXIR,
Slide 88: Becoming a pioneering tech partner to US enterprises
Becoming a pioneering tech partner to US enterprises Karan Yadav CEO NORTH AMERICA SINCE JUNE 2023
Slide 89: Who am I?
WHO AM I? 20 years at leading global tech companies Senior Director, Global Worldwide Industry Worldwide Lead CEO North America Lead Mobile Application Head Technology, Industry and Partner Since June 2023 Innovation Media & Telco Solutions Karan Yadav 89
Slide 90: At the forefront of innovation
WHY DID I JOIN TRIFORK? At the forefront of innovation Innovation leader Deep talent pool Customer outcome focused Focus on execution 90
Slide 91: Four pillars of US growth strategy
MARKET & BUSINESS DEVELOPMENT Four pillars Complementary Deepen of US growth Balance AI and spatial Labs Strategic between computing at Capabilities Partnerships products and the core services strategy E.g. Arkyn, Dawn E.g. Apple, Health NVIDIA & SAP 91
Slide 92: 5-10x revenue in 10 years?
LARGE UNTAPPED POTENTIAL 5-10x revenue in 10 years? Not a guidance or promise, but we should be able to 5-10x our business in the US in 10 years (17-26% CAGR): US REVENUE, EURM ? - Starting from a low base - Building brand as a pioneering tech partner to enterprises - Focus on manufacturing, logisti
Slide 93: Transform repair and maintenance leveraging vision AI
Transform repair and maintenance leveraging vision AI, generative AI, and spatial computing - 125-year-old NYSE-listed corporation based in Chicago - Leading global provider of railcar leasing and service throughout North America, Europe, and India - Repair and maintenance is manual and complex - Tr
Slide 94: Digital Car
Vision AI + Spatial Computing Digital Car The future digital car is one that updates all references real-time, is accessible from anywhere, and schedules its own work orders when appropriate. This enables human experts to make fast, informed, and data driven decisions.
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TRIFORK.-
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Slide 97: Products and Services
Products and Services Experience Application Development Platform Engineering 97
Slide 98: Early positioning for a large market opportunity
SPATIAL COMPUTING - A NEW PARADIGM SHIFT Early positioning for a large market opportunity - Apple Vision Pro will be game-changing for the SPATIAL COMPUTING MARKET SIZE (SOFTWARE SEGMENT, EX. GAMING - USD BILLION) enterprise - regardless of the penetration rate in the 185.0 consumer segment - Resear
Slide 99: M&A a key part of US growth journey
NEW US ACQUISITION ANNOUNCED M&A a key part of US growth journey Technical experts in data and platform engineering Well known in Trifork / GOTO ecosystem, Chicago-based Strong cultural alignment Acquisitions and partnerships will be central to US growth strategy 99
Slide 100: Break
15 minutes · Try the Apple Vision Pro Break 100
Slide 101: Investing in our future
M&A & TRIFORK LABS Investing in our future Kristian Wulf-Andersen GROUP CFO 101
Slide 102: Allocating capital towards mid- and long-term value creation
INVESTING IN OUR FUTURE Allocating capital towards mid- and long-term value creation TOP 3 PRIORITIES Organic growth M&A Net debt management Trifork Labs Shareholder distribution - Mid-term target: 10-15% - Mid-term target: 15-25% total - Q1/24: Net interest-bearing - Trifork’s R&D through - 25% of
Slide 103: Allocating capital towards mid- and long-term value creation
INVESTING IN OUR FUTURE Allocating capital towards mid- and long-term value creation TOP 3 PRIORITIES Organic growth M&A Net debt management Trifork Labs Shareholder distribution - Mid-term target: 10-15% - Mid-term target: 15-25% total - Q1/24: Net interest-bearing - Trifork’s R&D through - 25% of
Slide 104: We have maintained price discipline in M&A
INVESTING IN OUR FUTURE We have maintained price discipline in M&A 2021-2023 M&A share of Multiples paid revenue growth Of new acquisitions Of new acquisitions, Revenue EBITDA EBIT three year average 28% 0.9-2.0x 6.0-9.5x 6.8-10.0x Financing Number of sources transactions Incl. buyouts of non-contro
Slide 105: The type of companies we look to acquire
INVESTING IN OUR FUTURE The type of companies we look to acquire IDEAL TARGET VALUE CREATION DYNAMICS Sells mission-critical solutions to a broad Some protection from downturn in opex/capex cycle customer base as a frontrunner in its niche Strategic match with Trifork business areas Capabilities com
Slide 106: Transactions focusing on long-term value creation
INVESTING IN OUR FUTURE Transactions focusing on long-term value creation IDEAL TARGET VALUE CREATION DYNAMICS Track record of steady double-digit revenue growth Complements and de-risks Trifork’s earnings growth EBITDA margin at least in line with Trifork Group trajectory No founder exits Acquire 6
Slide 107: Francesco Cesarini
Francesco Cesarini FOUNDER & TECHNICAL DIRECTOR
Slide 108: Our Business Units
Erlang Solutions Our Business Units ⏺ Part of the Trifork Group since 2011 ⏺ Today, Trifork owns 95% ⏺ London-based shared services & head office ⏺ 6 business units, 4 physical offices ⏺ A remote-first company ⏺ Focus on backend systems
Slide 109: Working remotely across the globe
Erlang Solutions - Our talent Working remotely across the globe ⏺ 134 permanent employees + subcontractors ⏺ 23 nationalities ⏺ Staff attrition rate of 6% ⏺ Rapid expansion when becoming remote
Slide 110: Supporting the tip of the iceberg
Erlang Solutions Supporting the tip of the iceberg ⏺ Focus on backend and infrastructure ⏺ Systems which scale and never fail ⏺ Apply lessons from telecoms to ⎼ Fintech & Blockchain ⎼ Digital Health ⎼ IoT ⎼ E-Commerce ⎼ Messaging
Slide 111: Supporting the tip of the iceberg
Erlang Solutions Supporting the tip of the iceberg ⏺ Focus on backend and infrastructure ⏺ Systems which scale and never fail ⏺ Apply lessons from telecoms to ⎼ Fintech & Blockchain ⎼ Digital Health ⎼ IoT ⎼ E-Commerce ⎼ Messaging
Slide 112: The Future
Erlang Solutions The Future Consultancy Prototype / POC Events Development ⏺ Full ownership, including the tip of the iceberg Support ⏺ Spin off brands & products Staff augmentation ⏺ Expand organically and through M&A ⏺ Focus on the convergence of ML/AI with Fintech, IoT and Digital Health
Slide 113: Thank You!
Thank You! USA – London – Stockholm – Krakow – Budapest Learn more: www.erlang-solutions.com
Slide 114: Allocating capital towards mid- and long-term value creation
INVESTING IN OUR FUTURE Allocating capital towards mid- and long-term value creation TOP 3 PRIORITIES Organic growth M&A Net debt management Trifork Labs Shareholder distribution - Mid-term target: 10-15% - Mid-term target: 15-25% total - Q1/24: Net interest-bearing - Trifork’s R&D through - 25% of
Slide 115: Ecosystem of shared value creation
TRIFORK LABS Ecosystem of shared value creation MINIMIZING RISK MAXIMIZING OPPORTUNITIES Trifork Trifork Labs - 72 individual business units - 23 minority investments in small tech companies - Majority ownership - Software products and platforms, either IP spinoff from Trifork or externally develope
Slide 116: Ecosystem of shared value creation
TRIFORK LABS Ecosystem of shared value creation STRATEGIC PRODUCT COLLABORATION INNOVATION We look for: Outcome: - Early-stage - Enables Trifork being at FAUNA forefront of innovation - Products or platforms - Trifork learns about new - Supports Inspire-Build- markets and tech Run - Trifork wins mor
Slide 117: Go-to-market model
TRIFORK LABS Labs supports our work across Trifork Group Go-to-market model 1 3 Inspire Build = FAUNA = Run Cross BA FinTech Digital Health Smart Building Smart Enterprise Cyber Protection Cloud Operation Support Business areas 117
Slide 118: Progression of companies
TRIFORK LABS Progression of companies Funding stage Listed Self-funded Strategic owners 1 3 B-Round A-Round Pre-seed / Seed FAUNA 2011-2017 2018 2019 2020 2021 2022 2023 2024 Year of first Trifork investment 118
Slide 119: Top 10 investments account for 92% of book value
TRIFORK LABS Top 10 investments account for 92% of book value Position 1-5 ALPHABETIC ORDER Position 6 – 10 ALPHABETIC ORDER 7.7% REST AxonIQ Arkyn Studios Software development framework Field and factory SaaS on top of SAP 19.3% Bluespace Ventures POS. 6–10 C4 Media The future of Swiss digital heal
Slide 120: We partner with robust and committed co-owners
TRIFORK LABS We partner with robust and committed co-owners Position 1-5 ALPHABETIC ORDER Position 6 – 10 ALPHABETIC ORDER AxonIQ Arkyn Studios Founders Software development framework Field and factory SaaS on top of SAP Bluespace Ventures C4 Media Founders The future of Swiss digital health Softwar
Slide 121: Good growth and EBITDA performance in Top 10
TRIFORK LABS Good growth and EBITDA performance in Top 10 # EURm EURm REVENUE EBITDA EMPLOYEES Growth Margin Growth +36% 13.7% 457 +46% 10 9.9 200 200 9 9.5 180 80 8 72.1 160 70 72.9 7 6 140 60 5 120 49.5 50 +33% 4 337 50.2 100 3 100 337 40 2 80 -2.4% -16.0% 1.8% 30 1 -1.2 -1.5 0.2 60 0.1 20 0 40 12
Slide 122: Overview of our current investments
TRIFORK LABS - OVERVIEW OF OUR CURRENT INVESTMENTS Strategic collaboration Technology inspiration Product innovation Digital sustainability Book value Company Investment thesis Business Area Entry year Ownership Stage / Owners Valuation change Valuation method Website Top 5 AxonIQ B.V. Multiple 2017
Slide 123: Conservative approach to valuation
TRIFORK LABS Conservative approach to valuation COMPANIES THAT ARE NOT YET PROFITABLE: - Upwards or downwards value adjustment if an external investor puts a new value on the company through a new financing round - Risk-based valuation assessments when companies are not following their growth or fin
Slide 124: Larger investments are deep strategic partnerships
TRIFORK LABS Larger investments 2 1 are deep strategic 3 4 5 partnerships 6 7 8 9 10 - Average invested capital is EURm 0.9 11 12 - The largest investments are: 13 14 15 - Existing customers creating software 16 product/platform with Trifork as a tech 17 18 partner 19 20 - Technology collaborations
Slide 125: No major exits since 2020 - We see inbound interest
TRIFORK LABS No major exits since 2020 - We see inbound interest SOME OF OUR LARGER HISTORICAL EXITS: ENTRY 2011 CO-FOUNDED 2014 CO-FOUNDED 2016 EXIT 2014 & 2015 EXIT 2018 EXIT 2018 & 2020 EXITS 2024-26? ? Trifork Labs was an early investor Trifork Labs co-founded Trifork Labs co-founded High probab
Slide 126: EURm 123 value created and EURm 12 since IPO
TRIFORK LABS EURm 123 value created and EURm 12 since IPO INVESTMENTS (EURM) Accumulated net exit proceeds and dividends Accumulated unrealized gains in current portfolio Value creation Invested unrealized gains from deconsolidation of Group companies EURm 122.6 Invested cash in current portfolio Bo
Slide 127: Top 5% performance: 4.1x value creation since 2017
TRIFORK LABS Top 5% performance: 4.1x value creation since 2017 2017 - Q1 2024, EURM Invested cash in existing and previous investments Invested unrealized gains from deconsolidation of Group companies Accumulated unrealized gains Accumulated net exit proceeds and dividends Total value to paid-in ca
Slide 128: Positive bottom line impact despite tough funding environment
TRIFORK LABS Positive bottom line impact despite tough funding environment in 2023 EBT (EURM) 39.2 - Took full impairments on three 40 investments during the tougher venture 35 climate in 2023 30 - Strong operational performance and 25 increased valuations in other 20 investments more than compensat
Slide 129: Patient led digital health products built with empathy
Patient led digital health products built with empathy Alexander Mandix Hansen CO-CEO
Slide 130: We are global leaders in digital health innovation
Dawn Health | Trifork Capital Markets Day We are global leaders in digital health innovation Mission — Code to save lives The Dawn Platform & Experiences Founded in 2016 with Trifork Labs Investment to transform We are patient-centric digital health pioneers, specializing in the development of softw
Slide 131: Digital Health – global forecast with CAGR of 25%
Dawn Health | Trifork Capital Markets Day Digital Health – global forecast with CAGR of 25% USD BN 549.7 25% 180.2 APAC 142.9 The global digital health market is estimated to grow from USDbn 180 in 2023 to APAC APAC EU USDbn 550 billion in 2028* EU EU US US US * Marketsandmarkets.com, digital health
Slide 132: The SaMD market size is expected to significantly increase
Dawn Health | Trifork Capital Markets Day The SaMD market size is expected to significantly increase with life science companies being a major contributor to growth 89% of life science digital health decision makers expect to increase their SaMD investments* The global SaMD market is expected to yie
Slide 133: Dawn Health has the leading platform for enabling new technologies
Dawn Health | Trifork Capital Markets Day Dawn Health has the leading platform for enabling new technologies that impact patients living with chronic conditions and drive behaviour change in the real-world Remote Patient Digital Monitoring Therapeutics Patient remote monitoring with A digital eco-sy
Slide 134: Our clients use our platform to scale digital health products
Dawn Health | Trifork Capital Markets Day Our clients use our product platform to scale digital health products globally and enhance their performance over time License add- Operations and Maintenance Services (extended) on Platform Modules + 3rd party Integrations (extended) Operations and Maintena
Slide 135: Enhancing the value of patient care and drug performance
Dawn Health | Trifork Capital Markets Day Enhancing the value of patient care and drug performance through patient-centric digital solutions and sound business cases Improved drug Retention of Market performance patients Expansion Problem Problem Problem • Drugs do not perform as well in the real wo
Slide 136: Novartis Global Partnership
Dawn Health | Trifork Capital Markets Day Novartis Global Partnership • The Ekiva Product, built on the Dawn platform, as a scalable solution across both Therapy Areas, Geographies and SaMD – with key synergies across Commercial & Clinical Development Companion for Therapy Y • The user experience fo
Slide 137: Dawn Health leverages its platform to build scalable software
Dawn Health | Trifork Capital Markets Day Dawn Health leverages its platform and infrastructure to build software that can scale across the pharma products portfolio internationally High up-sell opportunity High cross-scaling opportunity Long stickiness of license Licenses increase as clients scale
Slide 138: Let's reimagine digital health, together.
Let’s reimagine digital health, together. Alexander Mandix Hansen CO-CEO
Slide 139: Financial review
PERFORMANCE & TARGETS Financial review Kristian Wulf-Andersen GROUP CFO 139
Slide 140: We met four out of five mid-term targets from the IPO
PREVIOUS MID-TERM TARGETS We met four out of five mid-term targets from the IPO Mid-term targets set at May 2021 IPO 2021 2022 2023 2020-2023 Comment (UNCHANGED UNTIL CMD 2024) Group total Purposely reduced our M&A activity 15-25% CAGR 37.4% 20.0% 12.4% 21.7% CAGR in 2022-23 due to high valuations r
Slide 141: Medium term, we expect organic revenue CAGR of 10-15%
UPDATED MID-TERM TARGETS Medium term, we expect organic revenue CAGR of 10-15% 20% 19% 9% 5-10% 10-15% 10-15% EURm ILLUSTRATIVE Organic revenue Revenue growth CAGR 2020-2023: 17.4% 202m CAGR 2017-2023: 21.7% CAGR 2007-2023: 22.6% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 142: Adding acquisitions, we expect to grow 15-25% mid-term
UPDATED MID-TERM TARGETS Adding acquisitions, we expect to grow 15-25% mid-term 37% 20% 12% 6-11% 15-25% 15-25% EURm ILLUSTRATIVE Revenue from acquisitions Organic revenue CAGR 2020-2023: 21.7% Revenue growth 220-230m CAGR 2017-2023: 21.5% 208m CAGR 2007-2023: 22.9% 2007 2008 2009 2010 2011 2012 201
Slide 143: Good growth in Run in line with strategy
2021-2023 Good growth in Inspire Build +0.3 pp Run in line with +6.7 pp Run +2.2 pp +4.0 pp strategy +0.4 pp +5.3 pp +5.4 pp +13.7 pp +31.5 pp +12.4% - Total revenue growth of EURm 96.9 since 2020, 225 * corresponding to 80.2% growth over three years and +20.0% a CAGR of 21.7% 200 207.9 +37.4% - Ins
Slide 144: Good historical growth in Denmark but higher outside
2021-2023 Good historical REVENUE CAGR (2021-2023) & SHARE OF REVENUE (2023) growth in Denmark 68.1% 8.7% 7.4% 4.4% 3.2% 8.1% but higher outside - Total revenue CAGR of 21.7% 118.9% - Denmark CAGR of 19.1% - International CAGR of 28.1% - Switzerland driven by both organic growth and acquisitions - U
Slide 145: Growth going forward
UPDATED MID-TERM TARGETS Growth going forward - 2024 has started slowly with more hesitating market demand. Total revenue growth guidance for 2024 is approx. 6-11% - Target of 15-25% total revenue growth in the medium term reiterated - 5% average in-organic growth annually until 2026 - In the medium
Slide 146: In 2026, we target 16-20% adj. EBITDA margin in Trifork segment
UPDATED MID-TERM TARGETS In 2026, we target 16-20% adj. EBITDA margin in Trifork segment - 2021 supported by strong revenue growth Adjusted EBITDA margin, Trifork Segment - 2022 affected by extraordinary investments in data centres to accommodate growth in Run - 2023 affected by investments in busin
Slide 147: Organic investments pressuring EBITDA growth
ADJ. EBITDA IN TRIFORK SEGMENT Organic investments Inspire Build Run Other pressuring EBITDA growth +9.7% but support mid- and +11.5% long-term development 36 +41.9% 35.0 33 31.9 - Inspire loss in 2023 was a heavy negative 30 contributor 27 28.6 - Build had 18.4% adj. EBITDA CAGR from 2020-23 24 21
Slide 148: Strategic priorities in 2024 and the mid-term
ADJ. EBITDA IN TRIFORK SEGMENT Strategic priorities in 2024 and the mid-term Initiatives that will help improve margins in 2024 Initiatives that will pressure margins in 2024 Maintain high level of business development Sharpen business model in Inspire - Proactively broaden our opportunity pipeline
Slide 149: Run has the highest margins
ADJ. EBITDA IN TRIFORK SEGMENT Run has the highest margins Build - Inspire adj. EBITDA margin in 2023 -43% due to Run small numbers. EURm -2.7 in 2023 is expected to Trifork segment reduce to around EURm -1.5 in 2024. In 2026, we expect Inspire to be minimum breakeven - Build margin reduced in 2023
Slide 150: More sales of own IP in Run to support margins
ADJ. EBITDA IN TRIFORK SEGMENT More sales of own IP in Run to support margins - Acquisition of IBE in Switzerland provided a new REVENUE FROM LICENSES & SUPPORT OF OWN PRODUCTS EURM base level in Q1/2023 - Growth in past 12 months been driven by 3.5 strategic focus to sell more own products and +28%
Slide 151: Payroll costs kept in balance
ADJ. EBITDA IN TRIFORK SEGMENT Payroll costs kept in balance AVERAGE PAYROLL PER FTE (EURK) - Average payroll costs stable during an inflationary period from 2021 to 2023 Average # of FTEs - Difficult to source talent in 2021 and 2022 - Easier to source talent in 2023 and 2024 880 970 1,104 682 100
Slide 152: In 2026, we target 10-14% Group EBIT margin
GROUP EBIT In 2026, we target 10-14% Group EBIT margin Difference between Segment adj. EBITDA and Group EBIT margin Group EBIT is - Cost of operating Trifork Labs (around EURm 15% 2.0 annually) 14% 13% MARKET RECOVERY - Depreciation and amortization (expected 12% around EURm 15.0 in 2024) 11% SLOW M
Slide 153: Allocating capital towards mid- and long-term value creation
INVESTING IN OUR FUTURE Allocating capital towards mid- and long-term value creation TOP 3 PRIORITIES Organic growth M&A Net debt management Trifork Labs Shareholder distribution - Mid-term target: 10-15% - Mid-term target: 15-25% total - Q1/24: Net interest-bearing - Trifork’s R&D through - 25% of
Slide 154: Good cash generation to support growth targets
CASH FLOW Good cash Operating cash flow Free cash flow generation to support Margin vs. revenue growth targets 30 13.0% - Growth has historically mainly been 26.9 25 financed with own cash flows 11.9% - Priority to organic growth, M&A, and 22.1 20 15.4% 8.7% maintaining balance sheet target 8.7% 17.
Slide 155: Gearing target maintained for now
NEW TARGET Gearing target NET INTEREST-BEARING DEBT (EURM) maintained for now Leverage ratio (NIBD/adj. EBITDA) - Net interest-bearing debt of 1.5x Group adj. EBITDA with possibility to go exceed short- term -0.6x - We want to maintain a prudent balance sheet with flexibility to pursue short- and -0
Slide 156: Innovating for a better world
OUR VISION FOR A MORE SUSTAINABLE TRIFORK Innovating for a better world Kristian Wulf-Andersen Emilie Thorup Lyngholm GROUP CFO ESG MANAGER 156
Slide 157: Strategic pillars
OUR ESG FOCUS Strategic pillars ENVIRONMENT SOCIAL GOVERNANCE Finding greener solutions to Creating an inspiring Responsible business how we operate workplace, development and information & ethics, cyber equal opportunities for all security, and data ethics. 157
Slide 158: Focus areas
OUR ESG FOCUS Focus areas ENVIRONMENT SOCIAL GOVERNANCE Finding greener solutions to Creating an inspiring Responsible business how we operate workplace, development and information & ethics, cyber equal opportunities for all security, and data ethics. - Reduce our carbon footprint - Ensure a health
Slide 159: Live environmental data metrics
ENVIRONMENT Live environmental data metrics Our smart buildings produce live data on environmental metrics. 159
Slide 160: Utilizing technology to create real impact and take action
GOVERNANCE Utilizing technology to create real impact and take action 160
Slide 161: Innovating for a better world: Targets
INNOVATING FOR A BETTER WORLD Targets ENVIRONMENT Science-based emission targets 2030 70% reduction in Scope 1 and 2 emissions1 and transition to green electricity 2030 100% renewable electricity 2026 70% of Trifork’s suppliers2 have set science-based emission targets Empowering gender diversity 203
Slide 162: Our greatest impact is generated through our software solutions
CASE STORIES Our greatest impact is generated through our software solutions ENVIRONMENTAL AI and Computer Vision Powered Cutting cost & emissions through Removing plastic from the beaches Biodiversity Protection in Scandinavia discovery & data analysis using AI and robots SOCIAL Hospital on Wheels
Slide 163: Key takeaways from today
Key takeaways from today Slow market environment in Pioneering tech partner Long-term secular Making a real impact Loyal customer base the short-term but… challenging our customers growth drivers Growing across borders Dynamic teal model Big opportunity to cross-sell Design Thinking and Selling more
Slide 164: Q&A
Jørn Larsen FOUNDER & GROUP CEO Kristian Wulf-Andersen Q&A GROUP CFO Morten Gram GROUP CRO Preben Thorö GROUP CTO 164