Smartcraft Group Ab (publ) · OMXSTO:SMCRT
Smartcraft Group Ab (publ) — Q1 2024 Earnings Presentation
21 slides from Smartcraft Group Ab (publ)'s earnings presentation, May 7, 2024
Slide 1: Q1 2024 report
Q1 2024 report MAY 774, 2024 aa > jl. SmartCraft BETTER DIGITAL TOOLS
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: Solid demand in a challenged market
Solid demand in a challenged marked o Operational and financial highlights o M&A o Summary and Q&A
Slide 4: SaaS for SME construction companies
SaaS for SME construction companies People Industry challenges Documentation o 0-5% margins -> High level of bankruptcies o High level of conflict between construction company and customer o High level of accidents and deaths Material o Increasing demand for documentation and reporting SmartCraft di
Slide 5: Renovation is our target segment
Renovation is our Norwegian construction market by segment, bNOK target segment New residential Renovation residential New commercial Renovation commercial New Infrastructure Renovation infrastructure 160 Renovation is our target market 140 o Large market, bigger than new build 120 o Less volatile,
Slide 6: Q1 2024 financial highlights
Q1 2024 financial highlights Continued strong growth, consistently high margins and low churn MNOK 401 33% 7% Annual Recurring Adjusted Stable churn Revenue EBITDA-capex +16% Consistently +2 p.p. hi +2% profitability
Slide 7: Leading position in the Nordics
Leading position in the Nordics Solid performance over time 2019 2023 Q1’24 Q1’24 Incl Q2 acquisitions o Consistent and solid growth before ARR NOKm 145 387 401 ~456 and after the IPO in June 2021 27.1% CAGR 31.0% CAGR o Constantly gaining market share Adjusted Not EBITDA 36% 42% 41% margin disclose
Slide 8: Good growth in marketing & sales efficiency
Good growth in marketing & sales efficiency Brand exposure for the SmartCraft Group o +643% brand exposure1 (Y/Y) to secure market position o 18% more inbound leads (YoY) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec o 17% more sales meetings (YoY) Inbound leads o Great focus on the electro indust
Slide 9: Increased organic growth and EBITDA margin in Sweden
Increased organic growth and mNOK Sweden EBITDA margin in Sweden 60,0 50,0 +26% 40,0 30,0 20,0 o Continued strong demand for Bygglet with 10,0 - +116% booked meetings (YoY) Q1'23 Q1'24 Revenue EBITDA Growth o Strong organic growth as a result of: o Structured sales processes o Targeted marketing o I
Slide 10: Still challenging new build market in Finland
Still challenging new build Finland market in Finland mNOK 60,0 50,0 40,0 30,0 -2% o Organic growth -5% 20,0 10,0 o Lower activity in new construction projects from existing customers - Q1'23 Q1'24 o Some positive market signals: Revenue EBITDA Growth o Revenue from smaller customers +18% YoY in Q1
Slide 11: Continued positive development in Norway
Continued positive mNOK Norway development in Norway 60,0 50,0 +13% 40,0 30,0 o Synergetic sales and marketing activities 20,0 o Potential revenue pipeline is strong and at 10,0 the same level as end of Q4 - Q1'23 Q1'24 o Growth hampered by increased downgrades Growth Revenue EBITDA from customers d
Slide 12: High growth in recurring revenue as basis for success
Quarterly ARR growth history, mNOK High growth in recurring Organic growth M&A revenue as basis for success 5,8 o 16% growth in ARR 2,8 o 3.3% organic growth quarter-over-quarter 17,6 17,3 10,6 12,8 12,1 13,2 12,7 o CPI price increases spread throughout year and implemented at 8,3 time of contract r
Slide 13: Continued growth in revenue and strong profitability
Continued growth in revenue and strong profitability Solid YoY revenue growth Consistently high profitability R&D capex mNOK mNOK 97.0% 97.0% 40 0 35 0 +16.4% 43,5 % 0 109,7 41,8 % 41,9 % 40,9 % 30 39,3 % 10,7 % 0 25 7,8 % 94,3 0 20 0 32,7 % 33,8 % 33,1 % 0 31,1 % 31,4 % 15 Acquired 10,1 0 Coredinat
Slide 14: Solid financial position and strong cash flow
Solid financial position Balance sheet, March 31, 2024 and strong cash flow mNOK Cash and cash equivalents Deferred revenue - to support growth strategy and M&A activity Current assets Current liabilities Non-current assets Non-current liabilities Goodwill and intangible assets Equity Operating cash
Slide 15: Key focus to ensure continued profitable growth
Key focus to ensure continued profitable growth Medium-term financial targets remain unchanged Organic growth o Customer centric business model 15 – 20% o Continue with marketing and sales excellence to build solid new customer pipeline o More sales automation & self service bolt on M&A o Use our fl
Slide 16: M&A: Locka and Clixifix acquired
M&A o Locka acquired 15th April o Clixifix acquired 2nd May ~ ARR NOK 55 million ~ 600 customers + 55 employees + Massive TAM expansion into the UK
Slide 17: Locka Group AB
Locka Group AB o Solutions within 3D visualization, customer interaction and after-sales service for construction companies & property developers o ~21 employees (down from 56 one year ago) o The company has synergized the organization and hence has a lean cost base o Financials: o Revenue SEK 37m i
Slide 18: Clixifix Limited
Clixifix Limited o Construction SaaS solution managing defects, complaints & repairs o Located in Newcastle (UK) o 34 employees o ~250 customers o Construction companies o Property owners o ~20 000 users o Revenue and EBITDA o ARR GBP 2,8m end of Feb 2024 o 85% recurring revenue o 50% revenue growth
Slide 19: Best of breed solutions for all parts of the construction cycle
Best of breed solutions for all parts of the construction cycle Specialized solutions for different parts of the property life cycle Marketing & sales Construction phase QA and HMS Guarantee / service Solutions for all phases of a property life cycle
Slide 20: We continue to deliver on our profitable growth journey
We continue to deliver on our Q&A profitable growth journey o Continue to deliver on strategy o Reduced operational risk Make sure to follow us for the latest news! o Consistent strong operational cash flow smartcraft.com LinkedIn Facebook YouTube
Slide 21: BETTER DIGITAL TOOLS
BETTER DIGITAL TOOLS