Arobs Transilvania Software S.a. · BVB:AROBS
Arobs Transilvania Software — Investor Presentation (December 2023)
52 slides from Arobs Transilvania Software's investor presentation, December 2023
Slide 1: IR Presentation December 2023
IR Presentation December 2023 1 Software Services and State-Of-The-Art-Software Products #InnovatedInCluj
Slide 2: Disclaimer
Disclaimer This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of shares issued by AROBS Transilvania Software S.A. (“AROBS”), or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy AROBS shares or oth
Slide 3: Contents
Contents AROBS Group at a glance Development strategy Key 2022 and 9M 2023 financials 2023 Budget AROBS on BVB Annex: Software services and products covered by the Group 3 arobs.com | arobsgrup.ro
Slide 4: AROBS Group at a glance
AROBS Group at a glance 4
Slide 5: European by birth, International by culture
European by birth, International by culture 11 Local Branches 9 International Branches • Cluj-Napoca • Belgium • Baia Mare • Germany • Oradea • Hungary • Targu Mures • Indonesia • Arad • Poland • Timisoara • Republic of Moldova • Lugoj • The Netherlands • Craiova • UK • Bucharest • USA • Suceava • I
Slide 6: Software Services
SOFTWARE SERVICES EMBEDDED TECHNOLOGIES ENTERPRISE SOLUTIONS LIFE SCIENCES AUTOMOTIVE CYBERSECURITY ELECTRIFICATION IOT AEROSPACE LAB AUTOMATION MEDICAL FINTECH TRAVEL INTELLIGENT TECHNOLOGY AUTOMATION MARITIME 6 arobs.com | arobsgrup.ro
Slide 7: Software Products
SOFTWARE PRODUCTS AROBS TELEMATICS AROBS HR SOLUTIONS AROBS GREENFIELD New company, responsible One of the leaders in the industry in Specialized in providing HR with the implementation of Romania, with a strong presence in and Payroll solutions through hardware and software the Republic of Moldova,
Slide 8: Evolution per business segment
Integrated Systems - 9% Evolution per business segment Software Distribution of goods and other services - 1% products 12% 2023* Software products Distribution of goods and other services - 5% 19% Software Software 2022 services 79% products 27% 2021 Distribution of goods and other services Software
Slide 9: Acquisitions & organic growth propelled our evolution
Acquisitions & organic growth propelled our evolution Since raising RON 74 million (EUR 15m) from investors through a private placement in October 2021, and after its listing on the AeRO market of the Bucharest Stock Exchange in December 2021, the Group carried-out 9 M&A transactions. The transactio
Slide 10: Group structure – as of November 2023
Group structure – as of November 2023 AROBS TRANSILVANIA S.A. Romanian entities International entities AROBS DEVELOPMENT & BERG COMPUTERS SAS FLEET TRACKING SRL AROBS SOFTWARE SOLUTIONS PT AROBS SOLUTIONS ID - 70% ENGINEERING (ENEA) 100% (SAS GROUP) GMBH - 60% AROBS Software SRL MD – 100% 100% 100%
Slide 11: Development strategy
Development strategy 11
Slide 12: Long-term strategy anchored on four key pillars
Long-term strategy anchored on four key pillars Concentric diversification based on research and innovation (R&D) Development of new areas of expertise for software services (Greenfield & organic development) Horizontal integration strategy (M&A) Motivation and retention (SOP) 12 arobs.com | arobsgr
Slide 13: M&A strategy
M&A strategy M&A TARGETS: 2024 - 2026 ➢ Majority stakes in IT companies active in software services ➢ Total budget of approx. EUR 55 million for further and software products such as fleet management or M&A transactions, with focus outside the CEE region business optimization ➢ Approx. EUR 40 millio
Slide 14: Key 2022 financials
Key 2022 financials 14
Slide 15: 2022 Results (IFRS)
2022 Results (IFRS) REVENUE STATEMENT (RON m) 2022 2021 YoY % Turnover: 299.8 186.6 61% The results include, in part, the performances Software services revenue 240.1 128.5 87% recorded by the new companies acquired by Software products revenue 58.7 48.9 20% AROBS and the subsidiaries established du
Slide 16: 2022 Normalized EBITDA (IFRS)
2022 Normalized EBITDA (IFRS) RON m 2022 2021 YoY % Gross result 105.6 73.2 44% Sales and marketing expenses 9 7.5 20% Admin and general expenses 41.5 18.6 123% Other revenues/expenses 1.9 0.9 114% Operating result 53.2 46.2 15% EBITDA 70.3 56.5 24% Strong normalized EBITDA margin due to Normalized
Slide 17: Topline split per business segment
Topline split per business Software products segment 20% 2022 The software services industry constantly requires access to excellent resources in increasing numbers to Software perform in a competitive market. Consequently, this services 80% line increased by 87% in 2022, reaching RON 240.1 million,
Slide 18: 9M 2023 financials
9M 2023 financials 18
Slide 19: 9M 2023 Consolidated Results
Variation CONSOLIDATED P&L (RON m) 30.09.2023 30.09.2022 % 9M 2023 Net turnover 349.8 208.9 67% Other operating revenue 1.5 1.0 60% TOTAL OPERATING REVENUE 356.3 212.6 68% Consolidated Results Cost of goods Personnel expenses split by: 34.1 171.2 5.1 71.8 567% 139% Wages and taxes 156.0 69.7 124% •
Slide 20: 9M 2023 Individual Results
Individual P&L (RON m) 30.09.2023 30.09.2022 Variation % 9M 2023 205.5 166.0 24% Net turnover Other operating revenue 0.8 0.6 38% Individual Results TOTAL OPERATING REVENUE 208.7 168.3 24% Cost of goods 3.4 5.2 -35% Personnel expenses split by: 99.5 47.6 109% Wages and taxes 86.8 45.6 90% ESOP 12.6
Slide 21: Business segments contribution to total turnover
Business segments contribution to total turnover 9% • Software Services segment registered a +62% 15% increase at the consolidated level in 9M 2023 compared to 9M 2022. • Software Products segment increased by +22% 9M compared to 9M 2022. 2023 • Integrated Systems segment, developed by one of 76% th
Slide 22: Organic, M&A and Greenfield contributions
Organic, M&A and Greenfield contributions RON m 9M 2023 Organic % of Total M&A % of Total Greenfield % of Total Turnover 349.8 235.7 67% 82.5 24% 31.7 9% Other operating income 6.5 4.3 66% 2.2 34% - 0% Personnel expenses, of which: 171.2 119.0 69% 50.7 30% 1.5 1% Employee expenses - wages and taxes
Slide 23: Operating expenses
171.2 Operating expenses • The primary drivers of our expenses were personnel expenses, which saw an increase due to M&As, accounting for 25% of total salary expenses. • This increase was further fuelled by the expansion of our teams to bolster our 75.8 organic growth initiatives. 71.8 2 (SOP) 64.3
Slide 24: 9M 2023 Balance Sheet
9M 2023 Balance Sheet Balance sheet indicators 31.12.2022 30.09.2023 Variation % (RON m) Fixed assets, of which: 153.4 198.4 29% • Fixed assets growth driven by strategic acquisitions Goodwill 112.4 142.1 26% of AROBS Software SRL, AROBS TrackGPS SRL, Current assets, of which: 205.0 217.4 6% SYDERAL
Slide 25: 2023 Budget
2023 Budget 25
Slide 26: 2023 Consolidated Budget
2023 Consolidated Budget* PROFIT AND LOSS ACCOUNT AMOUNT (RON m) Net turnover, of which: 421.3 Services rendered 334.9 • The consolidated budget does not include Revenue from sale of goods 86.3 financial projections of the companies acquired in Other services 0 Other operating revenues 6 2023. Total
Slide 27: 9M 2023 performance vs. the budget
2023 CONSOLIDATED REVENUE AND Realized Budgeted Realized vs 9M 2023 performance EXPENSE BUDGET (RON m) 9M 2023* 9M 2023 Budgeted % Total Operating Revenues 356.3 328.0 9% Net Turnover, of which: 349.8 323.5 8% vs. the budget Revenue from services Product revenue 266.3 81.6 251.2 72.3 6% 13% Revenues
Slide 28: AROBS on BVB
AROBS on BVB 28
Slide 29: Key investment highlights
Key investment highlights Largest IT company listed on the Bucharest Stock • Average daily liquidity in 2022: RON 0.4 million LISTING VENUE • Exchange in terms of capitalization, offering liquid • Total traded value in 2022: RON 103 million, most traded portfolio diversification opportunity company
Slide 30: AROBS shares
AROBS shares The company has 5,000+ shareholders, with a solid AROBS shares price evolution between 01.11.2022 – 22.11.2023 base of retail investors and institutional appetite given the sectorial diversification. The market capitalization is currently oscillating around RON 800 mn. The dividend poli
Slide 31: Organizational Structure
Organizational Structure 31
Slide 32: Organizational Structure
ORGANIZATIONAL STRUCTURE GENERAL SHAREHOLDERS MEETING BOARD OF DIRECTORS NOMINATION AND AUDIT ADVISORY EXECUTIVE MANAGEMENT COMMITTEE REMUNERATION BOARD COMMITTEE SOFTWARE SERVICES FINANCIAL MARKETING SOFTWARE PRODUCTS IR HR INTEGRATION LEGAL 32 arobs.com | arobsgrup.ro
Slide 33: Board of Directors
BOARD OF DIRECTORS Voicu Oprean Mihaela Cleja Aurelian Deaconu Ioan Nistor Razvan Garbacea Chairman and CEO Non-Executive Member Executive Member Independent Member Independent Member Founder of AROBS, Voicu Oprean Mihaela Cleja joined AROBS Aurelian Deaconu has been Ioan Alin Nistor, professor of R
Slide 34: Annex
Annex 34
Slide 35: Robotic Process Innovation Hub
TELEMATICS BUSINESS HR SOFTWARE PAYMENT ROBOTIC PROCESS INNOVATION & FLEET OPTIMIZATION MANAGEMENT HUB SERVICES SOLUTIONS AUTOMATION MANAGEMENT SOLUTIONS SOLUTIONS 35 arobs.com | arobsgrup.ro
Slide 36: Software Services
SOFTWARE SERVICES AUTMOTIVE & EMBEDDED SYSTEMS • AROBS reached the global level of an IT solution provider of ready-to-use LIFE SCIENCES systems and software services based on the latest technologies. • With 25 years of experience in software services, we address the IT needs of industries as divers
Slide 37: Automotive & Embedded Systems
AUTOMOTIVE & EMBEDDED SYSTEMS Telematic units Hybrid/Electric Infotainment Systems Vehicle Powertrain Body Control Modules Powertrain 15+ YEARS OF EXPERIENCE Engine Systems TEAM -International professionals Airbags in AUTOMOTIVE Radars COUNTRIES WE WORK WITH Car Keys Power closures Romania, Germany,
Slide 38: Our embedded software and systems expertise relies on
Our embedded software and systems expertise relies on: Embedded Embedded for Embedded for Embedded for systems for AUTOMOTIVE INDUSTRIAL IoT DOMOTICS SMART CITY CONSUMER MEDICAL DEVICES AEROSPACE MARITIME ELECTRONICS 38 arobs.com | arobsgrup.ro
Slide 39: Travel & Hospitality
TRAVEL & HOSPITALITY 24+ YEARS OF BUSINESS EXPERTISE PROJECTS -20+ long-term projects finished, 15+ complex ongoing projects CLIENTS – 10+ major market leaders as clients TEAM - 140+ experts in the highest technologies 39 arobs.com | arobsgrup.ro
Slide 40: Life Sciences
LIFE SCIENCES 20+ COMPLETED PROJECTS – on long-term collaboration EXPERTS – that generate solutions that impact millions of end-consumers 5+ ONGOING PROJECTS and more to come 40 arobs.com | arobsgrup.ro
Slide 41: IoT
IoT 12+ YEARS OF EXPERIENCE - Collaboration with major companies in the industry from Italy and France PROJECTS – 20+ projects finished during our collaborations, – 5+ projects in progress COMPETENCIES - Software solutions that impact thousands of people that use our applications in their homes or offi
Slide 42: Enterprise Solutions
ENTERPRISE SOLUTIONS 20+ YEARS OF EXPERIENCE COUNTRIES WE WORK WITH USA, Germany, UK, Norway, Finland, Netherlands APPROACHES Java, .Net, PHP, Node.js TECHNOLOGIES Big Data & Elasticsearch, CICD & continuous monitoring, Cloud native (AWS, Azure, Docker), High availability & scalability, Modern UI fr
Slide 43: Fintech
FINTECH 20+ YEARS OF EXPERIENCE PRODUCTS User-oriented fintech products TEAM - Collaborative teams with rigorous information security and cybersecurity INTERNATIONAL COLLABORATIONS TECHNOLOGIES & APPROACHES Blockchain, Angular 8/10, Reactive Programming - RxJS, Responsive Web Design Patterns - Flexbo
Slide 44: Biomedical Retail Automation
Biomedical Retail Automation • Berg Software is a top custom software development company with 30+ years of experience on the market. Enterprise Web Manufacturing • In 2021, Berg joined AROBS Group, to further grow Applications nationally and internationally. 44 Office berg-software.com Cybersecurit
Slide 45: AROBS Engineering
Medical Aerospace Devices • In over 20 years of designing software using cutting-edge technology, AROBS Engineering (formerly known as Enea Software Romania and IpDevel) has earned its reputation for quality and innovation. Maritime Industrial IoT • AROBS Engineering team use its experience in the s
Slide 46: Nordlogic
Custom Software Product • Nordlogic, a local group of companies specialized in developing Development Development custom software products and platforms, joined AROBS in 2022. • During its 17 years of existence, Nordlogic has developed and Software Quality implemented web and cloud applications as w
Slide 47: Intelligent Automation: AI, RPA, ML, Low Code
Intelligent Automation: AI, RPA, ML, Low Code • Intelligent Automation specialization of 100+ specialists located in Romania, the Netherlands, Belgium, Germany, and the UK. • The latest RPA (UiPath, Microsoft, Celonis, Outsystems), AI, and ML technologies 47 arobs.com | arobsgrup.ro
Slide 48: Telematics & Fleet Management
TELEMATICS & FLEET MANAGEMENT • A portfolio of +10.000 customers • +110.000 monitored vehicles trackgps.ro • LEADER of the Romanian market • Top 5 in Central & Eastern Europe, following the acquisition, by AROBS, of SAS Grup (now SASFleeT Tracking) and CDS GPS in Romania, Skyshield in Hungary, as we
Slide 49: Business Optimization Solutions
BUSINESS OPTIMIZATION SOLUTIONS Sales and distribution Complex tools for business automation, warehouse administration. inventory management, TMS systems, business intelligence software. 49 arobs.com | arobsgrup.ro
Slide 50: HR Management Solutions
HR MANAGEMENT SOLUTIONS truehr.ro • True HR for personnel management, recruitment, performance evaluation, time keeping, training, organizational charts, reporting, career planning. • dpPayroll for payroll calculation, staff cost analysis, and employee data reporting. 50 arobs.com | arobsgrup.ro
Slide 51: Innovation Hub
INNOVATION HUB • EXPERTISE in Education, Cluster Management Platform, Learning Management Systems, Telematics & Fleet Management Platform Add-Ons, Map Administration Portal. • PRODUCTS: • Digital School Books • RateWizz Channel Manager 51 arobs.com | arobsgrup.ro
Slide 52: Investor Relations contacts
Investor Relations e-mail address: [email protected] Voicu OPREAN Founder & CEO [email protected] Bogdan CIUNGRADI CFO [email protected] Zuzanna KUREK IR Manager 52 [email protected] Cristian PREVENDA IR Officer [email protected]
AROBS Transilvania Software — Investor Presentation (December 2023) on 6ix