Slides
Page 1
9 JANUARY 2025 · COPENHAGEN · SEB NORDIC SEMINAR From transformation year to future-ready
Page 2
2 DISCLAIMER ɾ 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 historical fact) relating to future events and Trifork's expected, anticipated or planned financial and operational performance. The words ‘may’, ‘will’, ‘will continue’, ‘should’, ‘expect’, ‘foresee’, ‘anticipate’, ‘believe’, ‘estimate’, ‘plan’, 'project', ‘predict’, ‘intend’, 'guidance' and 'outlook' or variations of these words, including negatives thereof, as well as other statements regarding matters that are not historical fact or regarding future events or prospects, constitute forward-looking statements. Other forward-looking statements can be identified in the context in which the statements are made. Trifork has based these forward-looking statements on its current views with respect to future events and financial performance. These views involve a number of risks and uncertainties, which could cause actual results to differ materially from those predicted in the forward- looking statements and from the past performance of Trifork. Although Trifork believes that the estimates and projections reflected in the forward-looking statements are reasonable, they may prove materially incorrect, and actual results may materially differ, e.g. as the result of risks related to the industry in general or Trifork in particular. As a result, forward-looking statements should not be relied on as a prediction of actual results. Trifork undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
Page 3
3 PRESENTERS CEO Jørn Larsen CEO since 1996 Year of birth 1966 Nationality Danish Educational backgroundMechanical engineering degree - Civil engineering degree in Computer Science - University of Aalborg Professional backgroundSerial entrepreneur in the Nordic technology sector with co-foundation of >50 startups From 1996: Founder and CEO of Trifork 1994-1995: Project Manager with Dator 1984-1989: Technical Naval engineer with Maersk Other directorships and executive roles Member of the Board of Directors of Dawn Health A/S, &Money ApS, Bluespace Ventures AG, XCI A/S (all Trifork Labs companies) Trifork ownership 19.5% Nationality CFO since 2007 Year of birth 1971 Danish Educational backgroundBachelor in Economics - Aarhus Business School, Denmark Professional background1997-2007: Co-founder and CFO of the IT infrastructure company Interprise Consulting (acquired by Trifork) 1996-1999: IT consultant, trainer and management consultant at Siemens Nixdorf / Siemens Business Services 1989-2000: Officer at the Royal Danish Airforce Other directorships and executive roles None Trifork ownership 1.3% CFO Kristian Wulf-Andersen
Page 4
4 We work closely with our enterprise and public customers to create cutting-edge and user-friendly digital solutions that tackle complex challenges and help make the world a better place. OUR PURPOSE 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.
Page 5
5 A brief overview Trifork Group Fully consolidated in Group P&L Minority ownership, not consolidated Financial assets on balance sheet Exit proceeds and valuation changes reflected in Group EBT Percentage shows the share of Segment/Group revenue as of Q3 2024 Book value in Trifork Labs as of Q3 2024. Trifork Profitable organic growth paired with acquisitions Private Public 61% 39% Inspire 3% Build 74% Run 24% Reporting sub-segments Revenue split Trifork Labs Tech innovators with synergies to Trifork segment Companies 25 Book value 75.4 EURm
Page 6
76BUSINESS UNITS 1,278EMPLOYEES 15COUNTRIES 50NATIONALITIES 40AVERAGE AGE TRIFORK SEGMENT
Page 7
2007 2009 2011 2013 2015 2017 2019 2021 2023 FINANCIAL DEVELOPMENT IN TRIFORK SEGMENT Historical double-digit growth but a difficult 2024 Revenue from acquisitions Organic revenue 87 106 115 159 185 208 2024G Trifork generally has recorded zero or small adjustments to EBITDA (1) 205-208 Q1-Q3 150.0 2024 Guidance Revenue growth 2017-23 CAGR: 22% 2007 2009 2011 2013 2015 2017 2019 2021 2023 29 32 35 20 13 11 25-27 Q1-Q3 17.9 Adjusted EBITDA, Trifork Segment 2024 Guidance EURm 2017-23 CAGR: 28% 2024G 1
Page 8
8 CUSTOMERS Wide customer base across multiple industries 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Single largest customerTop 10 customers Top 20 customers 202120222023 202120222023 202120222023 SHARE OF GROUP REVENUE Industrials Education Retail Healthcare Logistics Public Admin Consumer Brands Technology Aviation Financial Services Energy & Utilities Real Estate
Page 9
9 SOME OF OUR CUSTOMERS
Page 10
GO-TO-MARKET MODEL 10 A full-scale service provider Inspire-Build-Run is all about being a close tech partner to our customers Operate & Protect Innovation & Design Workshop Conferences INSPIRE BUILD RUN 2.5% 73.7% 23.8%OF 9M 24 REVENUE UNDERSTAND HOW TECHNOLOGY CAN SOLVE THE PROBLEM DELIVER SOLUTIONS THAT SOLVE THE PROBLEM ENSURE CONTINUITY AND COMPLIANCE WITH SAAS
Page 11
EXAMPLES OF TRIFORK’S CAPABILITIES VS CUSTOMERS AND COMPETITORS 11 New tech emerges ENTERPRISE ADOPTION SPATIAL COMPUTING VISION AI DIGITAL TWIN ENTERPRISE MOBILITY COMPETITIVE EDGE HIGHER COMPETITION GEN AI LOWER COMPETITION QUANTUM COMPUTING OBSERVABILITY SOFTWARE AS A MEDICAL DEVICE Building competitive edge before widespread adoption
Page 12
PERFORMANCE INITIATIVES 12 Business Unit Leader ESG, Legal, Marketing, FinanceCCO CROCFOCEO Perfect our Teal organization and “The Trifork Way” Building blocks to double-digit growth
Page 13
13 Sell more IP (Run) as part of Build solutions that can be repeated PERFORMANCE INITIATIVES Perfect our Teal organization and “The Trifork Way” Building blocks to double-digit growth
Page 14
SELLING OWN IP AS PART OF WIDER SOLUTIONS 14 Platforms, Products & Components Vision AI - Quality controlCorax - AI enablement Vision Pro - Components Trifork Health Platform - Digital care Digital Twin - Asset connectivity Arkyn - Enterprise mobility MPI - Planning intelligence Cheetah - Central data platform Contain - Hybrid cloud stack Smart Device - IIoT & Industry 4.0 Smart Building Platform - Sustainability data Axon Framework - Message-driven applications Quality Intelligence Platform Promon App Shielding Digital exams Drones - Maintenance Aviation - Staff mobility and training AI Assist Focus on internal IP to support growth and margins
Page 15
SELLING OWN IP AS PART OF WIDER SOLUTIONS 15 Platforms, Products & Components Vision AI - Quality control Vision Pro - Components Trifork Health Platform - Digital care Digital Twin - Asset connectivity Arkyn - Enterprise mobility MPI - Planning intelligence Cheetah - Central data platform Contain - Hybrid cloud stack Smart Device - IIoT & Industry 4.0 Smart Building Platform - Sustainability data Axon Framework - Message-driven applications Quality Intelligence Platform Promon App Shielding Digital exams Drones - Maintenance Aviation - Staff mobility and training Corax - AI enablement AI Assist Focus on internal IP to support growth and margins
Page 16
16 -Our unit Vilea worked with Swiss for many years -Expanded to Lufthansa and Edelweiss -Two new negotiations ongoing in Europe and US -Supported by global tech partners -Customer engagement on training pilots and crew with Apple Vision Pro EXAMPLE OF IP SALES STRATEGY Aviation
Page 17
-Bluespace Ventures signed in Switzerland in 2022 -Swiss Post announced as new customer in November 2024 -Expecting to sign another EMEA customer in the short-term Trifork Health Platform EXAMPLE OF IP SALES STRATEGY 17 TRIFORK HEALTH PLATFORM (THP) BLUESPACE VENTURES & SWISS POST
Page 18
18 Sell more IP (Run) as part of Build solutions that can be repeated Increase revenue per customer PERFORMANCE INITIATIVES Perfect our Teal organization and “The Trifork Way” Building blocks to double-digit growth
Page 19
19 Manual inbound quality control Return unknown Forgets gate scan Loads on wrong truck Suboptimal route planning Breakage cause unknown Little time to sell Insufficient data for energy optimization Low forecast accuracy Manual quality control Paper-heavy QM Shelf status unknown Manual ingredients inventory Frequent manual inventory counts Use of old scanners and PC on trucksSuboptimal production planning Unknown gate turnaround time Challenge difficulty HardMediumEasy GO-TO-MARKET STRATEGY Increasing lead conversion and impact Manual pricing Manual inventory App is slow Little trust in numbers Long lists Sell to C-level More outbound sales efforts (e.g. ride-alongs) More services per customer Sell value creation, not hours
Page 20
20 Sell more IP (Run) as part of Build solutions that can be repeated Increase revenue per customer Accelerate partnerships with tech companies PERFORMANCE INITIATIVES Perfect our Teal organization and “The Trifork Way” Building blocks to double-digit growth
Page 21
Deeper partnerships has proven successful in U.S. Experience Platform & AI Engineering Application Development TECH PARTNERSHIPS 2020 2021 2022 2023 2024 est. 9.2 6.8 4.3 2.8 13.5 CAGR 48% U.S. REVENUE, EURMCORE THREE-LAYERED U.S. OFFERING OTHER SELECTED PARTNERSHIPS ACROSS THE GROUP
Page 22
22 Sell more IP (Run) as part of Build solutions that can be repeated Increase revenue per customer Accelerate partnerships with tech companies Acquisitions and strategic Trifork Labs collaborations PERFORMANCE INITIATIVES Perfect our Teal organization and “The Trifork Way” Building blocks to double-digit growth
Page 23
23 Founded 1996 Interprise Consulting A/S (IT infrastructure) 2007 2011 Erlang Solutions Ltd. (Software infrastructure) 2012 Orange11 B.V. (Custom software) Open Credo Ltd. (Platform engineering) 2015 2021 Vilea GmbH (Enterprise mobility) StrongMinds ApS (Cloud solutions) IBE AG (Test systems) Chapter 5 A/S (Fintech) 2023 2024 Spantree LLC (Custom software) Sapere Group ApS (SAP development) Marstrand Innovation A/S (Smart Enterprise) 2013 2016 Denmark >50% of revenue again due to M&A Markets outside Denmark account for >50% of revenue 2017 Markets outside Denmark account for 32% of revenue 2022 Took over YOW! conference brand 2018-19 Invokers A/S (Smart Enterprise) Testhuset A/S (Testing) 2020 Nine A/S (Public admin) SAPBASIS ApS (SAP development) Netic A/S (Cloud Operations) 2014 Duckwise ApS (Design) INORGANIC GROWTH We will continue our acquisition strategy Delta Software A/S (Fintech)
Page 24
SYNERGIES WITH TRIFORK LABS Innovation speedboats Trifork spinoffs Go-to-market External innovators FAUNA 24 -Trifork earns fees on innovative Labs products sold to customers -Trifork invoices services to Labs companies -Labs companies grow with Trifork’s help -Growth leads to valuation increase in Labs companies -Risk shared with co-investors -Exit proceeds go into Trifork’s overall capital allocation framework Grantet
Page 25
-5 0 5 10 15 20 25 30 35 40 201620172018201920202021202220232024 First significant exit since IPO completed in December 25 -0.8 9.7 9.8 9.0 39.2 3.3 4.4 4.9 9.6Average 9.9 3.9 TRIFORK LABS 13.5 9M 2024 + Q4 announced EBT from December transaction to be booked in Q4 EBT, Trifork Labs -Shareholders of a Labs company sold 30% of the existing shares to a large institutional investment fund -Trifork Labs participated pro-rata -Trifork Labs remains a significant minority shareholder after the transaction -Valuation exceeds the book value of the company previously recorded -EBT effect EUR 9.6m with impact on both realized and unrealized gains recorded in Trifork Labs.
Page 26
Update on market sentiment and cost initiatives
Page 27
Private is muted MARKET SENTIMENT 27 Private Public 61% of revenue 39% of revenue Revenue split as of Q3 2024 -Significantly wider pipeline after investments in business development -Anticipating “ketchup effect” when customers gain confidence again -Good traction with outbound sales efforts despite muted market sentiment -Increased deliveries on existing agreements -Three significant tender wins since August -15% growth in Q3 -Backlog and pipeline looking good for 2025 DK Public activity increasing
Page 28
ADJ. EBITDA In recent years, adjustments to EBITDA have been zero or minimal(1) Re-establishing margins with EURm 10 cost savings ▪︎ Extending our cost savings program with the aim to reduce overall annual cost by around EURm 10 with full positive EBITDA effect in 2025 - 10% temporary reduction in selected management remuneration - Further rightsizing in low-performing units to reach better utilization rates - General reduction of costs, e.g. unused office space, travel, etc. ▪︎ Identifying and executing on cost savings is progressing well 2007 2009 2011 2013 2015 2017 2019 2021 2023 29 32 35 20 13 11 25-27 Q1-Q3 17.9 Adjusted EBITDA, Trifork Segment 2024 Guidance 2017-23 CAGR: 28% 2024G
Page 29
-4.0% to -2.5% organic growth 29 Expecting a return to growth with good margins 2024 GUIDANCE AND MID-TERM TARGETS Guidance 2024 Trifork Group revenue EURm 205-208 Trifork Segment adj. EBITDA Trifork Group EBIT EURm 25-27 -1.4% to +0.0% total growth 12.0% - 13.2% margin 3.8% - 4.9% margin Inorganic revenue (based on announced transactions) is expected to be approx. EURm 5.4 in 2024(1) Mid-term target announced at CMD in May 2024 15-25% annual growth 16-20% 10-15% organic growth 1.5x May temporarily exceed depending on M&A opportunities 10-14% Trifork Group NIBD/adj. EBITDA 2024-2026 CAGR 2026 2026 2024-2026 No guidance Q3 2024: 1.8x1 EURm 8-10 2
Page 30
Allocating capital with mid- and long-term horizon INVESTING IN OUR FUTURE 30 Organic growth -Organic growth historically 2/3 of total growth M&A -M&A historically 1/3 of total growth -Historically funded by own cash flows and little debt -Improved M&A pipeline with more reasonable valuations -Primary focus on existing markets Shareholder distribution -25% of net cash profit belonging to Trifork shareholders (dividends and buybacks) -Subject to capital needed for growth and maintaining gearing target Trifork Labs -Very strong historical track record -Focus on strategic and synergistic investments -Q3/24: Net interest-bearing debt to adj. EBITDA of 1.8x -Mid-term 1.5x with possibility to exceed short-term Net debt management TOP 3 PRIORITIES
Page 31
Long-term secular growth drivers Full-circle and low-risk business model Software innovation specialists Three decades of profitable growth Effective and agile teal organization Enabling customers to become sustainable Successful and profitable innovation model We change the world with software. Q&A
Page 32
Appendix
Page 33
-0.8% decline in the core business in Q3 FINANCIAL HIGHLIGHTS IN Q3 33 ▪︎76 business units ▪︎1,278 headcount ▪︎25 active startups ▪︎>1.0m GOTO subscribers online REVENUE GROWTH KEY FINANCIALS KEY STATISTICS 1) Adjusting for hardware and third-party license revenues, organic revenue declined by -5.9% in Q3/2024 Inorganic growth -1.8% +4.9% -1.9% +2.6% 12.3% Q3 2024 Trifork Group EBIT Q3 2024 Trifork Group EBIT margin Q3 2024 Trifork segment adjusted EBITDA Q3 2024 revenue Q3 2024 organic revenue growth EURm 5.8 -6.8%EURm 47.1 2.4%EURm 1.1 Net debt at 30 September 2024 Leverage ratio (NIBD / Adj. EBITDA) 1.8xEURm -49.7 Q3 2024 Trifork segment adj. EBITDA margin (1)
Page 34
34 Inspire ▪︎ Q3 seasonally a quarter with low conference activity ▪︎ Improved earnings momentum continued with EURm 0.8 less negative EBITDA in Q1-Q3 compared to previous year ▪︎ We see good level of workshop activities but too early to say if this is a leading indicator for better Build growth in 2025 Innovation & Design Workshop Conferences TRIFORK SEGMENT - PERFORMANCE UPDATE Q3
Page 35
35 Build ▪︎ Revenue -2.9% vs. Q3 2023, weaker than expected ▪︎ Weak adj. EBITDA margin of 11.3% due to low revenue growth, low utilization, and costs of reorganization ▪︎ Weakness continues to be primarily driven by Private sector customers, especially in Denmark, UK, and some low-performing BUs ▪︎ Public Denmark grew 15% in Q3 due to ramp-up on framework agreements won in previous quarters and years ▪︎ Public Denmark pipeline has improved after additional wins with e.g. Danish Ministry of Taxation and Danish Business Authority ▪︎ Good momentum in US with 56% growth in Q3 and continuously improving pipeline indicating our US growth strategy is working TRIFORK SEGMENT - PERFORMANCE UPDATE Q3
Page 36
36 Run TRIFORK SEGMENT - PERFORMANCE UPDATE Q3 Operate & Protect ▪︎ Revenue increased by 2.2% in Q3 (all organic) ▪︎ Adjusted for volatile and non-core hardware and third- party licenses, revenue growth was 8.4% ▪︎ Adj. EBITDA margin of 33.5% in Q3 ▪︎ Good sales pipeline in both Private and Public sector in our operations offering, supported by our Contain platform which now also are sold to on-prem installations. ▪︎ Working on deconsolidation of security managed services unit into a Labs company, seeking to join forces with external partner to gain critical mass and synergies with complementary offerings
Page 37
37 TRIFORK SEGMENT Main events in Q3 ▪︎ 1,184 FTEs on average (Q3 23: 1,115) and 1,278 employees in total (Q3 23: 1,202) ▪︎ LTM employee churn was 19.5% (Q2 24: 17.5%) 4.1% impact from reorganizations ▪︎ Sick leave LTM Q3 24 was 3.3% (LTM Q3 23: 2.1%) ▪︎ Held sessions with the Danish Health Authority and a large Danish municipality, discussing the future of data management, AI, and Apple Vision Pro in healthcare ▪︎ Keynote presentations at Copenhagen Fintech Week on how to modernize banking infrastructure and keep them secure from intrusion ▪︎ Co-organized the inaugural PlatformCon London Live 2024, drawing over 300 attendees Partnerships and trade shows Organization
Page 38
38 TRIFORK SEGMENT Energy and climate footprint solution for global B2C enterprise Consumer loan platform for Sparxpres Fraud detection for UK payment provider Expanded cloud operations contract for large Danish enterprise Adherence to NIS2 and DORA cyber regulations in financial services SAP mobile maintenance for Banedanmark System update for global gaming platform Apple Vision Pro solution for global medtech company Some of our customer engagements in Q3
Page 39
Priorities Action points Progress in Q3 Maintain high level of business development -Open US and Swiss markets further, potentially with acquisitions -Broaden our opportunity pipeline further in all markets -Expanded US team further with high growth rates as result -Conversion of leads to contracts in new Oman office -Ride-along activities continue Sharpen business model in Inspire -Conference execution and how to work with sponsors -Organizational setup -Online GOTO community -Workshops -Sold out GOTO Copenhagen and commercial improvement in GOTO Chicago (both events taking place in Q4) -Reduced cost levels driving lower negative earnings Sharpen business model in Cyber Protection -More focused services and changing team structure -Capturing more of the expected market growth from NIS2, DORA, CRA regulations -Process ongoing to create new strategic partnerships in the managed security services business to reach critical mass faster -Good customer traction on Splunk services -Traction with DORA in financial services after e-book release Increase Run-business with more in-house products -Further develop own products -Build more solutions using in-house products as door- opener -Continued traction with Contain cloud platform -Seeing more eHealth, vision AI and Vision Pro engagements -Launched aviation product marketing initiatives -Launched AI enabling platform Corax 39 TRIFORK SEGMENT 1 2 3 4 Progressing on strategic initiatives for 2024
Page 40
Working towards ESG targets and preparing for CSRD ESG - INNOVATING FOR A BETTER WORLD 40 ENVIRONMENTSOCIALGOVERNANCE Science-based emission targets and transition to green electricity Empowering gender diversity Governance excellence and ethical conduct 1 Baseline 2023 2 By spend in “purchased goods and services" and "capital goods” 3 Sustainability principles still to be defined * Targets have been achieved and now need to be maintained 2030 70% reduction in Scope 1 and 2 emissions1 2030 100% renewable electricity 2026 70% of Trifork’s suppliers2 have set science-based emission targets 2030 Minimum 30% of underrepresented gender in our total workforce and among people leaders Today* Minimum 40% of underrepresented gender in our board of directors 2026 100% of suppliers are evaluated based on sustainability principles3 Today* Zero corruption and bribery incidents
Page 41
FINANCIAL REVIEW 41 REVENUEQ3 2024 ▪︎ Revenue of EURm 47.1 equal to -1.8% decline ▪︎ Growth impacted by: ▪︎ EURm 0.5 less revenue from non-core hardware and third-party licenses in Run. If this is excluded decline was -0.8% ▪︎ Continued slow decision-making amongst customers in private sector ▪︎ Higher effect than expected from customer budget cuts in Q2 ▪︎ As usual, no revenues recorded in Trifork Labs companies are included as Trifork Group revenue Inorganic growth -1.8% +4.9% -1.9% +2.6% Trifork Group / Trifork Segment revenue
Page 42
FINANCIAL REVIEW 42 Q3 2024 ▪︎ Adj. EBITDA ▪︎ EURm 5.8, equal to margin of 12.3% (Q3 23: 14.5%) ▪︎ Decline of 16.5% explained by: ▪︎ Lack of positive revenue growth ▪︎ Lower Build margins from lower utilization ▪︎ Negative result in Cyber Protection ▪︎ Cost of rightsizing ▪︎ Continued investments in business development ▪︎ Launching cost savings program of around EUR 10m with full effect in 2025 -23.0% 12.0% 15.2% ADJUSTED EBITDA Growth Margin -16.5% 12.3% 14.5% Trifork Segment - Performance
Page 43
FINANCIAL REVIEW 43 Trifork Segment - Performance REVENUE BY SUB-SEGMENTS (EURM) ADJ. EBITDA AND MARGINS BY SUB-SEGMENT IN 9M 2024 -42.6% 13.4% 22.0% 12.0% Inspire Build Run Other
Page 44
FINANCIAL REVIEW 44 Q3 2024 ▪︎ EBIT ▪︎ 2.4% margin (Q3 2023: 6.6%) impacted negatively by same factors as adj. EBITDA ▪︎ Slightly increased depreciations/amortizations from Chapter 5 and Spantree acquisitions and new office leases Trifork Group - Performance EBIT -64.1% 2.4%6.6% Growth Margin -63.5% 3.0% 8.0%
Page 45
FINANCIAL REVIEW 45 Q3 2024 ▪︎ Revenue EURm 0.8 in Q3 (+11.6%) ▪︎ No larger conference activities in the quarter ▪︎ Adj. EBITDA EURm -0.6 (Q3 2023: EURm -0.9) ▪︎ Good planning for GOTO Copenhagen in Q4 ▪︎ Expecting result in Q4 to be around break even to a minus of EURm 0.2 and end the year about EURm 1.0 better than in 2023. Trifork Segment - Inspire +11.6% ADJUSTED EBITDAREVENUE +8.2% 0.7 0.8 3.4 3.7 6.3 -0.9 -2.4 -0.6 -1.6
Page 46
FINANCIAL REVIEW 46 Q3 2024 ▪︎ EURm 34.5 revenue (-2.9%) ▪︎ Continued soft market environment in Private Denmark, but Public Denmark getting better ▪︎ UK weak while US momentum is strong ▪︎ Adj. EBITDA margin of 11.3% decreased compared to Q3 2023 due to growth investments, lower capacity utilization and cost of rightsizing. Trifork Segment - Build 18.9% -29.3% 13.4% 18.5% -2.9% -40.7% 11.3% Inorganic growth +6.7% -0.3% +3.5% ADJUSTED EBITDA Margin REVENUE 35.5 32.1 110.9 106.6 149.6 6.6 21.0 3.9 14.8
Page 47
FINANCIAL REVIEW 47 Trifork Segment - Run Q3 2024 ▪︎ Revenue of EURm 11.6 (+2.2% organic) ▪︎ EURm 0.5 less hardware and third party licenses in the quarter. Adjusted for this, revenue growth was +8.4% ▪︎ Adj. EBITDA margin of 33.5% (Q3 2023: 23.2%) ▪︎ Improvements from new engagements and lower implementation costs +2.2% +48.0% 23.2% 33.5% ADJUSTED EBITDA Margin -7.2% -7.0% 22.0% 22.0% REVENUE 11.4 11.6 38.1 35.4 51.3 2.6 8.4 3.9 7.8
Page 48
FINANCIAL REVIEW 48 Trifork Segment - Run revenue split 4,000 8,000 12,000 16,000 Q2/2020 Q4/2020 Q2/2021 Q4/2021 Q2/2022 Q4/2022 Q2/2023 Q4/2023 Q2/2024 15.7% 20.6%22.7% 28.5% 16.4%23.5% 22.6% 28.3% 16.2%12.1% 19.0% 20.1% 21.1% 21.7% Hosting and security Licenses and support Third-party licenses Hardware Adj. EBITDA margin 23.2% 31.2% 13.1% 19.2% “Third-party licenses” disclosed separately from “Licenses and Support” since Q1(2023) with comparative figures released quarterly 33.5%
Page 49
49 Growing profitably, paying dividend Control over cash burn, owned by enterprise/PE Funding round within 12 months, operationally performing well Good performance in Labs Top 10 Position 6 – 10 ALPHABETIC ORDER Arkyn Studios Field and factory SaaS on top of SAP C4 Media Software media and conferences Develco Innovative electronics and embedded software Dryp ExSeed Health Software as medical device for fertility testing 18.3% POS. 6–10 6.7% REST 75.0% TOP 5 30 SEPTEMBER 2024 EUR 75.4m BOOK VALUE Position 1-5 ALPHABETIC ORDER AxonIQ Software development framework Bluespace Ventures The future of Swiss digital health Dawn Health Regulated software for pharma and medtech Promon Cyber protection for apps XCI Cyber crime investigation Urban water infrastructure monitoring FINANCIAL REVIEW
Page 50
FINANCIAL REVIEW 50 Partial exit in one investment to contribute additional EURm 9.6 to EBT in Q4 EBT (EURM) INVESTMENTS (EURM) Invested unrealized gains from deconsolidation of Group companies Accumulated net exit proceeds and dividends (1) (1) Invested cash in current portfolio Accumulated unrealized gains -5 0 5 10 15 20 25 30 35 40 2016 2017 2018 201920202021202220232024 -0.8 9.7 9.8 9.0 39.2 3.3 4.4 4.9 9.6Average 9.9 3.9 13.5 9M 2024 + Q4 announced EBT from December transaction to be booked in Q4 EBT, reported Incl. EURm 9.6 from Dec transaction
Page 51
FINANCIAL REVIEW 51 Q3 2024 ▪︎ Operating cash flow of EURm 4.9 (Q3/23: 11.6) ▪︎ Investing activities of EURm -6.0 (Q3/23: -1.5) ▪︎ Financing activities of EURm 3.5 (Q3/23: -1.4) ▪︎ Net interest-bearing debt of EURm 49.7 -1.8x net interesting-bearing debt to adj. EBITDA -Treasury shares worth EURm 4.1 not included in calculation of NIBD -Trade receivables EURm 3.4 higher than normal. Expected to normalize before year end. -Expecting a reduction of net debt in the fourth quarter based on improved operating cash flow and low level of investment activities Trifork Group - Cash Flow & Financial Position 2.2x Leverage ratio (NIBD/adj. EBITDA) NET INTEREST-BEARING DEBT -0.6x -0.1x 0.9x 1.8x