Admicom Oyj:Investor presentation
January 15th 2021
This presentation is not a Company Description described in the Securities Markets Act (746/2012). This presentation is solely for information purposes and is not intended to form part of or be the basis of any decision making by its recipients. The information contained herein shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Several risks are associated with investing in the company’s shares, many of which can be significant and are related to the operating environment and nature of company. If an investor is considering investing in the company’s shares, it is advisable that he or she is familiarized with the Company Description published on the company’s website at www.admicom.fi/sijoittajille before making any investment decision.
Dividend proposal :0,91 €/share
Revenue growth202040 %
EBITDA-%202045 %
KEY FIGURES 2020
Recurring monthly invoicing
91 %
Earnings per share1,36 €/share
FASTEST FINANCIAL REPORTING
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34
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31
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3 41 2
0
5
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15
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25
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35
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45
VIIKKO 1 VIIKKO 2 VIIKKO 3 VIIKKO 4 VIIKKO 5 VIIKKO 6 VIIKKO 7 VIIKKO 8 VIIKKO 9 VIIKKO 10 VIIKKO 11 VIIKKO 12 VIIKKO 13 VIIKKO 14
Full year results announcements 2021 (First North and OMX Helsinki Small Cap)
15.1.2021
Q1 release 2.4.2021
WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 WEEK 6 WEEK 7 WEEK 8 WEEK 9 WEEK 10 WEEK 11 WEEK 12 WEEK 13 WEEK 14
HIGHLIGHTS 2020
Admicom acquires Tocoman Oy
Through the acquisition, Admicom will strengthen its already significant market position
as a provider of construction software.
Authorization to Admicom’s accounting team
Admicom's accounting team received an official stamp to guarantee the quality of its service when it was authorized
and accepted as a member of the Finnish Financial Management Association. For the third year in a row,
customers give our accounting team a 9/10 overall rating.
Share continues to have positive track record
Although the Covid-19 pandemic have affected Admicom's share price, the share price trend has
remained positive in 2020. By October, the share value has increased tenfold since the listing.
THE GROWTH STORY ENTERS A NEW PHASE
Development phase
2004 - 2010
2021 – 2023Target: > 20 % / year
0,6 1 1,7 2,5 3,54,7
5,98,1
11,5
15,6
21,9
-0,2 0 0,1 0,2 0,6 1,1 1,9 2,94,8
7,29,6
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Liikevaihto M€ EBITDA M€
Building Services Engineering
2010 – 2013+ 61 % / year
Building Services EngineeringConstruction
2013 – 2017+ 56 % / year
Building Services EngineeringConstructionManufacturingLiteAcquisition of Tocoman Oy
2017 – 2020+ 39 % / year
Target: > 30 % / year
Aiming to growover 20 % / yearwith an EBITDA of 40-50 %
A new industry-specificorganizationmodel
Change or CEO during 2021
Strongeremphasis on inorganic growth
Revenue M€
STRATEGY 2021-2023
Organic growth Inorganic growth Critical success factors
1. Organic growth from coretarget groups and adaptationto the Covid-19 pandemic
2. New investment areas, e.g. Tocoman’s cloud-basedproduct versions and partnerships / industrynetworks
3. New services and additionalfeatures for existingcustomers
1. Wider service to existingcustomer segments in synergy with existing coreoperations
2. Technological innovations and the accumulation of business critical know-how
3. Securing market share and responding to competition
4. Competitive opportunities in international markets
1. Strengthening the forerunnerstatus through automationand reporting intelligence
2. Mobile features and usability
3. Comprehensive solution of sector-specific needs
4. Nurturing the entrepreneurialservice attitude, developingstaff competence and fostering pride in our team
CORE MARKETS *MARKETS AND COMPETITION
* Based on Admicom’s market data
-
20
40
60
80
100
pienikeskikokosuuri
MEU
R
Total 190 MEUR market potentialsegmented by customer size
Kokonaismarkkina AdmicomTotal marketbig mid small
Engineering and installations(35-45 meur)
Construction(75-85 meur)
Industrial manufacturing(65-75 meur)
COMPETITION
Admicom has many partialcompetitors but it remains theonly one to provide extensiveindustry-specific SaaS ERP solution in its target groups.
• In large customer segmentcompetition includes alsoSAP, MS Dynamics AX, etc. tailored ERP solutions.
• In micro customer segmentcustomers prefer easy to deploy and use solutions.
MARKETS AND COMPETITION
FINANCIAL DEVELOPMENT IN 2020
Admicom Oyj 2020 2019 Change-%
Revenues, 1 000 € 21 917 15 641 40 %
EBITDA, 1 000 € 9 954 7 155 39 %
% of revenue 45,4 % 45,7 %
Operating profit, 1 000 € 8 618 6 613 30 %
% of revenue 39,3 % 42,3 %
Profit for the period, 1 000 € 6 699 5 291 27 %
% of revenue 31 % 35 %
Earnings per share, EPS € 1,36 1,09 25 %
Employees at the end of period 162 145
Comments Organic growth +22 % Annual adj. fees impact 0 %
Admicom Finland has strong profitability Tocoman’s profitability level has
strengthened, but continues to dilute thegroup’s figures
The growth in operating profit relative to EBITDA growth was slowed by theincrease in goodwill due to Tocoman
The number of shares increased slightlywhen shares were used as compensation in the Tocoman acquisition
The number of employees was increasedmainly by Tocoman (+16 employees)
MAIN ELEMENTS OF REVENUE GROWTH 2020
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0
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7000
2018 2019 2020
Yritysostot
Uusmyynti
Lisämyynti asiakkaille
Tasauslaskutus
Asiakaspoistuma
Acquisitions
New sales
Upselling
Annual adjustment fees
Customer churn
New sales by customer segments (2020)
Approximately 91 % of Admicom’s revenue in 2020 consisted of recurring invoicing.
Revenue by services (2020)
Construction; 49%Building Services Engineering; 33%
Manufacturing; 15%
SaaS; 72%
Accounting Services; 21%
Education and Consulting Services; 5%Other; 2%
REVENUE AND SALES IN 2020
KEY FIGURES BY QUARTER (2020)
Q1 Q2 Q3 Q4
Revenue growth +43 % +38 % +44 % +37 %
New sales (net) +29 % +20 % +22 % +16 %
Annual adj. fees + 5 % -2 % 0 % -1 %
Acquisitions +9 % +20 % +22 % +22 %
EBITDA-% 42 % 44 % 52 % 43 %Change from the comparisonperiod in percentage points +3 -8 +2 +2
Comments Organic growth clearly slowed down
towards the end of the year as Covid-19 impacted our salesnegatively.
The impact of annual adjustmentfees on growth decreased at theend of the year.
The impact of the Tocomanacquisition on growth strengthenedtowards the end of the year.
Profitability developed positively, with the exception of Q2.
» In 2021, the company estimates that revenue growth will be10-20 % with a profitability of 40-50 % EBITDA range.
» Uncertainty in revenue growth is created by:» Ongoing Covid-19 pandemic that makes new sales and
forecasting more challenging» The slowdown in the growth of the construction
industry is likely to reduce the revenue from annual adjustment fees (5 % of revenue in 2020)
» Likely increase in loss of customers due to bankruptcies» Development of sales of new products and services» Implementation of projects aiming at inorganic growth
» The development of profitability is supported by the adjustment measures implemented in 2020 and the progress of Tocoman & Admicom –integration.
Revenue growth2021
10-20 %
EBITDA 202140-50 %
FINANCIAL INFORMATION AND OUTLOOK 2021
KEY FIGURES 2020
ADMICOM OYJ 1-12/2020 1-12/2019 Change-% 7-12/2020 7-12/2019 Change-%
Revenue, 1 000 € 21 917 15 641 40,1 % 11 178 7 977 40,1 %EBITDA, 1 000 € 9 954 7 155 39,1 % 5 315 3 642 45,9 %
% of revenue 45,4 % 45,7 % 47,5 % 45,7 %Operating profit, 1 000 € 8 618 6 613 30,3 % 4 589 3 385 35,6 %
% of revenue 39,3 % 42,3 % 41,1 % 42,4 %Profit for the period, 1 000 € 6 699 5 291 26,6 % 3 563 2 710 31,5 %
% of revenue 30,6 % 33,8 % 31,9 % 34,0 %Return on equity, % 34,5 % 38,0 % 34,4 % 38,8 %Return on investment, % 44,4 % 48,0 % 44,3 % 48,5 %Equity ratio, % 85,5 % 81,0 % 85,5 % 81,0 %Gearing ratio, % -61,4 % -100,0 % -61,4 % -100,0 %Earnings per share, EPS € 1,36 1,09 24,7 % 0,72 0,56 29,6 %Balance sheet total, 1 000 € 26 335 20 147 26 335 20 147Employees at the end of period 162 145 162 145Amount of shares at the end of period, 1 000 4 925 4 883 4 925 4 883Amount of shares by average (adjusted by issue of shares), 1 000 4 918 4 845 4 925 4 853
PROFIT AND LOSS STATEMENT 2020
1 000 EUR 1-12/2020 1-12/2019REVENUE 21 917 15 641Other operating income 4 52Variable costs -1 059 -540Staff expences -8 209 -6 056Depreciation and reduction in value -1 336 -541Other fixed operating costs -2 699 -1 942OPERATING PROFIT (-LOSS) 8 618 6 613Financial income and expencesOther interest income and other financial income 7 18Interest and other financial expenses -16 -3
PROFIT (LOSS) BEFORE APPROPRIATIONS AND 8 609 6 629TAXESIncome taxes -1 910 -1 338PROFIT (LOSS) OF THE FINANCIAL YEAR 6 699 5 291
BALANCE SHEET 20201 000 EUR 12/2020 12/2019ASSETSNON-CURRENT ASSETSIntangible assetsCapitalized development costs 379 570Intangible rights 134 242Other intangible assets 5 8Company goodwill 9 486 203
Tangible assetsMachinery and equipment 251 243
InvestmentsOther shares and righs of ownership 3
NON-CURRENT ASSETS IN TOTAL 10 258 1 265
CURRENT ASSETSInventoryRaw materials and consumables 15 13
Inventory in total 15 13
Short-term receivablesAccounts receivables 2 032 1 798Other receivables 124 71Prepayments and accrued income 89 679
Short-term receivables in total 2 244 2 547
Cash at bank 13 818 16 322
CURRENT ASSETS IN TOTAL 16 077 18 882
ASSETS IN TOTAL 26 335 20 147
1 000 EUR 12/2020 12/2019EQUITY AND LIABILITIESCAPITAL AND RESERVES
Share capital 106 106Other reserves 12 489 9 489Retained earnings / loss 3 216 1 441Profit / loss of the financial year 6 699 5 291
CAPITAL AND RESERVES IN TOTAL 22 510 16 327
CREDITORSShort-term creditors
Trade creditors 54 131Other creditors 812 699Accruals and deferred income 2 958 2 990
CREDITORS IN TOTAL 3 825 3 821
EQUITY AND LIABILITIES IN TOTAL 26 335 20 147
SaaS ERP for small and medium sized businesses