Points To Profit

Transcription

POINTS TO PROFITQ1 2022

TODAY’S PRESENTERErik GrohmanCEO CEO since 7th March 2022 Background in online retail & services (EssilorLuxottica, Zmarta,Betsson) and FMCG (Unilever, Scan) Master of Science in Business Administration and Economics,Stockholm University

AWARDIT IN BRIEFMARKET LEADER IN LOYALTY PROGRAMS AND GIFT CARDSWITH A BROAD OFFERING TO CATER FOR ALL NEEDSStrategy & ConceptDesign & UXSaaS-platform PartnershipsLoyalty marketplaceCustomer supportATTRACTIVE FUNDAMENTALS FUELING GROWTH AGENDALargest company and platform for loyalty-, incentive- and gift cardprograms in the Nordics. Provided continued strong organic growth1bn is within reach 2022!Our vision is to become one of the absolute leaders in our industry onthe European market. On our journey we will continue to help buildbetter customer relationships and to increase the value of customerdata not only for businesses but also for their customers.SaaS-toolbox that covers all parts of the loyalty- incentive- and giftcard program value chain 250 programs reaching more than 15 million consumersFOUNDED IN 1999Strong organic growth and rising profitability10 ACQUISITIONS SINCE IPO IN DEC 2017Two business areas; Loyalty & Gift cards135 EMPLOYEES10 completed acquisitions since IPO in Dec 2017.OFFICES IN STOCKHOLM (HQ), GOTHENBURG, COPENHAGEN ANDHAMBURG

FY 2017-2021 IN BRIEFCURRENT PIPELINE SUPPORTS ACCELERATED GROWTHRevenueSEK millionUNDISPUTABLE EARNINGS GROWTHEBITAPer ITAMarginEBITASEK 020211Exclusively organic growth until 20171Profitable growth adding EBITA per share. 2021 EBITAwas 93,2m. 149% growth of which 32% organic.2M&A and organic growth from 2018 and forward2Increased gross margins and EBITA-margins over time32020 revenue adversely impacted by the pandemic. 2021 back tohigh growth, 89% of which 24% organic, but some areas are stillbehind vs 2019. Revenue was 529m.3Proven highly scalable business model

Q1 WAS A QUARTER OF CONTINUED STRONG REVENUE GROWTHQUARTERLY ACCELERATING REVENUESEBITA DEVELOPMENT-15% 169%RevenueSEK million 169% growth of which approx. 40% organic driven by strong performance -15% EBITA in Q1 2022 (5,7 MSEK) vs Q1 2021 (6,6 MSEK)by Awardit loyalty programs and gift cards. 30% organic growth in April. Negative impact from short term one off events; a pricing error MBXP, PD and TIC contributed 80,3 MSEK of revenues Zupergift growth of 128% Slower market in Germany impacted revenues negatively for PD(-1,4 MSEK) and a customer bad debt loss (-2,7 MSEK) Negative impact from seasonality of MBXP business (-1,4 MSEK) and PDmarket slowdown (-1,4 MSEK)

Q1 ADJUSTED EBITA OF 48% AND HEALTHY GROSS MARGINSADJUSTED EBITA DEVELOPMENTGROSS MARGIN DEVELOPMENT 48%Gross profitMargin EBITA adjusted for the negative impact from the one off events is 9,8MSEK (5,7 1,4 2,7 MSEK) Gross profit margin was 27,8% in Q1 2022 (46,6 MSEK) vs 30,0% in 2021(18,7 MSEK) Adjusted EBITA in Q1 2022 (9,8 MSEK) is 48% vs Q1 2022 (6,6 MSEK)Added business and volumes from MBXP, PD and TIC dilutive to totalmargin percentage, with a combined margin of 24,1% in the quarter Gross profit margin of organic business was 31,2%, up from 30,0% in 2022

AWARDIT TIMELINEAcquisition ofremaining shares inRewardit ABAcquisition of assetsGoyada ABAcquisition of MBXP t-2019Nov-2018April-2018Jan-2018Acquisition ofSponsorhuset ABAcquisition ofThe InspirationCompany ABAcquisition ofRetain 24 Sverige ABAcquisition ofMotivation Service ABDec-2017Acquisition ofMarket2member ABAcquisition ofCrossroads Loyalty Solutions ABAwardit IPOAcquisition ofPrämie Direkt GmbH

EXPOSED TO MASSIVE GLOBAL MARKETSDIGITAL LOYALTY PROGRAM GROWTH UNDERPINNED BY DIGITALTRANSITIONSTABLE DOUBLE DIGIT GROWTHGlobal Gift Card Market in billion USDGlobal Loyalty Program Market in billion USD2 077 215CAGR 5%2018-2022ECAGR 16.2%2020-2027E172,5619 20192020E2021E2022E2023E 2024E2025E2026E2027E20192020E2021E2022EThe expanding adoption of smartphones is expected toincrease the gift card market by offering flexible paymentmethods for customersOutsourcing the reward program comes with strong cost benefits related to expensivetechnology platformModern technology has created ways for smartphone usersto integrate everything in one convenient packageThe growing footprint of the adoption of loyalty program strategy by buyers indicatethe willingness of both the supplier and buyers to partner on a global scaleEnvironmentally friendly driven shift from plastic to digitalgift cards contributes to a more flexible productSource: alliedmarketresearch, Beroenic2018Growth in online buying culture and high adoption of smartphones has raised the needfor a digital loyalty program strategy

CUSTOMER ACQUISITION STRATEGYTARGET AUDIENCESDRIVING FORCES FOR OUR CUSTOMERSAchieve a greater ”share of wallet”ConsumersReduce price and discount focusIncrease customer lifetime and reduce churnEmployeesL O YA LT Y &G I F T CARDPROGRAMSBusinesses Establish a more responsive and cost-effective customer communicationOffer attractive value-add servicesResellersStimulate own personnel or reseller through rewarding results, activity,competency and engagement

BUSINESS MODELATTRACTIVE OFFERING YIELDING LONG-TERM VALUE CREATION FOR AWARDIT’S CUSTOMERLoyaltySet-up feesMonthly feesSale of pointsGift CardsSet-up feesMonthly feesCommissionsSale of pointsLoading feesCampaign feesCommissionsLoyalty marketplaceBreakage (private labels)Expert ServicePartnershipsExpert serviceExtensive customer portfolio

PRIVATE LABELS

WELL POSITIONED FOR CONTINUED SUCCESSIntegration of TIC 50% done. Prämie Direkt project initiated to identify procurement savings and crossselling opportunities.Continued strong organic growth of 33% in April.Continued work on business oriented synergies (cross selling) within the group. Launch of Zupergift onadditional markets.Continued establishment of partnership network based on Open Banking / Account & Card linkingSteady flow of new customers – especially within the Giftcard segment. Strong pipe of new prospective customers.Additional value creating acquisitions. Cash position of approx. 209 MSEK at years end provides buyingpower.Vision to become one of the absolute leaders on the European market.

MANAGEMENT TEAMErik Grohman, CEO Employed since March 2022 Master of Science in Business Administration and Economics,Stockholm University 5 300 sharesAnders Svanberg, Loyalty B2C Business Area Manager Employed and member of management team since 2018 Lux Business School, Business Administration at StockholmUniversity 24 232 sharesUlrik Zielfelt, Sales & Marketing Manager Employed since 2019 MSc in Economics, Gothenburg School of Business 20 000 sharesMattias Lundqvist, Giftcards Business Area Manager Employed since 2013 Industrial Economics, Chalmers and the Universidad Politécnica deMadrid 20 752 sharesCecilia Ponthan, CFO Employed since 2022 Business IT, Nackademin 0 sharesChristian Lindholm, CIO Employed since 2021 Master of Business Administration, Gothenburg School of Business,Bachelor of Information Technology, Halmstad University andUnitec Institute of Technology, Auckland 0 sharesAnna Törner, Loyalty B2B Business Area Manager Employed since 2015 Business Administration and Economics, Umeå University 1 795 sharesJonas Sjögren, CPO Employed since 2015 Purchasing, Institute of Business Administration 0 shares

BOARD OF DIRECTORSNiklas Lundqvist, Member Board of Directors Head of M&A, founder and member of the Board of Directors since1999 Bachelor of Laws and LLM, Uppsala University and MaastrichtUniversity Economics Gothenburg School of Business, UppsalaUniversity 1 111 550 sharesSamir Taha, Member Board of Directors, Chairman Member of the Board of Directors since 2000 MSc in Economics, Uppsala University 320 519 sharesOlle Isberg, Member Board of Directors Member of the Board of Directors since 2002 Stockholm School of Economics, Stockholm 2 100 000 sharesCharlotte Eisner, Member Board of Directors Member of the Board of Directors since 2017 Master of Science in Business Administration, School of Business,Economics and Law at the University of Gothenburg 0 sharesClaudio Simatovic, Member Board of Directors Member of the Board of Directors since 2020 Founder and previous CEO of several companies including Retain24Sverige AB 132 211 sharesPeter Borsos, Member Board of Directors Member of the Board of Directors since 2020 Economics Master of Economics (Örebro University, FreieUniversität Berlin and University of Massachusetts) 49 000 Shares

LARGEST SHAREHOLDERSMARCH 31, 2022ShareholderShares% Ownership% VotesVisionalis AB2 090 00025,1%25,1%Niklas Lundqvist1 111 55013,3%13,3%Consensus Asset Management AB428 9005,1%5,1%Johan Hagman339 6124,1%4,1%Samir Taha (gm Sultanen Invest AB)325 0003,9%3,9%Livförsäkringsaktiebolaget Skandia248 6003,0%3,0%Filip Engelbert242 6532,9%2,9%Jonas Nordlander242 6522,9%2,9%S Thorberg Inspiration Investment Ltd196 3312,4%2,4%Claudio Simatovic (gm Paradidel AB)132 2111,6%1,6%Other shareholders2 978 00935,7%35,7%Total8 335 518100.0%100.0%Source: [Euroclear per 2021-12-30]

INCOME STATEMENTSEK 319Activated work for own accountOther operating incomeTotal operating 083-464-488,219Operating result-3,5464,72263,508Financial incomeFinancial costsResults from units in the group andassociated companiesNet result from financial 23,336Profit before tax-12,4044,30240,172Income taxDeffered taxNet 30,506Operating expensesMerchandiseOther external costsPersonnel costsD&AOther operating costsTotal operating expenses

SEGMENT REPORTINGGroup, revenue by 80752,44015,43325,7642,461529,319Group, revenue by -2,0744,72257,0006,50863,508Operating profit after depreciationB2BB2CTotal

BALANCE SHEETSEK thousandAssetsLong-term assetsGoodwillCustomer relationshipsPlatformOther intangible assetsRight-of-use assetsShares in associated companiesEquipment, tools and installationsDeffered tax assetTotal long-term assetsShort-term assetsInventoriesCurrent tax assetsAccounts receivableTax claimsOther short-term receivablesPrepaid expenses and accured incomeCash and cash equivalentsTotal Short-term assetsTotal AssetsQ1, 2022 Q1, ,8851,009,409265,867 1,168,476SEK thousandSHAREHOLDERS EQUITY AND LIABILITIESEquityLong-term liabilitiesShort-term liabilitiesTOTAL SHAREHOLDERS EQUITY AND LIABILITIESQ1, 2022 Q1, 1972021505,595269,601393,280265,867 1,168,476

CASH FLOW STATEMENTSEK thousandQ1’22Q1’212021Cashflow from operationsProfit before tax for continuing operationsAdjustments for non-cash itemsRepayment of depreciationOther items not affecting cashflowinterest receivedInterest PaidPaid income taxCash flow from operations before change in working capitalChange in working capitalCash flow from 330,0832,2469-5,084-16,75074,012-25,32248,690Cash flow from investing activitiesCash flow from financing activitiesCash flow for the 786211,517Cash and cash equivalents, opening balanceCash and cash equivalents, ending balance240,221209,28328,30833,76938,308240,221

CONTACT DETAILSErik r (of founder Niklas Lundqvist): @PointmanAwardit

Global Gift Card Market in billion USD 172,5 215 2018 2019 2020E 2021E 2022E CAGR 5% . Bachelor of Laws and LLM, Uppsala University and Maastricht University Economics Gothenburg School of Business, Uppsala . Income tax -1,687 1,344 -14,065 Deffered tax 1,377 203 4,398 Net profit -12,404 3,161 30,506. SEGMENT REPORTING