Vertical Market Software Lars Stenlund, VD Vitec Software Group AB - - PowerPoint PPT Presentation

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Vertical Market Software Lars Stenlund, VD Vitec Software Group AB - - PowerPoint PPT Presentation

Sep 04, 2023 266 likes •629 views

Vitec Software Group Vertical Market Software Lars Stenlund, VD Vitec Software Group AB (publ) Vitec Short Facts VITEC SHORT FACTS Software company with industry-specific solutions Founded in 1985 by Lars Stenlund and Olov Sandberg

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Vitec Software Group AB (publ)

Vitec Software Group

Vertical Market Software

Lars Stenlund, VD

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Vitec Software Group AB (publ)

Vitec Short Facts

VITEC SHORT FACTS

  • Software company with industry-specific solutions
  • Founded in 1985 by Lars Stenlund and Olov Sandberg
  • Annual Turnover of SEK 316 million in 2010
  • Operating Profit of SEK 20 million in 2010
  • Number of employees approx. 300, with 90% in Sweden
  • Active in five customer areas/(Vertical Markets)
  • Seven offices in Sweden, one in Oslo and one in the U.S.
  • Listed on NASDAQ OMX, Stockholm (Small Cap)
  • Aprox.1 500 shareholders
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Vitec Software Group AB (publ)

Offering

Unique Offering We focus on industry-specific business systems that are more cost effective than general solutions.

  • Software
  • Specialist Services
  • Contracts for support and maintenance

Mission With value-creating software and services we offer customers viable, modern business support.

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Vitec Software Group AB (publ)

Business Strategy

The competition

Small competitors with limited resources to grow, sometimes without "professional" management. High entry barriers Mission critical systems with high exchange cost and long lead times in developing. Subcontractors Low dependence on third party vendors, self-development predominate. Customers Markets with one hundred to several thousand customers. Not billion markets. Customers option Limited and less cost-effective solutions from generalists and consultants.

Vertical Market Software

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Vitec Software Group AB (publ)

Growth Strategy

2 - Refine Create operational improvements and establish strategic direction. Increase Cash Flows. 2 - Refine Create operational improvements and establish strategic direction. Increase Cash Flows. 3 - Grow Implement additional acquisitions and

  • rganic growth.

3 - Grow Implement additional acquisitions and

  • rganic growth.

1 - Acquire Identify and select vertical market acquisition candidates and negotiate and acquire. 1 - Acquire Identify and select vertical market acquisition candidates and negotiate and acquire.

Capital

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Vitec Software Group AB (publ)

A selection of our customers

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Vitec Software Group AB (publ)

Selection of customers – Property managers Selection of customers – Property managers

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Vitec Software Group AB (publ)

Business Area Fastighet Business Area Fastighet

Rental coupon

Tenant pages

Apartment rentals

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Vitec Software Group AB (publ)

Selection of customers - Mäklare Selection of customers - Mäklare

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Vitec Software Group AB (publ)

Business Area Mäklare Business Area Mäklare

Data for www.hemnet.se Purchase Agreement

  • Appl. on the brokers website
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Vitec Software Group AB (publ)

Selection of customers - Energi Selection of customers - Energi

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Vitec Software Group AB (publ)

Business Area Energi Business Area Energi

Power load forecasts Network calculations of electricity load Windpower forecasts District heat pipe flow

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Vitec Software Group AB (publ)

Selection of customers – Finans och Försäkring Selection of customers – Finans och Försäkring

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Vitec Software Group AB (publ)

Business Area Finans och Försäkring

Mortgage calculations Pension Calculations

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Vitec Software Group AB (publ)

Selection of customers - Media Selection of customers - Media

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Vitec Software Group AB (publ)

Business Area Media Business Area Media

SMP – Social Media Platform

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Vitec Software Group AB (publ)

  • 1985 Vitec is formed
  • 1998 Listing on Aktietorget
  • 1998–2002 Acquisition of

companies offering software for real estate management

  • 2002 – Year of IT-crash. Vitec gives

dividend for first time (0.25 kr)

  • 2003 – Strategies for growth and

acquisitions are formulated

  • Vitec completed 10 company

acquisitions and nine acquisitions of product rights or assets.

  • 2010 - Turnover is SEK 316 million

(Dividends of SEK 1.25)

  • 2011 - First acquisition outside of

Sweden

50 100 150 200 250 300 350

Turnover (million SEK)

History of successful growth Milestones

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Vitec Software Group AB (publ)

Strong Earnings Growth

5 10 15 20 25 2003 2004 2005 2006 2007 2008 2009 2010

22,4 %/year Profit before tax (million SEK)

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Vitec Software Group AB (publ)

Revenue Growth

50 100 150 200 250 300 350 2003 2004 2005 2006 2007 2008 2009 2010

Capitex 3L System Mäklarsystem Media Energi Fastighet 25%/år

Growth is driven both organically and through acquisition of new business areas

( million SEK )

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Vitec Software Group AB (publ)

Growth while maintaining profitability

0% 5% 10% 15% 20% 25% 30% 2002 2003 2004 2005 2006 2007 2008 2009 2010 Return on capital employed Return on equity

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Vitec Software Group AB (publ)

Locations and Employees

Year Location

  • No. Of employees

1985 Umeå 31 1998 Stockholm 68 2000 Malmö 6 2001 Göteborg 53 2003 Västerås 12 2005 Linköping 45 2009 Dayton Ohio, USA 20 2009 Östersund 7 2010 Kalmar 70 2011 Oslo 14 ~ 320

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Vitec Software Group AB (publ)

Interim Report January - September 2011 EARNINGS PER SHARE UP 123 %

  • NET SALES 265,7 Mkr (214,2)
  • OPERATING PROFIT 30,2 Mkr (11,6)
  • OPERATING MARGIN 12 % (6)
  • EARNINGS PER SHARE 5,11 kr (2,29)
  • CASH FLOW 42,7 Mkr (36,1)
  • LISTING ON NASDAQ OMX STOCKHOLM
  • ACQUSITION OF IT MAKERIET A/S IN NORWAY

Key events in the third quarter 2011

  • Vitec subsidiary 3L System AB (publ) signs a contract worth 2.3 million USD

Significant events after the period

  • Vitec call an extraordinary general meeting on 11 November concerning proposals for convertibles to

employees of the Vitec Group.

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Vitec Software Group AB (publ)

Turnover and repetitive portion per quarter

0,0 20,0 40,0 60,0 80,0 100,0 120,0

Q3-08 Q3-09 Q3-10 Q3-11

0,0 20,0 40,0 60,0 80,0 100,0 120,0 Turnover Repetitive portion Turnover (million SEK) Repetitive portion (%)

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Vitec Software Group AB (publ)

Revenue and operating margin by quarter

  • 5

5 10 15 20 25 30

Q3-08 Q3-09 Q3-10 Q3-11

  • 20

20 40 60 80 100 120 Opetating margin (%) Turnover (million SEK) Turnover (million SEK) Operating margin %

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Vitec Software Group AB (publ)

Income Statement January – September 2011

Income Statement Jan-Sept 2011 Jan-Sept 2010 OPERATING REVENUE License revenues 17 670 15 304 Recurring revenues 157 120 127 270 Service revenues 82 581 63 872 Other income 8 350 7 704 NET TURNOVER 265 720 214 150 Other operating income 1 152 2 399 Depreciation

  • 17 001
  • 12 585

Work performed for own account 9 909 8 166 Other costs

  • 227 570
  • 199 063

OPERATING EXPENSES

  • 234 662
  • 203 482

OPERATING PROFIT 32 210 13 067 Financial items

  • 2 030
  • 1 426

INCOME AFTER FINANCIAL ITEMS 30 180 11 641 Tax

  • 6 788
  • 3 269

NET INCOME 23 392 8 372 Attributable to the shareholders of Vitec 21 930 8 942 EARNINGS PER SHARE (SEK/share) 5,11 2,29

Recurring Service Licence Other

1 2 3 4 2004 2005 2006 2007 2008 2009 2010

Earnings per share (SEK)

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Vitec Software Group AB (publ)

Balance September 30, 2011

Balance 2011-09-30 2010-09-30 FIXED ASSETS Goodwill 101 411 89 490 Capitalised development expenditure 25 712 20 557 Product rights 71 147 70 042 Equipment and furniture 13 095 7 148 Other non-current receivables 2 105 1 714 CURRENT ASSETS Inventories 68 87 Current assets 64 814 72 869 Cash 35 288 38 737 TOTAL ASSETS 313 640 300 644 EQUITY 112 587 86 287 MINORITY INTEREST 21 124 18 710 NON-CURRENT LIABILITIES AND PROVISIONS 66 432 81 015 CURRENT LIABILITIES 113 497 114 632 TOTAL EQUITY AND LIABILITIES 313 640 300 644 5 10 15 20 25 2004 2005 2006 2007 2008 2009 2010

Owners equity per share (SEK)

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Vitec Software Group AB (publ)

Cash flow January – September 2011

Cash flow Jan-Sep 2011 Jan-Sep 2010 OPENING EQUITY Operating profit 32 210 13 067 Adjustments for items not included in cash flow 17 001 12 585 Interests and taxes

  • 11 938
  • 11 507

CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGE IN WORKING CAPITAL 37 273 14 145 Change in working capital 5 437 21 924 CASH FLOW FROM OPERATING ACTIVITIES 42 710 36 069 Cash flow from investing activities

  • 25 765
  • 52 933

Cash flow from financing activities

  • 13 777

29 112 CASHFLOW 11 704 29 349 Cash and cash equivalents at beginning of period 32 120 26 551 CASH INCLUDING SHORT-TERM INVESTMENTS AT END OF PERIOD* 35 288 38 739

  • Available cash and cash equivalents at end of period includes SEK 12.6 million in

3L System AB

1 2 3 4 5 6 7 8 2004 2005 2006 2007 2008 2009 2010

Cash earnings per share (SEK/share)

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Vitec Software Group AB (publ)

Segment reporting January-Sept. 2011

Business area Net turnover (million SEK) Operating profit (million SEK)

2011 July-Sept 2010 July-Sept 2011 Jan-Sept 2010 Jan-Sept 2011 July-Sept 2010 July-Sept 2011 Jan-Sept 2010 Jan-Sept

AO Mäklare 36 095 13 824 102 042 40 947 10 864 3 459 23 460 7 268 AO Fastighet 15 570 15118 51 555 50 178 2 284 1 682 7 937 6 338 AO Energi 3 893 3 809 13 823 12 727 870 1 029 3 666 3 062 AO Media 3 695 4 224 13 202 14 191

  • 813
  • 763
  • 1 540
  • 1 822

AO Capitex 3 498 20 219 14 499 20 219 463 2 489 2 853 2 489 AO 3L System 20 479 19 518 70 596 75 888 664

  • 9 725

2 089

  • 2 673

Common

  • 2 430

554

  • 6 255
  • 1 595

Vitec Group 83 230 76 712 265 720 214 150 11 902

  • 1 275

32 210 13 067

AO Mäklare 73 % AO Fastighet 25 % AO Energi 11 % AO Media 0 % AO Capitex 9 % 3L System AB 6 % AO Mäklare 38 % AO Fastighet 19 % AO Energi 5 % AO Media 5 % AO Capitex 5 % 3L System AB 27 %

Revenue shares business areas January - September 2011 Performance parts business areas January - September 2011

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Vitec Software Group AB (publ)

Board Board

Nils-Eric Öquist Chairman Carl-Erik Nyquist Crister Stjernfelt Kaj Sandart Olov Sandberg Jan Friedman Birgitta Johansson- Hedberg

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Vitec Software Group AB (publ)

Largest shareholders

  • No. of Shares*
  • No. of

A-shares

  • No. of

B-shares Capital % Votes % Lars Stenlund 364 000 73 743 10,3 32,4 Olov Sandberg 364 000 38 771 9,5 32,1 Jerker Vallbo 72 000 31 750 2,3 6,5 LF Småbolagsfond 311 132 7,1 2,7 Thomas Eklund 231 763 5,6 2,1 Nils-Eric Öquist 211 450 5,1 1,9 Kristofer Stenum 135 317 3,1 1,2 Rambas AB 133 700 3,1 1,2 Avanza Pension (FRV) 132 770 3,0 1,2 Niklas Stenum 117 146 2,7 1,1 Nordnet Pensions (FRV) 46 382 1,1 0,4 Alfred Berg Småbolag 24 775 0,5 0,2 Other shareholders 2 067 832 48,8 18,1

TOTAL 800 000 3 451 450 100% 100%

* The number of holdings as at 2011-08-01

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Vitec Software Group AB (publ)

Value creation for shareholders

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Vitec Software Group AB (publ)

Business Goals

  • Growth targets

Continued growth of 25 % on average, of which 5 -10 % organic.

  • Financial targets

Profit margin 15 %.

  • Dividend targets

1/3 of the profit will be distributed to shareholders.

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Vitec Software Group AB (publ)

Strategy for continued growth

Strategy

  • Organic and acquisition-driven growth
  • Vertical Market Orientation
  • Defined market with potential
  • Possible to achieve dominance
  • Business models with repeatable revenue

Acqusition targets

  • Target companies with turnover SEK 10 – 100 million
  • Vertical Market Software Companies
  • New nisch/market alt. completion
  • Earnings per share critical factor
  • Prize about 5-7 times annual profit depending on equity

Next: Nytt tillväxtmål – fortsatt expansion…

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Vitec Software Group AB (publ)

Vitec Software Group

www.vitec.se

Vertical Market Software

Lars Stenlund, VD