ZetaDisplay : Yearbook 2020 (in English)

YEARBOOK 2020

Contents

ZetaDisplay in brief	4
Key financial ratios 2020	5
Highlights during the year	6
Comment from the Group CEO	8
Strategy and Business concept	12
Software and concept development	18
Sustainability Report	23
Key figures and management	30
Addresses	40

1. EUROPEAN LEADER
   IN DIGITAL SIGNAGE

ZetaDisplay is driving the digital transformation in physical environments. Our concepts and our software influence people's behaviour at the decision point in retail, public spaces and in work places. Our solutions are known as Digital Signage, which we develop and offer as SaaS-solutions. ZetaDisplay is a European leader

that creates visible values for its international customer base.

2003	+		50
50,000
FOUNDED	INSTALLATIONS		MARKETS
39	366		160
EBITDA 2020 (MSEK)	Total Sales 2020 (MSEK)	ARR (Annual Recurring
			Revenue) (MSEK)
158	#1 #2	[	ZETA
STAFF	IN NORDICS IN EUROPE	]
Sweden, Denmark, Norway, Finland,	Market share		Listed on
USA and the Netherlands	within Digital Signage	Nasdaq Stockholm

IN-DEPTH INFORMATION

Read more about our financial development and plan at ir.zetadisplay.com

ZETADISPLAY IN BRIEF

THE OFFERING

1. ZetaDisplay drives digital transformation in physical environments through digital communication solutions and services on a scalable software platform. Our solutions support increased experience and conversion rates in the retail trade, enable orientation and news dissemination in public environments and support increased loyalty and commitment in the workplace.

THE BUSINESS MODEL

2. ZetaDisplay operates a business model consisting of SaaS revenues, project revenues and consulting revenues. Customer agreements are usually long-term and ZetaDisplay delivers attractive gross margins in excess of 50%. The Group's SaaS revenues correspond to just over a third of sales and is steadily increasing.

MARKET

3. ZetaDisplay operates in a long-term growth market. Driving factors are:

• Digitisation at Point-of-Decision in the retail trade, public environments and workplaces.

• Low penetration rate in major international markets and customer segments.

• Increased maturity among customers who favour Digital Signage suppliers with international reach who can handle complex assignments.

STRATEGY

4. ZetaDisplay is the Nordic region's leading player and is the second largest in Europe. We have the financial ability to drive consolidation of the market through organic growth and through further acquisitions. The company has an integrated organisational model that enables it to seamlessly integrate new companies.

KEY FINANCIAL RATIOS   |5

KEY FINANCIAL RATIOS 2020

The market effects of the pandemic affected the 2020 financial year, above all through a shift in decisions within project sales. Management acted quickly during the first quarter and launched an action programme. Investments in scalability, harmonisation and internationalisation resulted in a satisfactory annual result in a challenging market situation.

• Net sales decreased by 15.4% to MSEK 366.2 (433.0)
• SaaS revenues amounted to MSEK 155.2 (137.1)
• EBITDA amounted to MSEK 38.5 (52.2)
• Adjusted for non-recurring items, EBITDA amounted to SEK 55.0 (52.2) million
• Operating profit amounted to MSEK 3.7 (3.4)
• Earnings per share before and after dilution amounted to SEK -0.63 (0.22) and -0.63 (0.22), respectively

Net sales and EBITDA

MSEK				MSEK
500				60
400				50
300				40
				30
200				20
100				10
0				0
2016*	2017	2018	2019	2020
Hardware		SaaS revenues	EBITDA

* Net sales distribution available from 2017 only

Net sales by segment, full year 2020

MSEK
140
120		34%
100	25%		24%		26%
80								54%
60				47%		57%	34%
40	75%	66%	76%		74%
20				53%		43%	66%	46%
0
		2019			2020
	SE	NO	FI	NL	SE	NO	FI	NL
			Hardware	SaaS revenues

SaaS revenues

MSEK
45
40
35
30
25
20
15
10
5
0
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
2018				2019				2020

SaaS revenues Linear SaaS revenues