Zetadisplay : Bokslutspresentation 2020 (engelska)

Year End Report 2020

5 February 2021

Per Mandorf	Jacob Stjernfält
President & CEO	CFO

2/5/2021

Agenda

Q4 presentation 5 February 2021

Business update

Financials in details

Takeaway's

Q&A

2

A European leader aiming for more

2003 +52,000

FoundedInstallations

38.5	366
EBITDA LTM	Total sales LTM
(MSEK)	(MSEK)
158 STAFF	#1 IN NORDICS
9 OFFICES	#2 IN EUROPE
Sweden, Denmark, Norway, Finland,	Market share
Netherlands, USA	within Digital Signage

+50

Markets

160

ARR (MSEK)

[ZETA]

Listed on Nasdaq Stockholm

Strong commitment

and

ambitious targets

SaaS model and compounder

Digital transformation

partner

and

market growth

A team with a long term commitment and extensive experience from international operations within digital transformation

A clear road map for further growth

A business model that drives growth, increase margins and customer satisfaction

A compounder within the industry with a successful M&A track record

A comprehensive range of software and services to optimize both the business and customer experience.

Our solutions create a competitive edge

The Digital Signage industry grows approx. 15% YoY

Key developments Q4 2020

Strongly improved profitability Stable customer base Continued cost control

"Our competitive position is improving as result of targeted investments into software, organization and concepts."

CEO Per Mandorf

Q4/2020 - key financials

• Strongly improved profitability
• • New organization drives efficiency gains
  • Continued cost control
  • Strategic investments start to pay off
• Stable customer base
• • Limited soft churn due to reduced retail footprint
  • Delayed decision process for new contracts
  • Framework agreements develop largely as planned
  • Increased market activities late in the quarter
• Continued cost control
• • Cost savings in line with target of 20 MSEK by quarter 1, 2021
  • OPEX in line with previous year despite Dutch acquisition from October 2019
  • Selected investments into organization, software, operations and concepts

MSEK

-28.1%39.0

Net Sales

SaaS-Revenues

+2.4% MSEK

20.1

ARREBITDA

compared with Q3/20

Q4 - Operational highlights

Contracts

Awards

Strategic Investments

6

Financials

Jacob Stjernfält

CFO

Q4/2020 - Strong EBITDA result

• SaaS-revenuesand stable customer base
• • Decrease of net sales is an effect of a lower volume of new implementation projects impacted by COVID-19
  • SaaS-revenuesrepresents 38.0% of net sales
  • Mix change to more SaaS-revenues drives margin enhancement
• Cost control programs in line with target
• • Personnel costs below previous year
  • Travel and other external expense reductions
• Financial items compared to previous year is mainly attributable to currency effects

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - SUMMARY
(TSEK)
	3 MONTHS	3 MONTHS	12 MONTHS	12 MONTHS
	OCT-DEC	OCT-DEC	JAN-DEC	JAN-DEC
	2020	2019	2020	2019
Net sales	102 670	142 830	366 246	433 044
Capitalized work on own account	4 101	2 968	14 191	9 756
Other revenue	1 147	1 488	9 240	3 087
Total Revenue	107 918	147 286	389 677	445 887
Operating expenses
Goods for resale	-41 266	-68 842	-157 483	-207 992
Other external expenses	-15 086	-21 247	-63 123	-63 077
Personnel expenses	-31 510	-35 989	-130 584	-122 616
Depreciations and write-downs	-8 848	-8 422	-34 831	-48 774
Operating profit	11 208	12 786	3 656	3 428
Financial income	1 837	687	19 356	29 042
Financial expenses	-11 729	-8 341	-37 386	-15 809
Profit/loss after financial items	1 316	5 132	-14 374	16 661
Tax	-2 863	-3 246	-3 921	-1 620
Net proft/loss	-1 547	1 886	-18 295	15 041
Profit/loss per share before dilution, SEK	-0,05	0,07	-0,63	0,22
Profit/loss per share after dilution, SEK	-0,05	0,07	-0,63	0,22
Average number of ordinary shares before dillution, SEK	29 282	28 746	29 106	27 828
Average number of ordinary shares after dillution, SEK	29 282	28 746	29 106	27 828

11

Q4/2020 - Increased share of SaaS revenues

• SaaS-revenuesamounted to SEK 39.0 (40.0) million
• At constant exchange rates SaaS-revenues increased by 3.3%
• ARR amounted to SEK 160.3 million compared with SEK 156.6 million in the previous quarter. At constant exchange rates, ARR increased by 3.7%

SaaS revenues

SaaS revenues

Linear (SaaS revenues)

50

45

40

35

30

25

20

15

10

5

0

Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
2017	2017	2017	2018	2018	2018	2018	2019	2019	2019	2019	2020	2020	2020	2020

12

Q4/2020 - The segments

In MSEK	Net Sales	EBITDA
Sweden	28.7 (34.7)	5.5 (2.4)
Norway	22.4 (42.8)	7.2	(10.4)
Finland	22.2 (28.0)	3.6	(3.7)
Netherlands	29.4 (37.2)	7.6	(11.6)

35

30

25

20

15

10

5

0

Q4 2020 Segment Net Sales (MSEK)

21%

					47%
			28%
	57%
79%
			72%	53%
	43%
Sweden		Norway		Finland	Netherlands
		Hardware		SaaS-revenues

13

Q4/20 - Balance sheet

• SEK 300 million bond loan provides financial headroom
• • Total loan framework is up to SEK 500 million, means additional headroom of SEK 200 million
• Cash at hand SEK 125.7 million excluding undrawn facilities
• Net debt SEK 191 (200) million
• Lower accounts receivables due to lower hardware and installation sales during Q4 2020 compared to Q4 2019
• No customer losses as direct result of COVID-19
• Equity ratio of 34.6 (34.8) %

CONSOLIDATED BALANCE SHEET - SUMMARY (TSEK)

	2020-12-31	2019-12-31
ASSETS
Intangible assets	443 181	474 335
Tangible assets	6 254	9 493
Right of use assets	14 676	19 357
Deferred tax assets	3 390	3 183
Financial non-current assets	130	130
Total non-current assets	467 631	506 498
Inventories	6 132	9 779
Current receivables	85 692	128 773
Cash and cash equivalents	125 671	128 289
Total current assets	217 495	266 841
TOTAL ASSETS	685 126	773 339
EQUITY AND LIABILITIES
Equity attributable to shareholders in the Parent Company	236 863	268 759
Total equity	236 863	268 759
Provisions	90	351
Non-current liabilities	321 694	327 436
Current liabilities	126 480	176 792
Total liabilities	448 174	504 228
TOTAL EQUITY AND LIABILITIES	685 126	773 339

14

Q4 - Cash-flow statement

• SEK 40 million positive change in working capital due to lower accounts receivables and payables
• Investments in software platform of SEK 5.7 (3.8) million in line with strategic priorities
• Factoring financing has been closed during the year in Sweden and Finland

	3 MONTHS	3 MONTHS	12 MONTHS	12 MONTHS
	OCT-DEC	OCT-DEC	JAN-DEC	JAN-DEC
	2020	2019	2020	2019
Operating activities
Cash flow from operating activities before changes in
working capital	10 068	14 853	16 146	36 529
Change in working capital
Total change in working capital	3 082	3 309	40 334	-23 736
Cash flow from operating activities	13 149	18 161	56 481	12 793
Investment activities
Cash flow from investment activities	-16 877	-52 851	-37 592	-88 458
Financing activities
Cash flow from financing activities	-440	-88	-17 795	119 395
Cash flow for the period	-4 167	-34 778	1 093	43 730
Cash and cash equivalents at start of period	131 059	164 496	128 289	83 389
Exchange rate difference	-1 215	-1 429	-3 710	1 171
Cash and cash equivalents at end of period	125 671	128 288	125 671	128 288

15

Full Year 2020 - a solid performance

•	Net sales decreased by 15.4% to SEK 366.2 (433.0)
	million
•	SaaS-revenues amounted to SEK 155.2 (137.1)

Sales & EBITDA development (MSEK)

500

60

million. At constant exchange rates, SaaS-revenues

increased by 17.4%

• EBITDA amounted to SEK 38.5 (52.2) million

450

400

350

300

50

40

• Adjusted for non-recurring items EBITDA

amounted to SEK 55.0 (52.2) million

250

30

200

• ARR amounted to SEK 160.3 (165.5) million. At

constant exchange rates, ARR increased by 1.3%

150

100

50

20

10

• Operating profit amounted to SEK 3.7 (3.4) million

• Earnings per share before and after dilution

amounted to SEK -0,63 (0,22) and SEK -0,63

(0,22) respectively

0									0
	FY 2017		FY 2018	FY 2019		FY 2020
			Hardware		SaaS revenues		EBITDA	EBITDA Adj.

16

Full Year 2020 - the segments

In MSEK	Net Sales	EBITDA
Sweden	108.8	(113.7)	3.7	(2.5)
Norway	82.2 (136.4)	27.0 (34.5)
Finland	71.1 (105.2)	4.4	(15.5)
Netherlands	103.3	(77.5)	24.9 (22.0)

FY 2020 Segment Net Sales (MSEK)

120

100

	26%
80						54%
60		57%	34%
40	74%
20		43%	66%	46%
0
Sweden		Norway		Finland	Netherlands
			Hardware		SaaS-revenues

17

Looking ahead

A clear road map

18

After 2020 - Key takeaway's

• The importance of digital transformation has increased and the willingness to invest exists
• Stable customer base, increase in market activities
• Improved profitability with maintained cost control
• Strategic investments into software and concepts
• We will grow further, both organically and through acquisitions

19

Strategic development steps

					Way forward
• No 1 Nordics				• EBIT of 100 MSEK
• No 2 Europe		• Organic growth & acquisitions
		• SaaS revenues of 200 MSEK
• >30% SaaS revenues		• International expansion
		• Leading European position
				• Broadening offer - Expand our
				go-to-market strategy
	We are here				Target 2022

Underlying market growth

Compounder with

successful M&A track

record

Strong SaaS and ARR

revenue base

International client base

Digital Transformation

partner with

abilities and capacities

Q & A

21

05/02/2

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