Company Update. Induct AS. January 24 th 2017

Transcription

1 Company Update Induct AS January 24 th 2017

2 Induct is an online social network Focus verticals/areas: Healthcare Municipalities and cities Education Enterprises Humanitarian sector OSLO (HQ) BARCELONA One business model: Induct Community # of modules # of subscription Churn SAO PAOLO LONDON BANGALORE BOSTON Scaling: High gross margin (> 95 %) Low R&D expenses Network effect (reduced acquisition cost) Platform to launch new revenue streams Robust, scalable and recurring revenues 2

3 Management team Alf Martin Johansen CEO #shares Founded Induct Software AS in ,378 Long experience from management positions in IT companies such as Fast Search & Transfer and CMA Contiki Master in Business from Norwegian School of management (BI) Karl Kristian Mydske COO Kenneth Ramberg CTO Joined Induct in ,080 Responsible for preparing Induct operations and sales for scalable growth Positions in Statoil Fuel & Retail as EVP Sales & Operations and Chief Innovation Officer MBA from Massachusetts Institute of Technology Joined Induct in ,000 Responsible for technology development, R&D and platform performance Long experience with software development, particularly within healthcare and PM Norwegian, Barcelona based for the last 20 years, Master in PM and PMP-Certified Kim Hamli CSO Åge Muren CFO Co-founder of Induct in 2007 Head of global sales Sales and management experience from Top temp IT, TV2 and Visma software Bachelor degree in system development from NITH Joined Induct in 2008 Considerable experience from the finance and IT sector Previously CFO in Hugin Group, a part of NYSE Euronext Previously CFO in Fast Search & Transfer, later acquired by Microsoft 300, ,125 3

4 Board Of Directors Even Nordstrøm Audun W Iversen 20 years experience from media business including CEO in A-pressen Consultant in Nexia Management Consulting for 10 years Associated partner in First House Media Chairman in Opera Software ASA and NexGenTel Holding ASA. Long background as Telecom/IT analyst and portfolio manager in DNB Co-Founder and former CEO in EAM Solar #shares 13,155 71,619 Øivind O Magnussen 8 years in the Investment Banking Industry until 2000 Has the last 15 years been a serial entrepreneur with a long track record in building international digital businesses outside Norway 0 Robin Waaler Alf Martin Johansen Long industrial experience from international business in BASF Member of the board of Polytechnic Society of Norway Founder and CEO of Induct Software 70, ,378 Academic Advisory Board Dr. Henry Chesbrough Executive Director of Open Innovation Program at Haas School of Business, UC Berkeley Amanuensis of Business Administration at Harvard Business School 55,000 Dr. Sabine Brunswicker Director of Open Innovation at Fraunhofer Institute Senior Research Fellow at ESADE Senior Lecturer at European School of Business 15,000 Business Advisory Board Morten Jurs Broad management experience from healthcare sector and IT CEO in Stamina Group, a Scandinavian company within health and wellness Prev. CFO/CEO in Pronova Biopharma when it went public and acquired by BASF 62,834

5 The Induct innovation and knowledge eco-system INDUCT NETWORK INDUCT COMMUNITY ENGAGEMENT NETWORK IMPACT EXECUTION 5

6 The Induct innovation process FRONT END BACK END Task-, process-, project-, portfolio- and measurement (ROI) Product Development IMPACT Measuring Outcomes IDEAS CHALLENGES EXPERIENCE Service Design KNOWLEDGE INSIGHTS Process Improvement Sharing Innovations Crowd sourcing wisdom Experience- and knowledge sharing Involvement and Diffusion 6

7 Key qualities of Induct modules 1. Collaboration - Multiple users can work together in real-time in the same project space - Users can be involved in the project no matter where they are in the world 2. Processes - Tasks, documents and checklists follow the process you create and need to support 3. Portfolio and reporting - Quick and detailed overview of all ongoing projects 4. Organization customization - One size do not fit all organizations, the platform can be customized to fit the existing processes within the organizations 7

8 Induct is uniquely positioned for two global megatrends Healthcare: Increased demand for healthcare leads to accelerating cost Digital business: Digital solutions drives networked innovation between organisations Source: Boston Consulting Group 8

9 A key barrier for efficiency improvements: No platform exists to access the documented improvements at other hospitals globally Patients and relatives experience the hospital have improvements ideas but no place to share this with the hospital The improvement team at hospitals have no efficient place to capture, process and collaborate on improvements. Excel is the norm. Front line employees see improvement opportunities every day, but have no efficient place to describe and share them Hospital management with cost pressures and KPIs have no efficient place to drive, measure and report internal improvements 9

10 Product offerings (modules) for our verticals/eco-systems Healthcare Municipalities and cities Education Enterprises Humanitarian sector Innovation mgmt. Innovation mgmt. Innovation mgmt. Innovation mgmt. Grant mgmt. Project mgmt. Deviation mgmt. Deviation mgmt. Grant mgmt. Project mgmt. Procedure mgmt. Lean mgmt. Deviation mgmt. 10

11 Healthcare Comments Huge growth potential worldwide Network established in Norway CURRENTLY PRESENT NEW POTENTIAL MARKETS OTHER MARKETS 4 modules in use hospitals worldwide Induct has an ambition to reach 130 subscription by year end 2018 When Induct is used by a the first group of hospitals in a market, others are likely to follow, creating a network of innovations and improvements

12 Municipalities / Cities Comments Documented huge potential worldwide Taking success from healthcare to municipalities and cities Total market in Norway consists of 426 municipalities During the first three weeks of 2017, 34 of 60 municipalities contacted have signed with Induct (zero has turned down the offer) Induct has an ambition to reach 340 subscription by year end 2018 KS and Induct to sign strategic collaboration agreement 12

13 Education Comments Interesting for connecting eco-systems Collaboration between students and enterprises Network of 40 universities and high schools in Catalonia Pilot with BI Low subscription fee alternative business models to be explored Not a strategic focus at the moment 13

14 Enterprises Comments Example eco-system within Enterprises Revenue model based on number of employees Experienced higher churn Working with clusters to build network effect Managed incoming calls Collaboration with other ecosystems, like healthcare and municipalities 14

15 Humanitarian Sector Comments It is all about establishing innovation sharing eco-system The number of NGOs world wide is estimated to be 3.7 million Strategic partnership with Sphaera in the US First customers signed Find current networks 15

16 PROVEN IN HEALTHCARE NEW VERTICALS INTRODUCED Proven technology & customer benefits : Technology and concept development Documented user benefits and excellent customer feedback Enterprise sector as bread-and-butter cash flow to 2015 Won the Norwegian national health tender by clear margin Healthcare segment penetration is the medium-term priority Cost saving at a single hospital $ 8.4 mill. Proven commerciality & scalability 2015 sales breakthrough in healthcare (Norway, Spain, UK and US) Subscription model secures recurring cash flow Existing customers benefit by promote the Induct network Additional modules to existing customers Low operational cost and high margins Healthcare revenues (ARR) Large growth- & value creation potential Combines two mega trends : Healthcare & Digitalization Induct aims to become the industry standard in certain market segments Large value creation potential by penetrating large healthcare markets Value of network increases with no. of participants Limited investment needed to finance growth Large value creation potential 16

17 Strong growth in recurring subscription revenues Annualised recurring revenue per end of quarter (NOK million) ,01 4,62 6,44 6,60 7,

18 Break down into Verticals 18

19 Induct Group - Balance Sheet Prelim and Unaudited Comment Non-current assets Intangible assets Capitalized R&D costs for the IT-platform. Fixed assets Financial non-current assets Investment in R&D site in Spain Total non-current assets Current assets Receivables Bank accounts Accounts Receivables NOK 2,750 per Total Current assets Total assets

20 Comment Shareholders Equity and Debt Paid-in capital Share capital Share premium reserve Total paid-in capital Retained earnings Uncovered loss Total retained earnings Total shareholders equity Debt Long-term debt Primarily loan from Innovasjon Norge. Short-term debt Total debt Total shareholders equity and debt The Balance Sheet per is consolidated and include Induct AS and its subsidiaries in the US, UK, Brazil, Spain and Spain R&D. The Balance Sheet per includes Induct AS and its subsidiaries in the US, UK and Brazil. The Balance Sheet per and includes Induct AS only. 20

21 Induct AS, Rosenkrantz' gate 4, NO-0159 OSLO. Tel: