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Solteq's new growth strategy 25.5.2016

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Page 1: Solteq's new growth strategy 25.5.2016

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Solteq Oyj

Page 2: Solteq's new growth strategy 25.5.2016

We connect bricks and clicks, front and end

We offer end-to-end solutions for digital commerce and we have the capability to serve Global Accounts

Page 3: Solteq's new growth strategy 25.5.2016

Key figures

30M€Market cap

68M€Revenue 2015*

500Employees*

3Countries

(Finland, Sweden, Poland)

* Before the sale of MainIoT Software Oy

Page 4: Solteq's new growth strategy 25.5.2016

We create new business for our clients and help them in procurement, store network management and online business.

We offer end-to-end solutions for digital commerce

Digital Commerce,Design,

Technology

ERP,Logistics,Supply Chain

eCommerce,POS,PIM

SEO, SEM,Analytics,Marketing Automation

Business Process

Monitoring,Life cyclesupport

Continuity services

Digital marketing

Core of commerce

Omnichannel sales

Design & Advisory

Page 5: Solteq's new growth strategy 25.5.2016

Successful StrategyImplementation2011-2015

Page 6: Solteq's new growth strategy 25.5.2016

Continuous growth with 20% CAGR Successful M&A transactions for extended portfolio and incremental growthFocus on wholesale and retail trade, logistics and service sectorsIncrease in international activities Continued development of long-term services and project activities

Strategic goals achieved

Page 7: Solteq's new growth strategy 25.5.2016

0

10

20

30

40

50

60

2011 2012 2013 2014 2015

Revenue

MEUR

Page 8: Solteq's new growth strategy 25.5.2016

EBIT before NRI

0

0,5

1

1,5

2

2,5

3

3,5

2011 2012 2013 2014 2015

MEUR

Page 9: Solteq's new growth strategy 25.5.2016

Privatecompanies

Financialinstitutions

Publicsectororganisations

Households

Non-profitorganisations

OutsideFinland

Shareholder structure

Page 10: Solteq's new growth strategy 25.5.2016

20 Largest shareholders (31 March, 2016)Shareholder Shares %

1 Sentica Buyout Iii Ky 4 621 244 25,96

2 Elo mutual insurance company 2 000 000 11,24

3 Profiz Business Solution Oyj 1 781 790 10,01

4 Ali Saadetdin 1 399 553 7,86

5 Varma mutual insurance company 1 155 597 6,49

6 Solteq Oyj 825 881 4,64

7 Seppo Aalto 671 882 3,78

8 Matti Roininen 420 000 2,36

9 Lamy Oy 225 000 1,26

10 Sentica Buyout Iii Co-Investment 180 049 1,01

Shareholder Shares %

11 Aidacom Partners Oy 177 028 0,99

12 Katiye Saadetdin 156 600 0,88

13 Aaltotiimi Oy 130 881 0,74

14 Marja Roininen 112 000 0,63

15 Ceili Oy 96 631 0,54

16 Jorma Hakamäki 80 115 0,45

17 Hannu Haukkanen 71 714 0,40

18 Markku Nikola 67 577 0,38

19 Reijo Lindroth 64 000 0,36

20 Pertti Hyttinen Kp 63 213 0,36

Page 11: Solteq's new growth strategy 25.5.2016

Solteq’s Strategy

Page 12: Solteq's new growth strategy 25.5.2016

Megatrends changing the market

Urbanisation

Digitalisation of commerce

Strengthening role of mobile services

Internationalisation of commerce

Economic and social megatrends having an impact on Solteq’s business

Page 13: Solteq's new growth strategy 25.5.2016

Commerce is Digital

As customers change their buying behaviors, retail operators change their

operating models

Digital technologies and operating models allows us

to offer better customer experiences

The digitalisation of commerce is expanding from

B2C to B2B

Companies invest in advanced solutions to better identify customer needs and strengthen loyal customer

relationships

Digitalisation helps to offer a coherent customer

experience to customers who shop through several

different channels

Interest of retailers and their staff in digitalisation has

increased and demand for e-commerce is good

Page 14: Solteq's new growth strategy 25.5.2016

Grow more than 20 % per annum

Focus on international digital

commerce

Forerun digital commerce

Expand internationallywith global and Nordic

clients

M&A Activities

Skills and competencies of our people lead over

competititors

Our strategic targets

Page 15: Solteq's new growth strategy 25.5.2016

2015€ 6.5 bn

Equipment Software ITservices12201240126012801300132013401360

2016E 2017E 2018E1400

1450

1500

1550

1600

1650

2016E 2017E 2018E3600

3700

3800

3900

4000

4100

4200

2016E 2017E 2018E

EquipmentCAGR -3.5%

SoftwareCAGR 4.4%

IT servicesCAGR 4.4%

IT market in Finland

Focus on software and servicesRefresh Portfolio to meet customers future expectations Establish Market leading Cloud offeringBuild Strategic Solution & Start Up Ecosystem for greater customer valueCreate World Class Delivery models to Exceed in customer expectations

Finland

MEUR MEUR MEUR

Source: Gartner

Page 16: Solteq's new growth strategy 25.5.2016

2015$ 180 bn

DevicesCAGR -0.6%

SoftwareCAGR 7.8%

IT servicesCAGR 5.2%

IT market globally

InternationalNordic focus on software and services in retail sector by expanding portfolio and additional M&A

Establish Solteq in SwedenComplementary M&A

European and global focus on selected digital commerce solutions with existing and new clientsUtilize existing compentencies to expand to new markets

11 45011 50011 55011 60011 65011 70011 75011 800

2016 2017 201822 00023 00024 00025 00026 00027 00028 00029 000

2016 2017 201872 00074 00076 00078 00080 00082 00084 00086 000

2016 2017 2018

InternalServicesITServices

Software

TelecomServicesDataCenter

Devices

MUSD MUSD MUSD

Source: Gartner

Page 17: Solteq's new growth strategy 25.5.2016

Key Figures

BALANCE SHEET

GROWTH

DIVIDEND

PROFITABILITY

Net debt / EBITDA < 3,5

20 % minimum average annual increase in turnover

Dividend, approx. 30 % of net profit

Operating profit > 8 %

Page 18: Solteq's new growth strategy 25.5.2016

Why invest in Solteq?

Digitalisationrevolutionisescommerce and creates growing

demand for digital services

We are recognisedfor our competencies

and we are well positioned to capture

the potential

Our aim is to grow faster than the

market – organically and through acquisitions

Page 19: Solteq's new growth strategy 25.5.2016

Growth Strategy

1. InternationalisationSweden & Global

2. Wide and Efficient Services Portfolio for Large and Mid-Market Digital Commerce

3. Based on Highly SkilledPeople

Page 20: Solteq's new growth strategy 25.5.2016