Investor Presentation • Feb 23, 2023
Investor Presentation
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Presentation of 4Q22 and 2022 results
23 February 2023
Democratizing Capital Markets
This presentation speaks only as of their date, and the views expressed are subject to change based on a number of factors, including, without limitation, macroeconomic and equity market conditions, investor attitude and demand, the business prospects of the Huddlestock and other specific issues.
Any statement, estimate or projections included in this presentation (or upon which any of the conclusion contained herein are based) with respect to anticipated future performance (including, without limitation, any statement, estimate or projection with respect to the condition (financial or otherwise), prospects, business strategy, plans or objectives of the Huddlestock and/or any of its affiliates) may prove not to be correct.
No representation or warranty is given as to the completeness or accuracy of any forward looking statement contained in this presentation or the accuracy of any of the underlying assumptions.
Nothing contained herein shall constitute any representation or warranty as to the future performance of the Huddlestock, any financial instrument, credit, currency rate or other market or economic measure.
Information about past performance given in this presentation is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance.
Neither the Huddlestock not any of its affiliates has verified the achievability of any estimate or forecast of future financial performance contained herein (including, without limitation, any estimate of potential cost savings and synergies, nor of any of the methods underlying the preparation of any such estimate of forecast).
Neither the Huddlestock nor the Managers assume any obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation (including in relation to forward-looking statements).
Democratizing access to capital markets
Øyvind Hovland Chairman
John E. Skajem Group CEO
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Through it's technology offering, Huddlestock offers an innovative, compliant and data-centric Investment & Wealth Tech SaaS, accelerating the digital transformation, and trends of hyper-personalization and on-demand banking within the wealth management industry.
Huddlestock's SaaS empowers the embedding of low-cost, efficient white-label trading and investment services, underpinning Huddlestock's mission of assisting our B2B clients to deliver financial inclusion by democratizing access to capital markets.
Through its world-class experts, Huddlestock delivers innovative and industry leading strategic technology solutions and process automation for the financial services industry. Our experts within the consulting division, enjoy strong, multiyear client relationships across the financial services sector in the Nordic.
Huddlestock Fintech AS was listed on Euronext Growth Market 26 November 2020, as Norway's first fintech company to be publicly traded
•November 2022 record revenue of NOK 2.230.000
•January 2023 record revenue of NOK 2.410.000
Deliver innovative technology solutions for the Trade and WealthTech industries.
Consolidated 4Q Revenues NOK 13.2 M
Consolidated 4Q EBITDA NOK – 8.0 M
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Scaling up for future growth and profitability with transformational investments.
8 *Proforma revenues include F5 IT, Trac Services and Tracs Technology from 1st January 2022.
Scaling up for future growth and profitability with transformational investments.
Scaling up for future growth and profitability with transformational investments.
Scaling up for future growth and profitability with transformational investments.
11 *Proforma revenues include F5 IT, Trac Services and Tracs Technology from 1st January 2022.
Continuing to outperform peers.
Average daily traded volume of shares 2022 326,091 210,630 in 2021
| Rank | Name | Holding | Stake in % |
|---|---|---|---|
| 1 | VISION INVEST STAVANGER AS | 8 286 715 | 6,12 |
| 2 | Bank Julius Bär & Co. AG | 7 636 250 | 5,64 |
| 3 | SAA INVEST AS | 7 000 000 | 5,17 |
| 4 | F5 HOLDING AS | 6 431 667 | 4,75 |
| 5 | HUDDLESTOCK FINTECH AS | 5 144 907 | 3,80 |
| 6 | BERKER GROUP AS | 5 000 000 | 3,69 |
| 7 | SAAMAND AS | 4 457 638 | 3,29 |
| 8 | GENTLE INVEST AS | 4 300 000 | 3,18 |
| 9 | GRUNNFJELLET AS | 3 995 000 | 2,95 |
| 10 | STEIN HEGRE HOLDING AS | 3 230 000 | 2,39 |
| 11 | GJEDREM AS | 3 072 618 | 2,27 |
| 12 | NORDNET LIVSFORSIKRING AS | 2 601 822 | 1,92 |
| 13 | Myrlid AS | 2 552 089 | 1,88 |
| 14 | HOGNAN INVEST AS | 2 494 512 | 1,84 |
| 15 | BILL INVEST AS | 2 256 847 | 1,67 |
| 16 | HEDEN HOLDING AS | 2 100 000 | 1,55 |
| 17 | KJELL'S OCTOPUS INVEST AS | 1 943 640 | 1,44 |
| 18 | E HOLDING AS | 1 670 000 | 1,23 |
| 19 | COLIBRI INVEST AS | 1 617 818 | 1,19 |
| 20 | VALINOR AS | 1 563 852 | 1,15 |
| 21 | UBS Switzerland AG | 1 535 467 | 1,13 |
| 22 | KT GLOBAL INVEST AS | 1 500 000 | 1,11 |
| 23 | HAFT AS | 1 386 219 | 1,02 |
| 24 | Nordnet Bank AB | 1 372 031 | 1,01 |
| 25 | VEITEBERG | 1 288 111 | 0,95 |
| 26 | RYGA INVEST AS | 1 144 160 | 0,84 |
| 27 | Saxo Bank A/S | 1 089 475 | 0,80 |
| 28 | ALA AS | 1 080 061 | 0,80 |
| 29 | HENØEN | 1 062 796 | 0,78 |
| 30 | CLEARSTREAM BANKING S.A. | 1 012 334 | 0,75 |
| 31 | SIRIUS AS | 1 000 000 | 0,74 |
| 32 | SKAJEM | 961 606 | 0,71 |
| 33 | Avanza Bank AB | 929 897 | 0,69 |
| 34 | Didex AS | 804 609 | 0,59 |
| 35 | Skandinaviska Enskilda Banken AB | 750 447 | 0,55 |
*Investment subject to regulatory approval of purchase of Trac Services and Tracs Technology.
Empowering our clients to deliver access to global capital markets through simple, accessible, and personalized trading and investing solutions.
Huddlestock solutions Innovative – Modular - Collaborative
Technology first!
Reshaping financial markets through digital transformation and innovation.
Creating shareholder value
| Huddlestock Trader | Huddlestock Trader is a White Label Trading API. A flexible, modular trading solution, easily integrated alongside already-existing client services via APIs. |
|---|---|
| Huddlestock Wealth Manager | A fully integrated white label Wealth Manager solution for front office, built on top of our White Label Trading API Huddlestock Trader. |
| Huddlestock Investor Services | Outsourced back office, Compliance, KYC, Custody |
| Huddlestock Technologies | Outsourced technology solutions |
| Visigon Expert Consultants | Visigon – an expert consultancy for strategic technology planning, pre- and post-implementation support services. |
delivering innovative and sustainable technology; compliant solutions to the capital markets, treasury and wealth management industries.
Strategically optimized organisation following a strategic review
Njord Group appoints two new board members.
Øyvind is a serial entrepreneur with more than 25 years of experience in starting and scaling companies in various industries. Notably Cyviz AS – with offices globally, and Vision IO AS, a leading optic camera provider to the Oil and gas industry.
Ramtin Matin is Head of Innovation at Sparebank 1 SR-Bank. He has a strong track record in technology innovation within the financial services industry, applying AI and Blockchain. His previous roles include hands-on participation in portfolio companies within SR-Banks Venture Fund Finstart Nordic, regional lead and Senior Solutions Architect for SAS Institute, management consulting with PWC.
Morten has been an instrumental part of the management in all the Tracs companies prior to now getting more engaged inn Tracs Accounting and the overall financial control of the Njord group. Morten brings stability, financial and administrative know how to the Board.
Jan Sigurd is the Chief Investment Officer for Glastad Holding, which is the parent company of most of the Group´s investments, including Huddlestock Fintech AS. He has a long and distinguished carrier with investments and finance and brings to the board a wealth of knowledge and experience
Scaling up for future growth and profitability with transformational investments.
22 *Proforma revenues include F5 IT, Trac Services and Tracs Technology from 1st January 2022.
Scaling up for future growth and profitability with transformational investments.
Delivering and investing in strategic technology solutions
*Proforma numbers includes F5 IT and Tracs from January 2022. Reported numbers consolidates F5 IT from May 2022. 24
Scaling up for future growth and profitability. Investing in technology. Internal synergies.
*Proforma numbers include F5 IT and Tracs from January 2022. Reported numbers consolidates F5 IT from May 2022.
Scaling up for future growth and profitability. Investing in technology. Internal synergies.
A story of two halves. Continued focus on client deliveries and growing recurring revenue streams.
| Consolidated Income Statement (in NOK) | 4Q2022 | 4Q22 Pro-forma | 4Q2021 | 2022 | 2022 Pro-forma | 2021 |
|---|---|---|---|---|---|---|
| Operating income | ||||||
| Other operating income | 13 163 974 | 13 651 444 | 46 051 428 | 61 598 816 | 23 363 188 | |
| Total operating income | 13 163 974 | 16 192 996 | 13 651 444 | 46 051 428 | 61 598 816 | 23 363 188 |
| Operating expenses | ||||||
| Cost of materials/subcontractors | 8 038 326 | 1 592 362 | 12 817 116 | 2 931 122 | ||
| Personnel costs | 16 143 055 | 6 449 814 | 45 174 857 | 17 406 300 | ||
| Depreciation and amortisation | 3 290 941 | 3 546 854 | 4 540 250 | 12 811 866 | 14 286 493 | 10 594 597 |
| Other operating expenses | -3 491 187 | 5 873 346 | 2 017 723 | 10 626 087 | ||
| Total operating expenses | 23 981 135 | 27 419 491 | 18 455 772 | 72 821 562 | 91 872 588 | 41 558 106 |
| EBITDA | -7 526 219 | -7 679 641 | -264 077 | -13 958 268 | -15 987 280 | -7 600 321 |
| EBIT | -10 817 160 | -11 226 495 | -4 804 327 | -26 770 134 | -30 273 772 | -18 194 918 |
| Financial income | ||||||
| Interest income | 3 | -4 119 | 428 807 | 0 | ||
| Other financial income | -73 589 | 179 963 | 272 602 | 221 357 | ||
| Total financial income | -73 586 | 175 844 | 701 410 | 221 357 | ||
| Financial expenses | ||||||
| Interest expenses | 151 890 | 1 053 830 | 764 829 | 2 022 537 | ||
| Other financial expenses | 97 883 | -381 011 | 411 840 | 201 370 | ||
| Total financial expenses | 249 773 | 672 819 | 1 176 669 | 2 223 907 | ||
| Net financial items | -323 359 | -496 975 | -475 259 | -2 002 550 | ||
| Net profit (loss) from discontinued operations | 0 | -169 556 | 0 | -84 778 | ||
| Profit (loss) before tax | -11 140 519 | -5 470 858 | -27 245 393 | -20 282 246 | ||
| Income tax | 607 523 | -364 050 | 1 060 611 | 656 653 | ||
| Net profit (loss) | -10 532 996 | -5 834 908 | -26 184 782 | -19 625 593 |
*Proforma numbers includes F5 IT and Tracs from January 2022. Reported numbers consolidates F5 IT from May 2022.
| Consolidated Financial Position (in NOK) | 31.12.2022 | 31.12.2021 |
|---|---|---|
| ASSETS | ||
| Intangible assets | ||
| Research and development | 66 764 566 | 23 333 391 |
| Goodwill | 52 957 680 | 42 473 747 |
| Technology | 6 383 333 | 2 650 000 |
| Customer contracts and relationships | 17 214 654 | 22 314 424 |
| Licenses | 3 071 259 | 32 182 204 |
| Total intangible assets | 146 391 492 | 122 953 766 |
| Fixed assets | ||
| Investment in equities | 199 980 | 0 |
| Property, plant & equipment | 374 690 | 0 |
| Total fixed assets | 574 670 | 0 |
| Total non-current assets | 146 966 162 | 122 953 766 |
| Receivables | ||
| Trade receivables | 11 636 516 | 8 854 063 |
| Other short-term receivables | 7 016 006 | 9 433 022 |
| Total receivables | 18 652 522 | 18 287 085 |
| Bank deposits, cash and cash equivalents | 2 817 727 | 16 222 128 |
| Total current assets | 21 470 249 | 34 509 213 |
| Total assets | 168 436 411 | 157 462 979 |
| Consolidated Financial Position (in NOK) | 31.12.2022 | 31.12.2021 |
|---|---|---|
| EQUITY | ||
| Paid-in capital | ||
| Share capital | 257 278 | 244 612 |
| Share capital - not registered | 0 | -20 457 |
| Own shares | -9 811 | 0 |
| Share premium | 131 398 440 | 114 085 130 |
| Total paid-in capital | 131 645 907 | 114 309 285 |
| Total equity | 121 012 918 | 114 309 285 |
| LIABILITIES | ||
| Long-term liabilities | ||
| Other long-term liabilities | 5 958 296 | 6 283 333 |
| Deferred tax | 5 191 557 | 5 492 173 |
| Total long-term liabilities | 11 149 854 | 11 775 506 |
| Short-term liabilities | ||
| Accounts payable | 6 580 468 | 2 829 085 |
| Payroll taxes, VAT etc. | 8 238 573 | 2 832 639 |
| Loans and borrowings | 6 346 864 | 216 667 |
| Other short-term liabilities | 15 107 735 | 25 497 280 |
| Total short-term liabilities | 36 273 639 | 31 375 671 |
| Total liabilities | 47 423 494 | 43 151 177 |
| Total equity and liabilities | 168 436 411 | 157 462 979 |
| Consolidated Statement of Cash Flows (in NOK) | 2022 | 2021 |
|---|---|---|
| Cash flows from operating activities | ||
| Profit (loss) before tax | -27 245 393 | -20 282 245 |
| Depreciation and amortisation | 12 811 866 | 10 594 597 |
| Net result discontinued operations | 0 | 84 778 |
| Changes to accounts receivable | -2 782 453 | -2 490 783 |
| Changes to accounts payable | 3 751 382 | -1 595 942 |
| Changes to other accruals and prepayments | -1 356 802 | 6 853 009 |
| Net cash flow from operating activities from continuing operations | -14 821 399 | -6 836 586 |
| Cash flows from investment activities | ||
| Additions intangible assets | -15 184 143 | -5 014 282 |
| Aquisition of subsidiaries, net of cash aquired | 0 | -30 927 835 |
| Transaction cost | -865 448 | -2 623 527 |
| Short term loan | 0 | 0 |
| Received government grants | 0 | 0 |
| Net cash flow from investment activities from continuing operations | -16 049 591 | -38 565 643 |
| Cash flows from financing activities | ||
| Proceeds from capital increase | 2 150 000 | 54 165 925 |
| Costs of capital increase | 0 | -2 000 000 |
| Treasury shares | 9 511 428 | |
| Loans obtained | 5 805 160 | 6 500 000 |
| Net cash flow from financing activities from continuing operations | 17 466 588 | 58 665 925 |
| Net changes to cash and cash equivalents from continuing operations | -13 404 401 | 13 263 695 |
| Continued operations | ||
| Bank deposits, cash and cash equivalents per 1.1. | 16 222 128 | 2 958 433 |
| Bank deposits, cash and cash equivalents per 31.12. | 2 817 727 | 16 222 128 |
John E. Skajem Group CEO [email protected] +47 418 87 412
Anders Peinert Group CFO [email protected] +47 934 79 634
Images & Photography: unsplash.com and pixabay.com Icons: flaticon.com and Icon8.com 32
This presentation has been prepared by Huddlestock Fintech AS (the Huddlestock) solely for the use at the presentations to investors held in connection with the presentation of the past results of the certain period and anticipated future performance. This presentation is being made only to, and is only directed at, person to whom such presentation may lawfully be communicated (Recipients). Any person who is not a Recipient should not act or rely on this presentation or any of its contents. This presentation is provided to the Recipients for information purposes only. This presentation is strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person. This presentation speaks only as of their date, and the views expressed are subject to change based on a number of factors, including, without limitation, macroeconomic and equity market conditions, investor attitude and demand, the business prospects of the Huddlestock and other specific issues. This presentation and the conclusions contained herein are necessarily based on economic, market and other conditions, as in effect on, and the information available to the Huddlestock as of, their date. This presentation does not purport to contain a complete description of the Huddlestock or the market(s) in which the Huddlestock operates, nor do they provide an audited valuation of the Huddlestock. The analyses contained in this presentation are not, and do not purport to be, appraisals of the assets, stock or business of the Huddlestock or any other person. Moreover, this presentation is incomplete without reference to, and should be viewed and considered solely in conjunction with, the oral briefing provided by an authorised representative of the Huddlestock in relation to this presentation. The Huddlestock strongly suggests that each Recipient seeks its own independent advice in relation to any financial, legal, tax, accounting or other specialist advice. In particular, nothing herein shall be taken as constituting the giving of investment advice and this presentation are not intended to provide, and must not be taken as, the exclusive basis of any investment decision or other valuation and should not be considered as a recommendation by the Huddlestock (or any of its affiliates) that any Recipient enters into any transaction. This presentation comprises a general summary of certain matters in connection with the Huddlestock. 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Any statement, estimate or projections included in this presentation (or upon which any of the conclusion contained herein are based) with respect to anticipated future performance (including, without limitation, any statement, estimate or projection with respect to the condition (financial or otherwise), prospects, business strategy, plans or objectives of the Huddlestock and/or any of its affiliates) may prove not to be correct. No representation or warranty is given as to the completeness or accuracy of any forward looking statement contained in this presentation or the accuracy of any of the underlying assumptions. Nothing contained herein shall constitute any representation or warranty as to the future performance of the Huddlestock, any financial instrument, credit, currency rate or other market or economic measure. Information about past performance given in this presentation is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. Neither the Huddlestock not any of its affiliates has verified the achievability of any estimate or forecast of future financial performance contained herein (including, without limitation, any estimate of potential cost savings and synergies, nor of any of the methods underlying the preparation of any such estimate of forecast). The Huddlestock does not accept or will not accept any responsibility, duty of care, liability or obligations for providing any Recipient with access to additional information, for updating, modifying or otherwise revising this presentation or any of their contents (including, without limitation, any estimate or forecast of future financial performance), for correcting any inaccuracy in this presentation or their contents (or any other written information or oral information provided in connection therewith) which may become apparent, or for notifying any Recipient or any other person of any such inaccuracy. This presentation shall not be construed as a prospectus or an offer to sell, or a solicitation of an offer to buy, any security or any business or assets, nor to enter into any agreement or contract with any Recipient, the Huddlestock (or any of their respective affiliates) or any other person. Any potential transaction that may be related to the subject matter of this presentation will be made pursuant to separate and distinct documentation and in such case the information contained herein will be superseded in its entirety by such documentation in final form. This presentation do not create any obligation on the part of the Huddlestock to consider any offer from any Recipient or any other person. The Huddlestock reserves the right, without prior notice and without giving reasons, to vary or terminate the contemplated transaction, to reject any or all proposals and/or to negotiate with any Recipient or any other person and any terms (and whether individually or simultaneously with any other person or persons) with respect to any transaction involving the Huddlestock. An investment in the Huddlestock involves risk, and several factors could adversely affect the business, legal or financial position of the Huddlestock or the value of its securities. An investment in the Huddlestock is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of their investment. This Presentation speaks as at the date set out on its front page. Neither the delivery of this Presentation nor any further discussions of the Huddlestock or the Managers with the Recipient shall, under any circumstances, create any implication that there has been no change in the affairs of the Huddlestock since such date. Neither the Huddlestock nor the Managers assume any obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation (including in relation to forward-looking statements). The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice. By accepting this presentation, each Recipients represents and warrants that it is able to receive them without contravention of an unfulfilled registration requirements or other legal or regulatory restrictions in the jurisdiction in which such Recipients resides or conducts business. By accepting this presentation each Recipient agrees to be bound by the foregoing limitations.
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