Inin Group AS — Earnings Release 2020

Mar 8, 2021

Elop AS on track to deliver on growth plan | Full-year 2020 financial results

Elop AS on track to deliver on growth plan | Full-year 2020 financial results

8 March 2021 – Elop’s operational development progressed in line with the company’s business plan in 2020 and into 2021. The company has experienced a solid and growing interest for both Elop’s technology and Simplifai’s AI solutions, resulting in a 48% increase in customer leads for Elop since tech launch and several breakthrough contracts for Simplifai. Simplifai’s recuring revenues grew by 50% in 2020 and continue to grow fast. Moreover, approximately NOK 30 million in cost synergies have been identified between Elop and Simplifai for realisation in 2021.

“The main enablers for our growth plan are our unique patented ultrasound technology and Simplifai’s AI solutions and competence. So far we have only seen the start of the real effects we will generate by combining the technology and solutions from our two units. We expect the coming months and years to be very exciting,” says Øivind Horpestad, executive chairman of Elop.

Growing sales pipeline for Elop

In December last year, Elop successfully launched the world’s first rolling ultrasound scanner for commercial use. The pipeline of potential customers of the scanner continues to grow. Since the launch in December, the number of requests has grown by 48%. Even though Elop’s ability to demonstrate the technology has been somehow negatively impacted by limitations caused by Covid-19, the company is in advanced negotiations with numerous potential customers.

Elop is also in dialogue with several potential industry partners, including some with global distribution, that are looking at ways to integrate Elop’s technology into existing hardware offerings for inspection and monitoring of concrete infrastructure.

“The commercial launch in December opened up a global market for our technology. We are excited about industrial partnership and OEM opportunities that will make our technology and solutions available in different shapes for different segments. We are in discussions with several companies about integrating our technology into existing or new solutions that they have. This could also fast-track our SaaS revenue model,” says Øivind Horpestad.

ARR growth for Simplifai

Elop’s AI business unit, Simplifai, has made excellent progress in the fourth quarter an into 2021. Simplifai secured a bank sector breakthrough for its AI-powered digital employee technology in November last year. In 2021, Simplifai has secured similar market breakthroughs in India, Singapore and in the Norwegian public and online retail sectors.

Simplifai’s business was significantly impacted by Covid-19 in 2020. Despite this, the company’s recurring revenues were around 50% higher at year-end 2020 compared to the same time in 2019, increasing its recurring revenue share of total revenues to 38% from 20% in the same period.

“We see a very strong recuring revenue growth from Simplifai so far in 2021 and we expect this to continue going forward. The combination of several recent market breakthroughs and an attractive pipeline of contracts will contribute towards this,” adds Øivind Horpestad.

Elop’s management is currently working to on-board Simplifai’s capabilities and integrating them with the business. During this implementation work, Elop and Simplifai has together identified approximately NOK 30 million in potential synergies that they aim to realise in 2021. This includes development work that Simplifai can solve instead of Elop outsourcing it to third parties.

Full-year 2020 results

In line with its business plan, Elop had zero revenues in 2020 as its efforts were directed towards a successful commercial launch of its patented ultrasound technology in December 2020.

Elop held cash and cash equivalents of NOK 116 million at year-end 2020.

The acquisition of Simplifai was completed in January 2021. Simplifai’s financial results will hence be consolidated into Elop AS from 1 January 2021.

ENDS

For further information, please contact:

Media

Øivind Horpestad, Executive Chairman and CEO of Elop, tel: +47 910 00 626

Investors

Torbjørn Blom-Hagen, CFO of Elop, tel: +47 926 48 847

About Elop AS

Elop is a Norwegian technology company that has developed tools and digital solutions to inspect, monitor and manage infrastructure worldwide. The company’s technology portfolio includes a patented ultrasound technology for inspection and analysis of critical infrastructure. Through data-driven and AI-based solutions for inspection and predictive maintenance of concrete infrastructure, Elop’s vision is to provide asset owners with solutions that improve safety, extend asset lifetime, minimise total lifecycle cost and environmental footprint. Elop is headquartered in Norway. More information: www.elop.no

About Simplifai

Simplifai is Elop’s AI business unit. It supports Elop with developing data-driven and AI-based solutions for inspection and monitoring of critical infrastructure. Simplifai operates as a stand-alone business where it develops automation solutions using artificial intelligence to help clients across numerous industry sectors to grow effeciently. For example, Simplifai’s Digital Employee solutions can automate labour intensive work process where natural language communication including email, chat or documents are central, for example in customer relations, case handling, HR and accounting. Simplifai was acquired by Elop in January 2021. More information: www.simplifai.ai

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This is information that Elop AS is obliged to make public pursuant to the EU Market Abuse Regulation (MAR) Article 17 no. 1. The information was submitted for publication, through the Oslo Stock Exchange Newspoint Service by the contact persons set out above