Ndrdic ID - Speaker Deck

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SaaS KLUBI NORDIC ID 31.3.2020 / JUUSO LEHMUSKOSKI

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www.nordicid.com • Juuso Lehmuskoski, 37 • MSc. Business, University of Vaasa • Nordic ID • Vice President, Solutions & Services • Deputy CEO WHO ARE YOU?

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www.nordicid.com • Joy of recurring revenue • Selling services versus serving customers • From device manufacturer to solution provider • Difficulty of focusing EXECUTIVE SUMMARY

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www.nordicid.com OUR TARGET NORDIC ID IN 2023 >40 Turnover: mEUR 30% Average targeted annual Growth rate: Major growth in sales and value add Services & Solutions 2023

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www.nordicid.com www.nordicid.com Nordic ID is a Nasdaq First North listed company, that offers real time information on item flows to support customers’ decision making.

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www.nordicid.com WHY NASDAQ FIRST NORTH • Improved credibility in global markets as service provider • More flexibility on structuring deals for non-organic growth • Ability to seek additional capital to support growth

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www.nordicid.com NORDIC ID IN NUMBERS 9,2 Revenue 2019: mEUR 76 % Export Of revenue 30 % Growth of Service & Solutions2019: 47 Number of staff (12/2019): 2 Business Units Devices | Services & Solutions n. 300 Number of customers: 30 % Target for CAGR: 40 Revenue Target 2023: mEUR In 2023

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www.nordicid.com LIIKEVAIHDON KEHITYS 2019 JA H2 2019 H2/2018 Kokonaisliikevaihto (mEUR) 2019 2018* 2,2% 9,23 9,03 9,23 Liikevaihto H2 (mEUR) 1,35 30% 2018 2019 Palveluratkaisujen liikevaihto (mEUR) 1,76 2019 2019 586 % 2018 0,06 0,4 PaaS-liikevaihto (mEUR) *Tilikausi 2018 (1.4-31.12.2018) oli 9 kk pituinen. Graafeissa esitetty laskennalliset vertailuluvut 12 kk:n jaksolta. H2/2018 H2/2019 3,89 4,59 18%

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www.nordicid.com NORDIC ID OFFERING IN BRIEF

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www.nordicid.com NORDIC ID PRODUCT PORTFOLIO NORDIC ID HH53 NORDIC ID HH83 RF SERIES NORDIC ID SAMPO NORDIC ID AR NORDIC ID STIX NORDIC ID EXA NORDIC ID ANTENNAS NORDIC ID RFID EMBEDDED MODULES HANDHELD READERS RAIN RFID FIXED READERS RAIN RFID READER ENHANCEMENTS OTHER RAIN RFID PRODUCTS BARCODE READERS RAIN RFID HANDHELD READERS

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www.nordicid.com RADEA PLATFORM

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www.nordicid.com NORDIC ID SOLUTION PLATFORM SOLUTION PLATFORM

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www.nordicid.com FROM DEVICE MANUFACTURER TO SERVICE PROVIDER

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www.nordicid.com PAAS solutios RFID Barcode 2018 2017 1986 2003 2010 2012 1998 2001 2002 2014 2016 1995 Nordic ID is established Nordic ID RF400 First integrated barcode reader PiccoLink RF500/600 The most sold Nordic ID product Nordic ID RF600 First RFID reader The launch of the Nordic ID NUR Module Nordic ID NIDA first SW application platform for integrators Nordic ID EXA- series, first extension for smart devices supporting Android and iOS Nordic ID productified solutions German subsidiary The Internationalisation Award of the President of the Republic US subsidiary Nordic ID RF-series and PL2000 barcode readers part of the collection of Design Museum in Helsinki Nordic ID launches PAAS-solutions for a monthly fee Launches of new smart Nordic ID devices FROM DEVICE MANUFACTURER TO SERVICE PROVIDER

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www.nordicid.com VALUE INCREASE 15 PRODUCTS Reader, Antenna, Tags, etc. SOLUTIONS Software platform & Data SERVICE Information, analytics, value add

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www.nordicid.com PARADIGM SHIFT IN BUSINESS 2017 2018 2019-2020 2021- SERVICE, ANALYTICS DATA CONSOLIDATION DATA COLLECTION ARTIFICIAL INTELLIGENCE NORDIC ID OFFERING SW + HW PRODUCTS HW DEVICES DEVICE MANAGEMENT INTELLIGENCE SW + HW PRODUCTS HW DEVICES DATA CONSOLIDATION DEVICE MANAGEMENT SW + HW PRODUCTS HW DEVICES DATA CONSOLI- DATION SOLUTION SERVICE DEVICE MANAGEMENT SW + HW PRODUCTS HW DEVICES DATA CONSOLI- DATION SOLUTION SERVICE

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www.nordicid.com FROM DEVICE MANUFACTURER TO SERVICE PROVIDER Sales project Non-Recurring / One-off project sales Initial delivery & implementation (CAPEX) Sales project Sales project Monthly subsciption Software lisence fee (SaaS) + support fee 60% Monthly cost for devices (OPEX) 40% • Cost based pricing in HW business • Project sales • Difficult to forecast • Large portion of revenue is ”left on the table” if software and services are not part of the offering • Value based pricing + higher profit margin • Recurring revenue • Easy to forecast • New sources of revenue (SW+Serv.) • Larger ”Share of Wallet”

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www.nordicid.com SELLING SERVICES OR SERVING CUSTOMERS MYTH OF SaaS

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www.nordicid.com AGONY OF FOCUS

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www.nordicid.com FOCUS VERTICALS

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www.nordicid.com “Fortune 500” Global mid-segment - Agility in decision making - Fast roll-out -Market challengers Small & Micro companies “Invitation only”

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www.nordicid.com CUSTOMER CASES

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www.nordicid.com ASIAKKAAMME

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www.nordicid.com NORDIC ID SELF CHECK-OUT

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www.nordicid.com CASE: GINA TRICOT Issue: Need to implement omnichannel sales model and reduce working capital tied into inventory Solution: Realtime inventory solution from Nordic ID +5% Sales -15% Working Capital + 7% Profit / Sales person -75% Inventory resources

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www.nordicid.com CASE: NESTE EASY DELI Issue: Old solution was implemented with multiple vending machines. Old set up limited the selection and customer experience was poor. Solution: Unmanned shop using RFID. Nordic ID S/MART

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www.nordicid.com

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THANK YOU Juuso Lehmuskoski VP, Services & Solutions +358 40 510 3790 juuso.lehmuskoski@nordicid.com www.nordicid.com