Tech Leader. Price Leader. Market Leader! · 2020. 10. 22. · Contents 01 weclapp at a Glance 02...

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Tech Leader.Price Leader.Market Leader!ERP 4.0 Platform: Built for Teams

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Contents

01 weclapp at a Glance

02 Business and Pricing Model

03 The Perfect Market-Product-Fit06 Growth Strategy

07 weclapp Investment Case

04 No Cluster Risks: Growing and Diversified Customer Base 08 The Team and the Spirit

05 Ahead of the Competition

V.2.03.21 weclapp Corporate Presentation 2|

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01weclapp at a Glance


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Ertan Özdil,CEO

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What Makes Us Tick

“weclapp is not just some enterprise software, no technical gimmick.

It’s a philosophy, a spirit.It’s about teams and collaboration. It’s about speed and comfort. It’s about efficiency and customer delight!

Once you enter this smart universe,once you embark on weclapp, your business will never be the same again.”


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Brief History

weclapp SE (i.e. Societas Europaea, Corporation under European law with two-tier governancesystem)Established in 2008 by Ertan Özdil, founder and 25 % shareholderEUR 20 million internal financing provided by parentcompany, 3U HOLDING AGDevelopment of genuinely cloud-based ERP platformMarket entry in 2013 – since then approx. 100 % CAGR organic revenue growth to EUR 4.65 million in 20192016: Cash breakeven2018: 30 % EBITDA margin2019: 27 % EBITDA marginCurrently >70 employees in Germany (Marburg, Frankfurt, Kitzingen) plus external developer teamin Mumbai, India


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Tech Leader. Price Leader.Market Leader!

Our genuinely cloud-based ERP solution offers users a unique experience of usability and collaboration designed to enhance your business.

Cutting-edge technology at a very reasonable price is generating demand that is accelerating in Germany and on an international scale.

Our declared mission is to become the preferred solution of SMBs around the globe.


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Key Differentiatorweclapp is the ERP-platform teams would chooseweclapp embraces CRM, merchandise management, accounting, and henceweclapp empowers teams to manage all their core company processes using only one software suite


Built for Teams

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Determined Shareholders

Both current shareholders are determined to stay on board and have declared that they will sign a 24-month lock-up-agreement in the event of an IPO.

V.2.03.21 weclapp Corporate Presentation 8

25 %Ertan Özdil

Founder75 %3U HOLDING AG

Success in megatrends!

3U is a management and investment holding company with a strong track record of identifying, harnessing, and successfully capitalizing on advanced technologies. Find more at www.3u.net

http://www.3u.net/

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Strong and Sustainable Revenue Growth


59,00339,00

546,00

1.030,00

1.907,00

3.032,00

4.650,00

~ 7.000

2013 2014 2015 2016 2017 2018 2019 2020e

weclapp revenue in TEUR

Cash positive since 2016Profitable since 2017

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1.243

3.059

5.266

7.957

11.918

14.27615.348

16.517

17.772

19.410

21.739

25.453

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

No External Funding –Bootstrapped


weclapp acc. total cost in EUR mn

Development pre cash-breakeven100 % financed by 3U HOLDING AG

Positive operatingcashflow since 2017

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02Business andPricing Model


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Business Model:

Majority of revenues resulting from recurring revenues (SaaS)

High revenue visibility: Generally advance payment per license for 12-month and 24-month contracts

Smallest customers use two licenses, biggest single customer holds 256 licenses


Software-as-a-Service (SaaS)

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Price Leader

Cloud CRM

The compact CRM solution (Contact and Customer Management) for growing companies

Contact management360-degree customer fileMail, calendar and documentsEmail automatizationTelephone connection (CTI)Campaign and selling opportunities

Cloud ERP Services

The all-round package for service providers, agencies and consulting

Quotes and ordersInvoicesProject managementTime recordingRecurring billingForm designerAccounting

+ All CRM features

Cloud ERP Trade

The all-round e-commerce package for retailers, wholesalers, production

Merchandise management systemPlanning and purchasingWarehouse managementProductionWebshop interface and AmazonSerial and batch numbers

+ All CRM and ERP services features


EUR 15 EUR 29 EUR 59

Prices per month per license for a 24-month contract with bi-annual advance payment. Cf. https://www.weclapp.com/en/

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03The PerfectMarket-Product-Fit


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Forefront of a Revolution


ERP 1.0

ERP2.0

ERP 4.0SaaS plus Artificial

Intelligence as a Service (AIaaS)2020 onward

Of this group, 70 % to 80 % will offer fully integrated AIaaS systems, which means around 100 ERP vendors will survive!

Maximum automization and therefore maximum efficiency of business processes requires specialists SMB do not have. Hence high demand for AIaaS.More affordable

server- and desktop-based IT systems

Large corporations -mainframe IT systems

ERP3.0

Software as a Service (SaaS) resp. Cloud Computing since 2005

On-Premises Software since 1990

Mainframe Software1975 - 1990

... only a handful actually offer cloud-based ERP systems, while 30 % of the remaining might develop pure play cloud-based ERP systems.

Currently 500 ERP vendors in Germany …

Highly advanced, flexible and scalable, ubiquitous working. Affordable for SMB,100 % cloud-based and hence precursor of artificial intelligence integration (machine learning)

weclappForecast :

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A Large and Growing Market

No. of SMBs


Cloud ERP Market ForecastRevenue worldwide2019-2025: +16.71 % CAGR

24,2

28,7

34,3

40,3

46,8

54

61,2

2019 2020 2021 2022 2023 2024 2025

Re

ven

ue

(in

US

D b

illio

n)

Source: Markets and Markets, 2020

USD 37.7 billionCloud ERP spend by 2024: +9 % CAGR

Germany

6million

Europe23+

million

World

200+million

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Problem: Current Software Environment Fails to Rise to SMB Challenges

SMBs lose their way in the jungle of software environments,because it’s expensive, complex, chaotic


In striving to maintain or win competitive advantage, SMBs are faced by multiple challenges:

Gaining ubiquitous access to their data

Accelerating internal workflows

Facilitating cooperation with other enterprises

Expanding their data bases and capitalizing on them more

Developing or licensing specific optimization tools and algorithms

The vast majority of ERP systems or applications currently in the market do not offer anything that comes close! They are standalone, single-entity solutions with high maintenance costs and abundant interfaces and media disruptions.

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Solution: weclapp Helps Master SMB Challenges

weclapp rightfully boasts the ideal market-product-match

Accessible anyplace, anytime, with any computing device

Built for teams

Platform approach encourages joint undertakings involving different enterprises — cross-border, cross-industry

Cloud-based means mutual access to market and customer data

Efficient and scalable internal workflows thanks to the platform approach

Enhanced opportunities and efficiencies thanks to machine learning algorithms developed in house

These USPs are supplemented by outstanding usability and much appraised user experience.


One login. One user interface. One platform

SMBs discover weclapp‘s comprehensive benefits

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04No Cluster RisksGrowing and DiversifiedCustomer Base


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Steady Growth in Customer Base


5 3285

163240

373

558

763

1.112

1.426

1.797

2.139

2.353

2.564

2.900

3.100

Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 Jan 20 Jul 20

Key Peformance Indicators

Sign-Ups45,000+

ARPAEUR 2,000+

Paying Customers3,100+

LTVEUR 18,000+

Trial to conversion12 %+

CAC (YTD Oct 2020)EUR

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weclapp Customers by Industry


Retail7%

Wholesale13%

E-commerce9%

IT Service Providers

19%

Service providers media and communication

16%

Consulting9%

Other12%

Manufacturing15%

“Thanks to the high flexibility of weclapp, we

can automate and standardize our

processes.”

Andreas Roser, Fabb-IT(3D-print manufacturing)

“All modules are interconnected and

communicate with each other – it is fantastic.”

Mürsel Topal, Maxim Design

“With weclapp, the entire team is free to

focus on the core business - and the APIs

are really a major advantage.”

Jacob Lierenfeld, Just Spices

(ecommerce spice trade)

“We have raised our revenue considerably. weclapp has paid off since the first day.”

Helmut Holz, redomed(Health sector

IT-services)

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weclapp Customers by Size

Strategy: Win bigger customers!

How to read the chart:

At present, 90.5 % of weclappcustomers yield a monthly recurring revenue (MRR) of less than EUR 500 each. Only 0.4 % of customers account for MRR of more than EUR 2,000 each.

On the other hand, those 90.5 % of customers generate a mere 64.9 %, while the top 0.4 % stand for 4.4 % of revenues.

Increasingly, weclapp is targeting larger SMBs and subsidiaries of multi-billion-euro groups


90.5 %

64.9 %

7.3 %

20.8 %

1.8 %

10.0 %

0.4 %

4.4 %

0% 20% 40% 60% 80% 100%

< EUR 500 EUR 500 - 999 EUR 1000 - 1999 > EUR 2000

Number of customers by MMR classes

Share of total MMR by customer classes (as below)

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05Ahead of theCompetition


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Our Customers Make Extensive Use of weclapp

Customer activities on the weclapp platform since market entry


840,000+ Proposals sent

>EUR 23 bn Total proposal value

6,460,000+ Invoices sent

>EUR 5 bn Total invoicing value

>EUR 1.4 bn Goods procured

>4.8 million Deliveries processed

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weclapp Claims the Pole Position:Tech Leader and Price Leader

On-premises ERPbecomes obsolete

Server installation tedious and expensive

Updates and new versions need to be implemented on site

Customization requires time and money and results in isolated solutions per client

No collaboration

No „Big Data“

Quick onboarding, noin-depth customization

Updates by pushing a buttonCollaboration

Big Data as prerequisite for designing and implementing machine learning algorithms

weclapp‘scompetitive advantage: no inherent barriers to growth

Based on operating business processes rather than financial accounting

Community and market place

Designed for global use –no regional or industry biasMulti-language versions available

Best price-/performance-ratio


Cloud-based systemsare superior to ERP 2.0

ERP

2.0

ERP

3.0

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Competitive Environment

“Yes, we see them all, the big players as well as the small ones. But when customers sit down to make a decision, it all boils down to a very small battlefield.”

Ertan Özdil


Core battlefield

myfactory ScopeVisio

actindo

odoo plentymarkets JTL

Xentral

Exact

Epicor

Comarch

Selectine LexofficeLexwarelexbizz

Bexio (CH)

kameon

Infor

Allgeier

MicrotechSage

Oracle

Microsoft Dynamics

Netsuite SAP

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What Makes Us Tech Leader?

Outstanding System Architecture

Service layer based on modern Java Enterprise standardsAPI first! 100 % REST API coverage of the platform

UI/UX first

High quality ensured through automated tests

Architecture reviewed by renowned software architect Adam BienClearly defined specialist and technical modules with a high development maturity

Distinct separation between display and service layerFlexible user handling

Cutting-edge user experience, user interface

Cutting-edge performance

Outstanding Technology Platform

Web based interfaces (smartphones, B2B, connection to third-party systems)Compatible with all browsers as well as iOS and Android

Mobile platforms including native apps

Each stack can run weclapp software for up to 20,000 registrations

Easily scalable through additional stacks

Flexibly accessible thanks to stacks on different continents


Big Data storage Backup

Indexing

Database

App server

EachStack:

“Unlimited”scalability

Mail server

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What Makes Us Price Leader?

We are able to offer the most competitive pricing while staying profitable because of:

Low operating costs thanks to the use of open source software (no run-time fees)

Built for scalability –easily expandable

Low customer acquisition costs thanks to well established and successful online marketing


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weclapp: A Cutting-Edge, Fully-Fledged Cloud-Based Platformweclapp technical KPI:

688,000 lines of code6,400 classes

1,300 entities

Code Rules compliance according to Sonar 97.7%

Over 80 accumulated years of accumulated programming experience15 hours of software programming and development per dayInternational development and QA centersin Mumbai (India)

4.5 years of continuous development


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Tech Leader.Price Leader.Market Leader!

Unique selling proposition:Joy of useGenuinely cloud-based: consistent, callable, expandable, universal, low price

International:

Focus on merchandise management(not financial accounting!)

Multi-lingual, multi-currency, multi-location

Platform: Java EE kernel, many extensions, partly open source

Active community of developers, users andtechnology partnersDisruptive: increasing integration ofartificial intelligence algorithms

No inherent barriers to growthV.2.03.21 weclapp Corporate Presentation 30|

weclapp‘s Competitive Edge -Summary

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06Growth Strategy


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No Inherent Barriers to Growth


Growth Drivers R&D: Product Enhancement

Marketing Excellence

Internationalisation

Targeted Acquisition ofCompetitors

Extend Industry / Customer Reach

Research Focus on ArtificialIntelligence

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Promote and use the activity of our worldwide user community

Enhance automisation,integrate first AI algorithms

Developing around the globe,around the clock

Add new focus processes: HR, SCM

Continuous improvement of user experience,

efficiency

Designed and Poised for Excellence:Improving the Platform Every Day


(Growth Driver 1/6) No Inherent Barriers to Growth

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Marketing Excellence Paves the Way for Winning New Customers



Online lead generation will remain the most important channel – also as international door opener!

Leading edge online marketing/inbound marketing

Extensive keyword tracking

Daily content generation

Generating high visibility

Establish partner sales as additional channel!

High demand from IT-service providers for cutting-edge cloud-based system to replace obsolete on-premises ERP systems

Ongoing: qualify partners for customer onboarding, training, customisation if requested

Highly efficient online partner management

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Extend Industry and Customer Reach

Industries



Current FocusHigh share of small businesses (300 employees)

Businesses with national and international activities

Subsidiaries of multi-billion-dollar groups

Customers

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Gaining Momentum: Sights Set on Global Markets



Customer Map

Currently 20,000+ happy users all over the world

Internationalisation strategy:

create web visibility,

gain new customers by way of inbound access

establish and expand partner network

Bring fully-fledged language versions of ERP platform and web content to market

Next steps product languages:

ItalianSpanish

English

French

Product features and online-marketing for market entry in

Italy

SpainFrance

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A New Dimension of Enterprise Software



New head of research engaged (as of 1 September 2020) –key task: establish R&D core team for AI/ML

Build Artificial Intelligence Cluster in cooperation with WürzburgUniversity

Pave the way for accelerated algorithm development

High customer demand for tools providing competitive edge Next steps:

AI/ML algorithms and applications help to increase efficiency and profitability

SMB will not be able to develop those on their own for lack of competent staff and for lack of data. The same applies to the bulk of current competitors

weclapp as a cloud-based ERP platform has access to the „Big Data“ needed. weclapp as a determined company establishes the team and neural network technology it takes to enter the ERP 4.0 realm.

Getting ready for ERP 4.0 with Artificial Intelligence and Machine Learning

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Play an Active Role in Market Consolidation: Acquisition of Competitors and Customer Bases



Post-acquisition strategy:Criteria:

“Functional fit” as high as possible

Degree of standardization as high as possible (customization for each customer as low as possible)

Number of customers as high as possible

Number of employees as low as possible

Number of sales partners as high as possible

Migrate customers of target company onto weclapp platform(already now established practice for new weclapp customers, supported by the smooth and easy onboarding process)

Qualify suitable staff to work for weclapp

Phase out of former legacy product

M&A will speed up weclapp‘s growth course. Current target list of 70 ERP vendors in the ERP 2.0 and ERP 3.0 segments

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07weclappInvestment Case


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weclapp Now Advancing Along the Growth Phase


Costs

Revenue

Development lifecycle Market lifecycle

Research Product development Market Entry GROWTH PHASE Maturity Phase

Development costs

Phasing-OutRevenue

||V.2.03.21 weclapp Corporate Presentation 41|

weclapp Investment Case

Innovative, fast-growing, cloud-based SaaS enterprise on its way from technology and price leadership to market leadership

>3,100 satisfied business customers

NOPAT/sales approx. 20 %

M&A strategy for additional growth (rapid development of further market segments, internationalization)

USE OF PROCEEDS: M&A, ramp up of R&D staff, with focus on AI, international sales offensive

Sophisticated, operational, multi-award-winning ERP suite for SMBs, successfully on the market since the start of 2013

Organic revenue growth 7-year CAGR approx. 100 %2020/2021: +50 % each.

Consistently high margins and cash flows

Current investment option: EUR 7 million; pre-IPO financing of the future market leader in cloud-based ERP solutions for SMBs

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Summary

Join weclapp on its way to market leadership

No inherent barriers to organic growth

Pre-IPO investment will pay off exponentially as weclappaccelerates its growth course organically and with targeted acquisitions

The next German unicorn?

Exit scenarios: IPO, Trade Sale

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08The Team andthe Spirit


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Team


Cloud natives right from the start *

* photo taken prior toCOVID-19 outbreak

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Desirable Employer — Able to Ramp Up Capacity

Young, talented people continue to apply for jobs at weclapp

Corporate CultureStart-up-like, young, agile, ambitious, determined

Values We Treasure Most

Team-mindedAmbitious

Accountable

Reliable

Open-minded Effective

The weclapp Culture Code

We are a strong team We take responsibility for what we do

We want to grow and unleash our potential

We make sure our customers love us

We create a great working atmosphere


8 9 1222

28

49

66

90

150

2013 2014 2015 2016 2017 2018 2019 2020 (e) Mid-term

Number of employees (HC)

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Management Board


Ertan Özdil (CEO)

Expertise and Leadership

Age: 46

Started programming at the age of 9

Brought first open source CRM to market at the age of 17

1996: Founded his first software company in Germany

2001: Joined IBM

2005: Joined 3U where he assumed responsibility for corporate software development

2008: Established weclapp, with the aim of developing a cutting-edge, disruptive ERP system together with 3U

Michael Schmidt (CFO)

Spirit and Determination

Age: 54

Studied Communications Engineering at Giessen Technical University

1997: Member of the team establishing 3U TELECOM AG in the role of CTO

1999: IPO of 3U TELECOM AG

2002: Appointed Member of the Management Board2007: Appointed CEO of 3U HOLDING AG

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Supervisory Board


Ralph Thoenes

(Chairman)

Age: 58

Apprenticeship as a banker at Dresdner BankLegal studies at Bonn University

Since 1995: Lawyer with Düsseldorf-based law firms

Since 2010: Co-Founder and Partner of Altenburger Rechtsanwältelaw firmChairman of the Supervisory Board of 3U HOLDING AG

Christoph Hellrung

(Director)

Age: 49

MBA, Duisburg University

Tax Consultant

2006: ENRO AG head of controlling, tax, and investor relations

2008: Member of ENRO AG’s Management Board

2009: Head of Finance, HR and Administration with LambdaNet Communications AG

2010: CFO of LambdaNet

Since 2010: CFO at 3U HOLDING AG

Andreas Odenbreit

(Director)

Age: 44

Master of Law, Bonn University

Legal departments of Volkswagen AG and Deutsche Telekom AG

2005: Legal Counsel with 3U HOLDING AG

Since 2011: Member of the Management Board of 3U HOLDING AG, in charge of Legal Affairs, Administration and HR

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Vice Presidents


Nadeem Ahmad

SVP Marketing and Sales

Age: 40

2002: Product Management at Deutsche Telekom AG for online products

2004: Marketing and Business Development at Dell Computers

2006: Senior Product Manager at 3U HOLDING AG for the telecommunications business line

2010: Director Strategy and Products at 3U HOLDING AG

Since 2011: Director of Sales and Marketing at weclapp

Dr. Jaroslav Bosek

SVP Software Development

Age: 48

2002: Software Developer at COR

2003: Software Developer at IT Workbench

2005: Senior Software Developer at 3U TELECOM2007: Consultant at IT Workbench where he developed a

JEE-based framework for portfolio management systems, among other products

Since 2010: Director of Software Development at weclapp

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Data Security and Research on Neural Networks (AI and ML)


Stefan Schmidt

Chief Information & Data Security Officer

Age: 49

2004: Director Risk, Project Management and Quality at 3U TELECOM GmbH

2009-2016: Member of the Supervisory Board at 3U ENERGY AG

2010: Partner and CEO of RISIMA Consulting GmbH

2016: Senior Manager Cyber Security Services at RUAG Defence Deutschland GmbH

Since 2020: Chief Information & Data Security Officer at weclapp

Johannes Mehrer, PhD

Head of Research and Development

Age: 32

2009-2013: BA Psychology and Neuroscience at Hamburg University and Temple University

2013-2015: Master in Clinical and Cognitive Neuroscience at Maastricht University

2015-2020: PhD on Deep Neural Networks as Models of the Human Visual Cortex at University of Cambridge, MRC Cognition and Brain Sciences Unit

Since 2020: Director R&D at weclapp

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Ertan Özdil,CEO

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Thank You!

Ertan Özdil (CEO)

+49 (0)69 3 33 90 – 18 01

[email protected]

www.linkedin.com/in/ertan-özdil/

www.weclapp.se


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Disclaimer

This presentation does not constitute an offer to sell or a solicitation of an offer to purchase any securities of weclapp SE in the United States of America (“USA”) or in any other jurisdiction in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation. Users of this presentation are requested to inform themselves about and to observe any such restrictions. The information set forth in this presentation must not be distributed in the USA, to “U.S. persons” as defined under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or to publications with a general circulation in the USA. Each violation of such limitations may constitute a violation of applicable securities laws of the USA.

The shares of weclapp SE (the “Shares”) have not been registered under the Securities Act and may not be offered or sold in the USA unless registered under the Securities Act or pursuant to an exemption from such registration. There will be no public offering of the Shares in the USA and the Shares will not be registered under the Securities Act.

This document contains forward-looking statements and statements of future expectations that reflect management's current views and assumptions with respect to future events. Such statements are subject to known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied and that are beyond weclapp SE's ability to control or estimate precisely. weclapp SE does not assume any obligation and does not intend to update any information contained herein.


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Contact

Frauenbergstr. 31–3335039 Marburg

Friedrich-Ebert-Str. 2897318 Kitzingen

Neue Mainzer Str. 66–6860311 Frankfurt am Main

+49 69 333 90 1800

Communication OfficerDr. Stephanie Nickel+49 177 [email protected]


Tech Leader. Price Leader. Market Leader! · 2020. 10. 22. · Contents 01 weclapp at a Glance 02...

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Transcript of Tech Leader. Price Leader. Market Leader! · 2020. 10. 22. · Contents 01 weclapp at a Glance 02...