Movinn H1 2022 - Interim Report: 32% topline growth, profitable growth and improved fundamental metrics.

We are executing on our international launches and the existing Danish business are growing and displaying profitable growth. Added investments across all investment items are creating more depreciations then forecasted. 

Company Announcement nr. 18 - 2022
31 August 2022 09.00 CET. 
This company announcement contains inside information. 

Copenhagen, Denmark - The Interim Report covers results from the first half (H1) of the year (1 January - 30 June 2022), as approved by Executive Management and the Board of Directors. 

In H1 Movinn has realized revenue of 34 mDKK - up from 25.85 mDKK in the same period last year - corresponding to a 32% revenue increase. Growth is driven by stable demand and the ongoing growth in our unit portfolio.

As we have now launched in Sweden, we will be reporting on additional financial information on international markets going forward. The financial information concerning the existing danish operations will be reported seperately and consolidated figures containing information on international markets will be reported as consolidated figures. We have also isolated the numbers for Q2 to offer additional transparency to the market. So in general we are providing an added stream of information.

Realized EBITDA from existing danish operations was 4.33 mDKK corresponding to an EBITDA-margin of 12.7%. Realized EBIT was 1.56 mDKK corresponding to a 4.6% EBIT-margin. Annualized Return On Invested Capital (ROIC) was 11.1% for the existing danish operations. The same numbers for the consolidated group was 11.8% (EBITDA), 3.7% (EBIT) and 8.7% (ROIC). The lesser figueres is due to start up cost in the swedish which has been taking in at a loss on the P/L. 

In Q2, we performed better in Q1. This was expected due to seasonality patterns. Q2 also also some steep unit growth. In H1 we have already added 50 new units (60-65 being the guided annual total) and 33 of those was put into operations in Q2. As earlier communicated, growth will tear on our bottom line metrics, but we are trying to manage a good balance between growth and bottom line performance. That being said, in Q2 we realized an EBITDA margin of 13.9% an EBIT-margin of 5.8% and an ROIC of 14.6%. 
The indicators - and improved fundamental metrics - alongside high double-digit revenue growth is satisfactory. 

The Executive Management is executing on the international expansion plan - as well as securing growth at home. The domestic pipeline is secured with more units than expected and we have reached critical mass in our first international expansion in Malmö.  

Financial highlights in H1 2022: 

• Revenue increased by 32% to 34 mDKK (25.85 mDKK) 
• EBITDA margin from danish operations of 12.7% (9.1%)
• EBITDA margin from consolidated operations of 11.8% (9.1%)
• EBIT margin of 4.6% (1.2%)
• Return On Invested Capital (ROIC) of 11.1% (4.0%)
• Maintaining previous guidance for the full year on revenue and EBITDA.
• Due to increased deprecations, we are adjusting EBIT guidance downwards.  

Business highlights in H1 2022: 

• Net increase in new units in Denmark was 50, taking our total unit portfolio up to 348 at the end of the period.  
• Counting units in Sweden our total unit increase in H1 has been 83 units. This is a change of 29% of the total portfolio. 
• The total unit number at the end of the year is revised upwards and expected to be approx. 375-385 units. 
• Secondary product, Movinn Co-Living, is growing in parallel and faster than the core business. 
• We have secured 115% of the domestic unit growth / pipeline for 2022 so far.
• We have done a full launch in Malmö (Sweden) and the product has been well recieved by the Clients. 

Patrick Blok, Movinn CEO states: 
"The existing danish business proves to be a strong foundation on which we can build our international subsidiaries to pursue new markets. It alllows us to preserve our cash and deploy it more wisely and without feeling any pressure to chase after break-even points. Having done a succesfull international launch in Sweden is pretty big for us, actually, as it shows the market that we can cultivate international networks, source units and be attractive to the international clients. This is the basic blueprint for future markets - and the blueprint to create a european-wide business over the next years. We feel comfortable that we will succeed in doing so. As always, growth is tearing a on our bottom line metrics and we continue to monitor the current macro-economic climate carefully, as higher-than-normal inflation rates and energy price hikes adds to our variable costs and might have negative macro-economic impact in the mid- to long term".   

Disclosure regulation

The attached Q1 Interim Report contains forward looking guidance. Such guidance are subject to risk and uncertainties as different factors, some of which are beyond the control of Movinn, may cause the actual development and results to differ from forward looking expectations. Interim Report has not been subject to audit or review.