Adjustment of policy for investor announcements

Summary

In order to create more transparency, clarity and coherence in our communication to the market, the announcements will in future be made in the following way:

Continued publication of quarterly reports following the financial year.

Company announcements by:

• agreement with new customer on the primary SaaS business areas, which in future are: MARS, MARC, REVIEW, KØS (equalization and forecasting tools)
• agreement on the extension of delivery within one of the products to an already existing customer, if the annual turnover from that is expected to exceed DKK 100,000
• agreement on delivery of a data analysis task, where the expected fee is greater than DKK 250,000
• agreement on delivery to a customer in a new customer group, e.g. private companies, where the expected fee is greater than DKK 250,000 

Detailed description: 

In order to increase transparency in the communication of the company's new contracts, the management has decided to change our policy for investor announcements.

We have previously issued monthly updates, where other sales not already announced have been summarized. These announcements cease and instead we refer to the quarterly reports, which contain a more coherent description of turnover, earnings, comparison with corresponding periods for last year, etc.

Between the quarterly reports, it will be announced when there are new contracts within primary SaaS business areas. In this connection, we introduce the business area: KØS - Municipal Economy Management. In recent years, we have provided consulting assistance in financial management to several of the country's municipalities. In this connection, Dataprocess has developed an AI-supported SaaS solution, which in previous quarterly reports has been referred to as Services on Demand. Now, however, the business area has reached an extent where it should be defined as a separate business area in our announcements.

KØS currently has two SaaS modules:

Forecasting tool: Choice of State guarantee or Self-budgeting

Forecasting tool: Development in the funding basis

The modules work together in a common platform, so the municipalities have advantages by purchasing more than one module.  

Dataproces today has a total of 40 municipalities (including 3 Top 10 municipalities and 14 Larger municipalities) that use at least one of the two forecasting tools, and therefore has the potential for sales to several municipalities as well as sales of several (including upcoming) modules to existing customers.

In the future, investor news will be issued when an agreement is entered into with a municipality to which these KØS SaaS solutions have not previously been sold. Ongoing extensions with additional modules to an existing municipality will not be announced, but will be summarized in the quarterly reports. 

Our SaaS product, MARS, contains a number of modules within Intermunicipal reimbursements, State reimbursements, VAT and Moving overview - currently 16 modules in total, and more will be added continuously. Dataproces currently delivers one or more modules to a total of 36 municipalities (including 2 Top 10 municipalities and 15 Larger municipalities). There is still great potential for sales to several municipalities as well as sales of several (including upcoming) modules to existing customers.

For the SaaS product, MARS, investor news will continue to be issued when agreements are entered into with a municipality to which MARS SaaS solutions have not previously been sold, but in the future investor news will also be issued when agreements are entered into for the delivery of additional modules to an existing customer if this or these new modules together are expected to add new annual revenue of more than DKK 100,000.

The SaaS product, MARC, consists of several modules, of which MARC Flexløn is by far the largest, with a total of 59 municipalities as users (including 5 Top 10 municipalities and 24 Larger municipalities). In addition, we have the modules Voting, Annual Statement and Performance Control, where we have particularly experienced a large increase in the number of customers on our Voting solution, which is now used by 26 municipalities.

Despite our large market share compared to MARC Flexløn, there are still great opportunities for sales of both this module and the other (including future) modules, which is why we expect continued progress within our MARC SaaS solutions.

For reasons of continuity in our announcements for the SaaS product, MARC Fleksløn, investor news will continue to be issued when agreements are concluded with a municipality to which MARC Fleksløn has not previously been sold, but in the future investor news will also be issued when agreements are entered into agreements for the delivery of additional modules to an existing customer, if this or these new modules together are expected to add new annual revenue of more than DKK 100,000. Sales of MARC solutions other than MARC Flexløn to municipalities that do not use MARC Flexløn will also be announced separately, even if the annual turnover for the individual agreement does not necessarily amount to more than DKK 100,000.

Our SaaS product, REVIEW, which was previously called Min Sag, like our other products, has several modules and options that are based on the basic module "Reading". In addition, modules can be purchased for processing access to documents within Cases, Subject cases or Personnel cases, as well as further automation and connections. 

REVIEW is currently sold to 10 of the country's municipalities (including 1 Top 10 municipality and 7 Larger municipalities), which is why there is great potential to increase revenue within this product as well. Partly by selling to additional municipalities or administrations and partly by selling additional modules, automations and connections.

For the SaaS product, REVIEW, investor news will continue to be issued when agreements are entered into with a municipality to which the REVIEW SaaS solution has not previously been sold, but in the future investor news will also be issued when agreements are entered into for the delivery of additional modules to an existing customer if this or these new modules together are expected to add new annual revenue of more than DKK 100,000.

The company's Dataanalysis is the last of our current large business areas. Dataanalysis contracts are characterized by the fact that Dataproces carries out a big dataanalysis with the customer, with the aim of identifying conditions for which the individual municipality can obtain either inter-municipal or state reimbursement. This results in a gain for the municipality, and Dataproces is remunerated with a success fee, which is dependent on how large the refunds are obtained. Therefore, Dataproces' value of the contracts is only finally known when the refunds have been approved by the customer. In connection with entering into a contract for the performance of a dataanalysis, an estimation of Dataproces' value of the agreement is made.

Dataproces will in future announce all agreements on dataanalysis with a total estimated value higher than DKK 250,000. Dataproces is currently working on the delivery of 4 dataanalysis, where we expect an estimated higher value than DKK 250,000 per analysis. 

Last but not least, we will issue investor news if we enter into agreements within new areas or customer groups where we expect a turnover of more than DKK 250,000 per appointment.

CEO Michael Binderup states:

"I believe that openness is the best way to a good investor relationship. We want to ensure that the investor has an ongoing sense of the company's progress. The best expression of this is achieved through our quarterly reports, where investors have the opportunity to compare this year's performance with previous years' and see the effect of the entire company's operations as a whole. But for our strategic product areas, MARC, MARS, REVIEW, KØS and Dataanalyses, we would also like to provide ongoing reports on developments, so that the investor has an opportunity to relate to developments between the quarterly reports."

Generally about the announcements that will be announced in the future as investor news:

As the SaaS platforms MARS, MARC, REVIEW and KØS are central to Dataproces' business strategy, it is announced every time a contract is entered into with a municipality that does not already use the relevant SaaS solution. In addition, announcements are made when a major contract is entered into to extend our delivery to an existing customer. The SaaS contracts are announced in accordance with the company's strategic focus and do not change the announced guidance.

Dataproces announces all agreements on Dataanalysis with a total estimated value higher than DKK 250,000.  

Dataprocess distinguishes in the announcement of SaaS contracts between 3 municipality size categories; the 50 smallest municipalities are called municipalities, the middle 38 are called larger municipalities and the 10 largest are called the Top 10 municipalities.