Transfluent's CEO review 27.6.2019 - AGM.

1. CEO’s Review
A N N U A L G E N E R A L M E E T I N G
2 7 J U N E 2 0 1 9

2. Agenda
Who I am
Vision
Industry
Financials
Customers
Marketing
Technology
Employees
Acquisition

3. Who I am
• Born 1976 in Sipoo, BBA
• Working history from 1998…
DW and Sales - Backoffice support
eLearning - Developer
eLearning and business process consulting
– Co-founder
Digital recommendation marketing – Co-founder
Digital Customer Marketing – Co-founder
Marketing and communication
– Marketing Strategy Director
Digital Transformation – Partner/Country Lead
Translation partner - CEO
• Important for me..
• Sport (basketball, tennis, gym, slalom)
• Classic cars
• Family (Ansuliina 8 years, Aaron 12 years, Kaisa X years)

4. Employees first, customers second
- VINEET NAYAR

5. Employees first, customers second
- Vineet Nayar
Talent wins games.
But teamwork and intelligence wins
championships.
MICHAEL JORDAN

6. Transfluent is your 24/7
human-powered translation partner

7. Vision 2020
Transfluent is a 24/7 localisation partner that offers
the most advanced tools and the most active
customer contacts on the market to translators,
and
the best automated localisation experience to
customers.

8. Strategy & implementation

9. Vision 2021–2022
Transfluent is fully automated XXX…

10. Industry
• LSP market size is $53B globally
• LSP market size in Finland €170M
• 1,300 companies in Finland
• The major players in Finland are
• AAC Global €16M (108 $ Globally)
• Semantix €15M ($113 Globally)
• Lingsoft €14M
• Average taxable profit 7–9%, mature survey
respondents put EBITDA within 11–15%
Source: Konstantin Dranch 2017 & Nimdzi 2019

11. Industry
Source: Konstantin Dranch 2017 & Nimdzi 2019

12. Competitors
Global focus
Finland focus
Machine
translation
Human
translation Nordic focus

13. Competitors
Global focus
Finland focus
Machine
translation
Human
translation Nordic focus
Transfluent 2020
Transfluent 2022

14. Financials 2018: Inc+Oy
2018 2017
Inc + Oy Oy Inc + Oy Oy
Revenue 2.12M€ 1.38M€ 1.61M€ 0.98M€
Operational profit -0,29M€ -0.24M€ -0.66M€ -0.37M€
Net profit (EBT) -0,36M€ -2.08M€ -0,83M€ -0.47M€

15. Financials 2018 vs 2019

16. Financials 2018 vs 2019

17. Customers
Focus on serving the existing customers (Tier1 & Tier2 customers) and
growing the value of unique orders
TOP600 companies in Finland The goal is to get 100 active customer organisations
• 350 discussions done via phone
• 54 meetings done (15%)
• Closed Won 20 new customer organisations (6% / 37%)
• Measurable and integrated marketing and sales process

18. Marketing
• New CMO/COO starting 1.8.2019
 Focus on Customer and Translator Experience and marketing automation
• Co-operation with Tulos Helsinki starting 1.8.2019
 SEO, SEM, SoMe, Earned Media

19. Technology
• CAT tool in use Q3/2019
• Totally automated process for payments to translators
• 60% automated invoicing prosess
• New pricing methodology (AI in use)
• TOP50 translators VIP club (AI in use)
 Totally automated engine from marketing to sales to pricing to order to translate
to feedback to re-order

20. Emloyees
• Oy: 10 full time and 1 part-time (2018: 14 full time and 1 part-time)
• Inc: 1 full time (2018: 3 full time, including Jani Penttinen)
• 1 January–26 June 2019 Annual
Turnover rate is 9.5% (1 person has left)
• New CMO/COO starting on 1 August 2019
• The strategy was completed together with the employees!

21. Contacting
- Contactingselected companies and mapping
their current status
- Agree the meeting
- Try to get in touch with the purchase price as
soon as possible
M&A process
Market Evaluation +
validation
Which companies we should focus
Light DD
- Ensure the content of info request
* loans
* sales pipeline
Info request
- Currentstatus and future plans
Acquisition
- Earnout
- SHA/working agreement
After 2 years
- Evaluate the results
First 100 day plan
- Implement the First 100 day plan
Day zero
What happens day zero?
- Existingcustomers
- Employees
- Owners
- Office
?

22. Contacting
- Contactingselected companies and mapping
their current status
- Agree the meeting
- Try to get in touch with the purchase price as
soon as possible
M&A process
Market Evaluation +
validation
Which companies we should focus
Light DD
- Ensure the content of info request
* loans
* sales pipeline
Acquisition
- Earnout
- SHA/working agreement
After 2 years
- Evaluate the results
First 100 day plan
- Implement the First 100 day plan
Day zero
What happens day zero?
- Existingcustomers
- Employees
- Owners
- Office
?

23. Summary: Top themes 2019
• CAT-tool development  Better quality in daily operations
• Re-negotiate the compensation agreements with translators  Better profit
• Marketing and Sales activation  Positive Cash-flow

24. Thank You!
Mikko Räty
CEO
Contact: mikko.raty@transfluent.com | +358 50 330 8466
https://www.linkedin.com/in/mikkoraty/
@mikkoraty
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All rights reserved.