Zutec Announces New Organization

Dublin, Ireland, 9 April 2020 – Zutec Holding AB (publ) (“Zutec”) today announced a new organization.

Previously Zutec has had an organization focused on geographic segments. In order for Zutec to be closer to the market and to pool resources and skills, Zutec will going forwards be focused on the type of customers and size of construction projects it seeks to get involved in. As such, Zutec will going forwards operate its business according to two business areas, Enterprise and Infrastructure Solutions:

• Enterprise: Enterprise business area includes commercial and residential development projects and any similar construction project that has the need for a cloud-based software management tool. Enterprise construction projects range from 9 up to 24 months. Enterprise projects have a wide range of users per project ranging from 10 to 400 with most projects having 30 to 75 users. We sell our software products based on either per user pricing or unlimited users combined with implementation and configuration related services at the start of the project. On some projects we provided ongoing dedicated customer support when the customer requests that which could include working with both Office and Field teams onsite for training and efficiency purposes.
• Infrastructure Solutions: Infrastructure Solutions includes infrastructure projects and any large building projects that involves a meaningful element of bespoke configuration and in some instances bespoke development as well as onsite and offsite support. We have defined Infrastructure Solutions as large construction projects with a greater than €250 million up and to multi-billion-euro in construction value.

Zutec’s contracts for Infrastructure Solutions projects normally have a duration from 24 months up to 5 years, sometimes longer as projects can get extended. The number of users of our software on one of these projects can be in excess of 1,500 users with data in excess of 15TB saved on our cloud at the end of the project. Zutec has historically had single contracts and keep on targeting single contracts that can be generating in excess of €0.5 million in average annual revenues under a multi-year contract with a meaningful portion of the contract value often coming upfront positively impacting short-term revenues and earnings. Infrastructure projects are normally complex and we provide continuous both off- and onsite support for either portions or the entirety of the construction project which are charged based on time allocated. In addition, many Infrastructure Solutions projects also comes with bespoke development requires which we scope and work with customers on to support their specific needs. Our pricing is generally based on the number of users and mix of products as well as the annual construction volume contracted to run on our platform. Infrastructure Solutions contracts form part of the heritage of Zutec and are a core part of our strategy and we have a number of targeted projects in the pipeline.

According with above, we have structured our organization according to our client facing activities under Market and all activities supporting our Market function under Support Functions. We believe we will be able to service existing and new customers better with this new structure.

For more information, please contact:

Gustave Geisendorf, CEO at Zutec
gustave.geisendorf@zutec.com or +353 1 201 3565

About Zutec

Zutec is a niche provider of cloud-based construction management software.

Zutec Holding AB (publ) is listed on Nasdaq First North Growth Market and Mangold Fondkommission AB is the Company’s acting Certified Adviser (Tel. + 46 8 5030 1550, CA@mangold.se, www.mangold.se).