EMRO (058970) Corporate Day presentation summary

Business overview

• Leading provider of AI-based enterprise supply chain management software with a strong presence in Korea and expanding globally.

• Offers comprehensive SRM solutions covering procurement, supplier management, cost control, and analytics, with both on-premise and cloud SaaS models.

• Solutions drive digital transformation, transparency, and efficiency in procurement, reducing costs and standardizing processes.

• Extensive client base across electronics, automotive, chemicals, construction, and public sectors, including all top 10 Korean conglomerates.

• Demonstrates strong technical expertise, AI integration, and recurring revenue through software licensing and cloud services.

Financial performance

• Achieved record-high H1 2024 revenue of ₩33.8 billion, driven by increased demand for digital procurement solutions.

• Technology-based revenue reached ₩11.8 billion in H1 2024, accounting for 34.9% of total sales, with a target to exceed 50%.

• EBITDA for H1 2024 was ₩4.5 billion, reflecting ongoing investments in global SaaS platform development and workforce expansion.

• Order backlog surged to ₩94.7 billion by July 2024, providing a solid foundation for future revenue growth.

• Financial statements show robust asset growth and continued profitability, despite one-off losses related to derivative valuations.

Growth strategy and investment highlights

• Focused on becoming a global SRM SaaS platform leader, leveraging new product launches and expanding into overseas markets.

• Launched SMARTsuite 10.0 with enhanced AI features and user experience, targeting global standardization.

• Secured a major contract with Samsung Electronics for next-generation procurement systems, serving as a key global reference.

• All top 10 Korean conglomerates are clients, with market penetration of 18–20% and significant untapped domestic potential.

• Global SCM market is 50–60 times larger than Korea’s, with the US as the primary target; partnerships with Onine Solutions and Samsung SDS support global expansion.