REPORT ON

OPERATIONS

Licenses:

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GROWTH IN 2020

RISK AND OPPORTUNITIES With our investments, we are taking a calculated risk. We consider these to be low-risk investments since we have close partnerships with the communities we work with and deep knowledge of the needs. At the same time, we have a clear view of the potential value of these investments with the market analysis work we performed during the year.

WE SERVE CUSTOMERS AROUND THE GLOBE ACROSS NORTH AMERICA, EUROPE, JAPAN, CHINA AND INDIA.

We serve customers around the globe across North America, Europe, Japan, China and India. Our subscription model ensures users always have access to the most current software version. Subscriptions can be terminated at any time, which means the cost can be compared continually to the benefits the software delivers. We estimate license subscription revenues will continue to grow in 2021 but at a slower pace due to a reduction in investment in new Extensions during 2020.

Our largest risk and greatest opportunity are technological evolution and digitalization. Configura currently invests more than 15 percent of sales in R&D. We must continually invest in technology, offering, positioning and marketing to be the best in our niche.

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OF SALES INVESTED IN R&D

Our software is proof of our commitment to constant innovation and improvement. We are aligning even more with the customer’s needs and our efforts are received very positively. We are also increasing investments in research and pushing boundaries of technology to solve new challenges in our target industries.

Configura has tremendous opportunities on the horizon. While there will be challenges, like recruiting in a tight job market and ongoing development of our partner network, we will continue on a strong path forward. We strive to be a first-class employer with a welcoming and engaging company culture, competitive compensation and benefits, and offices that inspire employees to do their best work. Our exciting technology, global presence and collaboration among our offices make us an attractive employer and results in low turnover.

REGIONS

The Americas: 70% Europe: 20% APAC: 10%

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INDUSTRIES

Commercial Interiors: 60% Material Handling: 25% Kitchen & Bath: 15%

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WE BELIEVE CONFIGURA HAS TREMENDOUS OPPORTUNITIES ON THE HORIZON.

CUSTOMER

SUCCESS

One of our guiding principles at Configura is working collaboratively and building long-term relationships with our customers. We believe our collaborative approach is what sets us apart, and now, thanks to our strong growth, we are investing even more in these relationships and finding new ways to support customer success.

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In recent months, Configura implemented a significant reorganization, which included merging our production team with our customer experience team to form our newly branded customer success team.

The customer success team consist of five pillars: training, support, production, user community & events and service & development partners.

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SERVICE & DEVELOPMENT PARTNERS

What is customer success? Customer success is a collaborative effort that focuses on the partner and customer lifecycles. It’s also focused on providing the best service to our customers while building strong connections internally with our sales teams on one side and our product team on the other side.

Our top priority is providing an experience that is consistent, proactive and drives customer success throughout the entire journey. We are focused on aligning our internal functions so we can continue building and supporting successful solutions for our customers. Together, we make both our customers and Configura stronger.

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PEOPLE COMPLETED TRAINING

Customer success during a global pandemic Last year was a unique year for all of us and we worked hard to get through the hurdles together. Our talented training team facilitated nearly all trainings online with 7,053 users completing our education programs. Our 13th annual CET Experience had record-breaking attendance with 998 participants who joined us for our first fully virtual CET Experience in North America and 171 participants who attended our China conference. Both conferences received outstanding reviews from our community and our experience team demonstrated once again why they are second to none.

Our production team spent roughly 90,000 hours with 84 different manufacturers to build on their success. To support manufacturers and their users, our support team added a fourth team focused on quality assurance. We also introduced Escalated Core Support and an option for our customers who need help with core related functionality.

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CET EXPERIENCE ATTENDEES

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PRODUCTION HOURS

OUR TOP PRIORITY IS PROVIDING AN EXPERIENCE THAT IS CONSISTENT, PROACTIVE AND DRIVES CUSTOMER SUCCESS THROUGHOUT THE ENTIRE JOURNEY.

PRODUCT

In 2020, our product organization expanded from an R&D operation to a product function. We added pricing and packaging to our responsibilities and prepared our function for growth by building a strong leadership team, strengthening our project and product management and recruiting talented new Configurans.

WE HAVE A RENEWED FOCUS ON SOLVING THE WHOLE PROCESS, LINKING THE PIECES TOGETHER AND SUPPORTING OUR CUSTOMERS WITH SOLUTIONS THROUGH THE ENTIRE JOURNEY.

Through this transformation, we focused on recruiting senior talent to our web team as we see our cloud solutions at the center of our future development. We also started building a user interface and user experience team to enhance the touch and feel of products moving forward.

Scalability We want to make it easier and faster to create and consume content. With 30 years of collective industry knowledge, we believe the best way is to develop industry frameworks for our CET products. The goal is to simplify the creation of smart content by moving intelligence from customized Extensions to industry frameworks and tie it all together with data. This will allow Configura’s customers and partners to get to market faster and with less costs than before.

We also see the potential for major savings for our customers with one central location to create and maintain data for sales and design configuration software. With this in mind, we launched development of a new cloud-based Content Lifecycle Management (CLM) system. The goal is to import different formats of data, update data with live links to other systems and then enrich that directly on the cloud platform. The data can then be used in all Configura’s products, as well as in other suppliers’ products.

Though we are still at an early stage in development of a full CLM system, we already see customers using some of the functionality. The same data that is used in CET can also be used in Stage, our web-based single product configurator. When data is published, it is automatically updated in both Stage and CET. This is our first step in the direction to support a full omnichannel approach with one data source. The next step in this process is Design Studio, which is currently in a pre-study phase. Design Studio is a web-based product for end consumers who want to do space planning and design.

Industry Excellence and User Experience CET Designer is now split into three CET products to target each of the industries we serve: commercial interiors, kitchen and bath and material handling. The decision to offer three products allows for an improved user experience as features and functions can be customized to one user group rather than using a generic interface to fit all. The updated industry frameworks are also part of the effort to strengthen our value in each industry.

Platform The foundation of our products is a platform that supports the flow of information through the entire system. In 2020, we expanded efforts to continue building our platform. On one level, data should flow from the manufacturer’s systems to be enriched in our CLM system and then consumed across Configura’s products or other design and configuration software. On the next level, we need to support the flow of information and drawings from the consumer all the way to installation. With our platform, information flows from consumers to the salesperson, from the salesperson to the professional designer, from the designer to the manufacturer, and finally through production, delivery and installation. Configura has a renewed focus on solving the whole process, linking the pieces together and supporting our customers with solutions through the entire journey.

MARKETING

& SALES

As part of the reorganization of our company, we invested in our sales team by transitioning from regional to global sales teams split between our three target industries: commercial interiors, kitchen and bath, and material handling.

AS THE WORLD CONTINUES TO NAVIGATE THE “NEW NORMAL” IN 2021, WE WILL CONTINUE OUR EFFORTS TO POSITION CONFIGURA AS THE GLOBAL INDUSTRY LEADER FOR SPACE PLANNING IN THE COMMERCIAL INTERIORS, MATERIAL HANDLING AND KITCHEN AND BATH INDUSTRIES.

We increased our sales force in numbers and industry knowledge, bringing on board individuals with both regional and industry expertise. We also brought together our sales team and marketing team under the same company function to streamline efforts.

One major focus in 2020 for the industry sales teams was to perform a thorough market analysis to truly understand the pain points of the industries we serve and how Configura can generate more value within these. As part of this, we also defined our perfect customer and identified companies that benefit the most from using our solutions.

The global pandemic pushed us to find creative ways to move forward with our sales and marketing efforts, greatly due to how our target industries were affected. We saw that the industries we serve were hit very differently by the pandemic. The commercial interiors industry saw a decline in sales as people moved to home offices while the kitchen and bath industry saw an increase because people have been spending more time at home and investing in renovations. Material handling saw a rapid increase in demand which resulted in some companies having to decrease lead time by as much as 50 percent.

WE PERFORMED A THOROUGH MARKET ANALYSIS TO TRULY UNDERSTAND THE PAIN POINTS OF THE INDUSTRIES WE SERVE.

Public relations, advertising and social media We pivoted our public relations, advertising and social media strategies to adapt to the new media landscape. As events and tradeshows went virtual, we continued efforts to build awareness of Configura, our products and events and to connect with leading trade publications virtually.

The year kicked off with announcing our new CEO Stefan Persson, which generated media coverage globally across Sweden and the United States. In June, we also welcomed our newest board member Thomas Säld. Our public relations efforts included sharing news about new manufacturers joining the CET platform, Extension releases, Configura’s 30-year anniversary, the virtual CET Experience, “User of the Month” features and more. In 2020, we garnered 100 stories and media mentions across 27 publications including Business of Furniture, officeinsight, Contract Furnishings News, Material Handling & Logistics, DC Velocity and many others.

We continued to build brand awareness and grow our CET community using social media to connect and engage with existing and prospective users and employees in real time. In 2020, we grew our follower base across our main social media platforms including Facebook, Twitter, LinkedIn and Instagram by 31%. Most notably, our Configura LinkedIn page experienced significant growth with a 60% increase of followers. We continued to find creative ways to engage our audience through seven “Configura LIVE” sessions showcasing CET tips and tricks, CET Experience sneak previews and a Configura 30-year anniversary social media campaign highlighting 30 fun facts about Configura and CET.

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STORIES AND MEDIA MENTIONS ABOUT CONFIGURA

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GROWTH OF FOLLOWERS ON CONFIGURA'S LINKEDIN PAGE

Exhibitions and conferences While the events and tradeshows pivoted quickly to virtual formats, Configura had the opportunity to participate in Stockholm Furniture Fair in Sweden at the beginning of the year, China International Furniture Fair (CIFF) in July and CeMAT, Asia’s international tradeshow for the material handling industry, in November. Both Asia-based tradeshows took place in person and our Shenzhen team was able to safely connect with manufacturers in both the commercial interiors and material handling industries.

As the world continues to navigate the “new normal” in 2021, we will continue our efforts to position Configura as the global industry leader for space planning in the commercial interiors, material handling and kitchen and bath industries. We look forward to continuing to connect with new faces and welcome more manufacturers and users to our growing CET community in the coming year.

OUR PERFECT

CUSTOMER

Produces a high volume of quotes and revisions

Has complex products and solutions

Embraces innovation in design

Aims to be a sustainable business

Requires space-planning to reach excellent customer service

Is collaborative and establishes long-term partnerships

Has ambition to differentiate its offering and grow its business

Needs to align multiple sales channels