Proact It Group Ab · OMXSTO:PACT
Proact It Group Ab — Q1 2025 Earnings Presentation
20 slides from Proact It Group Ab's earnings presentation, May 6, 2025
Slide 1: Q1 Interim report January – March 2025
Q1 Interim report January – March 2025 A reliable, present and independent European partner that combines deep technical expertise with local understanding.
Slide 2: Agenda
Agenda Proact introduction Proact’s market Quarterly highlights Financial results Magnus Lönn Noora Jayasekara President & CEO CFO Summary Proact 2025 Q1 Interim Report 2
Slide 3: Proact introduction
Proact introduction Proact is a leading IT expert helping customers secure business critical data via world-class hybrid cloud solutions Proact introduction Proact in brief Geographical footprint Revenue and EBITA development • Founded in 1994, Proact has secured business critical data & pushed (SEK
Slide 4: Proact is present in Northern Europe
Proact introduction Proact is present in Northern Europe distributed across four Business Units; Hybrid cloud services through our four main delivery HUBs Proact geographical presence and business units Nordic & Baltics UK • c. SEK 2,650m revenue • c. SEK 682m revenue • 323 employees • 252 employees
Slide 5: We offer best-in-class services
Proact introduction We offer best-in-class services; Our broad offering enable us to support our customers wherever they are in their cloud journey Proact offering 8% 22% Revenue streams 1 57% 13% Systems Support services Managed Cloud Services Consulting services Independent provider and value- Pre
Slide 6: Proact’s market
Proact’s market Proact is well-positioned in an attractive growing market, with trends such as Cybersecurity and AI driving the demand for data and IT solutions Market trends and development Strong drivers and favourable trends Digital transformation, Sustainability and Increased demand for Informat
Slide 7: Deep-dive: AI – key technology reshaping IT infrastructure
Proact’s market Deep-dive: AI – key technology reshaping IT infrastructure Trends and market development • Artificial intelligence has quickly established itself as a key technology with the potential to transform entire industries. • There are several clear signs pointing to a The solution strong u
Slide 8: We provide mission-critical services to customers across all industries
Proact introduction We provide mission-critical services to customers across all industry verticals Proact offering PROFESSIONAL SERVICES TECHNOLOGY PORTFOLIO DELIVERY MODELS DATA BACKUP & SECURITY INCIDENT PROTECTION RECOVERY OPERATIONS RESPONSE CYBERSECURITY & RESILIENCE IMPLEMENT & VALIDATE DESIG
Slide 9: 2025 Q1 highlights
Quarterly highlights 2025 Q1 highlights Quarterly highlights • The Board of Directors of Proact IT Group AB appointed Magnus Lönn as the new President and CEO of Proact. Magnus succeeded Jonas Revenue Organic growth Hasselberg and started his new position on 1 March 2025. 1,215.5 SEKm 1.5% (1 191.3)
Slide 10: Steady revenue growth of 2.0% driven by Nordic & Baltics
Financial results Steady revenue growth of 2.0% driven by Nordic & Baltics, despite decline in service and cloud revenue Revenue development, 2024 Q1 – 2025 Q1 Revenue by revenue stream (SEKm) • Total revenue increased by 2.0% to SEK 1,215.5 million +2.0% (1,191.3), primarily driven by strong perfor
Slide 11: Growing share of recurring revenue at a 8.2% CAGR
Financial results Growing share of recurring revenue at a 8.2% CAGR from 2020, currently making up 35% of total revenue Annualised recurring revenue development, 2020-2025 • ARR decreased -2.8 % in reported numbers. SEKm 8.2% • New cloud service contracts signed totaling SEK 122.4 million 1,748 1,78
Slide 12: EBITA declined by -16.4% year-over-year
Financial results EBITA declined by -16.4% year-over-year, primarily due to lower service revenue and a slight reduction in gross margin EBITA development, 2024 Q1 – 2025 Q1 -16.4% • Adjusted EBITA decreased by -16.4 per cent in relation to a -7.2 strong comparative quarter and amounted to SEK 79.0
Slide 13: Net cash decreased from SEK 330 million
Financial results Net cash decreased from SEK 330 million in December 2024 to SEK 101 million by Q1 2025 Net cash development Q4 2024 - Q1 2025 (SEKm) -23 • Cash flow for the quarter amounted to SEK -217.5 million 73 (41.0), of which SEK 55.4 million (103.7) was generated from -57 operating activiti
Slide 14: Strong growth and profitability in Nordic & Baltics
Financial results Strong growth and profitability in Nordic & Baltics – system sales drive double-digit revenue increase and improved adjusted EBITA Business Unit deep-dive: Nordic & Baltics Nordic & Baltics Financial development Comments • Strong performance with revenue growth of SEKm Q1 2025 Q1 2
Slide 15: Revenue decline driven by lower system sales
Financial results Revenue decline driven by lower system sales - offset by service growth and BlakYaks acquisition Business Unit deep-dive: UK UK Financial development Comments • Revenue decreased -13,7% to SEK 158.8 million SEKm Q1 2025 Q1 2024 Change (%) (184.1), primarily driven by lower system s
Slide 16: Revenue decline and negative adjusted EBITA
Financial results Revenue decline and negative adjusted EBITA - impacted by lower sales and a strong comparable period last year Business Unit deep-dive: West West Financial development Comments • Revenue decreased -21.3% to SEK 180.5 SEKm Q1 2025 Q1 2024 Change (%) million (229.4), reflecting a dow
Slide 17: Revenue decline and negative adjusted EBITA
Financial results Revenue decline and negative adjusted EBITA - primarily due to lower system and cloud services sales Business Unit deep-dive: Central Central Financial development Comments • Revenue decreased -9.7% to SEK 182.5 million SEKm Q1 2025 Q1 2024 Change (%) (202.0), impacting both system
Slide 18: We continue to make good progress against our long-term targets
Financial results We continue to make good progress against our long-term financial targets on a full-year basis Financial development and long-term financial targets Sales EBITA Leverage ROCE Dividends Sales growth per annum EBITA margin Net debt / EBITDA Return on capital employed Dividends as sha
Slide 19: Summary
Summary Summary • Continued strong performance in Nordic & Baltics. • Strategic acquisition of BlakYaks in the UK strengthens our capabilities within cloud-native services, automation, and Microsoft Azure. • West and Central are facing challenges due to increased customer churn and expiring contract
Slide 20: Thank you!
Thank you! Contacts Magnus Lönn, President & CEO magnus.lonn@proact.eu Noora Jayasekara, CFO noora.jayasekara@proact.eu Christopher Ramstedt, Group Communications Manager christopher.ramstedt@proact.eu Proact 2025 Q1 Interim Report 20