Exclusive Networks SA — Q3 2021 Earnings Presentation
16 slides from Exclusive Networks SA's earnings presentation, Nov 17, 2021
Slide 1: SW 2021 Update
EXCLUSIVE NETWORKS SW 2021 UPDATE 17 November 2021
Slide 2: Disclaimer
Disclaimer IMPORTANT: Please read the following before continuing. This document has been prepared by and is the responsibility of Exclusive Networks SA (the “Company”). It comprises information concerning the Company and its subsidiaries (together, the “Group”). What follows applies to this documen
Slide 3: Q3 2021 Highlights
Q3 2021 Highlights Top Line Scale Sustained Growth Visible & Diversified €2.3bn YTD 2021 +21.9% (1) in Q3 119% Vendors Renewal Rate (2) Gross Sales Gross Sales 115% Customers Renewal Rate (2)
Slide 4: Q3 2021: Delivering our Strategy
Q3 2021: Delivering our Strategy GROWTH DRIVERS INCREMENTAL ACCELERATORS 5 PURSUE Expanded strategic agreement VALUE-ADD M&A BY in EMEA 4 ACQUIRING NEW OR EXTEND SERVICES UNDERWEIGHT 3 OFFERING GEOGRAPHIES OR CAPABILITIES ENABLE NEW VENDORS ACROSS 2 OUR FOOTPRINT ADD NEW 1 GEOGRAPHIES FOR EXISTING V
Slide 5: Gross Sales: Double Digit Growth in Line with Guidance
Gross Sales: Double Digit Growth in Line with Guidance Q3 2021 GROSS SALES Q3 2021 GROSS SALES BY SEGMENT €m €m +22.3% +44.2% 21.9% 497 +43.5% 608 EMEA 75 c.c. (2) 37.7% 804,9 660.1 Q3 2020 Q3 2021 584,7 75.4 +21.2% APAC +22.0% 85 c.c. (2) 103 Q3 2020 Q3 2021 Q3 2020 Q3 2021 % Growth (1) % Reported
Slide 6: Revenue: Double Digit Growth Above Cybersecurity Market
Revenue: Double Digit Growth Above Cybersecurity Market Q3 2021 REVENUE Q3 2021 REVENUE BY SEGMENT €m €m +38.5% 440 318 +38.0% EMEA c.c. (1) 34.0% Q3 2020 Q3 2021 431,8 578,4 431.8 +22.8% APAC +23.6% c.c. (1) 66 81 Q3 2020 Q3 2021 Q3 2020 Q3 2021 % Reported Growth +19.3% YoY Growth Americas +20.2% R
Slide 7: Double Digit Growth Driven by Key Strategic Levers
Double Digit Growth Driven by Key Strategic Levers Q3 2021 DRIVERS OF GROWTH RENEWAL METRICS BACK TO PRE-COVID Contribution to Gross Sales growth (1)(2) LEVELS +21.9% 119% Q3 2021 vendors ~14% 113% in renewal rate (3) ~2% Q3 2020 ~14% 115% Q3 2021 customers 110% in renewal rate (3) Q3 2020 ~70% Sust
Slide 8: Continued Progress with New and Existing Vendors
Continued Progress with New and Existing Vendors NEW VENDORS CONVERTED FROM PIPELINE SINCE Q2 ONGOING EXPANSION WITH EXISTING VENDORS SELECT EXAMPLES Juniper 4 in Q3 2021 Expansion in the Belgium, Spain, UK Cloud Security (DevSecOps) Netskope Select new vendors Device Identity As A Service Expansion
Slide 9: M&A: Acquisition Closed and Under Exclusivity
M&A : 1 Acquisition Closed and 1 Under Exclusivity RECENT ACQUISITION ONGOING M&A STRATEGY : PIPELINE REMAINS STRONG Rationale: Establishing a dedicated proposition 10-15 targets Almost always 1 target Highly for emerging vendors reviewed bilateral basis currently fragmented annually (16/17 historic
Slide 10: 2021 and Medium Term Financial Guidance Reiterated (1/2)
2021 and Medium Term Financial Guidance Reiterated (1/2) 2020 2020 2021 Medium Term (incl. Veracomp) Low teens % growth Mid-teens % growth in 2022 Gross Sales incl. M&A €2,564m €2,886m Low double-digit % growth in the mid-term EMEA Growth in line with Group APAC Growth slightly below Group level Ame
Slide 11: 2021 and Medium Term Financial Guidance Reiterated (2/2)
2021 and Medium Term Financial Guidance Reiterated (2/2) 2020 2021 Medium Term Depreciation and Amortisation (1) (incl. Leases) €9m Low double digit in €m Low to mid double digit in €m Effective Tax Rate 31% Low 20s % Increasing to mid 20s % (% Adj. PBT) (2) ~4.5% 3.7% ~4.5% NWC (3) as % of Gross Sa
Slide 12: Q&A
Slide 13: Appendix
Slide 14: Gross Sales to Revenue Reconciliation Table
Appendix GROSS SALES TO REVENUE RECONCILIATION TABLE €m 9 months 2020 9 months 2021 Gross Sales 1,774.1 2,282.3 Agent vs Principal (Mainly Vendors’ Support) – IFRS 15 (449.3) (567.9) Timing of Revenue Recognition – IFRS 15 4.3 3.5 Intercompany Eliminations (18.4) (33.6) Revenue 1,310.7 1,684.3
Slide 15: Our Financial KPIs: Definitions and Contemplated Reporting
Our Financial KPIs: Definitions and Contemplated Reporting Definition Years Segments Reporting • Gross Sales represent revenue recognized by the Group on a gross basis for each revenue stream and before intra and inter segment intercompany 2018, 2019, EMEA, APAC, Gross Sales Quarterly eliminations 2
Slide 16: The Global Cybersecurity Specialist
The Global Cybersecurity Specialist