Nagarro Se · XETR:NA9
Nagarro — Commerzbank & ODDO BHF Corporate Conference 2023
21 slides from Nagarro's conference presentation, Sep 5, 2023
Slide 1: Thinking Breakthroughs
@® nagarro Thinking Breakthroughs
Slide 2: Disclaimer
The information contained in this document is provided as of the date of its publication and is subject to change without notice. This presentation contains preliminary figures and forward-looking statements. Forward-looking statements may be identified by words such as “expect”, “forecast”, “antici
Slide 3: Fast-growing, scaled, diversified digital engineering leader
• Fast-growing, scaled, diversified, digital engineering leader FY 2022 with a full-service portfolio • €856 million revenue • 56.8% YoY revenue growth • A global company domiciled in Germany • 48.0% YoY constant currency revenue growth • 19,500+ Nagarrians across 35 countries • 39.3% YoY organic co
Slide 4: Our Mission Statement
" ~ » oe N eX a! _ Our Mi - Statement) < * \To make distaneé and . difference irrelevant Aibeen SSeS people — ty i
Slide 5: Countries with registered offices and nationalities
Americas EMEA Asia Canada Austria Australia Colombia Bahrain China Ecuador Denmark India Mexico Finland Japan US France Malaysia Germany Philippines Malta Singapore Mauritius Sri Lanka Norway Thailand Poland Taiwan Portugal Turkiye Romania Saudi Arabia Spain Sweden countries with Switzerland registe
Slide 6: Our core values: a magnet for talent
Our core values: a magnet for talent NS) Caring is our superpower ® %7r e & @ Client-centric Agile Responsible Intelligent Non-hierarchical Global
Slide 7: Growing spend on digital IT services, supported by structural tailwinds
Growing spend on digital IT services, supported by structural tailwinds $543 billion Automotive, Manufacturing Connected Everything 2024 and Industrial Telecom, Media and Entertainment Immersive Experiences CAGR 12% 2020-24 Travel and Aviation Dynamic Pricing $346 billion 2020 Financial Services and
Slide 8: AI-led transformation for our clients
AI-led transformation for our clients 8
Slide 9: Revenue by industry
6% (PY 6%) 7% (PY 7%) Telecom, Media and Management Entertainment 9% Consulting and Business Information 22% (PY 19%) Top 6-10 Automotive, Manufacturing 7% (PY 8%) and Industrial Public, Non-profit, 14% Education Top 5 7% (PY 10%) Horizontal Tech €227m €227m Q2 ’23 14% (PY 13%) Q2 ’23 8% (PY 7%) Ret
Slide 10: Revenue by region and professionals
23% (PY 21%) Rest of World 28% (PY 27%) Central Europe 19,682 total professionals, of which... (Germany is 21%) €227m Q2’23 18,200 professionals in engineering 35% (PY 40%) 14% (PY 11%) North America Rest of Europe 10
Slide 11: Industries served
Automotive, Manufacturing and Industrial Energy, Utilities and Building Automation Travel and Logistics Public, Non-profit and Education Telecom, Media and Entertainment Life Sciences and Healthcare Retail and CPG Horizontal Tech Financial Services and Insurance Management Consulting and Business In
Slide 12: Client relationships and revenue growth
2019 > € 10 million 12 years 2022 revenue average relationship TTM 168 clients with 2019 revenue > €1m € 5-10 million 7 years 2022 revenue average relationship TTM 2019 € 1-5 million 2022 5 years revenue average relationship TTM number of clients 12
Slide 13: Enterprise Agile mindset, processes and organization design
Nagarro’s “Enterprise Agile” mindset, processes and organization design deliver: • Enterprise-class robust engineering • Agility in projects, agility in adapting to changing business and technology environments • Expertise across industries and regions 13
Slide 14: Virtual, global organization design
• Virtual, global organization rather than a federation of national orgs or legal entities • Emphasis on autonomy and choice via internal marketplaces, not top-down decision making • Flat, entrepreneurial management 50+ top-level leaders, >25% of them entrepreneurs • Proprietary “business operating
Slide 15: Acquisition approach: bringing capabilities to the world
Bringing the target’s capabilities to the world… …and bringing global capabilities to the target’s clients 15
Slide 16: Social and environmental initiatives
Testing Pro for people with autism Saving lives via road safety Incubating a university Making art accessible With WWF against single-use plastic Organizing car-free days 16
Slide 17: Q2 2023 key figures and guidance
€227m -0.3% 10.7% 25.3% €28.9m revenue QoQ revenue growth YoY revenue growth gross margin adjusted EBITDA in constant currency in constant currency INDUSTRIES’ YoY GROWTH RANGE SEGMENTS’ YoY GROWTH RANGE 28% -28% 33% -5% 14% energy, utility & bldg horizontal tech rest of europe north america top 5 c
Slide 18: Net leverage and cash flow
Net leverage 2.1x 1.1x 1.6x Total cash flow -26.0 -16.2 Net liabilities 166.0 162.2 226.4 Lease liabilities Net cash flow from operating activities Net cash flow from Financial liabilities investing activities Net cash flow from financing activities Cash 18
Slide 19: 2023 and medium-term targets
2023 target Medium-term target Revenue ~€915m ~20% YoY organic growth Gross Margin ~26% - Adjusted EBITDA ~13% rising to 18% in 2026 19
Slide 20: Key takeaways
1. Positioning “Engineering DNA” digital leader with a special “Enterprise Agile” approach 2. Clients Large, global, blue-chip customer base 3. Organization Agile, entrepreneurial and global org design and culture 4. Financials Strong revenue growth, attractive margins and upside potential 5. Growth
Slide 21: Q&A
Nagarro — Commerzbank & ODDO BHF Corporate Conference 2023 on 6ix