4ig Nyrt. · BET:4IG
4ig Nyrt — FY2020 Earnings Presentation
26 slides from 4ig Nyrt's earnings presentation, April 2021
Slide 1: Investor Presentation 2020 Annual Result
INVESTOR PRESENTATION 2020 ANNUAL RESULT
Slide 2: 2020 Year Key Highlights
2020 YEAR KEY HIGHLIGHTS ▪ 2020 was the strongest financial year of 4iG ever in its history, during which we have delivered strong growth in both revenues and EBITDA: ▪ HUF 57.3 billion in revenue (39% increase compared to the same period in 2019) ▪ HUF 5 billion EBITDA (24% increase compared to the
Slide 3: Major Events in 2020
MAJOR EVENTS IN 2020 ▪ Own share purchase of the Company (between 15 January 2020 and 27 January 2020) With regard to the period between 15 January 2020 and 27 January 2020, 4iG Plc ▪ Upon 10 March 2020, 4iG Plc. purchased 100,000,- quantity of owns shares at Budapest Stock Exchange by means of stoc
Slide 4: Summary of Acquisitions
SUMMARY OF ACQUISITIONS On 9th of July 2020, 4iG acquired 100% of the shares of TR Consult Ltd., thus becoming the sole owner of the Target Company. Cybersecurity is one of the key growth areas for 4iG. We have seen an increasing customer demand for home office due to telecommuting, and we aim to fu
Slide 5: Major Post Balance Events
MAJOR POST BALANCE EVENTS ▪ January 26th , 2021, 4iG has signed the Share Sale and Purchase Agreement and acquired 24% of the shares of Rotors & Cams Ltd. ▪ February 3rd, 2021,KZF Vagyonkezelő Ltd. as the major shareholder of 4iG, has signed the Sale and Purchase Agreement to acquire 100% of the sha
Slide 6: Near Term Outlook
NEAR TERM OUTLOOK ▪ Our goal is to enter and further strengthen the company in its three pillar strategic target segments (IT, Telco/Infrastructure, Space & Defense) in 2021 and become the #1 integrator in the Hungarian IT market in the next two years. ▪ Revenue of highly profitable 2020 year was ro
Slide 7: Growth Strategy Overview
GROWTH STRATEGY OVERVIEW ROBUST ORGANIC GROWTH SUPPORTED BY ACQUISITIONS Vision and Strategy Our goal: To become a diversified Target areas for growth technology holding company in Hungary • Technologies: AI, Blockchain, Cyber Security, Digitalization, and a major player in the Central and Fintech,
Slide 8: Focus Areas of 4iG Group Strategy
FOCUS AREAS OF 4IG GROUP STRATEGY Telecommunication & IT /System Integration Space & Defense Infrastructure ▪ Aim to become the market leader ▪ 4iG as an industry-specific system integrator ▪ Significant synergistic opportunities in ▪ Harmonization and exploitation of ▪ Significant synergies between
Slide 9: Strategic and Financial Outlook
STRATEGIC AND FINANCIAL OUTLOOK ORGANISATIONAL INTENSIVE GROWTH ENTRER NEW 2019 2020 2021+ RESTRUCTION AND SEGMENTS AND EXPANSION REGIONAL EXPANSION Growth trough Introduction of a three- Refocused sales acquisitions pillar group structure Introduction of new Focus on large (IT, Telco, Space & techn
Slide 10: Company Overview
COMPANY OVERVIEW
Slide 11: Company Snapshot
COMPANY SNAPSHOT Business Highlights Financial Highlights (HUF bn) ▪ Due to its uniquely wide-range of competence and flexibility, 4iG is able to serve its customers' needs of any 100.0 size or complexity 57.3 41.1 ▪ 4iG’s most important assets are the +700 technical 50.0 14.0 4.0 5.0 employees (con
Slide 12: Competence Map
COMPETENCE MAP CUSTOMER BACK OFFICE INDUSTRY SPECIFIC SOLUTIONS Client hardware distribution Workstation as PUBLIC DATA LOCAL SECTOR NETWORK & WIFI a service Design, CENTRE Cabling, End-user and Switching, Routing, mobile security Security Software development Collaboration tools Certified hardware
Slide 13: Diversified Business Model
DIVERSIFIED BUSINESS MODEL SALES BY SALES BY SERVICE INDUSTRY Public Administration Consulting, Science, Development Operation Trade/ 29% Legal activities 20% 8% Commerce 5% Support, consulting 2% Transport, Health and 6% Warehousing social care 5% 8% SW sales Manufacturing Financial and 8% (pharmac
Slide 14: Current Structure of the Group
CURRENT STRUCTURE OF THE GROUP 2020 consolidated result: Revenue: HUF 57 300 m EBITDA: HUF 5 047 m EBITDA margin: 8,8% Acquisitions in progress 60% 100% 100% 51% 24% 100% 75% DOTO HUMAN Veritas Poli Hungaro CarpathiaSat Rotors & Systems Consulting Computer SOFT Llc. Cams DigiTel Ltd. Ltd. Service *R
Slide 15: Activities of Subsidiaries
ACTIVITIES OF SUBSIDIARIES ▪ Founded: 2019 ▪ Acquired: 2020 ▪ Activity: certified hardware service ▪ Activity: Hardware developer company that delivers custom software solutions in the filed of Artificial intelligence, data warehouse, FINTECH and test automation. ▪ Founded: 2019 ▪ Acquired: 2021 Apr
Slide 16: Shareholder Information
SHAREHOLDER INFORMATION KEY SHAREHOLDERS(1) SHARE PRICE PERFORMANCE 800.0 Free Float KZF Trustee, Share Price Evolution (HUF) 35% MANHATTAN PE 700.0 62% 600.0 500.0 400.0 Market capitalization 300.0 as of 15-Apr-2021 200.0 HUF 59,2 billion Treasury Shares 100.0 3% 0.0 2020 Q2 2020 Q3 2020 Q4 2021 Q1
Slide 17: Hungarian IT Market
HUNGARIAN IT MARKET HUNGARY'S IT MARKET EXPECTED TO GROW BY AVERAGE 3.5% PER YEAR, MAINLY IN THE INFRASTRUCTURE AND APP/SERVICE SEGMENTS MARKET GROWTH FORECAST 2020-24 MAIN MARKET DRIVERS International technology trends IoT solutions have started to take off in the manufacturing, Hardware Software C
Slide 18: Key Players in Hungarian IT Market
KEY PLAYERS IN HUNGARIAN IT MARKET FULL SCALE T- Systems 4iG SERVICE CAPABILIITES Delta Unisys Asseco Invitech S&T EuroONE Symmetria Duna Tigra Elektronika 100+ Micro ICT Companies NICHE 100 EMPLOYEE # 1000+ Note: Size of the bubble indicated estimated revenue 4IG PR ESENT AT ION 18 Source: 4iG, pub
Slide 19: Financial Overview
FINANCIAL OVERVIEW
Slide 20: Revenue Evolution by Segments
REVENUE EVOLUTION BY SEGMENTS HW SALES: HW sales picked up in OPERATION: Several successful, 22,845 the last quarter of the year, with long-prepared operation contracts HW 29,004 turnover now exceeding the base were concluded last year, and will again. continue to have an impact in SW SALES: In some
Slide 21: 2020 Revenue Bridge
2020 REVENUE BRIDGE REVENUE BY TYPE OF NET REVENUE BUILD- UP SERVICE HUF m HUF m 70,000 2019 2020 60,000 57,300 50,000 41,129 40,000 33,504 30,000 24,973 20,190 20,000 14,539 8,623 10,000 4,850 0 Q1 Q1-Q2 Q1-Q3 Y (1) Other revenue: support, consultancy, implementation and other services 4IG PR ESENT
Slide 22: 2020 EBITDA Bridge
2020 EBITDA BRIDGE EBITDA BRIDGE EBITDA BUILD- UP HUF m HUF m +24% 6,000 2019 2020 5,047 5,000 4,075 4,000 3,000 2,818 2,484 2,000 1,360 1,009 1,000 483 578 0 Q1 Q1-Q2 Q1-Q3 Y 4IG PR ESENT AT ION 22
Slide 23: 2020 P&L Overview
2020 P&L OVERVIEW 4iG Nyrt 2020Y / ▪ After the slowdown due to the pandemic 2019Y % 2020Y % (HUF M) 2019Y situation in Q2 2020, traffic growth continued Net Revenues 41 129 99% 57 300 99% 139% to strengthen, with an increase in the number of ongoing service transactions and development Other operati
Slide 24: 2020 Balance Sheet Summary
2020 BALANCE SHEET SUMMARY NET DEBT/(- CASH) (1) WORKING CAPITAL(2) HUF m HUF m 0 5,000 4,757 -500 4,500 -1,000 3,936 4,000 -1,500 3,500 -2,000 3,000 2,500 -2,500 -3,000 - 2,649 2,000 1,500 -3,500 1,000 -4,000 500 - 3,982 -4,500 0 2019Y 2020Y 2019Y 2020Y (1) Net debt: including provisions and long-t
Slide 25: Disclaimer
DISCLAIMER THIS PRESENTATION WAS MADE BY 4iG PLC (HEADQUARTERS: 1037 BUDAPEST, MONTEVIDEO U. 8). THE PRESENTATION SHALL CONTAIN ONLY FACTUAL INFORMATION AND REASONABLY DRAWN CONCLUSIONS VIA REASONABLE CALCULATIONS, FORMALLY PUBLISHED BY THOSE WHO ARE ENTITLED FOR THIS, IN ACCORDANCE WITH THE RELEVAN
Slide 26: Contact details
H-1037 Budapest, Montevideo u. 8. Tel: +36 1 270 7600 Fax: +36 1 270 7679 www.4ig.hu