Slide 1: Summary Q4 2023
Summary Q4 2023 February 8, 2024 Jonas Hasselberg CEO and President jonas.hasselberg@proact.eu Åsa Regen Jansson Interim CFO www.proact.eu asa.regen.jansson@proact.eu
Slide 2: Agenda
Agenda • Proact introduction • Proact’s market • Key developments • Financial results • Summary Jonas Hasselberg Åsa Regen Jansson CEO and President CFO
Slide 3: Who is Proact
Who is Proact FI NO 1994 Almost 3 decades of helping customers drive SE business value and growth – through IT EE LV DK 4 000 Medium and large enterprise UK NL customers across Europe BE DE CZ 5 000 Million SEK turnover with stable finances. Listed on Nasdaq Stockholm since 1999 1 200 Employees with
Slide 4: Businesses in state of transformation; data is the key
Businesses across all industries are in "state of transformation”. Data is the key to this transformation. The four defining growth trends in the market - Business: Focus on digital transformation and business innovation through IT - Technology: The use of hybrid cloud to increase speed, flexibility
Slide 5: Customer Use Cases
Customer Use Cases | Delivery Route Digital Patient Records Optimisation Warehouse AI Redaction Automation Rapid Application Remote X-ray Analysis Development
Slide 6: The hybrid cloud journey
PROACT The hybrid cloud journey We help you fi r Business and IT alignment ABaqeNS We help you uonequausyduu| fe, fe 4 Scurits Public cloud Hosted cloud location | Dedicate A 5 We help you fc y @Support @Monitor @Manage @Secure suoneledo
Slide 7: Value to customers via our propositions
Value to customers via our propositions
Slide 8: Our hybrid-cloud model enables the best of the cloud worlds
Private Public Managed Our hybrid-cloud model enables the best of the cloud worlds
Slide 9: The infrastructure sits in one of three places
The infrastructure sits in one of three places Customer data centre Hyper-scaler data centre Proact data centres
Slide 10: #ThePowerOfData
Faster digitalisation Any & devops application. Anywhere. Self- service and automation Flexible & agile scalability Modern workspace Start utilising the advantages with Hybrid cloud private hosted public Customer data centre Hyper-scaler data centre Proact data centres #ThePowerOfData
Slide 11: Strong hybrid cloud offerings
Strong hybrid cloud offerings Customer data centre Hyper-scaler data centre Proact data centres Storage Proact Hybrid Cloud CloudOps 4 Azure Networking Proact Managed Containers CloudOps 4 Workspace Compute Immutable Storage CloudOps 4 Virtual Workspace Service Management Next Gen Firewall CloudOps
Slide 12: Standardised and local Managed Services
Standardised and local Managed Services FI NO SE EE Best-in-class security, processes and tools LV DK • 24/7 helpdesk and standby specialists • ISO certified NL UK • ServiceNow customer tooling BE DE CZ • Available across Proact markets Four (4) main delivery HUBs across Europe • Wide range of stand
Slide 13: Security Operations Centers
Security Operations Centers Resources Skills Technology 24/7 24/7 coverage 24/7 Security Operations Centres
Slide 14: Specialist in IT Infrastructure for managing Data and Information
Specialist in IT Infrastructure for managing Data and Information CONSULTING MANAGED SERVICES HARDWARE & SOFTWARE TECHNICAL SUPPORT
Slide 15: Strong Customer Loyalty
Strong Customer Loyalty Customer NPS Promoters = 65% Passives = 28% Detractors = 6%
Slide 16: Strong Employee Loyalty
Strong Employee Loyalty Employee NPS Promoters = 51% Passives = 29% Detractors = 20%
Slide 17: Key developments in Q4
Key developments in Q4 • Strong fourth quarter with good development in the service business driven by support and cloud services • Cost program finalised as per plan with impact on COGS and Sales & Administration costs • Recognised for strong focus on data protection and awarded Excellence in Secur
Slide 18: Quarter 4 in brief
Quarter 4 in brief + 5% service revenue growth – -5.6% revenue decline + 13% ARR growth to 1,748 MSEK – EBITA decline of -11% to 91.1 MSEK + TCV at 197 (142) MSEK + Cost efficiency program concluded + Strong cash position
Slide 19: Financial development
Financial development
Slide 20: Income Statement – Highlights Q4 2023
Income Statement – Highlights Q4 2023 TOTAL REVENUE SYSTEM SALES SERVICES SALES GROWTH MSEK GROWTH MSEK GROWTH MSEK -5.6% 1,360 -11% 812 5% 547 Adj. EBITA PROFIT BEFORE TAX GROWTH MSEK Margin GROWTH MSEK Margin -11% 91.1 6.7% -4% 82.6 6.1%
Slide 21: Revenue development
Revenue development Revenues Key developments in the fourth quarter • Revenue decreased with 5.6% (-6.9% organically) • Strong comparison quarter 4, 2022 • Longer sales cycles from macroeconomic uncertainty • Acquisitions contributing -0,4% (sale of Proact Lithuania) and currency effects 1.8% • New
Slide 22: Profitability development
Profitability development Adjusted EBITA Key developments in the fourth quarter • Adjusted EBITA of SEK 91 million (102) • Decrease of 11% • Margin of 6.7% (7.1) • Gross margin 22.2% (22.5%) • Slight decrease yoy due to somewhat lower Systems margin • Improved Service margins impacted positively by
Slide 23: BU Nordics & Baltics
BU Nordics & Baltics Revenues Key developments in the fourth quarter • Revenue decreased 3% (-2% organically) • Systems decreased 6% (-5% organically), primarily due to strong comparison quarter • Services increased 7% (8% organically), with good growth in cloud service contracts • EBITA margin decr
Slide 24: BU UK
BU UK Revenues Key developments in the fourth quarter • Revenue decreased with 8% (-13% organically) • Systems decreased 21% (organically -25%) due to strong comparison quarter and longer sales cycles • Services increased 6% (organically 0.5%) with good growth in support and cloud services • Consult
Slide 25: BU West
BU West Revenues Key developments in the fourth quarter • Revenue decrease 15% (19% organic decrease) • Systems decreased 49% -(52% organically) • Services increasing 7% (2% organically) • Support services showing good growth due to new won contracts, while consulting revenues decreasing primarily d
Slide 26: BU Central
BU Central Revenues Key developments in the third quarter • Revenue increase by 2.7% (organically decrease 2%) • Systems 4% (organically 1%) • Services growth of 1% (organically -3.5%) • Good underlying demand for support services are offset by lower consulting revenue • EBITA margin increasing to 7
Slide 27: Cash flow in Q4
Cash flow in Q4 Cash flow development Liquid Funds September 30, 2023 429 • Positive cash-flow from current operations before Cash-flow from current operations 241 change in working capital of SEK 148 million in Current operations 148 • Positive change in working capital SEK 93 million Change in wor
Slide 28: Cash flow January – December 2023
Cash flow January – December 2023 • Positive cash-flow from current operations before Liquid Funds December 31, 2022 506 change in working capital Cash-flow from current operations 532 • Positive change in working capital Current operations 427 Change in working capital 105 • Investment in fixed ass
Slide 29: Balance sheet
Balance sheet 2023 2022 • Equity ratio of 25% (MSEK) Dec 31 Dec 31 • Cash position of SEK 548 million Total Assets 4,044 4,242 whereof Goodwill 984 984 • Net cash, including leasing liabilities, of whereof Intangible fixed assets 177 231 SEK 80 million whereof Accounts receivables 718 850 • Strong c
Slide 30: Financial goals
SALES GROWTH FINANCIAL TARGET OUTCOME SEK 4 847 million GOALS >10% 1.9% Rolling 12 months EBITA MARGIN TARGET OUTCOME* Behind FY2022 6.6% 8% 6.2% NET DEBT/EBITDA TARGET OUTCOME* <2 -0.17 Significantly better than target ROCE TARGET OUTCOME Decreased from FY2022 (17.2) due to NRI >20% 16.3% DIVIDEND
Slide 31: Summary
Summary • Cloud revenue increase of 13% and record TCV • Strong growth in Annualised Recurring Revenue (ARR) to 1,748 MSEK • 1,552 MSEK in Q4 2022 • 1,747 MSEK in Q3 2023 • Competitive offering and great customer satisfaction
Slide 32: Thank you
Thank you www.proact.eu