B3 Consulting Group Ab · OMXSTO:B3
B3 Consulting Group Ab — Q1 2024 Earnings Presentation
23 slides from B3 Consulting Group Ab's earnings presentation, Apr 24, 2024
Slide 1: Interim Report B3 Consulting Group Q1 2024
Interim Report B3 Consulting Group Q1 2024
Slide 2: Speakers from B3 Consulting Group
Speakers from B3 Consulting Group Questions? Please click on the envelope icon next to the audiocast or send an email to: ir@b3.se ACTING CEO NEW CEO Sverre Bjerkeli Martin Stenström HEAD OF COMMUNICATIONS & IR CEO REBEL AND BIRD Katarina Lundqvist Jonas Elgquist
Slide 3: eNPS
eNPS 52
Slide 4: Rebel Bird
bS rebel BIRD
Slide 5: Market and market outlook
Market and market outlook Challenging market in Sweden – Poland turning to better • The market continues to be demanding - when the recovery of the Swedish IT-market will occur is still unsure • The outlook for the Polish market is more positive • It's not a market, it's many • IT mega trend is on o
Slide 6: Highlights in Q1
Highlights in Q1 Weak first quarter - have we reached the bottom? Q1 2024 • Revenue 281.3 (324.6) MSEK, -13.3% growth • EBITDA 14.1 (46.0) MSEK, EBITDA margin 5.0% (14.2%) • Profit after tax 6.2 (33.6) MSEK • Earnings per share after dilution 0.63 (2.14) SEK • Average number of co-workers is 790 (79
Slide 7: Financial overview Group
Financial overview Group Lower utilization and less FTE affects the result § We accelerate and brake at the same time § Cost-savings in HQ are according to plan 7
Slide 8: Revenue breakdown
Revenue breakdown Weaker utilization affects the result Revenue breakdown first quarter (MSEK)* 325 § The number of 1 1 employees has decreased -12 -3 -4 by 28 in Q1 and we 280 continue to decrease in -28 April, then we expect a stabilization and a pick up in FTE 2.nd half year. Net Sales FTE Hourly
Slide 9: Utilization rate
Utilization rate Q1 utilization down 9,4 Percent point YoY; measures taken on consultants without assignments -9,4% 87,8% 86,7% § Remember earlier 80,3% 81,2% communication, ”June was 78,4% worse than April/May". § Utilization in March is slightly better than Jan/Feb § Higher sales capacity than eve
Slide 10: B3 is not a company in one market
B3 is not ”a company” in one market Number of companies reduced with 3 (efficiency and scalability) 20 15 10 EBITDA%* 5 0 Results from Q1 Note that 2 companies has been excluded and 3 adjusted to make -5 the scale of the picture more visually proper. -30 -25 -20 -15 -10 -5 0 5 10 15 20 Growth% *EBIT
Slide 11: Alternative financial overview incl. B3 Poland
Alternative financial overview incl. B3 Poland B3 Poland is doing very well Q1 Jan-Dec Alternative key figures with B3 Poland fully consolidated¹ 2024 2023 Δ% 2023 Net sales incl. B3 Poland, MSEK 321,8 363,2 -11,4% 1 297,3 EBITDA incl. B3 Poland, MSEK 20,1 52,4 -61,6% 132,6 EBITDA margin incl. B3 Po
Slide 12: Costsaving - HedgeHog
Costsaving - "HedgeHog" According to plan -41 mSEK 11,0% 10,9% 130 10,1% 11 10,0% § Total savings planned: 9,7% 10 41 MSEK 125 120 8,4% 9 § By the end of Q2, we 9,0% expect to achieve 90% 115 7,6% 8 110 7 6,0% § New cost-saving 105 5,5% 6 initiatives within the HQ Cost% 5 subsidiaries launched in 10
Slide 13: Costsaving HedgeHog
Costsaving HedgeHog New 7 MSEK in effect expected in Q2 50 § Moving according to plan 45 § Note that 6 MSEK of 41 savings is allocated to 40 40 38 subsidiaries § 7 MSEK new savings per 35 31 quarter expected next 3 33 quarters 30 32 29 25 24 24 20 17 15 13 17 10 9 12 10 9 5 0 Q3-23 Q4-23 Q1-24 Q2-24
Slide 14: Important events in Q1
Important events in Q1 Two new framework agreements – attractive employer for women • A new startup has been presented: B3 Connect • B3 took second place among the most attractive employers for women in IT • B3’s option program generated high interest. B3's entire management team and a total of 50 m
Slide 15: B3 & AI
B3 & AI B3's investment in AI has started properly Several activities are ongoing within all our companies: • All our subsidiaries have developed their own AI strategy which they are now executing • Several events are being arranged such as trainings, workshops • An AI policy has been developed for
Slide 16: Summary
Summary We will get out stronger in the other end • Have we reached the bottom? • Cost according to planned – new initiatives launched • We will accelerate and brake at the same time • Priorities at the moment: - sales, sales, sales - cost cut initiatives and margin protection - continue to invest i
Slide 17: Q&A
Q&A 17
Slide 18: Appendix
Appendix 18
Slide 19: B3 Consulting Group
B3 Consulting Group 20 years of building a successful group of companies • Consulting company within IT and management • Founded in 2003 • 800 co workers in Sweden and 200+ in Poland • 11 Offices in Stockholm, Borlänge, Gävle, Gothenburg, Jönköping, Linköping, Malmö, Sundsvall, Örebro, Krakow and Wa
Slide 20: Revenue and EBIT (R12)
Revenue and EBIT (R12) Decreased revenue and margin – have we reached the bottom? Revenue per quarter and R12 (MSEK) EBIT per quarter and R12 (MSEK) EBITDA per quarter and R12 (MSEK) 11,8% 13,6% 9,9% 4,8% 11,9% 160,2 6,9% 140 1 182 1 098 985 117,6 871 831 98 75,4 53 60,6 61,1 35 35 26,3 16,4 14,3 13
Slide 21: Share per Business Area
Share per Business Area Even distribution of revenue – one business area primarily affected by the weak market Revenue, share per business area EBIT, share per business area Digital Experience & Solutions 36,5% (39,4%) Digital Experience & Solutions 9,9% (38,5%) Digital Management 35,5% (31,2%) Digi
Slide 22: Spread across different industries
Spread across different industries Broad customer base in several industries Share of revenue per industry, Jan-Mar 2024 (Jan-Mar 2023) Banking, finance, insurance 19% (19%) Industry 16% (14%) Government agencies, municipalities 15% (14%) Care 12% (13%) IT, media, entertainment 7% (9%) Membership or
Slide 23: Creating Possibilities Together
Creating Possibilities Together