Proact It Group Ab · OMXSTO:PACT
Proact It Group Ab — Q1 2021 Earnings Presentation
24 slides from Proact It Group Ab's earnings presentation, Apr 22, 2021
Slide 1: Summary Q1 2021
Summary Q1 2021 April 22, 2021 Jonas Hasselberg CEO and President jonas.hasselberg@proact.eu Linda Höljö CFO www.proact.eu linda.holjo@proact.eu
Slide 2: Agenda
Agenda • Proact introduction • Proact’s market • Key developments • Financial results • Summary Jonas Hasselberg Linda Höljö 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 LT 4,000 Medium and large enterprise UK NL customers across Europe BE DE CZ 350 Million-euro turnover with stable finances. Listed on Nasdaq Stockholm since 1999 1,000 Employees wi
Slide 4: 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 5: Businesses across all industries are in "state of transformation"
Businesses across all industries are in "state of transformation”. Data is the key to this transformation. Long-term CIO Agenda Corona impact on CIO Agenda - Generate business value and enable innovation - Need for accelerated digitalisation - Increase flexibility, speed and availability - New secur
Slide 6: Quarter in brief
Quarter in brief + Revenue up 6% to 894 (844) MSEK – EBITA margin declined to 4.7% (5.1%) + Total contract value of 78 (51) MSEK – 2% down in Services revenue + 12% up in System Revenue – Covid-19 uncertainties + Dividend of 4.50 SEK and 3:1 split + Acquisition of Conoa in Stockholm
Slide 7: Acquisition of Conoa AB
Acquisition of Conoa AB • Founded in 2012 • 30 employees in Stockholm, Sweden About • Fast revenue growth over past 5+ years • Strong capabilities in cloud-native development platforms • Strong partnership with Mirantis, Red Hat, Rancher etc • Strong within enterprise segment • Similar values and bu
Slide 8: Acquisition of Conoa AB Financials
Acquisition of Conoa AB • Purchase price: 105 MSEK cash-free, debt-free • Multiple: 10.5x EBITA Financials • Yearly revenue: 80 MSEK • EBITA margin: >12%
Slide 9: Accelerated strategy by acquisitions
Accelerated strategy by acquisitions October 2019 • Acquisition of Peopleware in the Amsterdam • 28 MEUR yearly revenue contribution • Experts in cloud-based workspace solutions October 2020 • Acquisition of Cetus Solutions in Manchester • 13 MGBP yearly revenue contribution • Experts in hybrid clou
Slide 10: Key developments in Q1
Key developments in Q1 • Customers rated Proact as top provider of consulting and infrastructure services in Radar’s yearly satisfaction survey • Partnership with LogicMonitor improving quality and expanding cloud services opportunities • Launch of updated disaster recovery solution for multicloud e
Slide 11: Financial development
Financial development
Slide 12: News in quarterly reporting
News in quarterly reporting Reporting in new Business Unit structure: • Nordics & Baltics: Estonia, Finland, Latvia, Lithuania, Norway, Sweden & USA • UK: United Kingdom • West: Belgium, Netherlands & Spain • Central: Czech Republic & Germany Increased granularity in reported Services revenues • Sup
Slide 13: Income Statement – Highlights Q1 2021
Income Statement – Highlights Q1 2021 TOTAL REVENUE SYSTEM SALES SERVICES SALES GROWTH MSEK GROWTH MSEK GROWTH MSEK 6% 894 12% 535 -2% 358 Adj. EBITA Adj. PROFIT BEFORE TAX GROWTH MSEK % GROWTH MSEK % -2% 41.6 4.7% -8% 30.8 3.5%
Slide 14: Revenue development
Revenue development Key developments in the first quarter • Revenue growth 6% • 6% organically • Acquisitions contributing +4% and currency effects by -4% • R12 months growth of 10% (11% in services, 10% in systems) • Services decline of 2% • Organically unchanged • Support services growth of 3% • C
Slide 15: Profitability development
Profitability development Key developments in the first quarter • Adjusted EBITA of 41.6 MSEK (42.6) • Decline by 2% • Margin of 4.7% (5.1%) • Gross margin declining primarily in Services • Mix shifts and increased complexity due to customers working from home • BU West primarily, with action progra
Slide 16: BU Nordics & Baltics
BU Nordics & Baltics Key developments in the first quarter • Revenue growth 14% • Systems 21% • Services -1%, with decline in consulting revenue offset by growth in support and cloud services revenues • Sweden main growth driver • EBITA margin increasing to 5.4% (4.1%) • EBITA of SEK 25.0 (16.9) mil
Slide 17: BU UK
BU UK Key developments in the first quarter • Revenue growth 34% (19% organically) • Systems 73% • Services 2% • Cetus acquisition contributing by 33 MSEK • Strong systems growth organically of 45% • EBITA margin decreasing to 6.3% (6.9%) • EBITA of SEK 12.0 (9.7) million • Increased EBITA due to st
Slide 18: BU West
BU West Key developments in the first quarter • Revenue declined by 26% • Organic decline -22% • Systems -56% • Services -2% • Covid-19 impacting growth, especially for systems • EBITA margin decreasing to -1.7% (6.3%) • EBITA of SEK -2.6 (13.2) million • Negative impact of reduced revenues and lowe
Slide 19: BU Central
BU Central Key developments in the first quarter • Revenue declined by 3% • Systems -5% • Services unchanged • EBITA margin increasing to 7.7% (5.8%) • EBITA of SEK 7.2 (5.7) million • Reduced SG&A costs of 24% • Impact of 2019 action program continues to have positive effects
Slide 20: Cash flow in Q1
Cash flow in Q1 Liquid Funds December 31, 2020 468 • Positive cash-flow from current operations Cash-flow from current operations -56 before change in working capital Current operations 75 • Negative change in working capital related to Change in working capital -131 an increase in accounts receivab
Slide 21: Balance sheet
Balance sheet 2021 2020 2020 • Equity ratio of 21% (MSEK) Mar 31 Dec 31 Mar 31 • Cash position of 393 MSEK Total Assets 3,068 2,924 2,809 whereof Goodwill 573 552 533 • Net debt of 68 MSEK, increased since Dec whereof Intangible fixed assets 110 112 90 2020 by 90 MSEK. whereof Accounts receivables 6
Slide 22: Financial goals
SALES GROWTH FINANCIAL TARGET OUTCOME 3,683 MSEK in sales rolling 12 months GOALS >10% 10% Rolling 12 months EBITA MARGIN TARGET OUTCOME* Gap to target remains 8% 5.9% NET DEBT/EBITDA TARGET OUTCOME Remains significantly better than target <2 0.32 ROCE TARGET OUTCOME Impacted by IFRS 16 and acquisit
Slide 23: Summary
Summary • Positive outlook of IT Infrastructure driven by digitalization of enterprises and public sector, with data and information at its core • Uncertainties from Covid-19 remains with impact on sales cycles in Q1 • Revenue growth and strategic acquisition in Sweden
Slide 24: Thank you
PROACT Thank you www.proact.eu in@ fiv