Gofore Plc · OMXHEX:GOFORE
Gofore — H1 2021 Earnings Presentation
25 slides from Gofore's earnings presentation, 2021
Slide 1: Gofore – Profitable growth continued
Gofore – Profitable growth continued H1 2021 results presentation
Slide 2: Presenting today
Presenting today Mikael Nylund, CEO Teppo Talvinko, CFO 2
Slide 3: Gofore is a growing and profitable digital transformation consultancy
Gofore is a growing and profitable digital transformation consultancy 3
Slide 4: We deliver digital solutions with positive societal impact
We deliver digital solutions with positive societal impact Selected examples Digitalizing Building a smarter national service education sector architecture Building a best-in-class digital services which Creating a single facilitate information sharing point of contact and dialogue between families,
Slide 5: Growing and profitable
Growing and profitable Net sales growth CAGR 2012 – 2017: 56% CAGR 2017 – 2020: 32% €m 78,0 64,1 50,6 34,0 18,6 9,2 12,4 3,7 6,0 2012 2013 2014 2015 2016 2017 1) 2018 2) 2019 3) 2020 4) FAS IFRS Adjusted 11.6% 14.8% 14.9% 12.5% 14.1% 16.8% 13.4% 12.0% 13.8% EBITA-% Note: 2012-2018 figures presented
Slide 6: Gofore H1 2021 – Highlights and financial performance
Gofore H1 2021 Highlights and financial performance
Slide 7: Financial highlights of H1 2021
Financial highlights of H1 2021 NET SALES EBITA, ADJUSTED Employees 51.7 MEUR 6.9 MEUR EBITA-%, ADJUSTED 803 (37.4 MEUR) (5.6 MEUR) 13.4% (610) Growth 38.3% Growth 23.3% (15.1%) Growth 31.6% 7
Slide 8: Key events of H1 2021
Key events of H1 2021 Significant customer agreements Selected • Active M&A track has continued with the • New framework agreements with the Finnish Tax Administration for technical project acquisition of CCEA Ltd in March 2021 management services (EUR 10–12 million, 6 years1), and management consul
Slide 9: Strong growth supported by recent acquisitions and organic growth
Strong growth supported by recent acquisitions and organic growth Sales development H1 2021 vs Growth 49.0% 26.7% 21.7% 11.7% 38.3% H1 2020 Finland 42% 78,0 64,1 International 10% 50,6 51,7 €m Public sector 20% 37,4 Private sector 92% 2018 2019 2020 H1 2020 H1 2021 FAS figures IFRS figures 9
Slide 10: Strong net sales growth in recent months vs. comparison period
Strong net sales growth in recent months vs. comparison period €m CCEA included since March 2021 9,7 8,8 9,1 8,7 8,5 8,3 8,5 8,1 7,5 7,1 6,8 6,6 6,1 6,1 6,4 6,26,0 6,1 5,9 5,9 6,0 5,2 5,3 5,5 5,1 5,35,6 4,6 2,7 2,22,4 January February March April May June July August September October November Decem
Slide 11: 23.3% growth in adjusted EBITA in H1 2021
23.3% growth in adjusted EBITA in H1 2021 • Strong profitability continued with Adjusted adjusted EBITA increasing by 13.4% 12.0% 13.8% 15.1% 13.4% EBITA-% 23.3.% from comparison period • Profitability driven by: 10,8 • Recent acquisitions and organic growth • Positive, returning trend in 7,7 averag
Slide 12: Quarterly development
Quarterly development Group Q1 20211 Q2 2021 Q3 2021 Q4 2021 Net sales, MEUR 25.2 26.4 EBITA, MEUR, adjusted 3.5 3.4 EBITA-%, adjusted 13.9% 13.0% Group Q1 2020 Q2 2020 Q3 20202 Q4 2020 Net sales, MEUR 18.8 18.6 16.3 24.3 EBITA, MEUR, adjusted 3.2 2.5 1.9 3.3 EBITA-%, adjusted 16.8% 13.3% 11.5% 13.5
Slide 13: Positive development in the share of sales to private sector
Positive development in the share of sales to private sector Net sales distribution H1 2021 By location By sector By clientele Subcontracting 9% 19% 36% 37% 51.7 91% 51.7 51.7 51.7 MEUR MEUR 63% MEUR MEUR 64% 81% Finland Outside Finland Private Public Top 5 Others Subcontractors Personnel 13
Slide 14: Financial guidance
Financial guidance 2021 Unchanged Gofore estimates that, for the full year 2021, net sales will increase compared to 2020, and Adjusted EBITA will increase compared to 2020. Gofore will continue to report and comment on its net sales development on a monthly basis. 14
Slide 15: Avenues to reach the growth targets, and key results in H1 2021
Avenues to reach the growth targets, and key results in H1 2021 Growth in Finland International growth Disciplined M&A 1. Become #1 in digital 1. Grow with international 1. Keep up M&A growth at transformation business clients served from Finland least at the historical pace for the public sector 2.
Slide 16: Positive development of average hourly price boosted profitability
Positive development of average hourly price boosted profitability Index, growth 104 H1 2021 Q2 2021 103 vs. vs. H1 2020 Q2 2020 102 Growth 3.2% Growth 3.4% 101 100 99 01/2021 02/2021 03/2021 04/2021 05/2021 06/2021 Average hourly price 16
Slide 17: Billing rate development mirrored customer demand
Billing rate development mirrored customer demand • A temporarily lower than expected billing rate in March-April. Agreement period change of our biggest customer (Keha Centre in Finland) caused some idling in utilisation before ramping up new projects • Otherwise positive development in billing rat
Slide 18: Changes in the labour market affected us and the industry
Changes in the labour market affected us and the industry • Increase in the attrition rate reflected the receding Covid-19 pandemic • Freelance and location-independent work, remote work and similar models have also proliferated, propelled by the pandemic • There is continuing uncertainty about the
Slide 19: Long-term target to continue rapid and profitable growth
Long-term target to continue rapid and profitable growth Gofore financial targets and dividend policy Growth Profitability Dividend >20% annual net sales growth, 15% EBITA margin At least 40% of annual of which organic growth net profit accounts for approximately half 19
Slide 20: Our aim is always to be
Our aim is always to be Growing and Constantly renewing Impactful and International Offering exceptional profitable responsible customer and employee experience 20
Slide 21: GOFORE Q&A
GOFORE Q&A
Slide 22: APPENDIX
APPENDIX
Slide 23: Key figures
Key figures In thousands of EUR, unless otherwise specified 1 Jan –30 June 20211 1 Jan –30 June 2020 1 Jan –31 Dec 20202 Revenue (net sales) 51,679 37,376 77,953 Growth of revenue, % 38.3% 11.7% 21.7% EBITDA 8,115 6,102 12, 329 EBITDA margin-% 15.7% 16.3% 15.8% EBITA, adjusted 6,943 5,629 10, 778 EB
Slide 24: Key figures
Key figures In thousands of EUR, unless otherwise specified 1 Jan –30 June 20211 1 Jan –30 June 2020 1 Jan –31 Dec 20202 Profit for the period 3,944 3,234 6,903 Earnings per share (EPS), diluted, EUR 0.27 0.23 0.49 Return on equity (ROE), % 17.2% 19.9% 20.2% Return on investment (ROI), % 18.2% 20.6%
Slide 25: Thank you.
Thank you. InvestorRelations@gofore.com