Slide 1: Preliminary results earnings call
Its inary resu m ‘Preli
Slide 2: Disclaimer and forward-looking statements
The information contained in this document is provided as of the date of its publication and is subject to change without notice. This presentation contains preliminary unaudited figures and forward-looking statements. Forward-looking statements may be identified by words such as “expect”, “forecast
Slide 3: Nagarro at a glance
• Fast-growing, scaled, diversified, digital engineering leader with a full-service portfolio • A global company domiciled in Germany • 18,000+ Nagarrians across 33 countries • Differentiated organization design based on agility, entrepreneurship and global teams • Diverse and loyal blue–chip custom
Slide 4: Highlights FY 2021, FY 2022 prelims and FY 2023 guidance
Highlights FY 2021 • €546 million revenue • Revenue growth momentum sustained, even in the • 26.9% YoY revenue growth uncertain economic environment • 14.6% adj. EBITDA margin FY 2022 prelims • Wage inflation and attrition reverted towards pre-Covid • €856 million revenue levels in some large servic
Slide 5: Q4 2022 highlights and milestones
Highlights Milestones • Better than anticipated revenue (€231m) and margins (28.9% • 42.6% YoY gross margin, 13.2% adj. EBITDA margin) in what is often a revenue growth weak quarter due to holidays and accumulated leaves • 33.4% YoY revenue growth in constant currency • Wage inflation and attrition
Slide 6: Revenue by region Q4 2021 vs Q4 2022
Q4 ’21 Q4 ’22 Q4 ’21 Q4 ’22 Q4 ’21 Q4 ’22 Q4 ’21 Q4 ’22 North America Central Europe Rest of Europe Rest of World 6
Slide 7: Net leverage and cash flow
Net leverage 1.7x 2.1x 1.1x Total cash flow -8.8 9.2 Net liabilities 130.0 166.0 162.2 Lease liabilities Net cash flow from operating activities Financial liabilities Net cash flow from investing activities Cash Net cash flow from financing activities 7
Slide 8: Positioning, clients, organization, financials and growth
1. Positioning “Engineering DNA” digital leader with a special “Enterprise Agile” approach 2. Clients Large, global, blue-chip customer base 3. Organization Agile, entrepreneurial and global org design and culture 4. Financials Strong revenue growth, attractive margins and upside potential 5. Growth
Slide 9: Jalsa, the annual event for Nagarrians in South Asia
a ee ——— One of the days of Jalsa, the annual event for Nagarrians in South Asia
Slide 10: Revenue by currency and bank balances
Revenue obtained 40% 20% 12% 5% 3% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 0% 0% 0% 0% 5% from Revenue 11% 15% 49% 3% 0% 0% 0% 1% 2% 1% 0% 1% 0% 0% 0% 7% 6% 2% 1% 1% serviced by Dec 31 bank 23.4 22.5 26.1 5.3 0.6 1.8 2.1 1.2 4.5 1.5 0.5 2.5 0.3 0.0 0.6 6.2 4.8 0.4 1.0 4.8 balances EUR m 10
Slide 11: Revenue per employee
FY 2021 FY 2022 € 39.9k €46.9k • During fast growth, revenue per employee calculations based on full year revenue and year-end employee data may 250 Sum across 4 quarters: €49.5k 12800 mislead (see graph) 12,704 12,658 12600 • Revenue per employee in our industry depends primarily on 200 12,489 1240
Slide 12: Days of sales outstanding
FY 2019 FY 2020 FY 2021 FY 2022 84 72 84 73 During fast growth, DSOs based on whole 250 year revenues and year-end receivables 95 and contract assets may mislead 90 88 200 85 82 83 81 80 79 79 150 75 75 75 72 72 71 70 69 70 68 68 68 100 65 60 50 55 50 0 45 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2
Slide 13: Operating cash flow as % of revenue
FY 2019 FY 2020 FY 2021 FY 2022 250 10% 17% 8% 10% 45 40 200 35 32 30 150 25 20 100 17 17 16 15 15 14 12 13 10 50 8 9 6 5 4 4 2 2 2 0 0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Revenue in million EUR Operating c
Slide 14: Revenue and adjusted EBITDA growth 2017-2023E
12% 12% 14% 18% 15% 17% ~15% CAGR 30% 1,020 CAGR 35% 2017-23E 2017-23E 148 856 546 76 80 430 402 58 287 34 211 26 2017 2018 2019 2020 2021 2022 2023E 2017 2018 2019 2020 2021 2022 2023E 14
Slide 15: Q&A