Exclusive Networks SA — Q3 2023 Earnings Presentation
22 slides from Exclusive Networks SA's earnings presentation, Nov 7, 2023
Slide 1: Exclusive Networks Q3 2023 Earnings call
#WeAreExclusive Exclusive Networks Q3 2023 Earnings call
Slide 2: Disclaimer
Disclaimer #WeAreExclusive IMPORTANT: Please read the following before continuing. This document has been prepared by and is the responsibility of Exclusive Networks SA (the “Company”). It comprises information concerning the Company and its subsidiaries (together, the “Group”). What follows applies
Slide 3: Agenda
Agenda #WeAreExclusive Q3-23 Business Review Q3-23 Financial Review Jesper Trolle, CEO Nathalie Bühnemann, CFO 9:00 am 9:15 am Q&A session Final remarks Jesper Trolle, CEO 9:30 am 9:45 am 3
Slide 4: Business Review
#WeAreExclusive Business Review Jesper Trolle CEO
Slide 5: Q3 2023 Highlights
#WeAreExclusive Q3 2023 Highlights VISIBLE & DIVERSIFIED SCALE Market Opportunity PORTFOLIO ~$ 7 bn YTD 122% Q3-23 net vendor Gross sales at €1,228 m 128% in Q3-22 retention rate3 additional annual SAM2 opportunity +13% at constant currency1 121% +9% reported1 Leading to $47 bn annual SAM2 129% in Q
Slide 6: Continuously grow our addressable market opportunity
Continuously grow our addressable market opportunity Geographic expansion signed with 4 existing 2 new vendors added to our portfolio #WeAreExclusive vendors Evolving our vendor Portfolio: Expansion in APAC Expansion in France Quantum computing Application and Expansion in Africa threats Network Int
Slide 7: Unique positioning in cloud business
Unique positioning in cloud business Cloud business activities reaching 1/3 of overall business #WeAreExclusive % OF CLOUD-BASED SALES NUMBER OF PARTNERS ON NUMBER OF TRANSACTIONS ON €m +34%1 +46% +82% Q3-22 Q3-23 Q3-22 Q3-23 Q3-22 Q3-23 7
Slide 8: Constantly outpacing market growth in all key segments
Constantly outpacing market growth in all key segments Best-in-class vendor portfolio enabling continuous leading positioning #WeAreExclusive Top Tier Cybersecurity segments growth (%, 12 months rolling) 1 Market Growth Exclusive Networks 55% 50% 45% 29% 29% 25% 24% 22% 23% 15% 12% 8% 9% 9% 5% 4% ID
Slide 9: Strengthening our profile with a strategic acquisition
Strengthening our profile with a strategic acquisition M&A underpins and accelerates our growth strategy #WeAreExclusive • Rationale: expand Ignition Technology geographic coverage in Southern Europe • Acquired in Q3 2023 • Location: Spain, Portugal and Italy • FY-22 Gross sales: €38 million • ~50 e
Slide 10: Financial Review
#WeAreExclusive Financial Review Nathalie Bühnemann CFO
Slide 11: Q3-23 Gross sales drivers
Q3-23 Gross sales drivers Growth driven by our strong and diversified vendor portfolio Q3 2023 GROSS SALES Q3 2023 DRIVERS OF GROWTH €m Contribution to Gross Sales growth €m +9% 1,228 +3% +1% +5% 1,228 11,127 127 1,127 794 794 Same Vendors, Q3 2021 Q3 2022 Q3 2023 Q3 2022 Same Vendor M&A Q3 2023 Exp
Slide 12: Q3-23: Solid performance despite tough comps
#WeAreExclusive Q3-23: Solid performance despite tough comps Q3 2023 GROSS SALES BY REGION €m +63% +43% +16% 857 973 • Continued robust momentum of double-digit growth +44% +14% 597 in an uncertain market environment EMEA • Outstanding execution leading to market growth outperformance Q3 2021 Q3 202
Slide 13: Continued momentum in Q3-23
Continued momentum in Q3-23 Stable mix in deal size Gross Sales breakdown by geography Gross Sales breakdown by Deal Size1 APAC (-2 Pts) Deals >€1m 8% (-1 Pt) Americas (-1 Pt) 15% Deals <€20k (=) 18% 13% 10% 16% 18% 14% Deals €500k - €1m 11% Q3 2022 – Inner pie (+1Pt) 10% Q3 2022– chart Inner pie ch
Slide 14: 9 months of 2023 Gross sales
9 months of 2023 Gross sales Solid growth powered by EMEA and NAM, on track with growth plans #WeAreExclusive 9 months of 2023 Gross sales 9 months of 2023 Gross sales by region €m €m +62% +20% 2 795 +38% 2 385 +17% 1 728 +38% EMEA 3,560 3 560 9 months of 2021 9 months of 2022 9 months of 2023 +103%
Slide 15: 2023 Outlook
2023 Outlook FY-23 outlook confirmed, with Adj. EBIT expected in the upper end of the range 2023 Outlook (Feb 28, 2023) Gross sales Above €5,150m Net margin €450- €465m Adj. EBIT €172 – €178m Adj. operating FCF 80% of adj. EBITDA 15
Slide 16: Key Takeaways
Key Takeaways Strong pipeline with no project cancellations, but more deal scrutiny Pursuit of M&A strategy to reinforce our attractive value proposition Fundamentals remain solid Guidance confirmed 16
Slide 17: Q&A
#WeAreExclusive Q&A We welcome any questions you may have
Slide 18: Appendices
#WeAreExclusive Appendices
Slide 19: Q3 2023 Revenue by region
#WeAreExclusive Q3 2023 Revenue by region Q3 2023 REVENUE Q3 2023 REVENUE BY REGION €m €m +24% 948 +21% 760 630 EMEA 809 Q3 2022 Q3 2023 +32% Americas +22% 109 89 Q3 2022 Q3 2023 APAC 89 79 Q3 2022 Q3 2023 % Reported % Constant Currency (1) Q3 2022 Q3 2023 % Reported Growth % Constant Currency (1) 1
Slide 20: From Gross sales to Revenue
From Gross sales to Revenue Gross sales to revenue reconciliation (EURm) Q3-22 9 months of 2022 Q3-23 9 months of 2023 Gross sales 1,127 3,074 1,228 3,560 Agent vs principal (mainly vendors’ support) – IFRS 15 (318) (792) (280) (835) Revenue 809 2,282 948 2,724 20
Slide 21: Glossary
Glossary • Gross Definition Years on a gross sales represent revenue recognized by the Group Segments basis Reporting #WeAreExclusive K Gross Sales for each revenue stream • Net of returns, discount and rebates • IFRS revenue I Revenue • Support & Maintenance margin accounted for revenue • Net of re
Slide 22: Thank You
#WeAreExclusive Thank You Investors & Analysts Hacene BOUMENDJEL , Head of IR ir@exclusive-networks.com