Slide 1: Summary Q2 2021
Summary Q2 2021 July 14, 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: Value through our propositions
Value through our propositions
Slide 6: Our deployment models enable delivery to you anywhere
Private Public Managed Our deployment models enable delivery to you anywhere On-premises infrastructure
Slide 7: Businesses across all industries are in a state of transformation
Businesses across all industries are in a state of transformation. Data is the key to this transformation. CIOs agenda Covid-19 impact • Accelerate business digitalisation • IT-investments connected to managing covid-19 is • Generate more business value and enable decreasing business innovation thro
Slide 8: Quarter in brief
Quarter in brief + 2% up in Services revenue – Revenue down 11% to 878 (987) MSEK + GM increasing to 22.7% (21.7%) – EBITA margin declined to 5.2% (5.7%) + SG&A decreasing by -3% – 19% down in System revenue + Strategic acquisition of Conoa – Covid-19 uncertainties
Slide 9: Key developments in Q2
Key developments in Q2 • Sales cycles have been prolonged during 2021 while opportunities and customer activity remain high • Semiconductor shortages have impacted deliveries from main partners and vendors in Q2 • Integration of Conoa on track with good progress on cross- and up-sell as well as co-d
Slide 10: Acquisition of Conoa AB
Acquisition of Conoa AB • Founded in 2012 • 30 employees in Stockholm, Sweden About • Fast revenue growth over past 5+ years in enterprise segment • Strong capabilities in cloud-native development platforms • Strong partnership with Mirantis, Red Hat, Rancher etc • Good progress in integration proje
Slide 11: Accelerated strategy by acquisitions
Accelerated strategy by acquisitions October 2019 • Acquisition of Peopleware in the Amsterdam • 220 employees • Experts in cloud-based workspace solutions October 2020 • Acquisition of Cetus Solutions in Manchester • 47 employees • Experts in hybrid cloud solutions April 2021 • Acquisition of Conoa
Slide 12: Financial development
Financial development
Slide 13: Income Statement – Highlights Q2 2021
Income Statement – Highlights Q2 2021 TOTAL REVENUE SYSTEM SALES SERVICES SALES GROWTH MSEK GROWTH MSEK GROWTH MSEK -11% 878 -19% 507 2% 370 Adj. EBITA Adj. PROFIT BEFORE TAX GROWTH MSEK Margin GROWTH MSEK Margin -18% 46.0 5.2% -12% 35.1 4.0%
Slide 14: Revenue development
Revenue development Key developments in the second quarter • Revenue growth -11% • -14% organically • Acquisitions contributing +5% and currency effects by - 2% • R12 months growth of 2% (5% in services, -1% in systems) • Services increase of 2% • -1% organically • Support services growth of 8% (org
Slide 15: Profitability development
Profitability development Key developments in the second quarter • Adjusted EBITA of SEK 46.0 (56.3) million • Decline by 18% • Margin of 5.2 (5.7)% • Gross margin increasing, primarily in Systems • Cost control • Favourable pricing development • SG&A costs reducing by 8% for comparable units • 2020
Slide 16: BU Nordics & Baltics
BU Nordics & Baltics Key developments in the second quarter • Revenue decline 14% • Systems -22% (organic -24%) • Services +12% (organic +4%), with increase in all services but mainly consulting +29% • Conoa acquisition contributing by SEK 22 million, primarily within consulting services • Sweden an
Slide 17: BU UK
BU UK Key developments in the second quarter • Revenue growth 33% (18% organically) • Systems 65% • Services 9% • Cetus acquisition contributing by SEK 22 million • Strong systems growth organically of 43% • EBITA margin decreasing to 6.3% (6.7)% • EBITA of SEK 10.7 (8.5) million • Increased EBITA d
Slide 18: BU West
BU West Key developments in the second quarter • Revenue declined by 16% • Organic decline 11% • Systems -29% • Services -8% • Continued pressure on revenues, in particular systems, but improving from Q1 • EBITA margin decreasing to 1.9 (3.7)% • EBITA of SEK 3.3 (7.5) million • Negative impact of re
Slide 19: BU Central
BU Central Key developments in the second quarter • Revenue declined by 31% • Systems -42% • Services -6% • Slow decision making at customers impacting • EBITA margin increasing to 7.0 (6.0)% • EBITA of SEK 5.7 (7.1) million • Organically reduced SG&A costs of 20% contributing to positive margin dev
Slide 20: Cash flow in Q2
Cash flow in Q2 Liquid Funds March 31, 2020 393 • Positive cash-flow from current operations Cash-flow from current operations 247 before change in working capital Current operations 71 • Positive change in working capital is mainly Change in working capital 176 related to a decrease in accounts rec
Slide 21: Cash flow January-June 2021
Cash flow January-June 2021 Liquid Funds December 31, 2020 468 • Positive cash flow from current operations Cash-flow from current operations 191 before change in working capital Current operations 145 • Positive change in working capital mainly Change in working capital 46 related to decrease in ac
Slide 22: Balance sheet
Balance sheet 2021 2020 2020 • Equity ratio of 21% (MSEK) Jun 30 Dec 31 Jun 30 • Cash position of 500 MSEK Total Assets 3,043 2,924 2,888 whereof Goodwill 647 552 507 • Net cash of 26 MSEK, increased since Dec whereof Intangible fixed assets 132 112 77 2020 by 4 MSEK. whereof Accounts receivables 47
Slide 23: Financial goals
SALES GROWTH FINANCIAL TARGET OUTCOME SEK 3,575 million in sales rolling 12 months GOALS >10% 2% Rolling 12 months EBITA MARGIN TARGET OUTCOME* Gap to target remains 8% 5.8% NET DEBT/EBITDA TARGET OUTCOME Remains significantly better than target <2 -0.07 ROCE TARGET OUTCOME Impacted by IFRS 16 and a
Slide 24: Summary
Summary • Decline in Systems sales driven by longer sales cycles • Growth in Services revenue • Improvement in Gross Margin and good cost control
Slide 25: Thank you
PROACT Thank you www.proact.eu in@ fiv