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Nagarro — Berenberg Pan-European Discovery Conference 2023
26 slides from Nagarro's conference presentation, Jun 15, 2023
Slide 1: Nagarro: Thinking Breakthroughs
@® nagarro Thinking Breakthroughs
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 figures and forward-looking statements. Forward-looking statements may be identified by words such as “expect”, “forecast”, “antici
Slide 3: Fast-growing, scaled, diversified digital engineering leader
• Fast-growing, scaled, diversified, digital engineering leader FY 2022 with a full-service portfolio • €856 million revenue • 56.8% YoY revenue growth • A global company domiciled in Germany • 48.0% YoY constant currency revenue growth • ~19,000 Nagarrians across 34 countries • 39.3% YoY organic co
Slide 4: Our Mission Statement
" ~ » oe N eX a! _ Our Mi - Statement) < * \To make distaneé and . difference irrelevant Aibeen SSeS people — ty i
Slide 5: Countries with registered offices and nationalities
Americas EMEA Asia Canada Austria Australia Colombia Bahrain China Ecuador Denmark India Mexico Finland Japan US France Malaysia Germany Philippines Malta Singapore Mauritius Sri Lanka Norway Thailand Poland Taiwan Portugal Romania Saudi Arabia Spain Sweden countries with Switzerland registered offi
Slide 6: Our core values: a magnet for talent
Our core values: a magnet for talent NS) Caring is our superpower ® 47r e & @ Client-centric Agile Responsible Intelligent Non-hierarchical Global
Slide 7: Growing spend on digital IT services, supported by structural tailwinds
Growing spend on digital IT services, supported by structural tailwinds $543 billion Automotive, Manufacturing Connected Everything 2024 and Industrial Telecom, Media and Entertainment Immersive Experiences CAGR 12% 2020-24 Travel and Aviation Dynamic Pricing $346 billion 2020 Financial Services and
Slide 8: Nagarro's differentiated position
Engineering DNA Consulting DNA Nagarro’s differentiated position: Excellence in digital product engineering combined with a portfolio of enterprise services Excellence in digital product engineering to Services DNA “change the business” Excellence in enterprise services to “run the business” 8
Slide 9: Revenue by industry and client concentration
6% 7% Telecom, Media and Management Entertainment Consulting and 9% Business Information 20% Top 6-10 Automotive, Manufacturing 7% and Industrial Life Sciences and 15% Healthcare Top 5 8% Energy, Utilities and 14% Bldg Automation Financial Services and Insurance 76% 8% Horizontal Tech Rest 13% 9% Re
Slide 10: Revenue by region and professionals
22% Rest of World 27% Central Europe 18,946 (Germany is 20%) total professionals, of which... 17,674 professionals in engineering 14% 38% Rest of Europe North America 10
Slide 11: Industries served and client logos
Automotive, Manufacturing and Industrial Energy, Utilities and Building Automation Travel and Logistics Public, Non-profit and Education Telecom, Media and Entertainment Life Sciences and Healthcare Retail and CPG Horizontal Tech Financial Services and Insurance Management Consulting and Business In
Slide 12: Client relationships by revenue size
> € 10 million 2019 12 years revenue 2022 average relationship € 5-10 million 2019 7 years revenue 2022 average relationship € 1-5 million 2019 5 years revenue 2022 average relationship number of clients 12
Slide 13: Enterprise Agile mindset, processes and organization design
Nagarro’s “Enterprise Agile” mindset, processes and organization design deliver: • Enterprise-class robust engineering • Agility in projects, agility in adapting to changing business and technology environments • Expertise across industries and regions 13
Slide 14: Virtual, global organization design
• Virtual, global organization rather than a federation of national orgs or legal entities • Emphasis on autonomy and choice via internal marketplaces, not top-down decision making • Flat, entrepreneurial management 50+ top-level leaders, >25% of them entrepreneurs • Proprietary “business operating
Slide 15: Acquisition approach: bringing capabilities to the world and the target's clients
Bringing the target’s capabilities to the world… …and bringing global capabilities to the target’s clients 15
Slide 16: Social and environmental initiatives
Testing Pro for people with autism Saving lives via road safety Incubating a university Making art accessible With WWF against single-use plastic Organizing car-free days 16
Slide 17: Slide 17
Slide 18: Q1 2023 highlights and milestones
Highlights Milestones • Constant currency growth continued, • 2.6% QoQ although the pace moderated revenue growth in constant currency • FX impacted reported revenue numbers • 22.9% YoY revenue growth in constant currency • Inorganic growth continued with the acquisition of Infocore and MBIS • Net P
Slide 19: Q1 2023 financial key figures
€230m 23.7% 22.9% 26.8% €31.4m revenue YoY revenue growth YoY revenue growth gross margin adjusted EBITDA (constant currency) INDUSTRIES’ YoY GROWTH RANGE SEGMENTS’ YoY GROWTH RANGE 39% -6% 33% 17% 15% financial services & horizontal tech rest of world central europe top 5 clients’ revenue insurance
Slide 20: Q1 2023 revenue by industry
6% (PY 6%) 7% (PY 7%) Telecom, Media and Management Entertainment Consulting and 9% Business Information 20% (PY 19%) Top 6-10 Automotive, Manufacturing 7% (PY 8%) and Industrial Life Sciences and 15% Healthcare Top 5 8% (PY 7%) Energy, Utilities and €230m 14% (PY 13%) €230m Bldg Automation Q1 ’23 F
Slide 21: Q1 2023 revenue by region
22% (PY 20%) Rest of World 27% (PY 29%) Central Europe 18,946 (Germany is 20%) total professionals, of which... €230m Q1’23 17,674 professionals in engineering 14% (PY 13%) 38% (PY 38%) Rest of Europe North America 21
Slide 22: Regional growth Q1 2022 vs Q1 2023
29% 27% 25% 24% 28% 34% 27% 24% Q1 ’22 Q1 ’23 Q1 ’22 Q1 ’23 Q1 ’22 Q1 ’23 Q1 ’22 Q1 ’23 North America Central Europe Rest of Europe Rest of World 22
Slide 23: Net leverage and cash flow
Net leverage 2.1x 1.1x 1.04x Net liabilities 166.0 162.2 157.4 Total cash flow -27.2 7.0 Lease liabilities Net cash flow from operating activities Financial liabilities Net cash flow from investing activities Cash Net cash flow from financing activities 23
Slide 24: 2023 target
2023 target Revenue ~€940m Gross Margin ~28% Adjusted EBITDA ~15% 24
Slide 25: Summary: positioning, clients, organization, financials, 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 26: Q&A
Nagarro — Berenberg Pan-European Discovery Conference 2023 on 6ix