Nagarro Se · XETR:NA9
Nagarro — Non-Deal Roadshow (December 2020)
32 slides from Nagarro's roadshow presentation, Dec 8, 2020
Slide 1: Nagarro: Thinking Breakthroughs
@® nagarro Thinking Breakthroughs
Slide 2: Disclaimer
DISCLAIMER This presentation and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy or subscribe for any securities of Allgeier SE or Nagarro SE. This presentation is not directed to, or inten
Slide 3: Key spin-off details
Key spin-off details 100% of Nagarro SE to be spun-off from Allgeier SE Nagarro SE (Ticker: NA9) Technical spin-off (no offering of securities) Management roadshow: 08 - 15 December 2020 First day of trading: 16 December 2020 One Nagarro SE share for every one Allgeier SE share (allotment ratio 1:1)
Slide 4: Today's presenters
Today’s presenters NS) Manas Fuloria Custodian of entrepreneurship in the organization Vikram Sehgal Custodian of operational excellence in the organization * Responsible for organizational design and internal alignment * Co-founder in 1996, full-time since 2011, Executive Board member at Allgeier 2
Slide 5: Global presence: offices and nationalities
Atlanta Monterrey Boston New York Chicago San Jose Indianapolis Toronto Jacksonville Brasov Helsinki Strassbourg Bucharest Johannesburg Stockholm Cluj-Napoca Karlsruhe Stuttgart Cologne London Timisoara Copenhagen Leipzig Valletta Craiova Leverkusen Vienna Dubai Munich Warsaw Ebene Oslo Wiesbaden Fr
Slide 6: Our Mission Statement
Our Mission Statement To make distance irrelevant between intelligent people.
Slide 7: Our core values
Our core values NS) Caring is our superpower ® %7re & @ Client-centric Agile Responsible Intelligent Non-hierarchical Global
Slide 8: Nagarro at a glance
Nagarro at a glance A global tech services company domiciled in Germany Fast-growing, scaled, diversified, digital engineering leader with a full-service portfolio 8,406 Nagarrians across 25 countries Differentiated organization design based on entrepreneurship and global teams Diverse and loyal blu
Slide 9: Growing spend on digital IT services, supported by structural tailwinds
Growing spend on digital IT services, supported by structural tailwinds $543 billion 2024 CAGR 12% 2020-24 $346 billion 2020 9
Slide 10: Excellence in digital product engineering to change the business
• • • • • • Excellence in digital • product engineering to “change the business” Excellence in enterprise services to “run the business” 10
Slide 11: A full-service portfolio for comprehensive solutions
A full-service portfolio for comprehensive solutions Differentiated focus on digital product engineering Revenue by service line 51% 14% Digital Digital Commerce & CX Product Engineering 10% New-Gen ERP Consulting €402m 2019 19% Managed Services 7% Other! 1. Includes third-party testing, plus consul
Slide 12: Reach and scale to service multinational clients globally
Reach and scale to service multinational clients globally Globally diversified revenue base Globally diversified employee base Revenue by client region Personnel worldwide 10% Rest of World ° 8,406 total professionals India: 5,172 9 Romania: 721 Cantal Europe * 7,588 q j rreiilrl faald €402m (German
Slide 13: Diversified across industries and customers
Diversified across industries and customers Active across a large variety of industries . 1 Revenue by industry 6% Management 13% 7% Consulting and Avtomotive, Horizontal Business information ta and Tech Industrial 7% Life Sciences and Healthcare 13% Travel and Logistics 9% Public, €402m Non-profit
Slide 14: Working with the leaders in each industry
Working with the leaders in each industry Automotive, Manufacturing and Industrial CED BMW || $ Maruti suzuki SIEMENS Travel and Logistics 7 ws vv @ Post [65%] [DB] 2 Frpon 2 buttnersa GBB YY Telecom, Media and Entertainment. stem ANE apmiraL NETENT NOKIA verizon’ Retail and CPG Amway coop am @ & Wa
Slide 15: Large client base to develop over time
Large client base to develop over time > €10 million 2019 revenue € 5-10 million 2019 revenue €1-5 million 2019 revenue clients 14 years average relationship, preferred vendor status 8years average relationship 5 years average relationship These are proforma numbers. Data from acquired entitiesis in
Slide 16: 2017 2018 2019 2017 2018 2019
2017 2018 2019 2017 2018 2019 16
Slide 17: Why customers choose us
Why customers choose us Nagarro’s “Enterprise Agile” mindset, processes and organization design deliver: » Enterprise-class robust engineering * Agility in projects and in client engagements * Expertise applied flexibly across industries and regions » Agility in adapting to changing business and tec
Slide 18: 18
18
Slide 19: Powered by a unique org design and culture
Powered by a unique org design and culture 1 Oy 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 entrep
Slide 20: Socially responsible around the globe
Socially responsible around the globe NS) age HARYANA = ZERO | twig Testing Pro for people with autism Saving lives via road safety Incubating a university (Sy WWF Making art accessible With WWF against single-use plastic Organizing car-free days 20
Slide 21: Open, global culture driving post-merger integration and synergies
Open, global culture driving post-merger integration and synergies e oe 2 2 2 e 2011 2014 2016 2017 2018 2019 Nagarro: Softcon: Mokriya: Ciber: | iQuest: Farabi-S4M: Product Managed services Design SAP. Lifesciences, Mobile engineering loT banking Hexa: Conduct: Cloud Information Objectiva: security
Slide 22: Continued growth despite COVID-19
Continued growth despite COVID-19 NS) 1 Revenues Gross Profit Adjusted EBITDA €m CAGR 38% CAGR 9% 2017-19 402,4 a 129,1 57,7 58,2 105,9 J, 4 930 294,1 5, , 89,9 41,8 210,6 64,2 34,3 L L [ Al 2017 2018 +2019 9M 9M 2017 2018 +2019 9M 9M 2017 2018 +2019 9M 9M 2019 2020 2019 2020 2019 2020 ules and incl
Slide 23: 34% 26% 42,3 27,6 24% 47,9 43,3 19% 19% 11% 1% -7% -10% 9M
34% 26% 42,3 27,6 24% 47,9 43,3 19% 19% 11% 1% -7% -10% 9M 2019 9M 2020 -11% 23
Slide 24: 2020 guidance and targets
2019 2020 guidance 2021target Medium-term target Organic revenue growth €427m – €433m Organic revenue growth Revenue €402m rates to return to historical (6% - 8% growth) rate in the region of 15% (2017-19) levels Gross Margin 32% 32% – 33% – – €58m €72m – €77m Adjusted EBITDA – In the region of 15%
Slide 25: Spin-off benefits to the business
Spin-off benefits to the business Branding Focus Bringing visibility to the Enhanced management focus Nagarro brand via capital on the core business, fewer markets presence. distractions. Scaling Capital market access as a pure-play digital leader to support the growth potential of the business.
Slide 26: Multiple tangible growth and upside opportunities
Multiple tangible growth and upside opportunities Opportunity to sustain and improve organic revenue CAGR 2017-19 of 19% and improve margins over time Historical investments... Entry into numerous elite clients Development of multiple verticals and horizontals Ability to acquire and integrate compan
Slide 27: Investment highlights
Investment highlights Large, resilient and evolving software development market with structural tailwinds The leading digital engineering specialist with a full-service portfolio and a differentiated “Enterprise Agile” approach A large blue-chip customer base across many verticals and geographies, s
Slide 28: Thank you
Thank you
Slide 29: Management board: representing the larger senior management team
Management board: representing the larger senior management team Manas Fuloria Custodian of entrepreneurship in the organization * Responsible for organizational design and internal alignment * Co-founder in 1996, full-time since 2011, Executive Board member at Allgeier 2014- 2020 * BTech and PhD fr
Slide 30: Supervisory board
Supervisory board Carl Georg Dirrschmidt Chairman * Chairman of the Executive Board and significant shareholder at Allgeier SE * Twelve years of experience investing in German SMEs prior to taking a stake in Allgeier in 2001 and joining the Executive Board in 2003 * Education in business economics D
Slide 31: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Nine months period ended September 30 2020 2019 Total Total kEUR kEUR EBITDA 53,542 39,026 Losses on the disposal of non-current assets (net) 20 56 Losses from impairments and write-offs of customer receivables (net) 2,080 688 Expense from purchase price adjustments -
Slide 32: Capital structure
Capital structure Comfortable liquidity position * Cash at year end adequate for company’s growth needs; balances held in highly liquid short-term deposits * Lease liabilities recognized per IFRS16 Pending merger of Connect AG with Nagarro SE at spin-off » High net leverage at Sep 30, 2020 is tempor