Slide 1: Investor Meeting
Investor Meeting Financial Statements as at 30.09.24
Slide 2: Clarifications
Clarifications • The presentation contains forecasts, estimates and plans of the Company regarding its operations and other information about future events and matters, which constitute forward-looking information, as defined in the Securities Law, 1968, and realization thereof is uncertain and may
Slide 3: Q3/2024 Highlights
Q3/2024 Continued growth in Sales, Gross profit, Operating profit, EBITDA, Net profit, and Cash Flow Despite Prolongation of the War’s Impact Sales - 6.4% growth to NIS 1.42 billion. 11.3% growth after adjusting sales accounted for on a net basis(*) Gross profit - 9.6% growth to NIS 205 million whil
Slide 4: 1-9/2024 compared to the corresponding period
1-9/2024 compared to the corresponding period: Continued growth in Sales, Gross profit, Operating profit, EBITDA, Net profit, and Cash Flow Despite Prolongation of the War’s Impact Sales - 7.5% growth to NIS 4.2 billion, 10% growth after adjusting sales accounted for on a net basis(*) Gross profit -
Slide 5: Leadership and growth characteristics
For 19 consecutive years, we have been leading the information technology market and carry out innovative IT projects in Israel using the most up-to-date technologies for the leading customers in the economy Leadership and growth Operating Segments 11,520 professionals characteristics The largest an
Slide 6: Leading partners and analyst ratings
For 19 consecutive years, we have been leading the information technology market and carry out innovative IT projects in Israel using the most up-to-date technologies for the leading customers in the economy 11,520 professionals Leading partners Analyst ratings Market leader of added value services
Slide 7: The War's Impact
The War’s Impact • Despite the war, the Company's operations were characterized by continued organic growth in sales, profit, and cash flow. • As of September 30, 2024, 170 of the Company’s employees are enlisted in reserve duty; as of this date, 260 are enlisted - a decrease compared to 470 at the
Slide 8: Financial Statements
Financial Statements 30.9.2024
Slide 9: Key data from the income statement – Q3 2024
Key data from the income statement – Q3 2024 compared to the corresponding quarter Key results (in NIS millions) Q3 2024 Q3 2023 Change in % Sales 1,419 1,334 *6.4% Gross profit 205 187 9.6% SG&A 97 94 3.2% Operating profit 108 93 16.0% Financing expenses, net 16 17 (5%) Taxes on income 22 20 14.4%
Slide 10: Key data from the income statement – Q3 2024
Key data from the income statement – Q3 2024 compared to the corresponding quarter Key results (in NIS millions) Q3 2024 Q3 2023 Change in % Sales 1,419 1,334 *6.4% Gross profit 205 187 9.6% SG&A 97 94 3.2% Operating profit 108 93 16.0% Financing expenses, net 16 17 (5%) Taxes on income 22 20 14.4%
Slide 11: Key data from the income statement – 1-9/2024
Key data from the income statement – 1-9/2024 compared to the corresponding period Key results (in NIS millions) 1-9 2024 1-9 2023 Change in % Sales 4,205 3,911 *7.5% Gross profit 614 561 9.5% SG&A 284 268 5.8% Operating profit 330 292 12.9% Financing expenses, net 48 49 (3.5%) Taxes on income 68 58
Slide 12: Key data from the income statement – 1-9/2024
Key data from the income statement – 1-9/2024 compared to the corresponding period Key results (in NIS millions) 1-9 2024 1-9 2023 Change in % Sales 4,205 3,911 *7.5% Gross profit 614 561 9.5% SG&A 284 268 5.8% Operating profit 330 292 12.9% Financing expenses, net 48 49 (3.5%) Taxes on income 68 58
Slide 13: Key Company results after adjusting sales recognized on a net basis
Key Company results after adjusting sales recognized on a net basis (in NIS thousands) Q3/2024 Q3/2023 % 1-9/2024 1-9/2023 % Sales 1,418,810 1,333,520 6.4% 4,205,255 3,911,415 7.5% During the quarter, there was an increase in sales from transactions, that according to IFRS, must be recognized on a n
Slide 14: Key Company results after adjusting sales recognized on a net basis
Key Company results after adjusting sales recognized on a net basis (in NIS thousands) Q3/2024 Q3/2023 % 1-9/2024 1-9/2023 % Sales 1,418,810 1,333,520 6.4% 4,205,255 3,911,415 7.5% Adjustments for the increased sales 65,844 96,268 accounted for on a net basis Adjusted sales 1,484,654 1,333,520 11.3%
Slide 15: Key Company results after adjusting sales recognized on a net basis
Key Company results after adjusting sales recognized on a net basis (in NIS thousands) Q3/2024 Q3/2023 % 1-9/2024 1-9/2023 % Sales 1,418,810 1,333,520 6.4% 4,205,255 3,911,415 7.5% Adjustments for the increase in sales 65,844 96,268 accounted for on a net basis Adjusted sales 1,484,654 1,333,520 11.
Slide 16: Third Quarter 2024 Summary – Organic Growth
Third Quarter 2024 Summary – Organic Growth Key results (in NIS millions) Sales Gross profit Operating profit +6.4% +16% 1,334 1,419 108.2 +9.6% 205 187.1 93.3 14.0% 14.5% 7% 7.6% Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 6.4% sales growth to 9.6% growth in gross profit 16% growth in operating
Slide 17: Third Quarter 2024 Summary – Organic Growth
Financing expenses, net (in NIS millions) Third Quarter 2024 Summary – Organic Growth Q3 2024 Q3 2023 Key results (in NIS millions) Interest, commissions, and other (net) 5.9 9.4 Exchange rate differences 4.3 0.3 Accounting Finance Expenses 5.9 7.3 Total financing expenses (net) 16.1 17 Net earnings
Slide 18: Summary 1-9/2024 – Consistent growth in sales and profits
Summary 1-9/2024 – Continuous improvement in performance over the years Consistent growth in sales and profits (in NIS millions) Sales Gross profit Operating profit* 10.6% 11.2% 4YR 4YR 12.4% CAGR CAGR 4YR +7.5% CAGR +9.5% 3,911 4,205 614.0 330.1 3,531 560.8 292.4 3,200 488.8 256.4 2,806 457.3 239.3
Slide 19: Summary 1-9/2024 – Consistent growth in revenue and profits
Summary 1-9/2024 – Continuous improvement in performance over the years Consistent growth in revenue and profits (in NIS millions) Net earnings to Adusted EBITDA* Net profit** 13.3% shareholders** 11.3% 14% 4YR 4YR 4YR CAGR CAGR CAGR +9.1% +15.8% 371.4 214.2 +18.6% 340.4 202.5 297.1 179.7 184.9 281.
Slide 20: Israel Operations
Israel Operations Created in Midjourney AI platform
Slide 21: Breakdown of sales by customers' areas of operation
Goverment and Defense 16% Financial 27% High-Tech 12% Industry, Communications, and Retail Health and Transportation 13% 18% Other 14% Breakdown of sales by customers’ areas of operation* * According to 2023 sales
Slide 22: Operations in Israel Q3 2024
Operations in Israel* Q3 2024 (in NIS millions) 8.4% sales growth; 13.6% growth 23.8% growth in operating after adjusting sales recognized on a 10.9% 11.6% profit net basis 4YR CAGR 4YR CAGR +23.8% 93 1,351 1,246 75 64 67 1,039 60 962 894 Q3/2020 Q3/2021 Q3/2022 Q3/2023 Q3/2024 Q3/2020 Q3/2021 Q3/20
Slide 23: Operations in Israel 1-9/2024
Operations in Israel* 1-9/2024 (in NIS millions) 8.3% sales growth; 11% growth 16.8% growth in operating after adjusting sales recognized on a 15.3% 12% profit net basis 4YR CAGR 4YR CAGR +16.8% 3,991 288 3,685 247 3,248 225 3,021 211 2,539 163 1-9/2020 1-9/2021 1-9/2022 1-9/2023 1-9/2024 1-9/2020 1
Slide 24: Operating segments in Israel - Q3/2024
Operating segments in israel - Q3/2024 (in NIS thousands) Sales Operating profit Q3/2024 Q3/2023 % Q3/2024 Q3/2023 % Information technology solutions and services, 820,454 735,500 11.6% 54,873 43,868 25.1% consulting, and management in Israel profit margin (%) 6.7% 6% • Seasonality impact (increase
Slide 25: Operating segments in Israel - Q3/2024
Operating segments in Israel - Q3/2024 (in NIS thousands) Sales Operating profit Q3/2024 Q3/2023 % Q3/2024 Q3/2023 % Information technology solutions and services, consulting, and 820,454 735,500 11.6% 54,873 43,868 25.1% management in Israel profit margin (%) 6.7% 6% Cloud and computing 367,951 387
Slide 26: Cloud infrastructures and computing after adjusting net basis income
Cloud infrastructures and computing after adjusting income accounted for on a net basis (in NIS thousands) Q3/2024 Q3/2023 % 1-9/2024 1-9/2023 % Sales 367,951 387,027 (4.9%) 1,130,011 1,118,278 1.0% Adjustments for the increase in sales accounted for on a net basis 39,203 89,802 Adjusted sales 407,1
Slide 27: Operating segments in Israel - Q3/2024
Operating segments in israel - Q3/2024 (in NIS thousands) Sales Operating profit Q3/2024 Q3/2023 % Q3/2024 Q3/2023 % Information technology solutions and services, consulting, and management in 820,454 735,500 11.6% 54,873 43,868 25.1% Israel profit margin (%) 6.7% 6% Cloud and computing infrastruct
Slide 28: Moving up to Nimbus with Matrix
Matrix provides the widest range of solutions for the government cloud with 38 services Moving up AWS & GCP to Nimbus with Matrix AWS
Slide 29: Operating segments in Israel - Q3/2024
Operating segments in Israel - Q3/2024 (in NIS thousands) Sales Operating profit Q3/2024 Q3/2023 % Q3/2024 Q3/2023 % Information technology solutions and services, consulting, and management in 820,454 735,500 11.6% 54,873 43,868 25.1% Israel profit margin (%) 6.7% 6% Cloud and computing infrastruct
Slide 30: US Operations
US Operations
Slide 31: Operating segments - Q3/2024
Operating segments - Q3/2024 (in NIS millions) Sales Operating profit Q3/2024 Q3/2023 % Q3/2024 Q3/2023 % Information technology solutions and services, 820.5 54.9 consulting, and management in Israel Information technology solutions and services, 111.1 126.3 (12%) 16.5 19.9 (17.3%) consulting, and
Slide 32: Operating segments - 1-9/2024
Operating segments - Q3/2024 (in NIS millions) Sales Operating profit 1-9/2024 1-9/2023 % 1-9/2024 1-9/2023 % Information technology solutions and services, 2,389 178.5 consulting, and management in Israel Information technology solutions and services, 348.6 357.2 (2.4%) 50.4 53 (4.9%) consulting, a
Slide 33: Risk and Compliance
Us Untonsani SoftBank mieewes, = EUTAR DISCeVER © Prime Bank ESB BB vu FE monet Peoples Group Risk and Compliance Risk Management and Compliance functions in financial institutions play a pivotal role requiring defined processes designed to identify, measure, monitor, control, and report on specific
Slide 34: Alacer acquisition in GRC/AML advisory
▪ Alacer has been providing expert advisory services in the GRC/AML field for 15 years and has an excellent reputation ▪ The acquisition of control in Alacer represents a significant step forward in the development of IFS in the advisory field, reducing dependence on third-party technologies and pro
Slide 35: Breakdown of sales and profits by operating segment during 1-9/2024
Breakdown of sales and profits by operating segment during 1-9/2024 Contribution to profits Sales 2% 3% 7% 8% 15% 8% 53% 55% 26% 23% Training and implementation Software US Operations Cloud infrastructures Software Services
Slide 36: Financial Indexes
Financial Indexes
Slide 37: Financial indexes (NIS millions)
Financial indexes (NIS millions) 30.09.2024 12/31/2023 Cash Flows From Current Operations - LTM Cash and cash equivalents 520 640 Unused credit facilities* 1,228 1,448 617.1 Total liquid assets 1,748 2,088 +38% * Of which NIS 300 million committed credit facilities 428.3 447.3 Cash flows from Operat
Slide 38: Financial indexes (NIS millions)
Financial indexes (NIS millions) 30.09.2024 31.12.2023 372 1,125 Series B Shareholder equity 1,126 1,107 Company Debentures equity % of total balance sheet 27.5% 27.4% 153 Financial debt, gross 830.6 956.4 Loans from Financial Equity/Debt Net debt – short-term and long-term Institutions Structure cr
Slide 39: Continued decline in cash flow interest expenses
Continued decline in cash flow interest expenses. 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 3/31/23 30.6.23 30.9.23 12/31/23 3/31/24 30.6.24 30.9.24 5% 4% 3% Bank of Israel interest 2% rate 1% 0% 18.9 16.9 17.0 16.6 15.4 16.1 14.8 4.9 Breakdown of 7.6 10.5 5.7 8.9 financing expenses 9.0 10.2 (in NIS millions)
Slide 40: Dividend distribution
Dividend distribution 790 million NIS in 3.5 years Annual dividend Dividend per share Amount Date of distribution yield (in agorot) (in NIS millions) 3.91% April 2024 127 80.67 July 2024 81 51.45 October 2024 82 52.08 Total 1-9/2024 290 184.2 Total FY 2023 199 126.4 Total FY 2022(*) 452 284.3 Total
Slide 41: Dividends of NIS 48.2 million
Dividends of NIS 48.2 million. (NIS 0.76 per share)
Slide 42: Conclusion
Conclusion Organic growth in sales and profits during a period of war The Company continues its trend of double-digit organic growth despite the impact on sales and profits due to reserve duty of hundreds of employees and a slowdown in demand for services in the training sector Maintaining growth ra
Slide 43: Thank you
Thank you