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Nagarro — Jefferies Pan-European Mid Cap Conference 2023
24 slides from Nagarro's conference presentation, Mar 14, 2023
Slide 1: Nagarro: Thinking Breakthroughs
@® nagarro Thinking Breakthroughs
Slide 2: Disclaimer
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 unaudited figures and forward-looking statements. Forward-looking statements may be identified by words such as “expect”, “forecast
Slide 3: Fast-growing, scaled, diversified digital engineering leader
• Fast-growing, scaled, diversified, digital engineering leader FY 2021 with a full-service portfolio • €546 million revenue • 26.9% YoY revenue growth • A global company domiciled in Germany • 14.6% adj. EBITDA margin FY 2022 prelims • 18,000+ Nagarrians across 33 countries • €856 million revenue •
Slide 4: Our Mission Statement
Our Mission Statement To make distance irrelevant between intelligent people
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 Portugal Romania Saudi Arabia Spain Sweden countries with Switzerland registered offices Sou
Slide 6: Our core values: a magnet for talent
Our core values: a magnet for talent NS) Caring is our superpower ® %7wr &K @ 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 customer concentration
6% 6% Telecom, Media and Life Sciences and Entertainment 11% 19% Healthcare Automotive, Manufacturing Top 6–10 and Industrial 7% Energy, Utilities and 15% Bldg. Automation Top 5 7% Public, Non-profit and Education 15% Financial Services and Insurance 8% Mgmt. Consulting and Business Information 74%
Slide 10: Revenue by region and professionals
22% Rest of World 26% 18,087 Central Europe total professionals, of which... (Germany is 19%) 16,849 professionals in engineering 11% Rest of Europe 41% North America 10
Slide 11: Blue-chip customers by industry
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: Customer relationship length and revenue growth by client 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: Powered by a unique org design and culture
€ y +X S| Dall v Powered by a unique org design and culture
Slide 15: 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 16: M&A: 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 16
Slide 17: Social and sustainability 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 17
Slide 18: Earnings Call: Preliminary results
Its inary resu m ‘Preli
Slide 19: Highlights FY 2022 prelims
Highlights FY 2022 prelims • Revenue growth momentum sustained, even in the • €856 million uncertain economic environment revenue • 56.8% YoY • Wage inflation and attrition reverted towards pre-Covid revenue growth levels in some large service regions • 48.0% YoY constant currency revenue growth • D
Slide 20: Q4 2022 Highlights and Milestones
Highlights Milestones • Better than anticipated revenue (€231m) and margins (28.9% • 42.6% YoY gross margin, 13.2% adj. EBITDA margin) in what is often a revenue growth weak quarter due to holidays and accumulated leaves • 33.4% YoY constant currency revenue growth • Wage inflation and attrition ret
Slide 21: Revenue by region Q4 2021 vs Q4 2022
Q4 ’21 Q4 ’22 Q4 ’21 Q4 ’22 Q4 ’21 Q4 ’22 Q4 ’21 Q4 ’22 North America Central Europe Rest of Europe Rest of World 21
Slide 22: Net leverage and cash flow
Net leverage 1.7x 2.1x 1.1x Total cash flow -8.8 9.2 Net liabilities 130.0 166.0 162.2 Lease liabilities Net cash flow from operating activities Financial liabilities Net cash flow from investing activities Cash Net cash flow from financing activities 22
Slide 23: 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
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