Sitowise Group Oyj · OMXHEX:SITOWS
Sitowise Group Oyj — Investor Day (November 2023)
23 slides from Sitowise Group Oyj's investor day presentation, Nov 23, 2023
Slide 1: Redefining smartness in cities
Redefining smartness in cities Sitowise investor presentation ABGSC investor days, 23 November 2023 H E I K KI H A A S M A A , C E O
Slide 2: Nordic expert in technical consulting with a strong focus on digitality
Nordic expert in technical consulting with a strong focus on digitality Four established Board and diverse Local presence with Business Areas client base over 2,200 experts Net sales by Business Area Net sales by client category 19% 25% 29% 35% 15% 17% 16% 32% 13% Buildings Municipalities Infra Cons
Slide 3: Company history and milestones
SITO Oy Entry to Successful established established Sweden IPO in Nasdaq 1976 Helsinki 2017 2018 2019 2020 2021 2022 2023 1984 2010 Over 200M€ net Wise Group Digital Solutions Comprehensive sales and industry established expansion service offering leading profitability Insinööritoimisto Ylimäki & Ti
Slide 4: Comprehensive services for the development of the built environment and natural assets
Comprehensive services for the development of the built environment and natural assets Buildings Infrastructure Digital Solutions Sweden • A leading player in • A leading player in Finland • Nordic excellence in • A competent challenger Finland with extensive with steady growth and geospatial soluti
Slide 5: We have steady growth profile
We have steady growth profile… NET SALES EUR 204.4 million Strong track record of …with industry leading net sales growth… profitability ADJ. EBITA-% +13% 12.9% 10.0% 216 11.8% 204 11.5% 179 10.8% 10.0% 160 9.2% 143 126 OVER 21 21 20 20 2,200 experts 15 16 2018 2019 2020 2021 2022 LTM 2018 2019 2020
Slide 6: We are the most efficient company in our industry
…and we are the most efficient company in our industry Avg. EBITA margin (adj.) 2018-2022 Sitowise’s long-term financial target 13% 15% Sitowise revenue Sitowise CAGR 2018-2022 Peer 7 10% Peer 1 Peer 2 5% Peer 6 Peer 4 Peer 5 11.4% Peer 3 Sitowise adj. EBITA margin 0% Avg. 2018-2022 -10% -5% 0% 5% 1
Slide 7: We strive to provide the best value for our clients
We strive to provide the best value for our clients We master the We help clients to We help clients to basics and succeed and reach differentiate and are close to the their objectives build innovative customer solutions Expertise Would re-select Sitowise is a Sitowise pioneer 4.3/5 97% 53% NPS 32 7
Slide 8: Megatrends continue to drive demand for technical consulting
Megatrends continue to drive demand for technical consulting URBANISATION MAINTENANCE DIGITALISATION CLIMATE CHANGE SECURITY BACKLOG Urbanisation will increase The maintenance backlog of Digitalization Climate change will force the demand for new buildings and infrastructure grows the demand for cit
Slide 9: Recent financial performance
Recent financial performance 9
Slide 10: Strong performance in Infra and Digi continued in Q3
Q3 Strong performance in Infra and Digi continued in Q3 Net sales per business area, figures in EUR million -13% +7% 21.1 +9% in constant currency 19.9 19.1 18.2 17.8 16.7 -5% 15.8 15.8 14.5 13.3 +24% 12.3 12.4 11.9 9.0 8.6 7.4 8.0 7.7 6.7 5.4 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2
Slide 11: Headwinds in Buildings and Sweden burdening profitability in Q3
Q3 Headwinds in Buildings and Sweden burdening profitability in Q3 Net sales at the level of the Adjusted EBITA margin Order book at good level comparison period burdened by Buildings and EUR million Sweden -5% -1% 181 172 175 176 175 169 167 162 6.6 58 56 56 51 49 52 5.6 5.3 46 46 5.2 4.9 4.9 4.5 3
Slide 12: Seasonally weak cashflow in Q3 – Leverage typically declines towards year-end
Q3 Seasonally weak cashflow in Q3 further pressed by lower profitability – Leverage typically declines towards year-end Cash flow from Net debt Leverage operating activities EUR million Net debt / Adjusted EBITDA multiple Before financial items and taxes, EUR million 62.9 62.2 2.9x 2.9x 58.3 2.7x 56
Slide 13: Healthy growth and profitability improvement in January–September
Healthy growth and profitability improvement in January–September EUR million Q3 2023 Q3 2022 Change 1-9 2023 1-9 2022 Change 2022 JAN-SEP Net sales 45,6 45,9 -0,7 % 158,1 146,8 7,7 % 204,4 NET SALES EBITA, adjusted % of net sales 3,5 7,6 % 4,9 10,7 % -29,5 % 14,6 9,2 % 15,1 10,3 % -3,1 % 20,4 10,0
Slide 14: Guidance and outlook
Maintaining Recent financial Guidance and outlook industry performance leading profitability 14
Slide 15: Sitowise strategy 2025
Sitowise strategy 2025 a4Ae We tes 21012PUdI") one We understand our clients The most innovative Weworkas ay a oneteam *of % gs OUR PURPOSE >» a) We trust . > each other Em powering pice The most ' passionate experts a sustainable ' Wests =A to solve complex challenges. ht ey NEP of i ae
Slide 16: We will focus on
Focus areas We will focus on › Creating new Accelerating growth Expanding digital 1 smart services 2 in Sweden 3 solutions business We look innovatively into the future We have profitable and faster than We aim at Nordic excellence in and create new services with market growth in Sweden and create g
Slide 17: M&A principles give focus in target pipeline management
M&A principles give focus in target Way of working in acquisitions pipeline management Co-operation between the 1 Alignment with Sitowise strategy business and group experts 2 Conservative valuation, Attractive financial profile payment consisting of cash and own shares 3 Good cultural fit Relativel
Slide 18: Long-term financial targets
Long-term financial targets Growth Profitability Leverage Annual net sales growth, Adjusted EBITA margin of at Net debt in relation to adjusted EBITDA including acquisitions, over least should not exceed 10% 12% 2.5x except temporarily in conjunction with acquisitions Dividend policy Sitowise target
Slide 19: Additional targets supported by the ongoing strategic initiatives
Additional targets supported by the ongoing strategic initiatives • to grow our • to double our recurring revenue sustainability to be 10% services revenue of Sitowise’s annual net sales to exceed 10 million euros by the end of 2025 by the end 2025 19
Slide 20: Margin increase driven by growth in attractive sub-segments and operational efficiencies
Margin increase driven by growth in attractive sub-segments and further operational efficiencies Operational efficiencies M&A • Sales excellence Organic • Smartest ways to work growth • Cost efficiency • M&A aligned with our • Value from data ≥12% strategic priorities • Focus on accelerating 9.9% •
Slide 21: Well diversified portfolio helps driving profitable growth in changing market
Well diversified portfolio helps driving profitable growth in changing market Growth Targeted outlook margin level Key drivers 2022-2025 2025 • Rebound in new build volumes • Energy repairs and renovation backlog Buildings • Increasing demand for special expertise and smart services Sustainable grow
Slide 22: Summary
Summary 1 Awith leading player in a growing technical consulting market clear strategic targets and implementation plans 2 Broad technical consulting service offering with unique opportunities to combine capabilities in different business areas 3 Broad customer base that provides a solid platform fo
Slide 23: Thank you!
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