Softwareone Holding Ltd. · SIX:SWON
Softwareone — H1 2021 Earnings Presentation
35 slides from Softwareone's earnings presentation, Aug 26, 2021
Slide 1: H1 2021 Results Presentation
Softwa reONE EMPOWERING COMPANIES TRANSFORM H1 2021 Results Presentation 26 August 2021 softwareONE
Slide 2: Disclaimer
DISCLAIMER Forward-looking statements This presentation may contain certain forward-looking statements relating to SoftwareONE Holding AG (the ‘Company’) and each of its subsidiaries and affiliates (jointly referred to as ‘SoftwareONE' or the ‘group’) and its future business, development and economi
Slide 3: Agenda
AGENDA O1 H12021 summary results O2 Business update O03 Financial performance O04 Outlook O5 Q8A softwareONE a
Slide 4: H1 2021 Summary Results
H1 2021 SUMMARY RESULTS ‘ 4 Dieter Schlosser, CEO | softwareONE
Slide 5: Key Take-Aways
KEY TAKE-AWAYS va \I Return to a solid level of growth in H1 2021 during a year marked by strategic investments (2 Focus on overall growth with customers based on digitizing Software & Cloud and an expanding portfolio of IP- Ne based solutions and services, all digitally enabled via our PyraCloud pl
Slide 6: H1 2021 Key Highlights
H1 2021 KEY HIGHLIGHTS RETURN TO A SOLID LEVEL OF GROWTH IN A YEAR MARKED BY STRATEGIC INVESTMENTS Fi 8 @ cHE 414m +53.40 ~35% >100~ 6 412.3%) Solutions & Solutions & Comparex cost Acte|uisiternis Gross profit Services Services synergies achieved announced CHE 109m Gross profit as % of Adj. EBITDA g
Slide 7: Gross Profit Growth Accelerates to 12.3% YoY CCY
GROSS PROFIT GROWTH ACCELERATES TO 12.3% YOY CCY SOLUTIONS & SERVICES ACCELERATES TO 53.4% YOY IN CCY DRIVEN BY CUSTOMERS’ CONTINUED PRIORITIZATION OF CLOUD-FIRST DIGITAL TRANSFORMATION Group gross profit Gross profit growth in Solutions & Services CHFm +12.3% ccyl) re 414 370.8 3588 +53.4% YoY ccy)
Slide 8: Strong Performance Across Key Markets
STRONG PERFORMANCE ACROSS KEY MARKETS CERTAIN REGIONS STILL IMPACTED BY COVID-19, PARTICULARLY LATAM; SIGNIFICATION ACCELERATION IN NORAM AND DACH NORAM H1 2021 Gross profit EMEA CH rF6Om H1 2021 Gross profit APAC *1LS% Yan cHF262m H1 2021 Gross profit +8.29 maiiatd cHF5 1m DACH +25.1% YoY ——__LATAM
Slide 9: Digitization of Software & Cloud with Expanded Services Portfolio
DIGITIZATION OF SOFTWARE & CLOUD WITH EXPANDED SERVICES PORTFOLIO TO DELIVER CUSTOMER VALUE, DIGITALLY-ENABLED BY PYRACLOUD Continue to grow and ize Software & Cloud Digitizing Software & Cloud with SoftwareONE Marketplace and Digital Supply Chain >60% customers activated and 105% YoY increase in us
Slide 10: Business Update
BUSINESS UPDATE Alex Alexandrov, COO softwareONE
Slide 11: Increasing Importance and Complexity of Technology Driving Growth
INCREASING IMPORTANCE AND COMPLEXITY OF TECHNOLOGY DRIVING GROWTH LARGE MARKETS GROWING DOUBLE-DIGIT important Increased complexity softwareQNE — Need for a trusted advisor softwareONE Technology seen as a key differentiator and increasingly core to corporates’ business models Increasing technology
Slide 12: Portfolio Supporting End-to-End Customers' Digital Transformation
PORTFOLIO SUPPORTING END-TO-END CUSTOMERS’ DIGITAL TRANSFORMATION VALUE PROPOSITION BASED ON COMBINING SOFTWARE WITH SERVICES TO DRIVE RECURRING CUSTOMER RELATIONSHIPS DIGITAL TRANSFORMATION enn EEEEESS >| Innovate business models Improve customer experience Optimize operational processes Empower em
Slide 13: Performance Across Business Lines
PERFORMANCE ACROSS BUSINESS LINES FOCUS ON OVERALL GROWTH WITH CUSTOMERS ACROSS BOTH BUSINESS LINES SOFTWARE & CLOUD SOLUTIONS & SERVICES 35% 412021 CHF267.6m CHF146.7m 6 GROSS PROFIT / GROWTH (2.1)% voy ccy 65% +53.4% YOY CCY Billings growth in line with overall Microsoft market * Gross profit grow
Slide 14: Digitizing Software & Cloud, IP-Enabling Solutions & Services
DIGITIZING SOFTWARE & CLOUD, IP-ENABLING SOLUTIONS & SERVICES | | an | Bn on an 8B an BEE BEB TT TT tty fe | SoftwareONE MARKETPLACE E-commerce space for buying, selling & managing software, services and solutions SoftwareONE INSIGHTS softwareONE SoftwareONE DIGITAL Fully digitized customer engageme
Slide 15: Solutions & Services Portfolio Delivering Customer Value
SOLUTIONS & SERVICES PORTFOLIO DELIVERING CUSTOMER VALUE PROFESSIONAL SERVICES p G STRATEGIC GROWTH AREAS softwareONE —_~“ Publisher Services Advisory (Microsoft & Multi-Vendor) Consulting & Integration G. H1 2021 Gross profit" 415% voy Cloud Advisory Future Workplace Advisory Security Advisory Mana
Slide 16: Strategic Growth Areas Capitalizing on Market Opportunities
STRATEGIC GROWTH AREAS CAPITALIZING ON MARKET OPPORTUNITIES STRONG OUTLOOK EXPECTED TO DRIVE SCALE AND PROFITABILITY Strategic growth areas (2) Application Services onee-d (@) SAP on Cloud -----> (@) Hyperscaler Factory -----> vw (8%) Industry Vertical Solutions (AEC) -----> a) Managed FinOps - soft
Slide 17: Financial Performance
FINANCIAL PERFORMANCE r, CFO ONE 7
Slide 18: H1 2021 Profit & Loss Summary
H1 2021 PROFIT & LOSS SUMMARY P&L summary IFRS reported Adjusted") P2020 | 207112020 | 2021 | Aatccye_| Revenue from Software & Cloud 3,941.2 4170.2 3,941.2 4170.2 6.5% Cost of software purchased (3.6665) (902.5) (3.6665) (902.5) 2 Gross profit from Software & Cloud 274.6 267.6 274.6 267.6 (2.1% Rev
Slide 19: Adjusted Profit Bridge
ADJUSTED PROFIT BRIDGE + Adjustments: IFRS reported to adjusted profit bridge ated) Frnz020 | H12021 | * Share-based compensation” CHF inless otherwise IFRS reported profit for the period 66.7 38.3 + Integration expenses Share-based compensation() 124 78 + [PO expenses Integration expenses 45 31 IPO
Slide 20: Profitability Impacted by Strategic Investments
PROFITABILITY IMPACTED BY STRATEGIC INVESTMENTS FRONT-LOADED INVESTMENTS IN STRATEGIC GROWTH AREAS AND SALES & MARKETING AND DELIVERY CAPABILITIES Adj. EBITDA bridge CHFm (9.6) (13.9) (24) EBITDA H12020 Software Solutions Gross profit OPEX Sales Global Other & Cloud & Services &Marketing & Local Del
Slide 21: Cash Flow Driven by Seasonality and Business Growth
CASH FLOW DRIVEN BY SEASONALITY AND BUSINESS GROWTH CONTINUED UNDERLYING IMPROVEMENTS IN NET WORKING CAPITAL DURING H1 2021 Capital expenditure” Change in net working capital (NWC) Cash flow from operating activities CHFm 108 121 14.3 ml H1 2020 H2 2020 H1 2021 % of Gross profit * Primarily investme
Slide 22: Strong Balance Sheet for Accelerated Growth
STRONG BALANCE SHEET FOR ACCELERATED GROWTH EXCELLENT BASIS FOR FURTHER ACQUISITIONS Net debt/(cash)) Net working capital") CHFm, at period end =z (59.4) (173.4) (169.6) (366.2) CHFm, at period end (496.5) H1 2020 H2 2020 H1 2021 H1 2020 H2 2020 -- Indicative level excluding vendors’ deferred paymen
Slide 23: Outlook
OUTLOOK ieter Schlosser, CEO softwareONE SINS
Slide 24: Full-Year 2021 Guidance and Mid-Term Targets
FULL-YEAR 2021 GUIDANCE AND MID-TERM TARGETS RE-ITERATED BASED ON NO MATERIAL DETERIORATION IN THE ENVIRONMENT DUE TO COVID-19 2021 guidance Key assumptions to FY2021 guidance Mid-term guidance + Above 10% growth in ccy, excluding Further acceleration in gross profit growth in H2 2021 driven by: Gro
Slide 25: 2021 Capital Markets Day
2021 CAPITAL MARKETS DAY SoftwareONE will host a virtual Capital Markets Day for investors, analysts and media on Wednesday, 20 October 2021 at 14:00 CEST. During the event, CEO Dieter Schlosser and other members of the Executive Board will provide insights into our growth strategy, business lines a
Slide 26: Q&A
Slide 27: Thank You!
Slide 28: Appendix
Slide 29: Total customer purchasing volume
Total customer purchasing volume ONE 10) Based on FY2020 Total customer purchasing volume Total revenue (IFRS) Gross profit (Non-IFRS) 29
Slide 30: Profit and Loss Statement
PROFIT AND LOSS STATEMENT Revenue from Software & Cloud 3,941.2 4,170.2 3,941.2 4,170.2 Revenue from Solutions & Services 145.9 196.3 145.9 196.3 Total revenue 4,087.1 4366.5 4,087.1 4366.5 Cost of software purchased (3,666.5) (3,902.5) (3,666.5) (8,902.5) Third-party service delivery costs (49.8) (
Slide 31: Balance Sheet
BALANCE SHEET Cash and cash equivalents 540.4 2763 Trade payables 1,781.4 1,865.5 Trade receivables 1,894.8 1,934.8 Other payables 206.6 192.6 Income tax receivables 87 ns Accrued expenses and contract liabilities 268.7 1493 Other receivables 80.2 828 Derivative financial instruments 38 16 Derivativ
Slide 32: Cash Flow Statement
CASH FLOW STATEMENT Profit for the period 66.7 Proceeds from financial liabilities 376.8 1340.9 Depreciation, amortization & impairment 29.7 27.2 Repayments of financial liabilities (262.8) (1,371.2) Total finance result, net (11.2) 9.6 Payment of contingent consideration liabilities (1.6) (0.7) Sha
Slide 33: Working Capital Reconciliation
WORKING CAPITAL RECONCILIATION Net working capital Trade receivables 1,894.8 1,934.8 Other receivables 802 828 Prepayments and contract assets 1083 130.4 Trade payables (1.7814) (1.8655) Other payables (206.6) (192.6) Accrued expenses and contract liabilities (268.7) (149.3) NWC (after factoring) (1
Slide 34: Net Debt Reconciliation
NET DEBT RECONCILIATION Net debt/(cash) fcurmaspersomne ds rz020 ]taom | Bank overdrafts 151.9 43 Other current financial liabilities 10.2 446 Current contingent consideration liabilities 21 18 Other non-current financial liabilities 474 53 Non-current contingent consideration liabilities 5.0 76 Lea
Slide 35: FX Exposure
FX EXPOSURE Gross profit by currency") Operating expenses by currency") Other; 22.7% EUR; 38.8% INR; 1.9% MXN; 1.5% EEE a. GBP; 4.3% CHF; 12.4% USD; 16.0% softwareONE (1) Based on H1 2021 management accounts Other; 24.9% EUR; 38.0% INR; 4.1% 7 MXN; 2.2% BRL; 2.5% GBP; 5.9% CHF; 9.5% USD; 13.0% 35