Slide 1: Sword FY2017 Presentation
SWORD UPGRADE YOUR BUSINESS FY2017 PRESENTATION
Slide 2: Sword Group
SWORD GROUP Sword Group - March 18 2
Slide 3: At a Glance
AT A GLANCE IDENTITY FY2017 Successful, growing, financially secure and listed Consolidated Performance Software 28.4% International 1,000+ customers 2 offshore €173.5 M IT Services Group founded in over 50 countries support centres €27.8 M (16.0%) 71.6% in 2000 EBITDA FY2017 FY2017 Consolidated Rev
Slide 4: Organisation
ORGANISATION MANAGING DIRECTORS Tony Allen Dave Bruce Philippe Le Calvé Jacques Mottard Dieter Rogiers Nick Scully </> </> </> </> AFS UK INDIA FRANCE IP SWITZERLAND MIDDLE EAST BELUX RISK GREECE COMPLIANCE GROUP CFOs Laurence Blanc Services + Consolidated Frédéric Goosse Group CFO Becky Marsland So
Slide 5: Group's Offer: Software & IT Services
GROUP’S OFFER Software & IT Services INVESTIGATION SEARCH PORTAL GRC INFORMATION IP SECURITY AFS CS NLP ML CRM GIS DATA Sword Group - March 18 5
Slide 6: IT Services
1,417 FTE Staff 2017 €124.3 M Consolidated Revenue IT SERVICES €144.6 M Consolidated Revenue +14.2% Organic Growth at constant 2018 perimeter and constant exchange rates 10.2% EBITDA Margin Sword Group - March 18 6
Slide 7: France
FRANCE Sword Group - March 18 7
Slide 8: At a Glance: France
INVESTIGATION AT A GLANCE SEARCH PORTAL GRC INFORMATION SECURITY IP AFS CRM NLP CS ML GIS IDENTITY KEY CLIENTS DATA The Prime Minister Cabinet linked to the Senate, Société Générale, Sanofi, Engie, EDF, Interpol, Channel, CNP Assurances, Total, Ile-de-France Mobilités Based in Lyon, Paris Clients Re
Slide 9: Case Study: Consore Project
INVESTIGATION CASE STUDY SEARCH PORTAL GRC INFORMATION SECURITY IP AFS Challenges CRM NLP CS ML GIS Consore Project: facilitates the creation of cohorts in order to conduct clinical trials DATA Manage unstructured and structured data from several sources Example: Find patients with “un cancer
Slide 10: UK – India Services
UK – INDIA Services Sword Group - March 18 10
Slide 11: At a Glance: UK-India
INVESTIGATION AT A GLANCE SEARCH PORTAL GRC INFORMATION SECURITY IP AFS CRM NLP CS ML GIS IDENTITY KEY CLIENTS DATA Based in Aberdeen, Clients Energy, Public & Chennai, London and Multinational Commercial Edinburgh organisations Sectors FY2018 OUR STRENGTH Budget €36.6 M • Domain expertise in target
Slide 12: Case Study: Oil and Gas Operator Technology Portfolio
INVESTIGATION CASE STUDY SEARCH PORTAL GRC INFORMATION SECURITY IP AFS Challenges CRM NLP CS ML GIS Design, implement and support a complete technology portfolio for new Oil and Gas DATA Operator from scratch within a 10 month period Enable the transition of all business systems from BP to Seric
Slide 13: Belux-Greece
BELUX-GREECE Sword Group - March 18 13
Slide 14: At a Glance: Belux-Greece
INVESTIGATION AT A GLANCE SEARCH PORTAL GRC INFORMATION SECURITY IP AFS CRM NLP CS ML GIS IDENTITY OUR STRENGTH: DATA • Expertise @ European Institutions (& EI procedures) • Multi-year & Multi-Euro Framework Contracts 320 Consultants Clients: European +€135 M Backlog • Very important Backlog based i
Slide 15: Some Key Figures
INVESTIGATION SOME KEY FIGURES SEARCH PORTAL GRC INFORMATION SECURITY IP AFS CRM NLP CS ML GIS DATA Key Clients : > 35 European Organisations European Commission (e.g. DG Taxud, Eurostat, DG Justice, …), European Parliament, European Agencies Fast growing business > +28 % per year / 3 last years
Slide 16: Switzerland
SWITZERLAND Sword Group - March 18 16
Slide 17: At a Glance: Switzerland
INVESTIGATION AT A GLANCE SEARCH PORTAL GRC INFORMATION SECURITY IP AFS CRM NLP CS ML GIS IDENTITY KEY CLIENTS DATA Sport: UEFA, CIO Luxury: Rolex, Richemont Based in Geneva, International institutions: CICR, WIPO, … Prestigious Certifications Lausanne and Nyon Clients FY2018 OUR STRENGTH Budget €27
Slide 18: Case Study: Red Cross
INVESTIGATION CASE STUDY SEARCH PORTAL GRC INFORMATION SECURITY IP AFS Challenges CRM NLP CS ML GIS Assist Red Cross local teams across the globe in planning actions, drafting situation DATA analysis and define general objectives Guide decision makers in the management of their operations Enab
Slide 19: Middle East
MIDDLE EAST Sword Group - March 18 19
Slide 20: At a Glance: Middle East
INVESTIGATION AT A GLANCE SEARCH PORTAL GRC INFORMATION SECURITY IP AFS CRM NLP CS ML GIS IDENTITY KEY CLIENTS DATA Gulf Bank of Kuwait, Al Ahli Bank of Kuwait, AXA Middle East, Beirut NextCare-Allianz, Beirut Orange Jordan Based in Dubai, Clients New partnership Beirut Banks, Telco in Saoudi Arabia
Slide 21: Case Study: Orange Jordan Business Intelligence
INVESTIGATION CASE STUDY SEARCH PORTAL GRC INFORMATION SECURITY IP AFS Challenges CRM NLP CS ML GIS Orange Jordan needed to setup a brand-new Business Intelligence solution to address the business DATA needs for its Marketing, Finance and Sales departments so as to improve the quality of service f
Slide 22: Software
386 FTE Staff 2017 €49.2 M Consolidated Revenue SOFTWARE €53.7 M Consolidated Revenue +10.2% Organic Growth at constant 2018 perimeter and constant exchange rates 24.9% EBITDA Margin Sword Group - March 18 22
Slide 23: Asset Finance
ASSET FINANCE Sword Group - March 18 23
Slide 24: At a Glance: Asset Finance
INVESTIGATION AT A GLANCE SEARCH PORTAL GRC INFORMATION SECURITY IP AFS CRM NLP CS ML GIS IDENTITY KEY CLIENTS DATA Apak Based in Bristol, Clients Leader in Newbury, Atlanta, all over the world Commercial Paris, Dubai and Finance Melbourne FY2018 OUR STRENGTH Budget €34.0 M • Long-term, trusted part
Slide 25: Case Study: BMW Financial Services
INVESTIGATION CASE STUDY SEARCH PORTAL GRC INFORMATION SECURITY IP AFS Challenges CRM NLP CS ML GIS A company wide program to transform the BMW Financial Services business by DATA introducing common pan-European IT platforms Consolidation and modernization of systems across 25+ European countrie
Slide 26: GRC
GRC ‘Sword Group - March 18 ] 26
Slide 27: At a Glance: GRC
INVESTIGATION AT A GLANCE SEARCH PORTAL GRC INFORMATION SECURITY IP AFS CRM NLP CS ML GIS IDENTITY KEY CLIENTS DATA Airbus, Rolls Royce, BAE, MOD, US Air force, NASA, Bechtel, UK Intelligence Services and US and UK Nuclear Sites. Active Risk Based in & Achiever Maidenhead, 250 Clients Leaders in Ris
Slide 28: Case Study: US Department of State
INVESTIGATION CASE STUDY SEARCH PORTAL GRC INFORMATION SECURITY IP AFS Challenges CRM NLP CS ML GIS Nature of the Department DATA Reduce entry of illegal drugs into the US Minimize impact of International Crime in US Working outside US borders with $1bn budget Solutions Company Product Solut
Slide 29: Intellectual Property
INTELLECTUAL PROPERTY Sword Group - March 18 29
Slide 30: At a Glance: Intellectual Property
INVESTIGATION AT A GLANCE SEARCH PORTAL GRC INFORMATION SECURITY IP AFS CRM NLP CS ML GIS IDENTITY KEY CLIENTS DATA Intellectual Property Based in Paris, Clients Ascepto & Bogota, London, 40+ Countries Ptolemy Wellington FY2018 OUR STRENGTH Budget €6.3 M • Domain expertise in IP markets - e-Govt Con
Slide 31: Case Study: IP Integrated Registry Platform
INVESTIGATION CASE STUDY SEARCH PORTAL GRC INFORMATION SECURITY IP AFS Challenges CRM NLP CS ML GIS Provide an IP Integrated Registry Platform to any Worldwide Patent & DATA Trademarks Governmental Organizations & Offices Different IP domains & Legislation to cover Integration & interoperabili
Slide 32: Competition
COMPETITION Sword Group - March 18 32
Slide 33: Competition - IT Services
COMPETITION - IT SERVICES CRM NLP CS ML GIS SEARCH PORTAL SPECIALISTS AEROW EXAKIS AVANADE GPARTNER JOUVE AMEXIO KEYRUS SUBSTANCIAL ARX IT THE LOGILAB GDOC JOUVE MASAO START-UP & SSII MAGELLIUM SMILE SMILE SMILE SOLAN GENERALISTS THE ACCENTURE, ATOS, BULL, CAP GEMINI, CGI, IBM, INTRASOFT, ORANGE, SO
Slide 34: Competition - Software
COMPETITION - SOFTWARE AFS GRC IP CASSIOPAE SPECIALISTS CHP ACUMEN RISK EUROPEAN DYNAMICS DATASCAN BWISE THE JOUVE LINEDATA RESOLVER Local IT Companies NETSOL RISK DECISIONS TRADE VISION SHAW SYSTEMS XACTIUM WHITE CLARKE GROUP GENERALISTS THE CURA, DNV EASY RISK, IBM OPENPAGES, METRICSTREAM, PROTIVI
Slide 35: FY2017 Figures
FY2017 FIGURES Sword Group - March 18 35
Slide 36: FY2017 Key Figures
FY2017 KEY FIGURES +13.0% Organic Growth at constant perimeter and constant exchange rates €173.5 M Consolidated Revenue FY2017 16.0% EBITDA margin Sword Group - March 18 36
Slide 37: FY2017 Consolidated Breakdown
FY2017 CONSOLIDATED BREAKDOWN €M FY2017 Revenue EBITDA Margin (*) Asset Finance Solutions 31.1 30.4% Governance Risk & Compliance 12.2 29.2% Others 5.8 25.4% SOFTWARE 49.2 29.5% France 36.1 13.6% Belux 25.0 7.5% Switzerland 23.2 11.1% UK 26.4 7.6% Others 13.6 13.9% IT Services 124.3 10.7% TOTAL 173.
Slide 38: FY2017 PnL - 1
FY2017 PnL (*) - 1 - (*) with no amortisation 31/12/2017 €K % Revenue 173,489 - Current EBITDA 27,809 16.0 % Current EBIT 24,427 14.1% Non Current Costs 5,120 - Financial Costs 882 - Corporate Tax 5,019 - Net Profit after Corporate Tax 13,406 7.7 % (*) Amortisation: €2,168K Sword Group - March 18 38
Slide 39: FY2017 PnL - 2
FY2017 PnL - 2 - 2017 Non current costs €M US Bank 1.5 Kenzan 1.4 Acquisition 1.0 Other 1.2 Total 5.1 Sword Group - March 18 39
Slide 40: Net Cash Position - 1
NET CASH POSITION - 1 - 31/12/2017 Net Cash Position : €20.6 M 31/12/2016 Net Cash Position : €32.0 M Sword Group - March 18 40
Slide 41: Net Cash Position - 2
NET CASH POSITION - 2 - 2017 Non operational cash spending €M Dividends 11.5 Tangible & intangible investments 7.0 Minority share purchase 3.8 Acquisitions 3.8 Exchange rates fluctuation 1.5 Total 27.6 Sword Group - March 18 41
Slide 42: Top Ten Clients
TOP TEN CLIENTS Company Location Admiral UK The first ten clients represent 19.7% Germany / Ireland / UK / of the FY2017 Consolidated Revenue BMW South Africa ConocoPhillips UK The first client represents 4.4% DG TAXUD Belux of the FY2017 Consolidated Revenue European Parliament Belux Eurostat Belux
Slide 43: Backlog
BACKLOG [31/12/2017] Backlog: €390.9 M (24.3 months) [31/12/2016] Backlog: €367.0 M (25.6 months) Sword Group - March 18 43
Slide 44: 2017 Breakdown by Currency
2017 BREAKDOWN BY CURRENCY Currency % EUR 35.7% GBP 35.3% CHF 14.0% USD 7.2% Others 7.8% Sword Group - March 18 44
Slide 45: FY2017 Staff
FY2017 STAFF DBS FY2017 NDBS Total Employees Freelancers Total Software 319 69 388 48 436 IT Services 718 457 1,175 115 1,290 Offshore 144 128 272 10 282 Holding - - - 22 22 Total 1,181 654(i) 1,835 195 2,030 (ii) (i) 427 full time equivalent (FTE) staff (ii) 1,803 full time equivalent (FTE) staff (
Slide 46: Software R&D
SOFTWARE R&D R&D Existing R&D New Products: Products: 14.2% €3,738 K (capitalized in 2017) of the 2017 Revenue (non capitalized) €7,197 K cumulated Sword Group - March 18 46
Slide 47: Latest M&A Adjustments
LATEST M&A ADJUSTMENTS Acquisition of two small IT Services companies located in London in October 2017 2017 Revenue : €6.8M Acquisition of a small IT Services company located in Geneva in February 2018 2017 Revenue : €2.6M Sword Group - March 18 47
Slide 48: Dividends
Dividends 2018 Dividends: €1.2 Sword Group - March 18 48
Slide 49: Accounts
ACCOUNTS Sword Group - March 18 49
Slide 50: Balance Sheet - Extract
Balance Sheet - Extract (in €’000) 31 DECEMBER 2017 31 DECEMBER 2016 TOTAL CURRENT ASSETS 103.8 108.1 TOTAL NON-CURRENT ASSETS 120.4 121.8 TOTAL CURRENT LIABILITIES 60.7 60.9 TOTAL NON-CURRENT LIABILITIES 20.2 16.8 TOTAL EQUITY 143.3 152.2 Sword Group - March 18 50
Slide 51: Cash Flow - Extract
Cash Flow - Extract (in €’000) 31 DECEMBER 2017 31 DECEMBER 2016 NET CASH FLOWS FROM OPERATING ACTIVITIES 16.4 21.8 NET CASH FLOWS (ALLOCATED TO) / FROM INVESTMENT ACTIVITIES (20.8) (18.9) NET CASH FLOWS ALLOCATED TO FINANCING ACTIVITIES (2.0) (16.7) Net change in cash and cash equivalents (6.4) (13
Slide 52: Consolidated Balance Sheet - Assets
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2017- ASSETS 31 DECEMBER 31 DECEMBER (In €'000) 2017 2016 ASSETS NON-CURRENT ASSETS Goodwill 86,162 86,253 Other intangible assets 11,918 10,850 Property, Plant and Equipment 7,277 7,517 Investments in associates 2,852 2,644 Financial assets held for sale
Slide 53: Consolidated Balance Sheet - Liabilities
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2017 - LIABILITIES 31 DECEMBER 31 DECEMBER (In €'000) 2017 2016 EQUITY AND LIABILITIES EQUITY Share capital 9,545 9,545 Share premiums 70,676 70,676 Reserves 230 2,558 Retained earnings 58,668 64,372 TOTAL EQUITY - GROUP SHARE 139,119 147,151 Non-controll
Slide 54: Consolidated Income Statement 2017
CONSOLIDATED INCOME STATEMENT AS AT 31 DECEMBER 2017 (*) (*) with no amortisation 31 DECEMBER 31 DECEMBER (In €'000) 2017 2016 REVENUE 173,489 160,157 Purchases (6,966) (6,093) Personnel expenses (79,304) (74,354) Other external charges (58,378) (54,566) Provision (charges)/reversals (323) 105 Other
Slide 55: Consolidated Cash Flow Table 2017
CONSOLIDATED CASH FLOW TABLE AS AT 31 DECEMBER 2017 31 DECEMBER 31 DECEMBER (In €'000) 2017 2016 Cash flows from operating activities Profit for the period 11,238 10,816 Adjustments: Depreciation charges 5,358 5,367 Impairment losses on trade receivables 1,001 466 Other provision (charges)/reversals
Slide 56: Consolidated Cash Flow Table 2017 (cont.)
CONSOLIDATED CASH FLOW TABLE AS AT 31 DECEMBER 2017 (CONT.) 31 DECEMBER 31 DECEMBER (In €'000) 2017 2016 Cash flows from financing activities Income from the issue of ordinary shares - 2,106 Payment related to the repurchase and resale of ordinary shares 2,927 (2,734) Consideration received from non
Slide 57: FY2018 Figures
FY2018 FIGURES Sword Group - March 18 52
Slide 58: 2018 Budgeted Revenue Growth
2018 BUDGETED REVENUE GROWTH (i) 12%+ (i) At constant exchange rate and constant perimeter Sword Group - March 18 53
Slide 59: 2020 Figures
2020 FIGURES Sword Group - March 18 54
Slide 60: 2020 Objectives
2020 OBJECTIVES Initial Objectives (2020) (i) Reached to-date (2017) (i) Revenue €300 M €173.5 M EBITDA margin 14-15% 16% Software: 30% Software: 29% Revenue Breakdown per division IT Services: 70% IT Services: 71% International: 85% International: 79% Revenue Breakdown per area France: 15% France:
Slide 61: Agenda
AGENDA Sword Group - March 18 56
Slide 62: Agenda: Publications, Meetings & Events
AGENDA Publications 26.04.2018 26.07.2018 25.10.2018 24.01.2019 06.03.2019 Q12018 Q22018 Q32018 Q42018 FY2018 Results Results Results Results Results Meetings & Events 27.04.2018 05.09.2018 07.03.2019 29.04.2019 2017 Shareholders SFAF meeting SFAF meeting 2017 Shareholders meeting H12018 Results FY2
Slide 63: Follow Sword
FOLLOW SWORD sword-group.com @Sword_Group Sword Group @SwordtheGroup Sword Group - 2 rue d’Arlon L-8399 Windhof (Luxembourg) SE capital €9,544,965 - B168244