4iG Nyrt. · BET:4IG
4iG Nyrt — H1 2020 Earnings Presentation
24 slides from 4iG Nyrt's earnings presentation, Aug 28, 2020
Slide 1: Investor Presentation 2020 H1 Results
INVESTOR PRESENTATION 2020 H1 RESULTS 4iG Nyrt. 28th August 2020
Slide 2: 2020 H1 Key Highlights
2020 H1 KEY HIGHLIGHTS • 4iG now is the #2 IT system integrator in Hungary following its change of management • Up from #6 in 2018 • 2020 H1 was 4iG’s strongest ever first half year and we continued to show strong growth both on revenue and EBITDA levels • 20,2 bn HUF of revenue (a 38,9% increase on
Slide 3: 2020 H1 Major Post Balance Sheet Events
2020 H1 MAJOR POST BALANCE SHEET EVENTS • On 2nd July 2020, Gellért Jászai, Chairman and CEO of 4iG, through his asset management company, announced the acquisition of all the 4iG shares owned by Opus Global Nyrt. and Konzum Private Equity. Following the acquisition, the ownership control of Gellért
Slide 4: A Comprehensive Business Transformation
A COMPREHENSIVE BUSINESS TRANSFORMATION NEW • Gellért Jászai first became Chairman in July 2018 then CEO in March 2019 and finally the majority owner of 4iG with a 40,2% control in July 2019 OWNERSHIP • In July 2020, Mr. Jászai further increased his shareholding to over 61,8% in 4iG VISION AND • Our
Slide 5: Near Term Outlook
NEAR TERM OUTLOOK • Our goal is to become the #1 IT system integrator within the next two years • Expectations for 2020 are robust with revenue of 20,2 bn HUF for the six months to June 2020 and a contracted backlog of 20,8bn HUF for 2020 as of 14th Aug 2020 • We will continue to grow strongly but w
Slide 6: COVID19 Impacts
COVID19 IMPACTS ▪ 4iG responded to the pandemic situation proactively, consequently reverting back to the normal operations smoothly ▪ Delivery efficiency remained intact due to COVID19 tailored BCP, intensive process automation and scalable capacity trough 4iG’s outstanding partner network Operatio
Slide 7: Company Overview
COMPANY OVERVIEW
Slide 8: Company Snapshot
COMPANY SNAPSHOT Business Highlights Financial Highlights (HUF bn) • 4iG has proven to be flexible in order to fulfill our clients’ expectations in timing and resources. 40 • 4iG’s most important assets are the 400-500 technical 20.2 • employees (consultants and highly qualified engineers 20 14.5 an
Slide 9: Highly Diversified Business Model
HIGHLY DIVERSIFIED BUSINESS MODEL REVENUE BY SERVICE TYPE REVENUE BY INDUSTRY Education Trade, Commerce Implementation, other Manufacturing 0% Support, consulting 3% 5% 4% Other 6% 28% Consulting, Science, Legal Operation 5% 11% Transport, Warehousing HW sales 6% 51% Healthcare Development 6% IT, Co
Slide 10: Strategy Overview
STRATEGY OVERVIEW Vision and strategy • Our goal is to become the #1 IT system integrator in Hungary and a significant player in CEE region Target areas for growth • Technologies: AI, Blockchain, Cyber Security, Digitalization, Fintech, Industry 4.0 • Market Segments: Transportation, Banking, Health
Slide 11: Acquisition Plans
ACQUISITION PLANS Robust organic growth complemented by acquisitions • In Hungary ▪ Our goal is to consolidate our position ▪ Invest into new technologies and ▪ Enhance our capabilties in new sectors • In Central and Eastern Europe ▪ We are looking at opportunitistic targets in the CEE region • Acqu
Slide 12: Shareholder Information
SHAREHOLDER INFORMATION KEY SHAREHOLDERS(1) SHARE PRICE PERFORMANCE 1,400 Share Price Evolution (Ft) 1,200 KZF Freefloat Vagyonkezelő, 35% 1,000 Manhattan PE 62% 800 600 Market capitalization 400 as of 24-Aug-2020 Treasury 200 62 bn HUF Shares 3% 04-Jan-19 04-Mar-19 04-May-19 04-Jul-19 04-Sep-19 04-
Slide 13: Hungarian IT Market
HUNGARIAN IT MARKET HUNGARIAN IT MARKET EXPECTED TO GROW BY 2% ON AVERAGE, DRIVEN MAINLY BY PUBLIC SPENDING IT spending of end users by segments (bn HUF) Key Drivers Need for Digital transformation • Internet of Things (IoT) is used in the production, retail, utilities, agriculture and logistics, wh
Slide 14: Hungarian IT Market Landscape
HUNGARIAN IT MARKET LANDSCAPE FULL SCALE T-Systems 4iG SERVICE CAPABILITY Delta Unisys Asseco Invitech S&T EuroONE Symmetria Duna Elektronika Tigra 100+ Micro ICT companies NICHE 100 1000+ Note: Size of the bubble indicated 2019 estimated revenue Source: 4iG, public sources EMPLOYEE # 4IG OVERVIEW 1
Slide 15: 4iG Competence Map
4IG COMPETENCE MAP CUSTOMER BACK OFFICE INDUSTRY SPECIFIC SOLUTIONS PUBLIC DATA SECTOR CENTRE 1. 7x24h SLA based support-SSC and SOC HIGH AVAILABILITY IT SYSTEM Management: BUSINESS ADMINISTRATION Fund management: INDUSTRY 4.0 / IoT / AI / Machine Learning / Blockchain workforce (managed outsourcing
Slide 16: Financial Overview
FINANCIAL OVERVIEW
Slide 17: Revenue Evolution by Segments
REVENUE EVOLUTION BY SEGMENTS • HW sales: We have achieved higher growth in this segment, 2019H1 / 2020H1 (million HUF) however the growth was due to the increase in the Q1 performance. After companies had provided their employees for the remote work with the necessary devices and 10,410 infrastruct
Slide 18: 2020 H1 Revenue Bridge
2020 H1 REVENUE BRIDGE NET REVENUES BRIDGE NET REVENUES BUILD-UP HUF m HUF m 45,000 +39% 41,129 2019 2020 40,000 35,000 30,000 24,973 25,000 20,190 20,000 14,539 15,000 10,000 8,623 4,850 5,000 0 Q1 H1 Q3 FY (1) Other revenue includes Support and Consulting, Implementation and Other Services 4iG OVE
Slide 19: 2020 H1 EBITDA Bridge
2020 H1 EBITDA BRIDGE EBITDA BRIDGE EBITDA BUILD-UP HUF m +35% HUF m 4,500 2019 2020 4,075 4,000 3,500 3,000 2,484 2,500 2,000 1,500 1,360 1,009 1,000 483 578 500 0 Q1 H1 Q3 Y 4iG OVERVIEW 19
Slide 20: 2020 H1 P&L Overview
2020 H1 P&L OVERVIEW 2020 H1 4iG Nyrt ➢ 2020 Q1 revenue growth of 4iG's strategic 2019 H1 % 2020 H1 % vs 2019 (HUF M) H1 services in Outsourcing and Development Net Revenues 14,539 99% 20,190 100% 139% have been further increased in Q2 which Other operating income 148 1% 98 0% 66% represent a solid
Slide 21: 2020 H1 Balance Sheet Summary
2020 H1 BALANCE SHEET SUMMARY NET DEBT/(-CASH) (1) WORKING CAPITAL (2) HUF m HUF m 2,500 500 1,923 4 2,000 0 1,534 1,500 -500 1,000 -1,000 500 0 -1,500 -1,273 2019 H1 2020 H1 2019 H1 2020 H1 Note (1): Net debt icludes Provisions, Financial leasing IFRS 16, without Guarantees and Securities Note (2):
Slide 22: Disclaimer
DISCLAIMER THIS PRESENTATION WAS MADE BY 4iG PLC (HEADQUARTERS: 1037 BUDAPEST, MONTEVIDEO U. 8). THE PRESENTATION SHALL CONTAIN ONLY FACTUAL INFORMATION AND REASONABLY DRAWN CONCLUSIONS VIA REASONABLE CALCULATIONS, FORMALLY PUBLISHED BY THOSE WHO ARE ENTITLED FOR THIS, IN ACCORDANCE WITH THE RELEVAN
Slide 23: We provide solutions and create value for the complete IT life cycle
We provide solutions and create value for the complete IT life cycle, supporting your business 24x7.
Slide 24: Contact details
H-1037 Budapest, Montevideo u. 8. Tel: +36 1 270 7600 Fax: +36 1 270 7679 www.4ig.hu