B3 Consulting Group Ab · OMXSTO:B3
B3 Consulting Group Ab — Q4 2024 Earnings Presentation
23 slides from B3 Consulting Group Ab's earnings presentation, Feb 18, 2025
Slide 1: B3 Consulting Group Q4 presentation 2024
Slide 2: Martin Stenström and Katarina Lundqvist
Martin Stenström Katarina Lundqvist CEO B3 Consulting Group Head of Communications & IR 2
Slide 3: B3's vision and values
B3’s vision and values We aim to be Sweden’s best consulting company B3’s vision Experiences The fact that zebra stripes Is to be Sweden's best Competence and continuous have gradually become part of consulting company - for our learning are important for B3's culture has a clear employees, clients,
Slide 4: Q4 2024
Slide 5: Highlights FY 2024
Highlights FY 2024 A challenging year, preparing for better times • Revenue 1 129.3 (1 140.8) MSEK, -1.0% growth and -5.7% organic • EBITDA 57.5 (107.3) MSEK, EBITDA margin 5.1 (9.4)% o One-off related to Webstep, Polish transaction and other accumulates to 17,4 MSEK. Adjusted EBITDA 6,6% • Profit a
Slide 6: Highlights in Q4 2024
Highlights in Q4 2024 Continued growth in the quarter – restructuring costs for future efficiency • Revenue 336.2 (293.6) MSEK, 14.5% growth and organic growth 4.4% • EBITDA 17.8 (18.6) MSEK, EBITDA margin 5.3% (6.3%) • Profit after tax -1.0 (8.4) MSEK, Earnings per share after dilution -0.34 (0.99)
Slide 7: Financial overview Q4 2024 – Group
Financial overview Q4 2024 – Group A weak year ends with 14.5% growth (4.4% organic) in Q4 Q4 Jan-Dec Extract of B3's key figures 2024 2023 Δ% 2024 2023 Δ% Net Sales, SEK million 336,2 293,6 14,5% 1 129,3 1 140,8 -1,0% EBITDA, SEK million 17,8 18,6 -4,3% 57,5 107,3 -46,4% EBITDA margin, % 5,3% 6,3%
Slide 8: Webstep
Webstep The integration of Webstep is proceeding according to plan • The integration has continued to be successful, with positive effects observed in several areas of the business. • Three new companies have been formed: B3 Link, B3 Beyond, and B3 Engage, strengthening our offerings and creating ne
Slide 9: B3 acquires Habberstad AS
B3 acquires Habberstad AS It’s time to enter the Norwegian market • B3 have signed a deal to acquire 51% of the shares in Habberstad AS, a Norwegian consulting company within digital transformation with around 40 employees. • The purchase price amounts to 15.8 MNOK for the 51%. Revenue and EBIT in 2
Slide 10: Revenue breakdown
Revenue breakdown Positive impact on revenue due to Webstep and Poland 14.5% 336 • The negative impact of the reduced number of FTEs will gradually start 30 to turn around in 2025. 294 47 40 10 4 5 5 1 Net Sales FTE Hourly Product/ Sub- Working Utilization Organic M&A Net Sales Q4 2023 rates License
Slide 11: Utilization rate
Utilization rate Q4 is the first quarter with and q/q and y/y increase, still not good enough • The gap in QoQ* now increasing for the 87,8% first time in 9 quarters 86,7% 85,5%* • Q4 utilization ex. Poland at 82.7% +1,8% • Utilization rate still not good enough 82,7% 82,7% 81,2% 80,3% 79,1%* 78,4%
Slide 12: B3 operates across multiple markets
B3 operates across multiple markets The differences in performance remain significant 20 • Several subsidiaries are facing significant challenges 15 • We are implementing actions to quickly improve • Slow market in Sweden makes growth challenging 10 EBITDA% 5 4 of our companies (approx. 12% of 0 B3C
Slide 13: Cost saving program spot on
Cost saving program spot on The program ends after one year, transitioning the project into daily improvements. 40 41 38 • Moving according to plan • 41 MSEK Cost savings excl. 31 one-off costs from 32 33 acquisitions. 24 29 • Focus on sales and revenue 24 17 • Continued optimization in 13 17 subsid
Slide 14: New assignments and extended contracts
New assignments and extended contracts B3 gains new business and strengthens its positions with several existing clients. • Expanded collaboration agreement – Swedish Public Employment Service (Arbetsförmedlingen). • New large-scale assignments – Two of Sweden’s largest government agencies. • Contin
Slide 15: Other important events in Q4
Other important events in Q4 86% Employee satisfaction and B3 establishes in Västerås • B3 presents the 2024 employee survey: 86% satisfaction and eNPS 45. • B3 Next is launched and B3 expands to Västerås. • B3 Link emerges from former Webstep. • B3 deepens its IBM collaboration, joining IBM CREATE
Slide 16: Summary
Summary A challenging year ended with Q4 revenue growth at 14.5% and organic 4.4% • The Swedish market stayed pretty poor for the whole year • EBITDA and EBIT levels have been unacceptably low • HQ cost saving delivered on target. More is needed on management costs in some subsidiaries • Continued i
Slide 17: Q&A
Q&A
Slide 18: APPENDIX
APPENDIX
Slide 19: Market Outlook
Market Outlook The market is predicted to recover • B3 operates in many markets and industries through its 25 subsidiaries • The market has been weak for a long time, but analysts indicate that the market is starting to recover. • The Polish market outlook has already turn to the better • Generative
Slide 20: Revenue and profit
Q1 247,8 20 Q2 218,6 2020 Q3 163,5 Q4 221,5 851 Q1 227,8 Q2 233,5 2021 Q3 189,0 Q4 271,6 922 Q1 290,5 Q2 289,5 2022 Q3 235,8 Q4 332,3 1 148 Q1 324,6 Q2 299,3 2023 Q3 223,3 Q4 293,6 1 141 Q1 281,3 Revenue MSEK per quarter and R12 Q2 266,4 Revenue and profit 2024 Q3 245,4 1 129 Q4 336,2 Development ov
Slide 21: Distribution across different industries
Distribution across different industries B3 operates in several interesting industries driven by digitalization Revenue share per industry Jan-Dec 2024 Banking, finance, insurance 18% (20%) (Jan-Dec 2023) Industry 15% (15%) Government agencies, municipalities 16% (13%) Care 12% (12%) IT, media, ente
Slide 22: Share per Business Area
Share per Business Area Revenue evenly distributed across the business areas - negative profit development in BA DES Revenue, share per business area EBIT, share per business area Jan-Dec 2024 (Jan-Dec 2023) 100% 50% 0% -50% -100% Digital Experience & Solutions -51,0% (35,4%) Digital Experience & So
Slide 23: ni
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