Nagarro Se · XETR:NA9
Nagarro — German EigenKapital Forum (EKF) 2023
29 slides from Nagarro's conference presentation, Nov 27, 2023
Slide 1: Fluidic Enterprise - Nagarro SE
Fluidic — Enterprise Nagarro SE ‘ain ~~
Slide 2: Disclaimer
Disclaimer The information contained in this document is provided as of the date of its publication and is subject to change without notice. This presentation contains preliminary figures and forward-looking statements. Forward-looking statements may be identified by words such as “expect’, “forecas
Slide 3: Nagarro at a glance
Nagarro at a glance wu Fast-growing, scaled, diversified, digital engineering leader with a full-service portfolio ch Differentiated organization design based on entrepreneurship and global teams © Aglobal company domiciled in Germany Employee data as of Sep 30, 2023 x 19,000+ Nagarrians across 36 c
Slide 4: Our Mission Statement
Our Mission Statement: To make distance and difference irrelevant between intelligent people y ae ee N
Slide 5: Our core values: a magnet for talent
Our core values: a magnet for talent Caring is our superpower... @9o°oO0 0090 Client-centric Agile Responsible Intelligent Non-hierarchical Global Caring
Slide 6: A global company with no single HQ
A global company with no single HQ Data as of Q4, 2023 36 countries with registered offices Over a dozen nationalities in senior management Americas EMEA Region Asia Canada Austria Poland Australia Columbia Bahrain Portugal China Ecuador Denmark — Romania India Mexico Finland Saudi Arabia Jogem us F
Slide 7: Differentiated market positioning
Differentiated market positioning Al-led transformation for our clients Engineering DNA Superior: <épam> (QQ nagarro + Client intimacy ineigial + Rapid prototyping engineering > + Agile development torshange kPMG Consulting DNA accenture * Lean, small-team culture * Architecture and code quality _ _
Slide 8: Ginger AI
Ginger Al Meet Ginger, the conversational Al solution for organizational performance and alignment About Ginger Al is an all-in-one workplace companion that revolutionizes the way employees consume information and perform day-to-day tasks by harnessing powerful nudge patterns, Generative Al, and NLP
Slide 9: Nagarro's Genome AI
Nagarro’s Genome Al designed keeping in mind micro-data signals, next-gen Al and enterprise needs Gen-Al, LLMs, Knowledge Graphs and Foundational-Al models to drive playbook- based automation across the ecosystem! Available toolkits like customer-experience 360, supply-chain 360 etc.
Slide 10: Nagarro's AI partnership with Abdul Latif Jameel Group
Nagarro’s A/ partnership with Abdul Latif Jameel Group Our Al-driven automotive lead management solution developed for ALJ Motors awarded the best A! use-case in World Al show in Dubai (May 2023) “BEST A Ar USE- RETAIL (SPECIAL ME! a “... Thank you for pushing boundaries with us. #Nagarro ...Looking
Slide 11: Diversified across industries and clients
Diversified across industries and clients Revenue by industry 6% Management Consulting and Business 5% Information Telecom, Media and Entertainment 7% Horizontal Tech 23% 7% —— Automotive, Public, Non-profit, Education Manufacturing and Industrial 8% Life Sciences and Healthcare 14% 8% ————————— Fin
Slide 12: Global opportunities served with global talent
Global opportunities served with global talent Revenue by client region Personnel worldwide A 19,182 Central Europe Total professionals, of which... Rest of World (Germany is 21%) C2, 17,728 North America Rest of Europe 7 Professionals in engineering Central Europe comprises Austria, Croatia, Czech
Slide 13: Working with the leaders in each industry
Working with the leaders in each industry Automotive, Manufacturing and Industrial OBB OS Travel and Logistics $ maruti suzuKt SIEMENS @arriva[ csx ] ACrapon © bstthansa OBB ST Telecom, Media and Entertainment Ae Retail and CPG ApmirAL —NETENT Amy. cop Gp su Financial Services and Insurance Bank of
Slide 14: Large client base to develop over time
Large client base to develop over time 141 ™ 2020 T™ Sep 30, 2023 176 clients > Eurtmn revenue number 72 of clients 16 «18 7 = 6 Cal Revenue €1-5 million €5-10 million > €10 million Avg relationship (years) 5 10 11 Data from acquired entities is included from date of acquisition; 2023 data is TTM as
Slide 15: Why customers choose us
Why customers choose us NPS numbers are from the CSAT survey for Q3, 202 Promoters are those who gat re of 9 or 10, he NPS score is calculated as (Number of Promoters- number are those who g The question posed was: “On a scale of 1-10, how likely are you tor ore of 7 or 8, and Detractors are thos ac
Slide 16: Powered by a unique org design and culture
Powered by a unique org design and culture Virtual, global organization rather than a federation of national orgs or legal entities Flat, entrepreneurial management 50+ top-level leaders, >25% of them entrepreneurs Emphasis on autonomy and choice via internal marketplaces, not top-down decision maki
Slide 17: Post spin-off
Post spin-off 2014 2016 2017 2018 2019 2020 2021 2022 2023 17 17
Slide 18: ESG@Nagarro
ESG@Nagarro Oy Key ESG focus areas We are centered on cultivating an authentic and organic culture of thinking and doing good through our CARING value system Environment Social Governance Climate action Sustainable digital engineering Zero waste to landfill Responsible water management Responsible s
Slide 19: Socially responsible around the globe
Socially responsible around the globe 1. With WWF against single use plastic 2. Testing Pro for people with autism 3. Incubating a university 4. Making art accessible 5. Saving lives via road safety (India Vision Zero - Safer Streets. Safer Cities.) 6. Organizing car-free days 19
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Slide 21: Q3 2023 highlights
6.6% YoY constant currency revenue growth, 2.3% YoY organic CC Clients remain very engaged, high levels of client satisfaction Expansion of offerings, including next-gen AI tools Improved cash conversion Cost streamlining efforts continue Improved ESG standing, Bronze Medal rating by EcoVadis 21
Slide 22: Q3 2023, by the numbers
Q3 2023, by the numbers €234m 2.8% 6.6% 23.9% revenue QoQ revenue growth YoY revenue growth gross margin in constant currency in constant currency Industries’ YoY growth range Segments’ YoY growth range 29% -26% 21% -15% life sciences and horizontal tech rest of world North America healthcare Guidan
Slide 23: Diversification across industries and clients
Diversification across industries and clients Revenue by industry 6% (PY 8%) Management Consulting and Business 5% (PY 6%) Information Telecom, Media and Entertainment 7% (PY 9%) Horizontal Tech 23% (PY 19%) 7% (PY 7%) SS Automotive, Public, Non-profit, Education Manufacturing and Industrial 8% (PY
Slide 24: Rest of World leads growth
Rest of World leads growth (XS) Revenue by client region Personnel worldwide A 19,182 Central Europe Total professionals, of which... Rest of World (Germany is 21%) (PY 22%) (PY 26%) (2, 17,728 North America Rest of Europe 4 5 . J Professionalsin engineering (PY 41%) (PY 11%) Central Europe comprise
Slide 25: Net liabilities and cash flows
Net liabilities and cash flows Net liability €m Cash flow €m Net leverage 2.1% 11x 1.8x Total cash flows 15.8 7.3 Net 166.0 162.2 223.7 ; ] | = 62.7 55.8 Financial liabi 42.0 52.8 91 “10. Cash 406.6 “110.2 ere 108 “4a Dec31,2021 Dec31,2022 Sep 30,2023 9M ‘23 9M ‘22 Financial liabilities include draw
Slide 26: Capital allocation
Capital allocation ? Strategic bolt-on M&A + Synergistic, strategic M&A with small targets * Focus on ‘client-access’ + Conservative purchase price with larger portion paid as earn-outs over multiple years + Fullintegration into Nagarro brand, systems, and culture ww we Opportunistic share buyback +
Slide 27: Outlook
Outlook 2023 target Medium-term target cH Revenue ~€915m ~20% YoY organic growth |w Gross Margin ~26% ood Vi Adjusted EBITDA ~13% Rising to 18% in 2026 Guidance per announcement on August 11, 2023, excludes future acquisitions
Slide 28: Nagarro investment highlights, reiterated
Nagarro investment highlights, reiterated Po: ning “Engineering DNA’ digital leader with a special “Enterprise Agile” Approach Organization Agile, entrepreneurial and global org design and culture Growth Sustainable organic growth capabilities, plus synergistic M&A Clients Large, global blue-chip cu
Slide 29: Thank you
Thank you © Nagarro