Matrix It Ltd. · TASE:MTRX

Matrix It — Q2 2024 Earnings Presentation

41 slides from Matrix It's earnings presentation, 2024

  1. Slide 1: Investor Meeting - Financial Statements as at 30.6.24

    Investor Meeting Financial Statements as at 30.6.24 The information contained in this Investors presentation constitutes a convenience translation. The Hebrew version was submitted by the Company to the relevant authorities pursuant to Israeli law and represents the binding version and the only one

  2. Slide 2: Clarifications

    Clarifications • The presentation contains the Company’s forecasts, estimates and plans regarding its operations and other information about future events and matters, which constitute forward-looking information, as defined in the Securities Law, 1968, and realization thereof is uncertain and may b

  3. Slide 3: Second Quarter 2024

    Second Quarter 2024 Continued growth of sales, gross profit, operating profit, EBITDA, net income, and cashflows despite the effects of the war and differences in work hours compared to the corresponding quarter last year (approximately -2%) Sales - 3.6% growth to NIS 1.33 billion Gross profit - 9%

  4. Slide 4: First Half of 2024

    First Half of 2024 Continued growth of sales, gross profit, operating profit, EBITDA, net income, and cashflows despite the effects of the war and differences in work hours compared to the corresponding half of last year (approximately -2%) Sales - 8.1% growth to NIS 2.78 billion Gross profit - 9.4%

  5. Slide 5: The War's Impact

    The War’s Impact • Despite the war, the Company’s operations were characterized by increased sales, profits, and cashflows, all as a result of organic growth. • As of 30.6.2024, approximately 145 Company employees have been called up to active reserve duty - a decrease as compared to the 470 (and at

  6. Slide 6: Financial Statements 30.6.2024

    Financial Statements 30.6.2024

  7. Slide 7: Key figures from the Statement of Profit and Loss - Q2 2024

    Key figures from the Statement of Profit and Loss - Q2 2024 – compared to the corresponding quarter. Key results (in NIS millions) Q2 2024 Q2 2023 Difference Change in % Sales* 1,333 1,287 46 3.6% Gross profit 202 185 17 9 in respect of 9.0% 4.7% growth reimbursement Selling, administrative, and for

  8. Slide 8: Key figures from the Statement of Profit and Loss - H1 2024

    Key figures from the Statement of Profit and Loss - H1 2024 compared to the corresponding period Key results (in NIS millions) H1 2024 H1 2023 Difference Change in % Sales* 2,786 2,578 208 8.1% Gross profit 409 374 35 9.4% 6 in respect of 8.4% growth Selling, administrative, and reimbursement 187 17

  9. Slide 9: Summary of Q2 2024 - Organic growth despite the war and the Passover holiday

    Summary of Q2 2024 - Organic growth despite the war and the Passover holiday Key results (in NIS millions) Sales Gross profit Operating profit +3.6% +13.9% 1,333 111.3 1,287 +9% 201.8 97.7 185.0 14.4% 15.1% 7.6% 8.3% Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 3.6% growth in 9% growth in gross p

  10. Slide 10: Summary of Q2 2024 - Organic growth despite the war and the Passover holiday

    Summary of Q2 2024 - Organic growth Financing expenses, net (in NIS millions) Q2 2024 Q2 2023 despite the war and the Passover holiday Interest, commissions, and other 5.8 9.7 Key results (in NIS millions) (net) Exchange rate differences 2.9 (3) Accounting finance expenses 6.1 8.7 Total financing ex

  11. Slide 11: Summary of H1 2024 - Continued improvement of results over the years

    Summary of H1 2024 - Continued improvement of results over the years Constant growth of sales and profits (in NIS millions) Sales Gross profit Operating profit* 11.1% 12.1% 13.4% 4YR 4YR 4YR CAGR CAGR CAGR +8.1% +9.4% 2,577 2,786 408.9 221.9 2,323 373.7 199.1 2,173 176.3 310.6 327.4 164.2 1,830 259.

  12. Slide 12: Summary of H1 2024 - Continued improvement of results over the years

    Summary of H1 2024 - Continued improvement of results over the years Constant growth of sales and profits (in NIS millions) Net income attributable Adjusted EBITDA* Net income** 14.3% to shareholders ** 12.7% 15.2% 4YR 4YR 4YR CAGR CAGR CAGR +8.1% +15.7% 249.3 138.1 144.5 230.7 129.2 128.2 116.4 119

  13. Slide 13: Israel Operations

    Israel Operations Created in Midjourney AI platform

  14. Slide 14: Breakdown of sales by customer industry

    Government and Defense 16% Financial 27% Hi-Tech 12% Industry, Communications, and Retail Health and Transportation Other 13% 18% 14% Breakdown of sales * by customer industry * According to 2023 revenues

  15. Slide 15: Operations in Israel Q2 2024

    Operations in Israel* Q2 2024 (in NIS millions) 17.6% growth in operating profit 4% growth in Sales (6%, net of National Insruance Istitute 13.2% 17.5% reimbursement) 4YR CAGR 4YR CAGR +17.6% 1,214 1,264 96 1,102 1,008 82 73 75 800 51 Q2/2020 Q2/2021 Q2/2022 Q2/2023 Q2/2024 Q2/2020 Q2/2021 Q2/2022 Q

  16. Slide 16: Operations in Israel H1 2024

    Operations in Israel* H1 2024 (in NIS millions) 13.7% growth in operating profit 8.2% growth in Sales (10%, net of National Insruance Istitute 12.5% 17.4% reimbursement) 4YR CAGR 4YR CAGR +13.7% 2,640 195 2,439 2,256 172 2,059 156 146 1,645 103 H1/2020 H1/2021 H1/2022 H1/2023 H1/2024 H1/2020 H1/2021

  17. Slide 17: Operating segments in Israel - Q2/2024

    Operating segments in Israel - Q2/2024 (in NIS thousands) Sales Operating profit Q2/2024 Q2/2023 % Q2/2024 Q2/2023 % Information technology solutions and services, consulting, and 774,290 727,960 6.4% 62,080 49,186 26.2% management in Israel Profit margin (%) 8% 6.8% • Organic growth in volumes desp

  18. Slide 18: Operating segments in Israel - Q2/2024

    Operating segments in Israel – Q2/2024 (in NIS thousands) Sales Operating profit Q2/2024 Q2/2023 % Q2/2024 Q2/2023 % Information technology solutions and services, consulting, and management in 774,290 727,960 6.4% 62,080 49,186 26.2% Israel Profit margin (%) 8% 6.8% Cloud and computing infrastructu

  19. Slide 19: Operating segments in Israel - Q2/2024

    Operating segments in Israel – Q2/2024 (in NIS thousands) Sales Operating profit Q2/2024 Q2/2023 % Q2/2024 Q2/2023 % Information technology solutions and services, consulting, and management in 774,290 727,960 6.4% 62,080 49,186 26.2% Israel Profit margin (%) 8% 6.8% Cloud and computing infrastructu

  20. Slide 20: Operating segments in Israel - Q2/2024

    Operating segments in Israel – Q2/2024 (in NIS thousands) Sales Operating profit Q2/2024 Q2/2023 % Q2/2024 Q2/2023 % Information technology solutions and services, consulting, and management in 774,290 727,960 6.4% 62,080 49,186 26.2% Israel Profit margin (%) 8% 6.8% Cloud and computing infrastructu

  21. Slide 21: US Operations

    US Operations Created in Midjourney AI platform

  22. Slide 22: Operating segments - Q2/2024

    Operating segments - Q2/2024 (in NIS millions) Sales Operating profit Q2/2024 Q2/2023 % Q2/2024 Q2/2023 % Information technology solutions and services, 774.3 62 consulting, and management in Israel Information technology solutions and services, 118.8 123.1 (3.5%) 16.9 18.3 (7.5%) consulting, and ma

  23. Slide 23: Operating segments - H1/2024

    Operating segments - H1/2024 (in NIS millions) Sales Operating profit H1/2024 H1/2023 % H1/2024 H1/2023 % Information technology solutions and services, consulting, and management in 1,568.5 123.7 Israel Information technology solutions and services, consulting, and management in the 237.5 230.9 2.8

  24. Slide 24: Breakdown of sales and profits by operating segment - H1/2024

    Breakdown of sales and profits by operating segment - H1/2024 Contribution to profits Sales 3% 2% 7% 7% 8% 15% 55% 54% 27% 22% Training and implementation Software products US Operations Cloud and computing infrastructures Software Services

  25. Slide 25: Financial indexes

    Financial indexes

  26. Slide 26: Financial indexes (NIS millions)

    Financial indexes (NIS millions) 30.06.2024 31.12.2023 Cash flows from current operations Cash and cash equivalents 498 640 LTM Unused credit facilities* 1,207 1,448 Total liquid assets 1,705 2,088 +32% 543.9 * Of which NIS 350 million committed credit facilities 460.4 412.2 Cashflows from current o

  27. Slide 27: Financial indexes (NIS millions)

    Financial indexes (NIS millions) 30.06.2024 31.12.2023 410 1,108 Series B Company Shareholder equity 1,108 1,107 Debentures Equity % of total balance sheet 28.2% 27.1% 198 Equity/Debt Financial debt, gross 896.1 956.4 Loans from Financial Structure Financial debt, net 397.7 316.2 Institutions Curren

  28. Slide 28: Decrease in cash interest expenses

    Decrease in cash interest expenses 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 31.3.23 30.6.23 30.9.23 31.12.23 31.3.24 30.6.24 5% 4% 3% Bank of Israel Interest 2% Rate 1% 0% 18.9 16.9 17.0 16.6 15.4 14.8 4.9 Breakdown of 7.6 10.5 5.7 8.9 financing expenses 9.0 (in NIS millions) 12.0 9.7 9.4 8.4 7.7 5.8 Interest ex

  29. Slide 29: Dividend Distribution

    Dividend Distribution NIS 741 million in 3.5 years Dividend Yield Dividend per 3.65% Amount Date of distribution share (NIS millions) (in agorot) April 2024 127 80.67 July 2024 81 51.45 Total for H1 2024 208 132.12 Total for FY 2023 199 126.4 Total for FY 2022(*) 452 284.3 Total for FY 2021 234 146.

  30. Slide 30: Dividend of NIS 52.1 million

    Dividend of NIS 52.1 million (NIS 0.82 per share)

  31. Slide 31: Matrix's Positioning 2024

    Matrix’s Positioning 2024 Selected Ratings Based on 2024 research

  32. Slide 32: Ranked first in the field of software services

    Ranked first in the field of software services 19 years in a row * and in 47 more categories

  33. Slide 33: CYBER

    CYBER CISO as a SERVICE Cyber Security Cyber Security Product SIEM as a Service Consulting Implementations

  34. Slide 34: DIGITAL

    DIGITAL E-Commerce & Marketplace UX Design Implementations

  35. Slide 35: CLOUD

    CLOUD Data & Analytics Cloud Enterprise Cloud Migration Infrastructure Projects

  36. Slide 36: DATA & AI

    DATA & AI Data Management Generative AI & Advanced Analytics, Data Data & AI Strategy Implementation LLM Projects Science & ML projects Consulting * New category

  37. Slide 37: Generative AI and LLM projects

    Generative AI and LLM projects NEW - 2024 Matrix is ranked first in a new and important category!!

  38. Slide 38: Advanced Analytics, Data Science and ML projects

    Advanced Analytics, Data Science and ML projects 2024 2023

  39. Slide 39: Data & Analytics Cloud migration

    Data & Analytics Cloud migration (Migrating DW and Data Lakes to the cloud) 2024 2023

  40. Slide 40: Summary

    Summary Organic growth in revenues and profits during 2nd quarter and 1st half, durin wartime The Company continues its growth trend despite the harm to its revenues and profits resulting from approximately 145 of its employees being on active reserve duty, the slowdown in demand for services in the

  41. Slide 41: Thank you

    Thank you

Matrix IT — Q2 2024 Earnings Presentation on 6ix