Slide 1: FY2023 Presentation SFAF Meeting
SWORD GROUP FY2023 PRESENTATION SFAF MEETING 7 March 2024 Sword Group - March 24 1
Slide 2: Introduction, Organisation, At a Glance, Offer, Strategic Plan
Introduction Organisation At a Glance Offer Strategic Plan UK | US BeNeLux | Greece | Spain | UE Switzerland | Canada Offshore | Middle East Figures Group’s Share Financial Key Dates Sword Group 2
Slide 3: Introduction
Introduction Sword Group 3
Slide 4: Solid Fundamentals
Solid Fundamentals Above-target growth The Group maintains its budgeted profitability with a higher organic growth rate Sword Group 4
Slide 5: Reasons for our Outperformance
Reasons for our Outperformance A competent, efficient Team A policy of boosters/accelerators that is beginning to bear fruit Sword Group 5
Slide 6: A future under Construction
A future under Construction An emerging new generation Proven methods A business plan is currently being drawn up, forecasting revenue of €566+m by 2028 based on €281.6m in 2023 Sword Group 6
Slide 7: Organisation
Organisation Sword Group 7
Slide 8: Organisation | Management Team
Organisation | Management Team Phil Norgate M&A Advisor CEO Dave Bruce Dieter Rogiers Jacques Mottard MIDDLE EAST & CANADA & SCOTLAND TEXAS UK ENERGY WW US LUXEMBOURG GREECE SPAIN TIPIK SWITZERLAND INDIA SWITZERLAND COO Greg Phil Kevin Jared Craig Michel Gregory Michael Gökçe Nasser Guillaume Olivie
Slide 9: At a Glance
At a Glance Sword Group | 9
Slide 10: At a Glance
At a Glance A global Leader in Technology Transformation International 1000+ customers 3 offshore | Successful, Growing, Financially Secure Group in over 50 nearshore founded in and Listed 2000 countries support centres Sword Group has been making world-leading organisations more efficient and more
Slide 11: Dependable, digital IT transformation solutions
2023 Dependable, digital IT transformation solutions that reduce costs and increase productivity 3,015 people | 32 nationalities (i) (ii) Consolidated Revenue | €281.6m (i) (ii) EBITDA Margin | 12.3% (i) (ii) Consolidated Revenue by Region (i) (ii) Consolidated Revenue by Market (i) (ii) Others (Ban
Slide 12: Track record
Track record YEAR 2018 2019 2020 2021 2022 (i) 2023 (iii) Revenue €M 194.3 213.2 212.5 214.6 265.7 281.6 % Current EBITDA 14.0% 13.4% 13.9% 13.6% 12.5% 12.3% % Organic Growth (ii) +18.3% +20.7% +9.2% +21.5% +26.3% +19.0% Staff at 01/01/xxxx 2,030 2,067 2,337 1,902 2,329 2,723 Staff at 31/12/xxx 2,06
Slide 13: Offer
Offer Sword Group 13
Slide 14: Group's Offer | Software Components & IT Services
Group’s Offer | Software Components & IT Services SERVICES SOFTWARE COMPONENTS Creating Value through technology & improvement Adding Value through innovative software components solutions Application Data & Content AI & Development Analytics Services Automation Infrastructure & Enterprise Communica
Slide 15: Certifications in the Group
Certifications in the Group Information & Environmental Project & Quality Security Technology H&S Management Management Systems ISO 9001: 2015 ISO 27001: 2013 ISO 20000-1: 2018 ISO 45001: 2018 ISO 14001: 2015 Sword Group 15
Slide 16: What makes Sword Different?
What makes Sword Different? LARGE DELEGATION TEAM SPIRIT: REWARDING AT COUNTRY | BUS RESPECT | RIGOUR | AMBITION AND FLAT STRUCTURE LEVELS INVOLVEMENT ENTREPRENEURSHIP DOWN TOP OPPORTUNISTIC HYPER-REACTIVE CLOSE MONITORING APPROACH STRATEGY Sword Group 16
Slide 17: How we operate
How we operate Responsibilities Accountabilities… Budget Business Unit BUD delivery of BU plan P&L Director against budget in accordance with overall business objectives Team Growth Plan KPI’s BUSINESS UNIT Analytics LEADERSHIP Exec Sponsor BUs allow us to stay close to our colleag
Slide 18: Key Strengths
Key Strengths Stable Management Team Employees led by our values Globalised Leading Positions: Blue Chip Clients | Proven Business Model | Strong Synergies Sword Group 18
Slide 19: Key Markets
Key Markets The Group currently targets large multinational clients and will continue to do so in the future International Energy Public Org. EU Luxury Finance Sword Group 19
Slide 20: Strategic Plan
Strategic Plan Sword Group 20
Slide 21: 2024-2028 Objectives
2024-2028 Objectives Business Plan by forfaitising the a priori effect of accelerators By applying an organic growth of 15% per year Maintaining the profitability rate at 12% €M YEAR 2024 2025 2026 2027 2028 REVENUE 324 372 428 493 566 EBITDA IFRS 40 46 53 61 68 CASH GENERATION 25 29 33 39 43 Sw
Slide 22: Leverage of Outperformance
Leverage of Outperformance With From 2023 To 2028 With Accelerators Accelerators UK | US Oil & Gas Renewables Neom EU BeLux Market All European Markets (i) TIPIK Constant process Public Sector | International of searching for SWITZERLAND #1 International Org. The UN Globally new accelerators Org. OT
Slide 23: Investments Highlights
Investments Highlights Current Quality (ISO), Technology (AI) Organic Growth Financing the Accelerators Acquisitions New Skills | New Locations Sword Group 23
Slide 24: UK | US
UK | US Sword Group 24
Slide 25: Region Plans - UK | US
Region Plans - UK | US Our strategy is to increase recurring revenue, develop our 2024 Priorities intellectual property, and exploit our international presence Focused sales campaigns in Energy & Public sector Development of US business Energy Public Finance Exploit the growth and investment i
Slide 26: Region Plans - UK | US Services
Region Plans - UK | US Services “We will continue to provide business technology We Design, solutions in our chosen vertical markets” Implement & Support business technology solutions Our clients can expect our solutions to focus on: Cost Productivity Risk Compliance Engagement Sword Group
Slide 27: Oil and Gas
Oil and Gas Findings Recommendations OEUK estimates that energy industry spending in Whilst the size of UK production and target market the UK will be between £200bn and £250bn from may be shrinking, there will be multiple 2022 to 2030 opportunities for growth and revenue generation in the tradi
Slide 28: Energy transition & Renewables
Energy transition & Renewables Findings Recommendations Expected spend in energy transition activities in Sword’s O&G skills and services are uniquely the UK is between £120bn and £150bn (2022 to transferable from UKCS operators to the energy 2030) transition and renewables sectors Sword’s gro
Slide 29: Public Sector
Public Sector Findings Recommendations The addressable Public Sector market in the UK, Utilise our existing reputation within Scotland to based on the types of services we are capable of penetrate the wider UK Public Sector market delivering, is ~£1.7B per annum Recruit Public Sector Domain Ex
Slide 30: BeNeLux | Greece | Spain | EU
BeNeLux | Greece | Spain | EU Sword Group 30
Slide 31: Region Plans - BE | LU | GR | ES
Region Plans - BE | LU | GR | ES Our strategy is to further enhance and exploit our position 2024 Priorities within the EUI Market >15% business growth per year Maintain profitability >10% yearly new clients / new Framework Contracts / new Business domains European International EU Agencies
Slide 32: Positioning in 2023 - BE | LU | GR | ES
Positioning in 2023 - BE | LU | GR | ES Our excellent positioning helps: Strongest growth rate in EUI market in last 5 years to maintain Customers’ trust Winning rate EUI bids > 75 % to win new Framework Top 5 ICT partner of the EUI market Contracts to close Strategic Top 10 leading IT
Slide 33: Region Plans - BE | LU | GR | ES Services
Region Plans - BE | LU | GR | ES Services “We will continue to work in the most important contracts of the We listen, we care, EC/EU, expand our business domains and service areas, contribute we deliver. Always! transforming the future of Europe” SERVICES VALUE STREAMS VALUE EVALUATE APPLICATION DAT
Slide 34: European Institutions and Bodies
European Institutions and Bodies Findings Recommendations 4 main Institutions and 3 Bodies leading EUI’s Sword has 20+ years of presence at DG TAXUD (the administration: Directorate-General Taxation and Customs) European Commission, European Parliament, SOFT-DEV FC: Sword is involved in the
Slide 35: European Agencies
European Agencies Findings Recommendations EU Agencies have special governance models and dedicated budgets, frequently following their own rules EU Agencies are very loyal and have trusted Sword is involved in the development of ETIAS (the contractors for many years European Travel Informatio
Slide 36: International (and EU) Organisations
International (and EU) Organisations Findings Recommendations Sword is strongly developing the domain of the international and EU Organisations International Organisations are deeply related to EUI Central applications, and Sword can make use EUROCONTROL (the European Organisation for the of i
Slide 37: Switzerland | Canada
Switzerland | Canada Sword Group 37
Slide 38: Region Plans - Switzerland
Region Plans - SWITZERLAND Our strategy is to develop our ‘IT Global Outsourcing’ approach 2024 Priorities with international organizations and expand our service offerings Leverage on WADA deal to high-value market segments. for new wins in Sport movement and beyond Renew and extend long-term a
Slide 39: Region Plans - Switzerland
Region Plans - SWITZERLAND “We will continue to lead and support business and IT We provide flexible transformations for global leaders in targeted markets” and efficient operating models for business & IT transformations Our clients can expect our teams to provide… Quality Flexibility Data Appl
Slide 40: Sport Industry
Sport Industry Findings Recommendations Sport industry is dominated by International Officialise a dedicated “Sword Sport” vertical to Federations, Associations and Agencies together boost market penetration involving new BUs and with national Leagues and Clubs Regions The targeted segment con
Slide 41: United Nations
United Nations Findings Recommendations UN global budget, with its related agencies and Multiply LTAs with new Agencies by adding Sales international organisations, remain solid with 9% resource. Cost of entry is already paid yearly average growth on IT spendings since 2018 Benefit from organi
Slide 42: Governments
Governments Findings Recommendations Governments’ Information Technology budgets in Leverage on existing contractual frameworsk (GE, Switzerland are decentralized and split within 3 VD, FR) to rally other FR-speaking cantons (VS and layers: Federal (Confederation),Regional (Canton) NE ongoing, J
Slide 43: Offshore | Middle East
Offshore | Middle East Sword Group 43
Slide 44: Region Plans - Middle East - India
Region Plans - Middle East - India Our strategy is to strengthen our role as a leading offshore outsourcing provider in the European and North American markets, 2024 Priorities while simultaneously expanding our footprint in the Gulf markets of Establishing a sales team in Saudi Arabia and the Uni
Slide 45: Gulf Countries Market Expansion
Gulf Countries Market Expansion Findings Recommendations Sword is currently operating in the UAE through KSA Action plan: Sword Dubai and has recurring projects in Saudi Arabia (KSA) within the NEOM Mega project Create a new branch in Riyadh Starts Operations in Q3 2024 The IT market in KS
Slide 46: Expanding Operation Across Canada
Expanding Operation Across Canada Findings Recommendations Sword India offshore is serving multiple clients in Canada Expansion Action Plan: Canada with recurring revenue models Recruit a Senior Sales Manager to target on Potential opportunity to expand/increase IT Ontario and Quebec Markets
Slide 47: Figures
Figures Sword Group 47
Slide 48: FY2023 | Key Figures
FY2023 | Key Figures +19.0% Organic Growth at constant perimeter and constant exchange rates €288.1m FY Consolidated Revenue €281.6m 2023 AAA excluded 12.1% EBITDA margin 12.3% EBITDA margin AAA excluded Sword Group 48
Slide 49: FY2023 | Consolidated Breakdown
FY2023 | Consolidated Breakdown €m FY 2023 (*) Revenue EBITDA Margin Organic Growth (i) BeNeLux | Greece | Spain | EU 98.7 8.6% +17.1% Locations Switzerland | Canada 79.5 11.5% +17.1% UK | US 94.3 13.6% +24.1% (ii) Offshore Global Services 15.7 28.0% +18.9% Centers | Middle East TOTAL 288.1 12.1% -
Slide 50: FY2023 | Adjusted PnL
FY2023 | Adjusted PnL (i) (ii) (i) AAA excluded (ii) With no impact of amortization of backlog acquisition €m 2023 Revenue 281.6 Current EBITDA 34.5 | 12.3% Current EBIT (ii) 29.1 | 10.3% Non Current Costs 5.4 Financial Costs (5.0) Corporate Tax 3.5 Net Profit after corporate tax (i) 25.2 | 9.0% Swo
Slide 51: FY2023 | Adjusted PnL
FY2023 | Adjusted PnL (i) (i) With no impact of amortization of backlog acquisition €m 2022 2023 Revenue 272.3 288.1 Current EBITDA 35.1 | 12.9% 34.9 | 12.1% Current EBIT (i) 29.8 | 11.0% 29.3 | 10.2% Non Current Costs (90.4) 5.4 Financial Costs 1.6 (4.9) Corporate Tax 2.4 3.6 Net Profit after corpo
Slide 52: FY2023 Balance Sheet | Non-Current Assets
FY2023 Balance Sheet | Non-Current Assets €k 31.12.2022 31.12.2023 ASSETS NON-CURRENT ASSETS Goodwill 71,227 69,355 Net decrease due to the sale of AAA Other intangible assets 7,905 7,036 Property, plant & 4,649 4,573 equipment Assets related to the right 12,340 11,866 of use Investments in associ
Slide 53: FY2023 Balance Sheet | Current Assets
FY2023 Balance Sheet | Current Assets €k 31.12.2022 31.12.2023 ASSETS CURRENT ASSETS Trade and other 32,173 35,700 receivables Work in progress 35,627 45,413 Increase due to revenue growth and new EU projects Current tax assets 855 1,100 Other assets 14,951 5,711 Decrease due to the payment of d
Slide 54: FY2023 Balance Sheet | Financial Debt
FY2023 Balance Sheet | Financial Debt €k 31.12.2022 31.12.2023 EQUITY AND LIABILITIES EQUITY Share capital 9,545 9,545 Share premiums 70,676 70,676 Reserves 9,210 6,733 Retained earnings 11,376 17,198 TOTAL EQUITY - GROUP SHARE 100,807 104,152 Non-controlling interests (minority 737 1,258 interests)
Slide 55: 2023 | Net Cash Position
2023 | Net Cash Position (i) 31/12/2023 Net Cash Position: €32.6m (Bank: €27.4m | Treasury Shares: €5.2m) 30/06/2023 Net Cash Position : €15.8m (Bank: €15.6m | Treasury Shares: €0.5m) (i) Net cash position, excluding IFRS Sword Group 55
Slide 56: 2023 | Net Cash Position Details
2023 | Net Cash Position Details (i) €m YEAR FY2022 FY2023 As of 01/01 +55.0 +50.0 Operational cash: normative flow +23.7 +26.9 Change in WCR due to growth -9.6 -4.9 Balance GRC (Disposal + GRC Share deals) - +6.6 Dividends -16.2 Other share deals during the period -14.4 -11.9 Acquisitions + M&A fee
Slide 57: FY2023 | Backlog - AAA excluded
FY2023 | Backlog - AAA excluded [30/09/2023] [31/12/2023] Backlog: Backlog: €475.3m(i) €550.7(i) (20.4 months) (21.2 months) (i) AAA excluded Sword Group 57
Slide 58: FY2023 Top 10 Clients
FY2023 Top 10 | Clients Company Location British Petroleum UK | US DG Digital Services BeNeLux DG for Justice and 3 1 2 BeNeLux Consumers The first 10 clients The first client DG for Taxation and Customs Union BeNeLux represent 28.9% of represents 6.5% the FY2023 of the FY2023 Etat de Vaud Switzerla
Slide 59: Staff | Details
Staff | Details Staff on 01/01/2023 (with AAA) 2,723 New comers +775 AAA -245 Leavers -238 Staff on 31/12/2023 (without AAA) 3,015 Staff Turnover 9.6% Staff breakdown on 31/12/2023 Total 3,015 Including freelancers NDBS 265 Including Holding DBS 1,978 DBS freelancers 772 Including subcontractors Swo
Slide 60: Sword Group's Share
Sword Group’s Share Sword Group 60
Slide 61: Share return | c. +22% per year
Share return | c. +22% per year +22% -1% +55% +13% +5.5% 2021 Total Share 2019 Total Share 2020 Total Share Return (TSR) 2022 Total Share 2023 Total Share Return (TSR) Return (TSR) 01/01: €31.35 - 31/12: Return (TSR) Return (TSR) 01/01: €29.00 - 31/12: 01/01: €34.10 - 31/12: €43.65 01/01: €43.65 - 3
Slide 62: Financial Key Dates
Financial Key Dates Sword Group 62
Slide 63: Financial Calendar
Financial Calendar 31 PUBLICATIONS MEETINGS 25/04/2024 29/04/2024 2024 | Q1 Results Annual Shareholders 18/07/2024 Meeting | 2023 2024 | Q2 Results 11/09/2024 SFAF Meeting | 24/10/2024 H12024 Results 2024 | Q3 Results 12/03/2025 SFAF Meeting | 23/01/2025 FY2024 Results 2024 | Q4 Result