SpyroSoft SA · GPW:SPR
SpyroSoft SA — Q1 2022 Earnings Presentation
37 slides from SpyroSoft SA's earnings presentation, Jun 1, 2022
Slide 1: Spyrosoft. Shaping technology, together.
Spyrosoft. Shaping technology, together. We are technical experts with business integrity
Slide 2: Agenda
Agenda 1. Spyrosoft S.A. Q1 2022 financial results. 2. Spyrosoft S.A. 2022-2026 strategy.
Slide 3: 1. Spyrosoft S.A. Q1 2022 financial results
1. Spyrosoft S.A. Q1 2022 financial results
Slide 4: About Spyrosoft
About Spyrosoft
Slide 5: Key facts
Key facts Q1 2022 revenue at 88% of our Q1 2022 We worked for 98 PLN 60m (+69% y-o-y), revenue comes from clients in Q1 2022 net profit of PLN 5m foreign customers (+25% y-o-y) In March 2022 we’ve Our team already We’re global – 14 consists of 964 people offices in 8 entered Warsaw Stock Exchange (a
Slide 6: Who we are and how we work
Who we are and how we work Spyrosoft is a group of companies developing custom software for clients around the world. The companies within the Group specialise in various business sectors, are geographically dispersed and their services offering complement each other. Our business model is based on
Slide 7: Our locations and expertise
Our locations Our expertise Automotive Employee Experience & Education Financial Services Geospatial Services Healthcare & Life Sciences Industry 4.0 Robotics
Slide 8: Spyrosoft S.A. Capital Group's structure
Spyrosoft S.A. Capital Group’s structure
Slide 9: Spyrosoft's vision
Spyrosoft’s vision The goal is to maintain our position as one of the fastest growing custom software development companies in Europe.
Slide 10: Q1 2022 summary
Q1 2022 summary
Slide 11: Q1 2022 summary
Q1 2022 summary • We are accelerating - we already employ 964 people. In 1Q 2022, the average number of new hires increased to 50 per month, 5 new recruiters joined the team. • The number of clients increased by a record 21 in Q1 2022. The number of projects rose by 66. • In Q1, the Group hired its
Slide 12: Employment growth
Employment growth 1000 964 934 910 854 874 811 774 742 750 704 662 673 614 635 565 582 500 250 0
Slide 13: Q1 2022 financial results
Q1 2022 financial results
Slide 14: Key financial data (PLN mln)
Key financial data (PLN mln) Revenue EBITDA Q1 2021 vs. Q1 2022 Q1 2021 vs. Q1 2022 • Strong revenue growth is an effect of a sustainable high demand for IT services 80 20 and constantly growing client portfolio, as well as increased rates for services 60 15 offered. 69% 47% 40 10 • In Q1 2022 Spyro
Slide 15: Profit and loss account
Profit and loss account Profit and loss account (PLN mln) Q1 2021 Q1 2022 Revenues from sales 35.51 60.03 Cost of sold products, services, goods and materials 22.48 38.21 Gross profit from sales 13.02 21.83 Cost of general management 7.69 13.66 EBITDA 6.83 10.0 Operating profit (EBIT) 5.47 8.04 Fina
Slide 16: Revenue structure
Revenue structure Q1 2021 Q1 2022 Industry 4.0 Healthcare & Life Science 9% 3% Industry 4.0 Geospatial 11% 33% Geospatial 22% Media & Entertainment 5% Media & Entertainment 9% Employee Experience & Automotive Education Employee 29% 15% Experience & Education Automotive 12% 17% Financial Services 21%
Slide 17: Revenue structure – geographic diversification
Revenue structure – geographic diversification 60% 57% 50% 42% 40% 30% 30% 20% 17% 15% 12% 11% 10% 8% 6% 4% 0% UK Germany Poland US others Q1 2021 Q1 2022
Slide 18: 2. Spyrosoft S.A. 2022-2026 strategy
2. Spyrosoft S.A. 2022-2026 strategy
Slide 19: Business environment
Business environment • The increasing need for digital transformation services is reflected in the extensive demand for custom software development • Operating on a global scale means that the pool of potential customers is unlimited • Increased globalisation of IT services – after the Covid-19 pand
Slide 20: The increasing need for digital transformation services
The increasing need for digital transformation services Digital Transformation Worldwide - Revenue (Trillion USD) 2,5 2 1,5 1 0,5 0 2017 2018 2019 2020 *2022 *2023 Source: Statista Estimates, 2020
Slide 21: Global custom software development revenue by segments
Global custom software development revenue –by segments Software development revenue worldwide (Billion USD) 900 800 700 600 500 400 300 200 100 0 2016 2017 2018 2019 2020 *2021 *2022 *2023 *2024 *2025 Enterprise software Application development software System infrastructure software Productivity s
Slide 22: Growth of tech outsourcing services during and after Covid-19
Growth of tech outsourcing services during and after the Covid-19 pandemic Revenue from outsourcing (Billion USD) 600 500 400 300 200 100 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: Statista Technology Market Outlook , March 2022
Slide 23: The popularisation of remote work after the Covid-19 pandemic
The popularisation of remote work after the Covid-19 pandemic Tech specialists' responses by the expected work Share of remote work for all employees in each week time spent working remotely country 35% 30% 28% 27% 25% 20% 19% 16% 15% 10% 5% 4% 1% 0% <10% 10-20% 21-40% 41-60% 61-80% >80% Source: Sta
Slide 24: Domain knowledge in global tech organisations
Domain knowledge in global tech Large companies organisations With more than 20 000 employees Leading large and mid-sized companies delivering custom Mid-sized companies software offer their services to With between 1 500 and 20 000 employees clients from various business segments.
Slide 25: Global increase of salaries in IT
Global increase of salaries in IT Developers' salary on average (US, 2018 – 2021) The global increase of salaries will be balanced by the growing demand for IT services. Source: StackOverflow, 2021
Slide 26: The number of IT specialists will be growing
The number of IT specialists will be growing Demographic research and global population of developers Number of developers worldwide [in million] 35 30 25 20 15 10 Latin America ranks second when it comes to the 5 growth rate By 2025, India will be equal to the US as for the number of developers 0 2
Slide 27: Global economic crisis
Global economic crisis We predict a relatively small impact of the impending economic crisis on the condition of the Spyrosoft Group - digitalisation is a key global trend, which makes the IT industry a stable sector of the global economy. The two previous crises (financial and Covid) only increased
Slide 28: War in Ukraine
War in Ukraine The war does not directly affect the condition of the Spyrosoft Group - we do not have development centres in Russia or Ukraine, nor we provide services for these markets. Expected effects: • We are seeing an increase in demand for IT services - new clients want to replace lost suppli
Slide 29: The advantages of Spyrosoft - Knowledge
The advantages of Domain knowledge Technologies Spyrosoft - Knowledge Technological and business consulting A pragmatic approach to innovation • Automotive Technological diversification • Financial Services • Geospatial Services • AI • Industry 4.0 • Public cloud • Healthcare & Life Sciences • Mixed
Slide 30: The advantages of Spyrosoft - People
The advantages of Human capital Localisations Spyrosoft - People Most of the employees are specialists Access to qualified specialists in various time zones with mid-senior experience Effective recruitment and marketing Development centers not only in PL, but processes: % increase in 2021 also in th
Slide 31: The advantages of Spyrosoft – Business model
The advantages of Spyrosoft – Business model E2E offer Industry and geographic diversification Automotive United Kingdom Technological and business consulting Geospatial 7% 1% DACH 9,0%1,4% Financial Services Polska • Automotive Employee Experience & Education 12% 25% United States • Financial Servi
Slide 32: Goals for 2022-2026
Goals for 2022-2026 3500 800000 000 700000 000 Planned organic growth rate: 3000 • Revenues: average annual growth of 600000 000 Number of employees 2500 33% (from 25% to 35% annually) 2000 CAGR 500000 000 +33% • EBITDA margin ranging between 11% - 400000 000 14% 1500 300000 000 CAGR • A minimum of
Slide 33: Implementation of Spyrosoft Group strategy
Implementation of Spyrosoft Group strategy • Organic growth of companies in the Group through the acquisition of new customers and cross-selling to existing partners • Establishing new, specialised companies to complement our portfolio • Opening and development of R&D centres beyond Poland – Romania
Slide 34: Strategy implementation: ESOP
Strategy implementation: ESOP The five-year motivational share option programme will cover the key Spyrosoft Group employees - from the point of view of the organisation's development technical and management positions. The aim of the programme is to encourage employees to implement the strategy and
Slide 35: Strategy implementation: Consolidation of shares within the Group
Strategy implementation: Consolidation of shares within the Spyrosoft Group The consolidation will be conducted based on share exchange parities based on the EBITDA of the subsidiaries for 2026 and market multipliers. The exchange is planned for 2027 with the aim of building and maintaining a high m
Slide 36: Prospect for shareholders
Prospect for shareholders We need 5 years to achieve the objectives set out in the strategy. Focus on business development and revenue growth in the short term. Possible profit fluctuations due to investments in the growth of the organisation and its technological development. Payment of dividends w
Slide 37: Summary
Summary 1. The Spyrosoft Group operates in a favourable environment of stable demand for IT services. 2. The business model and market advantages on which the Group relies not only enable rapid scaling, but also mitigate potential market risks. 3. Spyrosoft's track record to date is a good predictor