B3 Consulting Group Ab · OMXSTO:B3
B3 Consulting Group Ab — Q2 2024 Earnings Presentation
29 slides from B3 Consulting Group Ab's earnings presentation, Jul 17, 2024
Slide 1: B3 Consulting Group Q2 2024 presentation
ult in g G ro up B3 Cons 2 0 2 4 Q2 presen ta tio n
Slide 2: Speakers from B3
Speakers from B3 Martin Stenström Katarina Lundqvist Jens Rutgersson CEO B3 Consulting Group Head of Communications & IR CEO B3 Networks 2
Slide 3: B3's vision and values
B3’s vision and values We aim to be Sweden’s best consulting company ra The Z eb of B3 B3’s vision Experiences A Pa rt 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
Slide 4: B3 Networks
B 3 N e tw o rk s
Slide 5: B3 Networks
B3 Networks We are 30 Consultants in Stockholm, Gothenburg and Malmö Our Services • Specialist consultants in Network and Security for long-term assignments • Functional & Team commitments Jens Rutgersson Åsa Hofvander • Operations and Maintenance Services CEO Consultant Mgr Staff • Mix of Senior &
Slide 6: Development & Future Outlook
Development & Future Outlook Secure networks and robust digital communication are business-critical for our customers. REVENUE B3 NETWORKS (KSEK) Positive growth 2020 - 2023: 172% Increasing profitability: 20,4% (2023) Very high utilization rate over time Positive hourly rate trends: up 22% 2020-202
Slide 7: Q2 2024
Q2 2024
Slide 8: Highlights in Q2 2024
Highlights in Q2 2024 Still weak- actions taken will increase volume/EBITDA in Q4 • Revenue 266.4 (299.3) MSEK, -11% growth • EBITDA 15.0 (27.2) MSEK, EBITDA margin 5.6% (9.1%) • Profit after tax 5.5 (16.7) MSEK, Earnings per share after dilution 0.62 (1.68) SEK • Average number of co-workers is 750
Slide 9: Financial overview Q2 2024
Financial overview Q2 2024 Fewer consultants result in lower performance – we have probably hit bottom Q2 Jan-Jun Jan-Dec Extract of B3's key figures 2024 2023 Δ% 2024 2023 Δ% 2023 Net Sales, SEK million 266,4 299,3 -11,0% 547,7 623,9 -12,2% 1 140,8 EBITDA, SEK million 15,0 27,2 -44,9% 29,1 73,2 -60
Slide 10: Financial overview Q2 2024 – incl. B3 Poland
Financial overview Q2 2024 – incl. B3 Poland Another strong B3 Poland quarter with 16,3% growth and 14,9% EBITDA margin Q2 jan-jun jan-dec Q2 Jan-Jun Jan-Dec Alternative key figures with B3 Polen fully consolidated¹ 2024 2023 Δ% 2024 2023 Δ% 2023 Alternative key figures with B3 Polen fully consolida
Slide 11: Revenue breakdown
Revenue breakdown Utilization gap now falling rapidly • The decline in FTE is partly due 299 to the phasing out of unassigned consultants, but 31 also due to a lower recruitment 4 rate to adapt to market 0 8 12 266 3 conditions and counteract unwanted costs. • The gap in utilization has decreased si
Slide 12: Utilization rate up 4,3% points
Utilization rate up 4,3% points Downward trend broken; Positive development since February 87,8% -4,6% • Positive development month by month (June 83,7%) 86,7% • Still not good enough, Q3 could be challenging but strongest sales force ever creates the conditions to get out stronger in the other end.
Slide 13: B3 operates across multiple markets
B3 operates across multiple markets Focus on elevating the most challenged entities without losing momentum in others 20 15 10 EBITDA % Four of our smaller 5 companies with very poor results (average of -10% EBITDA and -25% growth) has been excluded to make the scale of the picture 0 more visually p
Slide 14: Cost saving program spot on
Cost saving program spot on Another 7 MSEK improvement expected in Q3 and in Q4 40 41 38 • Moving according to plan • Focus on sales and revenue 31 going forward 32 33 29 • In Q1, we launched a cost- 24 saving initiative to prevent 24 cost creep in our subsidiary 17 companies, with full impact 13 17
Slide 15: Other important events in Q2
Other important events in Q2 A valued employer, focus on generative AI and a heavily oversubscribed senior secured bond • B3 established the new specialist company B3 Elevate • B3 took second place among students' top 10 employers • B3 issued senior secured bonds worth 200 million SEK under a framew
Slide 16: New acquisitions
New a qc uis itio ns
Slide 17: The acquisition of Webstep strengthens B3's position
The acquisition of Webstep strengthens B3’s position B3 is becoming even stronger in system development and is being established in new locations • B3 has acquired 100% of the shares in Webstep AB • The acquisition is B3's largest in history • Webstep will become a subsidiary within B3. The name is
Slide 18: Revenue and profit - Webstep AB
Revenue and profit - Webstep AB Background with focus on growth and weak result - now it's time to turn this around Revenue MSEK per quarter • Utilization rate - slightly higher than B3 • Consulting cost 1-2% higher than B3 • High overhead cost – higher than B3 40 38 37 37 33 32 32 30 30 29 29 28 28
Slide 19: B3 Poland - a success story for 6 years
B3 Poland - a success story for 6 years A new five-year contract has been signed with CEO Rafal Dabkowski • Established in 2018 by Martin Nilsson and Rafal Dabkowski • Today the company has +200 employees, offices in Warszaw and Krakow • B3 Poland offers IT outsourcing through its CARE3 model, speci
Slide 20: Revenue and profit – B3 Poland
20 Q4 7,7 Q1 9,7 Q2 11,8 202 1 Q3 14,3 Q4 18,2 Q1 23,1 Q2 28,7 202 2 Q3 33,2 Q4 36,4 Q1 38,6 Revenue MSEK per quarter Q2 36,9 202 3 Q3 40,7 Q4 40,3 Q1 40,5 Strong development since start 202 4 Q2 42,9 Q4 0,5 Q1 0,8 Q2 1,3 202 1 Q3 1,0 Q4 4,6 Q1 39,1 Q2 4,6 202 2 Q3 6,9 Revenue and profit – B3 Poland
Slide 21: B3 Poland - the growth journey continues
B3 Poland - the growth journey continues A successful acquisition lays the foundation for continued growth • B3 acquires 40% of the shares, increasing the ownership to 90%. • The price is expected to be approximately 27 MPLN/ 72MSEK • B3 Poland will become a subsidiary within the B3 Group as of Augu
Slide 22: Summary Q2 2024
Summary Q2 2024 We are strengthening our competitiveness and preparing for growth • Weak quarter - the market remains challenging, but it will turn around • The utilization rate has a positive trend • Cost saving programs are progressing as planned • The acquisition of Webstep and B3 Poland, combine
Slide 23: Q&A
Q&A
Slide 24: Appendix
APPENDIX
Slide 25: Market Outlook
Market Outlook Still demanding market - AI is having a growing impact • The market is still challenging, particularly in systems development • B3 operates in many markets through its 25 subsidiaries • The Swedish IT market has been weak in recent quarters, but it is expected to recover. However, the
Slide 26: Revenue and profit
26 Q1 247,8 Q2 218,6 882 2020 Q3 163,5 Q4 221,5 Q1 227,8 Q2 233,5 846 2021 Q3 189 Q4 271,6 Q1 290,5 Q2 289,5 1 041 2022 Q3 235,8 Q4 332,3 Q1 324,6 Q2 299,3 1 192 2023 Q3 223,3 Q4 293,6 281,3 Revenue MSEK per quarter and R12 Q1 2024 1 065 Q2 266,4 Revenue and profit Development over the past five yea
Slide 27: Distribution across different industries
Distribution across different industries B3 operates in several interesting industries driven by digitalization Revenue share per industry Jan-June 2024 Banking, finance, insurance 19% (20%) (Jan-June 2023) Industry 16% (14%) Government agencies, municipalities 15% (13%) Care 13% (13%) IT, media, en
Slide 28: 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 80% 60% 40% 20% 0% -20% Digital Experience & S olutions 36,5% (39,4%) Digital Experience & S olutions -14,0% (37,8%) Dig
Slide 29: nil
nil