B3 Consulting Group Ab · OMXSTO:B3
B3 Consulting Group Ab — Q4 2023 Earnings Presentation
31 slides from B3 Consulting Group Ab's earnings presentation, Oct 25, 2024
Slide 1: Interim Report B3 Consulting Group Q4 2023
Interim Report B3 Consulting Group Q4 2023
Slide 2: Speakers from B3 Consulting Group
Speakers from B3 Consulting Group Questions? Please click on the envelope icon next to the audiocast or send an email to: ir@b3.se CEO HEAD OF COMMUNICATIONS & IR Sverre Bjerkeli Katarina Lundqvist CEO B3 FINANCIAL CONSULTING CHIEF AI ENABLER Anna Abrahamsson Hägg Christian Lauritzen
Slide 3: Martin Stenström – new CEO
Martin Stenström – new CEO • Martin Stenström has been appointed new CEO of B3 • He takes up the position on April 25th 2024 • Martin Stenström joined B3 in 2018 and has extensive experience in leading and developing B3 as the current business unit manager for BU Cloud & Technology Platforms • Marti
Slide 4: eNPS
eNPS 52
Slide 5: Highlights FY2023 and Q4
Highlights FY2023 and Q4 Second best year in history in a challenging market Full-year 2023 • Revenue 1 140.8 (1 148.1) MSEK, -0.6% growth • EBITDA 107.3 (158.3), EBITDA margin 9.4% (13.8%) • Profit after tax 68.4 (114.7) MSEK • Earnings per share after dilution 7.12 (11.79) SEK • Average number of
Slide 6: Financial overview Group
Financial overview Group -0,6% growth and EBITDA 9,4% Q4 Jan-Dec Extract of B3's key figures 2023 2022 Δ% 2023 2022 Δ% § Second best year ever Net Sales, SEK million 293,6 332,3 -11,6% 1 140,8 1 148,1 -0,6% EBITDA, SEK million 18,6 44,7 -58,4% 107,3 158,3 -32,2% § The market is EBITDA margin, % 6,3%
Slide 7: Revenue breakdown
Revenue breakdown Utilization at same level as in Q3 Revenue breakdown fourth quarter (MSEK)* § Utilisation in Q4 is at 4 4 same low level as in Q3 332 -3 -11 -3 294 § -11 mill in subcontractors -27 is a technical issue (from subcontractor to pass - through) § In 2024 we will update market on runnin
Slide 8: One new Start Up has been a failure
One new Start Up has been a failure A loss sized 10 MSEK in 2023 – but only 1 of 6 start-ups has failed • B3 Grit is now integrated with other subsidiaries • We have consolidated the company into the Q4 figures and included a settlement cost of 4.5 MSEK and we have had a total loss of 10 MSEK during
Slide 9: Market Outlook
Market Outlook Continues to be challenging, we adapt quickly - “accelerate and brake” • 3 of 4 quarters in 2023 has been challenging • The market continues to be demanding and we do not know when the market will turn. • IT mega trend is on our side and AI creates an even more complex environment for
Slide 10: Alternative financial overview incl. B3 Poland
Alternative financial overview incl. B3 Poland 2.2% organic growth and EBITDA at 10.2% - Poland with best ever result Q4 Jan-Dec Alternative key figures with B3 Poland fully consolidated² 2023 2022 Δ% 2023 2022 Δ% Net sales incl. B3 Poland, MSEK 333,9 368,7 -9,4% 1 297,3 1 269,5 2,2% EBITDA incl. B3
Slide 11: Customers and new business
Customers and new business Extended and new framework agreements • B3 has received an extended framework agreement with Länsförsäkringar and an extended and expanded framework agreement with one of Sweden's largest banks • B3 has been awarded a new framework agreement with a prominent manufacturer i
Slide 12: One new Start Up to come
One new Start Up to come B3 strengthens the positions in Linköping/Norrköping • A new startup has been launched in the Linköping/Norrköping region • It is a strong market with many prominent organisations both in industrial-, public- and defense sector • B3 "Newco" will primarily focus on offering c
Slide 13: Successful events in 2023
Successful events in 2023 B3 celebrated 20 years and achieved new milestones • B3 celebrated 20 years throughout the year! • B3 was awarded the IT consulting company of the year at the event Developers Day • B3 was one of the finalists in Career company of the year and B3 is also nominated in 2024 •
Slide 14: Entering 2024 We accelerate and break at the same time
Entering 2024 We accelerate and break at the same time In order to get out stronger on the other side 14
Slide 15: B3 is not "a company" in one market
B3 is not ”a company” in one market Many are doing very well, other are struggling more 20,0 17,5 15,0 12,5 EBITDA%* 10,0 7,5 5,0 Note that 2 companies has been 2,5 excluded; one with EBITDA% <0% and one with growth >35% to make the scale of the picture more visually proper 0,0 -25 -15 -5 7,5 15 25
Slide 16: Costsaving - "HedgeHog" - raised targets
Costsaving - "HedgeHog" - raised targets 8 MSEK new investments to drive future growth -41 mSEK 11,0% 10,9% 130 10,1% 11 § Total savings planned: 49 10,0% 125 9,7% 10 MSEK of which.. 120 8,4% 9 § 6 MSEK allocated to 9,0% subsidiaries 115 7,6% 8 § 3 MSEK one-off costs 110 7 6,0% § New investments: 8
Slide 17: Costsaving - HedgeHog – Moving faster
Costsaving - HedgeHog – Moving faster 100% effect entering Q3, > 90% effect in Q2 50 110 100% 100% 100% 100% § 100% running rate at the 45 100 start of Q3-24 40 41 83% 90 § Note that 6 MSEK of 40 38 savings is allocated to 74% 80 subsidiaries 35 31 33 70 30 32 50% 29 60 25 24 50 24 2038% 17 40 15 13
Slide 18: Let’s accelerate in AI
Let’s accelerate in AI B3 strives to be one of the leading players in Sweden • We gather the expertise, s strengthen our offer and build the position within AI • At least 100.000 hours will be invested in training our employees, funded by client’s projects, employees and the company • All levels inv
Slide 19: Let’s accelerate in Bank, Finance and Insurance
Let’s accelerate in Bank, Finance and Insurance B3 strengthens the position with more than 150 assignments in the financial sector 2023.
Slide 20: B3 in Bank, Finance and Insurance
B3 in Bank, Finance and Insurance Two locomotives within finance, highlighting all of B3’s skills • B3 Visab and B3 Financial Consulting are the two subsidiaries of B3 that specialize in finance. • Together, we have about 65 employees. However, in 2023, B3 had approximately 150 assignments in the Su
Slide 21: Strong growth while maintaining profitability
Strong growth while maintaining profitability Industry expertise is a winning strategy • B3 Financial Consulting had a positive revenue growth in 2023 (19%) with maintained profitability. • During 2023 B3 Financial Consulting shaped the organisation into three desired skillsets. • Agile Management •
Slide 22: Team B3 Financial Consulting
Team B3 Financial Consulting We take pride in our differences Our team consists of: We love to: • 30 consultants (+6) • team up during Swedish fika • 40% women 60% men • continuous to learn and grow • Age span 26 to 73 • coach one another • 6 nationalities • celebrate good examples All with great in
Slide 23: Summary
Summary We will emerge stronger from a weaker market • 2023 was second best in B3’s history despite a demanding market o EPS up from 5.32 SEK in 2021 (3.rd best) to 7.12 SEK in 2023 • Our cost ambition is raised to 41 MSEK and we move faster • We have a strong market position and a solid business mo
Slide 24: Q&A
Q&A 24
Slide 25: Appendix
Appendix 25
Slide 26: B3 Consulting Group
B3 Consulting Group 20 years of building a successful group of companies • Consulting company within IT and management • Founded in 2003 • 800 co workers in Sweden and 200+ in Poland • 11 Offices in Stockholm, Borlänge, Gävle, Gothenburg, Jönköping, Linköping, Malmö, Sundsvall, Örebro, Krakow and Wa
Slide 27: Revenue and EBIT (R12)
Revenue and EBIT (R12) Strong long-term development, decreased growth in H2 2023 Revenue per quarter and R12 (MSEK) EBIT per quarter and R12 (MSEK) EBITDA per quarter and R12 (MSEK) 12,0% 13,8% 7,7% 7,5% 9,9% 9,4% 9,1% 3 years average 11,0% The dark gray line shows the development per rolling 12 mon
Slide 28: Cash flow
Cash flow Prudent cash management, net cash flow -34.5 Q4 Jan-Dec Cash flow 2023 2022 Δ% 2023 2022 Δ% Operating cash flow 42,9 74,8 -43% 62,9 150,9 -58% Net cash flow 48,9 9,7 404% -34,5 29,2 -218% Dividend 2023: 68 MSEK Net cash flow before dividends & purchase price 48,9 9,7 404% 52,9 59,2 -11% Fr
Slide 29: Share per Business Area
Share per Business Area Even distribution between the business areas Revenue, share per business area EBIT, share per business area 29
Slide 30: Spread across different industries
Spread across different industries Stability and risk diversification in a more uncertain market Share of revenue per industry, Jan-Dec 2023 (Jan-Dec 2022) 30
Slide 31: Creating Possibilities Together
Creating Possibilities Together