Slide 1: Investor Meeting
Investor Meeting Financial Statements as at 31.03.24
Slide 2: Remembering the murdered and the fallen
With love and longing, we remember our loving and kind director and friend, Aviv Kutz and his family – his wife Livnat and their three children, Rotem, Yonatan, and Yiftach Sgt. Major (res) Elias Moshayoff, 33, Pardes Hannah-Karkur, 261st Division Soldier in Battalion 6261, fell in battle in Gaza, 2
Slide 3: Forward-looking statements disclaimer
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 be affected by fac
Slide 4: Leadership & Growth Characteristics - 11,200 Professionals
For 18 consecutive years, we have been leading the information technology market and performing the most advanced IT projects in Israel using the most up-to-date technology for the leading customers in the economy. 11,200 Professionals Leadership & Growth Operating Segments Characteristics • Israel
Slide 5: 11,200 Professionals, Leading Partners, Analyst Ratings
For 18 consecutive years, we have been leading the information technology market and carrying out innovative IT projects in Israel using the most current technologies for the leading customers in the economy 11,200 Professionals Leading Partners Analyst Ratings Market leader in added value services
Slide 6: Q1/24 - A record quarter for organic growth
Q1/24 - A record quarter for organic growth Record growth in sales, gross profit, operating profit and net profit Sales - 12.6% growth to NIS 1.45 billion Gross profit - 9.8% growth to NIS 207 million Operating profit - 9.1% growth to NIS 110.7 million Net profit - 9.3% growth to NIS 71.4 million Ne
Slide 7: The War's Impact
The War’s Impact As of the financial statements and the reporting date, 165 and 175 of the Company's employees (respectively) are on active reserve duty. The impact of the expected partial government reimbursement for them during the year's first quarter is insignificant. The activity of the trainin
Slide 8: Q1/24 - A record quarter from organic growth
Q1/24 - A record quarter from organic growth Geographic information Q1.24 Q1.23 Change in % Revenues Revenues from customers in Israel 1,355,242 1,205,301 12.4% Revenues from customers in the United States 118,690 107,870 10.0% Revenues from customers in Europe 21,250 19,483 9.1% Inter-segmental adj
Slide 9: Q1/24 - A record quarter from organic growth
Q1/24 - A record quarter from organic growth Geographic information Q1.24 Q1.23 Change in % Revenues Revenues from customers in Israel 1,355,242 1,205,301 12.4% Revenues from customers in the United States 118,690 107,870 10.0% Revenues from customers in Europe 21,250 19,483 9.1% Inter-segmental adj
Slide 10: Q1/24 - A record quarter from organic growth
Q1/24 - A record quarter from organic growth Geographic information Q1.24 Q1.23 Change in % Revenues Revenues from customers in Israel 1,355,242 1,205,301 12.4% Revenues from customers in the United States 118,690 107,870 10.0% Revenues from customers in Europe 21,250 19,483 9.1% Inter-segmental adj
Slide 11: Q1/24 - A record quarter from organic growth
Q1/24 - A record quarter from organic growth Geographic information Q1.24 Q1.23 Change in % Revenues Revenues from customers in Israel 1,355,242 1,205,301 12.40% Revenues from customers in the United States 118,690 107,870 10.0% Revenues from customers in Europe 21,250 19,483 9.1% Inter-segmental ad
Slide 12: Q1/24 - A record quarter from organic growth
Q1/24 - A record quarter from organic growth Geographic information Q1.24 Q1.23 Change in % Revenues Revenues from customers in Israel 1,355,242 1,205,301 12.4% Revenues from customers in the United States 118,690 107,870 10.0% Revenues from customers in Europe 21,250 19,483 9.1% Inter-segmental adj
Slide 13: Q1/24 - A record quarter from organic growth
Q1/24 - A record quarter from organic growth 9.3% of revenues and 16.3% of operating profit are from customers abroad Revenues Presented Geographically Q1.24 Q1.23 Revenues from customers in Israel 90.7% 90.4% Revenues from customers in the United States 7.9% 8.1% Revenues from customers in Europe 1
Slide 14: Q1/24 - A record quarter from organic growth
Q1/24 - A record quarter from organic growth ▪ Advantage of diversification – a wide range of products/services, sectoral, technological, and geographic distribution ▪ Consistent growth of revenues and profit in the US ▪ Strong growth in the financial sector, government sector, security establishmen
Slide 15: Breakdown of revenues by areas of operations of customers
Breakdown of revenues* by areas of operations of customers 16% Government and Defense 27% Financial High-Tech 12% Industry, Communications, and Retail Health and Transportation 13% 18% Other 14% * According to 2023 revenues
Slide 16: Q1/2024 Financial Statements
Q1/2024 Financial Statements
Slide 17: Summary of Q1/2024 - Main results (in millions of NIS)
Summary of Q1/2024 – Record quarter in all parameters Main results (in millions of NIS) Revenues Gross profit Operating profit* 10.5% 11.7% 12.9% 4YR 4YR 4YR CAGR CAGR CAGR +12.6% +9.8% +9.1% 1,454 1,291 207.1 188.6 110.7 1,109 1,158 167.8 101.5 974 153.6 92.1 133.2 81.9 68.0 13.7% 13.9% 14.5% 14.6%
Slide 18: Summary of Q1/2024 - Main results (in millions of NIS)
Summary of Q1/2024 – Record quarter in all parameters Main results (in millions of NIS) Net income to Adjusted EBITDA* Net income** 12.3% 13.5% 14.8% shareholders** 4YR 4YR 4YR CAGR CAGR CAGR +7.7% 124.8 +9.3% +13% 115.9 68.6 106.5 68.0 71.4 95.6 65.3 59.1 60.7 78.4 55.1 48.4 43.1 39.5 8.3% 8% 9.2%
Slide 19: Israel Operations
Israel Operations
Slide 20: Operations in Israel - Q1/2024 (in NIS millions)
Operations in Israel* - Q1/2024 (in NIS millions) 11.2% Revenues - 12.4% growth in the 17.2% Operating profit - 10% growth in 4YR CAGR quarter 4YR CAGR the quarter +12.4% +10% 1,376 98 1,225 89 1,051 1,107 82 74 899 52 1-3.2020 1-3.2021 1-3.2022 1-3.2023 1-3.2024 1-3.2020 1-3.2021 1-3.2022 1-3.2023
Slide 21: Operating segments in Israel - Q1/2024
Operating segments in Israel - Q1/2024 (in NIS thousands) Revenues Operating profit Q1/2024 Q1/2023 % Q1/2024 Q1/2023 % Information technology solutions and services, consulting, and management 794,264 736,005 7.9% 61,589 54,230 13.6% in Israel Profit margin (%) 7.8% 7.4% Organic growth in volumes d
Slide 22: Operating segments in Israel - Q1/2024
Operating segments in Israel - Q1/2024 (in NIS thousands) Revenues Operating profit Q1/2024 Q1/2023 % Q1/2024 Q1/2023 % Information technology solutions and services, consulting, and management in 794,264 736,005 7.9% 61,589 54,230 13.6% Israel Profit margin (%) 7.8% 7.4% Cloud and computing infrast
Slide 23: Operating segments in Israel - Q1/2024
Operating segments in Israel - Q1/2024 (in NIS thousands) Revenues Operating profit Q1/2024 Q1/2023 % Q1/2024 Q1/2023 % Information technology solutions and services, consulting, and management in 794,264 736,005 7.9% 61,589 54,230 13.6% Israel Profit margin (%) 7.8% 7.4% Cloud and computing infrast
Slide 24: Operating segments in Israel - Q1/2024
Operating segments in Israel - Q1/2024 (in NIS thousands) Revenues Operating profit Q1/2024 Q1/2023 % Q1/2024 Q1/2023 % Information technology solutions and services, consulting, and management in 794,264 736,005 7.9% 61,589 54,230 13.6% Israel Profit margin (%) 7.8% 7.4% Cloud and computing infrast
Slide 25: US Operations
US Operations Created in Midjourney AI platform
Slide 26: Operating segments - Q1/2024
Operating segments - Q1/2024 (NIS thousands) Revenues Operating profit Q1/2024 Q1/2023 % Q1/2024 Q1/2023 % Information technology solutions and services, consulting, and management in 794,264 61,589 Israel Information technology solutions and services, consulting, and management in 118,690 107,870 1
Slide 27: Operations in the US - Q1/2024 (in NIS millions)
Operations in the US - Q1/2024 (in NIS millions) Operating profit -15.4% growth to NIS 17 million Revenues - 10% growth to NIS 118.7 million An increase in the operating profit margin to 14.3% 11% 26.8% 3YR 3YR CAGR CAGR 17 118.7 14.7 107.9 95 87 10.3 8.3 1-3.2021 1-3.2022 1-3.2023 1-3.2024 1-3.2021
Slide 28: Operations in the US - Q1/2024 (in USD millions)
Operations in the US - Q1/2024 (in USD millions) Operating profit - 10.3% growth to USD 4.6 million Revenues - 6.3% growth to USD 32.4 million and increase in profit margin to 14.3% 6.8% 21% 3YR 3YR CAGR 32.4 CAGR 4.6 29.7 30.5 4.2 26.6 3.2 2.6 1-3.2021 1-3.2022 1-3.2023 1-3.2024 1-3.2021 1-3.2022 1
Slide 29: Breakdown of revenues and profit by operating segment in Q1/2024
Breakdown of revenues and profit by operating segment in Q1/2024 Revenues Contribution to profit 1% 3% 7% 6% Software Services 8% Cloud and 15% Infrastructures US Operations 53% 54% 29% Software 24% Training and implementation
Slide 30: Financial Indexes
~¢&. matrix ore Financial Indexes are
Slide 31: Financial indexes (NIS millions)
Financial indexes (NIS millions) 31.03.24 31.03.2023 Cash flows from current operations - LTM Cash and cash equivalents 561 640 Unused credit facilities* 1,377 1,448 Total liquid assets 1,938 2,088 540.4 490.9 +47.8% * Of which NIS 500 million comitted credit facilities 365.6 Cash flows from current
Slide 32: Financial indexes (NIS millions)
Financial indexes (NIS millions) 406 1,083 31.03.24 31.12.23 Series B Debentures Shareholder’s equity Shareholders’ equity 1,083 1,107 % of total balance sheet 26.5% 27.1% 242 Equity/Debt Loans from structure Financial debt, gross 913.7 956.4 Financial Institutions Financial debt, net 352.9 316.2 Cu
Slide 33: Decrease in cash interest expenses for fifth consecutive quarter
Decrease in cash interest expenses for fifth consecutive quarter 2023 2024 Q1 Q2 Q3 Q4 Q1 31.03.23 30.06.23 30.09.23 31.12.23 31.03.24 5% 4% 3% Bank of Israel 2% Interest Rate 1% 0% 18.9 16.9 17.0 Breakdown of 16.6 15.4 financing expenses (in NIS millions) 4.9 10.5 5.7 7.6 8.9 12.0 9.7 9.4 8.4 7.7 I
Slide 34: Dividends of NIS 51.5 million
Dividends of NIS 51.5 million. (NIS 0.81 per share)
Slide 35: Technology services, software marketing and distribution, training, hardware and infrastructure
Results, strength , potentia l , Technology services, software marketing and distribution, training, hardware and infrastructure, cloud computing, management consulting, civil engineering, call centers, printing outsourcing, smart campuses and multimedia, export of security systems, extensive operat
Slide 36: Diversification Stability Growth
Results, strength , potentia l Diversification Stability Growth
Slide 37: Quarter summary and forecasting ahead
Quarter summary and forecasting ahead Record results! Significant growth of operations, entirely organic The largest IT company in Israel, and market leader in the cyber, cloud, digital, and data sectors Significant, stable, and growing activity in the US Acceleration of future growth rates through
Slide 38: Thank you!
Thank you! Results, strength, potential