Slide 1: FY2022 Financial Presentation
SWORD GROUP FY2022 FINANCIAL PRESENTATION 9 March 2023 Sword Group - March 23 1
Slide 2: Organisation, Offer, Figures, Group's Share, Financial Key Dates
Organisation Offer UK | US BeNeLux | Greece | Spain | UE Switzerland | Canada Offshore | Middle East Figures Group’s Share Financial Key Dates Sword Group - March 23 2
Slide 3: Organisation
Organisation Sword Group - March 23 3
Slide 4: Organisation | Management Team
Organisation | Management Team Phil Norgate M&A Advisor CEO Dave Bruce Dieter Rogiers Jacques Mottard COO MIDDLE EAST CANADA SCOTLAND US & SWITZERLAND TEXAS UK LUXEMBOURG GREECE SPAIN TIPIK & INDIA SWITZERLAND Greg Phil Kevin Craig Michel Gregory Michael Gökçe Nasser Guillaume Olivier Anderson Bradi
Slide 5: Offer
Offer Sword Group - March 23 5
Slide 6: 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 Service C
Slide 7: Challenges
Challenges Sword Group - March 23 7
Slide 8: Challenges: Outlook & Strategy
Challenges Outlook & Strategy Outperformance +15%++ BP 2023-2024 Reassessment towards 2026 Booster Sustainability Strategy | Artificial intelligence Sword Group - March 23 8
Slide 9: UK | US
UK | US Sword Group - March 23 9
Slide 10: UK | US Performance
UK | US Performance 2022 Actual Budget Revenue (€m) 100.2 98.0 “Strong performance delivering EBITDA Margin (%) 14.2% 13.5% better data-driven decisions to the Energy, Finance & Public 2023 Budget Growth sectors” Revenue (€m) 118.0 +18.0% EBITDA Margin (%) 14.2% +18.0% 2022 Achievements 2023 Growth
Slide 11: Business Case UK | US
Business Case UK | US Sword Group - March 23 11
Slide 12: Our core capabilities
Our core capabilities PLATFORM DATA APPS SERVICES & SOLUTIONS NETWORKING GOVERNANCE DIGITILISATION SECURITY QUALITY WAYS OF WORKING INFRASTRUCTURE INSIGHT BUSINESS APPS DESIGN IMPLEMENT SUPPORT OUTCOMES Cost Productivity Risk Compliance Engagement Sword Group - March 23 12
Slide 13: Technology Development Partner: Video Enabled Policing
Technology Development Partner Video Enabled Policing Sword Group - March 23 13
Slide 14: Sword brings benefits to UK Policing -1-
Sword brings benefits to UK Policing -1- Video Enabled Policing (VEP) is transforming how police officers conduct interviews and provide witness evidence in court. Supported by existing investments in technology, officers and staff will be empowered to adopt new, improved ways of working. Strategic
Slide 15: Sword brings benefits to UK Policing -2-
Sword brings benefits to UK Policing -2- Sword as the Technology Development Partner, assisted the police in delivering its vision for digital capabilities by developing Microsoft Power Platform and Azure solutions in two critical areas: PACE Interview Coordination Police Witness Coordination Poli
Slide 16: Aligning our Capabilities to the VEP Programme
Technology Development Partner | Aligning our Capabilities to the VEP Programme PLATFORM DATA APPS SERVICES & SOLUTIONS M365: core platform Power Platform: low NETWORKING Data-Driven: facilitate GOVERNANCE DIGITILISATION Identity: managed the code solution, real time updates to identity for all SECU
Slide 17: BeNeLux | Greece | Spain | EU
BeNeLux | Greece | Spain | EU Sword Group - March 23 17
Slide 18: BeNeLux | Greece | Spain | EU Performance
BeNeLux | Greece | Spain | EU Performance 2022 Actual Budget “Becoming an important EU IT Revenue (€m) 84.4 69.2 player engaged in some of the EBITDA Margin (%) 9.1% 8.3% largest EC contracts, contributing 2023 Budget Growth (i) to the security, border control, Revenue (€m) 90.8 +15.0% Customs Union
Slide 19: Business Case BeNeLux | Greece | Spain | UE
Business Case BeNeLux | Greece | Spain | UE Sword Group - March 23 19
Slide 20: Framework Contractor: ETIAS & IOP
Framework Contractor ETIAS & IOP Sword Group - March 23 20
Slide 21: eu-LISA | Large scale IT systems
eu-LISA | Large scale IT systems Customer: eu-LISA (European Union Agency for the Operational Management of Large- Scale IT systems in the area of Freedom, Security and Justice) Primary CONCERNS for the EU and eu-LISA Making Europe a safer place to live, work and visit Guarantee Freedom, Securit
Slide 22: eu-LISA | ETIAS Project
eu-LISA | ETIAS Project ETIAS Project European Travel Information and Authorisation System Health and security screening to check if applicant meets entry requirements Visa exempt third-country nationals will apply for valid authorisation before crossing Schengen borders Sword’s role in ETIAS
Slide 23: eu-LISA | INTEROPERABILITY Project
eu-LISA | INTEROPERABILITY Project IOP Project Europe’s border security and migration relies “Authorities have, for the first time, upon large Europe-wide IT systems Getting these systems to work together is access to a single database of essential to strengthen security in EU Make sure that a
Slide 24: ETIAS & IOP Key facts
ETIAS & IOP Key facts A team of 56+ highly-skilled & certified IT professionals All team members have EU SECRET security clearance €12 20 Projected projects revenue: €12.0m 56 m % Projects with 20%+ profit margin Team Projected Profit members revenue Margin Challenges Client satisfaction H
Slide 25: Switzerland | Canada | Offshore | Middle East
Switzerland | Canada Offshore | Middle East Sword Group - March 23 25
Slide 26: Switzerland - Canada | Offshore - Middle East
Switzerland - Canada | Offshore - Middle East 2022 Actual Budget Revenue (€m) 81.2 76.6 “keeping our leadership position EBITDA Margin (%) 13.7% 12.5% in French speaking Switzerland and becoming a key actor in the 2023 Budget Growth Middle East” Revenue (€m) 97.4 +20.0% EBITDA Margin (%) 13.0% +14.0
Slide 27: Figures
Figures Sword Group - March 23 27
Slide 28: At a Glance
At a Glance IDENTITY FY2022 FY2022 FY2023 Successful, Growing, Financially Secure and Listed Performance Performance Performance (e) GRC included GRC excluded International €272.3m €265.7m €306m 1000+ customers 3 offshore | Consolidated Consolidated Consolidated Group in over 50 nearshore Revenue Re
Slide 29: Synthesis
Synthesis YEARS 2018 2019 2020 2021 2022 Revenue €m 194.3 213.2 212.5 214.6 272.3 265.7 (i) % Current EBITDA 14.0% 13.4% 13.9% 13.6% 12.9% 12.5% (i) % Organic Growth (ii) +18.3% +20.7% +9.2% +21.5% +26.3% Staff at 01/01/xxxx 2,030 2,067 2,337 1,902 2,329 Staff at 31/12/xxx 2,067 2,337 1,902 2,329 2,
Slide 30: FY2022 | Key Figures
FY2022 | Key Figures +28.5% Organic Growth on a like-for-like basis +26.3% at constant exchange rates €272.3m Consolidated FY2022 Revenue €265.7m GRC excluded 12.9% EBITDA margin 12.5% GRC excluded Sword Group - March 23 30
Slide 31: FY2022 | Breakdown - 1 -
FY2022 | Breakdown - 1 - €m (*) Group Consolidated Software IT Services Consolidated Revenue 272.3 6.5 265.7 Consolidated EBITDA 35.1 2.0 33.1 EBITDA Margin 12.9% 31.2% 12.5% Organic Growth at constant perimeter N/A N/A +28.5% Organic Growth at constant perimeter & constant exchange rate N/A N/A +26
Slide 32: FY2022 | Breakdown - 2 -
FY2022 | Breakdown - 2 - €m (*) FY2022 Revenue EBITDA Margin Organic Growth (i) Governance Risk & 6.5 31.2% N/A Compliance SOFTWARE 6.5 31.2% N/A BeNeLux | Greece | Spain | EU 84.4 9.1% +35.3% Switzerland | Canada 68.0 10.9% +26.3% UK | US 100.2 14.2% +20.2% Offshore Global Services 13.2 28.2% +18.0
Slide 33: FY2022 | Breakdown - 3 -
FY2022 | Breakdown - 3 - €m (*) Q4 Q3 Q2 Q1 Organic Growth (i) Organic Growth (i) Organic Growth (i) Organic Growth (i) Governance Risk & - - - +11.4% Comp. SOFTWARE - - - +11.1% BeNeLux | Greece | +36.8% +27.8% +41.4% +35.5% Spain | EU Switzerland | Canada +27.5% +31.5% +22.5% +24.1% UK | US +19.5%
Slide 34: FY2022 | Adjusted PnL
FY2022 | Adjusted PnL With no impact of share deal and amortization of backlog acquisition €m 2021 2022 Revenue 214.6 272.3 Current EBITDA 29.3 | 13.6% 35.1 | 12.9% Current EBIT 24.1 | 11.2% 29.8 | 11.0% Non Current Costs 3.4 (90.4) Financial Costs (1.0) 1.6 Corporate Tax 3.7 2.4 Net Profit after co
Slide 35: FY2022 Balance Sheet | Non-Current Assets
FY2022 Balance Sheet | Non-Current Assets €k 31.12.2021 31.12.2022 ASSETS NON-CURRENT ASSETS Goodwill 66,503 71,618 Net increase due to the Ping acquisition & the sale of GRC Other intangible assets 19,032 7,384 Decrease mainly due to the sale of GRC Property, plant & 3,171 4,649 equipment Asset
Slide 36: FY2022 Balance Sheet | Current Assets
FY2022 Balance Sheet | Current Assets €k 31.12.2021 31.12.2022 ASSETS CURRENT ASSETS Trade and other 32,415 32,173 receivables Work in progress 21,727 35,627 Increase due to revenue growth and new EU projects Current tax assets 664 855 Other assets 10,760 14,951 Increase due to consideration rec
Slide 37: FY2022 Balance Sheet | Financial Debt
FY2022 Balance Sheet | Financial Debt €k 31.12.2021 31.12.2022 EQUITY AND LIABILITIES EQUITY Share capital 9,545 9,545 Share premiums 70,676 70,676 Reserves 8,181 9,210 Retained earnings 4,510 11,376 TOTAL EQUITY - GROUP SHARE 92,912 100,807 Non-controlling interests (minority 1,416 737 interests) T
Slide 38: FY2022 Cash Flow | Extract
FY2022 Cash Flow | Extract €m 31.12.2021 31.12.2022 NET CASH FLOWS FROM OPERATING ACTIVITIES 17.3 14.7 NET CASH FLOWS (ALLOCATED TO) / FROM INVESTMENT ACTIVITIES (18.7) 98.8 NET CASH FLOWS ALLOCATED TO FINANCING ACTIVITIES (51.1) (111.3) Net change in cash and cash equivalents (52.5) 2.2 Effect of c
Slide 39: 2022 | Net Cash Position
2022 | Net Cash Position (i) 31/12/2022 Net Cash Position: €38.7m | €50.0m with the additional payment of the GRC made by TA Associates, which arrived on 04/01/2023 30/09/2022 Net Cash Position : €21.8m (i) excluding IFRS standards Sword Group - March 23 39
Slide 40: 2022 | Backlog
2022 | Backlog [30/09/2022] [31/12/2022] Backlog: Backlog: €483.0m €503.3m (22.3 months) (20.1 months) Sword Group - March 23 40
Slide 41: FY2022 | Staff
FY2022 | Staff 2,723 (i) 1,958 396 364 5 Total Onshore Nearshore Offshore Holding (i) Including 511 freelancers 2022 Turnover | 9.9% Sword Group - March 23 41
Slide 42: Sword Group's Share
Sword Group’s Share Sword Group - March 23 42
Slide 43: Share return | c. +23% per year
Share return | c. +23% per year €1.7 dividend proposed by the Board 0% +22% -1% +55% +13% 2018 Total Share 2019 Total Share 2020 Total Share 2021 Total Share 2022 Total Share Return (TSR) Return (TSR) Return (TSR) Return (TSR) Return (TSR) 01/01: €33.84 - 31/12: 01/01: €29.00 - 31/12: 01/01: €34.1
Slide 44: Financial Key Dates
Financial Key Dates Sword Group - March 23 44
Slide 45: Financial Calendar
Financial Calendar 31 PUBLICATIONS MEETINGS 26/04/2023 07/09/2023 2023 | Q1 Results SFAF Meeting | H1 2023 Results 20/07/2023 2023 | Q2 Results 07/03/2024 SFAF Meeting | 25/10/2023 FY2023 Results 2023 | Q3 Results 29/04/2024 25/01/2024 Annual 2023 | Q4 Results Shareholders Meeting | 20
Slide 46: Follow Sword
FOLLOW SWORD sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group Sword Group | 2 rue d’Arlon L-8399 Windhof - Luxembourg SE capital €9,544,965 - B168244