Softwareone Holding Ltd. · SIX:SWON
Softwareone — Q1 2025 Earnings Presentation
30 slides from Softwareone's earnings presentation, May 21, 2025
Slide 1: Q1 2025 Trading update
Q1 2025 Trading update 21 May 2025
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA OR JAPAN, OR ANY OTHER JURISDICTION IN WHICH THE DI
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) Forward-looking statements This Presentation may contain certain forward-looking statements relating to the Company and/or the Group and its future business, development and economic performance. Forward-looking statements concern future circumstances and results and other statem
Slide 4: Agenda
Agenda 01 Update on Crayon 02 Q1 2025 highlights Raphael Erb, CEO 03 Financial performance 04 2025 outlook 05 Q&A Rodolfo Savitzky, CFO 4
Slide 5: SoftwareOne + Crayon – transaction update
SoftwareOne + Crayon – transaction update • Tender offer successful with SoftwareOne reaching >90% of Crayon • Large majority shareholder approval at SoftwareOne EGM • Integration planning underway to ensure Day 1 readiness • Closing expected in June 2025, subject to remaining regulatory approvals •
Slide 6: Compelling strategic and financial rationale
Compelling strategic and financial rationale Highly complementary geographical footprint, customer base and offering Uniquely positioned to capitalise on fast-growing USD 150 billion market Increased strategic importance to vendors Enhanced distribution capabilities with aligned GTM model Scalable d
Slide 7: Combined financial overview
Combined financial overview SoftwareOne Crayon(2) Illustrative combination FY 2024(1) (excluding synergies) Gross billings 11.4 4.8 16.1 (CHFbn) Revenue 1,017 560 1.6bn (CHFm, % growth YoY ccy) 2.9% 8.2% 4.7% Adj. EBITDA 223 94 317 (CHFm, % margin) 22.0% 16.7% 20.1% No. of FTEs ~9,000 ~4,000 ~13,000
Slide 8: Accelerated growth and profitability driven by substantial tangible synergies
Accelerated growth and profitability driven by substantial tangible synergies Key synergy areas Expected phasing of cost synergy realisation • Access to expanded customer base and larger accounts given % of run-rate target synergy amount combined capabilities Revenue • Cross & upsell opportunities b
Slide 9: Integration planning ongoing for Day 1 readiness
Integration planning ongoing for Day 1 readiness Indicative transaction timetable Announcement Tender offer SoftwareOne Expected closing Integration execution & period EGM cost synergy achievement ● ● ● ● Dec 2024 14 March 11 April 6 May June 2025 Dec 2026 Integration planning Integration ambition •
Slide 10: Q1 2025 highlights
Q1 2025 highlights Raphael Erb CEO 10
Slide 11: Margin improvement despite revenue decline in Q1 2025
Margin improvement despite revenue decline in Q1 2025 CHFm Q1 2025 Q1 2024 % YoY (ccy) Revenue 232.2 246.9 (5.7)% Contribution margin 147.8 159.3 (7.1)% Adj. EBITDA 46.0 45.4 2.3% Margin (% revenue) 19.8% 18.4% +1.4pp 11
Slide 12: Mixed performance by region
Mixed performance by region Q1 2025 revenue by region CHFm, % YoY (ccy) growth DACH rEMEA 71.4 71.3 (4.3)% (1.1)% NORAM 27.4 (31.3)% APAC LATAM 22.8 38.3 +15.9% (2.9)% 12
Slide 13: Continued momentum in Marketplace billings; revenue impacted by changed vendor incentives
Continued momentum in Marketplace billings; revenue impacted by changed vendor incentives Software & Cloud Marketplace Software & Cloud Services Revenue, CHFm, % YoY growth (ccy) Revenue, CHFm, % YoY growth (ccy) (11.3)% +0.1% 125.6 121.3 121.2 111.0 Q1 2024 Q1 2025 Q1 2024 Q1 2025 • Microsoft gross
Slide 14: Further action taken to address NORAM GTM-related challenges
Further action taken to address NORAM GTM-related challenges Challenges Key actions taken People • Continued GTM-related disruption ✓ Leadership strengthened with EB interim support due to re-definition of roles and re- ✓ Strategic re-hires in May for other ISVs shuffling of client accounts ✓ Furthe
Slide 15: Successful completion of cost reduction programme, with CHF 88 million annualised savings
Successful completion of cost reduction programme, with CHF 88 million annualised savings Annualised cost savings Cumulative, CHFm 88 • Overachievement compared to raised target of CHF 70 million Corporate & 70 support functions • Geared towards restoring customer- centricity and agility to drive su
Slide 16: SoftwareOne wins DKK 1.5 bn 4-year framework agreement with the Danish government
SoftwareOne wins DKK 1.5 bn 4-year framework agreement with the Danish government Customer: Danish government Segment: Public sector Contract: DKK 1.5bn total cloud consumption spend framework agreement over 4 years for all Danish ministries Scope: Strategic partner for cloud entry across Microsoft,
Slide 17: Case study: Oxygen Finance uses AI to provide more insights to clients
Case study: Oxygen Finance uses AI to provide more insights to clients and drive productivity Challenge • Manual review of thousands of public sector records monthly by a small team • Difficulty in keeping up with the volume of public sector publications Oxygen Finance, a UK-based fintech, helps • N
Slide 18: Financial performance
Financial performance Rodolfo J Savitzky CFO 18
Slide 19: Revenue down 5.7%, with adj. EBITDA margin improving to 19.8%
Revenue down 5.7%, with adj. EBITDA margin improving to 19.8% P&L summary • Revenue down 5.7% CHFm Q1 2025 Q1 2024 % Δ Rep % Δ CCY(1) YoY ccy in Q1 2025 with mixed regional Revenue 232.2 246.9 (6.0)% (5.7)% performance • Q1 impacted by Delivery costs (84.4) (87.7) (3.7)% (3.2)% expected vendor incen
Slide 20: Slight increase in adj. EBITDA driven by delivery and SG&A savings
Slight increase in adj. EBITDA driven by delivery and SG&A savings Adjusted EBITDA bridge(1) • Negative revenue impact CHFm offset by delivery and SG&A savings from cost reduction programme 45.4 3.3 46.0 8.9 • Re-establishment of a lean and sustainable cost structure 2.6 (14.3) • Continued strict co
Slide 21: Adj. EBITDA margin improvement across business lines; corporate costs down 5%
Adj. EBITDA margin improvement across business lines; corporate costs down 5% driven by cost reductions Business line P&L Corporate costs • Marketplace revenue CHFm Software & Cloud Marketplace Software & Cloud Services decline mainly driven by % Δ CCY(1) Q1 2025 % Δ CCY(1) Microsoft transactional Q
Slide 22: 2025 outlook
2025 outlook Raphael Erb CEO 22
Slide 23: Full-year 2025 outlook
Full-year 2025 outlook • Full-year guidance 2025 2026 confirmed based on a Guidance turnaround in NORAM and strong positive momentum in H2 2025 Revenue growth(1) 2-4% Double-digit • Growth expected to Adj. EBITDA margin remain negative in Q2 24-26% Approaching 27% 2025 at a similar level to (% reven
Slide 24: Q&A
Q&A 24
Slide 25: Appendix
Appendix 25
Slide 26: Definitions of key alternative performance measures
Definitions of key alternative performance measures Adjusted EBITDA is defined as the underlying earnings before net financial items, tax, depreciation and amortisation, adjusted for items affecting comparability in operating expenses Adjusted EBITDA margin is defined as adjusted EBITDA divided by r
Slide 27: Adjusted EBITDA bridge
Adjusted EBITDA bridge CHFm Q1 2025 Q1 2024 Reported EBITDA 26.7 28.7 Impact of change in revenue recognition of Microsoft Enterprise Agreements 0.5 0.3 Integration, M&A and earn-out expenses 1.5 3.1 Operational excellence restructuring expenses - 4.1 GTM restructuring expenses - 5.1 Cost reduction
Slide 28: Business line profit & loss summary
Business line profit & loss summary Software & Cloud Marketplace Software & Cloud Services Corporate %Δ %Δ CHFm Q1 2025 % Δ Rep Q1 2025 % Δ Rep Q1 2025 Q1 2024 CCY(1) CCY(1) Revenue 111.0 (11.3)% (11.6)% 121.2 0.1% (0.1)% - - Delivery costs (15.0) (13.0)% (14.0)% (69.4) (0.7)% (1.2)% - - Contributio
Slide 29: Quarterly summary by business line
Quarterly summary by business line CHFm FY2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Revenue Solutions & Cloud Marketplace 533.6 121.9 152.8 119.4 151.2 545.3 125.6 151.0 121.0 152.2 549.7 125.6 160.2 119.9 126
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