Proact It Group Ab · OMXSTO:PACT
Proact It Group Ab — Q2 2020 Earnings Presentation
18 slides from Proact It Group Ab's earnings presentation, Jul 15, 2020
Slide 1: Summary Q2 2020
Summary Q2 2020 15 July, 2020 Jonas Hasselberg CEO and President jonas.hasselberg@proact.eu Jonas Persson CFO www.proact.eu jonas.persson@proact.eu
Slide 2: Agenda
Agenda • Proact introduction AGENDA • Quarter in brief • Key developments • Financial results • Summary
Slide 3: Proact Introduction
Proact Introduction FI NO SE EE Founded in 1994 LV DK LT System and multi-cloud specialist NL UK BE 3,500 MSEK turnover DE CZ SK Over 1,000 employees at 37 offices HQ in Stockholm, Sweden Four BU’s with service delivery hubs
Slide 4: Quarter in brief – record Q2 for Proact
Quarter in brief – record Q2 for Proact + Revenue up 22% to 987 MSEK – Total contract value of 77 (96) MSEK + EBITA up 53% to 56.3 MSEK – Covid-19 uncertainties + Improved EBITA margin to 5.7% + 48% up in Cloud revenue + 7% organic growth of Services + Cost savings program of -40 MSEK + Strong cash
Slide 5: Improvements in BU West
Improvements in BU West Q2 & Q3 2019 Challenges in Germany & Netherlands Improvements and efficiencies initiated Q4 2019 Sales recovery in Germany Acquisition of PeopleWare in NL Q1 2020 Closure of Area North in Germany Positive contributions from PeopleWare Q2 2020 EBITA margin improvement New MDs
Slide 6: Portfolio launches
Portfolio launches • New! Service Management for Public Cloud • New! Wide Area Network as-a-Service • New! BaaS-E support for Multicloud • Update! Proact Hybrid Cloud 2.0
Slide 7: Scope and Outcome
• Need for scalable and modernised platform • High security demand from 300.000 end customers Scope • Need for partner with capabilities to manage, support and secure platform • Scalable and secure solution making use of multicloud • On-premise IT-infrastructure platform Outcome • Add-on cloud servi
Slide 8: Income Statement Q2 2020
Income Statement Q2 2020 (MSEK) Apr-Jun 2020 Apr-Jun 2019 System Sales 624.9 523.2 Services 361.5 282.9 Other 0.1 0.4 TOTAL REVENUE SYSTEM SALES SERVICES SALES Revenue Products and services 986.6 -772.1 806.4 -620.8 GROWTH MSEK GROWTH MSEK GROWTH MSEK Gross profit 214.5 185.6 Gross margin 21.7% 23.0
Slide 9: Income Statement YTD 2020
Income Statement YTD 2020 (MSEK) Jan-Jun 2020 Jan-Jun 2019 System Sales 1,102.2 1,152.1 Services 727.5 563.4 Other 0.7 0.7 TOTAL REVENUE SYSTEM SALES SERVICES SALES Revenue Products and services 1,830.3 -1,415.2 1,716.2 -1,333.0 GROWTH MSEK GROWTH MSEK GROWTH MSEK Gross profit 415.1 383.2 Gross marg
Slide 10: Income Statement Rolling 12 Months
Income Statement Rolling 12 (MSEK) Jul-Jun 2020 Jul-Jun 2019 Months System Sales Services Other 2,153.1 1,367.2 1.7 2,270.5 1,135.6 1.6 Revenue 3,522.0 3,407.7 Products and services -2,701.4 -2,626.3 TOTAL REVENUE SYSTEM SALES SERVICES SALES Gross profit 820.6 781.4 Gross margin 23.3% 22.9% GROWTH M
Slide 11: Revenue & EBITA in Q2 per Business Unit
Revenue & EBITA in Q2 per Business Unit • Revenue growth in Nordics of 24%. System 2020 2019 April - June April – June revenue increased by 31% during the quarter Revenue EBITA Net Revenue EBITA Net and Services revenue by 5%. (MSEK) margin margin • In UK revenues decreased by 5%, however Nordics UK
Slide 12: Revenue & EBITA YTD per Business Unit
Revenue & EBITA YTD per Business Unit • Revenue growth in Nordics of 3%. Improved 2020 2019 January – June January - June profitability in both system and service Revenue EBITA Net Revenue EBITA Net operation and 3% lower cost. (MSEK) margin margin Nordics 879 55.9 6.4% 853 35.6 4.2% • In UK revenue
Slide 13: Cash flow in Q2
Cash flow in Q2 Liquid Funds March 31, 2020 290 • Positive change in working capital after a weak Cash-flow from current operations 179 Q1 Current operations 93 • Fixed assets; Proact Finance -17 MSEK Change in working capital 86 Cash-flow from investment activities -21 • Repayment of Leasing Liabil
Slide 14: Cash flow January-June 2020
Cash flow January-June 2020 Liquid Funds December 31, 2019 373 • Negative change in working capital -25 Cash-flow from current operations 149 MSEK but still +72 MSEK on 12 months rolling Current operations 174 • Fixed assets; Proact Finance -28 MSEK Change in working capital -25 Cash-flow from inves
Slide 15: Balance sheet
Balance sheet 2020 2019 2019 • Solidity of 20% (MSEK) Jun 30 Dec 31 Jun 30 • Cash position of 389 MSEK Total Assets 2,888 2,877 2,321 whereof Goodwill 507 516 404 • Net debt of 108 MSEK, improved since end whereof Intangible fixed assets 77 93 60 of Dec 2019 whereof Accounts receivables 582 613 411
Slide 16: Financial Goals
SALES GROWTH FINANCIAL TARGET OUTCOME 3,522 MSEK GOALS >10% 3% Rolling 12 months EBITA MARGIN TARGET OUTCOME* Adjusted for one-time costs 8% 5.2% NET DEBT/EBITDA TARGET OUTCOME IFRS16 impact of 266 MSEK <2 0.33 ROCE TARGET OUTCOME Impacted by IFRS 16 and one-time costs >25% 15.1% DIVIDEND TARGET OUT
Slide 17: Summary
Summary • Record sales, results and cashflow in a Q2 • Strong services growth • Demand for mission-critical data solutions
Slide 18: Thank you
PROACT Thank you www.proact.eu in@ fiv