4ig Nyrt. · BET:4IG
4ig Nyrt — Q1 2020 Earnings Presentation
23 slides from 4ig Nyrt's earnings presentation, May 20, 2020
Slide 1: Investor Presentation 2020 Q1 Results
INVESTOR PRESENTATION 2020 Q1 RESULTS 4iG Nyrt. 20th May 2020
Slide 2: 2020 Q1 Key Highlights
2020 Q1 KEY HIGHLIGHTS • 4iG now is the #2 IT system integrator in Hungary following its change of management • Up from #6 in 2018 • 2020 Q1 was 4iG’s strongest ever first quarter • 8,6 bn HUF of revenue (a 77,8% increase on 2019 Q1) • 578 million HUF of EBITDA (a 19,6% increase on 2019 Q1) • Toplin
Slide 3: A Comprehensive Business Transformation
A COMPREHENSIVE BUSINESS TRANSFORMATION NEW • Gellért Jászai first became Chairman in July 2018 then CEO in March 2019 OWNERSHIP and finally the majority owner of 4iG with a 40,2% control in July 2019 VISION AND • Our strategic goal is for 4iG to become the #1 IT system integrator in Hungary and a S
Slide 4: Near Term Outlook
NEAR TERM OUTLOOK • Our goal is to become the #1 IT system integrator within the next two years • Expectations for 2020 are robust with 8,6 bn HUF of 2020 March YTD revenue and a current 23bn HUF of contracted backlog for 2020 • We will continue to grow strongly but we expect the growth rate to norm
Slide 5: COVID19 Impacts
COVID19 IMPACTS ▪ 4iG responded to the pandemic situation proactively and since then has managed its operations smoothly ▪ Our BCP has been adjusted to the COVID-19 situation which has allowed us to Operational efficiently manage our operations and services minimising any operational risks ▪ Majorit
Slide 6: Company Overview
COMPANY OVERVIEW
Slide 7: Company Snapshot
COMPANY SNAPSHOT Business Highlights Financial Highlights • 4iG has proven to be flexible in order to fulfill our clients’ expectations in timing and resources. 10 8.6 • 4iG’s most important assets are the 400+ technical 4.9 • employees (consultants and highly qualified engineers 5 and technicians)
Slide 8: Highly Diversified Business Model
HIGHLY DIVERSIFIED BUSINESS MODEL REVENUE BY SERVICE TYPE REVENUE BY INDUSTRY Trade, Commerce Other Implementation, other Support, consulting 4% 33% 6% FIG 4% 7% Operation Transport, Warehousing 13% 4% Manufacturing HW sales 5% IT, Communication Development 59% Consulting, Science, Legal 22% 17% 1%
Slide 9: Strategy Overview
STRATEGY OVERVIEW Vision and strategy • Our goal is to become the #1 IT system integrator in Hungary and a significant player in CEE region Target areas for growth • Technologies: AI, Blockchain, Cyber Security, Digitalization, Fintech, Industry 4.0 • Market Segments: Transportation, Banking, Health
Slide 10: Acquisition Plans
ACQUISITION PLANS Robust organic growth complemented by acquisitions • In Hungary ▪ Our goal is to consolidate our position ▪ Invest into new technologies and ▪ Enhance our capabilties in new sectors • In Central and Eastern Europe ▪ We are looking at opportunitistic targets in the CEE region • Acqu
Slide 11: Shareholder Information
SHAREHOLDER INFORMATION KEY SHAREHOLDERS(1) BEST PERFORMING STOCK IN 2019 IN THE BET 1,400 Share Price Evolution (Ft) KZF Freefloat Vagyonkezelő, 1,200 35% Manhattan PE 40% 1,000 800 Market capitalization 600 as of 19-May-2020 62 bn HUF 400 Treasury 200 Shares 3% OPUS Konzum PE 04-Jan-19 04-Mar-19 0
Slide 12: Hungarian IT Market
HUNGARIAN IT MARKET HUNGARIAN IT MARKET EXPECTED TO GROW BY 2% ON AVERAGE, DRIVEN MAINLY BY PUBLIC SPENDING IT spending of end users by segments (bn HUF) Key Drivers Need for Digital transformation • Internet of Things (IoT) is used in the production, retail, utilities, agriculture and logistics, wh
Slide 13: Hungarian IT Market Landscape
HUNGARIAN IT MARKET LANDSCAPE FULL SCALE T-Systems 4iG SERVICE CAPABILITY Delta Unisys Asseco Invitech S&T EuroONE Symmetria Duna Elektronika Tigra 100+ Micro ICT companies NICHE 100 1000+ Note: Size of the bubble indicated 2019 estimated revenue Source: 4iG, public sources EMPLOYEE # 4IG OVERVIEW 1
Slide 14: Industry Specific Solutions / Service Portfolio Structure
4iG OVERVIEW 14 INDUSTRY SPECIFIC SOLUTIONS VERTICAL (PRHARMA, UTILITY, PRODUCTION) FINTECH SOLUTIONS INDUSTRY 4.0 SERVICE PORTFOLIO STRUCTURE development DEVELOPMENT customized CUSTOM DEVELOPMENT (DESKTOP, MOBILE) Deliver BUSINESS INTELLIGANCE, DATA WAREHOUSE CERTIFIED PARTNER DISTRIBUTOR OF GLOBAL
Slide 15: Financial Overview
FINANCIAL OVERVIEW
Slide 16: Revenue Evolution by Segments
REVENUE EVOLUTION BY SEGMENTS • HW sales: Due to COVID-19 situation the HW sales HUF m witnessed strong growth in Q1 2020 as remote working 5,112 89% HW sales triggered signifcant laptop and server investments from our 2,699 clients. Furthermore, some HW contracts had been -87% postponed from Q4 201
Slide 17: 2020 Q1 Revenue Bridge
2020 Q1 REVENUE BRIDGE NET REVENUES BRIDGE NET REVENUES BUILD-UP HUF m HUF m +78% 2019 2020 45,000 40,000 41,129 35,000 30,000 25,000 24,973 20,000 15,000 8,623 14,539 10,000 5,000 4,850 0 Q1 H1 Q1-Q3 Y (1) Other revenue includes Support and Consulting, Implementation and Other Services 4iG OVERVIEW
Slide 18: 2020 Q1 EBITDA Bridge
2020 Q1 EBITDA BRIDGE EBITDA BRIDGE EBITDA BUILD-UP HUF m HUF m 2019 2020 4,500 +20% 4,000 4,075 3,500 3,000 2,500 2,484 2,000 1,500 1,000 578 1,009 500 483 0 Q1 H1 Q1-Q3 Y 4iG OVERVIEW 18
Slide 19: 2020 Q1 P&L Overview
2020 Q1 P&L OVERVIEW ➢ In Q1 2020 the revenue generated by Software 4iG Nyrt 2020Q1 vs 2019Q1 % 2020Q1 % Development projects and Outsourcing contract (HUF M) 2019Q1 Net Revenues 4,850 98% 8,623 100% 78% showed strong growth and outperformed the Other operating income 82 2% 39 0% -52% growth achieve
Slide 20: 2020 Q1 Balance Sheet Summary
2020 Q1 BALANCE SHEET SUMMARY NET DEBT/(-CASH) (1) WORKING CAPITAL (2) HUF m HUF m 4,000 3,728 2,000 3,500 1,663 3,000 1,500 2,500 2,000 1,000 1,545 1,500 500 1,000 500 0 0 2019 Q1 2020 Q1 -500 -198 2019 Q1 2020 Q1 Note (1): Net debt icludes Provisions, Financial leasing IFRS 16, without Guarantees
Slide 21: Disclaimer
DISCLAIMER THIS PRESENTATION WAS MADE BY 4iG PLC (HEADQUARTERS: 1037 BUDAPEST, MONTEVIDEO U. 8). THE PRESENTATION SHALL CONTAIN ONLY FACTUAL INFORMATION AND REASONABLY DRAWN CONCLUSIONS VIA REASONABLE CALCULATIONS, FORMALLY PUBLISHED BY THOSE WHO ARE ENTITLED FOR THIS, IN ACCORDANCE WITH THE RELEVAN
Slide 22: We provide solutions and create value for the complete IT life cycle
We provide solutions and create value for the complete IT life cycle, supporting your business 24x7.
Slide 23: Contact details
H-1037 Budapest, Montevideo u. 8. Tel: +36 1 270 7600 Fax: +36 1 270 7679 www.4ig.hu