Datagroup Se · XETR:D6H

Datagroup — Q3 2021/22 Earnings Presentation

54 slides from Datagroup's earnings presentation, September 2022

  1. Slide 1: Expedition DATAGROUP

    Expedition DATAGROUP Analyst Presentation September 2022 - Q3 Figures 2021/2022 -

  2. Slide 2: Q1-Q3 21/22 DATAGROUP Continues Success Story: Revenue and EBITDA

    Q1- Q3 21/22 DATAGROUP Continues Success Story Substantial Increase in Revenue, Margins and Earnings Revenue €m EBITDA €m  Management confirms guidance 225 372.9 60 58.3  Organic growth of 0.5% during last 12 months 375  First-time consolidation of URANO and dna (today +12.7 % 55 +24.2 % DATAGROU

  3. Slide 3: Q1-Q3 21/22 Success Story: EBIT and EPS

    Q1-Q3 21/22 DATAGROUP Continues Success Story Substantial Increase in Revenue, Margins and Earnings EBIT €m EPS cents  Disproportionate increase in EBIT and EBITDA 225 margins driven by significant improvement in 242 239 efficiency 33 32.7 234 226 30 175 +23.9 % 218 +50.7 % 27 210 24 202 EBIT margi

  4. Slide 4: Excellent Q3 Results

    Excellent Q3 Results  Strong performance across all DATAGROUP market units  No negative impact from war in Ukraine and supply chain bottlenecks  Outstanding performance of the two new acquisitions Urano and dna (today DATAGROUP BIT Oldenburg)  Good order intake and contract renewals / expansions

  5. Slide 5: Kölnmesse Entrusts all its IT Services to DATAGROUP

    Kölnmesse Entrusts all its IT Services to DATAGROUP  International exhibition corporation, no. 3 in Germany, and among the Top 10 worldwide  Hosts some 80 exhibitions and 2,000 conferences and events per year  Key business driver of the region  60-month operations with an option for another 5 ye

  6. Slide 6: Selected P&L Ratios in Q3 21/22

    Selected P&L Ratios in Q3 21/22 Figures in € k Q3 20/21 Q3 21/22 Change Revenue 330,825 372,855 12.7%  Improvement of Other own work capitalized 1,303 880 -32.5% personnel expense ratio/ Changes in capitalized contract costs -1,048 -2,299 119.4% material expense ratio Total revenues 331,080 371,436

  7. Slide 7: Selected Balance Sheet Ratios in Q3 21/22

    Selected Balance Sheet Ratios in Q3 21/22 Figures in € k 30.06.21 30.06.22 Change Goodwill 108,586 128,084 18.0%  Increase in goodwill due Non-current liabilities 215,936 186,586 -13.6% to acquisitions of thereof liabilities to banks 78,009 69,049 -11.5% Hövermann IT URANO thereof leasing liabiliti

  8. Slide 8: Cash Flow in Q3 21/22

    Cash Flow in Q3 21/22 Figures in € k Q3 20/21 Q3 21/22 Change Notes Cash flow from operating activities 40,720 58,275 43.1%  Shows the financial strength of the DATAGROUP companies Cash flow from investing activities -39,366 -40,400 2.6%  CAPEX : € 5,844k in Q3 21/22 after € 5,587k in Q3 20/21  O

  9. Slide 9: Current Assessment of the Ukraine Conflict for DATAGROUP

    Current Assessment of the Ukraine Conflict for DATAGROUP  DATAGROUP employees, suppliers and customers currently not affected directly  Increase in attacks on IT systems leads to an intensified threat situation IT's that simple. Analyst presentation 09/22 (1) | 9

  10. Slide 10: Organisational Security Measures in the Intensified Threat Situation

    Organisational Security Measures in the Intensified Threat Situation Central IT Governance, Corporate Security Security Competence Security Operation Risk and Compliance Board (CSB) Team (SCT) Center (SOC) (IT-GRC) Update and expansion of Higher rate Close monitoring of the Expansion Security key in

  11. Slide 11: Expansion of the Security Services in the Intensified Threat Situation

    Expansion of the Security Services in the Intensified Threat Situation PREVENTION DETECTION REACTION  Endpoint Detection and  Security Information and Event  Immutable backups help protect Response (EDR), early detection Management (SIEM), the against malicious data of anomalies and reaction on e

  12. Slide 12: Further Development of Security Services

    Further Development of Security Services DATAGROUP’s response:  New, coordinated CORBOX Security Services along multiple lines of defence for prevention, detection and response  Own Security Operation Center (SOC) with in-depth security experience and “We are on “red alert”, tooling for protection

  13. Slide 13: IT just works.

    IT just works. Optimally Positioned to Meet Market Requirements

  14. Slide 14: Leading IT-Service Provider in Germany

    Leading IT-Service Provider in Germany (Source Lünendonk)  Full service offering for IT and cloud services  For companies with 100 – 5.000m € annual revenue as well as institutions  Around 3,500 employees exclusively in Germany  Close to our customers across Germany  Competent contact at eye le

  15. Slide 15: Service as a Product approach with long-term contracts and recurring revenue

    Service as a Product approach with long-term contracts, recurring service revenue and high margins €m Revenue 11/12– 21/22(p) Year to Date 10/21 – 06/22: € 372.9m Approx. 80% gross margin CAGR 11/12 – 21/22(p): 12.6% - 13.1% 480 – 500 with recurring revenues in 500 444.7 20/21 450 400 358.2 350 306.

  16. Slide 16: Development of EBITDA

    Development of EBITDA €m EBITDA 11/12 – 21/22(p) EBITDA margin 11/12 – 20/21 Year to Date 10/21 – 06/22: € 58.3m Operative EBITDA CAGR 11/12 – 21/22(p): 22,5% - 23,0% development confirms 72 – 75 15.1% profitable growth course 75 15.3% 16% 15.0% 67.3 12.6% 14% 60 12.1% 53.81 10.9% 12% 46.9 9.7% 11,6

  17. Slide 17: Development of EBIT

    Development of EBIT €m EBIT 11/12 – 21/22(p) EBIT margin 10/11 – 20/21 DATAGROUP had realized Year to Date 10/21 – 06/22: € 32.7m extraordinary purchase CAGR 11/12 – 21/22(p): 26.2% - 27.2% price bargains over the 39 – 42 past five years. In the 9% 8,3% reporting year, EBIT was 7,5% 7,7% 40,0 7,2% 6

  18. Slide 18: Growth Strategy: DATAGROUP Grows Stronger Than the Market

    Growth Strategy DATAGROUP Grows Stronger Than the Market  Bitkom expects market growth of 4.2% compared to 2022 and 27% Telco Services 46 thus significant recovery 49 23% IT Services after Corona-related decline  Major increases in ITC Market Germany demand of IT services 4% Telco 7 € 197.3bn p.a.

  19. Slide 19: Our Full Service Offer for Companies as USP

    Our Full Service Offer for Companies as USP  “Service as a Product” replaces “Time-and- Material”  Modular offering for care-free IT  Economies of scale through industrial production  ISO 20000 certified (TÜV Süd) IT's that simple. Analyst presentation 09/22 (1) | 19

  20. Slide 20: 1. On the Basis of Standardization

    1. On the Basis of Standardization Factory Manufacturing of IT Operations  Provision according to industrial standards on the basis of defined roles, processes and procedures  Standardization as a basis for automation and efficiency gains  DATAGROUP as cloud enabler IT's that simple. Analyst pres

  21. Slide 21: 2. On the Basis of Data Centers in Germany

    2. On the Basis of Data Centers in Germany in Colocation with public cloud integration  Improved desaster recovery abilities based on a joint Data Center backbone in Frankfurt-Düsseldorf  ISAE 3402 Audit certificate according  Optimal public cloud connection to DECIX to COBIT for SOX and ECIX  I

  22. Slide 22: 3. On the Basis of DATAGROUP Production Model

    3. On the Basis of DATAGROUP Production Model Virtually centralized supply units Market units  Efficiency gains / cost Customers control Central supply units  Automation New locations  Public cloud integration  Scalability / capacity for growth Local presence ensures  Eye height  Proximity  O

  23. Slide 23: 4. On the Basis of the Highest Security Standards

    4. On the Basis of the Highest Security Standards Quality of services rendered and information security have the highest priority Guidelines, processes and procedures are reviewed on a regular basis, also by external audits:  ISO 27001 Native + ISO 27018 (Extension) Information security  ISO 27001

  24. Slide 24: CORBOX Guarantees Recurring Revenues

    CORBOX Guarantees Recurring Revenues Sample Customer Contract phase 2  Recurring revenues with Revenue in € m CORBOX are extended by additional services Contract phase 1 1,5 over time  Average contract duration ca. 4.5 years 1 ■ Projects 0,5 Transition ■ Increased delivery level of services ■ CORB

  25. Slide 25: Strong Order Intake with CORBOX

    Strong Order Intake with CORBOX Exhibition Software development Energy Public authorities Full Outsourcing Managed & Private, Public Cloud Full Outsourcing Managed Cloud, Application Services Management Services 5 years, ca. € 3.5m / year 5 years, ca. € 3.4m / year 2 years, ca. € 0.4m / year 4.5 yea

  26. Slide 26: DATAGROUP Top in Customer Satisfaction

    DATAGROUP Top in Customer Satisfaction  Roughly 830 outsourcing and cloudsourcing contracts rated by customers  Comparison of 21 IT service providers  Among the Top 5 again with top ratings in:  First place in contractual flexibility, business understanding, transformation quality  Second place

  27. Slide 27: Collecting Top Marks as Employer

    Collecting Top Marks as Employer  “50 best employer for IT professionals” golem.de in cooperation with Statista, 11/21  “Top career opportunities 2021” Stern in cooperation with Statista, 05/21  “Top employer diversity” Stern in cooperation wiht Statista, 05/2021  “Germany’s best employers 2021”

  28. Slide 28: Extract from our Academic Collaborations

    Extract from our Academic Collaborations An Investment in the Future of our Teams  Numerous other local campaigns and collaborations  Furthermore, DATAGROUP currently employs some 180 apprentices and students Technische Hochschule Rosenheim Hochschule Mainz Hochschule Aalen Cooperation with innova

  29. Slide 29: Dual Growth Strategy

    Dual Growth Strategy Anorganic vs. Organic Growth – Ambition  Growth through new customer acquisition 225  Market potential: around 5,000 potential CORBOX customers in the segment of 100 – 5,000m € revenue p.a. in Germany 175 50% 50%  Growth from upselling existing customers  Ca. 10m € increase

  30. Slide 30: New Management Ambition by 25/26: Revenue of €750M

    New Management Ambition by 25/26: Revenue of € 750M Revenue in €m Our ambition 800 by 25/26:  Revenue of € 750m 700 from 22/23: 600  > 15% EBITDA 500  > 9% EBIT 400 300 200 ■ Min. revenue development 100 ■ Max. revenue development ■ Generated total revenue 0 18/19 19/20 20/21 21/22(p) 22/23(p) 23

  31. Slide 31: Guidance und Ambition

    Guidance und Ambition  EBIT guidance: € 39 – 42m  Medium-term EBIT target: 9%  Measures to achieve the objective  Reduction of capex and depreciation (AfA)  Absolute and relative reduction in rental expenses and depreciation (AfA) due to reduction in office space as a result of the Covid pandem

  32. Slide 32: End of Investment Cycle – Depreciation Returns to Normal

    End of Investment Cycle – Depreciation Returns to Normal Development of investments in relation to  Increased investment activity since 2017/18 service revenue 16/17 – 20/21 in % 225 8.0  Acquisition of IKB Data (today DATAGROUP BIT 7.3% Düsseldorf) in August 2017 triggers platform investment in s

  33. Slide 33: M&A-Historie

    M&A-Historie Messerknecht bte bürotechnik eggert PC-Feuerwehr HanseCom Portavis (120 employees), Oct. 2006 (10 employees), July 2008 (10 employees), Jan. 2012 (70 employees), May 2017 (200 employees), Mar. 2020 ICP Arxes Consinto ikb Data Cloudeteer (15 employees), Oct. 2006 (380 employees), Apr. 20

  34. Slide 34: Our Most Recent Acquisition: Hövermann IT

    Our Most Recent Acquisition: Hövermann IT  Acquisition of 100 % of the shares in Hövermann IT, consisting of Hövermann IT- Gruppe GmbH, Hövermann ERP Consulting GmbH, and Hövermann Rechenzentrum GmbH with headquarters in Ibbenbüren  Hövermann is running its own data center and has acknowledged exp

  35. Slide 35: New Acquisitions in 20/21: dna GmbH

    New Acquisitions in 20/21: dna GmbH  Acquisition of 100% of the shares in dna Gesellschaft für IT Services mbH based in Berlin, Hanover and Oldenburg  dna is specialized in services and user support for IT infrastructures and IT applications, expecially for the financial services companies of the

  36. Slide 36: New Acquisitions in 20/21: URANO Informationssysteme GmbH

    New acquisitions in 20/21: URANO Informationssysteme GmbH  Participation agreement for the acquisition of 70% of the shares in URANO Informationssysteme GmbH and for the remaining 30% in 2023  URANO has roughly 300 employees providing IT services for private sector and public sector organizations.

  37. Slide 37: IT's that promising. Share Information

    IT‘s that promising. Share Information

  38. Slide 38: DATAGROUP Share vs. Indices and Peer Group

    DATAGROUP Share vs. Indices and Peer Group Ratings In % Berenberg € 60.90 (Status: 05.09.22) 95.00€, Buy 7,000 Stifel Europe ■ DATAGROUP share 6,500 93.00€, Buy 6,000 ■ All for One 5,500 ■ Cancom M.M. Warburg Research 93.00€, Buy 5,000 ■ Bechtle* 4,500 ■ TecDAX Baader Helvea ■ DAX 69.00€, Add 4,000

  39. Slide 39: Analyst Consensus Estimates

    Analyst Consensus Estimates Actual data Consensus estimates In €m 20/21 20/21 21/22 22/23 23/24 Revenue 444.7 449.7 497.4 527.2 556.2 Change year-on-year (%) 24.1 25.5 11.8 6.0 5.5 EBITDA 67.3 64.2 77.4 84.6 90.3 EBITDA margin (%) 15.1 14.3 15.6 16.1 16.2 EBIT 29.1 30.1 41.1 47.9 53.2 EBIT margin (%

  40. Slide 40: Our Commitment to the Environment, Social Affairs and Corporate Governance

    Our Commitment to the Environment, Social Affairs and Corporate Governance  Publication of an ESG report for the first time  We give insight into our leitmotifs and principles of sustainable business management, our activities for the protection of the environment and selected social projects that

  41. Slide 41: Shareholder Structure and Stock

    Shareholder Structure and Stock Key Investment Data 3.7  Total number of shares: 8,349,000  Capital stock: 8,349,000.00 € 225 53.5 ■ HHS Beteiligungsges. mbH Trade Data: (Max H.-H. Schaber) 42.8  Stock market segment: Open Market under inclusion in the segment Scale of ■ Executives / Advisory Boa

  42. Slide 42: Extract From the Financial Calendar

    Extract From the Financial Calendar  23.08.22 Publication of Q3 Results for FY 21/22  19.09.22 Berenberg and Goldman Sachs German Corporate Conference, Munich  23.09.22 Baader Investment Conference 2022, Munich  17.-18.10.22 CF&B European Midcap Event  22.11.22 Publication of Preliminary Result

  43. Slide 43: Contact Information

    Contact Information Claudia Erning Investor Relations T +49 7127 970 015 M +49 160 968 98171 Claudia.Erning@datagroup.de DATAGROUP SE Wilhelm-Schickard-Straße 7 72124 Pliezhausen datagroup.de Analyst presentation 09/22 (1) | 43

  44. Slide 44: An Invest in DATAGROUP is that… Profitable, Secure, Strong

    16 Consecutive Years of Growth An Invest in DATAGROUP is that… … PROFITABLE … SECURE … STRONG 15.1% 15.1% around 3,500 EBITDA margin Revenues CAGR Employees CAGR 10/11 – 20/21 6.5% 74% >30 (7.2%)* Recurring revenues Main locations throughout Germany EBIT margin *There were extraordinary write-offs o

  45. Slide 45: IT's worth exploring. Appendices

    IT‘s worth exploring. Appendices

  46. Slide 46: IT's that promising. Fiscal Year 20/21

    IT’s that promising. Fiscal Year 20/21

  47. Slide 47: DATAGROUP Significantly Exceeds Guidance with Record Results

    DATAGROUP Significantly Exceeds Guidance with Record Results Revenue €m EBITDA €m EPS cents  Organic growth of 7.7% 450 444.7 68 67.3 260 252  First-time consolidation Guidance: >440 of URANO and dna (today DATAGROUP BIT 425 64 195 Oldenburg) as +24.1% +25.1% +8,339.0% of 01.05.21 Guidance: >61 40

  48. Slide 48: The Basis of Our Record Results

    The Basis of Our Record Results  Performance of fully integrated DATAGROUP companies exceeds expectations  Higher contribution from CORBOX  Increase in efficiency in central production  CAPEX reduction  Start-up of new customer systems and, in part, significant upselling into existing customers

  49. Slide 49: Selected Profit and Loss Statement Figures FY 20/21

    Selected Profit and Loss Statement Figures FY 20/21 Figures in € k 19/20 20/21 Change Revenue 358,211 444,708 +24.1% *There were extraordinary Other own work capitalized 1,743 1,720 -1.3% write-offs of € 3.15m in the Changes in capitalized contract costs 7,274 -1,938 -126.6% fiscal year. When Total

  50. Slide 50: Selected Balance Sheet Numbers and Ratios FY 20/21

    Selected Balance Sheet Numbers and Ratios FY 20/21 Figures in € k 30.09.20 30.09.21 Change Goodwill 62,501 103,084 +64.9%  Increase in net debt by Non-current liabilities 206,019 207,320 +0.6% € 35m due to investments thereof liabilities to banks 78,163 78,224 +0.1% in acquisitions thereof leasing

  51. Slide 51: Cash Flow FY 20/21

    Cash Flow FY 20/21 Figures in k€ 19/20 20/21 Change Comments Cash flow from operating activities 21,684 49,998 130.6%  Driven by good operating earnings Cash flow from investing activities 12,595 -44,568 -453.9%  Outflow of € 35.7m in FY for acquisition of URANO and dna (today DATAGROUP BIT Oldenb

  52. Slide 52: Management Board

    Management Board Andreas Baresel Dr. Sabine Laukemann Chief Executive Officer, responsible for Supply Units & Chief Officer, responsible for Human Resources, Production Strategy and Organization Member of the Management Board (CPO) of DATAGROUP Dr. Sabine Laukemann has been a member of the SE since

  53. Slide 53: Supervisory Board

    Supervisory Board Heinz Hilgert Hubert Deutsch Chairman of the Supervisory Board Deputy Chairman of the Supervisory Board CEO and founder of TransVise GmbH, Senior Management CEO of BLANK Holding GmbH, an international industrial com- Consulting in the financial services industry. pany specialized i

  54. Slide 54: Disclaimer

    Disclaimer This presentation has been produced by DATAGROUP SE with the sole purpose of providing decision support for the recipient. This presentation is no prospectus and in no way is intended to be an offer or solicitation to purchase or subscribe to corporate shares or other securities. This pre

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