B3 Consulting Group Ab · OMXSTO:B3
B3 Consulting Group Ab — Q3 2024 Earnings Presentation
27 slides from B3 Consulting Group Ab's earnings presentation, Oct 23, 2024
Slide 1: B3 Consulting Group Q3 presentation 2024
Slide 2: Speakers from B3
Speakers from B3 Martin Stenström Katarina Lundqvist Rafal Dabkowski CEO B3 Consulting Group Head of Communications & IR CEO B3 Consulting Poland 2
Slide 3: B3's vision and values
B3’s vision and values We aim to be Sweden’s best consulting company B3’s vision Experiences The fact that zebra stripes Is to be Sweden's best Competence and continuous have gradually become part of consulting company - for our learning are important for B3's culture has a clear employees, clients,
Slide 4: B3 Consulting Poland
Slide 5: Poland
Poland A good place to be • In the EU since 2004 • 6th largest economy in EU with 38M people • GDP growth 2,8% in 2024 (3,4% in 2025 – forecast) • 2,9% unemployment rate • 290k+ well-educated graduates annually • 750k+ IT Specialists (9,8M in EU) • 7.4 billion EUR in foreign investments (2023) • 24k
Slide 6: B3 Poland – highlights in Q3
B3 Poland – highlights in Q3 9.6% growth in Q3 • Revenue 17.1 (15.6) MPLN, 9.6% growth -> in SEK: 45.7 (40.7) MSEK, 12.3% growth • EBITDA 2.4 (2.7) MPLN, 14% margin -> in SEK: 6.6 (7.0) MSEK 14,4% margin • EBIT 1.9 (2.3) MPLN, 11% margin -> in SEK: 5.3 (5.8) MSEK 11,6% margin • No of employees by th
Slide 7: The Journey
The Journey From 0 to 200 FTE with 13%+ of profitability in 2024 No of Consultants (FTE) Revenue (MLN PLN) 250 80 70 200 60 50 150 40 100 30 20 50 10 0 0 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024
Slide 8: The Culture
The Culture People & discipline Organization Goals guidance system Teams' Goals control system Client B3 Consultant Roles & Activities engines
Slide 9: The Future
The Future We’re aiming at 500 FTE in 2030 1. QUALITY leadership (CARE3 model) → Gross Margin…. of revenue 2. COST leadership (B3 SuperHub) → Overhead costs…. of revenue → Lowest OH cost in Polish IT- consulting market 3. PROFITABLE growth → EBIT…. of revenue → Volume growth….. *We have internal goa
Slide 10: Q3 2024
Slide 11: Highlights in Q3 2024
Highlights in Q3 2024 Growth is back on track – successful operational improvement • Revenue 245.4 (223.3) MSEK, 9.9% growth, organic* growth -0.5%. • EBITDA 10.6 (15.5) MSEK, EBITDA margin 4.3% (6.9%) • Profit after tax 74.5. (9.7) MSEK, Earnings per share after dilution 8.65 (1.05) SEK • One-off a
Slide 12: Financial overview Q3 2024 – Group
Financial overview Q3 2024 – Group 9,9% growth Q3 Jan-Sep Jan-Dec Extract of B3's key figures 2024 2023 Δ% 2024 2023 Δ% 2023 Net Sales, SEK million 245,4 223,3 9,9% 793,1 847,2 -6,4% 1 140,8 EBITDA, SEK million 10,6 15,5 -31,6% 39,7 88,7 -55,2% 107,3 EBITDA margin, % 4,3% 6,9% 5,0% 10,5% 9,4% Operat
Slide 13: Webstep
Webstep Poor Q3 result as expected - Integration is progressing faster than planned • Successful onboarding with low employee turnover • Higher utilization rate and average hourly rate than B3 in Q3 • Synergies have led to a reduction of 3 FTEs in the total parent company function • A one-off cost i
Slide 14: Revenue breakdown
Revenue breakdown Positive impact on revenue due to M&A 245 • Positive impact on revenue due to Poland and M&A (38 MSEK): 23 increased utilization and FTEs 223 contribute to higher overall revenue, while hourly rates 15 decrease due to lower rates in 25 Poland. 3 1 9 • The negative impact of the 2 1
Slide 15: Utilization rate
Utilization rate Gap QoQ continues to decrease 87,8% • The gap in QoQ* performance continues to 86,7% decrease but the gap is tightening. • Utilization including Poland September is 80.6% -1,5% 82,7% • The decrease between Q2 and Q3 is due to seasonal variations 81,2% 80,3% 79,1%* 78,4% Q1-23 Q2-23
Slide 16: B3 operates across multiple markets
B3 operates across multiple markets The differences in performance remain significant 20 15 EBITDA % 10 4 of our companies (approx. 10% of 5 B3CGs total revenue YTD) with very poor results has been excluded to make the scale of the picture more visually proper. 0 -30 -25 -20 -15 -10 -5 0 5 10 15 20
Slide 17: Cost saving program spot on
Cost saving program spot on The program ends after one year, transitioning the project into daily improvements. 40 41 38 • Moving according to plan • 41 MSEK Cost savings excl. 31 one-off costs from 32 33 acquisitions and bond. 24 29 • Focus on sales and revenue 24 17 • Continued optimization in 13
Slide 18: New assignments and extended contracts
New assignments and extended contracts B3 gains new business and strengthens its positions with several existing clients. • Enhanced membership management in Microsoft Dynamics for a major Swedish organization. • Sitevision web development for Eskilstuna and Linköping municipalities, among others. •
Slide 19: Other important events in Q3
Other important events in Q3 B3 recognized for its corporate culture and is named Platinum Partner • B3 is awarded Employer Branding Company of the Year, highlighting the strong corporate culture. • B3’s head of People & Culture is awarded HR Leader of the Year • B3 completes the acquisition of Webs
Slide 20: Summary Q3 2024
Summary Q3 2024 Growth is back on track • The market remains challenging, but we are securing several significant deals • Growth is back on track • Operational improvements are progressing rapidly • Stronger growth & increased profitability is expected in Q4
Slide 21: Q&A
Q&A
Slide 22: APPENDIX
APPENDIX
Slide 23: Market Outlook
Market Outlook Still demanding market - AI is having a growing impact • The market remains challenging • B3 operates in many markets through its 25 subsidiaries • The Swedish IT market has been weak in recent quarters, but it is expected to recover. However, the timing remains uncertain • The Polish
Slide 24: Revenue and profit
24 Q1 247,8 Q2 218,6 2020 Q3 163,5 869 Q4 221,5 Q1 227,8 Q2 233,5 2021 Q3 189 872 Q4 271,6 Q1 290,5 Q2 289,5 2022 Q3 235,8 1 087 Q4 332,3 Q1 324,6 Q2 299,3 2023 Q3 223,3 1 180 Q4 293,6 Revenue MSEK per quarter and R12 Q1 281,3 Revenue and profit Q2 266,4 2024 1 087 Q3 245,4 Development over the past
Slide 25: Distribution across different industries
Distribution across different industries B3 operates in several interesting industries driven by digitalization Revenue share per industry Jan-Sep 2024 (Jan-Sep 2023) Banking, finance, insurance 18% (20%) Industry 15% (13%) Government agencies, municipalities 15% (15%) Care 13% (10%) IT, media, ente
Slide 26: Share per Business Area
Share per Business Area Revenue evenly distributed across the business areas - negative profit development in BA DES Revenue, share per business area EBIT, share per business area 100% 50% 0% -50% Digital Experience & Solutions -40,6% (35,4%) Digital Management 91,5% (35,3%) Digital Experience & Sol
Slide 27: ni
ni