Proact It Group Ab · OMXSTO:PACT

Proact It Group Ab — Q1 2020 Earnings Presentation

19 slides from Proact It Group Ab's earnings presentation, Apr 24, 2020

  1. Slide 1: Summary Q1 2020

    Summary Q1 2020 24 April, 2020 Jonas Hasselberg, CEO and President jonas.hasselberg@proact.eu Jonas Persson, CFO jonas.person@proact.eu

  2. Slide 2: Agenda

    AGENDA  About Proact  Our value-add in the market  Key figures  Summary

  3. Slide 3: About Proact

    About Proact FI NO SE  Founded in 1994 EE LV DK  System and multi-cloud specialist LT NL UK  3 600 MSEK turnover BE DE CZ SK  Over 1000 employees at 37 offices  HQ in Stockholm, Sweden US  Four BU:s with service delivery hubs

  4. Slide 4: Market developments

    58% sees IT as a Market developments business enabler 57% sees business innovation as a top priority  Market is growing  Multi-cloud is the new normal x3.8 “wallet share” for IT projects in  IT is hard the business  New opportunities and new buyers 66% of Proact customers will use  Corona impac

  5. Slide 5: Our differentiated value

    We understand our customer’s business OUR DIFFERENTIATED VALUE We are specialists We advice on We store We connect We protect We bring value your data strategy your data your data your data to your data Relevant portfolio of products and services PRIVATE CLOUD PUBLIC CLOUD ON PREMISE CONSULTING SOLU

  6. Slide 6: Our positioning in the Market!

    Our positioning in the Market!

  7. Slide 7: Customer logos

    Pinsent Masons Infosys % Springer Swedbank @ Sb ABN-AMRO Foster + Partners GLENCORE Cargill ‘AGRICULTURE =) Spotify’ ® UREA Mercedes-Benz mimace s Q BF relia S Q MyMedséMe. og ERICSSON H LAVAS NOKIA eetee eee Taylor Vinters* Booking.com (ot PROACT

  8. Slide 8: The value we bring our customers!

    The value we bring our customers!

  9. Slide 9: The portfolio we bring our customers!

    The portfolio we bring our customers!

  10. Slide 10: Leverage the power of data!

    Leverage the power of data! \ Our customers / 6upndwos e6pa Storage (221nas.

  11. Slide 11: Numbers for Q1

    PROACT Numbers for Q1

  12. Slide 12: Quarter in brief

    Quarter in brief + Improved EBITA margin to 5.1% + 58% growth in MCS revenue + Improved PBT of 33 (27) MSEK + Improvements in BU West – Revenue decline of -7% to 844 MSEK + Launched products and services – Covid-19 impact and uncertainties + Maintained high quality operations – Total contract value

  13. Slide 13: Income Statement Q1 2020

    Income Statement Q1 2020 (MSEK) Jan-Mar 2020 Jan-Mar 2019 System Sales 477.3 628.9 Services 366.0 280.5 Other 0.5 0.3 Revenue 843.8 909.8 TOTAL REVENUE SYSTEM SALES SERVICES SALES Products and services -643.2 -712.2 Gross profit 200.6 197.5 GROWTH MSEK GROWTH MSEK GROWTH MSEK Gross margin 23.8% 21.7

  14. Slide 14: Income Statement Rolling 12 months

    Income Statement Rolling 12 months (MSEK) System Sales Services Apr-Mar 2020 2,051.4 1,288.5 Apr-Mar 2019 2,322.3 1,143.4 Other 2.0 3.2 Revenue 3,341.9 3,468.9 TOTAL REVENUE SYSTEM SALES SERVICES SALES Products and services -2,550.2 -2,663.6 Gross profit 791.7 805.2 GROWTH MSEK GROWTH MSEK GROWTH MS

  15. Slide 15: Revenue & EBITA in Q1 per Business Unit

    Revenue & EBITA in Q1 per Business Unit  Positive development in Cloud business with 58% 2019 2020 growth to 180 MSEK, organic growth of 20% January - March January - March  In Nordics revenue decreased by 16%, system sales decreased by 24% and the service revenue Revenue EBITA EBITA- Revenue EBIT

  16. Slide 16: Cash flow in Q1

    Cash flow in Q1  Negative change in working capital -112 (-30) MSEK due Liquid Funds December 31, 2019 373 to a peak end of year Cash-flow from current operations -30  Fixed assets; Proact Finance -11 MSEK Current operations 82 Change in working capital -112  Repayment of Leasing Liabilities; -34

  17. Slide 17: Balance sheet

    2020 2019 2019 Mar 31 Dec 31 Mar 31 Balance sheet (MSEK) Total Assets 2,809 2,877 2,507 whereof Goodwill 533 516 405  Solidity of 20%, improved since year end whereof Intangible fixed 89 93 66  Cash position of 290 MSEK assets  Unutilized overdrafts of 258 MSEK for daily operations whereof Accoun

  18. Slide 18: Financial goals

    SALES GROWTH FINANCIAL TARGET OUTCOME GOALS 3 342 MSEK, incl. PeopleWare from Q4 2019 >10% -4% Rolling 12 months EBITA MARGIN TARGET OUTCOME* Adjusted for one-time costs 8% 4.9% NET DEBT/EBITDA TARGET OUTCOME IFRS16 impact of 300 MSEK <2 0.85 ROCE TARGET OUTCOME Impacted by IFRS 16 and one-time cost

  19. Slide 19: Summary

    Summary  Solid results while impacted operationally by covid-19  Growth in MCS revenue  Positive recovery in BU West  Uncertainty remain high

Proact IT Group — Q1 2020 Earnings Presentation on 6ix