Datagroup Se · XETR:D6H
Datagroup — Investor Presentation (September 2023)
55 slides from Datagroup's investor presentation, September 2023
Slide 1: Analyst Presentation September 2023
DATAGROUP Analyst Presentation September 2023
Slide 2: 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 mainly in Germany ▪ Close to our customers across Germany ▪ Competent contact at eye level
Slide 3: 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
Slide 4: On the Basis of Data Centers in Germany in Colocation with Public Cloud Integration
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
Slide 5: On the Basis of DATAGROUP Production Model
3. On the Basis of DATAGROUP Production Model Virtually centralized Market units supply units ensure Central supply units ▪ Efficiency gains / cost New locations control ▪ Automation ▪ Public cloud integration ▪ Scalability / capacity for growth Local presence ensures ▪ Eye height ▪ Proximity ▪ On-s
Slide 6: 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
Slide 7: Continued strong order intake in CORBOX business
Continued strong order intake in CORBOX business and very good development of digitization business ▪ Strong order intake in CORBOX services: ▪ 14 new CORBOX customers ▪ 13 contract extensions by existing CORBOX customers through cross-/upselling ▪ 35 contract renewals of several years in existing C
Slide 8: Stadtwerke Neuss relies on the IT of DATAGROUP
Stadtwerke Neuss relies on the IT of DATAGROUP ▪ Stadtwerke Neuss is a municipal utilities and infrastructure company ▪ The portfolio includes electricity, electric mobility, natural gas, drinking water, district heat, contracting, public transportation, mobility services, pools, an ice rink and a s
Slide 9: Currenta extends IT Outsourcing Agreement with DATAGROUP
Currenta extends IT Outsourcing Agreement with DATAGROUP ▪ Manager and operator of one of Europe’s largest chemical sites ▪ Currenta provides services such as energy supply, disposal, infrastructure, safety, analytics, education/training and other services, e.g. maintenance and logistics ▪ Crucial d
Slide 10: New revenue guidance € 485-500m
Prior year sales effects cannot be fully compensated, new revenue guidance € 485-500m Negative sales effects of c. € 40m on an annual basis: €m Revenue 13/14 - 22/23(e) ▪ Early decline in sales from Covid-19 related special boom 550 501.4 485 - New revenue ▪ Change of accounting 500 guidance 500 tre
Slide 11: Confirmation of EBITDA guidance
Confirmation of EBITDA guidance underlines profitability of the CORBOX core business €m EBITDA 13/14 - 22/23(e) EBITDA margin 13/14 - 21/22 CAGR 13/14 - 22/23: 24.9% - 25.6% Operating EBITDA - 76 - 76.6 80 development confirms profitable growth strategy 80 15,3% 15,0% 15.1% 15.2% 16% 70 67.3 14% 12,
Slide 12: EBITA shows the outstanding operating profitability
EBITA shows the outstanding operating profitability of the business model Extended reporting: €m EBITA 13/14 - 22/23(e) EBITA margin 13/14 - 21/22 CAGR 13/14 - 22/23: 23.6% - 24.4% EBITA will be an integral part of regular reporting in the future. Based on the inorganic growth 60,0 52 – 12% model of
Slide 13: Confirmation of EBIT guidance
Confirmation of EBIT guidance underlines profitability of the CORBOX core business The disproportionate increase €m EBIT 13/14 - 22/23(e) EBIT margin 13/14 - 21/22 in EBIT in relation to EBITDA CAGR 13/14 - 22/23: 28.2% - 29.1% of the last years is based on the better CAPEX profitability 45 – 41.5 4
Slide 14: Growth Strategy: DATAGROUP Grows Stronger Than the Market
Growth Strategy DATAGROUP Grows Stronger Than the Market ▪ Bitkom expects market growth of 3.8% ▪ Largest increases in 24% Telco Services 48 50 24% IT Services demand of IT services (+ € 3.3m) hardware (+ € 2m) and software (+ € 3.3m) ITC Market Germany ▪ Average sales growth of 4% Telco 8 € 203.4bn
Slide 15: 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 1,5 Contract phase 1 over time ▪ Average contract duration ca. 4.5 years 1 0,5 ■ Projects Transition ■ Higher call for services ■ CORBOX upselling
Slide 16: Strong Order Intake with CORBOX
Strong Order Intake with CORBOX Exhibition Financial Industry Public Sector Service Full Outsourcing End User Services, Network, Full Outsourcing Managed Cloud, Service Desk 5 years, ca. € 3.5m / year Communication & Collaboration 3 years, ca. € 1.3m / year Application Management Services 2 years, c
Slide 17: DATAGROUP Top in Customer Satisfaction
DATAGROUP Top in Customer Satisfaction ▪ Around 830 out- and cloudsourcing contracts assessed by customers ▪ Comparison of 21 IT service providers ▪ Top 5 again with top ratings in: ▪ Contractual Flexibility, Business Understanding, Transformation Quality, 1st place in each case ▪ Cloud Capability,
Slide 18: DATAGROUP Continuously increases employer attractiveness
DATAGROUP Continuously increases employer attractiveness IT's that simple. Analyst Presentation 09/23 | 18
Slide 19: Collecting Top Marks as Employer
Collecting Top Marks as Employer ▪ “Top employers for IT jobs 2023” Chip in cooperation with Globis Consulting, 01/23 ▪ “Best employers for IT professionals 2023” golem.de in cooperation with Statista, 10/22 ▪ “Top career opportunities 2022” Focus in cooperation with Deutschland Test, 10/22 ▪ German
Slide 20: Recruiting at a Glance
Recruiting at a Glance 9,000 560 Applications Recruitments in FY 21/22 in FY 21/22 Our most successful recruitment channels: Online job Employees recruit Active sourcing advertisements employees Our factor of success: Profile-specific scheme instead of one-size-fits-all IT's that simple. Analyst Pre
Slide 21: Our Staff at a Glance
Our Staff at a Glance 220 18.5 % 81.5 % Apprentices, “Duales System” Women Men combining job and academic studies, working students and students writing their final 3,117 thesis Headcount as of 30.09.22 w/o apprentices and students 54 8.7 years 43.5 years Different Average job tenure Average age nat
Slide 22: DATAGROUP Career Box
DATAGROUP Career Box Opportunities and Development Options for Employees IT's that simple. Analyst Presentation 09/23 | 22
Slide 23: IT's that visionary. Our growth strategy
IT’s that visionary. Our growth strategy
Slide 24: Measures to Achieve the Objective
Measures to Achieve the Objective ▪ Reduction of capex and depreciation ▪ Profitabilization of currently underperforming subsidiaries DATAGROUP BIT Düsseldorf (prev. DATAGROUP FIS) and DATAGROUP Ulm ▪ Transformation of non-CORBOX business into longterm recurring revenues with standardized CORBOX ser
Slide 25: Economies of Scale and Reserves of the CORBOX Cloud
Economies of Scale and Reserves of the CORBOX Cloud Investment efficiency Power consumption management Vulnerability management Employee productivity Ex. Virtual and physical servers per € 1,000 AfA Ex. Virtual servers In calendar year Ex. SAP systems per employee in % in % 135% 228 virtual servers
Slide 26: Outlook: Selected Investments in Capacity for Growth and Scalability
Outlook: Selected Investments in Capacity for Growth and Scalability through Artificial Intelligence, Cybersecurity and Cloud Extension of existing automation Broadening of security portfolio End-to-end own cloud with proprietary AI based in response to an increase in capacities ensure a trusting te
Slide 27: M&A-History
M&A-History 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. 201
Slide 28: Takeover of systemzwo GmbH is the 30th acquisition
Takeover of systemzwo GmbH is the 30th acquisition of DATAGROUP since the IPO in 2006 ▪ Development and expansion of regional presence at Ulm location ▪ Acquisition of specialists in Ulm metropolitan region ▪ Excellent customer portfolio with new approaches for additional CORBOX services ▪ Revenues
Slide 29: We Remain Faithful to our Growth Strategy and Ambition
We Remain Faithful to our Growth Strategy and our Growth Ambition Inorganic vs. organic growth – Ambition ▪ Growth driven by acquisition of new customers for CORBOX core business 225 ▪ Growth of c. €10 - 15m p.a. in CORBOX core business ▪ Growth driven by cross- and upselling among CORBOX customers
Slide 30: Transformations of Acquired Companies Into the Core Business
Transformations of Acquired Companies Into the Core Business Along Several Milestones Exemplary representation of revenue (€m) ▪ Typical Transformation Milestones of an 225 Acquisiton: ▪ 100 days initial integration program 20 -7.5% +16.7% ▪ Inclusion into the DATAGROUP production model -2.7% 0% 175
Slide 31: Our Acquisition Criteria
Our Acquisition Criteria ▪ IT service company with headquarters in Germany ▪ Service provision in the German SME sector ▪ Annual revenue between € 5 - 50m ▪ If possible, no sector specialization ▪ Recurring revenues if possible ▪ Employees with IT expertise ▪ Regional customer structure at eye level
Slide 32: IT's that promising. Financials
IT’s that promising. Financials
Slide 33: DATAGROUP again posts good results in the third quarter
DATAGROUP again posts good results in the third quarter €m Revenue €m EBITDA ▪ Slight increase in revenue despite absence of prior 225 59,6 years’ special effects of c. € 40m on an annual basis 390 60 +2.2 % 58,3 380 57 ▪ Strong operating development in the CORBOX core 375,0 372,9 +0.6 % business an
Slide 34: DATAGROUP again posts good results in the third quarter
DATAGROUP again posts good results in the third quarter €m EBIT € EPS ▪ Disproportionate increase in EBIT vs. EBITDA due to 225 improvement of the CAPEX ratio 35 34,3 2,6 2,56 34 +7.4 % 2,5 +9.8 % ▪ Mid-term target of an EBIT margin of 9 % was 33 2,4 31,9 2,33 exceeded in the third quarter as well 3
Slide 35: Selected P/L ratios in Q3 22/23
Selected P/L ratios in Q3 22/23 Figures in € k Q3 21/221) Q3 22/23 Change Revenues 372,855 374,967 0.6% ▪ Proportion of services at a Other own work capitalized 880 1,335 51.7% high level of 81.1 % Changes in capitalized contract costs -2,299 -3,481 51.4% ▪ Earnings improvement Total revenues 371,43
Slide 36: Selected balance sheet ratios of Q3 22/23
Selected balance sheet ratios of Q3 22/23 Figures in € k 30.06.20221) 30.06.2023 Change ▪ Higher goodwill due to Goodwill 150,9501) 155,534 3.0% acquisitions Non-current liabilities 188,8301) 150,117 -20.5% thereof liabilities to banks ▪ Slightly higher net debt due 69,049 66,371 -3.9% to new acquis
Slide 37: Cash flow Q3 22/23
Cash flow Q3 22/23 Figures in € k Q3 21/221) Q3 22/23 Change Notes Cash flow from operating activities 58,275 33,372 -42.7% ▪ Very good cash flow from operating activities in the first 9 months despite substantial reduction of factoring volume Cash flow from investing activities -40,400 -59,432 47.1
Slide 38: IT's that promising. Information from the stock market
IT‘s that promising. Information from the stock market
Slide 39: DATAGROUP Shares vs. Indices and Peer Group
DATAGROUP Shares vs. Indices and Peer Group In % € 57.00 (as of: 18.08.23) 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 ■ DATAGROUP shares 2,500 ■ All for One 2,000 ■ Cancom 1,500 ■ Bechtle* 1,000 ■ TecDAX 500 ■ DAX 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 202
Slide 40: Extensive Analyst Coverage
Extensive Analyst Coverage Bank Analyst Target Rating price Berenberg Bank Gustav Froberg 80.00 € Buy Stifel Europe Yannik Siering 72.00 € Buy M.M. Warburg Research Andreas Wolf 86.00 € Buy Baader Helvea Knut Woller 85.00 € Buy Quirin Privatbank Sebastian Droste 113.50 € Buy Hauck & Aufhäuser Tim Wu
Slide 41: Directors' Dealings point out the stock price potential
Directors‘ Dealings point out the stock price potential Date Reportable Person Function Type of Price in € Amount Deal 18.11.20 Max Schaber Chairman of Executive Board Buy 9.046.452 196.662 20.11.20 Dirk Peters Member of Executive Board Sell 368.000 8.000 20.11.20 Andreas Baresel Member of Executive
Slide 42: Analyst Consensus Estimates
Analyst Consensus Estimates Actual Figures Consensus Estimates Figures in €m 21/22 21/22 22/23 23/24 24/25 25/26 Revenues 501.4 501.0 536.3 571.7 607.0 613.0 Change YoY (%) 12.8 12.7 7.0 6.6 6.2 1.0 EBITDA 76.5 77.0 85.0 91.8 97.3 94.7 EBITDA margin (%) 15.2 15.4 15.8 16.0 16.0 15.4 EBIT 41.5 41.4 4
Slide 43: Our Commitment in Environment, Social and Governance
Our Commitment in Environment, Social and Governance ▪ Publication of the new sustainability report ▪ We provide insight into our goals, guidelines and measures for sustainable governance, our activities to protect the environment and into selected social projects supported by our employees. “Respon
Slide 44: Shareholder Structure and Shares
Shareholder Structure and Shares As of 1th May 2023 1,9 Relevant Securities Data ■ HHS Beteiligungsges. mbH ▪ Shares outstanding: ▪ Share capital: 8,349,000 € 8,349,000.00 225 54,9 (Max H.-H. Schaber) 43,2 ■ Management Board / Trading Data Supervisory Board / ▪ Stock exchange segm.: Open Market incl
Slide 45: Extract from Financial Calendar
Extract from Financial Calendar ▪ 18.09.23 Berenberg and Goldman Sachs 12th German Corporate Conference, Munich ▪ 18.-22.09.23 12th Baader Investment Conference, Munich ▪ 09.-10.10.23 SME Conference, Paris ▪ 21.11.23 Publication of the preliminary full year figures 22/23 ▪ 27.-29.11.23 Deutsches Eig
Slide 46: 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, Germany datagroup.de Analyst Presentation 09/23 | 46
Slide 47: An Invest in DATAGROUP is that... Profitable, Secure, Strong
16 Consecutive Years of Growth An Invest in DATAGROUP is that… … PROFITABLE … SECURE … STRONG 15.2% 13.8% around 3,500 EBITDA margin Revenues CAGR Employees CAGR 12/13 – 21/22 8.3% 71.5% >30 EBIT margin Recurring revenues Main locations throughout Germany IT's that simple. Analyst Presentation 09/23
Slide 48: IT's that promising. Annex
| DATAGROUP IT’s that promising. Annex
Slide 49: Successful Development of the CORBOX Core Business
Successful Development of the CORBOX Core Business ▪ Strong order intake of CORBOX services contributes to the growth of the core business: ▪ 20 new CORBOX customers ▪ The new orders will have impact on revenue in this year ▪ For existing CORBOX customers 20 contract expansions through cross-/upsell
Slide 50: Selected P&L Ratios in 21/22
Selected P&L Ratios in 21/22 Figures in € k 20/21 21/22 Change Revenue 444,708 501,410 12.8% ▪ Proportion of services Other own work capitalized 1,720 1,643 -4.5% remains at 80.9% on a Changes in capitalized contract costs -1,938 -3,580 84.7% high level Total revenues 444,490 499,473 12.4% ▪ Over pr
Slide 51: Selected Balance Sheet Ratios in 21/22
Selected Balance Sheet Ratios in 21/22 Figures in € k 30.09.21 30.09.22 Change Goodwill 125,951 151,436 20.2% ▪ Balance sheet Non-current liabilities 237,353 161,479 -32.0% prolongation caused by thereof liabilities to banks 78,224 69,225 -11.5% first-time-consolidation of thereof leasing liabilitie
Slide 52: Cash Flow in 21/22
Cash Flow in 21/22 Figures in € k 20/21 21/22 Change Notes Cash flow from operating activities 49,998 70,253 40.5% ▪ Shows the financial strength of the DATAGROUP companies Cash flow from investing activities -44,568 -44,778 0.5% ▪ CAPEX : € 8,810k in 21/22 after € 11,037k in 20/21 ▪ Outflow of € 35
Slide 53: Successful succession of the Executive Board
Successful succession of the Executive Board The Executive Board since 01.04.22 From left to right: ▪ Oliver Thome, Chief Financial Officer, Investor Relations and M&A since 01.10.21, appointed until 30.09.2025 ▪ Andreas Baresel, Chairman of the Executive Board since 10.03.22, appointed until 31.03.
Slide 54: Supervisory Board
Supervisory Board From left to right: ▪ Hubert Deutsch, Deputy Chairman of the Supervisory Board, appointed until the end of the Annual General Meeting for the financial year 2024/2025 ▪ Max H.-H. Schaber, Member of the Supervisory Board, appointed until the end of the Annual General Meeting for the
Slide 55: 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