Vincit Oyj · OMXHEX:VINCIT
Vincit Oyj — H1 2022 Earnings Presentation
29 slides from Vincit Oyj's earnings presentation, Aug 25, 2022
Slide 1: H1 Results & Future Outlook
H1 RESULTS & FUTURE OUTLOOK Vincit Investor Relations Moodboard Presentation 25.8.2022
Slide 2: Presenting Today
PRESENTING TODAY Jens Krogell Julius Manni VINCIT VINCIT Chief Strategy Officer Chief Executive Officer
Slide 3: Introduction to New Vincit
INTRODUCTION TO NEW VINCIT VINCIT AFTER THE MERGER (1.7.2022) 2007 2016 H1 2022 COMBINED TOTAL FOUNDED FIRST NORTH ~850 450+ 15.7 35.8 51.5 EMPLOYEES CUSTOMERS REVENUE (M€) REVENUE (M€) REVENUE (M€) 20% 30 WOMEN NATIONALITIES FINLAND Tampere, Helsinki, Turku, Oulu, Jyväskylä, Kuopio SWEDEN Stockholm
Slide 4: Agenda
Agenda Overview of 2022 H1 results Finland profitability improvement plan Future outlook Q&A
Slide 5: Overview of H1 2022 results
Overview of H1 2022 results VINCIT
Slide 6: H1 2022 Highlights
H1 2022 HIGHLIGHTS Vincit Vincit X Bilot Bilot ● Close to 17% growth meeting our ● Successful pre-integration project! ● 15% growth and profit level was expectations, great performance New organization and leadership below expected due to slow start especially in Vincit USA with strong in place combi
Slide 7: H1 2022 - Vincit
H1 2022 - Vincit MEUR 1-6/2022 1-6/2021 Change, % Revenue 35.8 30.7 +16.6% EBITDA 2.8 3.8** % of Revenue 8.0% 12.4% Adjusted EBIT* 2.6 3.5** % of Revenue 7.4% 11.4% *) EBIT before amortization of goodwill **) H1 2021 Includes 0.8 M€ capital gain from divestment of LaaS Company Oy
Slide 8: H1 2022 - Vincit Business Areas
H1 2022 - Vincit Business Areas MEUR 1-6/2022 1-6/2021 Change, % Revenue, Service business 34.5 29.2 +18.3% Adjusted EBIT* 2.6 3.1 % of Revenue 7.6% 10.7% Revenue, Vincit Finland 29.2 26.1 +12.1% Adjusted EBIT* 1.8 2.5 % of Revenue 6.1% 9.8% Revenue, Vincit USA 6.2 3.7 +67.2% Adjusted EBIT* 0.8 0.6
Slide 9: H1 2022 - Bilot
H1 2022 - Bilot MEUR 1-6/2022 1-6/2021 Change, % Revenue 15.7 13.7 +15.0% EBITDA -0.7 1.0 % of Revenue -4.5% 7.5% Adjusted EBIT* 0.1** 0.9 % of Revenue 0.4% 6.9% * EBIT before amortization of goodwill ** Excluding non-recurring transaction expenses related to Vincit X Bilot merger approx. 1,0M€
Slide 10: H1 2022 - Vincit & Bilot combined
H1 2022 - Vincit & Bilot combined Vincit will publish the full year guidance during September MEUR 1-6/2022 1-6/2021 Change Revenue 51.5 44.4 +16.1% EBITDA 2.0 4.8 % of Revenue 3.9% 10.9% Adjusted EBIT* 2.7** 4.5 % of Revenue 5.2% 10.0% Personnel 848 780 * EBIT before amortization of goodwill ** Exc
Slide 11: Combined balance sheet
Combined balance sheet MEUR 6/2022, Combined 6/2021, Combined Balance sheet total 61.8 M€ 61.2 M€ Equity ratio 69.3% 72.4% Goodwill 25.9 23.3 MEUR 6/2022, Old Vincit 6/2021, Old Vincit Balance sheet total 39.2 M€ 37.1 M€ Equity ratio 66.3% 67.3% Goodwill 13.6 14.8 MEUR 6/2022, Old Bilot 6/2021, Old
Slide 12: H1 and Financial Year revenue growth 2017-2021, Vincit & Bilot
H1 and Financial Year revenue growth during 2017-2021, Vincit & Bilot * H1 figures not publicly available information
Slide 13: H1 and Financial Year adjusted EBIT-% development 2017-2021
H1 and Financial Year adjusted EBIT-% development during 2017-2021, Vincit & Bilot * H1 figures not publicly available information Vincit’s Adjusted EBIT comparable to Bilot’s EBITA. Bilot’s 2022 EBITA-% excludes non-recurring transaction expenses related to Vincit X Bilot merger
Slide 14: Finland profitability improvement plan
Finland profitability improvement plan
Slide 15: Vincit's Integration Synergy Plan: 3M€ savings in 2023
Vincit’s Integration Synergy Plan: 3M€ savings in 2023 1 Improving billable- / non-billable work ratio 2 Consolidating offices 3 Overlaps in services & other synergies
Slide 16: Largest impact will be achieved through business fundamentals
Largest impact will be achieved through business fundamentals 1 Average price development 2 Customer and market selection 3 Improving utilization
Slide 17: Future outlook
Future outlook VINCIT
Slide 18: Vincit Strategic Choices
VINCIT STRATEGIC CHOICES END-TO-END DIGITAL UNLEASH THE BUILD ON TOP BE THE BEST COMMERCE AS POTENTIAL OF OF OUR STRONG PLACE TO WORK GLOBAL GROWTH CONTINUOUS DIGITAL SKILLSET AND GROW SPEARHEAD SERVICES Strategy to be updated during H2 2022
Slide 19: Realizing potential of Vincit x Bilot
Realizing potential of Vincit x Bilot Integration process expected to be fully completed by the end of 2022 CUSTOMERS AND OFFERING Complementing Comprehensive offering Balanced mix of mix of customers and deeper relationships service revenue streams (company size, (value potential for us (recurring v
Slide 20: H1 success stories of new Vincit
H1 success stories of new Vincit ● Our strategy E2E Commerce. Combining custom software, design and data with Enterprise platforms. Case Large Retailer. ● Relevant player in SAP S/4HANA. Certia S/4HANA migration public tender won. ● Public segment in Finland. Strategic focus bringing results already
Slide 21: Our Sustainability Themes
OUR SUSTAINABILITY THEMES DIGITAL SOLUTIONS FOR BUILDING SUSTAINABLE AND PROMOTING WELLBEING AND FOSTERING A WELCOMING DIVERSE USERS CLIMATE-FRIENDLY SOLUTIONS WORK-LIFE BALANCE CULTURE We develop digital solutions for We develop digital solutions that We support Vincitizens’ wellbeing We want every
Slide 22: Operating Model
@) PE RATI N G fee eens Areas MOD EL Vincit (Commerce, Core, Digital) Finland Global talent and services for all markets Talent & Delivery Vincit DevOps & Platforms Vincit Central gecaen Four markets with Europe localized sales, accounts and offering development Vincit Solutions continues as an inde
Slide 23: Current status of the integration work
Current status of the integration work ● People & Business A) Integration process & ● Processes & systems synergies ● Premises ● Strategic focus clarified and targets communicated B) Strategy & values ● A new, shared value base ● Improve business intelligence capabilities C) Other projects ● Harmoniz
Slide 24: Must-Win-Battles
SHOR T-TER M Must- Price increases Realising full Win- Customer & potential of the new offering & Battles Market selection capabilities Finalizing the Winning in the integration talent market process
Slide 25: Q&A
QEA VINCIT
Slide 26: Thank You
THANK YOU <3 Julius Manni +358 50 424 3932 CEO julius.manni@vincit.fi
Slide 27: Appendices
Appendices VINCIT
Slide 28: Vincit Owners as of 31.7.2022
VINCIT OWNERS AS 31.7.2022 Others Companies 3% 27% Financial and Private individuals insurance institutions 53% 14% Fund companies 2%
Slide 29: Vincit Leadership Team 1.7.2022
VINCIT LEADERSHIP TEAM 1.7.2022 Julius Manni Ville Houttu Jens Krogell Mari Kuha Anssi Kuutti Chief Executive Officer Vincit USA Chief Strategy Officer Chief People Officer Talent & Delivery All-round-janitor Sales & Offering USA Emerging markets (SWE, CE), People Operations Project business and Local deli