Elm Company · TADAWUL:7203
Elm — Investor Presentation (2023)
19 slides from Elm's investor presentation, 2023
Slide 1: Investor Presentation FY 2023
Investor Presentation FY 2023
Slide 2: Disclaimer
Internal Disclaimer This presentation has been prepared by Elm solely for informational purposes. The presentation may contain forward looking statements, which reflect Elm’s beliefs or current expectations and assumptions regarding the future of the business, future plans and strategies, projection
Slide 3: Agenda
1 2 3 4 Introduction Elm 4.0 Financial 2024 Outlook Agenda Strategy Performance 3
Slide 4: Elm has a strong base for the next wave of growth after 2023 achievements
Internal Elm has a strong base for the next wave of growth as it has reached great achievements in 2023 5.9 1.4 1988 1988 +12pp 1988 63% 1988 billion billion Revenue up by 28% Net profit up by 46% Org. Health Index local content score YoY YoY score above KSA (vs 30% the average average of IT sector)
Slide 5: Agenda
1 2 3 4 Introduction Elm 4.0 Financial 2024 Outlook Agenda Strategy Performance 6
Slide 6: Elm will strengthen capabilities to grow current offerings and expand into new sectors
Elm will strengthen its capabilities to grow current offerings and expand into new gov sectors and adjacent B2B markets in its new strategy Elm 4.0 › Build / Acquire / Partner new B2B products in adjacent markets Organically and inorganically: › Expand into new gov. verticals › Develop new products
Slide 7: Elm 4.0 strategy focuses on diversification and modernizing offerings
Elm 4.0 strategy focuses on diversification and modernize offerings, and require capital deployment in both GovTech and B2B offerings Core Today Focus of Expansion (organic + inorganic) Focus of Expansion (organic) Potential Capital deployment for Capabilities BPO Public Sector ..to embed technologi
Slide 8: Elm business includes 3 main offerings targeting public and private sectors
Elm business includes 3 main offerings targeting the public and private sectors through various service models Business offerings 1. Digital Business 2. Business Outsourcing 3. Professional Services Offering type Digital Products Digital Projects Process Outs. Consulting Data & AI Description Develo
Slide 9: Agenda
1 2 4 5 Introduction Elm 4.0 Financial 2024 Outlook Agenda Strategy Performance 10
Slide 10: Elm achieved a net profit of 1,356 Mn in 2023
Internal Elm achieved a net profit of 1,356 Mn in 2023, ~46% higher than 2022 FY 23 Revenue Revenue YOY Change FY 23 GP Margin GP Margin YOY Change 5,898 Mn SAR 28.1% 39.9% 1.1 PP FY 23 EBIT EBIT YOY Change FY 23 EBIT Margin EBIT Margin YOY Change 1,351 Mn SAR 38.9% 22.9% 1.8 PP FY 23 Net Profit Net
Slide 11: P&L Highlights
Professional Services P&L Highlights Business Process Outsourcing SAR Millions Digital Businesses Gross Profit Margin Revenue by Business Segment Gross Profit by Business Segment Key Highlights › Increase in Revenue led by Digital Business Segment. +28% 5.898 +25% 2.351 164 25 › Contraction in Gross
Slide 12: P&L Highlights
P&L Highlights SAR Millions EBIT Net Profit Key Highlights › Higher EBIT and net profit driven by +46% robust revenue growth. +39% 465 72 1.356 57 1 1,351 378 › Increase in G&A and S&M driven by increase in employee cost, -103 -24 -42 Professional services fees and expansion in S&M activities. 972 9
Slide 13: Digital Business
Top 6 Products Others Digital Business Gross Profit Margin SAR Millions Revenue Gross Profit Products Revenue Key Highlights › Strong revenue and gross profit growth led by products. +35% +35% 4.255 1.960 +36% › Gross profit Margin was stable driven by the increase in revenue from 3.856 lower margin
Slide 14: Business Process Outsourcing
Business Process Outsourcing Gross Profit Margin SAR Millions Revenue Gross Profit Key Highlights › 14% revenue increase, driven by the increase in number of Projects, +14% -9% particularly in manpower 1.479 400 366 outsourcing. 1.301 › Gross profit and gross profit margin experienced pressure due t
Slide 15: Professional Services
Professional Services Gross Profit Margin SAR Millions Revenue Gross Profit Key Highlights › Revenue increased by 7% due to the increase in number pf projects. +7% 164 34 -26% 153 › Gross profit decreased and gross profit Margin decreased mainly due 25 lower margin projects. 2022 2023 2022 2023 22%
Slide 16: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights Cash Balance Movement (SAR Millions) Receivable (Number of Days) Key Highlights 166 › Cash, Cash equivalent and short- 149 142 term investment position of SAR3.5bn (Dec-22: 2.8Bn). 1,559 › Improved cash conversion cycle 2021 2022 2023 due to a consistent decrea
Slide 17: Agenda
1 2 3 4 Introduction Elm 4.0 Financial 2024 Outlook Agenda Strategy Performance 18
Slide 18: 2024 Guidance
YE 2024 YE 2023 YE 2023 Guidance Guidance Actual Update 21% - 23% 28% 16% - 18% Revenue Growth 2024 Guidance 22% - 24% 23% 22% - 24% EBIT Margin 80% - 90% 115% 80% - 90% CFO as % of Net Income 19
Slide 19: Thank you
Elm Contact Investor Relations Department Ibrahim Almuhanna Head of Investor Relations Tel: +(966) 11 461 8500 Email: ialmuhanna@elm.sa Visit our Website (click here) Thank you