Bosqar D.d. · ZSE:BSQR
Bosqar D.d — Bosqar — Investor Presentation (October 2024)
36 slides from Bosqar D.d's investor presentation, Oct 4, 2024
Slide 1: Investor presentation
Investor presentation October 4th 2024 1
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by BOSQAR Inc. (the “Company”) or any person on behalf of the Company, and any question- and-answer session that follows the presenta
Slide 3: Bosqar's compelling investment highlights
Bosqar’s compelling investment highlights 1 Company builder and perpetual capital provider holding a distinctive position in the market with substantial further growth capabilities Strong track record in successfully acquiring and integrating diversified business operations (since 2017, 57 2 compani
Slide 4: Agenda
Agenda 1 Who we are ……………………………………………………………………………………………………..……………………….. 5 2 Our Growth model …………………………………………………………………………………………………..………13 3 Governance & Sustainability ………………………………………………….……….………………….. 17 4 Deeper dive into the verticals ....………………..……………………………….…………………….. 20 5 Appendix ………………………………
Slide 5: Who we are
| Who BOSQAR INVEST
Slide 6: Impressive historical development
Impressive historical development 226 246 143 130 90 30 ZSE MCap (EUR M)1 2017 2019 2020 2021 2022 2023 2024 1st acquisition ZSE IPO MidEuropa (MEP) ZSE SPO EUR 40m SLB2 EBRD EUR 60m 4th vertical to be EUR 12m capital became strategic EUR 14m equity 1st in Croatia; equity investment in launched – Fo
Slide 7: Evolution to a company builder through M&A deeply embedded into the company's DNA
Evolution to a company builder through M&A deeply embedded into the company’s DNA Identity • Over the past few years, we demonstrated strong track record in successfully acquiring and integrating diversified business operations. Our 4 business verticals today represent each other’s platform for futu
Slide 8: BOSQAR's unique market positioning
Currently being established; not BOSQAR’s unique market positioning included in consolidated numbers BPTO HR eCommerce Food verticals MPLUS Workplace Group Eplus Ventures Future Food Solutions Year of 2018 2016 2022 2023 2024 establishment Employees1 13,800+ 11,600+ 2,200+ 60+ 700+ Countries 19 15 8
Slide 9: Geographical footprint
Geographical footprint Core markets Revenue split per country, LTM 1H 20241 4% 5% 7% 27% 10% EUR 347M 12% 19% 16% Turkey (27%) Serbia (19%) Croatia (16%) Germany (12%) Slovenia (10%) Hungary (7%) Countries Present in: Croatia, Serbia, Bosnia and Herzegovina, Slovenia, Hungary, North Bulgaria (5%) Ot
Slide 10: Rapidly growing revenues and EBITDA via both organic developments and bolt-on M&A
Rapidly growing revenues and EBITDA via both organic developments and bolt-on M&A Revenue (EUR M) EBITDA Adj. 1 (EUR M) 31 +35% +18% M&A contribution Organic contribution 2019-1H 2024 Revenue and Adj. EBITDA cumulative contribution • Strong growth over the last 4 years driven by a combination of org
Slide 11: BOSQAR further diversified its exposure to BPTO in 2023
BOSQAR further diversified its exposure to BPTO in 2023 Share of verticals in revenues (EUR M) Share of verticals in EBITDA Adj. 1 (EUR M) 10% 8% 4% 5% 6% 5% 7% 6% 5% 26% 22% 5% 6% 11% 26% 33% 94% 100% 100% 100% 97% 90% 92% 85% 76% 81% 79% 74% 69% 62% 2019 2020 2021 2022 2023 H1 2023 H1 2024 2019 20
Slide 12: Financial stability positions BOSQAR well for further growth
Financial stability positions BOSQAR well for further growth Net debt (EUR M)2 Net debt 1H 2024 Equity ratio 100 Net debt/EBITDA Adj. (x) structure (EUR M)2 700 50% 1.50x 45% 45% 1.36x 1.35x 600 1.30x 40% 80 Cash Leasing 500 35% 1.10x Bonds Borrowings 60 55.9 0.99x 1 400 30% 30% 28% 0.90x 137.5 25%
Slide 13: Our Growth model
2 Our Growth model 13
Slide 14: A growth model that combines focused M&A approach with organic growth…
A growth model that combines focused M&A approach with organic growth… Commercialize on scale and technology, cross-selling between geographies and units Continue geographic expansion by acquiring Continue intensive competitors in adjacent synergetic M&A to add geographies, creating end-market verti
Slide 15: …through operational efficiency and focus on clients
…through operational efficiency and focus on clients Up-selling and cross- Expanding on Evolvement of digital selling with existing Win new clients services and innovative Operational excellence M&A Strategy geographies clients solutions • Leverage existing client • Leverage relationships • Expand c
Slide 16: Overview of current M&A activities
Overview of current M&A activities in EUR M 4; FY 2023 data The information presented on this slide is illustrative overview of potential BOSQAR’s M&A pipeline, prepared Transaction to be closed Revenues4 EBITDA4 under the assumption that certain acquisitions might happen in the future, based on the
Slide 17: Governance & Sustainability
3 Governance & Sustainability 17
Slide 18: Governance
Governance Management Board S u p e r v is o r y B o r d, p r o f e s s io n a ll y s u p p o r t e d b y 3 C o m m it t e e s • Audit Committee • Nomination Committee • Remuneration Committee Darko Horvat Tomislav Glavaš Tamara Sardelić Philipp Rösler Joško Miliša Ulf Gartzke Ana Babić President of
Slide 19: Commitment to ESG values
Commitment to ESG values Selected sustainability achievements Relevant SDGs • Our corporate sustainability starts with its value system and a principles-based approach to our 1 Our spotlight SDGs 2 Our Runner-up SDGs business 1st ever SLB in Croatian Capital Those on which we have Those on which we
Slide 20: Deeper dive into the verticals
4 Deeper dive into the verticals 20
Slide 21: BPTO
BPTO Key facts1 • Mplus Croatia d.o.o. is the operational holding for BPTO vertical operating EUR 220M EUR 37M 11,600+ under the brand Mplus Revenue (1H 2024 LTM) EBITDA Adj. (1H 2024 LTM) Employees • It is BPTO service provider in Europe with powerful nearshore focused delivery model and service of
Slide 22: BPTO
BPTO Nearshoring Attractive client mix • Nearshore delivery model provides typically higher margin due to labour • Highly diversified customer base with limited concentration risk and cost arbitrage & favourable labour laws (e.g., Turkey, CEE) low revenue churn rate (~3%1 average) • Mplus is well po
Slide 23: HR Key facts
HR Key facts1 • Through the acquisition of Workplace Group (closed on 1 April 2023), EUR 108M EUR 4M BOSQAR I positioned itself as one of the regional HR leaders Revenue (1H 2024 LTM) EBITDA Adj. (1H 2024 LTM) • Workplace Group Inc owns companies operating under the Manpower brand franchise, MPS int
Slide 24: HR services ecosystem Attractive client mix
HR HR services ecosystem Attractive client mix TAILOR MADE ECOSYSTEM TO SUPPORT CLIENTS DURING THE PROJECT LIFETIME • Workplace Group serves top local and multinational clients across 81 Identifying the most suitable recruitment solutions and services countries Need Customized • It has diversified p
Slide 25: eCommerce
eCommerce • eCommerce vertical is operated under the brand Eplus Ventures and was Key facts1 established in September 2023 upon successfully executed acquisitions EUR 18M EUR 3M of: Revenue (1H 2024 LTM) EBITDA (1H 2024 LTM) ➢ Megabon in 2022 – tourist platform ➢ Pink Panda in 2023 – beauty platform
Slide 26: eCommerce
eCommerce Business models Eplus Ventures competitive advantages ➢ Value add focused platforms • Eplus Ventures focus on differentiated business models for higher profit margins, customer retention, and lower acquisition costs ➢ Offers hotel packages at best market prices ➢ Multi-brand store with a w
Slide 27: Food (currently being established)
Food (currently being established)3 Key facts2 • In May 2024, Future Food Solution LLC (BOSQAR Inc.’s subsidiary company, EUR 126M EUR 10M indirectly fully owned) signed an acquisition of 51% in Panvita Group (Slovenia). After Revenue (FY2023)1 EBITDA Adj. (FY2023)1 the approval of merger control au
Slide 28: Food (currently being established)
Food (currently being established)3 Financial performance of Panvita Group • Panvita group is diversified among business segments, with both primary and Revenue1 (EUR M) EBITDA Adj. 2 (EUR M) secondary segment materially contributing to EBITDA • EBITDA margin in line with market, however impacted by
Slide 29: The Offering
5 The Offering 29
Slide 30: Offering Terms
Offering Terms Issuer BOSQAR Inc. Transaction / Securities offered Secondary Public Offering (SPO) / New ordinary registered shares Listing Zagreb Stock Exchange (Official Market) Depository Central Depository and Clearing Company Inc. Ticker / ISIN BSQR / HRMRULRA0009 Price range EUR 250 – 255 per
Slide 31: Offering Timetable
Offering Timetable1 Issuer BOSQAR d.d. 1 Public Call Announcement 4 October 2024 at 10:00 am 2 Offering Period Start 7 October 2024 at 9:00 am 3 Offering Period End 10 October 2024 at 12 noon 4 Deadline for submission of Subscription Forms for all Investors 10 October 2024 at 12 pm Deadline for paym
Slide 32: Appendix
6 ADO BOSQAR INVEST
Slide 33: P&L
P&L ∆% in EUR M1 2021 2022 2023 H1 2023 H1 2024 ∆% • In the 2023, the largest adjustment of EBITDA ’23/’22 relates to the BPTO vertical - impact of the Revenues 105.4 179.4 302.8 ↑69% 126.9 171.6 ↑35% earthquake in operations in Turkey EUR 2.5m, Costs of raw materials and supplies (1.0) (2.1) (2.7)
Slide 34: Cash flow
Cash flow in EUR M1 2021 2022 2023 H12024 • In 2023, net cash flow generated from Cash generated from operating activities before 18.7 24.6 40.7 15.6 operating activities and changes in working changes in working capital capital significantly increased, primarily due to Changes in working capital (5
Slide 35: Balance sheet
Balance sheet in EUR M1 31/12/2021 31/12/2022 31/12/2023 30/06/2024 Non-current assets 47.6 107.7 129.2 138.6 • BOSQAR In.'s assets growth at the end of 2023 Inventories 0.1 0.2 1.5 1.9 compared to the end of 2022, were significantly Trade receivables 17.4 28.5 43.2 45.3 influenced by acquisition of
Slide 36: Awards and recognitions
Awards and recognitions Customer Experience Development of Full corporate Big Thinking Award in Entrepreneurial Best Customer management Global Sourcing European Small Croatian governance the Employee Company of the Experience expert’s Association reward and Mid-Cap award capital market compliance E