Ovh Groupe Sas · EURONEXT:OVH
Ovh Groupe Sas — Ovh Groupe — H1 FY2023 Earnings Presentation
35 slides from Ovh Groupe Sas's earnings presentation, Apr 19, 2023
Slide 1: Half-year FY23 results
Half-year FY23 results Continuous growth acceleration April 19th, 2023
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT IMPORTANT NOTICE - YOU MUST READ THE FOLLOWING BEFORE CONTINUING The following applies to this document, the oral presentation of the information contained in this document made by OVHcloud (the “Company”) or any person on behalf of the Company and any question-and-answer s
Slide 3: Continuous growth acceleration
€439m Revenue Continuous growth +15.0% Reported revenue growth acceleration +12.8% LFL revenue growth 35.4% Adj. EBITDA margin +11.7% +13.9% Q1 LFL growth Q2 LFL growth 17% Recurring Capex, as a % of revenue 27% Growth Capex, as a % of revenue 3 H1 FY23 figures. Like-for-like: at constant FX and per
Slide 4: Financial targets for FY23
13% 14% LFL revenue growth to Financial >36% Adj. EBITDA margin targets for FY23 16-20% Recurring Capex as a % of revenue1 28-32% Growth Capex as a % of revenue1 1. Based on FY22 average forex rates and excluding M&A. 4
Slide 5: OVHcloud ranked as a major player on the fast-growing cloud market
OVHcloud ranked as a major player on the fast-growing cloud market IaaS + PaaS global market Named Major Player for CAGR >20% (22e-26e) Public Cloud by IDC “Companies worldwide move “OVHcloud’s roots as a European service workloads to the cloud and create provider puts it in the catbird seat for new
Slide 6: OVHcloud is the European leader in data sovereignty
OVHcloud is the European leader in data sovereignty Global legal framework Continued traction for increasingly favorable sovereign solutions Continued progress on Data Act, with a focus on reinforcing Confirmed dynamism for sovereign cloud user freedom of choice solutions with successful sales throu
Slide 7: Top-tier sustainability performance
Top-tier sustainability performance OVHcloud’s leading position recognised by analysts and customers 71/100 in 2022 Top 15% +5pts vs 2021 Software & Services companies in 2022 OVHcloud is above technologies companies’ average in all geographies Direct link to S&P report 7
Slide 8: Growth acceleration strategy
Growth acceleration strategy 8
Slide 9: Continuous growth acceleration with strong long-term differentiators
Continuous growth acceleration with strong long-term differentiators Public Cloud Private Cloud Web Cloud & Other Group €74m €273m €92m €439m H1 FY23 Revenue H1 FY23 Revenue H1 FY23 Revenue H1 FY23 Revenue +18.0% +22.8% +20.5% +12.8% +16.6% +14.8% +4.6% +0.3% +2.5% +11.7% +13.9% +12.8% Q1 Q2 H1 Q1 Q
Slide 10: A successful growth strategy with existing and new customers
A successful growth strategy with existing and new customers Strong momentum of cross-sell and Strong new business momentum up-sell with existing customers High customer loyalty 112% 111% 108% 110% 111% 107% Q1 H1 Q3 Q1 H1 FY22 FY22 FY22 FY22 FY23 FY231 Net Revenue Retention Rate 1. Like-for-like. A
Slide 11: Winning new flagship clients
Winning new flagship clients INSURANCE HEALTHCARE MEDIA Leading European Insurer Olympic Games Paris 2024 Group affiliate offering software to Public hospital system in France. Largest Storage of Paris 2024 Olympic Games media collect, clean, structure and analyse hospital system in Europe. Provides
Slide 12: A clear go-to-market strategy with dedicated channels and programs
A clear go-to-market strategy with dedicated channels and programs Direct Indirect Digital 54% enterprise 46% digital H1 FY23 revenue H1 FY23 revenue Successful dedicated 1,250+ partners of which 350+ Advanced, with dedicated program with strong trainings and certifications revenue growth with partn
Slide 13: Successful customer acquisition, strong pricing power
Successful customer acquisition, strong pricing power Sucessful customer +10k ~10% acquisition and continued ARPAC growth New Public cloud YoY ARPAC growth customers in H1 FY23 in H1 FY23 since H2 FY22 Monthly revenue churn (in % revenue) No change in monthly Maximum Limited variation revenue churn
Slide 14: Strong demand for cloud-based applications driving PaaS growth
Strong demand for cloud-based applications driving PaaS growth Database as a Service x7 Storage x4 Containers x3 Set up, operate and scale databases without Store, access and maintain data without managing Create, deploy and run all components of an setting up physical hardware or installing softwar
Slide 15: Double-digit growth in all geographies, with an acceleration in Q2
Double-digit growth in all geographies, with an acceleration in Q2 France Reported +13.2% +14.0% Double-digit growth in Public 49% LFL +12.4% +12.8% Cloud and Private Cloud Q2 H1 Europe (excl. France) Strong growth acceleration in Reported +14.8% +13.6% 28% Q2, driven by Germany and LFL +15.3% +13.1
Slide 16: New Indian datacenter strengthens OVHcloud presence in Asian market
New Indian datacenter strengthens OVHcloud presence in fast-growing Asian market Increasing footprint in the highly IaaS + PaaS Indian market ✓ dynamic Asia Pacific region CAGR >30% (22e-26e) Addressing Indian demand for ✓ highest level of data protection Progressive server expansion - FY24 New DC G
Slide 17: Investing selectively to boost future growth
Investing selectively to boost future growth H1 Var. Capex type FY23 vs H1 FY22 Hardware ➔ Hardware Capex decrease thanks to stock consumption (servers) €95m -22% ➔ Flexibility of production based on demand Infrastructure & Network €53m +20% ➔ Additional capacities of Infrastructure and Network ➔ Te
Slide 18: H1 FY23 Financials
H1 FY23 Financials Wa OVHcloud
Slide 19: Strong growth fuelled by Public and Private cloud
Strong growth fuelled by Public and Private cloud H1 FY23 FY23 reported growth +15.0% FY23 LFL growth +12.8% +2 430 +13 437 440 425 410 +35 390 +8 390 +14.8% 390 +20.5% +2.5% 370 382 382 Webcloud & Private cloud Public cloud Others LFL LFL growth LFL growth growth 350 330 310 290 H1 FY22 Perimeter,
Slide 20: A continued mix evolution towards fast growing segments
A continued mix evolution towards fast growing segments, Public and Private cloud Q1 LFL1 Q2 LFL Q2 LFL revenue €223m LFL figures €216m growth growth share vs. FY22 €193m €196m 38 17% 36 +18.0% +22.8% +1.2pt Public Cloud 30 31 ✓ Strong customer acquisition in Q2 FY23, especially in Public cloud 133
Slide 21: H1 FY23 Adjusted EBITDA of €156m
H1 FY23 Adjusted EBITDA of €156m Action plans implemented H2 FY23 and FY24 39 (15) (21) margin effects ➔ Full effect of price increases 177 ➔ Normalization of electricity costs 153 153 156 156 • 100% hedged for CY23, excluding Germany (hedged at 40%) • >90% hedged for CY24, of which 100% Adj.H1EBITD
Slide 22: H1 FY23 operating income of €(7)m
H1 FY23 operating income of €(7)m In € millions H1 FY22 H1 FY23 Main items Revenue 382 439 Adjusted EBITDA 153 156 Employee share plan and equity plan for €(2)m Share-based payment transactions & Earn-out Acquisition earn-out compensation for €(2)m (25) (4) compensations Current EBITDA 128 152 Depre
Slide 23: Increased operating free cash flow after investments
Increased operating free cash flow after investments In € million H1 FY22 H1 FY23 Main items Adjusted EBITDA 153 156 Gross cash flow from operating activities 127 143 Exceptional items in H1 FY22: €58m from insurance Change in WC 26 3 lump-sum indemnity cashed in Sep. 22 Corporate income taxes (7) (
Slide 24: Strong balance sheet with growth acceleration plan financed until 2026
Strong balance sheet with growth acceleration plan financed until 2026 2.0x 75% 3.2% In € millions FY22 H1 FY23 hedged at leverage all-in rate LTM Adjusted EBITDA 308 310 fixed rates Total available liquidity1 396 524 Net Debt (excluding IFRS 16 lease €500m Term loan 525 601 liabilities) €100m from
Slide 25: Outlook
Outlook Wa OVHcloud
Slide 26: Acceleration in FY23 and confirmed mid-term targets
Acceleration in FY23 and confirmed mid-term targets Key levers for FY23 Revenue growth FY2023E Mid-Term (2025 Target) H2 drivers LFL revenue growth 13%-14% Accelerating to mid twenties Full effect of price increases (YoY growth) PaaS solutions Adjusted EBITDA margin >36% Close to 42% Sovereign produ
Slide 27: Key takeaways
Key takeaways Continuous growth Delivering growth FY23 Financial acceleration acceleration targets €439M Fast-growing cloud market LFL revenue growth Revenue between 13%-14% +15.0% Reported Strong demand for Adj. EBITDA sovereign and +12.8% LFL sustainable solutions margin >36 % 111% Enhanced PaaS C
Slide 28: OVHcloud
Wa OVHcloud
Slide 29: Appendices
Appendices 29
Slide 30: Glossary
Glossary Like-for-like is calculated at constant exchange rates, constant perimeter and excluding Strasbourg (SBG) direct impacts. Perimeter adjustments correspond to M&A. The net revenue retention rate for any period is equal to the percentage calculated by dividing (i) the revenue generated in suc
Slide 31: Revenue by segment and geography
Revenue by segment and geography Q1 FY2022 Q2 FY2022 H1 FY2022 Q1 FY2023 Q2 FY2023 H1 FY2023 In € million Reported Reported Reported Reported Reported Reported Private cloud 113.3 119.3 232.6 133.0 139.9 272.9 Public cloud 29.0 30.6 59.6 35.7 38.3 74.0 Webcloud & Other 44.9 44.9 89.8 47.3 45.1 92.4
Slide 32: Reconciliation reported & like-for-like
Reconciliation reported & like-for-like H1 FY22 FX Perimeter Strasbourg H1 FY22 FX Perimeter Strasbourg In € million H1 FY22 LFL In € million H1 FY22 LFL Reported impacts impacts impacts Reported impacts impacts impacts Private cloud 232.6 3.6 0.0 1.7 237.9 France 189.8 0.0 0.4 1.6 192.0 Public clou
Slide 33: Consolidated Statement of Income
Consolidated Statement of Income 1st semester 2022 1st semester 2023 (in thousand euros) Revenue 381,974 439,343 Personnel expenses (110,926) (111,905) Operating expenses (142,759) (175,668) Current EBITDA 128,289 151,770 Depreciation and amortisation expenses (129,016) (152,487) Current operating i
Slide 34: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (in thousand euros) 31 august 2022 28 february 2023 Goodwill 50,892 44,265 Other intangible assets 223,506 250,771 Property, plant and equipment 949,512 957,339 Rights of use assets 40,345 82,899 Non-current derivative financial instruments - assets(1) -
Slide 35: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows (in thousand euros) 1st semester 2022 1st semester 2023 Consolidated net income (loss) (26 324) (26 585) Adjustments to net income items: Depreciation, amortisation and impairment of non-current assets and rights of use relating to leases 129 016 152 487 Changes