Profile Systems & Software S.a. · ATHEX:PROF
Profile Systems & Software — Profile Software — Investor Presentation (November 2019)
29 slides from Profile Systems & Software's investor presentation, Nov 4, 2019
Slide 1: Corporate Presentation
Corporate Presentation 11/4/2019 1
Slide 2: Company Introduction, Financials, Products, Technology, Looking forward
Financial Technology Company Introduction Financials Products, Technology Looking forward 2
Slide 3: Introduction
Introduction Profile Software is ❖ a world-class Financial Software Provider Financial Technology ❖ of Mission Critical Solutions ❖ to the modern Banking, Fintech and Investment Management industries ❖ offering innovative technologies and successful implementations 3
Slide 4: Established in 1990, 250 Clients in 38 Countries
❖ Established in 1990, 29 years of experience ❖ 250 Clients in 38 Countries ❖ 7 International Offices ❖ 170 employees ❖ 1st to introduce a natively developed mobile wealth management app ❖ 1st to introduce digital banking functionalities for challenger banks in the UK, France etc. ❖ 1st to introduce
Slide 5: Global Strategy Continuous Transformation
Global Launched FMS.next Strategy Continuous Axia Open Transformation 2012 Accredited Launched Launched Robo Banking Axia RiskAvert Advisor (AI) 2012 Launched by Gartner, Singapore and Footprint London IMSplus 2.1 Forrester, Office Acquisition of Fund in Asian Dubai Office IBS, Celent Management mar
Slide 6: Strong local relationships and insights
strong local relationships and insights ❖ Athens, Greece ❖ London, UK ❖ Paris, France ❖ Dubai, UAE ❖ Nicosia, Cyprus ❖ Miami, USA ❖ Singapore Offices in 7 Key financial centers Presence in 38 countries 6
Slide 7: Greece, Europe, MEA, APAC, Americas
Greece Europe MEA, APAC MADA Capital Arrow Americas 7 Trademarks are property of the respective owner
Slide 8: Highlights
Highlights ❖ ❖ Strategically positioned on new trends ❖ Value to the Clients ❖ ❖ Time to market ❖ Flexible, Agile, Scaling mindset ❖ ❖ Servicing large clients for a long time Financial Technology ❖ Industry reports; Gartner, IBS, Celent, Forrester ❖ ❖ Profitable business, Cash flows ❖ Reinvestment i
Slide 9: Company Introduction, Financials, Products, Technology
Financial Technology Company Introduction Financials Products, Technology Looking forward 9
Slide 10: Highlights
Highlights ~70% ~30% 20% 24% Recurring Revenues EBITDA margins Growth Increase ~15 - 20% ~65% in Sales in EAT (2018) (2018) R&D Investments International Sales 10
Slide 11: Growth & Solid margins
& Solid margins CAGR +22% Revenues +20% in 2018, CAGR (Intl) +30% on top of +24% in 2017 EBITDA margins ~30% P&L (in €’k) FY2016 FY2017 FY2018 Δ% + 20-30% Key financials (in € mil) Turnover 9.293 11.557 13.829 +20% 13,8 EBITDA 2.817 3.930 4.056 +3% +20% EBITDA margin 30% 34% 29% (5%) 11,6 +24% PBT 5
Slide 12: Revenue
Revenue Sales (in € mil) 13,8 11,5 9,3 4,9 4,3 Revenue Breakdown by Geography (2018) Americas 4,0 6% 7,2 8,9 5,3 MEA & APAC 14% 2016 2017 2018 Europe International Domestic 45% Revenue Evolution by Origin 100% 90% Greece 80% 35% 70% 60% Europe Greece MEA & APAC Americas 50% 40% 30% 20% 10% 0% 2006 2
Slide 13: Revenue
Revenue Recurring revenues ~70%, New clients’ acquisition rate from Maintenance, SaaS, PayG & Additional ~20% Users Own developed products Loyal clientele ~99%, very low churn ~95% Revenue Types 20 mil. € 100,0% 95,0% 90,0% 15 mil. € 85,0% 2,4 80,0% +18% 10 mil. € 2,0 2,1 75,0% +15% 1,5 1,8 70,0% 1,
Slide 14: Contracts
Contracts 8,9 +30% FY’2018 €8.9 mil, vs 6,8 FY’2017 €6.8 mil (+30%), while 6,2 Q1’2019 €6.2 mil. already in € mil 1,45 FY'2018 1,15 1,05 0,90 FY'2017 FY'2018 Q1'2019 0,83 0,80 in € mil 0,55 0,37 0,36 0,32 0,31 0,26 0,22 0,18 0,12 Clients 14
Slide 15: Balance Sheet
Balance Sheet Balance Sheet FY2016 FY2017 FY2018 Δ% Assets Ratios Tangible & Intangible Assets 13.157 13.751 12.680 (8%) 1,9 1,8 1,9 Other non Current Assets 827 811 789 (3%) Non Current Assets 13.984 14.561 13.469 (8%) 1,1 1,0 0,9 Inventories 308 188 184 (2%) Trade Receivables 6.399 6.895 6.436 (7%
Slide 16: Company Introduction, Financials, Products, Technology
Financial Technology Company Introduction Financials Products, Technology Looking forward 16
Slide 17: Technology
technology ❖ Emerging technologies driving the evolution of Financial Industry (RPA, cloud, AI, etc.) ❖ Multiple deployment methods (SaaS, BPO, etc.) ❖ Enterprise agile practices enabling to Products & innovate & deliver effectively Technology ❖ DevOps engagement achieving higher Technology efficien
Slide 18: Financial Services Solutions
Financial Services Solutions Retail & Customer Corporate Payments Fully Centric Systems Compliant Banking Fast Time Open Risk Treasury To Market Management Architecture Management & Compliance Turn Key Agile Wealth Fund Management Management Cloud Easily Enabled Deployable 18
Slide 19: New trends
new trends • Core Banking • Wealth Management • Digital Banking • Asset / Fund Management • Custody Open Banking Wealth / APIs Tech • Treasury Management Treasury / • Robo Advisory • Risk Management Risk RPA / AI Mgmt Blockchain InsurTech • Insurance Investment • Cryptocurrencies Management Reg Paym
Slide 20: Company Introduction, Financials, Products, Technology
Financial Technology Company Introduction Financials Products, Technology Looking forward 20
Slide 21: Looking forward
forward ❖ Growing market ❖ Competent Team ❖ Continuously upgrade product & delivery offerings ❖ Strategy to deliver sustainable growth ❖ Outperforming Industry peers fundamentals ❖ Strong Q1’2019 21
Slide 22: Market
Market Financial Services lead IT spending 2020: $475 bn The Big tech firms (GAFA) are developing a digital 70% AI savings on operational tasks ecosystem 2 out of 3 millennials prefer online banking and 37% of banking customers will use non-traditional payments financial services firms by 2021 Mobil
Slide 23: Team
Team ExCo ❖ Competent skills ❖ Global experience and culture CEO ❖ Hiring from International peers CFO, COO CTO CMO CHRO ❖ Lean structure Business Units BANKING RISK TREASURY INVESTMENT ENTERPRISE Solutions Solutions Solutions Solutions Pre-Sales Ticketing Pre-Sales Pre-Sales Pre-Sales Services Serv
Slide 24: EBITDA vs sales growth fundamentals
fundamentals 45% MYOB 40% Fiserv Temenos FIS SS&C 35% FactSet Craneware 30% Wolters Kluwer DST Systems CA Technologies Profile Software Infosys EBITDA Fidessa 25% Microgen MLS Sword 20% Entersoft First Derivatives 15% Gresham StatPro Intralot EpsilonNet 10% Space Intrasoft IT 5% Unisystems 0% -10% -
Slide 25: Multiples
multiples 32,00 30,00 28,00 26,00 24,00 22,00 20,00 18,00 16,00 14,00 12,00 10,00 8,00 6,00 4,00 2,00 0,00 30,0x 25,0x EV / SALES EV / EBITDA 20,0 20,0x 15,0 15,0x 13,0 10,0x 6,4 4,5 5,0x 2,6 0,0x EV/Sales EV/Ebitda MSCI Europe IT Financial Solutions High Growth Financial Solutions 25 Trademarks are
Slide 26: Value growth potential
Assuming c.20% growth in 2019 value growth potential and 4x EV/Sales, 15x EV/Ebitda, Price corresponds to c.€6.50 ps. • Intl sales 2018: 65% • Focused & upgraded product portfolio • Own developed products c.95% • Ebitda: 29% • Growing market & upside • Intl sales 2008: 16% • Own developed products:
Slide 27: Drivers of value
of value Attractive valuation Growing market Commercial expansion Revenue growth M&A Quality revenue Complementarities Q1’2019 growth Accelerate growth Solid margins Robust technology Productivity Delivery automations Re-investment Scalability KPI’s Transformation 27
Slide 28: Disclaimer
❖ This document has been created by Profile Software (Profile) in order to be used for specific purposes in corporate presentations. The information included in this presentation has not been reviewed by an independent authority. No belief, position or opinion expressed should be based on the impart
Slide 29: Thank you
Thank you www.profilesw.com infov 4 Profile Software
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