Sword Group Se · EURONEXT:SWP

Sword — H1 2021 Earnings Presentation

51 slides from Sword's earnings presentation, Sep 9, 2021

  1. Slide 1: H1 2021 Presentation

    H1 2021 PRESENTATION

  2. Slide 2: Group's Management Team

    Group’s Management Team Sword Group - September 21 2

  3. Slide 3: Organisation | Management Team

    Organisation | Management Team Phil Norgate CEO Dave Bruce Dieter Rogiers Nick Scully Jacques Mottard M&A Advisor </> </> MIDDLE EAST TEXAS RISK COMPLIANCE & SWITZER- UK BELUX GREECE INDIA LAND COO Kevin Moreton Craig Swinburn Michel Bonvoisin Gregory Carayannis Keith Ricketts Matt Sharpe Nasser Ham

  4. Slide 4: Group's Offer

    Group’s Offer Sword Group - September 21 4

  5. Slide 5: Group's Offer | Software & IT Services

    Group’s Offer | Software & IT Services SERVICES SOFTWARE Creating Value through technology & improvement Adding Value through innovative software solutions Application Data & Content AI & Development Analytics Services Automation VENUE GRC Infrastructure & Enterprise Communication Managed Modern Ser

  6. Slide 6: Leadership

    Leadership  GRC #1 in Risk Management worldwide Software  UK #1 in Oil & Gas sector in Scotland Services  BELUX #1 in new contracts with the EU Services  Switzerland #3 IT Services company in French-speaking Switzerland Services  Middle East Reach 5 Continents from 2 Offshore platforms Services

  7. Slide 7: Governance Risk & Compliance

    HIGHLIGHTS 4 Offices: Kuala Lumpur, London, Melbourne, Washington #1 in Project Risk Management Worldwide 2021 TRENDS GOVERNANCE €20m+ Revenue RISK & COMPLIANCE +20%+ Organic Growth at constant perimeter and constant exchange rates 27%+ EBITDA Margin

  8. Slide 8: Sword GRC Software

    Sword GRC Software </> Software 2021 Highlights: Strong recovery from  EBITDA & Revenue performance Global downturn and  Global success very well placed to  North & South America, Europe, Middle launch and deliver new East, Asia, Australia and New Zealand solutions from Sword  Customer retention

  9. Slide 9: Sword GRC | Growth Opportunities

    Sword GRC | Growth Opportunities </> Software  Extensive R&D Initiative: Current  Innovate or get left behind Capitalise on market opportunity status  Targeting 50 extra development staff of increased focus on risk  Hiring close to completion management, heightened by  New development has comme

  10. Slide 10: UK Highlights

    HIGHLIGHTS 7 Offices: Aberdeen, Edinburgh, Glasgow, Houston, London, Perth, Staines #1 in the Oil & Gas Sector in Scotland UK 2021 TRENDS €75.0m+ Revenue +20.0% Organic Growth at constant perimeter and constant exchange rates 13.0% EBITDA Margin

  11. Slide 11: Sword UK Services

    Sword UK Services Services Revenue by Sector Diversification 76% 70% Our diversification is 20% well under way with 12% 10% 13% strong growth in the 2020 2021 finance sector 2020 2021 2020 2021 UK £42m £45.3m £6.5m £6.5m £7m £13.5m Energy Public Finance/Other #1 in the Oil & Gas Sector in Scotland R

  12. Slide 12: Sword UK Services | Growth Opportunities

    Sword UK Services | Growth Opportunities Services  A strong business Current  Team capable of delivering double digit growth Deliver revenues across all status  De-risked portfolio sectors whilst reducing overall  Leading international clients dependency on energy  Keep IT / Grow IT / Win More

  13. Slide 13: BeLux-Greece & Tipik

    HIGHLIGHTS 4 Offices: Athens, Barcelona, Brussels, Luxembourg Top player in application services and communication services at the European Institutions 2021 TRENDS BELUX-GREECE €58.0m+ Revenue & TIPIK +17.0% Organic Growth at constant perimeter and constant exchange rates 9.0% EBITDA Margin

  14. Slide 14: Sword BeLux-Greece & Tipik Services

    Sword BeLux-Greece & Tipik Services Services FACTS  Key player @ the European Institutions  > 30 European Framework Contracts  > 50 Customers 2021-2025 Objectives Organisational  New offering > €250m  Commercial & Financial Teams in BeLux  New signed contracts > €150m  Nearshore Operations in

  15. Slide 15: Sword Nearshore & Tipik | Boosters

    Sword Nearshore & Tipik | Boosters Services Sword Nearshore = Growth Engines  Delivery Centers in Athens and Barcelona  Low operational costs Nearshore 2021-2022 Objectives  Excellent Service Delivery quality  Availability of Good Resources  Startup of new Framework Contracts  Recruitment > 50

  16. Slide 16: Switzerland

    HIGHLIGHTS 6 Offices: Freiburg, Geneva, Lausanne, Montreal, Nyon, Sion Top 3 in IT outsourcing companies in CH landscape #1 in Public Sector, Luxury and Int. Org. SWITZERLAND 2021 TRENDS €38.0m+ | €46.0m with AiM Revenue +25.0% | +54% with AiM Organic Growth at constant perimeter and constant exchan

  17. Slide 17: Sword Switzerland Services

    Sword Switzerland Services Services Fundamentals Highlights Swiss economy remains robust,  Acquisition of AiM Services SA with strong fundamentals and  Solid organic growth +20%+ pragmatic support from Federal State.  Extended footprint in key sectors through #1 place worldwide for Innovation “Lo

  18. Slide 18: Sword Switzerland | Growth Opportunities

    Sword Switzerland | Growth Opportunities Services  Top 3 global IT outsourcing partner in French-speaking CH Current  Leader in Microsoft Cloud technologies deployment & support status  Established Long Term Agreements for 2020-2024 2025: Continuous growth leading  Strong recurring revenue (stil

  19. Slide 19: Offshore Global Services Centers & Middle East

    HIGHLIGHTS 4 Offices: Beirut, Chennai, Dubai, New-York Middle East & India Reach 5 Continents OFFSHORE GLOBAL €11.0m+ 2021 TRENDS SERVICES CENTERS & MIDDLE EAST Revenue 10.0% Organic Growth at constant perimeter and constant exchange rates 20.0%+ EBITDA Margin

  20. Slide 20: Sword Middle East & India Services

    Sword Middle East & India Services Services H1 2021 Highlights  Booming Near/Offshore Market A Robust business  New 5 years LTA with UNICEF maintaining Growth &  Strong Profitability Profitability  High Business resilience to the Pandemic (Customer retention = 100%)  New Signatures in UAE & Sin

  21. Slide 21: Sword Middle East & India | Growth Opportunities

    Sword Middle East & India | Growth Opportunities Services  Customers over 5 continents Current  Multinational blue chip clients status  Focused on growth & high profitability (20%+ EBITDA margin) 2021+: Continue to develop multi-  Strong recurring revenue (80%) national prestigious Clients while

  22. Slide 22: Figures

    Figures Sword Group - September 21 22

  23. Slide 23: H1 2021 | Key Figures

    H1 2021 | Key Figures +20.9% Organic Growth at constant perimeter and constant exchange rates €98.9m H1 2021 Consolidated Revenue 13.3% EBITDA margin Sword Group - September 21 23

  24. Slide 24: H1 2021 | Consolidated Breakdown

    H1 2021 | Consolidated Breakdown €m (*) Q1 Q2 H1 Revenue 47.4 51.5 98.9 EBITDA 6.5 6.7 13.2 EBITDA Margin 13.7% 12.9% 13.3% Organic Growth (i) +17.0% +24.7% +20.9% (*) Percentages and amounts are calculated from figures in €k. (i) Organic Growth at constant perimeter and constant exchange rates. Swo

  25. Slide 25: H1 2021 | Consolidated Breakdown

    H1 2021 | Consolidated Breakdown €m (*) Group Consolidated Software IT Services Revenue 98.9 9.2 89.7 EBITDA 13.2 2.0 11.2 EBITDA Margin 13.3% 22.1% 12.4% Organic Growth at constant perimeter & constant exchange rates 20.9% 24.7% 20.5% (*) Percentages and amounts are calculated from figures in €k. S

  26. Slide 26: H1 2021 | Consolidated Breakdown

    H1 2021 | Consolidated Breakdown €m (*) H1 2021 Revenue EBITDA Margin Organic Growth (i) Governance Risk & Compliance 9.2 22.1% +24.7% SOFTWARE 9.2 22.1% +24.7% BeLux 28.5 9.0% +20.8% Switzerland 18.9 8.9% +30.6% UK 37.4 14.6% +17.6% Middle East & India 4.9 28.5% +7.9% IT Services 89.7 12.4% +20.5%

  27. Slide 27: H1 2021 | PnL

    H1 2021 | PnL H1 2021 (i) €k % Revenue 98,945 - Current EBITDA 13,151 13.3% Current EBIT 10,732 10.8% Non Current Profits 415 - Financial Profits 695 - Corporate Tax (1,556) - Net Profit after corporate tax 10,288 10.4% (i) Amortisation: €594k Sword Group - September 21 27

  28. Slide 28: Balance Sheet | Non-Current Assets

    Balance Sheet | Non-Current Assets 31 December 30 June (in thousands of €) 2020 2021 ASSETS NON-CURRENT ASSETS Goodwill 52,053 55,302 Other Intangible Assets 10,759 12,283 Property, plant & equipment 1,748 2,593 Assets related to the right of use 6,154 7,775 Investments in associates - - Financial a

  29. Slide 29: Balance Sheet | Current Assets

    Balance Sheet | Current Assets 31 December 30 June (in thousands of €) 2020 2021 ASSETS CURRENT ASSETS Trade and other receivables 22,874 22,880 Work in progress 16,905 24,014  Increase WIP: €7m Current tax assets 515 236  Increase Others Assets | Earn out Other assets 5,413 12,765 Sword France cl

  30. Slide 30: Balance Sheet | Financial Debt

    Balance Sheet | Financial Debt 31 December 30 June 2020 2021 (In thousands of €) EQUITY AND LIABILITIES EQUITY Share capital 9,545 9,545 Share premiums 70,676 70,676 Reserves 2,547 4,053 Retained earnings 51,382 (44) TOTAL EQUITY – GROUP SHARE 134,150 84,230 Non-controlling interests (minority inter

  31. Slide 31: Cash Flow | Extract

    Cash Flow | Extract (in €’000) 30 JUNE 2020 30 JUNE 2021 NET CASH FLOWS FROM OPERATING ACTIVITIES 14.1 1.8 NET CASH FLOWS (ALLOCATED TO) / FROM INVESTMENT ACTIVITIES (5.5) (4.7) NET CASH FLOWS ALLOCATED TO FINANCING ACTIVITIES (14.1) (46.7) Net change in cash and cash equivalents (5.4) (49.5) CASH A

  32. Slide 32: H1 2021 | Net Cash Position

    H1 2021 | Net Cash Position 30/06/2021 Net Cash Position : €57.2m (i) 31/03/2021 Net Cash Position : €100.5m (i) (i) Former standard Sword Group - September 21 32

  33. Slide 33: H1 2021 | Backlog

    H1 2021 | Backlog [31/03/2021] + [30/06/2021] Backlog: Backlog: €412.0m €412.0m (25.9 months) (25.9 months) Sword Group - September 21 33

  34. Slide 34: H1 2021 Currency | Breakdown

    H1 2021 Currency | Breakdown Currency % EUR 29.0% GBP 41.8% CHF 19.8% USD 6.9% Others 2.5% Sword Group - September 21 34

  35. Slide 35: H1 2021 Top 10 Clients

    H1 2021 Top 10 | Clients Company Location BP UK | US Canada Life UK 3 1 2 Chrysaor UK DG for Informatics BeLux The first 10 The first client DG for Taxation and BeLux clients represent represents 6.2% Customs Union 33.2% of the H1 of the H1 2021 European Investment BeLux 2021 Consolidated Consolidat

  36. Slide 36: Clients | Presentation -1-

    Clients | Presentation -1-  GRC  Aviation | Airbus, Pratt & Whitney, Lockheed Martin, Rolls Royce  Engineering, Construction, Transportation | Skanska, Kiwi Rail, Melbourne Airport, Bechtel, Transport for London, LA Metro, RTA (Dubai)  Energy, Mining, Utilities | Duke Energy, Ameren, Savanah Riv

  37. Slide 37: Clients | Presentation -2-

    Clients | Presentation -2-  UK SERVICES  Oil & Gas | Shell, BP, Total, Exxon, Repsol, Harbour Energy, Maersk, Serica  Banking/Insurance | Admiral, Generali, NFU Mutual, Bank of England, ANZ  Public Sector | NHS (Health), Police, Department of Pensions, Scottish Fire & Rescue  SWITZERLAND  Luxu

  38. Slide 38: Clients | Presentation -3-

    Clients | Presentation -3-  APAC  Transport | Transurban, Australia Pacific Airport Corporation, Cross River Delivery Authority, Yarra Trams, Sydney Metro, Westconnex, Malaysian Rail Link, Manila Light Rail  Energy | Stanmore Coal, Vector Energy, Whitehaven Coal, Evolution Gold, Pembroke Ressourc

  39. Slide 39: Clients | Synthesis

    Clients | Synthesis Revenue Average revenue Divisions Number of clients Revenue over … concerned per client SOFTWARE GRC (i) 95% 50 €300k BELUX 75% 7 €1,000k €4,850k SERVICES UK 78% 29 €500k €1,890k SWITZERLAND 76% 16 €500k €1,500k (i) excluding the 2 or 3 clients generating exceptionally around €1m

  40. Slide 40: H1 2021 | Staff

    H1 2021 | Staff 2,181 (i) 1,710 331 135 5 Total IT Services Offshore Software Holding (i) 1,886 full time equivalent (FTE) staff (NDBS included) Sword Group - September 21 40

  41. Slide 41: 2021-2024 Business Plan

    2021-2024 Business Plan Sword Group - September 21 41

  42. Slide 42: 2021-2024 | Business Plan

    2021-2024 | Business Plan €m Extrapolation to 2025 objectives 2021 2022 2023 2024 Revenue | EBITDA 2025 (+10%) per division (**) SOFTWARE GRC 18.6 20.8 23.3 26.1 28.7 36.0 | 12.8 (i) BELUX 56.1 62.8 72.4 81.8 90.0 100.0 | 9.0 (i) GREECE SWITZERLAND 35.4 39.6 44.4 49.7 54.7 56.0 | 6.8 (i) CANADA SERV

  43. Slide 43: Sword Competition

    Sword Competition Sword Group - September 21 43

  44. Slide 44: Competition | IT Services

    Competition | IT Services CRM ANALYTICS CS AI GIS SEARCH PORTAL SPECIALISTS OPENTEXT 1SPATIAL INCREMENTAL PALANTIR DOCUMENTUM PEAK AI EXAKIS ARX IT ANDURIL GPARTNER THE GROUP NUANCE COMPUTHINK ESRI PS Q ASSOCIATES INDUSTRIES JOUVE GRAPH LAND INC OPTALITIX SMILE MAGELLIUM GENERALISTS ACCENTURE, ARHS,

  45. Slide 45: Competition | Software

    Competition | Software GRC VENUE ACUMEN RISK SPECIALISTS BWISE ATTENDIFY RESOLVER EVENTUAOSITY THE RISK DECISIONS ONEPLAN XACTIUM UNGERBOECK GENERALISTS ARCHER, CURA, DNV EASY RISK, IBM ACTIVE NETWORKS, ATOS, AVENTRI, THE OPENPAGES, METRICSTREAM, SAP, EVENTBOOKING, EVENTBRITE, SOCIAL SCHLEUPEN AG, W

  46. Slide 46: Competition | Software -GRC-

    Competition | Software -GRC- GRC Sword Group - September 21 46

  47. Slide 47: Sword Group's Share

    Sword Group’s Share Sword Group - September 21 47

  48. Slide 48: YTD Dividends and Total Share Return

    YTD Dividends | €2.4 + €4.8 Average: +22.4% per year +21% 0% +22% -1% +55% 2017 Total Share 2018 Total Share 2019 Total Share 2020 Total Share YTD 2021 Total Share Return (TSR) Return (TSR) Return (TSR) Return (TSR) Return (TSR) 01/01: €29.04 - 31/12: 01/01: €33.84 - 31/12: 01/01: €29.00 - 31/12: 01

  49. Slide 49: Agenda

    AGENDA Sword Group - September 21 49

  50. Slide 50: Financial Calendar

    Financial Calendar 31 PUBLICATIONS MEETINGS  25/10/2021  10/03/2022 2021 Q3 Results SFAF Meeting | FY2021 Results  25/01/2022  28/04/2022 2021 Q4 Results Annual Shareholders Meeting | 2021  09/03/2022 FY2021 Results Sword Group - September 21 50

  51. Slide 51: Follow Sword

    FOLLOW SWORD sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group Sword Group | 2 rue d’Arlon L-8399 Windhof - Luxembourg SE capital €9,544,965 - B168244

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