Nagarro Se · XETR:NA9
Nagarro — Investor Presentation (March 2025)
28 slides from Nagarro's investor presentation, Mar 26, 2025
Slide 1: Fluidic Enterprise
Fluidic Enterprise Nagarro SE 1
Slide 2: Disclaimer
Disclaimer The information contained in this document is provided as of the date of its publication and is subject to change without notice. This presentation contains preliminary figures and forward-looking statements. Forward-looking statements may be identified by words such as “expect”, “forecas
Slide 3: Nagarro at a glance
Nagarro at a glance 9M FY 2024 • €725.4 million revenue Fast-growing, scaled, diversified, ~18,000 Nagarrians across digital engineering leader with a 36 countries • 5% YoY revenue growth; 6.1% in CC terms full-service portfolio • 30.8% gross margin • 15.1% adj. EBITDA margin FY 2024 Guidance* • ~€9
Slide 4: Our Mission Statement
Our Mission Statement: To make distance and difference irrelevant between intelligent people 4 4
Slide 5: Our core values: a magnet for talent
Our core values: a magnet for talent Caring is our superpower... Client-centric Agile Responsible Intelligent Non-hierarchical Global Caring 5 5
Slide 6: A global company with no single HQ
A global company with no single HQ 36 countries with registered offices Over a dozen nationalities in senior management Americas EMEA Region Asia Canada Austria Poland Australia Columbia Bahrain Portugal China Ecuador Denmark Romania India Mexico Finland Saudi Arabia Japan US France Spain 6 Malaysia
Slide 7: Differentiated market positioning
Differentiated market positioning AI-led transformation for our clients Engineering DNA Superior: • Client intimacy Excellence in digital • Rapid prototyping product engineering • Agile development to “change • Lean, small-team culture the business” Consulting DNA • Architecture and code quality • U
Slide 8: At Nagarro, we are building various kinds of Generative AI platforms
At Nagarro, we are building various kinds of Generative AI platforms … Intelligent Assistants Platforms Analytics & Insight Assisted Content Platforms Generation Platforms Hyper automation Audit & Compliance Platforms Platforms Generative Knowledge Search User/Consumer AI Platforms Experience 8
Slide 9: … and other types of AI solution areas
… and other types of AI solution areas ..and other types of AI solution areas Predictive Analytics Personalization & recommendation Machine Vision Document Intelligence & OCR Advanced Text Decision analytics and NLP Optimization 9
Slide 10: Nagarro's AI partnership with Abdul Latif Jameel Group
Nagarro’s AI partnership with Abdul Latif Jameel Group Our AI-driven automotive lead management solution developed for ALJ Motors awarded the best AI use-case in World AI show in Dubai (May 2023) “…Thank you for pushing boundaries with us. #Nagarro ...Looking forward for more success ” Hesham Saad A
Slide 11: Diversified across industries and clients
Diversified across industries and clients Revenue by industry Revenue by customers 5% Telecom, Media and Entertainment 15% 6% 23% Top5 Horizontal Tech Automotive, Mfg. 6% and Industrial 9% Mgmt Consulting & Business Info Top 6-10 14% 7% Retail & CPG Life Sciences and Healthcare 8% 13% Energy, Utilit
Slide 12: Global opportunities served with global talent
Global opportunities served with global talent Revenue by geography Personnel worldwide 24% 17,938 Central Europe 28% Total professionals, of which... Rest of World (Germany is 22%) North America 12% Rest of Europe 16,438 Professionals in engineering 36% Central Europe comprises Austria, Croatia, Cz
Slide 13: Working with the leaders in each industry
Working with the leaders in each industry Automotive, Manufacturing and Industrial Energy, Utilities and Building Automation Travel and Logistics Public, Non-profit and Education Telecom, Media and Entertainment Life Sciences and Healthcare Retail and CPG Horizontal Tech 13 Financial Services and In
Slide 14: Large client base to develop over time
Large client base to develop over time 153 2020 LTM Sep 30, 2024 186 clients > €1mn revenue 72 16 14 19 6 14 Revenue €1-5 million €5-10 million > €10 million Avg relationship (years) 6.0 9.3 12.9 Data from acquired entities is included from date of acquisition; 2024 data is LTM as of Sep 30, 2024 14
Slide 15: Why customers choose us
Nagarro’s “Enterprise Agile” mindset, processes and organization design deliver: Why • Enterprise-class robust customers engineering • Agility in projects, agility in NPS adapting to changing choose us 62 business and technology environments 15 • Expertise across industries and regions NPS number is
Slide 16: Powered by a unique org design and culture
Powered by a unique org design and culture Virtual, global Emphasis on organization autonomy and choice rather than a federation of via internal marketplaces, not national orgs or legal entities top-down decision making Flat, entrepreneurial Proprietary “business management operating system” 16 50+
Slide 17: Capital allocation initiatives
Focus on maximizing stakeholder value via efficient allocation of capital Capital • Share buybacks up to €400 mn over the next 3 years allocation • Sustainable annual dividend policy of distributing between 10% – 20% of EBIT initiatives • Capital deployment for inorganic growth with an energetic ram
Slide 18: Open, global culture drives post-merger integration and synergies
Open, global culture drives post-merger integration and synergies Post spin-off 2014 2016 2017 2018 2019 2020 2021 2022 2023 2024 Softcon Mokriya Ciber iQuest Farabi-S4M GES Livisi Ripe Infocore FWD View Managed Design SAP Lifesciences, Mobile SAP IoT Concepts Product Financial services IoT banking
Slide 19: ESG@Nagarro
ESG@Nagarro Key ESG focus areas We are centered on cultivating an authentic and organic culture of thinking and doing good through our CARING value system Environment Social Governance • Climate action • Health, safety and wellbeing • Business ethics • Sustainable digital engineering • Diverse and i
Slide 20: Socially responsible – globally
Socially responsible – globally /1 1. Embracing diversity #ThrivingTogether 2. Understanding the science of language for inclusion #PowerofWords #BiasBreakers 3. Nagarro’s innovative neuro-inclusion program highlighted in WEF DEI /4 /2 Lighthouses report /6 4. Eliminating single use plastics by swit
Slide 21: Q3/9M FY 2024
Q3/9M FY 2024 21
Slide 22: Q3 2024, described
Q3 2024, described 5.0% organic CC YoY growth in a slow demand environment Clients generating revenue > €1mn continued to increase Data and AI continue to be conversation drivers Some pressure on margins due to slower growth than expected Solid operating cash flows 22
Slide 23: Q3 2024, by the numbers
Q3 2024, by the numbers €243m 0.5% 5.6% 31.5% €35m revenue QoQ revenue growth YoY revenue growth gross margin(1) adjusted EBITDA in constant currency in constant currency Industries’ YoY growth range Segments YoY growth range 39% -11% 10% -5% 15% public, non-profit & horizontal tech north america re
Slide 24: Diversification is our shield
Diversification is our shield Revenue by industry Revenue by customers 5% (PY 5%) Telecom, Media and Entertainment 15% 6% (PY 7%) 23% (PY 23%) Top5 Horizontal Tech Automotive, Mfg. 6% (PY 6%) and Industrial 9% Mgmt Consulting & Business Info Top 6-10 €243m 14% (PY 13%) 7% (PY 8%) €243m Retail & CPG
Slide 25: North America leads the gains
North America leads the gains Revenue by geography Personnel worldwide 24% 17,938 Central Europe 28% Total professionals, of which... Rest of World (Germany is 22%) (PY 26%) (PY 28%) €243m Q3’24 North America 12% Rest of Europe 16,438 Professionals in engineering (PY 34%) 36% (PY 12%) Central Europe
Slide 26: Net liabilities and cash flows healthy
Net liabilities and cash flows healthy Net liability €m Cash flow €m 1.1x 1.7x 1.3x -15.8 33.1 162.2 213.3 183.1 48.7 55.8 43.7 64.9 41.4 274.7 280.5 -5.4 216.5 -25.5 -51.8 -6.2 -110.2 -110.1 -141.0 Financial liabilities include drawdown on syndicated credit facility, working capital facilities, ban
Slide 27: Outlook
Outlook 2024 2025 guidance guidance Revenue ~€960 mn €1,020 – 1,080 mn Gross Margin ~30% ~30% Adjusted EBITDA >14% 14.5 – 15.5% FY24 guidance per announcement on Oct 15, 2024, at that day’s currency exchange rates and not including future acquisitions FY25 guidance per announcement on Jan 23, 2025,
Slide 28: Thank you
Thank you 28 © Nagarro