Slide 1: Thinking Breakthroughs
@® nagarro Thinking Breakthroughs
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 forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the manage
Slide 3: Nagarro — a global company with no single HQ
Nagarro — a global company with no single HQ N America Atlanta Indianapolis New York Boston Jacksonville San Jose Chicago Monterrey Toronto EMEA Brasov Helsinki Strassbourg Bucharest Johannesburg Stockholm Cluj-Napoca Karlsruhe Stuttgart Cologne London Timisoara Copenhagen Leipzig Valletta Craiova L
Slide 4: Nagarro at a glance
Nagarro at a glance • A global tech services company domiciled in Germany FY 2020 • €430 million • Fast-growing, scaled, diversified, digital engineering leader revenue with a full-service portfolio • €76 million adjusted EBITDA • ~12,000 Nagarrians across 27 countries • 18% adjusted EBITDA margin •
Slide 5: Our Mission Statement
Our Mission Statement To make distance irrelevant between intelligent people
Slide 6: Our core values
Our core values Caring is our superpower Client-centric Agile Responsible Intelligent Non- Global hierarchical 6
Slide 7: Addressing a large, fast-growing digital services market
Addressing a large, fast-growing digital services market Growing spend on digital IT services, supported by structural tailwinds $543 billion Automotive, Manufacturing Connected Everything 2024 and Industrial Telecom, Media and Entertainment Immersive Experiences CAGR 12% 2020-24 Travel and Aviation
Slide 8: Differentiated market positioning
Differentiated market positioning Engineering DNA strengths: Engineering DNA • Client intimacy • Rapid prototyping • Agile development Consulting DNA • Lean, small-team culture • Architecture and code quality • Use of new technologies Excellence in digital • Product management product engineering to
Slide 9: Diversified across industries and customers
Diversified across industries and customers Revenue by industry Revenue by customers 6% 7% Mgmt. Consulting and 11% Life Sciences and Business Information Healthcare 18% Top 6–10 Automotive, Manufacturing 7% and Industrial Public, Non- 15% profit, Education Top 5 7% Telecom, Media and Entertainment
Slide 10: Serving global opportunities with global talent
Serving global opportunities with global talent Revenue by client region Personnel worldwide 18% Rest of World 12,052 32% total professionals, of which... Central Europe (Germany is 23%) 11,116 professionals in engineering 36% North America 14% Rest of Europe Central Europe comprises Austria, Croati
Slide 11: 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 Financial Services and Insur
Slide 12: Why customers choose us
Why customers choose us Nagarro’s “Enterprise Agile” mindset, processes and organization design deliver: • Enterprise-class robust engineering • Agility in projects and in client engagements • Expertise applied flexibly across industries and regions • Agility in adapting to changing business and tec
Slide 13: Powered by a unique org design and culture
Powered by a unique org design and culture 13
Slide 14: Powered by a unique org design and culture
Powered by a unique org design and culture • Virtual, global organization rather than a federation of national orgs or legal entities • Emphasis on autonomy and choice via internal marketplaces, not top-down decision making • Flat, entrepreneurial management 50+ top-level leaders, >25% of them entre
Slide 15: Open, global culture driving post-merger integration and synergies
Open, global culture driving post-merger integration and synergies Bringing the target’s capabilities to the world… …and bringing global capabilities to the target’s clients 15
Slide 16: Socially responsible around the globe
Socially responsible around the globe Testing Pro for people with autism Saving lives via road safety Incubating a university Making art accessible With WWF against single-use plastic Organizing car-free days 16
Slide 17: Q3 2021
Q3 2021
Slide 18: Q3 described
Q3 described Highlights Milestones • Another quarter of strong, broad-based growth • 33.6% YoY revenue growth in constant currency • Excellent client satisfaction despite largely remote working • 10.7% QoQ revenue growth • Continued competition for top engineering talent • ~12,000 Nagarrians • Margi
Slide 19: Q3 by the numbers
Q3 by the numbers €141m 33.7% 10.7% 28.4% €21.7m revenue YoY revenue growth QoQ revenue growth gross margin adjusted EBITDA INDUSTRIES’ YoY GROWTH RANGE SEGMENTS’ YoY GROWTH RANGE 63% -12% 73% 15% 15% horizontal tech mgmt. consulting rest of world central europe top 5 clients’ revenue & business inf
Slide 20: Broad growth, led by Auto, Mfg & Industrial, Retail & CPG
Broad growth, led by Auto, Mfg & Industrial, Retail & CPG Revenue by industry Revenue by customers 6% (PY 9%) 7% (PY 7%) Mgmt. Consulting and 11% Life Sciences and Business Information Healthcare 18% (PY 15%) Top 6–10 Automotive, Manufacturing 7% (PY 6%) and Industrial Public, Non- 15% profit, Educa
Slide 21: Serving global opportunities with global talent
Serving global opportunities with global talent Revenue by client region Personnel worldwide 18% (PY 14%) Rest of World 12,052 32% (PY 37%) total professionals, of which... Central Europe (Germany is 23%) €141m Q3 ’21 11,116 professionals in engineering 36% (PY 35%) North America 14% (PY 15%) Rest o
Slide 22: Segment revenues and gross margins
Segment revenues and gross margins Revenues €m 50.9 44.8 39.0 36.4 25.3 19.9 15.4 14.6 Gross margin 29% 28% 37% 27% 33% 31% 34% 31% Q3 ’20 Q3 ’21 Q3 ’20 Q3 ’21 Q3 ’20 Q3 ’21 Q3 ’20 Q3 ’21 Central Europe North America Rest of Europe Rest of World . 22
Slide 23: Net liabilities and cash flows
Net liabilities and cash flows Net liabilities Cash flows €m €m Net leverage 1.7x 1.6x Total cash flows 36.5 -0.8 Net liabilities 130.0 127.8 Lease liabilities 55.2 56.9 56.0 Financial liabilities 182.6 180.6 21.1 Net cash flow from operating activities Net cash flow from -6.6 -6.7 investing activit
Slide 24: Outlook
Outlook 2021 Revenue ~€525m (~22% growth) Gross margin ~28% Adjusted EBITDA ~14% 24
Slide 25: Nagarro: investment highlights
Nagarro: investment highlights 1. Positioning “Engineering DNA” digital leader with a special “Enterprise Agile” approach 2. Clients Large, global, blue-chip customer base 3. Organization Agile, entrepreneurial and global org design and culture 4. Financials Strong revenue growth, attractive margins
Slide 26: Thank you
Thank you