Slide 1: Analysts' presentation, January 2019
Analysts‘ presentation, January 2019 DATAGROUP SE We manage IT © 2019 DATAGROUP
Slide 2: Why invest in DATAGROUP?
Why invest in DATAGROUP? ▪ Leading IT Service Provider for the German “Mittelstand” ▪ Strong Profitability: EBITDA-Margin 12.6%; EBIT-Margin 7.5% ▪ Strong Growth: CAGR of 16% from FY 08/09 until 17/18 ▪ Recurring revenues: 88% of gross profit are based on service level agreements ▪ High resilience:
Slide 3: Leading IT service provider in Germany
Leading IT service provider in Germany* The agile IT service provider with the highest customer satisfaction Close to our customers across Germany Full Service offering for IT and Cloud Services for companies with 100 – 5.000m € annual revenues More than 2.000 employees exclusively in German
Slide 4: CORBOX: Our full service offer for companies
CORBOX: Our full service offer for companies Data Center Network End User “Service-as-a-Product” replaces “time- Services Services Services and-material” Application Cloud SAP Modular offering for care-free IT Mgmt. Services Services Services Economies of scale by industrial Security productio
Slide 5: Our customers focus on their core business …
Our customers focus on their core business … ▪ ECE is European market leader for inner-city shopping centers ▪ Core business is the development, realization, leasing and operation of commercial real estate ▪ Ca. 200 shopping centers in Germany and abroad 5 DATAGROUP | We manage IT | Analysts' presen
Slide 6: … while we take care of their IT.
… while we take care of their IT. ▪ Operation, surveillance, maintenance CORBOX Private Cloud (update) and backup of app. 600 servers Data Center Network End User Services Services Services ▪ User management for 3,300 seats Application Mgmt. Cloud SAP ▪ Operation of 200 applications Services Service
Slide 7: CORBOX guarantees recurring revenues
CORBOX guarantees recurring revenues Sample Customer Contract phase 2 Revenue in m € Contract phase 1 1.5 1.0 0.5 Transition 0.0 Jahr 0 year 1 year 2 year 3 year 4 year 5 year 6 year 7 Projects CORBOX basic contract CORBOX upselling Increased delivery level (fix volume) of services Recurring revenue
Slide 8: Basis for CORBOX is standardisation,…
Basis for CORBOX is standardisation,… Model = Plant’s manual Service catalogue Describes the provision of = Our services services according to industrial Describes the plant‘s standards on the basis of standardized services defined roles, processes and procedures Standardized services Service A Serv
Slide 9: … data centers in Germany in colocation…
… data centers in Germany in colocation… That means: ▪ Less Capex ▪ Maximum security ▪ Perfect connectivity / Geo redundancy ▪ Highest flexibility, virtually scalable at will and without fixed expenses 9 DATAGROUP | We manage IT | Analysts' presentation January 2019 (2) © 2019 DATAGROUP
Slide 10: … and an optimal combination of local and central production
… and an optimal combination of local and central production. Local presence for 160 Customers Eye height Proximity DATAGROUP On-site Services Local presence on site Sales Success Virtually centralized Centralized production units production units Efficiency gains Data SAP Service AMS Cent
Slide 11: DATAGROUP as Cloud Enabler
DATAGROUP as Cloud Enabler CORBOX Private Cloud Public Cloud Services On Premise Data Center Custom-fit solutions for different customer requirements 11 DATAGROUP | We manage IT | Analysts' presentation January 2019 (2) © 2019 DATAGROUP
Slide 12: Strong order intake with CORBOX among new and existing customers
Strong order intake with CORBOX among new and existing customers Publishing group Chemical Industry Automotive Automotive Construction supplier industry Full Outsourcing Full Outsourcing SAP Services Full Outsourcing Full Outsourcing 5 years 3 years 3 years 5 years 3 years 542 T€ / year 284 T€ / yea
Slide 13: Our customers (extract)
Our customers (extract) ▪ No cluster risk, largest customer < 4% of gross profit ▪ No sector risk ▪ Hardly economic risk 13 DATAGROUP | We manage IT | Analysts' presentation January 2019 (2) © 2019 DATAGROUP
Slide 14: DATAGROUP among the Top 3 in customer satisfaction
DATAGROUP among the Top 3 in customer satisfaction Average in customer satisfaction= 66% TCS 77% NTT Data (Itelligence) 76% IT Outsourcing Study Germany DATAGROUP 75% Google 74% 2018 by Whitelane Research and HCL 74% Navisco AG Amazon 72% Cognizant 71% Wipro 71% QSC (Info AG) 70% ▪ Most extensive in
Slide 15: Strong growth of revenue and EBITDA 17/18
Strong growth of revenue and EBITDA 17/18 One-off effects decline m€ Revenues m€ EBITDA 272.1 34.5 280 36.0 36.0 17/18 + 0.8 m € HPE/DXC Guidance: 0.8 +22% > 269 Guidance: > 34 +28% 16/17 et al. + 2.7 m € lucky buy 223.1 +27% HanseCom 27.0 210 28.0 28.0 + 1.7 m € HPE/DXC 174.9 +41% 4.4 EBITDA ma
Slide 16: Strong growth in recurring revenues from high margin services
Strong growth in recurring revenues from high margin services m € Revenues 08/09 –17/18 300 272.1 88% gross margin 17/18 by recurring revenues 223.1 225 174.9 165 Recurring revenues 156.9 157.6 152.4 146.2 125 150 37 76 32 42 57 108.6 79.3 24 73.5 56 63 34 75 57 45 39 32 6 11 34 22 25 23 9 15 16 19
Slide 17: Fiscal Year 17/18: Growth in EPS
Fiscal Year 17/18: Growth in EPS Cent EPS Underproportional growth in EPS because of 160 acquisitions and investments 155** Amortisation on tangible assets increase from 150 +10% 5.3m to 10.1m € because of: Increase in intangible assets from consolidation of newly acquired companies 141* 140
Slide 18: Fiscal Year 17/18: Cashflow
Fiscal Year 17/18: Cashflow m€ Operative cashflow One-off effects in cashflow 17/18 36 ▪ + 3.1m € received payment on pensions 32.5 ▪ - 3.6m € capital needs for pre-financing -11.9 of large projects 28 ▪ - 2.2m € others +5.3% One-off effects in cashflow 16/17 21.7 ▪ - 5.0m € down-payment HPE/DXC 20
Slide 19: Selected key balance sheet figures FY 17/18
Selected key balance sheet figures FY 17/18 In T€ 30/09/17 30/09/18 Changes Goodwill 39,630 46,556 17.5% Long-term financial liabilities 95,881 86,707 -9.6% thereof liabilities to financial institutions 40,111 29,764 -25.8% thereof liabilities from finance leases 3,601 1,915 -46.8% thereof pension p
Slide 20: Organic growth of our companies
Organic growth of our companies Growth in % 20% 20 24.0% 15% 15 18.6% Growth rate per year: 10% 10 8.7% Parent Companies (organic growth) 05% Companies in transformation 5 5.9% 5.3% 6.0% 2.7% 4.2% 2.6% Newly acquired companies 2.3% 0 00% (acquisition growth) -1.5% -1.9% -1.7% -2.7% -1.0% Growth rate
Slide 21: Development of EBITDA
Development of EBITDA m € EBITDA 08/09 – 17/18 34.5 36 0.8 Increase in productivity Decrease in personnel ratio 27.0* 12.6% Newly acquired companies 4.4 exceed forecast 19.1 18 3.1 12.1% 15.3 10.8 10.3 after after a.o. 10.9% a.o. 9.5 9.7% 6.0 6.9% 6.8% 6.5% 5.5% 0 One-off effects 10/11 11/12 1
Slide 22: Growth strategy
Growth strategy 24% IT services 40 30% Telco services 49 ICT market Germany: 164bn € p.a. 4% Telco infrastructure 7 24 15% IT hardware 11 9 24 6% Telco end devices 15% Software 6% Consumer electronics In € m 22 DATAGROUP | We manage IT | Analysts' presentation January 2019 (2) © 2019 DATAGROUP Sourc
Slide 23: Growth pillar 1: New customer acquisition
Growth pillar 1: New customer acquisition App. 5.000 potential CORBOX customers in segment 100m – 5.000m € in revenues Therefrom currently 160 existing customers Fiscal Year 17/18 20 new CORBOX customers and 14 enhanced 23 DATAGROUP | We manage IT | Analysts' presentation January 2019 (2) © 2019 DAT
Slide 24: Growth pillar 1: New customer acquisition
Growth pillar 1: New customer acquisition New customers p.a. ▪ By 2020/21 > 220 customers Existing customers through organic growth Number of customers are realistic Actual Target ▪ Additional customers through 225 Faster growth possible acquisitions through acquisitions ▪ 17/18 volume exceeded expe
Slide 25: Growth pillar 2: Upselling to existing customers
Growth pillar 2: Upselling to existing customers Customers for this Goal: All of them buy a service family variety of CORBOX services 160 Number of existing 74 88 86 customers 117 Kunden 121 122 124 Anzahl 86 72 74 39 43 38 36 0 Service Data Network End AMS SAP Comm. Desk Center User + Coll. Growth
Slide 26: Growth pillar 3: Acquisitions
Growth pillar 3: Acquisitions 2007, November: 2010, October: 2011, September: 2016, September: 2018, January: 2006, September: Corporate Express Ptecs (50 DATAGROUP Consulting HP Enterprise Almato IPO (20 employees) employees) (10 employees) (306 Mitarbeiter) (40 employees) 2007, January: 2012, Janu
Slide 27: Cost of growth organic vs. M&A based
Cost of growth organic vs. M&A based T€ Cost per customer 600 600 Organic growth 33% less (per customer ca. 600 T€) expensive ▪ Slow ▪ Unsecure 400 400 ▪ Expensive M&A based growth (per customer ca. 400 T€) 200 ▪ Faster ▪ More secure ▪ Less expensive 0 organic M&A based 27 DATAGROUP | We manage IT |
Slide 28: Realized purchase price multiples
Realized purchase price multiples Company Price of Multiples at date Multiples on the basis of (Years of acquisition: acquisition of acquisition actual / forecast 17/18 2006 – 2018) (net) In T€ EBITDA EBIT EBITDA EBIT Company 1 1,460 1.8 2.1 0.8 0.9 Company 2 13,199 4.7 4.9 2.7 2.7 Company 3 477 2.7
Slide 29: Scenarios incl. acquisitions and upselling
Scenarios incl. acquisitions and upselling Conclusion: Strong growth with 3 pillars possible m € Revenues Ambition by 20/21: 500 > 13% EBITDA ~ 10% EBIT 400 300 200 other revenues except CORBOX min. CORBOX revenues 100 max. CORBOX revenues realized revenues 0 16/17 2016/17 17/18 2017/18 18/19(e)
Slide 30: Shareholder structure
Shareholder structure ▪ 8.349m shares 7% Executives / Advisory Board / Management ▪ 283.9m € market cap (21/01/2019) ▪ Main shareholder in free float*: Investor Percent % Deutsche Bank AG 3.27 Taaleritehtaan Rahas 2.04 42% Lannebo Fonder AB 1.02 Free float Fondbolaget Fondita 0.95 Universal Investme
Slide 31: DATAGROUP share vs. indices
DATAGROUP share vs. indices In % DATAGROUP share Prime all share (performance) TecDAX SDAX DAX € 34.00 (Status: 21/01/2019) Analysts‘ comment (Target price/rating) Warburg Research EUR 53.00, Buy Hauck & Aufhäuser EUR 45.00, Buy Baader Helvea EUR 32.00, Hold 2009 2010 2011 2012 2013 2014 2015 2016 2
Slide 32: Share trading volume
Share trading volume m € Average trading volume per month Period Avg. daily Trading volume volume (unit) (unit) Jan 2018 14,769 324,914 11.4 12,000 12.0 Feb 2018 17,019 340,388 Mar 2018 11,571 242,992 9.8 Apr 2018 9,214 184,287 9,000 9.0 May 2018 13,183 276,853 Jun 2018 9,818 206,178 Jul 2018 6,542
Slide 33: Upcoming events
Upcoming events 21/02/2019 Publication of Q1 figures 14/03/2019 Annual general shareholder meeting, Pliezhausen 21/05/2019 Publication of Q2 and HY report 20/08/2019 Publication of Q3 and 9M figures 25/11/2019 Publication of the preliminary figures for the fiscal year 18/19 33 DATAGROUP | We manage
Slide 34: Thank you for your attention!
Thank you for your attention! Max H.-H. Schaber, CEO Claudia Erning, Investor Relations DATAGROUP SE ▪ Wilhelm-Schickard-Straße 7 ▪ 72124 Pliezhausen www.datagroup.de 34 DATAGROUP | We manage IT | Analysts' presentation January 2019 (2) © 2019 DATAGROUP
Slide 35: Appendices
Appendices 35 DATAGROUP | We manage IT | Analysts' presentation January 2019 (2) © 2019 DATAGROUP
Slide 36: Selected profit and loss statement figures FY 17/18
Selected profit and loss statement figures FY 17/18 In T€ 30/09/17 30/09/18 Changes Revenues 223,142 272,100 21.9% Other own work capitalised 627 685 9.3% Total revenues 223,769 272,785 21.9% Material expenses / expenses for purchased services 64,230 80,401 25.2% Gross profit 159,539 192,384 20.6% P
Slide 37: Development in bank liabilities and amortisation from PPA well on track
Development in bank liabilities and amortisation from PPA well on track Development in bank liabilities Development in amortisation from PPA (forecast as at 30/09) Cash (as at 30/09) Effects from Almato acquisition m€ T€ Existing liabilities 3,965 70 4,000 3,703 3,500 60 3,189 53 2,789 48 48 3,000 5
Slide 38: Management Board
Management Board Max H.-H. Schaber Dirk Peters Andreas Baresel CEO COO CPO Founder of DATAGROUP, member and Founder and Manager of DATAGROUP Member of the Management Board (CPO) of Chairman of the Management Board of Hamburg GmbH (prev. HDT Hanseatische DATAGROUP SE since October 2018 DATAGROUP SE s
Slide 39: Supervisory Board
Supervisory Board Heinz Hilgert Dr. Helmut Mahler Dr. Carola Wittig Chairman of the Supervisory Board Deputy Chairman of the Supervisory Board Member of the Supervisory Board Chairman of the Supervisory Board Member of the Supervisory Board since Member of the Supervisory Board since since 201
Slide 40: Contact information
Contact information Claudia Erning Investor Relations Tel. +49 7127 970 015 Mobil: +49 160 968 98171 Claudia.Erning@datagroup.de DATAGROUP SE Wilhelm-Schickard-Straße 7 72124 Pliezhausen www.datagroup.de 40 DATAGROUP | We manage IT | Analysts' presentation January 2019 (2) © 2019 DATAGROUP
Slide 41: Disclaimer
Disclaimer This presentation has been produced by DATAGROUP SE with the sole purpose of providing decision support for the recipient. This presentation is no prospectus and in no way is intended to be an offer or solicitation to purchase or subscribe to corporate shares or other securities. This pre