Slide 1: Summary Q4 2020
Summary Q4 2020 11 February, 2021 Jonas Hasselberg CEO and President jonas.hasselberg@proact.eu Linda Höljö CFO www.proact.eu linda.holjo@proact.eu
Slide 2: Agenda
Agenda • Proact introduction • Quarter in brief • Key developments • Financial results • Summary Jonas Hasselberg Linda Höljö CEO and President CFO
Slide 3: Who is Proact
Who is Proact FI NO 1994 Almost 3 decades of helping customers drive SE business value and growth – through IT EE LV DK LT 4,000 Medium and large enterprise UK NL customers across Europe BE DE CZ SK 350 Million euro turnover with stable finances. Listed on Nasdaq Stockholm since 1999 1,000 Employees
Slide 4: Businesses across all industries are in state of transformation
Businesses across all industries are in "state of transformation”. Data is the key to this transformation. Long-term CIO Agenda Corona impact on CIO Agenda - Generate business value and enable innovation - Need for accelerated digitalisation - Increase flexibility, speed and availability - New secur
Slide 5: Key markets deep dive
Key markets deep dive Key predictions Systems (storage, network and compute) $14,000 +8,0% Managed Services (total) $12,000 $10,000 $8,000 +7,0% Managed DC/Infrastructure Services $6,000 $4,000 $2,000 $0 +9,2% Managed Security Services +7,4% Managed Network Services Sources: IDC, Gartner, 2019 2020
Slide 6: Meeting our customers needs
Meeting our customers needs Data management specialist helping our customers store, connect, protect, secure and enable them to drive value through data.
Slide 7: Customer example 2020 Fortnox
Customer example 2020 Fortnox • Business value through a new flexible and scalable solution using multicloud infrastructure and cloud services – with seamless integration • Ability to add more customers to their own platform with enhanced security and features • New abilities to drive own SaaS platf
Slide 8: Customer example 2020 NHS Blood & Transplant
Customer example 2020 NHS Blood & Transplant • Critical data center infrastructure to improve donor operations in UK • Private Cloud architecture based on hyper-converged solutions enabling agility and scalability • Design, delivery and support services aligned with customer’s business challenges
Slide 9: Quarter in brief – strong results and growth in Cloud contracts
Quarter in brief – strong results and growth in Cloud contracts + Adj EBITA up 36% to 66 (49) MSEK – Revenue -1% to 982 (991) MSEK + Improved EBITA margin to 6.8% (4.9%) – Covid-19 uncertainties + Cloud contract value of 142 (97) MSEK + 9% up in Cloud revenue + 3% growth of Services + Proposed divid
Slide 10: Key developments in Q4
Key developments in Q4 October • Acquisition of Cetus Solutions Ltd in UK • New partner level with Nvidia in data management and AI November • Partner recognition from Dell (Service Delivery Excellence) December • Partner award from NetApp (Flash partner of the year) • Partner award from NetApp (Sol
Slide 11: Financial development
Financial development
Slide 12: Income Statement – Highlights Q4 2020
Income Statement – Highlights Q4 2020 TOTAL REVENUE SYSTEM SALES SERVICES SALES GROWTH MSEK GROWTH MSEK GROWTH MSEK -1% 982 -3% 617 3% 365 Adj. EBITA Adj. PROFIT BEFORE TAX GROWTH MSEK % GROWTH MSEK % 36% 66.4 6.8% 58% 53.6 5.5%
Slide 13: Revenue development
Revenue development Key developments in the fourth quarter • Revenue decline of -1% • -1% organically • Full year growth of 7% (1% organically) • Services growth 3% • 4% organically • Services share of 40% for full year (37% in Q4) • Systems decline of -3% • -3% organically • Cloud revenue growth of
Slide 14: Profitability development
Profitability development Key developments in the fourth quarter • Adjusted EBITA of 66.4 MSEK (48.8) • Margin of 6.8% (4.9%) • Growth of 36% • Gross margin declining somewhat • Services gross margins slightly lower • SG&A costs reducing by 18% for comparable units • Cost savings program • Limited t
Slide 15: BU Nordics
BU Nordics Key developments in the fourth quarter • Revenue decline of -1% • Systems -1% • Services 2% • EBITA margin decreasing to 6.5% (7.2%) • EBITA of SEK 32.7 (36.5) million • Reduced SG&A costs of 13%
Slide 16: BU UK
BU UK Key developments in the fourth quarter • Revenue growth 12%, 4% organically • Systems 30%, 11% organically • Services -2%, -2% organically • Cetus included in numbers from November 1st • EBITA margin increasing to 7.0% (4.2%) • EBITA of SEK 11.2 (6.1) million • Reduced SG&A costs of 10% organi
Slide 17: BU West
BU West Key developments in the fourth quarter • Revenue decline of 8% • Organic decline of -8% • Systems -27% • Services 10% • Covid-19 impacting organic growth • EBITA margin increasing to 3.1% (2.3%) • EBITA of SEK 8.6 (7.0) million • Reduced SG&A costs of 14% for comparable units • Previously im
Slide 18: BU East
BU East Key developments in the fourth quarter • Revenue decline of -23% • Systems -32% • Services -3% • Covid 19 impacting growth • EBITA margin increasing to 12.2% (5.4%) • EBITA of SEK 5.6 (3.2) million • Reduced SG&A costs of 12%
Slide 19: Cash flow in Q4
Cash flow in Q4 Liquid Funds September 30, 2020 396 • Positive cash flow from current operations of Cash-flow from current operations 266 266 MSEK Current operations 91 • Positive change in working capital Change in working capital 175 • Fixed assets; Proact Finance -14 MSEK Cash-flow from investmen
Slide 20: Cash flow January-December 2020
Cash flow January-December 2020 Liquid Funds December 31, 2019 373 • Positive cash flow from current operations Cash-flow from current operations 468 • Positive change in working capital; 106 MSEK Current operations 362 • Fixed assets; Proact Finance -50 MSEK Change in working capital 106 Cash-flow
Slide 21: Balance sheet
Balance sheet 2020 2019 • Equity ratio of 21% (MSEK) Dec 31 Dec 31 • Cash position of 468 MSEK Total Assets 2,924 2,877 whereof Goodwill 552 516 • Net cash of 22 MSEK, improved since end whereof Intangible fixed assets 112 93 of Dec 2019 whereof Accounts receivables 541 613 • Unutilized overdrafts o
Slide 22: Financial goals
SALES GROWTH FINANCIAL TARGET OUTCOME 3,633 MSEK, 8% excluding FX effects GOALS >10% 7% Rolling 12 months EBITA MARGIN TARGET OUTCOME* Adjusted for one-time costs 8% 6.0% NET DEBT/EBITDA TARGET OUTCOME Net cash position <2 -0,06 ROCE TARGET OUTCOME Impacted by IFRS 16 and acquisitions >25% 17.1% DIV
Slide 23: Summary
Summary • Record EBITA results • Strong Cloud total contracts value • Successful acquisition of Cetus Solutions Ltd. • Short-term impact of pandemic remains uncertain
Slide 24: Thank you
PROACT Thank you www.proact.eu in@ fiv