Sword Group Se · EURONEXT:SWP

Sword — FY2018 Earnings Presentation

46 slides from Sword's earnings presentation, Mar 15, 2019

  1. Slide 1: SFAF Meeting FY2018

    SFAF MEETING FY2018 Paris March 15 2019

  2. Slide 2: Organisation

    Organisation Sword Group - March 19 2

  3. Slide 3: Organisation

    Organisation MANAGING DIRECTORS Dave Bruce Philippe Le Calvé Jacques Mottard Dieter Rogiers Nick Scully </> </> </> UK INDIA FRANCE IP SWITZERLAND MIDDLE EAST BELUX RISK GREECE COMPLIANCE GROUP CFOs M&A ADVISOR Laurence Blanc Services + Consolidated Frédéric Goosse Group CFO Phil Norgate Becky Marsl

  4. Slide 4: Group's Offer | Software & Services

    Group’s Offer | Software & Services INVESTIGATION DIGITAL GRC WORKPLACE INFORMATION DECISION SECURITY RPA AI CS IP GIS DATA Data Optimisation Specialist Sword Group - March 19 4

  5. Slide 5: At a Glance

    At a Glance IDENTITY FY2018 Successful, Growing, Financially Secure and Listed Consolidated Performance Software 23% International 1000+ customers €194.3m Revenue Group founded in over 50 2 offshore €27.2m (14.0%) IT Services in 2000 countries support centres 77% EBITDA FY2018 FY2018 Consolidated Re

  6. Slide 6: Latest Noteworthy Events

    Latest Noteworthy Events Sword Group - March 19 6

  7. Slide 7: Noteworthy Events in the Last Twelve Months (M&A)

    Noteworthy Events in the Last Twelve Months (M&A) 01/02/2018 09/04/2018 18/10/2018 31/12/2018 03/01/2019 Acquisition of Sale of Sword Sale of Apak Consolidation Acquisition of ID&O Performance of Tipik Magique Galileo Revenue: €2.6m Revenue: €7.7m Revenue: €31m Revenue: €10m Revenue: €1.6m EBITDA ma

  8. Slide 8: Noteworthy Events in the Last Twelve Months | Next Source of Growth

    Noteworthy Events in the Last Twelve Months | Next Source of Growth Momentum of existing R&D and Initiatives Intrapreneurship growth Sword Group - March 19 8

  9. Slide 9: GRC Software

    GRC Software Sword Group - March 19 9

  10. Slide 10: Major Successes in 2018 & Build Work

    Major Successes in 2018 & Build Work In A&D BAE, US Army Need to find opportunity in other Further expansion Brexit markets NASA, for ARM 10 & 2018 pipeline build will enable a 100% First Client multi browser Australia Licence increase in 2019 Every 12 working days (past 3 years) 2019 first signific

  11. Slide 11: 2019 New Offer

    2019 New Offer NEW BUSINESS OUTLINE TARGET MARKETS Acquisition 3 January Based in London Aerospace & Energy Infrastructure Government Financial Defense 140 Existing Customers 2 software solutions WHEN CONSIDERED WITH Magique, risk management  Active Risk Manager  Sword Compliance Manager Financial

  12. Slide 12: New Sword GRC Software | Product Line

    New Sword GRC Software | Product Line RISK AUDIT COMPLIANCE POLICY Defence, Energy, Transportation & Construction ARM Industries GALILEO COMPLIANCE POLICY MANAGER MANAGER Finance & other MAGIQUE Service Industries Sword Group - March 19 12

  13. Slide 13: Other Software

    Other Software Sword Group - March 19 13

  14. Slide 14: Other Sword's Software

    Other Sword’s Software NEW Sword Citizen Sword BizDock Sword Kami Sword Intellect Software to improve steering for the Open-source corePortfolio and Software for designing publishing local authority for service to the user Project management document templates Intellectual Property Rights Management

  15. Slide 15: Sword Vista Success

    Sword Vista Success NEW Sword Vista is a collaborative solution for the organisation of Sword Vista events (sports, commercial, cultural, ...) on complex sites: stadiums, exhibition centers, … Virtual Virtual Stadium Hospitality 1 2 Virtualisation of all the steps The digitalisation of to make virtu

  16. Slide 16: Other Successes

    Other Successes Customer: 5 projects Go live: Malaysia - Phase 1 Sword Insight Go live: Global cyber analysis platform Sword Intellect First Customer: Partner: Customer: Sword Citizen Sword BizDock Partner: New customers: Go live: Sword Orizon Sword Kami Go live: Sword Group - March 19 16

  17. Slide 17: Services France

    Services France Sword Group - March 19 17

  18. Slide 18: Health Strategy

    Health Strategy Health HISTORICAL INTRAPRENEURSHIP PARTNERSHIP Integrator Editor Incubator Care coordination NEW Sword Group - March 19 18

  19. Slide 19: Health Strategy | Integrator

    Health Strategy | Integrator Health Sword Group - March 19 19

  20. Slide 20: Other News | Top-tier clients

    Other News Top-tier clients Banking and Legal Luxury Health Public Sector Sport Transport Insurance ISO 27001 certification is in progress for Sword France Sword Group - March 19 20

  21. Slide 21: Services BeLux & Greece

    Services BeLux & Greece Sword Group - March 19 21

  22. Slide 22: Commercial Successes in 2018

    Commercial Successes in 2018 Signed 4 new contracts in 2018 with estimated We are still awaiting results of 2018 call for tenders / bids with total booking booking value of ≈ €35m New Contracts Awaited Results value of ≈ €80m Organic growth is at +14.4% Forecasted organic growth over the next 1 new

  23. Slide 23: The Success of the Greek Operation

    The Success of the Greek Operation Delivery Team Bid Team Key points in €m 250  Margins always above target  Linear growth of revenue 200  Exponential growth of staff 150 230  Intra-Group synergies 100 80 190  Low operational costs 50 43.5  Excellent quality of delivery 0 28 35  100% satisfie

  24. Slide 24: Consolidation of Tipik | Strategy

    Consolidation of Tipik | Strategy NEW Communication Media & Public Strategies Relations & Campaigns NEW Ӝ A Web/Mobile & Editorial Content & EU Legal Affairs Cloud Development Translations Technical Development Creation & Design Events & Conferences HISTORICAL 2018 Sword Group - March 19 24

  25. Slide 25: Services Switzerland

    Services Switzerland Sword Group - March 19 25

  26. Slide 26: 2018 | A Major Shift

    2018 | A Major Shift NEW Disposal ID&O Sword in Switzerland Sale of German-speaking Switzerland Micro acquisition and solving many problems A lack of growth Heterogeneous Infrastructure Refocusing strategy management Successful launch of a new activity Refocusing on French-speaking Switzerland and g

  27. Slide 27: Other News | Top-tier clients

    Other News Top-tier clients Luxury Health Sport Public Sector Sword Group - March 19 27

  28. Slide 28: 2018 Figures

    2018 Figures Sword Group - March 19 28

  29. Slide 29: FY2018 Key Figures | Revenue

    FY2018 Key Figures | Revenue (i) €194.3m €191.5m €171.4m €168.1m Consolidated Revenue Consolidated Revenue Revenue reported in Pro forma Revenue at constant standards with IFRS15 standards our financial report Sword Performance Sword Performance Sword Performance Excluding Sword over 3 months / over

  30. Slide 30: FY2018 Key Figures

    FY2018 Key Figures CONSTANT STANDARDS (i) PRO FORMA (ii) Organic growth at constant Organic growth at constant exchange rate exchange rate +18.3% +21.4% Revenue Revenue €194.3m €168.1m FY2018 FY2018 EBITDA margin 12.0% EBITDA margin 14.0% (i) Sword Performance over 3 months / Sword Apak over 9 month

  31. Slide 31: FY2018 Consolidated Breakdown

    FY2018 Consolidated Breakdown €m FY2018 AT CONSTANT STANDARDS (i) Revenue EBITDA Margin Asset Finance Solutions (ii) 24.6 24.2% Governance Risk & Compliance 13.3 25.8% Others 6.8 25.8% SOFTWARE 44.7 25.0% France 41.4 13.6% BeLux 28.4 8.3% Switzerland (iii) 25.4 10.8% UK 42.7 9.0% Others 11.7 12.6% I

  32. Slide 32: FY2018 Consolidated PnL

    FY2018 Consolidated PnL (i) (i) with no amortisation and at constant standards 2017 2018 €k % €k % Revenue 173,489 - 194,346 (ii) - Current EBITDA 27,809 16.0% 27,229 14.0% Current EBIT 24,427 14.1% 23,514 12.1% Non current costs 5,120 - - 68,956 - Financial costs 882 - 1,149 - Corporate tax 5,019 -

  33. Slide 33: FY2018 Organic Growth of our Stable Perimeter

    FY2018 Organic Growth of our Stable Perimeter % ORGANIC GROWTH Governance Risk & Compliance 11.2% Others 32.6% SOFTWARE 18.5% France 14.6% BeLux 13.8% Switzerland (i) 49.6% UK 22.6% Others 5.6% IT Services 21.8% TOTAL 21.4% (i) ID&O FY included / Sword Performance Q1 excluded Sword Group - March 19

  34. Slide 34: FY2018 PnL

    FY2018 PnL (i) (i) with no amortisation (ii) according to IFRS5 & IFRS15 standards (Financial Report) 2018 €K % Revenue 171,412 - Current EBITDA 20,145 11.8% Current EBIT 17,276 10.1% Non Current Costs - 69,202 - Financial Costs 1,010 - Corporate Tax 1,881 - Net profit after corporate tax, without A

  35. Slide 35: Net Cash Position

    Net Cash Position Net cash position Net cash position €20.6m €86.5m (i) (i) Deferred payment and earn outs payable in 2019 : €8.0m 31/12/2017 31/12/2018 Sword Group - March 19 35

  36. Slide 36: Capex & Amortisations

    Capex & Amortisations CAPEX pro forma (i) 2018 Pro forma amortisation (i) 2018 Tangible: €2.3m Tangible: €1.3m Intangible: €3.9m (ii) Intangible: €2.4m Total: €6.2m Total: €3.7m (i) Including ID&O (FY) - excluding Sword Apak, Sword Performance, Tipik and Magique Galileo (ii) In addition to capitaliz

  37. Slide 37: Backlog

    Backlog [31/12/2018] (i) Backlog: €400.6m (24 months) (i) Excluding Sword Apak, including Tipik [31/12/2017] Backlog: €390.9m (24.3 months) Sword Group - March 19 37

  38. Slide 38: 2018 Currency Breakdown

    2018 Currency Breakdown Currency % EUR 35.7% GBP 36.0% CHF 14.6% USD 6.0% Others 7.7% Sword Group - March 19 38

  39. Slide 39: Top Clients

    Top 10 Clients Company Location BP UK Chrysaor Holdings UK Limited 3 1 2 ConocoPhillips UK DG Customs BeLux The first 10 The first client clients represent represents 4.7% DG Justice BeLux 20.7% of the 2018 of the 2018 Eurostat BeLux Consolidated Revenue Consolidated Revenue Ministry of Business New

  40. Slide 40: FY2018 Staff

    FY2018 Staff DBS 31/12/2018 NDBS Total Employees Freelancers Total Software 115 14 129 25 154 IT Services 833 641 1,474 119 1,593 Offshore 187 102 289 7 296 Holding - - - 24 24 Total 1,135 757 (i) 1,892 175 2,067 (ii) (i) 471 full time equivalent (FTE) staff (ii) 1,781 full time equivalent (FTE) sta

  41. Slide 41: 2019 Dividends: €1.2

    2019 Dividends: €1.2 2017 34 33 2017 Total Share Return (TSR) +20% 01/01: €29.19 - 31/12: €33.84 Dividend paid in 2017: €1.2 32 +20.8% 31 CAC MID&SMALL 2018 30 29 2018 Total Share Return (TSR) 0% 01/01: €33.84 - 31/12: €29 Dividend paid in 2018: €4.8 28 01/01/2019 - 06/03/2019 -21.8% CAC MID&SMALL S

  42. Slide 42: 2019 Figures

    2019 Figures Sword Group - March 19 42

  43. Slide 43: 2019 Revenue

    2019 Revenue €168.1m 12%+ €188.3m+ €11.7m €200m+ Pro forma 2018 Organic growth 2019 Revenue Tipik & Magique Total 2019 Revenue Revenue (exc. Tipik & Magique Galileo 2019 Revenue (exc. Tipik & Magique Galileo) Galileo) → Targeted EBITDA margin: 13%+ (i) (i) included 1 point of improvement related to

  44. Slide 44: 2019 Budget

    2019 Budget % Rev / Total Rev GRC 9% Software IP + Others 3% BeLux 22% France 22% Services UK 22% Switzerland + Others 22% Sword Group - March 19 44

  45. Slide 45: Financial Calendar

    Financial Calendar 31 PUBLICATIONS MEETINGS  25/04/2019  29/04/2019 2019 Q1 Results Annual Shareholders Meeting | 2018  25/07/2019 2019 Q2 Results  12/09/2019 SFAF Meeting in Paris | H1-2019 Results  24/10/2019 2019 Q3 Results  12/03/2020  27/01/2020 SFAF Meeting in Paris | FY2019 Results 201

  46. Slide 46: 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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