Slide 1: Investor presentation
Investor presentation Alpha Data
Slide 2: Who We Are
WHO WE ARE
Slide 3: About Us
About Us Leading System Integrator 1981 ESTABLISHED TURNOVER FY-2024 2.3 billion AED ABU DHABI HEAD OFFICE Saudi Arabia Qatar 2200+ CLIENTS UAE 1500+ WORKFORCE Confidential Document – Rights Reserve By ALPHA DATA LLC
Slide 4: Alpha Data: A Digital Transformation Company
Alpha Data: A Digital Transformation Company Proven Wide Range Reputable Robust Seasoned Track Record of of Products, Customer Base & Vendor Financial Top Management Team Operation Excellence Services and Solutions Partnerships Performance Leading Growth 21.9% 40+ Cybersecurity 250+ Years Extensive
Slide 5: Our mission: Accelerate Our Clients' Transition To A Digital First Organization
Our mission: Accelerate Our Clients' Transition To A Digital First Organization The new digital organization ❖ Scalable infrastructure ❖ Edge to cloud health check ❖ Safeguard mission critical applications Cloud Mordern Security IoT AI Workspace ❖ Help clients monetize their Big Data ❖ Acceleration
Slide 6: 40+ years of operational excellence
40+ years of operational excellence Gulf market growth AI AI agents takeoff KSA Qatar Digital Transfor Talent mation Recruitment Digital AED 2bn revenue 2023 Telephony Expanded First PC to Dubai Dealer in ME AED 1bn Established revenue 2017 1981 1983 1986 1996 2014 2015 2022 2023 2024 Future 6
Slide 7: Strong Growth Environment
STRONG GROWTH ENVIRONMENT
Slide 8: Addressable Market for Alpha Data
Addressable Market for Alpha Data - Infrastructure, Cybersecurity, Cloud, Mobility, Big Data & IOT, Software, Services, AI. Gulf ICT Market Spend (USD bn) Addressable Market1 for Alpha Data | USD bn 2 CAGR 2024E – 2028E: 8.8% UAE 14.7 13.5 11.4 12.4 9.6 10.5 2023A 2024E 2025E 2026E 2027E 2028E Addre
Slide 9: Value Proposition
VALUE PROPOSITION
Slide 10: Key differentiators
Key differentiators Depth and Breadth Industry Experience Innovative solutions across Track record delivering complex multiple technologies projects Flexible Commercial Models Accelerated Transformation Project based Recurring contracts Agile delivery Licensing Managed services Leasing Build–Operate
Slide 11: All-inclusive portfolio
All-inclusive portfolio Solutions Services Talent Full spectrum of services to meet a Specialist IT personnel to meet high customer Integrating advanced technologies to diverse range of needs across all demand for skilled IT individuals meet customer needs sectors Private/Public Cloud Security Opera
Slide 12: Solutions Segment Overview
Solutions Segment Overview Description Provides tailored IT solutions by integrating advanced technologies like cybersecurity, cloud, AI, big data, and automation from multiple vendors to meet specific customer needs Portfolio Offering Main Vendors A B Digital Infrastructure Mobility C D Cybersecuri
Slide 13: Services Segment Overview
Services Segment Overview Description Offers a full range of ICT services to consult, implement, monitor, manage, and maintain IT infrastructure, including network and cybersecurity, along with professional services, managed services, and digital transformation services Portfolio Offering Main Vendo
Slide 14: Alpha Data Recruitment Overview
Alpha Data Recruitment Overview Description Product Offering Emirati/Saudi Recruitment Services Satisfies high customer demand for skilled IT • Recruitment team includes Arabic speakers, understands individuals Emiratization and Saudization requirements RAAS – Resource as a Insourcing Service • Prov
Slide 15: Tried and Tested Business Model
Tried and Tested Business Model. Optimised Ecosystem for both Vendors and Customers Sales Drivers Consulting Solution Long-term Vendor Strategic IT and Architecture • Network Effect cybersecurity advice Partnerships Design • Direct Sales • Partners Solutions Customer Revenue Streams • Subscription F
Slide 16: Strong Multi-Vendor Partnerships
Strong Multi-Vendor Partnerships Advanced Specialized Titanium Partner Advanced Specialized Platinum Partner Platinum Partner Partner 15 Certified Platinum Partner Partner 8 Certified Engineers 15 Certified Engineers 110 Certified Engineers Engineers 21 Certified Engineers 25 Certified Engineers #1 #2
Slide 17: Diverse Blue-Chip Clients: Tailored Technology Solutions
Diverse Blue-Chip Clients: Tailored Technology Solutions Low Client Concentration (Revenue Contribution 2024) Customer 1 8.5% Customer 2 4.3% Customer 3 3.9% Customer 4 3.7% Top 10 clients contribute Customer 5 3.0% c. 33% of total revenue Customer 6 2.7% Customer 7 2.3% Customer 8 1.7% Customer 9 1
Slide 18: Cross-Selling & Long-Term Partnerships
Cross-Selling & Long-Term Partnerships Health Service Provider 2014 2007 Cybersecurity Cybersecurity Initiation Initiation 2022/23 Expansion 2014 2014 Architect & Migrate Metaverse-Telemedicine TurningPoint Turning Point Phase Billing 2024 2021 Transformation Primary Partner Organ Transplant Partner
Slide 19: Seasoned Management Team
Seasoned Management Team with a Wealth of Industry and Regional Experience Fayez Ibbini 45 Chief Executive Officer Corporate Governance Framework Haytham A S Layth Ibbini 20 29 Almomany Chief Operating Officer 9 Chief Financial Officer Board Members Sajeev Kumar 3 Amar Singh Perunnelly Farid Abou Independ
Slide 20: Financial Performance Overview
FINANCIAL PERFORMANCE OVERVIEW
Slide 21: Alpha Data Financial Snapshot
Alpha Data Financial Snapshot Solutions Services Talent 15% 6% 79% FY24 Revenue | AED 1,835m AED 362m AED 127m As % of total 8% 61% 31% FY24 Gross Profit | AED 177m AED 89m AED 25m As % of total FY24 Gross Margin1 9.6% 24.7% 19.8% Revenue: EBT2 | EBT margin3: Net Income | Net Income margin4: Total F
Slide 22: Robust Historical Growth Profile
Robust Historical Growth Profile Revenue | AEDm Business Model YoY Growth (%) 32.3% 18.2% 15.8% Recurring Revenue Base Talent revenue decrease of 3yr CAGR: 21.9% 8.8% in 2024 (compared to 2023) due to a major contract 2,323 expired in the same year Customizable CAGR 2,007 127 Service revenue decreas
Slide 23: Customer Concentration and Retention
Customer Concentration and Retention FY24 Revenue by top 10 customers Customer 1 8.5% Customer 2 4.3% Customer 3 3.9% Customer 4 3.7% Top 10 clients contributed Customer 5 3.0% c. 33% of total revenue Customer 6 2.7% Customer 7 2.3% Customer 8 1.7% Customer 9 1.6% Customer 10 1.6% FY24 Revenue by re
Slide 24: Revenue by Customer Type and Industry
Revenue by Customer Type and Industry FY24 Revenue by Customer type1 | AEDm Commentary • In 2024 revenues from GRE2 clients accounted for Other 42.9% of total revenues, with Governmental clients 23% (including UAE Authorities, Departments and Ministries) accounting for 13.1% in the same year. GRE 43
Slide 25: Revenue Seasonality
Revenue Seasonality Revenue Seasonality1 | AEDm Commentary 2023 • Q1: usually the start of the year benefits from residual billing of the previous year 2024 • Q3: Summer is holiday season, resulting in 2021 lower business activity 2022 • Q4: Clients tend to spend their remaining technology budget at
Slide 26: Cost of Sales and G&A Overview
Cost of Sales and G&A Overview Cost of Sales | AEDm Commentary 86.2% 87.7% 86.6% 87.5% • Stable direct cost base amounting to an average of 87.0% of revenues mainly comprising of 2,032 materials including hardware equipment (e.g. 1,738 207 computers, accessories) and software (e.g. 1,490 200 license
Slide 27: Resilient Gross Margin Profile
Resilient Gross Margin Profile Gross Profit and Gross Margin1 | AEDm, % Commentary Gross 13.8% 12.3% 13.4% 12.5% Margin1 • From FY21 to FY24 the Group delivered strong results with Gross Profit growing at 18.1% CAGR. 3yr CAGR: 18.1% • The Solutions segment contributed for c. 71% of the gross profit
Slide 28: Strong Net Income Growth and Stable Margins
Strong Net Income Growth and Stable Margins Net Income1 and Net Income Margin2 | AEDm, % Commentary Net Income 6.5% 6.0% 6.6% 5.5% 6.0% Margin4 • From FY21 to FY24 the Group delivered strong Net Income 2yr CAGR: 15.1% Net Income growth of 15.1% CAGR (18.8% on a Pre-tax profit yr 2yr CAGR: 18.8% pre-
Slide 29: Resilient long-term margin profile coupled with strong top-line growth
Resilient long-term margin profile coupled with strong top-line growth. Evolution of revenues and EBT* margins since 2014 in K AED Revenues EBT margin 2,500,000 20.00% 2,000,000 16.00% 1,500,000 12.00% 1,000,000 8.00% 500,000 4.00% 0 0.00% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 * Earnings
Slide 30: Capex-light Business Model, Easy to Scale
Capex-light Business Model, Easy to Scale and Able to Deliver Strong Growth and Value to the Shareholders Capex1 | AEDm FCF3 and FCF conversion4 | AEDm Dividends and DPO5 | AEDm As % of FCF Dividend 0.1% 0.1% 0.1% 0.1% 70% 109% 93% 138% Payout ratio5 72% 89% 67% 71% Revenue2 conversion4 Avg. FY21-24
Slide 31: Best-in-class Returns Ratios Amongst Peer Groups
Best-in-class Returns Ratios Amongst Peer Groups 51.1% 31.3% ✓ Alpha Data on an accelerated growth path 25.1% 11.8% 21.5% Revenue (1.2%) across all business segments CAGR Int’l Tech Int’l (2021-2023) Alpha Data MIS 2P Int'l Tech 5 Distributors Int'lVARs VARs 6 Robust & Steady ✓ GCC, particularly the
Slide 32: AI in Action
AI IN ACTION
Slide 33: AI Case Studies (1/2)
AI Case Studies (1/2) Education Banking Platform for Eliminating & Preventing Fraud in Al Use Case Development Realtime 33
Slide 34: AI Case Studies (2/2)
AI Case Studies (2/2) Government Healthcare Detection & Automated Response to Organ Transplant Security Breaches Matching - Donors & Patients 34
Slide 35: Over 50 active cases
Over 50 active cases 35
Slide 36: Management Outlook
MANAGEMENT OUTLOOK
Slide 37: Guidance FY-2025
Guidance FY-2025 ▪ We expect our revenues in 2025 to grow in line with our medium-term target of low- to Group revenues mid-teens increase. ▪ We expect our PBT* margin to reach a level of around 6%, following the usual PBT* margin seasonality pattern, with lower business activity and earnings during
Slide 38: Management Outlook (1/2)
Management Outlook (1/2) Medium Term Consolidated ▪ The Company is targeting Revenues to grow organically at low- to mid-teens in the near and medium term Geographic Mix Revenues ▪ The Company is targeting KSA and Qatar revenues to contribute low-mid single digit of total revenues in each year Segme
Slide 39: Management Outlook (2/2)
Management Outlook (2/2) Medium Term Consolidated PBT* Margin ▪ The Company is targeting PBT Margin to improve on account of operating leverage Consolidated Capex ▪ The Company is targeting capex to amount to 0.1% of total revenue in each year • The Company intends to distribute a dividend of AED 13
Slide 40: Concluding Remarks
CONCLUDING REMARKS
Slide 41: Value proposition summary
Value proposition summary Multi-Vendor Robust Financial Founder Led One-Stop Solution Robust Financials Performance Management Team Partnerships AI Pre-tax profit & profit margin IOT & Big Data 6.5% 6.0% 6.6% 6.0% Cybersecurity 3yr CAGR: 18.8% 6 Segment Directors Cloud 133 139 Mobility 83 101 250+ Y
Slide 42: Strong growth plan
Strong growth plan 1 Strong Macro and ICT Tailwinds in the UAE driven by AI and Digital Transformation Spend 2 Significant Opportunities in KSA and Qatar 3 Shift to Everything as a Service (XaaS) Delivery Model 4 Cost Control and Operational Efficiencies 42
Slide 43: Investment rationale
Investment rationale Participate in the digital Resilient economy Talent Reach Dividends Growth 43