Softwareone Holding Ltd. · SIX:SWON
Softwareone — Crayon Group — Q1 2024 Earnings Presentation
21 slides from Softwareone's earnings presentation, May 7, 2024
Slide 1: Quarterly Results Q1 2024
Quarterly Results Q1 2024 Melissa Mulholland, CEO Brede Huser, CFO 7 May 2024
Slide 2: Disclaimer
Q1 2024 Disclaimer The statements contained in this presentation may include forward-looking statements, such as statements of future expectations regarding the Company's results of operations, financial condition, liquidity, prospects, growth and strategies. These statements are based on the manage
Slide 3: Q1 Highlights: Strong start of the year
Q1 HIGHLIGHTS Strong start of the year Amounts in NOK Solid growth driven by continued high demand for Software and Cloud 1,474m Gross Profit +17% growth Adjusted EBITDA development as planned 13.8% Adj. EBITDA Margin 1 -0.9bps change Strong working capital performance -1,085m Net working capital 86
Slide 4: Crayon is uniquely positioned across key fundamental market drivers
MARKET DYNAMICS Crayon is uniquely positioned across key fundamental market drivers Software and Cloud Services +19% Gross Profit Gross Profit +24% MNOK MNOK 2 441 3 149 +5% 2 047 +20% 2 543 MNOK 574 605 799 665 Q123 Q124 LTM Q123 LTM Q124 Q123 Q124 LTM Q123 LTM Q124 EBITDA EBITDA Margin 1 51% 53% 5
Slide 5: Market demand for software and cloud remain strong
FINANCIAL REVIEW Market demand for software and cloud remain strong Q1 Gross Profit by business area Q1 Adj. EBITDA by business area NOK million NOK million 71 1 474 222 12 400 -17 204 320 199 203 479 -213 SW & SW & SCE Consulting HQ/ Q1 2024 SW & SW & SCE Consulting HQ/ Q1 2024 Cloud Cloud Elim Clo
Slide 6: Strong growth in Europe – Nordics negatively impacted by Consulting
FINANCIAL REVIEW Strong growth in Europe – Nordics negatively impacted by Consulting Q1 Gross Profit by market cluster Q1 Adj. EBITDA by market cluster NOK million NOK million 111 1 474 21 203 158 37 328 148 -1 303 -2 574 Nordics Europe APAC US HQ/Elim Q1 2024 Nordics Europe APAC US HQ Q1 2024 & MEA
Slide 7: Crayon appointed an authorized Cloud Commerce Manager for Broadcom in Asia Pacific
ANNOUNCEMENT Crayon appointed an authorized Cloud Commerce Manager for Broadcom in Asia Pacific Crayon will: • Welcome all VMware Cloud Service Provider (VCSP) partners and provide them with support and services to help adopt the VMware Cloud Foundation, alongside storage, ransomware and disaster re
Slide 8: Crayon helps Verdane accelerate productivity with Microsoft Copilot
CUSTOMER STORY Crayon helps Verdane accelerate productivity with Microsoft Copilot Verdane is a specialist growth investment firm that partners with tech-enabled and sustainable European businesses. Their team of over 140 investment professionals Norway and operating experts are in Berlin, Munich, C
Slide 9: Key ESG publications
HIGHLIGHTS OF OUR ENVIRONMENTAL, SOCIAL AND GOVERNANCE PERFORMANCE IN 2023 Key ESG publications 2023 Full ESG Report 2023 Summary ESG Report 2023 Human Rights Transparency Statement 9
Slide 10: Financial Review
@ Crayon Financial Review
Slide 11: Strong working capital performance
FINANCIAL REVIEW Strong working capital performance Net working capital Q1 2024 Net working capital over time NOK million NOK million 253 905 Accounts receivable 8,385 -10 -121 -132 -671 -635 -280 -218 -450 -450 Impact from extended payment terms Inventory 0 -1,121 -1,085 Q1 22 Q2 22 Q3 22 Q4 22 Q1
Slide 12: Profit and loss – Q1 2024
FINANCIAL REVIEW Profit and loss – Q1 2024 NOK million Q1 2024 Q1 2023 2023 2022 • Operating expense includes NOK 25m in Gross Sales 13 936 11 676 49 077 38 761 bad debt provisions, whereof NOK 21m is Revenue 1 633 1 416 6 397 5 200 related to time value reduction of the Cost of sales -159 -159 -735
Slide 13: Balance sheet – Q1 2024
FINANCIAL REVIEW Balance sheet – Q1 2024 Mar 31 Mar 31 Mar 31 Mar 31 Assets 2024 2023 Equity and liabilities 2024 2023 Goodwill 3 314 3 279 Shareholders' equity 2 590 2 630 Other intangle assets 657 710 Interest bearing liabilities 1 793 2 529 Deferred tax asset 133 197 Deferred tax liabilities 120
Slide 14: Operating cash flow driven by continued strong working capital
FINANCIAL REVIEW Operating cash flow driven by continued strong working capital Cash flow from operating activities NOK million 2,177 Cash flow from operations driven 449 478 158 97 69 by changes net working capital -328 -497 -955 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 LTM cash develo
Slide 15: 2024 outlook
2024 OUTLOOK 2024 outlook LTM Q1 Medium 2023 2024 Comment 2024 term 2024 outlook implies organic growth Gross Profit growth 26% 18% 18-20% ~20% in line with medium-term outlook Gradual Continuing growth while also improving Adj. EBITDA margin 1 16.2% 16.0% 18-20% increase cost efficiency to 25% -2.5
Slide 16: Key take aways
(e/a) Key take aways
Slide 17: Key take aways
KEY TAKEAWAYS Key take aways Strong growth in a Gen AI in planning Strong balance sheet – scalable business model phase - significant continued high focus on with focus on delivering potential to unlock new cost and working capital margin improvement growth opportunities efficiency 17
Slide 18: Crayon Earnings Q1 2024 Q&A
CRAYON EARNINGS Q1 2024 Q&A
Slide 19: Appendix
(CJ) Crayon Appendix
Slide 20: Continued strong growth momentum and value creation
FINANCIAL REVIEW Continued strong growth momentum and value creation CAGR CAGR Gross Profit 12 months rolling 30% Adj. EBITDA 12 months rolling 22% NOK million NOK million 5.878 938 906 4.793 651 3.464 488 2.490 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2021
Slide 21: 56% of Gross Profit coming from international markets
FINANCIAL REVIEW 56% of Gross Profit coming from international markets Gross Profit1 Adj. EBITDA1 NOK million NOK million 48% 49% 57% 56% 56% 25% 42% 51% 37% 35% 5.877 839 5.662 919 938 380 435 4 640 4.496 430 336 329 188 266 3.145 3.270 413 3.165 103 2.543 105 2.345 1.546 600 634 605 535 1.119 415