Arribatec Group ASA · OSL:ARR
Arribatec Group ASA — Q2 2023 Earnings Presentation
19 slides from Arribatec Group ASA's earnings presentation, August 2023
Slide 1: Quarterly presentation Q2 2023
Quarterly presentation Q2 2023 ^ Geir Johansen, CEO
Slide 2: Highlights Q2
Highlights Q2 ^ • Quarterly revenue of NOK 148m (120m) and 23% growth – all organic • Positive EBTIDA of NOK 8.4m (-11.5m) an improvement of NOK 19.9 m • NOK 42m (58m) in cash plus unused credit facility of NOK 20m • Both consulting services and recurring revenue up +23%, all organic. • Signed 334 n
Slide 3: Significant EBITDA improvement last 6 months
Significant EBITDA improvement last 6 months ^ Revenue Payroll & OPEX EBITDA NOK 298m (246m) NOK 215m (206m) NOK 13.7m (-17.7m) H1-23 +21% h1/h1 +4.7% h1/h1 +177% or NOK 31.4m All organic Margin 4.6% NOK 148m (120m) NOK 105m (102m) NOK 8.4m(-11.5m) Q2-23 +23% qrt/qrt +2.9% qrt/qrt +173% or NOK 19.9m
Slide 4: Arribatec's five business areas
Arribatec's five business areas ^ Business Services • Enterprise architecture • Business process management • ERP products and services EA & BPM Cloud • Business intelligence & analytics • Cloud services • IT out-sourcing • Security & compliance Marine Hospitality 4
Slide 5: Q2 performance per business area vs. Q2-22
Q2 performance pr business area vs. Q2-22 ^ BizS EA-BPM Cloud 6% 8.5% 37 % 13.8% 12% 10.3% Revenue Growth EBITDA margin Revenue Growth EBITDA margin Revenue Growth EBITDA margin 75m* 6.5m** 28m* 3.9m** 32m* 3.3m** Revenue EBITDA Revenue EBITDA Revenue EBITDA HspT Marine 243% -2.9% 3.3% 37%* Revenue
Slide 6: Revenue development for each BA per quarter
Revenue development for each BA per quarter ^ Total 36% 37% 35% 34% 35% recurring % Outside 40% 41% 40% 38% 39% Norway 150m 150 148m 152 141m 9 Total revenue 120m 140 1 13 Marine 120 118m 2 118 8 Hspt 1 13 32 1 13 32 Cloud 1 30 EABPM 28 BizS 28 30 28 Elim. NOK mill. 28 20 20 83 76 72 75 67 -2 -5 1 -
Slide 7: EBITDA improvement of 31m from H1-22 to H1-23
EBITDA improvement of 31m from H1-22 to H1-23 • All business areas contributed to the 21%, all organic, revenue growth +52m • COGS increased 19% in accordance with +21% revenue, thus gross margin stable at 76% • Payroll increase includes salary increase +8m for 2023 effective from 1. April. NOK mill
Slide 8: EBITDA improvement of 31m from H1-22 to H1-23
EBITDA improvement of 31m from H1-22 to H1-23 14 14 • Marine has the largest EBITDA improvement due to 12 restructuring which achieved a significant improvement in 10 8 gross margin and ~50% payroll reduction 8 3 6 • HspT almost doubled revenue (from a low base) and 4 9 capitalized development cost
Slide 9: Revenue quarterly actuals and 12 month trailing
Revenue quarterly actuals and 12 mth trailing^ Quarterly actuals 12 months trailing 557 529 505 480 441 457 414 NOK mill NOK mill 359 150 148 141 291 126 120 118 116 99 104 217 94 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 21 21 21 21 22 22 22 22 23 23 21 21 21 21 22 22 22 22 23 23
Slide 10: Sales - new contracts and scope extensions
Sales - new contracts and scope extensions ^ Q2: 334 contracts for a total value of NOK 121 million (86m in Q2-22) +40% 200 191 60 Q2-22 Q2-23 55 50 150 45 NOK mill. 128 40 NOK mill. 121 35 100 93 30 59 86 25 63 20 38 50 15 22 10 18 21 15 15 12 5 7 0 0 2 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 BS EA&BPM
Slide 11: Some important wins in Q2
Some important wins in Q2 ^ Combined value NOK 44 m for the 5 contracts The Growth Got City Center Hotels Vår Energi Sykehuspartner Hallingplast Company (GCCH) • UK Award Winning • Norwegian Oil and Gas • State-owned Health • Industrial Production • Swedish Hotel Group Social Enterprise Producer and
Slide 12: Cash flow development
Cash flow development ^ • 80% of the negative cash flow from operations relates to reduction in contract liabilities, stemming from annual pre-payments of licences fees by customers. Furthermore, NOK 12m 34 overdue AR paid by client in July. • Cash flow from financing consist of NOK 1.3m 62 62 debt
Slide 13: Balance sheet development
Balance sheet development ^ Liabilities & Equity Assets 530 530 515 515 Equity Goodwill Non/current Intangibles Current Other non-current 208 Other current 205 277 Trade receivables 282 NOK mill. Cash 108 118 66 71 25 24 49 40 187 88 98 162 40 42 Y.E 2022 Q1-2023 Y.E 2022 Q2-2023 13
Slide 14: Outlook
Outlook ^ • We expect higher growth rate in 2023 vs 2022 • Robust demand for cloud services will drive growth for our cloud- and managed IT- services • Hospitality to grow significantly over next quarters – building SaaS revenue base • Growth for Marine will continue with large projects available in
Slide 15: Arribatec. we simplify complexity
Arribatec. we simplify complexity
Slide 16: Condensed consolidated statements of profit and loss
Condensed consolidated statements of profit and loss 16
Slide 17: Consolidated statements of financial position
Consolidated statements of financial position 17
Slide 18: Consolidated statements of changes in equity
Consolidated statements of changes in equity 18
Slide 19: Consolidated cash flow statement
Consolidated cash flow statement 19