Slide 1: FY2020 Presentation
FY2020 PRESENTATION
Slide 2: Summary
Summary Organisation | Page 3 Group’s Offer | Page 5 BP 2021-2024 | Page 7 Why a 2021-2024 BP? | Page 8 Key Figures | Page 10 BP 2021-2024 / Figures | Page 12 Boosters | Page 14 Group’s Offer per division | Pages 16 UK Services M&A | Pages 33 2020 Figures | Pages 37 2021 Budget | Page
Slide 3: Organisation
Organisation Sword Group - March 2021 3
Slide 4: Organisation | Management Team
Organisation | Management Team Phil Norgate CEO Dave Bruce Dieter Rogiers Nick Scully Jacques Mottard M&A Advisor </> </> MIDDLE EAST TEXAS RISK COMPLIANCE & SWITZER- UK BELUX GREECE INDIA LAND COO Kevin Moreton Craig Swinburn Michel Bonvoisin Gregory Carayannis Keith Ricketts Matt Sharpe Nasser Ham
Slide 5: Group's Offer
Group’s Offer Sword Group - March 2021 5
Slide 6: Group's Offer | Software & IT Services
Group’s Offer | Software & IT Services SERVICES SOFTWARE Creating Value through technology & improvement Adding Value through innovative software solutions Application Data & Content AI & Development Analytics Services Automation VENUE GRC Infrastructure & Enterprise Communication Managed Modern Ser
Slide 7: BP 2021-2024
BP 2021-2024 Sword Group - March 2021 7
Slide 8: Why a 2021-2024 BP?
Why a 2021-2024 BP? Sword Group - March 2021 8
Slide 9: Why a 2021-2024 BP?
Why a 2021-2024 BP? The Group’s situation makes it possible to take this risk The boosters are a form of security in relation to the commitments made Identical commitment from each person vis-à-vis Sword, our clients and the market Sword Group - March 2021 9
Slide 10: Key Figures
Key Figures Sword Group - March 2021 10
Slide 11: Key Figures
Key Figures Organic growth between 11% and 13% for 4 years These figures do not include boosters and acquisitions The EBITDA margin target is 13% throughout the period Sword Group - March 2021 11
Slide 12: BP 2021-2024 | Figures
BP 2021-2024 | Figures Sword Group - March 2021 12
Slide 13: 2021-2024 BP | Figures
2021-2024 BP | Figures Revenue (€m) 2021 2022 2023 2024 SOFTWARE GRC 18.6 20.8 23.3 26.1 BELUX 56.1 62.8 72.4 81.8 GREECE SWITZERLAND 35.4 39.6 44.4 49.7 CANADA SERVICES UK 69.5 79.0 85.8 93.2 US (Texas) OTHERS (i) 11.7 12.9 14.2 16.6 TOTAL 191.3 215.1 240.1 267.4 (i) Middle-East / India / NYC Sword
Slide 14: Boosters
Boosters Sword Group - March 2021 14
Slide 15: Boosters
Boosters c.€13m invested in R&D in 2021 and 2022 to complete the GRC offer Creation of a new “product” offer with Sword Venue Development of “services” activities in North America Restart of TIPIK with its digital offer targeting communication activities Acquisitions Sword Group - March 20
Slide 16: Group's Offer by division
Group’s Offer by division Sword Group - March 2021 16
Slide 17: Governance Risk & Compliance
HIGHLIGHTS 4 Offices: Kuala Lumpur, London, Melbourne, Washington #1 in Project Risk Management Worldwide 2021 TRENDS GOVERNANCE €18.0m+ Revenue RISK & COMPLIANCE +13.0% Organic Growth at constant perimeter and constant exchange rates 25.0% EBITDA Margin
Slide 18: Sword GRC Software
Sword GRC Software </> Software Highlights: 2020 EBITDA performance A resilient business Still winning new customer every 12 days maintaining profitability New version of ARM released & strongly placed for Strength of Defence Sector future growth Customer retention (95%+) ANZ and US Glob
Slide 19: Sword GRC | Growth Opportunities
Sword GRC | Growth Opportunities </> Software Stable, resilient business Current Market leading product in capital projects (ARM) Deliver significant profitable status Dominant position A&D and Transportation revenue growth across Europe, Global multinational blue chip clients US & ANZ whils
Slide 20: UK Highlights
HIGHLIGHTS 7 Offices: Aberdeen, Edinburgh, Glasgow, Houston, London, Perth, Staines #1 in the Oil & Gas Sector in Scotland UK 2021 TRENDS €69.0m+ Revenue +13.0%+ Organic Growth at constant perimeter and constant exchange rates 14.0% EBITDA Margin
Slide 21: Sword UK Services
Sword UK Services Services Revenue by Sector £42m Platform We’ve created a £17m strong platform 2020 £6.5m £7m for growth 2017 £4m 2020 £2m 2017 2020 UK 2017 Energy Public Finance/Other #1 in the Oil & Gas Revenue by Location Sector in Scotland 70% 60% Diversification Strong organic growth 34% acros
Slide 22: Sword UK Services | Growth Opportunities
Sword UK Services | Growth Opportunities Services A strong business Team capable of delivering double digit growth Deliver revenues across all Current sectors whilst reducing overall status Blue chip clients Leading company on the Oil & Gas market dependency on energy Greater sector focus
Slide 23: BELUX-GREECE
HIGHLIGHTS 4 Offices: Athens, Barcelona, Brussels, Luxembourg Top player in application services and communication services at the European Institutions BELUX-GREECE 2021 TRENDS €56.0m+ Revenue +12.0%+ Organic Growth at constant perimeter and constant exchange rates 9.0% EBITDA Margin
Slide 24: Sword BeLux-Greece Services
Sword BeLux-Greece Services Services Highlights New signed contracts in 2020 > €120m Important backlog of > €230m New offers with overall value of > €350m Acquisition of Lemonade Software Development Sword Greece: growth engine BeLux-Greece Key player in application services and Revenue in
Slide 25: Sword BeLux-Greece | Growth Opportunities
Sword BeLux-Greece | Growth Opportunities Services Top 7 player at the European Institiutions Very high winning rate of > 75 % Current Strong nearshore delivery capacity status Yearly Organic growth of > 15 % since 2015 Focus on Strong Strong recurrent revenues of > 90 % and continuous I
Slide 26: SWITZERLAND
HIGHLIGHTS 5 Offices: Freiburg, Geneva, Lausanne, Montreal, Nyon Key player in Sport, Luxury and at the United Nations Top 5 in IT outsourcing companies in CH landscape SWITZERLAND 2021 TRENDS €35.0m+ Revenue +18.0%+ Organic Growth at constant perimeter and constant exchange rates 10.0% EBITDA Margi
Slide 27: Sword Switzerland Services
Sword Switzerland Services Services Fundamentals Highlights Within global context, Solid organic growth +9% Swiss economy remains robust, Launch of Sword Venue product with strong fundamentals and New “Long Term Agreements” signed pragmatic support from Federal State. within Public and Insuran
Slide 28: Sword Switzerland -1- | Growth Opportunities
Sword Switzerland -1- | Growth Opportunities Services Top 5 global IT outsourcing partner in French-speaking CH Current Established Long Term Agreements for 2020-2024 status Client portfolio incl. International Organisations and Institutions 2025: Continuous growth leading Strong recurring r
Slide 29: Sword Switzerland -2- | Growth Opportunities
Sword Switzerland -2- | Growth Opportunities Services Swiss reference in Microsoft Cloud technologies deployment Current A highly spread turnover status 24/7 IT operations department Strong annual organic growth: c.20% mitigating risk Recurring revenue up to 80% thanks MSP contracts Improvem
Slide 30: OTHERS
HIGHLIGHTS 4 Offices: Beirut, Chennai, Dubai, New-York Near/Off-Shore services Reach 5 Continents OTHERS 2021 TRENDS €11.0m+ Revenue 2.0% Organic Growth at constant perimeter and constant exchange rates 16.0%+ EBITDA Margin
Slide 31: Sword Middle East & India Services
Sword Middle East & India Services Services 2020 Highlights: A Robust business Strong Profitability maintaining Growth & High Business resilience to the Pandemic (Customer retention = 100%) Profitability New Customers & Long term projects New Version of the Mobile & Internet Banking App Glob
Slide 32: Sword Middle East & India | Growth Opportunities
Sword Middle East & India | Growth Opportunities Services Customers over 5 continents Current Multinational blue chip clients status Focused on growth & high profitability (20%+ EBITDA margin) 2021+: Continue to develop multi- Strong recurring revenue (70%) national prestigious Clients while
Slide 33: UK Services M&A
UK Services M&A Sword Group - March 2021 33
Slide 34: UK Services Journey | Acquisition Versus Organic Growth
UK Services Journey | Acquisition Versus Organic Growth Sword UK Services Growth Analysis £k Organic Revenue Growth EBIT Acquisition Total Growth FY2015 11,000 - 300 | 3% - - - FY2016 14,813 35% 304 | 2% 18% 17% 35% FY2017 23,083 56% 1,080 | 5% 21% 21% 56% FY2018 37,828 64% 3,216 | 9% 52% 52% 64% FY
Slide 35: UK Services Journey | Analysis of Key Acquisitions
UK Services Journey | Analysis of Key Acquisitions Sword UK Services Analysis of Key Acquisitions LMA £k Date LMA Mint Tulip Venture Deep domain knowledge Aug. 16 -100 Market Consolidation Enterprise Accretive Sept. 17 1,600 Value Oct. 17 2,678 EBITDA multiple - 4.0 5.0 Mint Tulip EBITDA FY201
Slide 36: UK Services Journey | Next Steps
UK Services Journey | Next Steps Business Plan 2021 to 2024 Plus Target £k 2021 2022 2023 2024 2025 Revenue as per Business Plan 69.5 79.0 85.8 93.2 - Actual 2025 Target 120.0 Growth 13% 14% 9% 9% 29% UK Services Business Plan Our Business Plan is eminently achievable The growth for FY2021 and F
Slide 37: 2020 Figures
2020 Figures Sword Group - March 2021 37
Slide 38: Figures | Consolidated Performance -1-
Figures | Consolidated Performance -1- 13.9% EBITDA Margin €212.5m 2020 Consolidated Revenue Sword Group - March 2021 38
Slide 39: Figures | Consolidated Performance -2-
Figures | Consolidated Performance -2- €m (i) 2020 REVENUE 2020 EBITDA Perimeter without France 169.2 23.7 | 14.0% Sold Perimeter 43.3 5.8 | 13.4% TOTAL 212.5 29.5 | 13.9% (i) Adjusted figures Sword Group - March 2021 39
Slide 40: Figures | 2020 Synthesis
Figures | 2020 Synthesis €m (*) FY2020 FY2019 Organic Growth France excluded EBITDA EBITDA Revenue EBITDA Revenue EBITDA % % Software 16.4 25.3% 4.1 17.5 24.4% 4.3 -6.3% (i) Governance Risk & Compliance BeLux 50.6 9.7% 4.9 45.3 9.4% 4.3 +11.7% Switzerland 29.8 10.2% 3.0 28.0 12.3% 3.4 +6.4% UK 61.0
Slide 41: Figures | Breakdown
Figures | Breakdown Breakdown FY/Q4/Q3/H1 in 2020 for the pro forma perimeter (excluding France): €m FY Q4 Q3 H1 Revenue 169.2 45.3 41.8 82.1 EBITDA 23.7 7.6 6.2 9.9 EBITDA Margin 14.0% 16.8% 14.7% 12.1% Organic Growth +9.2% +13.0% +12.8% +6.4% Sword Group - March 2021 41
Slide 42: Figures | Net Cash Position
Figures | Net Cash Position 31/12/2020 | former standard Net Cash Position: €105.8m 31/12/2020 | IFRS16 & earn out excluded Net Cash Position: €98.0m Sword Group - March 2021 42
Slide 43: Figures | Backlog
Figures | Backlog Number of Months Compared to Total 17.5 €230m France 7.6 €60m Total post closing 26.4 €170m Sword Group - March 2021 43
Slide 44: Top 10 | Clients - France excluded
Top 10 | Clients - France excluded Company Location Admiral UK BP UK | US 3 1 2 DG for Informatics BeLux DG Taxation and Customs BeLux The first 10 The first client Union DG Justice and clients represent represents 7.5% BeLux Consumers 31.4% of the 2020 of the 2020 Consolidated Revenue Consolidated
Slide 45: FY2020 | Staff
FY2020 | Staff 1,902 (i) 1,488 303 103 8 Total IT Services Offshore Software Holding (i) 1,838 full time equivalent (FTE) staff (NDBS included) 702 freelancers (438 FTE) Sword Group - March 2021 45
Slide 46: 2020 Dividends
2020 Dividends | €2.4 +24% +21% 0% +22% -1% 2016 Total Share 2017 Total Share 2018 Total Share 2019 Total Share 2020 Total Share Return (TSR) Return (TSR) Return (TSR) Return (TSR) Return (TSR) 01/01: €24.30 - 31/12: 01/01: €29.04 - 31/12: 01/01: €33.84 - 31/12: 01/01: €29.00 - 31/12: 01/01: €34.10
Slide 47: 2021 Budget
2021 Budget Sword Group - March 2021 47
Slide 48: 2021 | Simplified Budget
2021 | Simplified Budget ORGANIC €m REVENUE EBITDA MARGIN EBITDA GROWTH SOFTWARE (i) GRC 18.6 25.0% 4.7 +13.4% SOFTWARE | TOTAL 18.6 25.0% 4.7 +13.4% IT SERVICES BELUX - GREECE 56.1 9.0% 5.0 +10.9% SWITZERLAND - CANADA 35.4 10.2% 3.6 +18.8% UK - US 69.5 14.3% 9.9 +13.9% MIDDLE EAST - INDIA 11.7 16.7
Slide 49: 2020 General Accounting
2020 General Accounting Sword Group - March 2021 49
Slide 50: 2020 | PnL with no impact of share deals
2020 | PnL with no impact of share deals €m 2019 2020 Revenue 213.2 212.5 Current EBITDA 28.6 | 13.4% 29.5 | 13.9% Current EBIT 20.7 | 9.7% 22.0 | 10.4% Non Current Costs 1.4 (48.1) Financial Costs 0.6 1.7 Corporate Tax 4.9 3.7 Net Profit after corporate tax 13.8 64.7 Sword Group - February 21 50
Slide 51: Balance Sheet | Non-Current Assets
Balance Sheet | Non-Current Assets 31 December 31 December €k 2019 2020 ASSETS NON-CURRENT ASSETS Goodwill 73,354 52,053 Decrease in goodwill due to the Other intangible assets 12,769 10,759 Property, plant & equipment 5,089 1,748 sale of France Assets related to the right of use 14,424 6,154 Inve
Slide 52: Balance Sheet | Current Assets
Balance Sheet | Current Assets 31 December 31 December €k 2019 2020 ASSETS CURRENT ASSETS Trade and other receivables 37,130 22,874 Work in progress 28,774 16,905 Decrease in trade and other Current tax assets 946 515 receivables & work in progress: due to Other assets 5,571 5,413 Cash and cash eq
Slide 53: Balance Sheet | Financial Debt
Balance Sheet | Financial Debt 31 December 31 December €k 2019 2020 EQUITY AND LIABILITIES EQUITY Share capital 9,545 9,545 Share premiums 70,676 70,676 Reserves 4,832 2,547 Retained earnings 61,904 51,382 TOTAL EQUITY – GROUP SHARE 146,957 134,150 Non-controlling interests (minority interests) 3,00
Slide 54: Cash Flow | Extract
Cash Flow | Extract €m 31 DECEMBER 2019 31 DECEMBER 2020 NET CASH FLOWS FROM OPERATING ACTIVITIES 21.8 32.8 NET CASH FLOWS (ALLOCATED TO) / FROM INVESTMENT ACTIVITIES (11.5) 53.1 NET CASH FLOWS ALLOCATED TO FINANCING ACTIVITIES (52.2) (50.3) Net change in cash and cash equivalents (42.0) 35.6 CASH A
Slide 55: Agenda
AGENDA Sword Group - February 21 55
Slide 56: Financial Calendar
Financial Calendar 31 PUBLICATIONS MEETINGS 26/04/2021 25/01/2022 28/04/2021 2021 | Q1 Results 2021 | Q4 Results Annual Shareholders Meeting | 2020 28/07/2021 09/03/2022 09/09/2021 SFAF Meeting | H12021 Results 2021 | Q2 Results 2021 | FY Results 10/03/2022 25/10/2021 SFAF Meeting |
Slide 57: 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