Proact IT Group AB · OMXSTO:PACT
Proact IT Group AB — Q2 2019 Earnings Presentation
14 slides from Proact IT Group AB's earnings presentation, Jul 11, 2019
Slide 1: Summary Q2 2019
Summary Q2 2019 11 July, 2019 Jonas Hasselberg, CEO and President jonas.hasselberg@proact.eu Jonas Persson, CFO jonas.person@proact.eu Visit our website www.proact.eu
Slide 2: Agenda
AGENDA Proact & the market Special highlights Key figures Our customers The Proact share Summary
Slide 3: Main opportunities for Proact
Main opportunities for Proact 1 Increased market opportunity in business-driven IT spend 2 Managing and generating value out of Data is more complex 3 Trusted advisor in Hybrid Cloud and data-centric solutions
Slide 4: Key Q2 Messages
Divested Spain Key Q2 Messages Cloud Revenue +12% Cloud Services total contract value 96 MSEK Revenue Decline in Q2 . -7%
Slide 5: Income Statement Q2 2019
Income Statement Q2 2019 (MSEK) Apr-Jun 2019 Apr-Jun 2018 System Sales 523.2 575.0 Services 282.9 290.6 Other 0.4 2.0 TOTAL REVENUE SYSTEM SALES SERVICES SALES Revenue Products and services 806.4 -620.8 867.6 -658.1 GROWTH MSEK GROWTH MSEK GROWTH MSEK Gross profit 185.6 209.5 Gross margin 23.0% 24.1
Slide 6: Income Statement January - June 2019
Income Statement January - June 2019 (MSEK) System Sales Jan-Jun 2019 1,152.1 Jan-Jun 2018 1,056.3 Services 563.4 566.6 Other 0.7 3.3 TOTAL REVENUE SYSTEM SALES SERVICES SALES Revenue Products and services 1,716.2 -1,333.0 1,626.2 -1,232.2 GROWTH MSEK GROWTH MSEK GROWTH MSEK Gross profit 383.2 394.0
Slide 7: Income Statement Rolling 12 months
(MSEK) Jul-Jun 2019 Jul-Jun 2018 Income Statement Rolling 12 months System Sales 2,270.5 2,046.8 Services 1,135.6 1,118.0 Other 1.6 6.5 Revenue 3,407.7 3,171.3 Products and services -2,626.3 -2,402.4 TOTAL REVENUE SYSTEM SALES SERVICES SALES Gross profit 781.4 768.9 Gross margin 22.9% 24.2% GROWTH M
Slide 8: Revenue & EBITA in Q2 per Business Unit
Revenue & EBITA in Q2 per Business Unit Positive development in Cloud business with 12% growth to 122 MSEK 2019 2018 April - June April – June Revenue in Nordics flat with stable gross margins Revenue EBITA Net Revenue EBITA Net but somewhat lower EBITA (MSEK) margin margin Nordics 414 19.2 4.6%
Slide 9: Revenue & EBITA January-June per Business Unit
Revenue & EBITA January-June per Business Unit Revenue growth in Nordics YTD of 13%, pressure on margins due to important system deals and 2019 2018 January - June January – June investments in service delivery in Q1 Revenue EBITA Net Revenue EBITA Net Margin improvements in UK delivering flat E
Slide 10: Cash flow in Q2
Cash flow in Q2 Liquid Funds March 31, 2019 246 Positive change in working capital Cash-flow from current operations 79 Fixed assets; Proact Finance -17 MSEK Current operations 75 Repayment of Leasing Liabilities; IFRS16 Change in working capital 4 Cash-flow from investment activities -30 Di
Slide 11: Cash flow January-June 2019
Cash flow January-June 2019 Liquid Funds December 31, 2018 270 Negative change in working capital -27 (-48) MSEK Cash-flow from current operations 77 but still +56 MSEK on 12 months rolling Current operations 104 Fixed assets; Proact Finance -33 MSEK Change in working capital -27 Repayment of
Slide 12: Balance sheet
Balance sheet 2019 2018 2018 (MSEK) Jun 30 Dec 31 Jun 30 Solidity of 21% including a negative impact Total Assets 2,321 2,213 2,020 from IFRS 16 of 258 MSEK whereof Goodwill 404 393 403 Cash position of 219 MSEK whereof Intangible fixed assets 60 70 89 Net debt of 155 MSEK including a negative
Slide 13: Financial Goals
SALES GROWTH FINANCIAL TARGET OUTCOME 3 408 MSEK GOALS >10% +8% Rolling 12 months EBITA MARGIN TARGET OUTCOME* Adjusted for one-time costs 8% 5.4% NET DEBT/EBITDA TARGET OUTCOME IFRS16 impact of 258 MSEK <2 0.64 ROCE TARGET OUTCOME Impacted by IFRS 16 and one-time costs >25% 18.2% DIVIDEND TARGET OU
Slide 14: Summary
Summary Market opportunities remain positive Challenging quarter in Business Unit West Efficiency initiatives launched