Slide 1: FY2019 Presentation
UPGRADE YOUR BUSINESS PRESENTATION
Slide 2: Organisation
Organisation Sword Group - March 20 2
Slide 3: Organisation: Managing Directors
Organisation MANAGING DIRECTORS Dave Bruce Philippe Le Calvé Jacques Mottard Dieter Rogiers Nick Scully </> </> </> MIDDLE EAST UK TEXAS FRANCE IP SWITZERLAND & BELUX RISK GREECE COMPLIANCE INDIA Sword Group - March 20 3
Slide 4: Organisation: CFOs and M&A Advisor
Organisation CFOs M&A ADVISOR Phil Norgate Frédéric Goosse Group CFO Laurence Blanc Sylvain Dal Vecchio Leïla Julien Services + Consolidated BeLux & Greece France Becky Marsland Phil Norgate Patrick Zbinden Software aa. UK Services Switzerland & ME Sword Group - March 20 4
Slide 5: Sword today
Sword today Sword Group - March 20 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 CRM ANALYTICS CS AI GIS IP SEARCH SECURITY GRC INVESTIGATION DIGITAL DATA PERFORMANCE OPTIMISATION Skills & expertise, to accelerate Making Data W
Slide 7: Sword's Flagship Projects & Growth Opportunities
Sword’s Flagship Projects & Growth Opportunities Sword Group - March 20 7
Slide 8: Software
</> Software Sword Group - March 20 8
Slide 9: Some Highlights of the Group | Governance Risk & Compliance
Some Highlights of the Group | Governance Risk & Compliance </ > Software 1 GRC #1 in the Defence Sector Sword Group - March 20 9
Slide 10: Flagship Project | Governance Risk & Compliance
Flagship Project | Governance Risk & Compliance </ > Software Challenger Tank 1 Sword Group - March 20 10
Slide 11: Growth Opportunities | Governance Risk & Compliance
Growth Opportunities | Governance Risk & Compliance </ > Software GRC Market predicted to grow at 13.4%* 1 Construction Critical importance Project Risk Transportation Research & ARM 2020 Energy Development Functional depth & User experience Specific focus & Complimentary Financial Mic
Slide 12: Some Highlights of the Group | Intellectual Property
Some Highlights of the Group | Intellectual Property </ > Software 2 IP #1 on all National Offices of Trademarks and Patents Sword Group - March 20 12
Slide 13: Flagship Project | Intellectual Property
Flagship Project | Intellectual Property </ > Software New Zealand - MBIE | IPONZ & RESOLVE 2 MBIE Ministry of Business Innovation & Employment IPONZ RESOLVE Intellectual Property Office of New Zealand Government Centre for Dispute Resolution SwordAcsepto Trademarks & Designs, Search & Examination S
Slide 14: Growth Opportunities | Intellectual Property
Growth Opportunities | Intellectual Property </ > Software 2 €2 to €3 m+ annual maintenance/support contracts Keep IT Maintain our existing Acsepto clients Keep our long term special relationship with our NZ Key customer Release new modules / features to our Ptolemy to be sold as add-on Grow
Slide 15: Services
UK Services France Switzerland Services BeLux Greece Middle East India Sword Group - March 20 15
Slide 16: Some Highlights of the Group | UK
Some Highlights of the Group | UK Services 1 UK #1 in the Oil & Gas Sector in Scotland Sword Group - March 20 16
Slide 17: Flagship Project | UK
Flagship Project | UK Services Drilling for Data Finding oil in a sea of data 1 Digitally optimising key business process Turning non-viable into viable Cutting cost by up to 70% Shell International E&P BP Houston Quality Improvement Managed Service First Data Science Project in US “Using Da
Slide 18: Growth Opportunities | UK
Growth Opportunities | UK Services 1 Over £20M of strategic contracts renewed in the first two Keep IT months of 2020 Strategic account management process Provision of long term non-discretionary services Our energy expertise in Aberdeen (300+) Ressources Experienced Account managers 40
Slide 19: Some Highlights of the Group | BeLux - Greece
Some Highlights of the Group | BeLux - Greece Services 2 BeLux / Greece Top player in application services and communication services at the European Institutions Sword Group - March 20 19
Slide 20: Flagship Projects | BeLux - Greece
Flagship Projects | BeLux - Greece Services 2 20+ yr Strategic Partnership DG Taxud European Commission DG Justice - Digital and online campaigns EC - DG Taxation and Customs Union’s mission is to Geo-localized social media campaign (Facebook, Instagram, develop and manage the Customs Union and to d
Slide 21: Growth Opportunities | BeLux - Greece
Growth Opportunities | BeLux - Greece Services 2 Expertise with European procedures Market leader @ European Institutions Expertise #1 in setting up winning Consortiums Winning Bid-teams @ the EI > 25 Major Multi-million and multi-annual European Framework Contracts Business > 150 Million Eu
Slide 22: Some Highlights of the Group | France
Some Highlights of the Group | France Services 3 France #1 GIS & MaaS Integrator Sword Group - March 20 22
Slide 23: Flagship Project | France
Flagship Project | France Services Aéroport de Paris - Management of infrastructure networks 3 for 12 airports: Orly, Roissy, Le Bourget Visualize Invoicing by Present Organize the tasks topology and uses Locate Cartographic, collaborative network management platform INFRA NETWORKS Sword Group - Mar
Slide 24: Growth Opportunities | France
Growth Opportunities | France Services 3 IT specialist Keep IT Fixed Price Projects commitment Renewal with 95% of our Clients More than 580 IT Engineer Ressources Located in 3 sites: Lyon (430), Paris (100) Rennes (50) ISO207001 certified - ISO 9001 conformed Focus on our Initiatives
Slide 25: Some Highlights of the Group | Switzerland
Some Highlights of the Group | Switzerland Services 4 Switzerland Key player in sport, Luxury and at the United Nations Sword Group - March 20 25
Slide 26: Flagship Project | Switzerland
Flagship Project | Switzerland Services World Intellectual Property Office (WIPO a UN agency) 4 The International Trademark System The Madrid System is a convenient and cost-effective solution for registering and managing trademarks worldwide. Sword operates a modern IT platform, designed to support
Slide 27: Growth Opportunities | Switzerland
Growth Opportunities | Switzerland Services 4 Leading program & project management along with major digital transformation initiatives within luxury & FMCG industries FMCG & Key driver: E-Commerce, Digital expertise Luxury goods Acting as partner, provider, as well as sponsor, Sword is a key actor w
Slide 28: Some Highlights of the Group | Middle East & India
Some Highlights of the Group | Middle East & India Services 5 Sword UAE Middle East & Sword India Lebanon #1 in Governmental & Banking Mobile Application Sword India Sword Group - March 20 28
Slide 29: Flagship Projects | Middle East & India
Flagship Projects | Middle East & India Services Lebanon-Beirut: 5 Customer: CMA CGM-Marseille: 110,000 Employees, 31 Billion$, 160 countries Project: Maintenance Agreement for the Group Financial ERP Oracle E-Business Suite, 8 persons Onsite, 15 persons at Nearshore, contract till 2022 + renewa
Slide 30: Growth Opportunities | Middle East & India
Growth Opportunities | Middle East & India Services 5 Increasing of Nearshoring demand from the Swiss Market Lebanon New Service Offerings : Automated Testing, Cloud Beirut Development & Oracle Fusion Government entities such as RTA to deploy AI solutions BEAM software product UAE Prime Mi
Slide 31: 2019 Figures
2019 Figures Sword Group - March 20 31
Slide 32: At a Glance
At a Glance IDENTITY FY2019 Successful, Growing, Financially Secure and Listed Consolidated Performance Software 11% International 1000+ customers €213.2m Revenue Group founded in over 50 2 offshore €28.6m (13.4%) IT Services in 2000 countries support centres 89% EBITDA FY2019 FY2019 Consolidated Re
Slide 33: FY2019 Key Figures | IFRS Standards
FY2019 Key Figures | IFRS 16 Standards Organic growth at constant exchange rate +20.7% Revenue €213.2 m FY2019 EBITDA margin 13.4% Sword Group - March 20 33
Slide 34: 2019 Key Figures | IFRS 16 Standards
2019 Key Figures | IFRS 16 Standards €m Revenue EBITDA (*) Organic Growth (*) Q1 50.5 13.5% +19.1% Q2 53.6 13.3% +23.7% Q3 52.6 13.1% +21.9% Q4 56.5 13.8% +18.1% FY 213.2 13.4% +20.7% (*) Percentages and amounts are calculated from figures in €K. Sword Group - March 20 34
Slide 35: FY2019 | Consolidated Breakdown
FY2019 | Consolidated Breakdown €m FY2019 Revenue EBITDA Margin (*) Organic Growth (*) Governance Risk & Compliance 17.5 24.4% +31.5% Others 6.7 29.2% -1.7% SOFTWARE 24.2 25.8% +20.3% France 47.9 12.7% +15.7% BeLux 45.3 9.4% +24.2% Switzerland 28.0 12.3% +18.4% UK 52.1 12.2% +21.0% Others 15.7 14.3%
Slide 36: FY2019 | Net Cash Position
FY2019 | Net Cash Position Net cash position €53.7m (i) €70.8m (ii) (i) IFRS 16 (ii) IFRS 16 impacts excluded 31/12/2019 Sword Group - March 20 36
Slide 37: Software R&D
SOFTWARE R&D R&D Products: 18.4% of the 2019 Software Revenue Sword Group - March 20 37
Slide 38: Backlog
Backlog [31/12/2019] Backlog: €487.0m (24.4 months) [31/12/2018] Backlog: €400.6m (24.0 months) Sword Group - March 20 38
Slide 39: FY2019 Currency | Breakdown
FY2019 Currency | Breakdown Currency % EUR 42.8% GBP 29.7% CHF 13.9% USD 5.3% Others 8.3% Sword Group - March 20 39
Slide 40: Top 10 | Clients
Top 10 | Clients Company Location Admiral UK BP UK 3 1 2 DIGIT BeLux DG Taxation and Customs The first 10 The first client BeLux Union DG Justice and clients represent represents 3.8% BeLux of the 2019 Consumers 26.0% of the 2019 Consolidated Revenue Consolidated Revenue European Parliament BeLux Mi
Slide 41: FY2019 | Staff
FY2019 | Staff 2,337 (i) 1,831 299 178 29 Total IT Services Offshore Software Holding (i) 2,028 full time equivalent (FTE) staff (NDBS included) 804 freelancers (502 FTE) Sword Group - March 20 41
Slide 42: 2019 Dividends | €1.2 + €0.6
2019 Dividends | €1.2 + €0.6 +24% +21% 0% +22% 2016 Total Share Return (TSR) 2017 Total Share Return (TSR) 2018 Total Share Return (TSR) 2019 Total Share Return (TSR) 01/01: €24.30 - 31/12: €29.04 01/01: €29.04 - 31/12: €33.84 01/01: €33.84 - 31/12: €29.00 01/01: €29.00 - 31/12: €34.10 Dividend paid
Slide 43: Balance Sheet
Balance Sheet Sword Group - March 20 43
Slide 44: Balance Sheet | Goodwill Analysis
Balance Sheet | Goodwill Analysis 31 December 31 December 2018 2018 31 December (in thousands of €) Restated Published 2019 ASSETS NON-CURRENT ASSETS Increase in goodwill of €9.1 m (75.3 - 66.2) due to the following changes: Goodwill 66,200 66,200 75,340 Other Intangible Assets 6,812 6,812 10,601
Slide 45: Balance Sheet | Non-Current Assets
Balance Sheet | Non-Current Assets 31 December 31 December 2018 2018 31 December (in thousands of €) Restated Published 2019 ASSETS NON-CURRENT ASSETS Increase in capitalized R&D: +€2.7 m Goodwill 66,200 66,200 75,340 Other Intangible Assets 6,812 6,812 10,601 Property, plant & equipment 3,720 3,7
Slide 46: Balance Sheet | Current Assets
Balance Sheet | Current Assets 31 December 31 December 2018 2018 31 December (in thousands of €) Restated Published 2019 ASSETS NON-CURRENT ASSETS Increase of €1.4m in tangible fixed assets, Goodwill 66,200 66,200 75,340 mainly due to the fixtures and fittings in the Other Intangible Assets 6,812
Slide 47: Balance Sheet | Right of Use Assets
Balance Sheet | Right of Use Assets 31 December 31 December 2018 2018 31 December (in thousands of €) Restated Published 2019 ASSETS NON-CURRENT ASSETS 17.1 - 2.7 = €14.4 m Goodwill 66,200 66,200 75,340 Other Intangible Assets 6,812 6,812 10,601 Property, plant & equipment 3,720 3,720 5,089 These
Slide 48: Balance Sheet | Lease Obligations
Balance Sheet | Lease Obligations 31 31 31 December December December 2018 2018 2019 (In thousands of €) Restated Published EQUITY AND LIABILITIES EQUITY Share capital 9,545 9,545 9,545 Share premiums Reserves 70,676 1,563 70,676 1,563 70,676 4,831 Non-current lease obligations: €13.0 m Retained e
Slide 49: PnL & Cash Flow Statement
PnL & Cash Flow Statement Sword Group - March 20 49
Slide 50: Consolidated Income | Extract
Consolidated Income | Extract (in €’000) 31 DECEMBER 2018 31 DECEMBER 2019 REVENUE 171,412 213,182 EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTISATION, 20,145 28,624 EXCLUDING NON-RECURRING ELEMENTS (EBITDA) EBITDA in % 11.8% 13.4% EARNINGS BEFORE INTEREST AND EXCLUDING NON-RECURRING ELEM
Slide 51: Cash Flow | Extract
Cash Flow | Extract (in €’000) 31 DECEMBER 2018 31 DECEMBER 2019 NET CASH FLOWS FROM OPERATING ACTIVITIES 14,171 21,768 NET CASH FLOWS (ALLOCATED TO) / FROM INVESTMENT ACTIVITIES 119,088 (11,494) NET CASH FLOWS ALLOCATED TO FINANCING ACTIVITIES (59,088) (52,230) Net change in cash and cash equivalen
Slide 52: 2020 Figures
2020 Figures Sword Group - March 20 52
Slide 53: 2020 | Figures
2020 | Figures 2020 budgeted 2020 budgeted EBITDA margin organic growth 13% 12% Sword Group - March 20 53
Slide 54: 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
Slide 55: Appendices
Appendices Sword Group - March 20 55
Slide 56: Competition | IT Services
Competition | IT Services CRM NLP CS ML GIS SEARCH PORTAL SPECIALISTS AEROW 1SPATIAL SUBSTANCIAL EXAKIS AVANADE JOUVE AMEXIO ARX IT THE START-UPS & IT GPARTNER KEYRUS LOGILAB GDOC ESRI PS SERVICES JOUVE MASAO SMILE SMILE GRAPH LAND COMPANIES SMILE SOLAN MAGELLIUM GENERALISTS ACCENTURE, ARHS, ATOS, B
Slide 57: Competition | Software
Competition | Software GRC IP SPECIALISTS ACUMEN RISK EUROPEAN DYNAMICS BWISE JOUVE THE RESOLVER Local IT Companies RISK DECISIONS COMPUMARK XACTIUM (TRADEMARK VISION) GENERALISTS CURA, DNV EASY RISK, IBM OPENPAGES, METRICSTREAM, PROTIVITI, THE RSA ARCHER, SAP, SCHLEUPEN AG, WOLTERS KLUWER Sword Gro