Proact It Group Ab · OMXSTO:PACT
Proact It Group Ab — Q4 2022 Earnings Presentation
29 slides from Proact It Group Ab's earnings presentation, Feb 9, 2023
Slide 1: Summary Q4 2022
Summary Q4 2022 February 9, 2023 Jonas Hasselberg CEO and President jonas.hasselberg@proact.eu Linda Höljö CFO www.proact.eu linda.holjo@proact.eu
Slide 2: Agenda
Agenda • Proact introduction • Proact’s market • Key developments • Financial results • Summary Jonas Hasselberg Linda Höljö CEO and President CFO
Slide 3: Who is Proact
Who is Proact FI NO 1994 Almost 3 decades of helping customers drive SE business value and growth – through IT EE LV DK LT 4 000 Medium and large enterprise UK NL customers across Europe BE DE CZ 4 750 Million SEK turnover with stable finances. Listed on Nasdaq Stockholm since 1999 1 200 Employees w
Slide 4: Businesses across all industries are in a state of transformation
Businesses across all industries are in "state of transformation”. Data is the key to this transformation. The four defining trends in the market - Business: Focus on digital transformation and business innovation through IT - Technology: The use of hybrid cloud to increase speed, flexibility and av
Slide 5: Value to customers via our propositions
Value to customers via our propositions
Slide 6: Our hybrid-cloud model enables delivery to you
Private Public Managed Our hybrid-cloud model enables delivery to you anywhere On-premises infrastructure
Slide 7: Customer, hyper-scaler and Proact data centres
Design Supply Implement Support Manage private hosted public Customer data centre Hyper-scaler data centre Proact data centres
Slide 8: Customer, hyper-scaler and Proact data centres
Customer data centre Hyper-scaler data centre Proact data centres
Slide 9: Customer, hyper-scaler and Proact data centres
Customer data centre Hyper-scaler data centre Proact data centres
Slide 10: Customer, hyper-scaler and Proact data centres
PHC public Customer data centre Hyper-scaler data centre Proact data centres
Slide 11: Hybrid cloud
Consistently performing Less IT for all end physical users hardware Reliable access to all Flexible & application agile s scalability Enhanced security Utilising the advantages of Hybrid cloud PHC public Customer data centre Hyper-scaler data centre Proact data centres
Slide 12: Customer satisfaction is strong
Customer satisfaction is strong Net Promotor Score
Slide 13: New Headoffice in Frösundavik, Solna
New Headoffice in Frösundavik, Solna
Slide 14: Quarter 4 in brief
Quarter 4 in brief + 53% Revenue growth, 40% organic – TCV decline to 142 (177) MSEK + 19% ARR growth to 1 552 MSEK – Market uncertainties continue + EBITA margin of 7.1% (6.0) – Inflation impacting services margins + EBITA growth of 80% to 102.2 MSEK
Slide 15: Financial development
Financial development
Slide 16: Income Statement – Highlights Q4 2022
Income Statement – Highlights Q4 2022 TOTAL REVENUE SYSTEM SALES SERVICES SALES GROWTH MSEK GROWTH MSEK GROWTH MSEK 53% 1,440 77% 913 23% 522 Adj. EBITA PROFIT BEFORE TAX GROWTH MSEK Margin GROWTH MSEK Margin 80% 102.2 7.1% 130% 86.0 6.0%
Slide 17: Revenue development
Revenue development Revenues SEK m SEK m Key developments in the fourth quarter 1,500 5,000 • Revenue growth 53% • 40% organically 1,125 3,750 • High demand and normalized delivery times 750 2,500 • Acquisitions contributing 7% and currency effects 6% 375 1,250 • New cloud contracts of SEK 142 milli
Slide 18: Profitability development
Profitability development Adjusted EBITA Key developments in the fourth quarter • Adjusted EBITA of SEK 102.2 million (56.9) • Increase by 80% • Margin of 7.1% (6.0) • Gross margin essentially unchanged • Increased margins for systems • Decreased margins for services, due to cost inflation and incre
Slide 19: BU Nordics & Baltics
BU Nordics & Baltics Revenues SEK m SEK m Key developments in the fourth quarter 800 3,200 • Revenue growth 52% (49% organically) • Systems 68% (organically 64%) 600 2,400 • Services 18% (organically 14%), with good growth in support 400 1,600 services and consulting services • Strong systems market
Slide 20: BU UK
BU UK Revenues SEK m SEK m Key developments in the fourth quarter 240 800 • Revenue increased with 38% (31% organically) • Systems increased 84% (organically 75%) with normalized 180 600 delivery times 120 400 • Services increased 9% (organically 3%) 60 200 • Good growth in cloud services and consul
Slide 21: BU West
BU West Revenues SEK m SEK m Key developments in the fourth quarter 250 1,000 • Revenue growth 44% (35% organically) 200 750 • Systems increasing 131% (117% organically) • Services increasing 16% (7% organically) 150 500 • A number of large deals were delivered during the quarter 100 after several q
Slide 22: BU Central
BU Central Revenues SEK m SEK m Key developments in the fourth quarter 240 800 • Revenue growth by 80% (organic 16%) • Systems 93% (organically 27%) 180 600 • Services 71% (organically 7%) 120 400 • Acquisitions of ahd (Nov 2021) and sepago (Jul 2022) contributing to revenues 60 200 • Strong organic
Slide 23: Cash flow in Q4
Cash flow in Q4 • Positive cash-flow from current operations before change in working capital • Positive change in working capital is mainly related to Liquid Funds September 30, 2022 285 increased accounts payables and operating payables, Cash-flow from current operations 353 partly offset by incre
Slide 24: Cash flow January – December 2022
Cash flow January – December 2022 • Positive cash-flow from current operations before change in working capital • Small changes in working capital during the year with Liquid Funds December 31, 2021 464 increasing payable offsetting increasing receivables Cash-flow from current operations 443 • Inve
Slide 25: Balance sheet
Balance sheet 2022 2021 • Equity ratio of 22% (MSEK) Dec 31 Dec 31 • Cash position of SEK 506 million Total Assets 4,242 3,395 whereof Goodwill 984 821 • Net debt, including leasing liabilities of SEK whereof Intangible fixed assets 231 225 291 million, decreased since December whereof Accounts rece
Slide 26: Full year overview
Full year overview Revenues – 10-year development • Full year revenue increasing by 35% (23% organically) • Systems revenues increasing by 43% (35% organically) • Good demand with catch up after covid 19 • Normalization of delivery times • Services revenues increasing by 24% (6% organically) • Recur
Slide 27: Financial goals
SALES GROWTH FINANCIAL TARGET OUTCOME SEK 4 757 million in sales for the year GOALS >10% 34.9% Rolling 12 months EBITA MARGIN TARGET OUTCOME* Increase from 5.8% FY2021 8% 6.6% NET DEBT/EBITDA TARGET OUTCOME* <2 0.48 Significantly better than target ROCE TARGET OUTCOME Increase from 13.4% FY2021; upd
Slide 28: Summary
Summary • Strong total and organic revenue and profit growth • Strong growth in Annualized Recurring Revenue (ARR) • 1 552 MSEK in Q4 vs 1 477 in Q3 • Proposed dividend of 1.85 (1.50) SEK per share
Slide 29: Thank you
Thank you www.proact.eu