Slide 1: Investor Presentation 2020 9M Results
INVESTOR PRESENTATION 2020 9M RESULTS 4iG Nyrt. 27th November 2020
Slide 2: 2020 9M Key Highlights
2020 9M KEY HIGHLIGHTS • 4iG now is the #2 IT system integrator in Hungary following its change of management • Up from #6 in 2018 • 2020 9M was 4iG’s strongest ever first three quarters and we continued to show strong growth both on revenue and EBITDA levels • 33,5 bn HUF of revenue (a 34% increase
Slide 3: 2020 9M Major Post Balance Events
2020 9M MAJOR POST BALANCE EVENTS • On the Extraordinary General Meeting, held on the 25th November 2020 the following organizational changes have been concluded: o Zoltán Simon and Béla Zibriczki, members of the Board of Directors resigned from their positions with effect from the date of the Extra
Slide 4: A Comprehensive Business Transformation
A COMPREHENSIVE BUSINESS TRANSFORMATION NEW • Gellért Jászai first became Chairman in July 2018 then CEO in March 2019 and finally the majority owner of 4iG with a 40,2% control in July 2019 OWNERSHIP • In July 2020, Mr. Jászai further increased his shareholding to 61% in 4iG VISION AND • Our strate
Slide 5: Near Term Outlook
NEAR TERM OUTLOOK • Our goal is to become the #1 IT system integrator within the next two years • Expectations for 2020 are robust with 33,5 bn HUF of 2020 September YTD revenue and a 18,2 bn HUF of contracted backlog for 2020 as of 19th November 2020 • We will continue to grow strongly but we expec
Slide 6: COVID19 Impacts
COVID19 IMPACTS ▪ 4iG responded to the pandemic situation proactively, consequently reverting back to the normal operations smoothly ▪ Delivery efficiency remained intact due to COVID19 tailored BCP, intensive process automation and scalable capacity trough 4iG’s outstanding partner network Operatio
Slide 7: Company Overview
COMPANY OVERVIEW
Slide 8: Company Snapshot
COMPANY SNAPSHOT Business Highlights Financial Highlights (HUF bn) • 4iG has proven to be flexible in order to fulfill our clients’ expectations in timing and resources. 40 33.5 • 4iG’s most important assets are the +500 technical 24.9 • employees (consultants and highly qualified engineers 20 and t
Slide 9: Highly Diversified Business Model
HIGHLY DIVERSIFIED BUSINESS MODEL REVENUE BY SERVICE REVENUE BY INDUSTRY Development Public Administration Consulting, Science, Legal Operation 21% Trade/ Commerce 21% activities 10% 2% 6% Support, Transport, consulting Health and social Warehousing 6% care 6% 6% SW sales Manufacturing Financial and
Slide 10: Strategy Overview
STRATEGY OVERVIEW Vision and strategy • Our goal is to become the #1 IT system integrator in Hungary and a significant player in CEE region Target areas for growth • Technologies: AI, Blockchain, Cyber Security, Digitalization, Fintech, Industry 4.0 • Market Segments: Transportation, Banking, Health
Slide 11: Acquisition Plans
ACQUISITION PLANS Robust organic growth complemented by acquisitions • In Hungary ▪ Our goal is to consolidate our position ▪ Invest into new technologies and ▪ Enhance our capabilties in new sectors • In Central and Eastern Europe ▪ We are looking at opportunitistic targets in the CEE region • Acqu
Slide 12: Shareholder Information
SHAREHOLDER INFORMATION KEY SHAREHOLDERS(1) SHARE PRICE PERFORMANCE Share Price Evolution (Ft) 1,000 KZF Freefloat Vagyonkezelő, 900 35% Manhattan PE 800 62% 700 600 500 Market capitalization as of 24-Nov-2020 400 300 60 bn HUF Treasury 200 Shares 100 3% 2019.11.04. 2020.01.09. 2020.03.09. 2020.05.1
Slide 13: Hungarian IT Market
HUNGARIAN IT MARKET HUNGARIAN IT MARKET EXPECTED TO GROW BY 3% ON AVERAGE DRIVEN MAINLY BY INFRASTRUCTURE TECHNOLOGY AND APPS/SERVICES SEGMENTS MARKET ESTIMATES HUNGARY 2020/2021 KEY DRIVERS Global technology trends 3,000 16.0% Internet of Things (IoT) is used in the production, retail, utilities, 1
Slide 14: Hungarian IT Market Landscape
HUNGARIAN IT MARKET LANDSCAPE FULL SCALE T-Systems 4iG SERVICE CAPABILITY Delta Unisys Asseco Invitech S&T EuroONE Symmetria Duna Elektronika Tigra 100+ Micro ICT companies NICHE 100 1000+ Note: Size of the bubble indicated estimated revenue Source: 4iG, public sources EMPLOYEE # 4IG OVERVIEW 14
Slide 15: Competence Map
COMPTENCE MAP CUSTOMER BACK OFFICE INDUSTRY SPECIFIC SOLUTIONS Client hardware distribution Workstation as PUBLIC DATA LOCAL SECTOR NETWORK & WIFI a service Design, CENTRE Cabling, End-user and Switching, Routing, mobile security Security Software development Collaboration tools Certified hardware a
Slide 16: Financial Overview
FINANCIAL OVERVIEW
Slide 17: Revenue Evolution by Segments
REVENUE EVOLUTION BY SEGMENTS HW SALES: hardware projects that have been postponed in H1 due to Covid19 2019 9M / 2020 9M (million HUF) impact, have been relaunched in Q3. Furthermore the Q2 manufacturing downturn of far east HW companies has restored and the delayed deliveries got accomplished in Q
Slide 18: 2020 9M Revenue Bridge
2020 9M REVENUE BRIDGE NET REVENUE BRIDGE NET REVENUE BUILD- UP HUF HUF m m +34% 45,000 41,129 2019 2020 40,000 35,000 33,504 30,000 24,973 25,000 20,190 20,000 14,539 15,000 10,000 8,623 4,850 5,000 0 Q1 H1 Q1-Q3 Y (1) Other revenue includes Support and Consulting, Implementation and Other Services
Slide 19: 2020 9M EBITDA Bridge
2020 9M EBITDA BRIDGE EBITDA BRIDGE EBITDA BUILD- UP HUF m +13% HUF m 4,500 2019 2020 4,075 4,000 3,500 3,000 2,818 2,484 2,500 2,000 1,500 1,360 1,009 1,000 483 578 500 0 Q1 H1 Q1-Q3 Y 4iG OVERVIEW 19
Slide 20: 2020 9M P&L Overview
2020 9M P&L OVERVIEW ➢ 2020 Q3 revenue growth of 4iG's strategic services in 4iG Nyrt 2019 2020 2020 Q1-Q3 / Outsourcing and Development have been further % % (HUF M) Q1-Q3 Q1-Q3 2019 Q1-Q3 increased in the period which represent a solid pillar to the topline growth of the business. Net Revenues 24,
Slide 21: 2020 9M Balance Sheet Summary
2020 9M BALANCE SHEET SUMMARY NET DEBT/(- CASH) (1) WORKING CAPITAL (2) HUF HUF 3,050 1,500 2,985 1,156 3,000 2,950 1,000 2,900 500 2,850 2,800 0 2,750 2,718 2,700 -500 2,650 -1,000 2,600 -1,057 2,550 -1,500 2019 Q1-Q3 2020 Q1-Q3 2019 Q1-Q3 2020 Q1-Q3 Note (1): Net debt icludes Provisions, Financial
Slide 22: Disclaimer
DISCLAIMER THIS PRESENTATION WAS MADE BY 4iG PLC (HEADQUARTERS: 1037 BUDAPEST, MONTEVIDEO U. 8). THE PRESENTATION SHALL CONTAIN ONLY FACTUAL INFORMATION AND REASONABLY DRAWN CONCLUSIONS VIA REASONABLE CALCULATIONS, FORMALLY PUBLISHED BY THOSE WHO ARE ENTITLED FOR THIS, IN ACCORDANCE WITH THE RELEVAN
Slide 23: We provide solutions and create value for the complete IT life cycle
We provide solutions and create value for the complete IT life cycle, supporting your business 24x7.
Slide 24: Contact details
H-1037 Budapest, Montevideo u. 8. Tel: +36 1 270 7600 Fax: +36 1 270 7679 www.4ig.hu