Slide 1: Summary Q1 2019
Summary Q1 2019 25 April, 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: Proact at a glance
Delivering Over 5000 Listed company 850 people Over 40 Manage over agility since projects and with over glocal Offices in 100PB 1994 3500 customers €330m turnover organisation 15 countries critical data
Slide 4: Market Trends
Industry trends › Digitalization part of almost all organisations › IT is expected to become a business Global trends enabler › Innovation focus is increasing › Financial growth slows down › ROI measured outside IT-department › New security threats arises › Other budgets than IT-budget actually › Te
Slide 5: The CIO Agenda is Changing
PROACT The ClO Agenda is Changing GOING FROM Traditional IT buyers IT as a cost centre Focussing on technology GOING TO Business buyers IT as a business advantage Focussing on effective integration IT SPEND “2x 4 es +11 n traditional IT- | Oncloud On hybrid cloud infrastructure architecture architec
Slide 6: 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 7: Key figures and Special highlight
Key figures and Special highlight
Slide 8: Key Q1 Messages
Lower EBITA 4.7% Key Q1 Messages One-time costs 11.1 MSEK Cloud Services total contract value 61 MSEK Revenue Growth Q1 . 20%
Slide 9: Income Statement Q1 2019
Income Statement Q1 2019 Jan–Mar 2019 Jan-Mar 2018 (MSEK) System Sales 628.9 481.3 Services 280.5 276.0 Other 0.3 1.3 TOTAL REVENUE SYSTEM SALES SERVICES SALES Revenue Products and services 909.8 -712.2 758.6 -574.1 GROWTH MSEK GROWTH MSEK GROWTH MSEK Gross profit 197.5 184.5 Gross margin 21.7% 24.3
Slide 10: Income Statement Rolling 12 months
Income Statement Rolling 12 months (MSEK) System Sales Services Apr-Mar 2019 2,322.3 1,143.4 Apr-Mar 2018 2,015.9 1,107.6 Other 3.2 5.9 Revenue 3,468.9 3,129.4 TOTAL REVENUE SYSTEM SALES SERVICES SALES Products and services -2,663.6 -2,381.6 Gross profit 805.2 747.8 GROWTH MSEK GROWTH MSEK GROWTH MS
Slide 11: Revenue & PBT in Q1 per Business Unit
Revenue & PBT in Q1 per Business Unit Strong revenue growth of 20% driven by growth of 31% of system sales 2019 2018 January - March January - March Revenue growth in Nordics of 29% with margin affected by few large and important but low-margin (MSEK) Revenue PBT Net margin Revenue PBT Net margi
Slide 12: Cash flow in Q1
Cash flow in Q1 Liquid Funds December 31, 2018 270 Cash-flow from current operations -2 Current operations 28 Negative change in working capital -30 (-47) MSEK Change in working capital -30 but still +51 MSEK on 12 months rolling Cash-flow from investment activities -24 Fixed assets -24 Fixed as
Slide 13: Balance sheet
Balance sheet 2019 2018 2018 (MSEK) Mar 31 Dec 31 Mar 31 Total Assets 2,507 2,213 1,997 whereof Goodwill 405 393 401 Solidity of 20% including a negative impact whereof Intangible fixed 66 70 96 from IFRS 16 of 233 MSEK assets whereof Accounts 582 613 557 Cash position of 246 MSEK receivables
Slide 14: The Proact share
The Proact share 2019 2018 March 31 December 31 AB Grenspecialisten 11.1 % 11.1 % Recommended dividend up 11% to 4.15 SEK Livförsäkringsbolaget Skandia 10.9 % 10.9 % (3.75) UBS AG London Branch, W8IMY 7.7 % 8.1 % Länsförsäkringar Småbolag Sverige 4.7 % 4.7 % Skandia Sverige 3.8 % 3.8 % Annual Ge
Slide 15: Financial Goals
SALES GROWTH FINANCIAL TARGET OUTCOME 3 469 MSEK GOALS >10% +11% Rolling 12 months EBITA MARGIN TARGET OUTCOME* Adjusted for one-time costs 8% 5.8% NET DEBT/EBITDA TARGET OUTCOME IFRS16 impact of 233 MSEK <2 0.5 ROCE TARGET OUTCOME Impacted by IFRS 16 and one-time costs >25% 21.8% DIVIDEND TARGET OU
Slide 16: Restructuring Proact
Restructuring Proact New group structure to drive efficiency, improve accountability, simplify operations and put focus on execution towards targets Profitable growth Accelerated M&A Shift to services Builds on key principles and strengths of Proact Customer centric De-centralized & co
Slide 17: Our customers
Our customers
Slide 18: Strong brand connected to...
Strong brand connected to… 4,7 4,6 4,9 1 Being a trusted advisor in the market Reduces risk for us Integrates well Quality of work and service 2 Delivering quality in everything we do 4,9 4,8 4,7 3 Providing strong advisory to our customers Reduces Effort Helping to avoid hassle Variety in portfolio
Slide 19: Industry independence
Other Trading and 15 (14) % services Industry independence Media 23 (24) % 2 (4) % Our target groups are data intensive organizations across multiple Bank and Finance industries, sizes and regions 10 (9) % No industry dependency over 24% 7 industries where synergies and Oil and Energy speciali
Slide 20: Highlight wins this quarter
Highlight wins this quarter Proact introduces fully redundant solution to support growth at Vitens Proact builds Axima’s new data centre to support strategic growth Proact supports Czech truck manufacturer Tatra to introduce new intelligent data management solution Managed service approach a
Slide 21: New Case Study highlight
New Case Study highlight Klarna has a clear cloud strategy but was in the need for a tool helping them to troubleshoot their entire IT-environment using advanced analytics. Proact suggested, designed and implemented a Big Data solution based on Splunk technology which: » Radically enhanced troub
Slide 22: Summary
Summary Strong revenue growth driven by systems business Gross-margin pressure from important but low-margin system deals One-time costs of restructuring
Slide 23: Proact
PROACT