Proact It Group Ab · OMXSTO:PACT
Proact It Group Ab — Q1 2022 Earnings Presentation
24 slides from Proact It Group Ab's earnings presentation, Apr 26, 2022
Slide 1: Summary Q1 2022
Summary Q1 2022 April 26, 2022 Jonas Hasselberg CEO and President [email protected] Linda Höljö CFO www.proact.eu [email protected]
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 350 Million-euro turnover with stable finances. Listed on Nasdaq Stockholm since 1999 1,100 Employees wi
Slide 4: Businesses across all industries are in state of transformation
Businesses across all industries are in "state of transformation”. Data is the key to this transformation. The three defining trends in the market - Focus on digital transformation and business innovation through IT - Increase speed, flexibility and availability through multicloud - Ensure cyber sec
Slide 5: Specialist in IT Infrastructure for managing Data and Information
Specialist in IT Infrastructure for managing Data and Information CONSULTING MANAGED SERVICES HARDWARE & SOFTWARE TECHNICAL SUPPORT
Slide 6: Value to customers via our propositions
Value to customers via our propositions
Slide 7: Our multi-cloud model enable delivery to you
Private Public Managed Our multi-cloud model enable delivery to you anywhere On-premises infrastructure
Slide 8: Quarter 1 in brief
Quarter 1 in brief + 19% Revenue growth, 5% organic – Delivery delays from chip shortage + TCV growth of 56% to 122 (78) MSEK – Uncertainties related to war in Ukraine + 21% ARR growth to 1 384 MSEK + EBITA growth of 26% to 52.5 MSEK
Slide 9: Key developments in Q1
Key developments in Q1 • Proact awarded 2 data centre framework agreements for Swedish public sector (Kammarkollegiet) • HOYNG ROKH MONEGIER chooses Proact as IT partner for modern workspace and infrastructure cloud solutions • Bates Wells enables new ways of working by selecting Proact as IT partne
Slide 10: Service Management: Broadening our portfolio
Broadening our portfolio Monitoring of entire IT-infrastructure • Expanding our portfolio with Monitoring Platform as a Service, a single pane of glass solution to monitor entire IT environments • New AiOps functionalities Service Management Proact Premium Monitor, alert, Support visualise, and fix.
Slide 11: AI and machine learning is growing
Broadening our portfolio AI and machine learning is growing AI and machine learning as a strategic focus at many of our customers. Proact’s specialists and high-performance AI infrastructure solutions enables faster results, smarter decisions, and optimized operations. We see particular growth for t
Slide 12: Financial development
Financial development
Slide 13: Income Statement – Highlights Q1 2022
Income Statement – Highlights Q1 2022 TOTAL REVENUE SYSTEM SALES SERVICES SALES GROWTH MSEK GROWTH MSEK GROWTH MSEK 19% 1,065 15% 614 26% 451 Adj. EBITA Adj. PROFIT BEFORE TAX GROWTH MSEK Margin GROWTH MSEK Margin 26% 52.5 4.9% 22% 37.5 3.5%
Slide 14: Revenue development
Revenue development Key developments in the first quarter • Revenue growth 19% • 5% organically • Acquisitions contributing +10% and currency effects 4% • New cloud contracts of SEK 122 million (78) • Services growth of 26% (+5% organically) • Cloud revenue increase of 31%, positively impacted by ac
Slide 15: Profitability development
Profitability development Key developments in the first quarter • Adjusted EBITA of SEK 52.5 million (41.6) • Increase by 26% • Margin of 4.9% (4.7) • Gross margin decreased • Investments in customer quality, efficiency and product development for services • Lower margins in some larger systems deal
Slide 16: BU Nordics & Baltics
BU Nordics & Baltics Key developments in the first quarter • Revenue growth 10% (2% organically) • Systems 5% (organic 0%) • Services 23% (organic 9%), with increase in all services but mainly consulting services 73% • Conoa acquisition contributing by SEK 25 million, primarily to consulting service
Slide 17: BU UK
BU UK Key developments in the first quarter • Revenue growth 10% (2% organically) • Systems 13% (organically 4%) • Services 7% (organically -1%) • Consulting strong, while support negatively impacted by lower systems sales in 2021 • Higher demand in system sales, still impact from supply chain delay
Slide 18: BU West
BU West Key developments in the first quarter • Revenue growth by 23% • Organic growth 19% • Systems 57% (52% organically) • Services 14% (10% organically) • Systems revenues improving from low levels in 2021 • Strong demand for consulting services and good development of cloud services, including s
Slide 19: BU Central
BU Central Key developments in the first quarter • Revenue growth by 79% (organic 3%) • Systems 47% (organically 6%) • Services 138% (organically -1%) • ahd contributing by 67 MSEK in revenues • Low level of new cloud contracts in 2021 had a negative effect on cloud revenues • Good demand of consult
Slide 20: Cash flow in first quarter
Cash flow in first quarter Liquid Funds December 31, 2021 464 • Positive cash-flow from current operations Cash-flow from current operations 38 before change in working capital Current operations 94 • Negative change in working capital is mainly Change in working capital -56 related to an increase i
Slide 21: Balance sheet
Balance sheet 2022 2021 • Equity ratio of 22% (MSEK) Mar 31 Mar 31 • Cash position of SEK 418 million Total Assets 3,508 3,068 whereof Goodwill 826 573 • Net debt, including leasing liabilities, of whereof Intangible fixed assets 216 110 SEK 248 million, increased since March 2021 by SEK 180 million
Slide 22: Financial goals
SALES GROWTH FINANCIAL TARGET OUTCOME SEK 3,696 million in sales rolling 12 months GOALS >10% 0.3% Rolling 12 months EBITA MARGIN TARGET OUTCOME* Impacted by GM and delivery delays 8% 5.8% NET DEBT/ADJ EBITDA TARGET OUTCOME <2 0.67 Remains significantly better than target ROCE TARGET OUTCOME Impacte
Slide 23: Summary
Summary • Strong revenue growth, both due to acquisitions and organically • High demand for managed cloud services, with strong growth in Annualized Recurring Revenue (ARR) • Good systems growth, with good underlying demand and strong backlog into Q2 • Profitability improvement from last year
Slide 24: Thank you
Thank you www.proact.eu