Exclusive Networks SA — Q1 2024 Earnings Presentation
22 slides from Exclusive Networks SA's earnings presentation, Apr 29, 2024
Slide 1: Exclusive Networks Q1 2024 Earnings call
#WeAreExclusive Exclusive Networks Q1 2024 Earnings call
Slide 2: Disclaimer
Disclaimer #WeAreExclusive IMPORTANT: Please read the following before continuing. This document has been prepared by and is the responsibility of Exclusive Networks SA (the “Company”). It comprises information concerning the Company and its subsidiaries (together, the “Group”). What follows applies
Slide 3: Agenda
Agenda #WeAreExclusive Q1-24 Business Review Q1-24 Financial Review Jesper Trolle, CEO Nathalie Bühnemann, CFO 6:00 pm 6:15 pm Q&A session Final remarks Jesper Trolle, CEO 6:30 pm 6:45 pm 3
Slide 4: Business Review
#WeAreExclusive Business Review Jesper Trolle CEO
Slide 5: Q1-24 Highlights
Q1-24 Highlights Solid momentum, in line with expectations #WeAreExclusive VISIBLE & DIVERSIFIED SCALE MARKET OPPORTUNITY PORTFOLIO 108% Q1-24 net vendor $50bn 126% in €1.255 bn, up 6% reported1 Q1-23 retention rate4 Growth since 2020 >2x €1.267 bn, up 7% at cc2 EXN SAM3 in 2024 108% Q1-24 net custo
Slide 6: Proven ability to address growing digital demand
Proven ability to address growing digital demand Acceleration in software business growth above 50% of the mix #WeAreExclusive Cloud business mix Q1-24 Gross sales breakdown 34% (%, 12 months rolling) Cloud-based Cloud delivery model Q1-24 continues to accelerate +6pts vs Gross sales as a preferred
Slide 7: Clear strategic positioning
Clear strategic positioning Acceleration in cloud and software business #WeAreExclusive Q1-24 Top Tier Cybersecurity segments growth (%, 12 months rolling) 1 57% Market Growth Exclusive Networks 37% 32% 30% 24% 21% 17% 11% 9% 10% 9% 7% 2% 2% 3% 2% IDENTITY ACCESS VULNERABILITY DATA WEB & EMAIL NETWO
Slide 8: Successful M&A strategy: NextGen Group acquisition
Successful M&A strategy Zoom on NEXTGEN Group recent acquisition #WeAreExclusive Profile Strategic Rationale Transaction overview • Founded in 2011 • Makes EXN clear go-to-market leader in • 100% of the equity acquired ANZ by more than doubling our size in • Leading hyper-growth channel the region s
Slide 9: NextGen Group wide array of Services
Successful M&A strategy NextGen Group wide array of Services #WeAreExclusive Vendor Portfolio Growth Business Service Offerings Selection of Vendors 4 in-house proprietary platforms for service delivery & cloud consumption billing Digital Marketing Marketing & Agency Activation Engine Creative chann
Slide 10: Financial Review
#WeAreExclusive Financial Review Nathalie Bühnemann CFO
Slide 11: Q1-24 Gross Sales drivers
Q1-24 Gross Sales drivers Growth driven by our strong and diversified vendors portfolio Q1-24 GROSS SALES Q1-24 DRIVERS OF GROWTH €m Contribution to Gross Sales growth €m +36% +6 % +1.6% +1.0% +3.8% 1,255 1,180 11,255 255 11,180 180 Q4-22 backlog Release 920 Q1-22 Q1-23 Q1-24 Same Vendors, Vendor Q1
Slide 12: Q1-24 Gross sales by geography
#WeAreExclusive Q1-24 Gross sales by geography Quarterly Gross sales by geography € million +38% • Double digit growth in constant currency on +10% +29% top of 29% growth in Q1-23 +9% +27% 925 1 009 730 • Driving force of the Group with continued EMEA solid momentum in the most mature market Q1-22 Q
Slide 13: Q1-24 Gross sales mix evolution
Q1-24 Gross sales mix evolution Large deals continue to contribute to our growth #WeAreExclusive Q1-24 Gross sales Q1-24 Gross sales Breakdown by geography Breakdown by deal size APAC (-2 Pts) 8% Deals >€1m Deals <€20k (-5 Pts) Americas (-1 Pts) (+6 Pts) 15% 19% 11% 10% 13% 20% 12% 8% Q1-23 – Q1-23–
Slide 14: Key takeaways
Key takeaways Strategical positioning fuels our growth Acceleration in software business sales in line with our cloud strategy Successful Expansion in ANZ region with NEXTGEN Group Acquisition 2024 outlook confirmed 14
Slide 15: Q&A
Q&A
Slide 16: Appendix
#WeAreExclusive Appendix
Slide 17: Q1-24 Revenue by geography
Q1-24 Revenue by geography Q1-24 Revenue1 Q1-24 Revenue1 by geography € million € million 0% EMEA +3% -1% 291 +2% 298 399 393 Q1-23 Q1-24 AMERICAS +9% 53 +7% 57 Q1-23 Q1-24 APAC -27% 54 -29% 38 Q1-23 Q1-24 Q1-23 Q1-24 % Constant currency2 % Reported % Constant currency (1) % Reported 17
Slide 18: From Gross sales to Revenue
From Gross sales to Revenue Gross sales to revenue reconciliation (€ million) Q1-23 Q1-24 Gross sales 1,180 1,255 Agent vs principal – IFRS 15 (781) (862) Revenue 399 393 18
Slide 19: FY-24 Outlook
FY-24 Outlook FY-24 Outlook (Feb 29, 2024) Gross sales growth in a range of +10% and +12% at constant currency Net margin €500- €515 m Adj. EBIT €200 – €210 m Adj. Operating FCF 80% of Adj. EBITDA 19
Slide 20: Provisional Calendar of upcoming events
#WeAreExclusive Provisional Calendar of upcoming events Annual General Meeting June 6th, 2024 H1-24 August 1th, 2024 Financial Results Q3-24 5th November, 2024 Gross Sales & Revenue Capital Market Day Autumn 2024 20
Slide 21: Glossary
Glossary • Gross Definition sales represent revenue recognized by the Group Years on a gross basis Segments Reporting #WeAreExclusive K Gross sales for each revenue stream • Net of returns, discount and rebates • IFRS revenue I Revenue • Software licenses and Vendor’s Support & Maintenance margin ac
Slide 22: Thank You
#WeAreExclusive Thank You Investors & Analysts Hacene BOUMENDJEL , Head of IR [email protected]