Sword Group SE · EURONEXT:SWP
Sword — H1 2024 Earnings Presentation
49 slides from Sword's earnings presentation, September 2024
Slide 1: H1 2024 Presentation
SWORD GROUP H1 2024 Presentation September 2024 Sword Group - September 24 1
Slide 2: Agenda
At a Glance Offer Vision 2028 Strategic Plan Figures Sword Group’s Share Financial Key Dates Sword Group 2
Slide 3: At a Glance
At a Glance Sword Group | 3
Slide 4: At a Glance
At a Glance A global Leader in Technology Transformation International 1000+ customers 3 offshore | Successful, Growing, Financially Secure Group in over 50 nearshore founded in and Listed 2000 countries support centres Sword Group has been making world-leading organisations more efficient and more
Slide 5: H1 2024 Dependable, digital IT transformation solutions
H1 2024 Dependable, digital IT transformation solutions that reduce costs and increase productivity H1 2024 Consolidated Revenue | €156.9m (i) 3,118 people | 36 nationalities (i) EBITDA Margin | 12.0% (i) Consolidated Revenue by Region (i) Consolidated Revenue by Market (i) Others (Bank, Finance Hea
Slide 6: Track record
Track record 07-08 YEAR 2018 2019 2020 2021 2022 (i) 2023 (iii) H1 2024 2024 Revenue €M 194.3 213.2 212.5 214.6 265.7 281.6 156.9 % Current EBITDA 14.0% 13.4% 13.9% 13.6% 12.5% 12.3% 12.0% % Organic Growth (ii) +18.3% +20.7% +9.2% +21.5% +26.3% +19.0% +15.7% Staff at 01/01/xxxx 2,030 2,067 2,337 1,9
Slide 7: Organisation | Management Team
Organisation | Management Team CEO Kevin MORETON Dieter ROGIERS Jacques MOTTARD BENELUX | GREECE SWITZERLAND | MIDDLE EAST UK | US SPAIN | EU OFFSHORE GLOBAL SERVICES CENTER FINANCIAL DIGITAL MIDDLE EAST & CANADA & PUBLIC SECTOR ENERGY LUXEMBOURG GREECE SPAIN TIPIK SWITZERLAND PLATFORM COO SERVICES
Slide 8: Our DNA
Our DNA ▪ We do what is planned ▪ We are constantly adapting ▪ We choose markets that offer long-term contracts ▪ We are pragmatic about new technologies (AI and cybersecurity) ▪ Our BP 2028 forecasts organic growth of 15% per year ▪ Our additional BP 2028 forecasts investment of around €100m to boo
Slide 9: Offer
Offer Sword Group 9
Slide 10: Group's Offer | Software Components & IT Services
Group’s Offer | Software Components & IT Services SERVICES SOFTWARE COMPONENTS Creating Value through technology & improvement Adding Value through innovative software components solutions Application Data & Content AI & Development Analytics Services Automation Infrastructure & Enterprise Cyber Man
Slide 11: Certifications in the Group
Certifications in the Group Information & Environmental Project & Quality Security Technology H&S Management Management Systems ISO 9001: 2015 ISO 27001: 2013 ISO 20000-1: 2018 ISO 45001: 2018 ISO 14001: 2015 Sword Group 11
Slide 12: Vision 2028
Vision 2028 Sword Group 12
Slide 13: Vision 2028 - Our Model for Delivery
Vision 2028 OUR MODEL CEO FOR DELIVERY Kevin To deliver Vision 2028, we will create a SECTOR MODEL supported by a DIGITAL PLATFORM business, with a developed INTERNATIONAL FOOTPRINT PUBLIC ENERGY FINANCIAL DIGITAL APPLICATIONS & DATA SECTOR SECTOR SECTOR PLATFORM Greg Phil Rob Terry DAS TDS/ EIS FSS
Slide 14: Vision 2028 - Energy Sector
OUR MODEL FOR DELIVERY Vision 2028 - Energy Sector Sword specialises in supporting global customers across the energy sector; EIS TDS TDSU RUS KSA from oil and gas operators and EPCs to renewables and the energy transition OUR IMMEDIATE FOCUS Demand based Expand our opportunity UK | US | IRELAND OIL
Slide 15: Vision 2028 - Digital Platform
OUR MODEL FOR DELIVERY Vision 2028 - Digital Platform Provide expert guidance and comprehensive services in cyber security and hybrid ITS NCS ICS CSS HCS infrastructure to ensure the confidentiality, integrity, and availability of critical information and systems OUR IMMEDIATE FOCUS Modernise and ev
Slide 16: Vision 2028 - Our Organisational Model
Vision 2028 OUR ORGANISATIONAL MODEL CEO To deliver Vision 2028, we will enhance our core business, target European Agencies, Dieter National Governments and Private markets, and combine our expertise in digital communications to win new contracts within our existing client-base. BENELUX | GREECE |
Slide 17: Vision 2028 | EU Institutions | Focus
OUR DELIVERY MODEL Vision 2028 | EU Institutions | Focus Commercial activities offered from near-site locations close to the client (mostly Belgium & Luxembourg). Delivery is executed in Sword is considered one of the key players providing IT services to the EU our near-shore operations (Greece & Sp
Slide 18: Vision 2028 | Further capitalising our strengths
Vision 2028 | Further capitalising OUR 2025 - 2028 FOCUS Further development 2-3 new clients / year in our strengths European Commission and Institutions of EU Agencies and International Sword will build on its strengths to achieve the goals of Vision 2028 organisations BENELUX | GREECE | SPAIN | EU
Slide 19: Vision 2028 - Switzerland | Canada
Vision 2028 OUR MODEL CEO FOR DELIVERY Jacques To deliver Vision 2028, we deploy a SECTOR MODEL offering GLOBAL OUTSOURING with an extended INTERNATIONAL NETWORK. MANAGED SERVICES / WESTERN CH CENTRAL CH INTERNATIONAL INDUSTRIES REGIONAL AGENCIES CENTRE OF EXPERTISE IDO SIO INC MTL CSI OPS SWITZERLA
Slide 20: Vision 2028 - India | Middle-East | Canada
Vision 2028 To realise Vision 2028, we are expanding our Offshore Services into new international OUR GLOBAL SUPPORT MODEL FROM OFFSHORE LOCATION markets while reinforcing our presence in the Middle East. Additionally, we will INDIA UAE LEBANON CYPRUS establish specialised practices in high-value te
Slide 21: M&A Strategy
Vision 2028 OUR ORGANISATIONAL MODEL UK BELUX SWITZERLAND INDIA Acquire positions in new geographical territories and/or in technological fields US UE CANADA MIDDLE EAST where we are not yet sufficiently consolidated RENEWABLE SPAIN SPORT KSA GERMAN EUROPEAN LONDON SPEAKING EMIRATES AGENCIES SWITZER
Slide 22: Strategic Plan 2024-2028
Strategic Plan 2024-2028 Sword Group 22
Slide 23: 2024 - 2028 Objectives | Organic Growth
2024 - 2028 Objectives | Organic Growth Business Plan by forfaitising the a priori effect of accelerators ▪ By applying an organic growth of 15% per year ▪ Maintaining the profitability rate at 12% €M YEAR 2024 2025 2026 2027 2028 REVENUE 324 372 428 493 566 EBITDA IFRS 40 46 53 61 68 CASH GENERATIO
Slide 24: 2025 - 2028 Business Plan generated by our M&A Strategy
2025 - 2028 Business Plan generated by our M&A Strategy (i) ▪ M&A (i) €M YEAR 2025 2026 2027 2028 REVENUE 30.0 63.0 99.3 139.2 EBITDA IFRS 3.6 7.6 11.9 16.7 CASH GENERATION 2.3 4.7 7.6 10.6 (i) Acquisitions completed during the year. Figures provided carried forward. Sword Group 24
Slide 25: 2025 - 2028 New Business Plan
2025 - 2028 New Business Plan ▪ New Business Plan €M YEAR 2025 2026 2027 2028 REVENUE 402.0 491.0 592.3 705.2 EBITDA IFRS 49.6 60.6 72.9 84.7 CASH GENERATION 31.3 37.7 46.6 53.6 Market Capitalisation >€1 Mrd Objective Sword Group 25
Slide 26: 2025 - 2028 Business Plan
2025 - 2028 Business Plan (i) ORGANIC GROWTH (i) 2025 €372 M 2026 €428 M 2027 €493 M 2028 2028 €566 M REVENUE €705.2 M MARKET CAP. >€1 Mrd M&A (i) 2025 €30.0 M 2026 €63.0 M 2027 €99.3 M 2028 €139.2 M (i) Acquisitions completed during the year. Figures provided carried forward . Sword Group 26
Slide 27: Leverage of Outperformance | Possible Accelerators
Leverage of Outperformance | Possible Accelerators With From 2023 To 2028 With Accelerators Accelerators UK | US Oil & Gas Renewables Neom EU BeLux Market All European Markets (i) TIPIK Constant process Public Sector | International of searching for SWITZERLAND #1 International Org. The UN Globally
Slide 28: Figures
Figures Sword Group 28
Slide 29: H1 2024 | Key Figures
H1 2024 | Key Figures +15.7% Organic Growth at constant perimeter and constant exchange rates H1 €156.9m Consolidated 2024 Revenue 12.0% EBITDA margin Sword Group 29
Slide 30: H1 2024 | Consolidated Breakdown
H1 2024 | Consolidated Breakdown €m H1 2024 (*) Revenue EBITDA Margin Organic Growth (i) BeNeLux | Greece | Spain | EU 56.4 9.0% +13.5% Locations Switzerland | Canada 46.2 9.3% +21.6% UK | US 45.4 15.4% +12.4% (ii) Offshore Global Services 8.9 27.5% +17.1% Centers | Middle East TOTAL 156.9 12.0% +15
Slide 31: H1 2024 | PnL
H1 2024 | PnL (i) (i) With no impact of amortization of backlog acquisition €m H1 2024 Revenue 156.9 Current EBITDA 18.9 | 12.0% Current EBIT (ii) 15.9 | 10.1% Non Current Costs 2.2 Financial Costs (0.3) Corporate Tax 2.8 Net Profit after corporate tax (i) 11.2 | 7.1% Sword Group 31
Slide 32: H1 2024 Balance Sheet | Non-Current Assets
H1 2024 Balance Sheet | Non-Current Assets €k 31.12.2023 30.06.2024 ASSETS NON-CURRENT ASSETS Goodwill 69,355 77,323 ▪ Increase due to the acquisitions of Other intangible assets 7,036 7,473 AAA & IACS Property, plant & equipment 4,573 4,927 Investments in associates 365 - Financial assets at fair v
Slide 33: H1 2024 Balance Sheet | Current Assets
H1 2024 Balance Sheet | Current Assets €k 31.12.2023 30.06.2024 ASSETS CURRENT ASSETS Trade and other 35,700 37,300 receivables Work in progress 45,413 62,151 ▪ Increase due to revenue growth and new EU projects Current tax assets 1,100 1,063 Other assets 5,711 6,372 Cash and cash equivalents 62,587
Slide 34: H1 2024 Balance Sheet | Financial Debt
H1 2024 Balance Sheet | Financial Debt €k 31.12.2023 30.06.2024 EQUITY AND LIABILITIES EQUITY Share capital 9,545 9,545 Share premiums 70,676 70,676 Reserves 6,733 9,318 Retained earnings 17,198 3,669 TOTAL EQUITY - GROUP SHARE 104,152 93,208 Non-controlling interests (minority 1,258 1,604 interests
Slide 35: 2024 | Net Cash Position
2024 | Net Cash Position (i) 30/06/2024 Net Cash Position: €4.8m (Bank: €2.4m | Treasury Shares: €2.4m) 31/12/2023 Net Cash Position: €32.6m (Bank: €27.4m | Treasury Shares: €5.2m) (i) Net cash position, excluding IFRS Sword Group 35
Slide 36: H1 2024 | Net Cash Position Details
H1 2024 | Net Cash Position Details (i) €m H1 2023 H1 2024 As of 31/12 +38.7 +32.6 Operational cash: normative flow +10.0 +10.0 Change in WCR -8.6 -11.7 (ii) Balance GRC (Disposal + GRC Share deals) +11.4 - Dividends -16.2 -16.0 Other share deals during the period -11.9 -6.1 Acquisitions + M&A fees
Slide 37: H1 2024 | Backlog - AAA excluded
H1 2024 | Backlog - AAA excluded [31/12/2023] [30/06/2024] Backlog: Backlog: €550.7m(i) €560.8m(i) (21.2 months) (21.6 months) (i) AAA excluded Sword Group 37
Slide 38: H1 2024 Top 10 Clients
H1 2024 Top 10 | Clients Company Location British Petroleum UK | US DG Informatics (DIGIT) BeNeLux DG Taxation and 3 1 2 BeNeLux Customs Union The first 10 clients The first client European Parliament BeNeLux represents 9.1% represent 36.7% of Harbour Energy UK the H1 2024 of the H1 2024 Consolidate
Slide 39: Staff | Details
Staff | Details Staff on 31/12/2023 3,015 New comers +164 Acquisitions +85 Leavers -146 Staff on 30/06/2024 3,118 (annual basis) Staff Turnover 9.7% Sword Group 39
Slide 40: Sword Group's Share
Sword Group’s Share Sword Group 40
Slide 41: Share return
Share return -1% +55% +13% +5.5% -14.8% 2020 Total Share 2021 Total Share 2022 Total Share 2023 Total Share 2024 Total Share Return (TSR) Return (TSR) Return (TSR) Return (TSR) Return (TSR) 01/01: €34.1 - 31/12: 01/01: €31.35 - 31/12: 01/01: €43.65 - 31/12: 01/01: €39.4 - 31/12: 01/01: €39.85 - 30/0
Slide 42: Financial Key Dates
Financial Key Dates Sword Group 42
Slide 43: Financial Calendar
Financial Calendar 31 PUBLICATIONS MEETINGS ▪ 24/10/2024 ▪ 12/03/2025 2024 | Q3 Results SFAF Meeting | FY2024 Results ▪ 23/01/2025 2024 | Q4 Results ▪ 28/04/2025 Annual ▪ 11/03/2025 Shareholders 2024 | FY Results Meeting | 2024 Sword Group 43
Slide 44: Follow Sword
FOLLOW SWORD sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group Sword Group | 2 rue d’Arlon L-8399 Windhof - Luxembourg SE capital €9,544,965 - B168244
Slide 45: Follow Sword
FOLLOW SWORD sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group Sword Group | 2 rue d’Arlon L-8399 Windhof - Luxembourg SE capital €9,544,965 - B168244
Slide 46: Follow Sword
FOLLOW SWORD sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group Sword Group | 2 rue d’Arlon L-8399 Windhof - Luxembourg SE capital €9,544,965 - B168244
Slide 47: Follow Sword
FOLLOW SWORD sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group Sword Group | 2 rue d’Arlon L-8399 Windhof - Luxembourg SE capital €9,544,965 - B168244
Slide 48: Follow Sword
FOLLOW SWORD sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group Sword Group | 2 rue d’Arlon L-8399 Windhof - Luxembourg SE capital €9,544,965 - B168244
Slide 49: Follow Sword
FOLLOW SWORD sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group sword-group.com @Sword_Group Sword Group @SwordGroup Sword Group Sword Group | 2 rue d’Arlon L-8399 Windhof - Luxembourg SE capital €9,544,965 - B168244