Softwareone Holding Ltd. · SIX:SWON
Softwareone — Crayon Group — Investor Presentation (December 2024)
21 slides from Softwareone's investor presentation, December 2024
Slide 1: Investor Presentation
Investor Presentation March 2023 Crayon Group - Internal Only
Slide 2: Disclaimer
Disclaimer The statements contained in this presentation may include forward-looking statements, such as statements of future expectations regarding the Company's results of operations, financial condition, liquidity, prospects, growth and strategies. These statements are based on the management’s c
Slide 3: Crayon in brief
ABOUT Crayon in brief Gross Profit 12 months rolling 1 NOK million CAGR 6.257 30% 5.323 4.229 22 years experience 140 000 customers and expertise in software & from SMB to enterprise 2.826 cloud advisory across all industry segments with high share of public sector Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 4: A snapshot
ABOUT A snapshot Geographical split Software & cloud % of GP1 Share of total GP by region, 20231 Software ▪ License offering directly towards end-customers Nordics & Cloud ▪ Software license advisory, support, and access to 36% Direct Crayon’s reporting portal 40% ▪ License offering towards channel
Slide 5: 56% of Gross Profit coming from international markets
ABOUT 56% of Gross Profit coming from international markets Gross Profit 1 Adj. EBITDA 1 NOK million NOK million 48% 48% 57% 56% 56% 25% 42% 51% 47% 38% 6,257 839 1.094 5,662 439 919 380 644 413 4,496 430 336 183 269 3,521 413 3,165 3,145 103 2,548 105 2,345 682 1,546 535 600 634 1,119 415 1,765 2,1
Slide 6: Crayon has just embarked on its international growth journey
ABOUT Crayon has just embarked on its international growth journey Continue to scale software & 1 Strong market growth 2 cloud business globally 3 Expanding service upsell Strong underlying market growth in the Unique global position and customer-centric Diversified service offering creating value f
Slide 7: Crayon is an organization centered around the customer
ABOUT Crayon is an organization centered around the customer We are a customer-centric organization, maximising ROI on software and cloud investments through our service-led capabilities and AI expertise. We enhance customer outcomes by leveraging our advisory expertise and a suite of services focus
Slide 8: How we compete - uniquely positioned across three customer value streams
ABOUT How we compete - uniquely positioned across three customer value streams Software & Cloud Software & Cloud Consulting Economics Direct & Channel Services Illustrative customer journey – services-led approach Market ▪ Highly fragmented competitive landscape ▪ Fast-growing market ▪ Large market
Slide 9: Crayon adds significant value to both vendors and customers
ABOUT Crayon adds significant value to both vendors and customers Key benefits for vendors Key benefits for end-customers and channel partners Trusted and proven partner Substantial tech spend savings Long-term trusted partner with proven track-record Substantial tech spend savings and ensuring tech
Slide 10: Strategic partnerships
ABOUT Strategic partnerships Strong scores with key vendors (selected accolades) ▪ 20+ year relationship, fastest growing partner globally ▪ +5,000 certifications ▪ Azure Expert MSP ▪ One of few to hold 6/6 MCPPs1 ▪ Global Premier Consulting Partner ▪ +150 certifications ▪ Google Cloud and Workspace
Slide 11: Financial Review
(@ Crayon Financial Review
Slide 12: Q3 Highlights
Q3 HIGHLIGHTS Significant profitability growth and strong working capital improvement Amounts in NOK Continued solid growth in a cautious market environment 1,435m Gross Profit +14% growth Strong profit expansion and record Q3 margin 17% Adj. EBITDA Margin 1 5 pp increase Working capital improvement
Slide 13: Strong growth in software and cloud and continued profit expansion
MARKET DYNAMICS Strong growth in software and cloud and continued profit expansion Software and Cloud Services +13% Gross Profit Gross Profit +21% MNOK MNOK 2 589 3 414 +7% 2 298 +18% 2 829 MNOK 609 567 809 685 Q323 Q324 LTM Q323 LTM Q324 Q323 Q324 LTM Q323 LTM Q324 EBITDA EBITDA Margin 1 45% 54% 50
Slide 14: Strong improvement in profitability
FINANCIAL REVIEW Strong improvement in profitability Q3 Gross Profit by business area Q3 Adj. EBITDA by business area NOK million NOK million 406 17 1 435 40 202 9 203 305 237 238 504 -250 SW & SW & SCE Consulting HQ/ Q3 2024 SW & SW & SCE Consulting HQ/ Q3 2024 Cloud Cloud Elim Cloud Cloud Elim Dir
Slide 15: Profit improvement across all regions
FINANCIAL REVIEW Profit improvement across all regions Q3 Gross Profit by market cluster Q3 Adj. EBITDA by market cluster NOK million NOK million 160 44 1 435 73 383 -8 238 30 -43 186 342 506 Nordics Europe APAC US HQ/Elim Q3 2024 Nordics Europe APAC US HQ/Elim Q3 2024 & MEA & MEA Growth EBITDA 37%
Slide 16: Continued improvement in working capital – outlook upgraded
FINANCIAL REVIEW Continued improvement in working capital – outlook upgraded Net working capital Q3 2024 Net working capital over time NOK million NOK million 905 Accounts receivable 7,320 253 157 Accounts -121 -218 -132 payable -7,158 Trade working -1,121 -1,085 capital 162 -1,403 Q3 22 Q4 22 Q1 23
Slide 17: Profit and loss – Q3 2024
FINANCIAL REVIEW Profit and loss – Q3 2024 NOK million Q3 2024 Q3 2023 2023 2022 Gross Sales 11 508 9 568 49 077 38 761 Revenue 1 621 1 460 6 397 5 200 • EBITDA adjustments include NOK 6m in share- Cost of sales -186 -200 -735 -704 based compensations Gross profit 1 435 1 260 5 662 4 496 Operating e
Slide 18: Balance sheet – Q3 2024
FINANCIAL REVIEW Balance sheet – Q3 2024 Sep 30 Sep 30 Sep 30 Sep 30 Assets 2024 2023 Equity and liabilities 2024 2023 Goodwill 3 381 3 255 Shareholders' equity 2 899 2 729 Other intangible assets 627 674 Interest bearing liabilities 2 333 1 791 Deferred tax asset 155 287 Deferred tax liabilities 12
Slide 19: Robust financial position
FINANCIAL REVIEW Robust financial position Cash flow from operating activities NOK million 2,117 478 599 Cash flow from operations driven 69 158 97 by changes net working capital -497 -955 -1,286 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q324 LTM cash development NOK million -150 -342 Strong c
Slide 20: Outlook
2024 OUTLOOK Outlook LTM Q3 Medium 2023 2024 Comment 2024 term 2024 outlook implies organic growth Gross Profit growth 26% 17.5% 15-17% ~20% in line with medium-term outlook Gradual Continuing growth while also improving Adj. EBITDA margin 1 16.2% 17.5% 19-20% increase to profitability 25% -10% to -
Slide 21: Key takeaways
KEY TAKEAWAYS Key takeaways Uniquely positioned for long term sustainable growth Significant margin potential from scaling international businesses Continued focus on working capital and cash generation 21 Crayon Group - Internal Only