Softwareone Holding Ltd. · SIX:SWON
Softwareone — FY2023 Earnings Presentation
23 slides from Softwareone's earnings presentation, Feb 15, 2024
Slide 1: FY 2023 Results
FY 2023 Results 15 February 2024
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation may contain certain forward-looking statements relating to SoftwareOne Holding AG (the ‘Company’) and each of its subsidiaries and affiliates (jointly referred to as ‘SoftwareOne’ or the ‘group’) and its future business, development and economi
Slide 3: Solid results with 8% revenue growth and adj. EBITDA margin over 24%
Solid results with 8% revenue growth and adj. EBITDA margin over 24% CHFm, % YoY (ccy) Q4 2023 FY 2023(1) Revenue(2) 270.7 +6.6% 1,010.9 +8.0% Adjusted EBITDA 85.6 +14.4% 245.2 +6.5% Margin (% revenue) 31.6% +2.4pp 24.3% (0.2)pp (1) FY 2023 financial information is unaudited 3 (2) FY 2022 revenue fo
Slide 4: Positive momentum driven by EMEA and APAC
Positive momentum driven by EMEA and APAC Revenue by region CHFm, % YoY growth (ccy) EMEA Q4 2023 FY 2023 NORAM 165.9 609.8 Q4 2023 FY 2023 +4.8% +7.6% 37.3 149.1 APAC (10.0)% +0.0% Q4 2023 FY 2023 36.1 144.3 +32.8% +24.6% LATAM Q4 2023 FY 2023 27.7 99.7 +4.4% +0.2% 4
Slide 5: Broad-based growth in S&C Services; continued acceleration in Microsoft
Broad-based growth in S&C Services; continued acceleration in Microsoft Software & Cloud Services Software & Cloud Marketplace Revenue, CHFm, % YoY growth (ccy) (1) Revenue, CHFm, % YoY growth (ccy) +5.6% +11.0% 545.3 549.7 437.4 461.2 +7.9% +5.6% 114.6 118.5 151.2 152.2 Q4 2022 Q4 2023 FY 2022 FY 2
Slide 6: Solid performance in line with revised revenue guidance
Solid performance in line with revised revenue guidance P&L summary(1) CHFm Q4 2023 % Δ Rep % Δ CCY(3) FY 2023 % Δ Rep % Δ CCY(3) Revenue(2) 270.7 1.8% 6.6% 1,010.9 2.9% 8.0% ▪ Solid growth in 2023 across both business lines Delivery costs (84.0) (2.9)% 0.3% (347.6) 0.4% 5.3% ▪ Adj. EBITDA up 14.4%
Slide 7: Adj. EBITDA bridge impacted by post-Covid normalisation of commercial activities
Adj. EBITDA bridge impacted by post-Covid normalisation of commercial activities Adjusted EBITDA bridge CHFm Personnel costs Normalisation Adj. EBITDA Revenue Delivery One-off co- Marketing Sales G&A Other(1) Adj. EBITDA FY 2022 costs marketing and travel FY 2023 investments in 2022 7 (1) Includes b
Slide 8: Improved adj. EBITDA margin in S&C Services
Improved adj. EBITDA margin in S&C Services Business line P&L(1) CHFm Software & Cloud Services(2) Software & Cloud Marketplace FY 2023 % Δ CCY(3) FY 2023 % Δ CCY(3) ▪ Further optimisation of delivery costs driven by Revenue 461.2 11.0% 549.7 5.6% operational excellence programme Delivery costs (275
Slide 9: Operational excellence delivered well ahead of plan
Operational excellence delivered well ahead of plan Execution against plan Current status ▪ Partial completion of sales force right-sizing Commercial ▪ Increase tools/processes adoption effectiveness ▪ Roll-out of sales acceleration initiatives, i.e. pricing, rewards ▪ Optimised service delivery spa
Slide 10: Adjusted net profit bridge
Adjusted net profit bridge Cost savings vs. target CHFm FY 2023 FY 2022 IFRS reported profit for the period 21.4 (58.3) CHFm 70 Change in revenue recognition of Microsoft (0.2) 6.6 Enterprise Agreements 47 Share-based compensation(1) - 4.3 Integration, M&A and earn-out expenses 23.1 44.3 Russia-rela
Slide 11: Stable working capital development
Stable working capital development Net working capital Change in net working capital CHFm, 31 December 2023 CHFm FY 2021 FY 2022 FY 2023 Trade receivables ▪ Working capital position in 2’317.2 18.0 line with prior year, with stable DSO and DPOs Prepayments, 2.6 contract assets and 209.8 ▪ Stable cus
Slide 12: Strong operating cash flow and balance sheet
Strong operating cash flow and balance sheet Cash conversion Net cash development CHFm CHFm Net cash 317.5 73%(1) 31 Dec 2022 Cash conversion 180.0 M&A investments and (55.5) earn-out payments Taxes (46.2) Financing expenses, Change in Cash dividend and SBB (96.8) Adj. Capitalised Capex NWC conversi
Slide 13: 2024 guidance and mid-term targets
2024 guidance and mid-term targets FY 2024 Vision 2026 Revenue growth(1) 8-10% Mid-teens Adj. EBITDA margin Approaching 24.5-25.5% (% revenue) 28% 30-50% adj. 30-50% adj. Dividend policy profit for the year profit for the year 13 (1) In constant currency
Slide 14: Appendix
Appendix 14
Slide 15: Definitions of key alternative performance measures
Definitions of key alternative performance measures Adjusted EBITDA is defined as the underlying earnings before net financial items, tax, depreciation and amortisation, adjusted for items affecting comparability in operating expenses. Adjusted EBITDA margin is defined as adjusted EBITDA divided by
Slide 16: Profit and loss summary
Profit and loss summary IFRS reported Adjusted(1) CHFm FY 2023 FY 2022 FY 2023 FY 2022 %Δ % Δ at CCY(2) Revenue from Software & Cloud Marketplace 549.8 538.4 549.7 545.3 0.8% 5.6% Revenue from Software & Cloud Services(3) 461.5 437.4 461.2 437.4 5.4% 11.0% Total revenue 1,011.3 975.8 1,010.9 982.8 2
Slide 17: Business line profit & loss summary
Business line profit & loss summary Software & Cloud Services(1) Software & Cloud Marketplace Corporate CHFm Q4 2023 % Δ CCY(2) FY 2023 % Δ CCY(2) Q4 2023 % Δ CCY(2) FY 2023 % Δ CCY(2) Q4 2023 FY 2023 Revenue 118.5 7.9% 461.2 11.0% 152.2 5.6% 549.7 5.6% - - Delivery costs (66.5) 1.9% (275.6) 6.3% (1
Slide 18: Quarterly summary by business line
Quarterly summary by business line CHFm Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Revenue Solutions & Cloud Marketplace 123.5 144.2 112.3 153.7 533.6 121.9 152.8 119.4 151.2 545.3 125.6 151.0 121.0 152.2 549.7 Revenue Softw
Slide 19: Balance sheet
Balance sheet CHFm 31 December 2023 31 December 2022 CHFm 31 December 2023 31 December 2022 Cash and cash equivalents 267.4 325.8 Trade payables 2,290.5 1,915.9 Trade receivables 2,317.2 1,945.0 Other payables 215.8 212.2 Income tax receivables 20.2 15.3 Accrued expenses and contract liabilities 181
Slide 20: Cash flow statement
Cash flow statement CHFm FY 2023 FY 2022 CHFm FY 2023 FY 2022 Profit for the period 21.4 (58.5) Proceeds from financial liabilities 6,304.6 3,153.7 Depreciation, amortisation & impairment 65.9 58.6 Repayments of financial liabilities (6,242.4) (3,184.9) Total finance result, net 33.3 92.2 Payment of
Slide 21: Working capital reconciliation
Working capital reconciliation CHFm 31 December 2023 31 December 2022 Trade receivables 2,317.2 1,945.0 Other receivables 92.1 76.6 Prepayments and contract assets 117.7 125.6 Trade payables (2,290.5) (1,915.9) Other payables (215.8) (212.2) Accrued expenses and contract liabilities (181.6) (177.5)
Slide 22: Net debt reconciliation
Net debt reconciliation CHFm 31 Dec 2023 30 June 2023 31 Dec 2022 Bank overdrafts 0.4 13.1 5.2 Other current financial liabilities 121.2 295.8 17.0 Other non-current financial liabilities 3.4 40.8 45.2 Total financial liabilities 124.9 349.7 67.5 Cash and cash equivalents (267.4) (223.2) (325.8) Cur
Slide 23: FX exposure
FX exposure Revenue by currency(1) Operating expenses by currency(1) 25.2% 28.7% 37.1% 36.4% 1.8% 1.0% 1.4% 2.2% 1.3% 6.4% 2.8% 4.7% 12.2% 6.1% 14.8% 17.9% EUR USD CHF GBP BRL MXN INR Other EUR USD CHF GBP BRL MXN INR Other 23 (1) Based on 2023 management accounts