Gft Technologies Se · XETR:GFT

Gft Technologies — Investor Presentation (May 2019)

39 slides from Gft Technologies's investor presentation, May 2019

  1. Slide 1: Investor Presentation

    Investor Presentation GFT Technologies SE May 2019

  2. Slide 2: Agenda

    Shaping the future of digital business 1. GFT at a glance Agenda 2. GFT business model 3. Financial results Q1/2019 4. Outlook GFT GROUP May 2019 2

  3. Slide 3: Shaping the future of digital business

    Shaping the future of digital business GLOBAL WORKFORCE REVENUE FY 2019e Adj. EBITDA FY 2019e* 4,910 € 420 € 35 Shaping FTE million million the future REVENUE BY COUNTRY Q1/2019 Spain 22.7% REVENUE BY SECTOR Q1/2019 of digital UK Italy 14.6% 20.5% Financial Services 82% business Germany 12.6% USA 8.

  4. Slide 4: Proven onshore-/nearshore delivery model (4,910 FTE)

    Shaping the future of digital business Proven onshore-/ nearshore delivery model (4,910 FTE) Approx. 50% of revenues generated onshore and 50% nearshore Canada (185) Germany (385) Americas Toronto Bonn Continental Eschborn/Frankfurt & UK USA (36) St. Georgen Europe Stuttgart Boston New York Belgium

  5. Slide 5: Key figures

    Shaping the future of digital business Key figures Revenue (€m) EBITDA adjusted (€m) 48 430 423 419 50 45 45 420 413 420 40 40 35 13 410 400 30 390 380 374 35 20 370 360 10 350 340 0 2015 2016 2017 2018 2019e 2015 2016 2017 2018 2019e Effects from IFRS 16 Employees (FTE) EBT (€m) 6000 35 33 4,870 4,

  6. Slide 6: 30 biggest clients Q1/2019 – six new entries

    Shaping the Preliminary future of digital results FY 2018 business 30 biggest clients Q1/2019 – six new entries not disclosed Capital Markets Retail Banking Revenue by sector Insurance Banking 82% Others Insurance 11% Industry & Others Industry & 7% Others GFT GROUP May 2019 MINOR VARIANCES DUE TO R

  7. Slide 7: GFT share and shareholder structure

    Shaping the future of digital business GFT share and shareholder structure Shareholder structure GFT share indexed and in EUR Ulrich Dietz 26.4% Maria Dietz in % in € 12/29/2017 07/05/2019 Free float €13.05 €8.23 140 16 64.0% 9.6% 120 14 12 100 10 Dividend per share in Cent (for financial year) 80 8

  8. Slide 8: Agenda

    Shaping the future of digital business 1. GFT at a glance Agenda 2. GFT business model 3. Financial results Q1/2019 4. Outlook GFT GROUP May 2019 8

  9. Slide 9: Business areas of GFT inside the banks

    Shaping the future of digital business Das Raster muss Business areas of GFT Sun deck Johannes noch inside the banks Innovation  Approx 10finetunen, kann man % of ITS budget Software Engineering transparenter Sun deck gestalten. New Tech 5% Tween deck Risk & Compliance projects front office New Tec

  10. Slide 10: IT technology meets client business challenges

    Shaping the future of digital business IT technology meets client business challenges Regulation Fraud Multi- New Customer Services channel markets centricity Digitalisation Data mgmt New Time competitors Legacy to BANKING New Connec systems market INDUSTRY channels -tivity Backend INSURANCE Brexit

  11. Slide 11: GFT Partner for Innovation and Transformation

    Shaping the future of digital business GFT Partner for Innovation and Transformation Cloud Design & Disruptive Innovation Open Banking Automation Technologies INNOVATION TRANSFORMATION Platform Data Regulatory & Cloud Engineering Engineering Compliance Engineering Services GFT GROUP May 2019 11

  12. Slide 12: Accelerating growth in exponential cloud technology with Google

    Shaping the Outlook future of digital business Accelerating growth in exponential cloud technology with Google & GFT a Premier Google Cloud partner  Preferred partner in financial services  Strategic investments to strengthen relationship with Google:  Continuous build up of talent and sales team

  13. Slide 13: Creating win-win with Guidewire expansion in Europe

    Shaping the Outlook future of digital business Creating win-win with Guidewire & expansion in Europe 128 Acquisition of Canadian V-NEO, leading Guidewire TRAINED specialist ENGINEERS in 2018  Guidewire as a top ranked IT-solution for digitalising of insurance sector  Strategic investments to stren

  14. Slide 14: Advance invoice lending with use of blockchain

    Shaping the future of digital business Advance invoice lending with use of blockchain Blockchain  Risk for the lender when a fraudulent customer tries to obtain credit for the same invoice at multiple banks  GFT was asked to develop a use case together with financial services partner; within 3 mon

  15. Slide 15: AI document processing

    Shaping the future of digital business AI document processing Artifical Intelligence  Banks are challenged to handle huge amounts of messages and unstructured scanned documents  Machine learning and deep learning algorithms automatically classify documents in pre-defined classes, supported by huma

  16. Slide 16: IoT projects for Trumpf

    Shaping the future of digital business IoT projects for Trumpf Industry 4.0  To increase capacity with agile and flexible measures as well as the improvement of usability and time to market are the ratio behind the IoT projects with our industrial client Trumpf  GFT developed a high-level-strategy

  17. Slide 17: Agenda

    Shaping the future of digital business 1. GFT at a glance Agenda 2. GFT business model 3. Financial results Q1/2019 4. Outlook GFT GROUP May 2019 17

  18. Slide 18: Highlights in the first quarter 2019

    Shaping the future of digital business Highlights in the first quarter 2019  Further expansion of client and sector diversification  19% revenue growth without top-2 clients*  Revenue share of insurance business amounts to 11%  Revenue slightly below prior-year quarter  Adjusted EBITDA up by 11

  19. Slide 19: Key figures

    Shaping the Preliminary future of digital results FY 2018 business Key figures in €m Q1/2019 Q1/2018 ∆%  Revenue decreased slightly by -1% (organic -7%) Revenue 105.72 106.99 -1% Revenue contribution of V-NEO €5.88m Revenue w/o V-NEO 99.84 106.99 -7%  Increase in EBITDA adjusted by 11% shaped by p

  20. Slide 20: Revenue and EBITDA adjusted by quarter (in €m)

    Shaping the Preliminary future of digital results FY 2018 business Revenue and EBITDA adjusted by quarter (in €m) Revenue EBITDA* adjusted 111.10 106.67 106.99 105.72 104.17 103.76 102.29 11.02 10.89 11.16 10.20 10.05 10.44 98.75 8.69 8.30 3.63 97.91 5.46 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4

  21. Slide 21: Revenue by segment

    Shaping the Preliminary future of digital results FY 2018 business Revenue by segment Revenue in €m Growth rates Q1/2019 Q1/2018 Organic M&A FX Total Americas & UK 49.88 47.90 -9% 12% 1% 4% Continental Europe 55.71 58.98 -6% 0% 0% -6% Others 0.13 0.11 n/a n/a n/a 19% GFT Group 105.72 106.99 -7% 5% 1

  22. Slide 22: Revenue by segment for top-2 clients

    Shaping the Preliminary future of digital results FY 2018 business Revenue by segment for top-2 clients in €m Revenue ∆% Q1/2019 Q1/2018 Americas & UK Top-2 clients 16.55 26.14 -37% Other clients 33.33 21.76 53% Total 49.88 47.90 4% Continental Europe Top-2 clients 18.00 21.05 -15% Other clients 37.

  23. Slide 23: EBITDA adjusted, EBITDA and EBT by segment

    Shaping the Preliminary future of digital results FY 2018 business EBITDA adjusted, EBITDA and EBT by segment in €m EBITDA adjusted* EBITDA EBT Q1/2019 Q1/2018 ∆% Q1/2019 Q1/2018 ∆% Q1/2019 Q1/2018 ∆% Americas & UK 2.67 3.37 -21% 1.79 3.37 -47% -0.30 1.89 < -100% Continental 8.99 6.73 33% 8.99 6.73

  24. Slide 24: Revenue by country (in €m)

    Shaping the future of digital business Revenue by country (in €m) Q1/2019 ∆% Q1/2018 24.02 Spain 1% 23.84 2% 2% 4% 21.71 United Kingdom -23% 28.13 3% 3% 3% 5% 4% 23% 15.50 Italy 8% 14.30 22% 7% 11% 13.36 Germany -16% 15.97 9% 9.20 USA -18% 11.28 15% 20% 13% 7.11 Brazil 31% 5.43 26% 15% 13% 3.89 Cana

  25. Slide 25: Detailed profit & loss statement (in €m)

    Shaping the future of digital business Detailed profit & loss statement (in €m) Q1/2019 Q1/2018 ∆%  Revenue with organic decrease by 7% Revenues 105.72 106.99 -1%  Share of cost of purchased services at 11% of revenue (Q1/2018: 13%) Other operating income 1.96 0.66 197%  Increased personnel expen

  26. Slide 26: Cash flow analysis (in €m)

    Shaping the Preliminary future of digital results FY 2018 business Cash flow analysis (in €m) 31/12/2018 Q1/2019 31/03/2019  Solid financing structure: not drawn credit facilities in the amount of €48.83m (Q1/2018: €78.15m). Net cash at €52.01m Net Cash Financial Cash Operating Financing Investment

  27. Slide 27: Balance sheet (in €m)

    Shaping the future of digital business Balance sheet (in €m) Assets Equity and liabilities Increase in equity by €3.69m driven by Growth of balance sheet total by net income in the amount of €2.71m as €44.61m largely driven by initial well as positive effects from currency application of IFRS 16 tra

  28. Slide 28: Employees by country (FTE)

    Shaping the Preliminary future of digital results FY 2018 business Employees by country (FTE) 5000 4,860 4,875 4,910 4,735 4,697 196 195 202 208 198 142 142 141 4500 146 141 164 179 185  Increase of number of employees against prior-year 186 218 221 226 279 comparable (31/03/2018) due to V-NEO acqu

  29. Slide 29: Agenda

    Shaping the future of digital business 1. GFT at a glance Agenda 2. GFT business model 3. Financial results Q1/2019 4. Outlook GFT GROUP May 2019 29

  30. Slide 30: Banking and Securities IT Spending Forecast

    Shaping the Backup future of digital business Banking and Securities IT Spending Forecast CAGR 674.4 2018-2022 645.5 32.8 619.5 597.5 32.8 109.3 Data Center Systems 0.9% 573.7 32.8 108.4 32.9 31.3 107.9 36.6 107.3 Telecom Services 0.6% 107.0 36.3 35.6 33.9 32.3 Devices 0.7% 103.4 95.4 Software 4.2%

  31. Slide 31: Development of exponential technologies at GFT

    Shaping the Outlook future of digital business Development of exponential technologies at GFT Stage I Stage II Stage III Artificial Data Blockchain Cloud DevOps Intelligence Analytics Revenue €1 m €2 m €10 m €48 m €37 m FY 2018 Growth FY 2019e DEGREE OF MATURITY GFT GROUP May 2019 MINOR VARIANCES DU

  32. Slide 32: Outlook FY 2019 (in €m)

    Shaping the Outlook future of digital business Outlook FY 2019 (in €m) Revenue EBITDA adjusted* EBITDA EBT +2% -12%/ +21% -12% / +23% -20% 423 419 413 420 48 46 13 13 46.8 39.7 37.5 35.4 35 33.4 33 22.6 31.6 17.4 16.1 18 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

  33. Slide 33: Backup

    Backup

  34. Slide 34: Revenue for top-2 clients in FY 2019

    Shaping the Outlook future of digital business Revenue for top-2 clients in FY 2019* Revenue ∆% ∆% in €m 2019 2018 2017 2019/2018 2019/2017 Americas & UK Top-2 Clients 56.00 84.79 114.34 -34% -51% Other Clients 140.00 98.66 81.05 42% 73% Top-2 Clients 58.00 79.56 76.34 -27% -24% Continental Europe O

  35. Slide 35: Split of operative and M&A Effects

    Shaping the future of digital business Split of operative and M&A Effects Q1/2019 Q1/2018 in €m GFT stand GFT stand V-NEO GFT Total GFT Total alone alone EBITDA adjusted 10.11 1.05 11.16 10.05 10.05 M&A earn-out & retention 0.00 -0.83 -0.83 0.00 0.00 M&A consult & integrate 0.00 0.00 0.00 0.00 0.00

  36. Slide 36: Effects after initial application of IFRS 16

    Shaping the future of digital business Effects after initial application of IFRS 16 Q1/2019 2019 expected in m€ after IFRS 16 adjustment before IFRS 16 after IFRS 16 adjustment before IFRS 16 EBITDA adjusted 11.16 3.63 7.53 approx. 48 approx. 13 approx. 35 EBITDA 10.28 3.63 6.65 approx. 46 approx. 1

  37. Slide 37: Revenue and EBITDA development

    Shaping the future of digital business Revenue and EBITDA development Revenue in €m EBITDA adjusted in €m GFT GFT Italy (2013) 47 GFT Rule (2014) Adesis (2015) 45 Habber Tec BR (2016) V-NEO (2018) 48 40 CAGR 2009-2019 (total): +15% 423 419 413 420 CAGR 2009-2019: +17% 35 13 374 33 (without IFRS 16 e

  38. Slide 38: Peer group (limited comparability – not focused on financial sector)

    Shaping the future of digital business Peer group (limited comparability – not focused on financial sector) Company LC Price MC P/E EV / Sales EV / EBITDA in LC in LC m 19e 20e 19e 20e 19e 20e European IT Services Capgemini SE EUR 104.60 17,498.9 16.3x 14.8x 1.3x 1.3x 9.4x 8.7x Devoteam SA EUR 101.0

  39. Slide 39: Shaping the future of digital business

    Shaping the future of digital business GFT Technologies SE GFT Technologies SE Dr Jochen Ruetz Karl Kompe CFO Investor Relations Manager Schelmenwasenstraße 34 Schelmenwasenstraße 34 70567 Stuttgart 70567 Stuttgart T +49 711 62042-422 T +49 711 62042-323 [email protected] [email protected] May 2

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