Exclusive Networks SA — Q1 2023 Earnings Presentation
20 slides from Exclusive Networks SA's earnings presentation, May 4, 2023
Slide 1: Exclusive Networks Q1 2023 Earnings call
#WeAreExclusive Exclusive Networks Q1 2023 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: Business Review
#WeAreExclusive Business Review Jesper Trolle CEO
Slide 4: Q1 2023 Highlights
Q1 2023 Highlights #WeAreExclusive VISIBLE & DIVERSIFIED SCALE Market Opportunity PORTFOLIO 126% Q1-23 net vendor 119% in retention rate3 €1,180 m, up 28%1 ~$820m Q1-22 In Q1-23 Gross Sales additional SAM2 opportunity 123% Q1-23 net customer 116% in retention rate3 Q1-22 • Excellent start to 2023, b
Slide 5: Continuously grow our addressable market opportunity, increasing our SAM by close to $1b
Continuously grow our addressable market opportunity, increasing our SAM by close to $1b #WeAreExclusive Geographic expansion signed with 4 existing 2 new vendors added to our portfolio vendors ATC Expansion in Evolving our vendor Portfolio: Canada Expansion in France Expansion into Cybersecurity Ri
Slide 6: Unique positioning in cloud business
Unique positioning in cloud business Cloud business remains a key accelerator in the growth #WeAreExclusive CLOUD-BASED SALES NUMBER OF PARTNERS ON NUMBER OF TRANSACTIONS ON €m + 23% +86% +160% Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23 1. Year over year growth of cloud-based business 6
Slide 7: Constantly seeking complementary services in the most innovative segments
Constantly seeking complementary services in the most innovative segments Channel Pentest Service #WeAreExclusive Why Pentest ? Penetration test, known as a Pentest or ethical hacking, is an authorized simulated cyberattack on a computer system, performed to evaluate the security of the system. Clie
Slide 8: Benefitting from a strong positioning in all innovative and booming segments
Benefitting from a strong positioning in all innovative and booming segments Our diversification enables durable and balanced growth #WeAreExclusive Top Tier Cybersecurity segments growth (%, 12 months rolling) 1 Market Growth Exclusive Networks 66.1% 59.1% 49.5% 43.6% 40.4% 41.3% 37.0% 32.1% 28.6%
Slide 9: Financial Review
#WeAreExclusive Financial Review Nathalie Bühnemann CFO
Slide 10: Q1 2023 Gross Sales drivers
Q1 2023 Gross Sales drivers Growth driven by our strong and diversified vendors portfolio Q1 2023 GROSS SALES Q1 2023 DRIVERS OF GROWTH €m Contribution to Gross Sales growth(1) €m 11,180 180 +28% +24% +4% 1,180 920 734 Q1 2021 Q1 2022 Q1 2023 Same Vendors, Vendor Q1 2022 Same Geographies Expansion Q
Slide 11: Q1 2023 Gross Sales: Double digit performance in all regions
Q1 2023 Gross Sales: Double digit performance in all regions Q1 2023 GROSS SALES BY REGION €m +29% +27% 925 730 • Continued demand allowing to maintain a EMEA healthy backlog • Strategic vendors driving up the activity Q1 2022 Q1 2023 +45% • Sustained demand and continued Americas 140 93 expansion f
Slide 12: Continued momentum in Q1 2023 in all regions
Continued momentum in Q1 2023 in all regions Large deals contribute to our growth, especially in Americas Gross Sales breakdown by geography Gross Sales breakdown by Deal Size1 APAC (-1 Pt) Deals > €1m (+2 Pts) 10% 13% Americas (+1 Pt) 20% Deals <€20k (-1Pt) 11% Deals €500k - €1m 12% 11% (=) 8% 21%
Slide 13: Key takeaways
Key takeaways Strong start to the year, outperforming the Cybersecurity market Double digit growth in Cybersecurity market expected in years to come Confidence in meeting full year guidance, despite visible slowdown and persistent uncertainty with macro-environment 13
Slide 14: Q&A
#WeAreExclusive Q&A We welcome any questions you may have
Slide 15: Appendix
#WeAreExclusive Appendix
Slide 16: Q1 2023 Revenue by region
#WeAreExclusive Q1 2023 Revenue by region Q1 2023 REVENUE Q1 2023 REVENUE BY REGION €m €m +26% +23% 698 567 893 EMEA Q1 2022 Q1 2023 712 +47% Americas +52% 106 70 Q1 2022 Q1 2023 APAC 90 76 Q1 2022 Q1 2023 % Constant Currency (1) % Reported Q1 2022 Q1 2023 % Growth (1) % Reported Growth 16
Slide 17: 2023 Outlook
2023 Outlook #WeAreExclusive 2023 Outlook (Feb 28, 2023) Gross Sales Above €5,150m Net Margin €450- €465m Adj. EBIT €172 – €178m Adj. Operating FCF 80% of Adj. EBITDA 17
Slide 18: From gross sales to revenue
From gross sales to revenue #WeAreExclusive Gross Sales to revenue reconciliation (EURm) Q1-22 Q1-23 Gross Sales 920.3 1,179.8 Agent vs Principal (Mainly Vendors’ Support) – IFRS 15 (208.2) (286.5) Revenue 712.1 893.3 18
Slide 19: Glossary
Glossary • Gross Definition Years on a gross Sales represent revenue recognized by the Group Segments basis Reporting #WeAreExclusive K Gross Sales for each revenue stream • Net of returns, discount and rebates • IFRS revenue I Revenue • Support & Maintenance margin accounted for revenue • Net of re
Slide 20: Thank You
#WeAreExclusive Thank You Investors & Analysts Hacene BOUMENDJEL , Head of IR [email protected]