Softwareone Holding Ltd. · SIX:SWON
Softwareone — Non-Deal Roadshow (February 2025)
37 slides from Softwareone's roadshow presentation, Feb 26, 2025
Slide 1: Combining two leading global providers of software and cloud solutions
Combining two leading global providers of software and cloud solutions Oslo, 26 February 2025
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA OR JAPAN, OR ANY OTHER JURISDICTION IN WHICH THE DI
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) Forward-looking statements This Presentation may contain certain forward-looking statements relating to the Company and/or the Group and its future business, development and economic performance. Forward-looking statements concern future circumstances and results and other statem
Slide 4: SoftwareOne at a glance
SoftwareOne at a glance Based on FY 2024 CHF 11.4bn GTM Group gross billings Decisive action to resolve Combining two leading sales execution issues software & cloud providers and drive portfolio focus CHF CHF CHF 1bn 70m 80-100m Revenue Targeted annualised Run-rate cost synergies(1) cost savings by
Slide 5: Our journey since 2000 until today
Our journey since 2000 until today Next chapter of profitable growth (2024–today) Building scalable model (2019–2023) • Launch of GTM transformation Accelerated growth • New Board of Directors (2000–2018) • Comparex acquisition creates a • Appointment of Raphael Erb global software & cloud leader as
Slide 6: Uniquely positioned to capitalise on fast-growing market opportunity
Uniquely positioned to capitalise on fast-growing market opportunity Serviceable addressable market(1) Well-positioned to capitalise on mega-trends USDbn, % CAGR +17% Public cloud adoption continues to accelerate 149 30 Increasing focus on managing cloud spend 93 +15%(2) 19 Data & AI revolution 120
Slide 7: Our competitive differentiation
Our competitive differentiation Unparalleled Large client base World-class Scalable Diverse, global presence with cross-sell advisory standardised qualified talent opportunity; deep capabilities operations base customer insights 7 Confidential
Slide 8: Scalable global and local operating model
Scalable global and local operating model Revenue by region CHFm, based on FY2024 60+ % of total revenue Countries REMEA DACH ● NORAM 299 ● 301 4 ●● ● 146 30% ● ● 30% Digital sales hubs 14% ●● ● 13 ●● ●● Service delivery centres ● ● ●● APAC 3 Financial shared service centres ● LATAM ● 163 ● Digital
Slide 9: Focus on lead business, expanding to high-growth segments
Focus on lead business, expanding to high-growth segments Fast-tracking Accelerating data & AI adoption the cloud journey • Data foundations and modernisation • Application modernisation • Data capabilities • Application development • Automated data management • DevOps • Advanced analytics and AI •
Slide 10: Extensive partnerships and prioritised solution areas
Extensive partnerships and prioritised solution areas ITAM / FinOps ITAM / FinOps Infrastructure Infrastructure Security Security Applications Content Management 10 Confidential
Slide 11: Top priorities achieved in Q4 2024
Top priorities achieved in Q4 2024 Action taken to address GTM-related sales execution issues and restore growth trajectory Over-achievement of cost reduction programme, with CHF 58 million of annualised savings by year-end 2024 Empowerment of regional organisations and front-line, with new leadersh
Slide 12: Over-achievement of new cost reduction programme, target raised to CHF 70 million
Over-achievement of new cost reduction programme, with target raised to CHF 70 million by Q1 2025 Annualised cost savings • Programme geared Cumulative, CHFm towards restoring 70 customer-centricity and agility to drive sustainable Target raised to profitable growth 58 CHF 70 million by Q1 2025 • Me
Slide 13: Actively positioning our portfolio to support customer needs
Actively positioning our portfolio to support customer needs, with alignment to profit drivers Key opportunities Strategic focus / key wins Partner incentive shifts • Driving ecosystem revenue across • Public Sector – OCRE Framework Cloud consumption-based hyperscalers and prioritised partners agree
Slide 14: Deepened partnerships with fast-growing strategic vendors
Deepened partnerships with fast-growing strategic vendors • Recently announced multi-year ITAM • Strategic priority based on multi-cloud strategy • Global Red Hat Premier Partner since partnership, helping customers optimise IT January 2025 • AWS Cloud Services revenue growth >35% investments and ac
Slide 15: Track record of growth, stable margins and attractive returns
Track record of growth, stable margins and attractive returns 450.0 400.0 Revenues Adj. EBITDA DPS & payout ratio 350.0 CHFm, CAGR (% YoY ccy) CHFm, margin (%) CHF, payout ratio (%) 300.0 24.5% 24.5% 24.3% 22.0% 46.5% 47.3% 50.5% 66.0% 7.1% 1200 240.4 245.2 0.36 1017.0 250.0 0.35 982.8 1,010.9 223.4
Slide 16: Continued momentum in Services
Continued momentum in Services Software & Cloud Marketplace Software & Cloud Services Revenue, CHFm, % YoY growth (ccy) Revenue, CHFm, % YoY growth (ccy) (0.8)% +7.3% 549.7 484.6 532.3 461.2 FY 2023 FY 2024 FY 2023 FY 2024 • Microsoft gross billings(1) at CHF 19.3 billion in 2024, up 6.5% • Growth d
Slide 17: Continued solid cash generation
Continued solid cash generation Capital expenditure Net working capital(1) Cash conversion(2) CHFm ~80-85 CHFm % 85 74 2022 2023 2024 2025-2026 ~ 73% ~70% 64 60% 55% (158.3) (160.9) (155.6) Stable 2022 2023 2024 2025-2026 2022 2023 2024 2025-2026 Capex Capitalised leases • System upgrades with impro
Slide 18: Standalone 2025 and mid-term guidance
Standalone 2025 and mid-term guidance • Gradually improving 2025 2026 trajectory through 2025, Guidance as benefits of GTM transformation come through Revenue growth(1) 2-4% Double-digit • Revenue guidance for 2025 reflects 2-3% impact Adj. EBITDA margin 24-26% Approaching 27% from change in Microso
Slide 19: Combination of SoftwareOne and Crayon
Combination of SoftwareOne and Crayon Raphael Erb CEO 19 Confidential
Slide 20: Compelling strategic and financial rationale
Compelling strategic and financial rationale 01 Highly complementary geographical footprint, customer base and offering 02 Customer-centric business models with a large marketplace and differentiated service offering 03 Uniquely positioned to capitalise on fast-growing USD 150 billion market 04 Incr
Slide 21: Highly complementary geographic presence with extensive global reach
Highly complementary geographic presence with extensive global reach Revenue by region CHFm, % of total combined revenue(1) Based on LTM to Q3 2024 NORDICS ~15% REST OF EMEA ~25% DACH ~20% NORAM ~15% APAC(2) ~20% SoftwareOne contribution Crayon contribution LATAM ~5% (1) Conversion from NOK to CHF b
Slide 22: Strong fit to create an enhanced offering
Strong fit to create an enhanced offering Portfolio breakdown Based on LTM revenue to Q3 2024 • Large, global marketplace with SoftwareOne Crayon Indicative combination improved breadth and depth • Strengthened combined value proposition in Cloud Services, ITAM / SAM / Finops, Data & AI, and securit
Slide 23: Aligned go-to-market model with differentiated services offering
Aligned go-to-market model with differentiated services offering Customer segment(1) Differentiated services • Strong customer complementarity, with SoftwareOne leading in • Commercial Advisory Enterprise segment and Crayon • Digital Supply Chain strong in Corporate / SME / Public • Custom AI soluti
Slide 24: Diverse and dedicated teams of industry experts with shared values
Diverse and dedicated teams of industry experts with shared values and strong cultural alignment On a combined basis Pace Customer- focused ~13,000 Agility Integrity FTEs Employee satisfaction 70+ Discipline Speed Countries Passion 10k+ Quality Cloud certifications(1) 650+ Humble Data & AI experts 2
Slide 25: Accelerated growth and profitability driven by substantial tangible synergies
Accelerated growth and profitability driven by substantial tangible synergies Key synergy areas Expected phasing of cost synergy realisation % of run-rate target synergy amount • Access to expanded customer base and larger accounts given combined capabilities Revenue • Cross & upsell opportunities b
Slide 26: Transaction progressing according to plan
Transaction progressing according to plan Indicative transaction timetable Announcement Publication of Tender offer period SoftwareOne SoftwareOne Expected closing Norwegian prospectus (unless extended) EGM AGM ● ● ● ● ● Dec 2024 14 March 17 March 14 April 15 April 16 May June 2025 Recent updates •
Slide 27: Final remarks – value creation for all stakeholders
Final remarks – value creation for all stakeholders Shareholders Customers & partners Vendors Employees Highly strategic Global scale and critical Leading marketplace to Strong cultural transaction mass across markets access customers alignment Accelerated growth and Improved marketplace Qualified e
Slide 28: Appendix
Appendix Confidential
Slide 29: SoftwareOne and Crayon – transaction overview
SoftwareOne and Crayon – transaction overview Key highlights • SoftwareOne to launch a recommended voluntary offer for the acquisition of all outstanding shares in Crayon • Unanimous approval from Boards of Directors of both companies; pre-commitments from Crayon founding shareholders with 5% of sha
Slide 30: 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 31: Action taken to resolve GTM-related sales execution issues
Action taken to resolve GTM-related sales execution issues Implementation challenges Actions taken People • Redefinition of roles and • New regional leadership appointments reshuffling of client accounts • Quotas and incentives tailored to specific sales roles • Increased employee • Further onboardi
Slide 32: 2024 revenue growth at 3%, with adj. EBITDA margin at 22%
2024 revenue growth at 3%, with adj. EBITDA margin at 22% P&L summary(1) • Revenue up 2.9% YoY CHFm Q4 2024 % Δ Rep % Δ CCY(2) FY 2024 % Δ Rep % Δ CCY(2) ccy in 2024 Revenue • Q4 impacted by muted 250.3 (7.5)% (5.1)% 1,017.0 0.6% 2.9% budget flush and GTM- related sales execution Delivery costs (83.
Slide 33: Marketplace impacted by muted year-end budget flush, with momentum in Services
Marketplace impacted by muted year-end budget flush, with continued momentum in Services Business line P&L Corporate costs • Weak Q4 across both CHFm Software & Cloud Marketplace Software & Cloud Services Microsoft and other % Δ CCY(1) FY 2024 % Δ CCY(1) ISVs driven by muted FY 2024 % Δ CCY(1) FY 20
Slide 34: Reported and adjusted EBITDA to converge, with extraordinary costs to minimise
Reported and adjusted EBITDA to converge, with extraordinary costs to minimise CHFm FY 2024 FY2023 Reported EBITDA 116.0 161.7 • Adjustments driven by Impact of change in revenue recognition of Microsoft Enterprise Agreements (0.5) (0.2) restructuring in 2023 and 2024 Integration, M&A and earn-out e
Slide 35: Sustained operating cash conversion
Sustained operating cash conversion Cash conversion Capex breakdown CHFm, LTM (to 31 December 2024) CHFm, excluding capitalised leases 223.4 (17.0) 68.0 (68.0) 60%(1) (5.4) 32.2 Internal IT & systems 133.0 12.1 Services delivery 11.9 Marketplace Platform 11.8 Other 2024 Capitalised Capex Change in C
Slide 36: Net cash position driven by returns to shareholders and investments
Net cash position driven by returns to shareholders and investments Net cash development CHFm (72.9) (44.2) (90.1) (55.2) (44.2) Share buyback Net cash Cash Taxes, financing M&A and Restructuring, Net cash prior Dividend Share Net cash 31 Dec 2023 conversion expenses and earn-out incl disc. to retur
Slide 37: Stable working capital development
Stable working capital development Net working capital Net working capital development • Working capital position CHFm, 31 December 2024 CHFm broadly in line with prior year 31 Dec 2023 30 Jun 2024 31 Dec 2024 Trade receivables 2’614.3 182.6 • Stable customer and vendor payment terms Prepayments, •
SoftwareOne Holding — Non-Deal Roadshow (February 2025) on 6ix