Sitowise Group Oyj · OMXHEX:SITOWS
Sitowise Group Oyj — Investor Day (June 2023)
14 slides from Sitowise Group Oyj's investor day presentation, June 2023
Slide 1: On a solid growth track
On a solid growth track HANNA MASALA CFO 30
Slide 2: Substantial growth in past years
Substantial growth in past years Strongest growth in Sweden and Digital Solutions 25 acquisitions M€ in 4 years 204 11 43 8 9 15 120 16 4 4 20181 Buildings Infra Sweden Digi 2022 Buildings Infra CAGR 5.7% 7.4% 63.4%2 18.3% Digital Solutions ’18-’22 Sweden 1 Without discontinued operations 2 Calculat
Slide 3: Balanced mix of different revenue sources
Balanced mix of different revenue sources The portion Net sales by Hourly based revenue of strategic Business Area approx. 2/3 of net sales growth areas Digi and Sweden 4% expected to 21% grow 2022 39% 32% 2022 net sales net sales 11% 204 M€ 204 M€ 64% 29% Recurring revenue target ~10% of Buildings
Slide 4: Pricing and personnel availability key topline drivers
Pricing and personnel availability key topline drivers Key topline drivers: 250 90% 91% 92% 92% 90% 100 204 200 179 184 80 165 Pricing and accurate 160 143 147 project hour 150 130 60 estimation 126 113 100 40 Pricing and sales Gross margin % excellence work 50 20 Net sales, M€ Gross Margin, M€ 0 0
Slide 5: High variety of projects in the order book
High variety of projects in the order Order book contains a wide range of projects… book Net sales development steadier than order book’s due to project mix impact > 4,000+ different clients 250 200 150 Duration ranging from 1 month to several years 100 50 0 Sizes from 1k€ to 16M€ (median size 16k€)
Slide 6: Personnel costs in major role, active management of the cost base
Personnel costs in major role, active management of the cost base Cost structure excluding D&A* Key cost drivers and mitigating factors M€ Materials and services • Subcontracting and other project related direct costs • Collective bargaining agreements Personnel costs • Employee wellbeing and traini
Slide 7: M&A principles give focus in target pipeline management
M&A principles give focus in target Way of working in acquisitions pipeline management Co-operation between the 1 Alignment with Sitowise strategy business and group experts 2 Conservative valuation, Attractive financial profile payment consisting of cash and own shares 3 Good cultural fit Relativel
Slide 8: Convia | Strong expertise in infra and construction
Convia | Strong expertise in infra and construction ~4M€ 19% Accelerating growth in Sweden Net sales EBITA margin Strong market entry within infrastructure Attractive position in bridge and ~35% 23 tunnel construction and maintenance Sales CAGR Employees (L3Y) 37
Slide 9: Bitcomp | Digital systems pioneer of the forest sector
Bitcomp | Digital systems pioneer of the forest sector Expanding Digital Solutions business ~7M€ 11% More than double our SaaS Net sales EBITA margin business with scalable recurring revenue contracts Wide expertise on scalable AI ~30% 80 in asset management solutions Sales CAGR Employees Internatio
Slide 10: Strong operating cashflow
Strong operating cashflow Cash flow from operations Usage of cash Net debt and leverage M€ 31 39 3.1x 4 23 23 2.6x 2.6x 2.6x 25 24 24 19 3 3 2 14 29 1.4x 12 2 23 21 20 57 57 51 39 31 10 6 2 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Cash from operations before taxes O
Slide 11: Long-term financial targets
Long-term financial targets Growth Profitability Leverage Annual net sales growth of over Adjusted EBITA margin of at Net debt in relation to adjusted EBITDA 10%, including acquisitions least 12% should not exceed 2.5x, except temporarily in conjunction with acquisitions 14% 10.3% 2.4x Dividend poli
Slide 12: Margin increase driven by growth in attractive sub-segments and further operational efficiencies
Margin increase driven by growth in attractive sub-segments and further operational efficiencies Operational efficiencies M&A • Sales excellence Organic • Smartest ways to work growth • Cost efficiency • M&A aligned with our • Value from data ≥12% strategic priorities • Focus on accelerating 10.3% •
Slide 13: Q&A
Q&A H E I K KI H A A S M A A , C E O T A I J A L E H T OL A , E V P , H u m a n R e s o ur c e s HANNA MASALA, CFO 42
Slide 14: Break
Break 43