Proact It Group Ab · OMXSTO:PACT
Proact It Group Ab — Q2 2024 Earnings Presentation
20 slides from Proact It Group Ab's earnings presentation, Jul 12, 2024
Slide 1: Proact IT Group Quarterly presentation Q2 2024
Proact IT Group Quarterly presentation Q2 2024 12 July 2024
Slide 2: Agenda
Agenda • Proact introduction • Proact’s market • Quarterly highlights • Financial results • Summary Jonas Hasselberg Noora Jayasekara CEO and President CFO
Slide 3: Proact is a leading IT expert helping customers secure business critical data
Proact is a leading IT expert helping customers secure business critical data via world-class hybrid cloud solutions Proact introduction Proact in brief Geographical footprint Revenue and EBITA development (SEKm) • Founded in 1994, Proact has secured business critical data & pushed the Revenue limit
Slide 4: Proact is present in Northern Europe across 4 Business Units
Proact is present in Northern Europe distributed across 4 Business Units; Hybrid cloud services through our 4 main delivery HUBs Proact geographical presence and business units NOBA UK • c. SEK 2,620m revenue • c. SEK 660m revenue • 320 employees • 250 employees • 100+ Sales employees • 70+ Sales em
Slide 5: We offer best-in-class services across the cloud journey
We offer best-in-class services; Our broad offering enable us to support our customers wherever they are in their cloud journey Proact offering 9% 23% Revenue streams1 56% 12% Systems Support services Managed Cloud Services Consulting services Independent provider and value- Premium support for the
Slide 6: Proact is well-positioned in an attractive growing market
Proact is well-positioned in an attractive growing market, with trends such as Cybersecurity and AI driving the demand for data and IT solutions Market trends and development Strong drivers and favourable trends Digital transformation, AI Sustainability and Increased demand for Information security
Slide 7: We provide mission-critical services to customers across all industry verticals
We provide mission-critical services to customers across all industry verticals Selected Proact customer’s mission-critical use cases Delivery Route Digital Patient Records SaaS Optimization AI Automated Rapid Application Cyber protection and Redaction Development Disaster Recovery
Slide 8: 2024 Q2 Highlights
2024 Q2 Highlights Quarterly highlights • Solid growth, good profitability and a strong cash flow in Q2 Revenue Annualized recurring revenue • Positive cash generation and strong balance sheet after payout 1,272 SEKm 1,771 SEKm (+5.8%) of dividend and share buy-backs. (+5.4%) • New share buy-back pr
Slide 9: Q2 revenue of 1.272 SEKm, +5.8% primarily driven by Central
Q2 revenue of 1.272 SEKm, +5.8% primarily driven by Central Revenue development, 2023 Q2 – 2024 Q2 Revenue by revenue stream (SEKm) +5.8% • Total revenue increased +5.8% and +5.5% organically -6 1,272 15 0 8 • System sales increased with 717 SEKm (+8.2%), primarily due to continued good demands for
Slide 10: Growing share of recurring revenues at 11.2% CAGR
Growing share of recurring revenues at a 11.2% CAGR from 2020-2024 Q2, currently making up 36% of total revenue Annualized recurring revenue development, 2019-2024 Q2 SEKm 1,800 11.2% 1,748 1,771 1,552 • ARR grew by 5.4% compared to 2023 Q2, a 1,500 relative slowdown rate as compared to historic 1,3
Slide 11: Good EBITA development +18.8% compared to last year
Good EBITA development +18.8% compared to last year, with West and Central being the largest contributors EBITA development, 2023 Q2 – 2024 Q2 18.8% -3.9 96.7 8.0 6.3 81.4 3.3 1.5 7.6% 6.8% EBITA Q2 2023 Nordic & Baltics UK West Central Other EBITA Q2 2024 EBITA margin Note: Other incl. currency adj
Slide 12: Net cash increased after dividend and share buy-back
Net cash increased after dividend and share buy-back following a strong development, from 80 SEKm last December to 122 SEKm end of Q2 2024 Net debt development, Q2 2024 vs Q4 2023 (SEKm) Whereof 550 Whereof 616 SEKm cash, SEKm cash, 220 -40 227 SEKm interest bearing SEKm interest 5 -17 debt and 266
Slide 13: Positive cash flow generation from operations
Positive cash flow generation from operations, enabling investments as well as dividend Cash generation, accumulated per year, 2020-2024 Q2 (SEKm) 532 468 454 304 292 234 203 191 168 159 149 104 90 48 38 30 -30 -56 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024
Slide 14: Continued strong EBITA margin in Nordic & Baltic
Continued strong EBITA margin in Nordic & Baltic Business Unit deep-dive: Nordic & Baltics Nordic & Baltics Financial development Comments SEKm Q2 2024 Q2 2023 Change (%) • Total revenue unchanged, up +0.3% Revenue 649 649 ~0% organically 50% Share of total revenue1 EBITA 58 56 2.7% EBITA margin (%)
Slide 15: Strengthened EBITA-margin in UK
Strengthened EBITA-margin in UK Business Unit deep-dive: UK UK Financial development Comments SEKm Q2 2024 Q2 2023 Change (%) • Total revenue decreased -2.3% and -4.7% Revenue 178 183 -2.3% organically 15% Share of total revenue1 EBITA 12 9 36.5% EBITA margin (%) 6.9% 4.9% 2.0 p.p. • System business
Slide 16: Strengthened EBITA-margin also in West
Strengthened EBITA-margin also in West with further room for improvement Business Unit deep-dive: West West Financial development Comments SEKm Q2 2024 Q2 2023 Change (%) • Total revenue unchanged and down - Revenue 205 205 -0.2% 0.7% organically 19% Share of total revenue1 EBITA 7 1 899.4% EBITA ma
Slide 17: Strong revenue growth in Central due to System business
Strong revenue growth in Central due to System business Business Unit deep-dive: Central Central Financial development Comments SEKm Q2 2024 Q2 2023 Change (%) • Total revenue increased +42.2% and +42.0 Revenue 265 187 42.2% organically 17% Share of total revenue1 EBITA 18 10 83.7% EBITA margin (%)
Slide 18: Good performance against long-term financial targets
Good performance against long-term financial targets; Especially strong leverage position Financial development and long-term financial targets Sales EBITA Leverage ROCE Dividends Sales growth per annum EBITA margin Net debt / EBITA Return on capital employed Dividends as share of profit after tax 1
Slide 19: Summary
Summary • Q2 revenue of 1.272 SEKm, up 5.8% • Good EBITA development +18.8% compared to last year landing at 97 SEKm • Solid financial position and strong cash flow • We are positive about the market development and our ability to meet customer needs in hybrid cloud solutions, security and AI
Slide 20: Thank you
Thank you