Proact It Group Ab · OMXSTO:PACT

Proact It Group Ab — Q4 2019 Earnings Presentation

18 slides from Proact It Group Ab's earnings presentation, Feb 6, 2020

  1. Slide 1: Summary Q4 2019

    Summary Q4 2019 6 February, 2020 Jonas Hasselberg, CEO and President [email protected] Jonas Persson, CFO [email protected]

  2. Slide 2: Agenda

    AGENDA  About Proact  Quarter in brief  Our value-add in the market  Key figures  Summary

  3. Slide 3: About Proact

    About Proact FI NO SE  Founded in 1994 EE LV DK  System and multi-cloud specialist LT NL UK  3 600 MSEK turnover BE DE CZ SK  Over 1000 employees at 37 offices  HQ in Stockholm, Sweden US  Four BU:s with service delivery hubs

  4. Slide 4: Quarter in brief

    Quarter in brief – Not reaching expectations + Cloud business growth: 16% – EBITA: 48.8 MSEK + New cloud contract value: 97 MSEK – Challenges in BU WEST + PeopleWare integration – Margin pressure in BU UK + EBITA growth in BU Nordics

  5. Slide 5: Market Overview

    MARKET OVERVIEW 58% sees IT as a business enabler Market developments: 57%  Market is growing sees business innovation as a top priority  Multi-cloud is the new normal x3.8  IT is hard “wallet share” for IT projects in the business  New opportunities and new buyers 66% Our business opportunity:

  6. Slide 6: Our differentiated value

    We understand our customer’s business OUR DIFFERENTIATED VALUE We are specialists We advice on We store We connect We protect We bring value your data strategy your data your data your data to your data Relevant portfolio of products and services PRIVATE CLOUD PUBLIC CLOUD ON PREMISE CONSULTING SOLU

  7. Slide 7: New Offering Case Study: Infrastructure for AI

    New Offering Case Study: Infrastructure for AI  Örebro University is a hub for Artificial Intelligence (AI) development in Sweden, with fifty AI researchers working with developing solutions and platforms within AI, robotics and autonomous systems. The university is heavily involved in the extensiv

  8. Slide 8: Numbers for Q4

    PROACT Numbers for Q4

  9. Slide 9: Key Q4 Messages

    Accelerated growth 280 MSEK Key Q4 Messages Cloud Revenue +48% Cloud Services total contract value 97 MSEK EBITA decline 48 . MSEK

  10. Slide 10: Income Statement Q4 2019

    Income Statement Q4 2019 (MSEK) System Sales Oct-Dec 2019 635.9 Oct-Dec 2018 670.9 Services 354.4 295.2 Other 0.6 0.9 Revenue 991.0 967.0 TOTAL REVENUE SYSTEM SALES SERVICES SALES Products and services -759.0 -751.3 Gross profit 231.9 215.7 GROWTH MSEK GROWTH MSEK GROWTH MSEK Gross margin 23.4% 22.3

  11. Slide 11: Income Statement January - December 2019

    Income Statement January - December 2019 (MSEK) System Sales Jan-Dec 2019 2,203.1 Jan-Dec 2018 2,174.6 Services 1,203.0 1,138.9 Other 1.8 4.2 Revenue 3,407.9 3,317.7 TOTAL REVENUE SYSTEM SALES SERVICES SALES Products and services -2,619.2 -2,525.5 Gross profit 788.6 792.2 GROWTH MSEK GROWTH MSEK GRO

  12. Slide 12: Revenue & EBITA in Q4 per Business Unit

    Revenue & EBITA in Q4 per Business Unit  Positive development in Cloud business with 48% 2019 2018 October - December October - December growth to 164 MSEK, organic growth of 16% Revenue EBITA Net Revenue EBITA Net  In Nordics revenue decreased by 6%, adjusted (MSEK) margin margin EBITA increased

  13. Slide 13: Revenue & EBITA January-December per Business Unit

    Revenue & EBITA January-December per Business Unit  Revenue growth in Nordics YTD of 9%, improved 2019 2018 EBITA margin due strong system sales January -December January –December  In UK EBITA margin decreased from 7.3% to 6.1% (MSEK) Revenue EBITA Net margin Revenue EBITA Net margin mainly due t

  14. Slide 14: Cash flow in Q4

    Cash flow in Q4  Positive change in working capital 128 (-39) MSEK after Liquid Funds September 30, 2019 217 a strong sprint in Nordics Cash-flow from current operations 209  Fixed assets; Proact Finance -10 MSEK Current operations 81 Change in working capital 128  Acquisition; PeopleWare -108 MS

  15. Slide 15: Cash flow January-December 2019

    Cash flow January-December 2019 Liquid Funds December 31, 2018 270  Positive change in working capital 63 (34) MSEK Cash-flow from current operations 330  Fixed assets; Proact Finance -48 MSEK Current operations 267  Repayment of Leasing Liabilities; -103 MSEK, IFRS16 Change in working capital 63

  16. Slide 16: Balance sheet

    Balance sheet (MSEK) 2019 Dec 31 2018 Dec 31 Total Assets 2,877 2,213 whereof Goodwill 516 393  Solidity of 18% including a negative impact from IFRS 16 of 302 MSEK, dropped due to acquisition of PeopleWare whereof Intangible fixed assets 93 70  Cash position of 373 MSEK whereof Accounts receivabl

  17. Slide 17: Financial Goals

    SALES GROWTH FINANCIAL TARGET OUTCOME 3 407 MSEK, incl. 63 MSEK from PeopleWare GOALS >10% +3% Rolling 12 months EBITA MARGIN TARGET OUTCOME* Adjusted for one-time costs 8% 4.9% NET DEBT/EBITDA TARGET OUTCOME IFRS16 impact of 302 MSEK <2 0.59 ROCE TARGET OUTCOME Impacted by IFRS 16 and one-time cost

  18. Slide 18: Summary

    Summary  Market opportunities remain positive  Challenges in BU West  Positive cloud development and strong Nordics  PeopleWare integration is according to plan

Proact IT Group — Q4 2019 Earnings Presentation on 6ix