Softwareone Holding Ltd. · SIX:SWON
Softwareone — Crayon Group — Q3 2024 Earnings Presentation
18 slides from Softwareone's earnings presentation, Nov 6, 2024
Slide 1: Quarterly Results Q3 2024
Quarterly Results Q3 2024 Melissa Mulholland, CEO Brede Huser, CFO 6th November 2024
Slide 2: Disclaimer
Q3 2024 Disclaimer The statements contained in this presentation may include forward-looking statements, such as statements of future expectations regarding the Company's results of operations, financial condition, liquidity, prospects, growth and strategies. These statements are based on the manage
Slide 3: Q3 Highlights
Q3 HIGHLIGHTS Significant profitability growth and strong working capital improvement Amounts in NOK Continued solid growth in a cautious market environment 1,435m Gross Profit +14% growth Strong profit expansion and record Q3 margin 17% Adj. EBITDA Margin 1 5 pp increase Working capital improvement
Slide 4: Strong growth in software and cloud and continued profit expansion
MARKET DYNAMICS Strong growth in software and cloud and continued profit expansion Software and Cloud Services +13% Gross Profit Gross Profit +21% MNOK MNOK 2 589 3 414 +7% 2 298 +18% 2 829 MNOK 609 567 809 685 Q323 Q324 LTM Q323 LTM Q324 Q323 Q324 LTM Q323 LTM Q324 EBITDA EBITDA Margin 1 45% 54% 50
Slide 5: Strong improvement in profitability
FINANCIAL REVIEW Strong improvement in profitability Q3 Gross Profit by business area Q3 Adj. EBITDA by business area NOK million NOK million 406 17 1 435 40 202 9 203 305 237 238 504 -250 SW & SW & SCE Consulting HQ/ Q3 2024 SW & SW & SCE Consulting HQ/ Q3 2024 Cloud Cloud Elim Cloud Cloud Elim Dir
Slide 6: Profit improvement across all regions
FINANCIAL REVIEW Profit improvement across all regions Q3 Gross Profit by market cluster Q3 Adj. EBITDA by market cluster NOK million NOK million 160 44 1 435 73 383 -8 238 30 -43 186 342 506 Nordics Europe APAC US HQ/Elim Q3 2024 Nordics Europe APAC US HQ/Elim Q3 2024 & MEA & MEA Growth EBITDA 37%
Slide 7: Microsoft incentive program continues to support growth
MARKET DYNAMICS Microsoft incentive program continues to support growth “With the increased demand for AI transformation, supported by ILLUSTRATIVE copilot, security and cloud migration, we have increased our partners´ incentives – both in general and in these areas. Incentives are at a record high
Slide 8: Deepening the relationship and collaboration with AWS
MARKET DYNAMICS Deepening the relationship and collaboration with AWS "As generative AI capabilities continue rapidly evolving, ensuring trust and compliance is paramount Crayon signs a four-year Strategic Collaboration Agreement with AWS, accelerating cloud adoption and cloud migration for Crayon f
Slide 9: Image recognition app helped Coca-Cola bottler identify 220,000 spare parts
DATA & AI SOLUTIONS Location: Greece Crayon’s image recognition app helped Industry: Manufacturing Coca-Cola bottler identify 220,000 spare parts After PoC and a phased roll-out, Coca-Cola HBC is planning to onboard the app across all its European and African bottling sites by mid-2025, with ROI ach
Slide 10: Financial Review
(@ Crayon Financial Review
Slide 11: Continued improvement in working capital – outlook upgraded
FINANCIAL REVIEW Continued improvement in working capital – outlook upgraded Net working capital Q3 2024 Net working capital over time NOK million NOK million 905 Accounts receivable 7,320 253 157 Accounts -121 -218 -132 payable -7,158 Trade working -1,121 -1,085 capital 162 -1,403 Q3 22 Q4 22 Q1 23
Slide 12: Profit and loss – Q3 2024
FINANCIAL REVIEW Profit and loss – Q3 2024 NOK million Q3 2024 Q3 2023 2023 2022 Gross Sales 11 508 9 568 49 077 38 761 Revenue 1 621 1 460 6 397 5 200 • EBITDA adjustments include NOK 6m in share- Cost of sales -186 -200 -735 -704 based compensations Gross profit 1 435 1 260 5 662 4 496 Operating e
Slide 13: Balance sheet – Q3 2024
FINANCIAL REVIEW Balance sheet – Q3 2024 Sep 30 Sep 30 Sep 30 Sep 30 Assets 2024 2023 Equity and liabilities 2024 2023 Goodwill 3 381 3 255 Shareholders' equity 2 899 2 729 Other intangible assets 627 674 Interest bearing liabilities 2 333 1 791 Deferred tax asset 155 287 Deferred tax liabilities 12
Slide 14: Robust financial position
FINANCIAL REVIEW Robust financial position Cash flow from operating activities NOK million 2,117 478 599 Cash flow from operations driven 69 158 97 by changes net working capital -497 -955 -1,286 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q324 LTM cash development NOK million -150 -342 Strong c
Slide 15: Outlook
2024 OUTLOOK Outlook LTM Q3 Medium 2023 2024 Comment 2024 term 15-17% 2024 outlook implies organic growth Gross Profit growth 26% 17.5% ~20% (18-20%) in line with medium-term outlook Gradual 19-20% Continuing growth while also improving Adj. EBITDA margin 1 16.2% 17.5% increase to (18-20%) profitabi
Slide 16: Key takeaways
(e/a) Key takeaways
Slide 17: Key takeaways
KEY TAKEAWAYS Key takeaways Uniquely positioned for long term sustainable growth Significant margin potential from scaling international businesses Continued focus on working capital and cash generation 17
Slide 18: Crayon Earnings Q3 2024 Q&A
CRAYON EARNINGS Q3 2024 Q&A 18