Proact It Group Ab · OMXSTO:PACT
Proact It Group Ab — Q1 2023 Earnings Presentation
26 slides from Proact It Group Ab's earnings presentation, May 4, 2023
Slide 1: Summary Q1 2023
Summary Q1 2023 May 4, 2023 Jonas Hasselberg CEO and President [email protected] Linda Höljö CFO www.proact.eu [email protected]
Slide 2: Agenda
Agenda • Proact introduction • Proact’s market • Key developments • Financial results • Summary Jonas Hasselberg Linda Höljö CEO and President CFO
Slide 3: Who is Proact
Who is Proact FI NO 1994 Almost 3 decades of helping customers drive SE business value and growth – through IT EE LV DK LT 4 000 Medium and large enterprise UK NL customers across Europe BE DE CZ 4 900 Million SEK turnover with stable finances. Listed on Nasdaq Stockholm since 1999 1 200 Employees w
Slide 4: Businesses across all industries are in a state of transformation
Businesses across all industries are in "state of transformation”. Data is the key to this transformation. The four defining growth trends in the market - Business: Focus on digital transformation and business innovation through IT - Technology: The use of hybrid cloud to increase speed, flexibility
Slide 5: Value to customers via our propositions
Value to customers via our propositions
Slide 6: Our hybrid-cloud model enables the best of the cloud worlds
Private Public Managed Our hybrid-cloud model enables the best of the cloud worlds On-premises infrastructure
Slide 7: The infrastructure sits in one of three places
The infrastructure sits in one of three places Customer data centre Hyper-scaler data centre Proact data centres
Slide 8: Private: Customer data centre, Hyper-scaler data centre
private Customer data centre Hyper-scaler data centre Proact data centres
Slide 9: Private hosted: Customer data centre
private hosted Customer data centre Hyper-scaler data centre Proact data centres
Slide 10: Private, hosted, public
private hosted public Customer data centre Hyper-scaler data centre Proact data centres
Slide 11: #ThePowerOfData
Faster digitalization Any & devops application. Anywhere. Self- service and automation Flexible & agile scalability Modern workspace Start utilising the advantages with Hybrid cloud private hosted public Customer data centre Hyper-scaler data centre Proact data centres #ThePowerOfData
Slide 12: Quarter 1 in brief
Quarter 1 in brief + 15% Revenue growth, 8% organic – TCV at 117 (122) MSEK + EBITA growth of 8.5% to 56.8 MSEK – Inflation impact on COGS and SG&A + 15% ARR growth to 1,596 MSEK – Cost-program initiated + Stable gross margins at 21.7% (20.9%)
Slide 13: Awards & partners
Awards & partners Partner voice of the Year vExpert of the Year EMEA Solution Partner of the Year
Slide 14: Financial development
Financial development
Slide 15: Income Statement – Highlights Q1 2023
Income Statement – Highlights Q1 2023 TOTAL REVENUE SYSTEM SALES SERVICES SALES GROWTH MSEK GROWTH MSEK GROWTH MSEK 15% 1,220 14% 699 15% 519 Adj. EBITA PROFIT BEFORE TAX GROWTH MSEK Margin GROWTH MSEK Margin 8.5% 56.8 4.7% 0% 37.3 3.1%
Slide 16: Revenue development
Revenue development Revenues Key developments in the first quarter SEK m SEK m • Revenue growth 15% (8% organically) 1 500 5 000 • Continued good demand 1 125 3 750 • Acquisitions contributing 3% and currency effects 4% 750 2 500 • New cloud contracts of SEK 117 million (122) 375 1 250 • Services gr
Slide 17: Profitability development
Profitability development Adjusted EBITA SEK m Key developments in the first quarter SEK m • Adjusted EBITA of SEK 56.8 million (52.5) 120 350 300 • Increase by 8.5% 100 250 • Margin of 4.7% (4.9) 80 200 60 • Gross margin slightly increased 40 150 100 • Increased margins for systems 20 50 • Unchange
Slide 18: BU Nordics & Baltics
BU Nordics & Baltics Revenues SEK m SEK m Key developments in the first quarter 800 3 200 • Revenue growth 24% (22% organically) • Systems 27% (organically 25%) 600 2 400 • Strong systems market primarily in Sweden and Denmark, 400 1 600 with continued high demand. • Services 16% (organically 14%),
Slide 19: BU UK
BU UK Revenues SEK m SEK m Key developments in the first quarter 240 800 • Revenue decreased with 25% (25% organically) • Systems decreased 45% (organically 45%) primarily due to 180 600 longer sales cycles • Services increased 5% (organically 4%) 120 400 • Growth in cloud services and consulting se
Slide 20: BU West
BU West Revenues SEK m SEK m Key developments in the first quarter • Revenue growth 14% (7% organically) 250 1 000 • Systems increasing 29% (20% organically) with continued 200 750 good demand 150 • Services increasing 9% (2% organically) 500 • Support services and cloud services showing high growth
Slide 21: BU Central
BU Central Revenues SEK m SEK m Key developments in the first quarter • Revenue growth by 41% (organically 16%) 240 1 000 • Systems 38% (organically 24%) 180 750 • Services 43% (organically 6%) • Acquisitions of sepago (Jul 2022) contributing to revenues 120 500 • Strong organic systems growth with
Slide 22: Cash flow in Q1
Cash flow in Q1 • Positive cash-flow from current operations before Liquid Funds December 31, 2022 506 change in working capital Cash-flow from current operations 30 • Negative change in working capital is mainly related to Current operations 90 decreased accounts payables and operating payables, Ch
Slide 23: Balance sheet
Balance sheet 2023 2022 • Equity ratio of 24% (MSEK) Mar 31 Mar 31 • Cash position of SEK 501 million Total Assets 3,977 3,508 whereof Goodwill 995 826 • Net debt, including leasing liabilities of SEK whereof Intangible fixed assets 220 216 249 million, inline with March 2022, as a whereof Accounts
Slide 24: Financial goals
SALES GROWTH FINANCIAL TARGET OUTCOME SEK 4 913 million in sales rolling 12 months GOALS >10% 32.9% Rolling 12 months EBITA MARGIN TARGET OUTCOME* Minor decrease from 6.6% FY2022 8% 6.5% NET DEBT/EBITDA TARGET OUTCOME* <2 0.51 Significantly better than target ROCE TARGET OUTCOME In line with FY2022
Slide 25: Summary
Summary • Continued high total and organic revenue growth • Continued growth in Annualized Recurring Revenue (ARR) to 1,596 MSEK • 1,384 MSEK in Q1 2022 • 1,552 MSEK in Q4 2022 • Cost program initiated to increase efficiency
Slide 26: Thank you
Thank you www.proact.eu