Transcription
Investor UpdateJanuary 2020
Important DisclosureTHIS COMMUNICATION IS PROVIDED FOR INFORMATION PURPOSES ONLY AND IS SUBJECT TO CHANGE. IT IS INDICATIVE, NOT BINDING AND WILL NOT BE UPDATEDThis communication and information included therein has been prepared solely by ALLGEIER SE (the Company), has not been verified independently and is provided for information purposes only andshould not be generally distributed directly or indirectly into or within the United States, Canada, Australia, Japan or the United Kingdom, or in any other jurisdiction where such distribution would beunlawful. Unless otherwise stated, the Company is the source of the information contained herein. For the purposes of this notice, the Presentation includes this document, its contents or any part of itand any related video or oral presentation, any question or answer session and any written or oral material discussed or distributed during the presentation meeting.Presentations are by their nature abbreviated information and cannot substitute for narrative information. In addition, the information herein is preliminary and is not comprehensive. Consistent withits purpose, this Presentation does not include all information that is material to evaluate the strengths and weaknesses as well as risks and opportunities of the Company.This communication may contain “forward-looking” information which may include, but is not limited to, projections, forecasts or estimates of cash flows, yields or return, scenario analyses and modelillustrations. Any forward-looking information is based upon certain assumptions about future events or conditions and is intended only to illustrate hypothetical results under those assumptions (notall of which are specified herein or can be ascertained at this time).The Company and its advisers and any of their respective affiliates, personally liable partners, directors, officers, employees, advisers or agents, shall accept no responsibility and have no liability to youor to any third parties, for the quality, accuracy, fairness, timeliness, continued availability or completeness of any data or calculations contained and/or referred to in this communication (or whetherany information has been omitted from the Presentation) or any other information relating to the Company, whether written, oral or in a visual or electronic form, and howsoever transmitted or madeavailable nor for any special, direct, indirect, incidental or consequential loss or damage which may be sustained because of the use of the information contained and/or referred to in thiscommunication or otherwise arising in connection with the information contained and/or referred to in this communication, provided that this exclusion of liability shall not exclude or limit any liabilityunder any law or regulation applicable to the Company or its advisers that may not be excluded or restricted.All information in this Presentation is current at the time of communication but may be subject to change in the future. The Company and its advisers disclaim any obligation to update or revise anystatements, in particular forward-looking statements, to reflect future events or developments.This Presentation does not constitute or form part of, and should not be construed as an offer or invitation or recommendation to, purchase or sell or subscribe for, or as any solicitation of any offer topurchase or subscribe for, any securities of the Company, in any jurisdiction. This Presentation is only directed at qualified investors in certain jurisdictions; in the member states of the EuropeanEconomic Area, this presentation is directed only at persons who are “qualified investors” within the meaning of Directive 2003/71/EC, as amended. The shares of Allgeier SE are not registered, and willnot be registered, pursuant to the regulations of the U.S. Securities Act of 1933 in its currently valid version, and may not be offered or sold in the United States except in certain transactions exemptfrom, or not subject to, the registration requirements of the Securities Act.It should be noted that a final decision as to whether, when and the terms on which any offer of securities may or may not take place has not been taken by the Company.www.allgeier.com3
AgendaAllgeier at a glanceBusiness OverviewFinancial PerformanceSummary & Outlookwww.allgeier.com
Allgeier at a glancewww.allgeier.com
Digitalization is questioning many thingsthat have proven their worth inorganizations of all sizes over a longperiod of time. Instead of predictableinnovation cycles, disruptive changestake place that can devalue or evenobsolete successful business strategieswithin only a few years.Allgeier is guiding its customer throughthe challenges of digital transformationto ensure their future success. We arethinking breakthroughs for new digitalbusiness models, taking strategic prioritiesand executing fast and without fuss groundbreaking projects to create agile andintelligent enterprise for the digital era.www.allgeier.com6
Allgeier at a glanceHigh growth in sales1687 m Allgeier isexpanding quicklywith continuousdouble-digit growthrates andbusiness spreadingacross 28 countriesworldwideCAGR2 14% 20% 15%211 m 2009www.allgeier.com1) Continuing operations according to IFRS, FY 2017: adjusted figures according to IFRS 152) Compound Annual Growth Rate20187
Allgeier at a glanceAllgeier is broadly positioned across regions, customers and industriesSegments1(Revenues)Industries1New BusinessSegments: 1%Customers1Manufacturing:22%Experts:35%Other: 9%Nordics: 3%TOP 10:26%A & CH: 7%Banks/Insurance:18%USA: 16%PublicSector: 13%TOP 11-100:42%IT: 11%Technology:50%Germany:64%Trade: 10%Telecom: ervices:14%H1 2019Regions12018H1 2019Europe5 DevelopmentCenters1India3 DevelopmentCenters1APAC &Middle East(w/o India)3 Development Centers174 locations 28 countries 5 continentsH1 2019Locations1: Europe 43, APAC & Middle East 17, Africa 2, North America 12Staff1: Europe 5,500, India 4,500, APAC & Middle East 600, Americas 2001) Continuing operations according to IFRS, segments, staff, customers, regions (H1 2019) as of June 30, 2019, industries (FY 2018) as of December 31, 2018www.allgeier.com8
Impressive track record of more than13 strategic acquisitions over the recent 8 yearsto deepen the technology footprintBSHNagarroAustriaNagarro2011Allgeier llgeierEngineeringNagarroNorway2015Anecon(now: Nagarro AT)20162017CiberiQuest2018ObjectivaFarabi(now: Nagarro)2019Solutions 4 Mobility(now: Nagarro)9
Value PropositionStrategically focused on IT megatrends such as AI,Machine Learning, Big Data, IoT, Cloud Services &Next-Gen User Experience in attractive industriesPortfolio of best-in-class technology companiesthat unite to adapt quickly and easily to customersdigital transformation needsGlobal outreach across 28 countries to securecustomer proximity, agility in delivery andleverage cost efficiencies with regional footprintwww.allgeier.comDriving technology to further deepen cuttingedge skills to maintain market leadershipPartnering with and trusted by a solid baseDAX and Fortune 500 companies as well asmid-sized industry leaders.Proven successful M&A track record andfurther accelerating growth by value-addingacquisitions in strategic Group segments10
Business Overview
Business OverviewBusiness SegmentsHighly specialized teams providingcutting-edge technology solutions and servicescreating competitive advantage for clientsTECHNOLOGYTailor made software development and technology services fordigital disruption to challengers and industry leaders. Combiningdesign, digital solutions and data to outperform the competition.% of gross profit158%ENTERPRISE SERVICESStrategy and process consulting to full implementation, as well asmanaged services in the context of application management,hosting and cloud services. Scalable, and adaptable softwaresolutions for all industry requirements.21%EXPERTSProfessional Workforce Solutions delivering personnel services andproject solutions for digitalization. One-stop shop offering the idealcombination of flexible personnel and project services.21%1) Split among the three core segments, state as of June 30, 2019 (H1 2019)www.allgeier.com12
Business OverviewTechnologyTailor-made softwaredevelopment and technologyservices for digital disruption tochallengers and industry leadersGlobal specialist for digitalization of mission-critical businessprocesses and disruptive technology servicesSolution PortfolioApplication Development & ManagementBig Data Analytics/DevOpsBlockchainDigital Commerce/PortalsRevenue1 EUR 300mAdj. EBITDA1 (margin) EUR 34m (11.5%)61 % of revenues outside of GermanyDigital Transformation, ImprovementUX/Experience DesignSoftware Engineering & LifecycleMore than 5,500 softwaredevelopers & UX designers1Quality Engineering/TestingIoT/Wearables & MobilityApplication ServicesCloud57 locations in27 countries1Customer Communication ManagementSecurity & ComplianceInnovation ToolkitFlexible blended shoring atdevelopment sites in EU,India, China & Vietnam1) In FY 2018, unconsolidated figures, continuing operations according to IFRS, offices/staff as of June 30, 201913
Business OverviewEnterprise ServicesStrategy and process consultingto full implementation, as well asmanaged services in the contextof application management,hosting and cloud servicesSophisticated SAP & Microsoft consulting and servicesConsulting ServicesERPBPM & ECMSecurity & ComplianceInfrastructure, Cloud MigrationTeam Efficiency, CommunicationExtended Relationship ManagementManaged ServicesApplication ServicesCloudInfrastructureGovernance & OrchestrationCruise ITRevenue1 EUR 120mAdj. EBITDA1 (margin) EUR 11m (9.8%)40% recurring revenuesGlobal SAP PartnerData WarehouseMicrosoft Gold PartnerProduct SolutionsHousekeeping Cockpit, ComplianceNow ,Metasonic Suite, TMaxSoft Suite, Julia MailOffice ,iTrade , Syntona logic 1,000 consultants in EU11) In FY 2018, unconsolidated figures, continuing operations according to IFRS, offices/staff as of June 30, 201914
Business OverviewExpertsProfessional Workforce Solutionsdelivering personnel services andproject solutions for digitalizationMarket leading one-stop-shop business for professionalworkforce solutions and personnel services for digitalizationWorkforce SolutionsContractingPlacement of freelance experts under aservice contractProject ServicesManaged services, fixed price projectsand consulting servicesRevenue1 EUR 280mAdj. EBITDA1 (margin) EUR 5m (1.7%)12 locations1 for just in timeexpert servicesTemporary PlacementPlacement of permanent experts in thecontext of temporary employment3,000 IT & Engineeringexperts1Permanent PlacementProfessional search in the context ofrecruitment100,000 professionals1 inIT experts pool1) In FY 2018, unconsolidated figures, continuing operations according to IFRS, offices/staff as of June 30, 201915
Business OverviewAllgeier has a broad customer base:68% of sales in FY 2018 months with 100 clients1Percentage of sales2018Biggest single client3.7%Three biggest clients10.4%25 biggest clients40.5%100 biggest clients68.5%1) Continuing operations according to IFRS as of December 31, 201816
Business OverviewAllgeier Group Management Board MembersCarl Georg DuerschmidtCEO, Management BoardDr. Marcus GoedscheManagement BoardManas Fuloria, PhDManagement BoardHubert RohrerManagement BoardMunich, GermanyMunich, GermanyDelhi, IndiaBremen, GermanyWith Allgeier since 2001Board Member since 2003With Allgeier since 2007Board Member since 2008With Allgeier since 2011Board Member since 2014With Allgeier since 1986Board Member since 2013www.allgeier.com17
Financial Performance
Financial PerformanceAllgeier is growing at double-digit ratesSales1 (on quarterly basis) in EUR m Ongoing salesgrowth in FY 2018and FY 201918%2172574 CAGR2 2015 – 2018:16% Planning for FY 2019:687498143133129141146154176203184190 191155118108 Sales growth15 – 20 % EBITDA margin6.5 – 7 %2016www.allgeier.com201720181) Continuing operations according to IFRS, FY 2017: adjusted figures according to IFRS 152) Compound Annual Growth Rate201919
Financial PerformanceAllgeier continuously improves added value and shows continuous growth in earningsGross Profit1 (on quarterly basis) in EUR m19%2Adjusted EBITDA1 (on quarterly basis) in EUR 0,49,0 8,8201714,912,234 3528www.allgeier.com15,933.510,5201653.954403834 345219%222,19,04,520164,9201720181) EBITDA before effects that are classified as extraordinary or relating to other periods in accounting terms,continuing operations according to IFRS, FY 2017: adjusted figures according to IFRS 15; FY 2018/2019: according to IFRS 162) Compound Annual Growth Rate201920
Financial PerformanceSegment Technology sustains significant growth in sales and earningsSales1 (on quarterly basis) in EUR m20%2194Gross Profit1 (on quarterly basis) in EUR m17%210599100.530,393871556913450 5173.07921,3635454 53 5418,8 19,2574372.619,518,1 17,817,2Adj. EBITDA1 (on quarterly basis) in EUR 1,09,920,27,87,38,37,96,213,66,4 01820192016201720181) EBITDA before effects that are classified as extraordinary or relating to other periods in accounting terms,continuing operations according to IFRS, FY 2017: adjusted figures according to IFRS 15; FY 2018/2019: according to IFRS 162) Compound Annual Growth Rate201921
Financial PerformanceSegment Enterprise Services shows strong revenue and earnings growth driven by SAP businessSales1 (on quarterly basis) in EUR m11463%21003243252663%22728 28306,01310 109,26,713,110,316.514.914,413,017Adj. EBITDA1 (on quarterly basis) in EUR m43.736.4313026Gross Profit1 (on quarterly basis) in EUR 63,0 3,13,33,12,10,80,720165,20,0201720181) EBITDA before effects that are classified as extraordinary or relating to other periods in accounting terms,continuing operations according to IFRS, FY 2017: adjusted figures according to IFRS 15; FY 2018/2019: according to IFRS 162) Compound Annual Growth Rate201922
Financial PerformanceSegment Experts has achieved a positive turnaround and is back on track for further growthSales1 (on quarterly basis) in EUR m4%26265 65 662802562576163Gross Profit1 (on quarterly basis) in EUR m66 6646.675 74696864696411,9 12,211,411,14%247.313,412,3Adj. EBITDA1 (on quarterly basis) in EUR ,83,410,73,12,92,93,2 20192016201720180,32017201820191) EBITDA before effects that are classified as extraordinary or relating to other periods in accounting terms,continuing operations according to IFRS, FY 2017: adjusted figures according to IFRS 15; FY 2018/2019: according to IFRS 162) Compound Annual Growth Rate2019-2,023
Summary & Outlookwww.allgeier.com
Summary & OutlookOutlook: Allgeier is on track for further growthAllgeier Group is overall performing well, core segments show continuous growthand sustained good performanceRestructuring and efficiency enhancement of Experts segment will be completedsuccessfully, positive turnaround in Q3/2019 achieved, further positive contributions in 2020New value-adding acquisition opportunities to bolster growth are constantly under reviewAnnounced strategic split into two corporate units can unleash additional shareholdervaluewww.allgeier.com25
Summary & OutlookSpin-off and independent listing of global technology and software development businessAllgeier’s management intends to reorganize its company portfolio with a subsequent spin-off and listing of thesoftware engineering and consulting business (Nagarro, iQuest, Objectiva, SAP)Such step allows more focus and specialization of each unit with a consistent and attractive storyIt helps to focus on well-defined, consistent corporate cultures and to create a higher attractiveness in employer brandingListed shares can be used as currency for equity-based incentives and to achieve a clear alignment of incentive systems to exploit synergiesIncreased management focus for both parts of Allgeier after splitFinancial performance will appear more clearly without dilution by Allgeier’s current portfolio mixInvestor base can develop over time due to different business models and equity storiesManagement believes that spin-off will unlock significant shareholder value in the future as the new unit will have a clearly definedglobal peer groupAdequate share price of the technology unit will be supportive for further acquisitionswww.allgeier.com26
Let’s talk.Postal addressContactWebEinsteinstrasse 172 – Blue Tower I D-81677 MunichPhone: 49 89 998421-0Dr. Marcus investor-relationswww.allgeier.comFollow us on LinkedIn
www.allgeier.com
Data Warehouse Product Solutions Housekeeping Cockpit, ComplianceNow , Metasonic Suite, TMaxSoft Suite, Julia MailOffice , iTrade , Syntona logic Global SAP Partner 1,000 consultants in EU1 Microsoft Gold Partner Enterprise Services Strategy and process consulting to full implementation, as well as managed services in the context
