Adesso SE Company Presentation, January 2021 - adesso Group
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adesso SE Company Presentation, January 2021
2 01/2021 adesso SE
Partner in digital transformation
adesso optimises the core business
processes of companies by IT-Consulting,
developing individual software and
industry solutions.
3 01/2021 adesso SE Our philosophy
4 01/2021 adesso SE
Success factors and growth
Group sales 2019
more than 4,471 EUR 449.7 million
employees Expected sales in 2020
adesso Group > EUR 500 million
as at 30 September 2020
Constantly
profitable
Cash at year-end 2019
EUR 46 million
Awards
as an employer
5 01/2021 adesso SE
Our Portfolio
>>> business
IT-Services (about 80 % of Sales)
Business Software
IT Consulting IT Management
Consulting Development
Strategy > Process Process > Architecture Architecture > Application Application > Operation
IT-Solutions (about 20 % of Sales)
Industry
Content Solutions Mobile Solutions
Solutions
technology
6 01/2021 adesso SE
Equity Story
Premium positioning
adesso will expand to form one of the leading integrated IT companies for sector-specific
business processes in central Europe
adesso has an ambitious growth strategy and aims to grow by at least twice the rate of the
market (plus M&A)
adesso aims to have an operating margin above the sector average
adesso pays out a dividend and aims to raise it continuously
7 01/2021 adesso SE
Growth Model
Tried-and-tested model for expanding
sector-wide presence
Transfer of model to new sectors:
CONSULTING DEVELOPMENT SOLUTIONS
Start a new core sector every 2-3 years INSURANCE
Ramp-up-phase: Automotive BANKS
HEALTH
Start 2019: Manufacturing LOTTERY
Regional expansion PUPLIC AUTHORITIES
AUTOMOTIVE
Creation of new technology areas MANUFACTURING INDUSTRY
Creation of a product & solutions portfolio
8 01/2021 adesso SE
Geographic Expansion | DACH
New offices in Germany
and Switzerland
Bonn
STRALSUND
NEUMÜNSTER Leipzig
ROSTOCK
HAMBURG
BREMEN Potsdam
HANNOVER BERLIN
POTSDAM
Walldorf
MUENSTER Lugano
ESSEN DORTMUND LEIPZIG
DUSSELDORF
COLOGNE
AACHEN JENA
MUCH
BONN
FRANKFURT
WALLDORF NUREMBERG
KARLSRUHE
STUTTGART
REUTLINGEN VIENNA
MUNICH
BASEL
ZURICH
BERN
LAUSANNE
LUGANO
9 01/2021 adesso SE
Geographic Expansion | International
New international offices
Budapest
Madrid
Amsterdam
Nieuwegein (Utrecht)
BOSTON
LONDON
AMSTERDAM
NIEUWEGEIN
BUDAPEST
SOFIA
BARCELONA ISTANBUL
MADRID
JEREZ DE LA
FRONTERA
10 01/2021 adesso SE
Business Model
INNOVATION GROWTH MARGIN EPS /
DIVIDEND
Portfolio expansion Grow each sector Utilisation
New business models Enter new sectors Daily rates
Product business Project efficiency
International business License & Maintenance
Recruiting Costs / changes per FTE
- Personnel to daily rates
M&A
- Travel & offices11 01/2021 adesso SE
adesso insurance solutions / in|sure Ecosphere
Business Driver for growth and visibility in the
insurance market
Profit & Margin Driver
Licences
Maintenance
Implementation services
Building up a ramp of maintenance contracts
International Business in later stage12 01/2021 adesso SE
adesso banking solutions ( JV) – New core banking system provider
Joint Venture (50/50) with Asseco Poland
Market entry as a new core banking system provider for
German-speaking countries in preparation
Leading European software producer Asseco contributes its
ultra-modern “Asseco Banking Suite”, proven at numerous
European banks
Enhancement and localization of product on the extensive
knowledge of adesso’s banking unit
First adesso Banking customers show high interest
Next step in strategy of supplementing adesso’s IT services
business with industry-specific standard solutions and products13 01/2021 adesso SE
Strong growth in sales and operating profit / IFRS 16 effect on EBITDA
Drivers
Sales
adesso Germany up 17 %
Other countries up 33 %
23 % growth in headcount
(dilution Turkey, Bulgaria,
Spain)
EBITDA
One time IFRS-16-effect of
EUR 12 m
Strong licence sales
Weaker utilisation in first half-
year with strong recovery in
Q4/2019
Austria, Bulgaria, Turkey and
Switzerland profitable
(Spain < 0)14 01/2021 adesso SE
Update 9M 202015 01/2021 adesso SE
Sales growth of 17 % despite COVID19-pandemic
Sales
17 % total sales growth
Germany up 15 %
Other countries up 23 %
Sales drivers Health, Public
& Manufacturing
13 % growth in
headcount
Germany up 11 %
Other countries 24 %16 01/2021 adesso SE
Sales split 9M 2020 (1)
Sales by industry
in EUR m 9M 2020 Δ yoy Recap 2019
Insurance 71.4 -1% + 37 %
Banking 65.4 0% +1%
Health 41.7 + 40 % +1%
Public 54.3 + 47 % + 40 %
Automotive * 17.1 -3% + 112 %
Manufacturing * 21.5 + 139 % -
Cross Industries * 112.5 + 17 % + 8 % **
* Sales of customers Bosch and SBB have been reallocated in 2020. Bosch now
contributes to Manufacturing (previously: Cross Industries) and SBB now
contributes to Cross Industries (previously: Automotive). Comparative figures
(yoy) have been adapted.
** including Manufacturing17 01/2021 adesso SE
Sales split 9M 2020 (2)
Sales by region
in EUR m 9M 2020 Δ yoy Recap 2019
Germany 303.6 + 15 % + 17 %
Switzerland 54.1 + 21 % + 24 %
Austria 7.6 + 23 % + 20 %
Turkey 8.2 + 29 % + 52 %
Other 10.3 + 99 % + 103 %18 01/2021 adesso SE
Growth in operating profit EBITDA by 63 %
Operating Profit
Q1 2020
good utilisation and
booking intensity
Q2 2020
corona effects with lower
utilisation but savings of
travel expenses
Q3 2020
utilisation and booking
intensity picked up again
in|sure license deals
plus cost savings
Overall the 9M-EBITDA
grew by 63 % year-on-
year19 01/2021 adesso SE EBITDA increases more than sales due to OOE savings Key Figures in EUR m 9M 2020 9M 2019 Δ yoy Employees (FTE, avg.) 4,249 3,634 + 17 % Sales 383.9 327.2 + 17 % Gross Profit 339.3 289.9 + 17 % Personnel costs 256.4 217.3 + 18 % Other operating expenses 41.9 48.2 - 13 % EBITDA 47.1 28.9 + 63 % EBITDA-margin (%) 12.3 8.8 Profit drivers 9M 2020 Utilisation & projects D / AT / CH / T Daily rates Stable License & Maintenance in|sure / FirstSpirit Personnel cost per FTE 1%
20 01/2021 adesso SE Tax quota on normal level leads to 183 %-increase of EPS Key figures in EUR m 9M 2020 9M 2019 Δ yoy EBITDA 47.1 28.9 + 63 % Depreciation plant & equipment - 17.4 - 14.3 + 22 % Depreciation ppa - 1.7 - 2.1 - 19 % Depreciation goodwill 0.0 0.0 - Income from investments - 0.2 - 0.4 Financial result - 1.8 - 1.6 + 11 % EBT 26.1 10.6 + 146 % Income taxes - 8.5 - 4.3 Consolidated earnings 17.6 6.2 182 % Earnings per share (€) 2.86 1.01 183 % Tax quota 32 % 41 %
21 01/2021 adesso SE Balance sheet and financial KPIs Key figures in EUR m 30.09.2020 30.09.2019 Δ yoy Cash 1) 32.0 34.2 - 2.2 Financial debt 1) 46.2 60.9 - 14.7 Net-Cash 1) -14.2 -26.7 + 12.5 Operating Cash-Flow 22.6 1.6 + 21.1 Working Capital 2) 108.1 90.9 + 19 % Investment Cash-Flow -10.6 -12.9 + 2.3 Goodwill 49.8 48.6 + 1.2 Equity 106.8 81.8 + 25.0 Equity ratio 31.2 % 25.6 % + 5.6 pp 1) Decreased financial debt leads to improved debt-equity-ratio 2) Increased position of contract assets due to more fixed price projects
22 01/2021 adesso SE
Guidance 2020 raised after strong Q3-figures
HY1 within expectations / Strong Q3 leads to raise of guidance / Q4: promising but new corona-risks
Q1 with good start due to good utilisation and booking intensity
Weaker Q2 (due to corona-pandemic) and no in|sure license deals, saved travel expenses
Strong Q3: utilisation picking up, highest number of working days, cost savings continue
in|sure license deals
VAT reduction is an incentive for clients to start digitalisation projects; continued in Q4
Comparably high number of working days with some risks due to new partial-lockdown; good chances
to close some more license sales
% of Guidance Guidance
IFRS
in EUR m 9M 2019 9M 2020 raised 2020 2020
Guidance (raised) (previous)
Sales 327.2 383.9 77 % > 500.0 > 490.0
EBITDA 28.9 47.1 72 - 86 % 55.0 – 65.0 > 50.0
EBITDA-margin 8.8 % 12.3 % >10.0 %23 01/2021 adesso SE
adesso business model proves to be quite resilient against corona crisis
Negative impacts due to corona pandemic
Lower utilisation in Q2 – countermeasures: short-time work
More volatile cash situation due to some customers in distressed situations
Countermeasures:
Tax deferrals
Additional bank lines
Increased receivables management
Project cancellations or postponements in a few cases
Corona-pandemic has some positive impact
Saved expenses (travel, events)
Importance of digitalisation is underlined in the corona crisis
adesso core sectors less affected by the crisis (Banking, Insurance, Health, Public)
VAT reduction incentivises adesso customers to start digitalisation projects24 01/2021 adesso SE
Acquisitions in the Netherlands and in Hungary in Q4 2020
Strategic acquisitions to promote internationalisation
Getting the right size for adesso-typical projects (+43 Dutch/+4 Hungarian employees)
Majority interests in three Dutch companies of BlueGroup IT (Nieuwegein/Utrecht)
Purchase price: a middle single-digit million Euros; Sales: ~ EUR 4 m; consolidated from 11/2020 (e)
Managing directors remain involved operative and with a minority interest of together under 6 %
Highly skilled Java-Developers with focus on banks and government IT
Acquisition of 51 % of Start-up LeanNet (Budapest)
Purchase price: small six-figure Euros (plus Earn-out and Put-/Call-Option in three years)
Experts in Cloud-Native-Technology25 01/2021 adesso SE
Acquisitions of majority stake in QUANTO AG Q4 2020
Strategic acquisitions to support adesso’s SAP Business
Aquisition of a majority stake of ~72 % in QUANTO AG, Hameln, with
200 employees, about EUR 20 m sales; purchase price just reaching
into double-digit million euros range
Aquisition of 100 % in solbicon AG, Dortmund, with 20 SAP experts
Merge adesso’s SAP business (100 employees) under the umbrella of the
new subsidiary QUANTO AG to create one of the largest German SAP
consulting companies in the industries of financial services and utilities
Next steps: Grow SAP business to around 500 employees on the backdrop
of promising opportunities within the conversion to S/4HANA
Expand SAP know-how within the adesso Group and transfer to other
industries (e.g. public sector, health, life science and manufacturing
industry)26 01/2021 adesso SE adesso playbook 2021/22 Learning from the Corona-Crisis Strong top-line growth Growing SmartShore Business International expansion Corporate Development and M&A-transactions Further licence sales with in|sure Ecosphere; preparing for internationalisation Further progress with Industry Solutions (i.e. Banking/Health)
27 01/2021 adesso SE
Thank you!
adesso SE
Jörg Schroeder
Member of the Executive Board
Adessoplatz 1
44269 Dortmund
Germany
T +49 231 7000-7000
ir@adesso.de
www.adesso-group.de/en/28 01/2021 adesso SE
Appendix29 01/2021 adesso SE References
30 01/2021 adesso SE Key figures (Quarters) in EUR k Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Profit situation Sales revenues 102,646 103,446 109,859 113,944 122,455 125,636 120,437 137,794 domestic 86,383 82,385 88,782 91,073 98,747 98,419 95,275 109,926 foreign 16,263 21,061 21,077 22,871 23,708 27,217 25,162 27,868 EBITDA 9,055 8,634 9,363 10,894 19,240 12,223 9,335 25,538 EBITDA margin (in %) 8.8 8.3 8.5 9.6 15.7 9.7 7.8 18.5 Consolidated earnings 3,192 2,145 1,951 2,149 11,250 3,681 1,793 12,133 Balance Sheet Balance sheet total 226,375 308,999 316,819 319,934 320,764 330,749 341,103 342,614 Equity 78,406 80,347 79,328 81,809 92,482 96,144 94,912 106,839 Euqity ratio (in %) 34.6 26.0 25.0 25.6 28.8 29.1 27.8 31.2 Liquid assets 45,912 40,523 27,870 34,232 46,352 32,270 34,805 32,011 Net cash position -2,196 -7,002 -34,714 -26,692 -11,614 -24,214 -20,142 -14,183 Employees Employees (FTE) 3,280 3,482 3,715 3,951 4,033 4,192 4,259 4,471 domestic 2,797 2,936 3,140 3,297 3,328 3,449 3,483 3,657 foreign 483 546 575 654 705 743 776 814 Gross profit/Employees 111 107 107 105 109 107 100 112 Share Number 6,176,093 6,176,093 6,176,093 6,176,093 6,176,093 6,176,093 6,176,093 6,185,343 Price at the end of the period (in EUR) 47.10 53.20 51.30 50.80 53.50 42.85 55.00 73.00 Market Cap (in EUR m) 290.9 328.6 316.8 313.7 330.4 264.6 339.7 451.5 Earnings per share (in EUR) 0.53 0.35 0.31 0.35 1.81 0.60 0.29 1.97
31 01/2021 adesso SE Key figures (FY) in EUR k 2013 2014 2015 2016 2017 2018 2019 Profit situation Sales revenues 135,283 156,915 196,449 260,974 321,590 375,648 449,704 domestic 112,840 131,941 152,736 215,077 259,990 308,742 360,987 foreign 22,443 24,974 43,713 45,897 61,600 66,906 88,717 EBITDA 7,776 9,778 14,283 23,419 25,378 32,975 48,131 EBITDA margin (in %) 5.7 6.2 7.3 9.0 7.9 8.8 10.7 Consolidated earnings 3,027 3,995 5,312 12,599 11,331 14,000 17,495 Balance Sheet Balance sheet total 75,129 84,030 120,166 183,793 202,812 226,375 320,764 Equity 36,044 38,748 42,150 58,315 67,023 78,406 92,482 Euqity ratio (in %) 48.0 46.1 35.1 31.7 33.0 34.6 28.8 Liquid assets 21,644 23,724 28,162 43,144 46,497 45,912 46,352 Net cash position 16,288 17,977 6,416 -4,954 342 -2,196 -11,614 Employees Employees (FTE) 1,221 1,377 1,702 2,174 2,748 3,280 4,033 domestic 1,106 1,236 1,456 1,926 2,391 2,797 3,328 foreign 115 141 246 248 357 483 705 Gross profit/Employees 105 106 113 119 113 110 107 Share Number 5,763,327 5,793,720 5,799,720 6,167,423 6,174,203 6,176,093 6,176,093 Price at the end of the period (in EUR) 10.55 13.50 24.07 46.00 54.67 47.10 53.50 Market Cap (in EUR m) 60.8 78.2 139.6 283.7 337.5 290.9 330.4 Earnings per share (in EUR) 0.48 0.59 0.82 2.11 1.79 2.28 2.82 Dividend per share (in EUR) 0.21 0.25 0.30 0.36 0.40 0.45 0.47
32 01/2021 adesso SE Shareholder Structure
33 01/2021 adesso SE
The share
Market Cap raised by
82 % to EUR 600.0
million in 2020
Shareprice EUR 97.00
at year-end 202034 01/2021 adesso SE
adesso share, Basic Data
ISIN Code DE000A0Z23Q5
WKN (national securities identification number) A0Z23Q
Symbol / Code ADN1
Reuters Instrument Code ADNGk.DE
Bloomberg Symbol ADN1:GR
First day of trading 21. June 2000
Trading platforms Xetra, Tradegate Exchange
Market Segment General Standard
Number of Shares 6,185,343
Currency EUR
No share with nominal value;
Nominal value EUR 1.00 (mathematically)
Share capital 6,185,343
Voting rights per Share 1
CDAX, DAXsector All Software,
DAXsubsector All IT-Services, General
Index All-Share, General Standard Index
Reporting Standard IFRS
End of fiscal year 31 Dec.
Paying Agent DZ BANK AG, Frankfurt/Main35 01/2021 adesso SE Shareholdings
36 01/2021 adesso SE
Executive Board (1)
Michael Kenfenheuer, CEO
Michael Kenfenheuer (born in 1958) is a member of the Executive Board and responsible for the department Banking. In
the Executive Board of adesso he is furthermore in charge of the adesso subsidiaries adesso banking solutions GmbH,
alleato assekuranzmakler GmbH and e-Spirit AG. He was appointed as a member of the adesso SE (formerly adesso AG)
Executive Board for these responsibilities in 2000. With his many years of business management and project
management experience, Michael Kenfenheuer is having a major impact on the development and expansion of the
company's network of technical and industry experts. From 2011 to mid-2015 Michael Kenfenheuer was the Co-
Chairman of adesso SE (formerly adesso AG). Since 1 July 2015 he assumes the Chairmanship.
Dirk Pothen, Member of the Executive Board
Dirk Pothen (born 1967) is a member of the Executive Board and responsible for the business divisions Automotive and
Transportation, Manufacturing Industry, Microsoft and Digital Experience as well as for the foreign adesso national
companies in Switzerland, Austria, Turkey, Bulgaria, Spain and the Netherlands. He is also responsible for the adesso
subsidiary com2m GmbH. In addition, he is responsible for the Human Resources department. Before his appointment
to the Executive Board of adesso SE (formerly adesso AG) in October 2018, Dirk Pothen most recently served as
Managing Director DACH at SQS Software Quality Systems AG in Cologne. Prior to this, the adesso Executive Board
member held various management positions at Atos and T-Systems for fifteen years.
Andreas Prenneis, Member of the Executive Board
Andreas Prenneis (born 1965) is a member of the Executive Board and responsible for the Cross Industries, Public
Administration, Health, Data & Analytics as well as IT Management Consulting divisions and is also responsible for the
adesso subsidiaries adesso as a service GmbH, adesso health solutions GmbH, adesso mobile solutions GmbH, percision
services GmbH, medgineering GmbH, adesso Transformer Deutschland GmbH and inQventures GmbH. In addition, he is
responsible for administration and legal affairs. Before he was appointed to the Executive Board of adesso SE (formerly
adesso AG) in April 2015, he was employed at CompuGroup Medical Deutschland, where he most recently headed
various business divisions as Area Vice President Telematics & AddOn.37 01/2021 adesso SE
Executive Board (2)
Stefan Riedel, Member of the Executive Board
Stefan Riedel (born in 1967) heads the Insurance division as a board member and is also responsible for the adesso
subsidiaries adesso insurance solutions GmbH, which bundles adesso's product business in the insurance sector, and
adesso experience GmbH. Before he was appointed to the board of adesso SE in 2020, Stefan Riedel was the general
representative of IBM Deutschland GmbH for the insurance sector - first as vice president in German-speaking countries
(DACH) and then as vice president for Europe.
Jörg Schroeder, CFO
Jörg Schroeder (born 1977) is a member of the Executive Board and responsible for the areas of Finance and Controlling,
Investor Relations as well as Mergers & Acquisitions. Before Jörg Schroeder was appointed to the Executive Board of
adesso SE (formerly adesso AG), the graduate in business informatics, LL.M. and executive MBA was responsible for the
strategy development for the implementation of the BITMARCK group of companies as Chief Strategy Officer and
member of the Executive Board since 2015. Most recently, as Chief Financial Officer of BITMARCK Holding GmbH, he was
responsible for the areas of finance, controlling and purchasing of the group and all subsidiaries.38 01/2021 adesso SE
Supervisory Board
Six members experienced with high industry knowledge
Prof. Dr. Volker Gruhn (Chairman): co-founder of adesso, professor for Software Engineering
Dr. Friedrich Wöbking (Deputy Chairman): e.g. former member of the executive board of
Dresdner Bank and Allianz
Prof. Dr. Gottfried Koch: e.g. former managing director of a stocklisted software company,
professor of insurance information technology
Hermann Kögler: e.g. former Director of Finance/Controlling and Spokesman of the Board
at COGNOS AG
Heinz-Werner Richter: e.g. former member of the executive board of Barmenia Insurance,
German Insurance Industry Association
Rainer Rudolf: co-founder of adesso, member of the executive board of an IT services company39 01/2021 adesso SE Important Dates 2021 Date Event 2021-01-11 24nd ODDO BHF Forum, Lyon (virtual) 2021-01-19 20. German Corporate Conference (GCC) of UniCredit/Kepler Cheuvreux 2021-02-25 ODDO SEYDLER Digital Small & Mid Cap Conference 2021, Frankfurt/Main (virtual) 2021-03-31 Publication of the 2020 annual report, financial press / analyst conference, Dortmund 2021-05-12 Interim announcement of the group within the 1st half-year 2020-05-17 to 19 Spring Conference 2021, Frankfurt/Main 2021-05-27 Regular ASM, Dortmund 2021-08-30 Publication of the 2021 half-year report 2021-11-15 Interim announcement of the group within the 2nd half-year 2021-11-22 to 24 German Equity Forum Online, Frankfurt/Main (virtual)
40 01/2021 adesso SE
Thank you!
adesso SE
Jörg Schroeder
Member of the Executive Board
Adessoplatz 1
44269 Dortmund
Germany
T +49 231 7000-7000
ir@adesso.de
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