Allgeier SE

Investor Presentation • Aug 19, 2024

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Investor

Presentation

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1 | Allgeier at a glance
2 | Value creation highlights
3 | Market trends
4 | Business overview
5 | Group financials

1

Allgeier

at a glance

Allgeier is a software and IT services company specialized in the digitalization of mission-critical enterprise processes

Allgeier has built
$>\boldsymbol{\epsilon} 2$ bn of shareholder value in recent 20 years ${ }^{1}$

$\Delta$

Digitalization as business driver, positioning in key growth sectors \& future trends such as e-commerce, cloud, cyber security \& open-source software development

€ 488 m Revenue 20231
$12 \%$ Revenue CAGR ${ }^{1,2}$ (2020-23)
$13 \%$ Adj. EBITDA margin 20231,3
26 \% Adj. EBITDA CAGR ${ }^{1,2,3}$ (2020-23)

$>3,500$ highly skilled employees ${ }^{4}$
$15 \%$ Employee growth CAGR ${ }^{1,2}$
(2020-23)

Broad customer base of $>2.000$ large enterprises, Mittelstand companies \& public sector clients

Buy \& build track record with $85 \div$ value-adding acquisitions since 2004

Allgeier has a successful buy \& build track record to support its growth

• Since 2003 we have acquired $>85$ companies \& created larger entities to support value creation
• During this period, we have assessed $>1,500$ acquisition targets with different specializations and in a wide range of countries
• 2003-2023: >10 divestments, proceeds from disposals uncover hidden reserves

China 1
India 1

$>40$	4	4	6	2	3	6	3	2	1
2003	2015	2016	2017	2018	2019	2020	2021	2022	2023

Allgeier shows sustainable growth and continued increase in value

[^0]
[^0]: ${ }^{1}$ ) Continuing operations according to IFRS including retroactive adjustments required by IFRS
${ }^{2}$ ) In 2020 Allgeier fully spun-off its international software development business as an independent listed company
${ }^{3}$ As of December 16, 2020: value of Allgeier share plus value of Nagarro share, light blue comparison line: performance of DAX in percent (basis January 1, 2016: 100 percent)

Allgeier focuses on cutting-edge, market-leading technologies \& key future trends

Low-code	Cloud/	Microsoft ERP
Software development	Containerization	\& Azure Cloud
A12 Enterprise Low-code	Open-source Cloud	Microsoft Dynamics 365
ELSTER	Cloud-native Apps	Cloud-native Applications
MODUL-F	Paas/CaaS/laaS	Data \& AI Azure
Microsoft Low-code/Power Apps	SAP Cloud	Azure Services \& DevOps
Open-source
Software	Artificial	IoT/
Publicplan	Intelligence	Smart City
it-novum	Machine Learning	Big Data Analytics
	Cyber Crime/Allgeier CyRis	Open Source loT

2

Value creation
highlights

Allgeier is creating sustainable shareholder value at the core of digitalization

1

Digitalization is disrupting - any business

Digitalization drives our business. We address the need of our customers for change-the-business projects.

Smart \& highly skilled people are the basis of know-how in a fast-developing business environment

We are a safe \& exciting home to our people based on modern \& open cultures in the various Allgeier companies.

State-of-the-art software

2 solutions are a key - competitive differentiator

We deliver high value-add through software solutions like open-source software, cyber security, cloud transformation \& e-government.

M\&A creates outstanding

development opportunities in a - fragmented market environment

We are attracting companies \& entrepreneurial people to join us.

Guidance for the 2024 financial year and mid-term forecast: Increase in value creation and profit margins

Revenue in $€ \mathbf{m}$

3

Market trends

Allgeier is driven by major software \& IT services market trends and the huge demand for digital transformation

€ 97.1bn
2024

German IT \& software services market ${ }^{1}$

$33 \%$ CAGR 2023-30

• \$ 43.9bn 2030

Global cloud containerization market $^{2}$

$>\$ 3.3 b n$

2021/2022
Investment in the
digitalization of public
administration in Germany ${ }^{3}$

14 \% CAGR 2023-30
\$ 425bn 2030
Global cyber security market ${ }^{4}$

\$ 2,510bn

2024
Global spending on digital transformation technology \& services ${ }^{5}$

10 \% CAGR 2024-28
\$ 4,865bn 2028
Global e-commerce market ${ }^{6}$

[^0]
[^0]: ${ }^{1}$ BITKOM, Eliss; as of January 2024
${ }^{2}$ Data Bridge Market Research: Global Application Container Market; as of December 2022
${ }^{3}$ National Standards Control Council: Monitor Digital Administration (federal budget for implementation of OZG and register modernization) ${ }^{4}$ Fortune Business Insights: Cyber Security Market Research Report; as of April 2023
${ }^{5}$ Statista: Spending on digital transformation technologies and services worldwide from 2017 to 2026; as of August 2023
${ }^{6}$ Statista: eCommerce - global; as of October 2023

Allgeier benefits from the continuous growth of the software \& IT services market and the huge demand for digital transformation

Revenue from IT services in Germany ${ }^{1}$ in $€$ bn
Revenue from software in Germany ${ }^{1}$ in $€$ bn

4

Business
overview

Allgeier organizes its software \& IT services in two segments with strong \& well-established brands

Allgeier Enterprise IT

Allgeier Enterprise IT is specialized in digital transformation projects with recurring nature at the core of the customers' operations

Full-range IT solutions \& software
services provider for digitalization

Full

6 368 m Revenue 20231

€ 42 m Adj. EBITDA 2023¹,2

$>2,400$ IT \& software specialists ${ }^{3}$

22 locations in Germany ${ }^{3}$
10 locations in Austria, Switzerland, Poland, Spain \& India ${ }^{3}$

[^0]
[^0]: ${ }^{1)}$ Based on unconsolidated segment financials according to IFRS as of December 31, 2023
${ }^{2)}$ Adjusted EBITDA (EBITDA before effects that are extraordinary or relate to other periods) of operating units w/o holding company costs $\quad{ }^{3)}$ as of December 31, 2023

Allgeier Enterprise IT is specialized in large digital transformation projects with recurring nature at the core of the customers' operations

Customer diversification ${ }^{1}$
Number of accounts ${ }^{1}$

Allgeier Enterprise IT supports its clients in the digitalization and optimization of their digital business processes along the entire value chain

Focused on large IT \& software projects for digital transformation, long-term managed services \& proprietary software solutions

• Open-source/E-government
• Public sector IT services
• Cyber security
• Cloud/Containerization
• E-commerce
• ERP \& ECM
• SAP \& ServiceNow consulting \& software development

DB	$\boldsymbol{T}$ ・ ING \& $\mathrm{B}-\mathrm{BASF}$
datapgrt	NOKIA
SIEMENS	vodafone KFW

LanXESS
a Santander
FUJITSU
BOMBARDIER
Deutsche Post $\boldsymbol{\Delta}$
BNP PARIDAS
ERGO $\odot$ EVロПIK COMMERZBANK $\boldsymbol{\Delta}$

Success Story Open-source Software Development: Public Administration as a Service - Wirtschafts-Service-Portal NRW

• The WSP.NRW relieves all 396 municipalities in the state of the burden of receiving business start-up notifications
• The portal serves as a "single point of contact" according to EU regulation (SDG-II) for European start-ups
• Promoting digital sovereignty of public administration and 100\% open-source: Drupal CMS follows recommendation of EU Commission \& EU Parliament
• Consistent implementation on microservices architecture enables cloud-based hosting
• All components can be configured for other federal states according to EFA principles (one-for-all services) and can thus be reused for the digitalization of other administrative services as well as for other sectors (e.g., healthcare)

Allgeier Active Cyber Defense Service Detect cyber attacks early - and defend against them!

"Active Cyber Defense from Allgeier allows us to monitor our entire network, including any desktops, laptops, tablets or servers ..."

• Time is the crucial factor in a hacker attack - the longer an attacker can move undetected in the network, the greater the damage as a rule; it often takes up to six months for a cyber attack to be detected
• Allgeier CyRis enables early attacker detection and thus successful and early defense against cyberattacks with the help of a "Managed Detection and Response solution" (MDR)
• Active Cyber Defense (ACD) service is a proactive solution installed in the customer infrastructure to detect unusual network communications and compromised systems
• Trained IT security analysts take over 24/7 network monitoring - if an active attack is detected, an immediate warning is sent to the customer; in addition, incident response specialists provide separate support

Success Story

Document management: Central collaboration platform based on our proprietary software

• Building a central document collaboration platform for Vodafone in Germany and other countries as well as subsidiaries of Vodafone
• Migration of $>4.5$ bn documents accessible by 4,500 users
• Technical basis is our proprietary DMS software that got highly customized for the specific Vodafone requirements, all architecture and software engineering is done by us
• The project is ongoing for 4 years and with a deployment of over 14,000 person days so far
• Our revenue from the project comprises of T\&M \& license fees Global deployment using tablets for significant cost savings, higher efficiency in resource planning, higher speed \& improvement of safety

Success Story

Cloud migration \& Workplace as a Service: IT service management for German airport with critical applications

• Takeover of IT services from subsidiaries of the customer (KRITIS company with protected areas) incl. services in security areas of the client, complete deployment of all end devices
• Cloud migration: modernization of IT from SCCM to Intune with transitional hybrid operation of both services
• Managed Workplace for 2,500 end devices, walk-in service desk and full IT lifecycle services (IMACD), 24x7 service desk incl. VIP support, client management via Microsoft Endpoint Manager Autopilot, packaging of all software products, takeover of HW/SW logistics processes via standardized shopping cart and takeover of complete HW lifecycle management, compliance \& security for endpoints and service management

Success Story

Asset Management with SAP and EvoSuite: Mobile maintenance \& work order management

• Support technicians in the field with SAP Asset Manager \& EvoSuite
• Implementation of mobile maintenance solution SAP Asset Manager in biggest and complex German plant
• Implementation of scheduling and work order management solution EvoSuite
• 1500+ technicians supported by implemented solutions
• Global deployment using tablets for significant cost savings, higher efficiency in resource planning, higher speed \& improvement of safety

Success Story

Industry-specific ERP solutions: Intelligent omnichannel strategy as growth driver

• Leinweber Baucentrum is one of the most innovative building materials retailers in Germany with a focus on customer-oriented omnichannel IT solutions
• 2012: Introduction of the industry-specific Allgeier ERP solution syntona® logic at Leinweber Baucentrum; since then, additional modules have been continuously integrated to optimize business processes
• For the best possible customer service, Leinweber Baucentrum pursues an omnichannel approach in which the Allgeier ERP is always at the center - whether directly on the construction site via the web store or on site in the branch with a wide range of self-service offerings

Success Story

Managed Services: Fully managed services on the high seas for the entire TUI \& Hapag Lloyd cruise fleet

• Single point of contact (infrastructure, security, network) and scalable IT resources for onboard operations for 13 ships of the "Mein Schiff" fleet and Hapag Lloyd cruise fleet
• Challenge: limited access due to variable ship locations and ensuring availability and performance of systems on the high seas
• Comprehensive service management for the entire fleet and locations in Germany: central hub on all ships via Allgeier data center for external parties ("OneNet Services"), operation of local data centers for the entire fleet, 24/7 service and customer-specific monitoring as well as on-board service, use of server and storage virtualization (DataCore, DELL VxRall), two server rooms per ship, manufacturer-related HW support incl. parts logistics (RMA)

Success Story
loT: Citizens and tourists benefit from "dParkingPartner" smart city app

• Dataport is the public law institution of the five northern German states for the digitalization of public administration; the Baltic Sea resort of Eckernförde optimized public parking space and tourist traffic flows as part of a pilot project using Internet of Things (IoT) technology
• 30-40\% of inner-city traffic is due to parking - effective parking management and better traffic control help to significantly reduce $\mathrm{CO}_{2}$ emissions and prevent congestion
• A smartphone app reliably directs drivers and tourists to free parking spaces; the visualization of parking space data using ThingsBoard is an almost universal solution that a wide variety of municipalities can use
• The application architecture is based on open source technologies and is becoming the de facto standard for loT and smart city scenarios

Success Story

Workflow management: Digitization of business processes as a success factor

RÖHM

• Allgeier's proprietary workforce management software metasonic ${ }^{\circledR}$ was established at Röhm GmbH as a workflow engine in the company for the independent modeling of business processes
• The customer has established its own internal metasonic ${ }^{\circledR}$ process team with three employees
• Over 3,500 users access metasonic ${ }^{\circledR}$ process
• Röhm uses metasonic ${ }^{\circledR}$ process for the following scenarios, among others: CREM, CHOP management, generic workflow, EMP/MASQ, investment companies, USGQ(E) delegation, IT audit finding, and more
• Röhm and Allgeier inovar have already been working together successfully for 15 years in various projects

Success Story
eGovernment: Cross-state digitalization in the judiciary with e-file system and portal for billions of documents

• Replacing paper-based processes \& implementation of an e-file system for electronic legal transactions and legally binding digital files in the justice system
• The central eAkte system stores, distributes and makes available the billions of documents from the various specialized procedures in compliance with the law
• The integration portal brings together various specialized procedures a thus provides a central point of contact for judges and clerks, among others (e.g., land registry, register management, eAkte).
• High availability requirements, organizational complexity (e.g., cross-state interconnectedness), and change management/acceptance (e.g., judicial independence)

Enterprise IT continues transformation to higher gross margins

15

mgm technology partners

mgm technology partners' ongoing success is underlined by key public \& enterprise accounts

One of the leading service providers for e-government and e-commerce in Germany

• Enterprise low-code platform mgm A12
• Enterprise software engineering
• Artificial intelligence/Machine learning
• Strategic IT consulting
• Web \& application security
• Test automation
  

mgm technology partners is an international high-end software provider for digitalization, disruptive technology \& consulting services

High-end specialist for secure, highly scalable \& available software solutions

$>1,000$ software developers \& consultants ${ }^{3}$

€ 125 m Revenue 20231
€ 26 m Adj. EBITDA 2023¹,2

12 locations in Germany ${ }^{3}$
7 locations in France, Portugal, Czechia, Austria, USA \& Vietnam ${ }^{3}$

[^0]
[^0]: ${ }^{1)}$ Based on unconsolidated segment financials according to IFRS as of December 31, 2023
${ }^{2)}$ Adjusted EBITDA (EBITDA before effects that are extraordinary or relate to other periods) of operating units w/o holding company costs $\quad{ }^{3)}$ as of December 31, 2023

mgm technology partners is a strong partner for industries driven by high digitalization dynamic

Customer diversification ${ }^{1}$

Artificial Intelligence: Creating AI landscapes Current activities

Current AI activities \& working areas:

• Internal LLM (large language model) running on premises \& accessible via API for testing purposes
• Developing A12 based chat UI for whole organization
• Fully automated quality testing \& deployment of new, emerging LLMs according to business scenarios \& needs
• Operating, monitoring, sizing LLMs - on premise \& externally (hosted at AWS)

Artificial Intelligence: Creating AI landscapes -
Fields of application \& Targets

Fields of application \& Targets:

• Operating GDPR ${ }^{1}$ compliant AI for use
• in own organization
• at customers, and
• integrated into mgm products \& solutions
• Building an eco-system around own AI:
• chat interfaces \& AI optimized dialogues in enterprise solutions
• as an API to tools for developers \& modelers
  ("mgm copilot" for software engineering)
• as an API integrated into A12 based solutions \& products
• Brains that encapsulate domain knowledge (i.e., A12)
• Realization of complete AI landscapes for customers
• AI consulting \& implementation (as a service \& on premise)

Success Story eGovernment: German federal tax portal ELSTER

• mgm platforms are used by millions of users every day - the most prominent platform is the electronic tax office in Germany with secure authentication, web portals, mailbox and much more
• Ongoing project that continuously generates T\&M revenues
• More than 30 million income tax returns per year
• Model-based software development enables efficient updates and adjustments
• Result: Germany's largest eGovernment project (est. 1996)

Success Story Commerce: Web shop customized software development \& automated testing

• Quick, individual development of LIDL web shop
• Goals: Performance and reliability, especially weekly flyer campaigns
• mgm web shop framework: basis for individual development
• Automated technical QA with mgm QA tool set and shop reports
• Result: scalable, multi-client and internationally deployable overall system

Success Story Insurance: Digital marketplace development and workflow automation

• B2B2C insurance marketplace for business insurances like Cyber and D\&O (financial lines)
• Fully automated workflows for brokers, insurance companies and customers
• Digital signatures
• Usage of mgm Cosmo Digital Network: automatic synchronization of offers and policies between broker and insurers

mgm technology partners accelerates its growth with high profitability

[^0]
[^0]: ${ }^{1)}$ Based on unconsolidated quarterly segment financials, 2024: unaudited figures
${ }^{2)}$ Adjusted EBITDA (EBITDA before effects that are extraordinary or relate to other periods) of operating unit w/o holding company costs $\quad{ }^{3)}$ CAGR: Compound Annual Growth Rate

5

Group

financials

Allgeier P\&L shows growth and continuous margin improvement

Revenue ${ }^{1}$ in $€ \mathrm{~m}$

[^0]
[^0]: ${ }^{1)}$ Continuing operations according to IFRS including retroactive adjustments required by IFRS, 2024: unaudited figures
${ }^{2)}$ EBITDA before effects that are extraordinary or relate to other periods
${ }^{3)}$ CAGR: Compound Annual Growth Rate

Leeway for further M\&A

€ 200 m

Revolving credit facility

by a bank consortium with a term until at least April 2028
thereof $€ 50 \mathrm{~m}$
hedged against rising interest rates by means of an interest rate swap

€ 60 m

Promissory note loan (Schuldschein)

by a bank consortium with a term of $5 \& 7$ yrs (2027/2029)
thereof $€ 31 \mathrm{~m}$
with fixed interest

[^0]
[^0]: ${ }^{1)}$ as of June 30, 2024 (unaudited figures)
${ }^{2)}$ Net debt-to-Pro-forma Adjusted EBITDA (LTM) ratio according to revolving credit facility as of December 31, 2023

Performance \& stability of Allgeier are underlined by key figures

$94 \%$

Revenue from existing clients ${ }^{1}$
Stable \& loyal customer base

$137,423 €$

Revenue per capita ${ }^{2}$

12,4 yrs

Relationship length top 20 clients (avg) ${ }^{2}$

$+22 \%$

Revenue growth top 20 clients ${ }^{2}$ (CAGR 2015-2023)

2,526

Customers (total) ${ }^{1}$

$58 \quad 57 \quad 73$

$>1 \mathrm{~m} €$

2020202120222023
Customers with revenues $>1 \mathrm{~m} €^{2}$

$62 \%$

Proportion of academics ${ }^{2}$

No. of employees ${ }^{2}$

[^0]
[^0]: ${ }^{1}$ Revenue FY 2023 from existing customers with revenues of at least 1k EUR p.a. ${ }^{2}$ as of December 31, 2023, respectively as of year-end

ALLGEIER

Thank

YOU

Postal address

Allgeier SE
Einsteinstrasse 172 - Blue Tower
D-81677 Munich
Phone: +49 89 998421-0

Contact

Investor Relations
ir@allgeier.com

Web
www.allgeier.com/en/investor-relations

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