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Allgeier SE — Investor Presentation 2021
Oct 1, 2021
28_ip_2021-10-01_41c315ad-ddec-4fef-af46-f4cdaba52612.pdf
Investor Presentation
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Investor Presentation October 2021
Agenda
Allgeier at a glance Market trends Business overview Financials Strategy
Allgeier at a glance
12 % Adj. EBITDA CAGR1,2,3 (2016-2020)
€352m Revenue 2020 1
€30m Adj. EBITDA 2020 1,3
2,500 employees 4 ~700 freelance experts 4
81 acquisitions 10 disinvestments (2005-2021)
Allgeier key facts post spin-off
IT holding with a successful buy & build strategy for more than 15 years
Full IT and software services portfolio ranging from high-end software development to business efficiency solutions for digitization and business transformation
Focus on digitization needs of public and private sector clients in the German-speaking market
Broad and stable customer base consisting of large enterprises, mid-sized companies and public sector clients
At a glance
2,000 Avg. customers 2020
Cornerstones of the Allgeier story with the aim of significantly increasing the value of the company
One of the major German full-service providers for software solutions and IT services with excellent proprietary software products and more than 2,000 employees
Focus on the German market as the largest IT market in Europe with a volume of more than € 25 billion for software and IT services Broad customer base of more than 2,000 clients from the public sector, large corporations as well as industry- and market-leading SMEs
Sustainable growth above market average, building on a lean holding structure and a strong financial basis with increasing gross and earnings margins
Allgeier's buy & build competence is underlined by its M&A track record
1) Based on historical consolidated Allgeier group financials according to IFRS including Nagarro group (discontinued operations)
2) Compound Annual Growth Rate 2005-2020
3) Based on combined financial statements of Nagarro group
▪ Entities highlighted formed the spun-off Nagarro group
At a glance
Experienced and entrepreneurial management team
Dr. Marcus Goedsche Management Board
Munich, Germany
With Allgeier since 2007 Board member since 2008
Hubert Rohrer Management Board
Bremen, Germany
With Allgeier since 1986 Board member since 2013
Market trends
Allgeier participates in market trends in a growing European IT market
Business overview
- developer as leading provider of e-government, commerce and insurance solutions
-
Covering a comprehensive spectrum of digitization expertise along the three units mgm technology partners, mgm consulting partners and mgm security partners
-
enterprise services, experts and cyber security units to create a strong joint full-service IT offering
- Focus on deepening of customer relationships, participation in major tenders and pitches in the field of IT services as one-stop shop for the entire IT portfolio with the aim to enhance value-add and achieve higher margins
Allgeier re-organized the segments to emphasize its core operations
Enterprise IT – Fully fledged German software project and IT services provider
Hubert Rohrer Member of the Allgeier SE Management Board
24 locations in Germany 6 locations in Austria, Switzerland and Turkey 1
1,700 IT experts
1
600 freelance IT experts
1
Full-range IT solutions & services provider for customers' mission-critical processes, focusing on for large software projects & long-term managed services/maintenance contracts in the areas of
- business efficiency solutions
- open-source & e-government solutions
- cyber security solutions & services
- business process management & enterprise content management
- cloud solutions (Azure, AWS, open-source cloud, containerization)
- mobile applications
Extensive customer base of ~500 large enterprises
Business focus
Comprehensive project & IT services portfolio:
- market-leading software products and business digitalization platforms
- own IP-based architecture & software solutions
- in-depth process know-how & consulting expertise
- large resource pool of highly qualified IT & engineering experts ensuring scalability & flexibility
Business with recurring nature – revenues by T&M & license fees
Broad customer base is a core value of Enterprise IT
- Building a central document collaboration platform for Vodafone in Germany and other countries as well as subsidiaries of Vodafone
- Migration of >4.5bn 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
Business overview
Customer story Vodafone Project OneDMS: Selected clients
Enterprise IT sustains a broad and loyal customer base
Business overview
Customer diversification1 Number of accounts1
Industry segmentation1
mgm technology partners – High-end specialist for digitization & disruptive technology and consulting services
Consulting and solution provider for digitization projects & one of the leading service providers for e-government in Germany
Implementation of own platforms (i. e. "A12") & development of highly available & highly secure enterprise applications & platforms for crisis-resistant sectors
Enabling digital sovereignty by a disruptive software development process
Serving the full range of digitization topics:
management consulting, digital transformation & web application security
Hamarz Mehmanesh CEO
10 locations in Germany 6 locations in France, Czech Republic, Switzerland, Austria, USA and Vietnam1
800 software developers & consultants 1 >50 freelance IT experts
Business focus
Customer story ELSTER
mgm technology partners' success is underlined by key public & enterprise accounts
- mgm platforms are used by millions of users every day the most prominent platform is the electronic tax system ELSTER
- ELSTER is the largest and best-known e-government solution from Germany and one of the best references
- Online since >15 years safe, easily accessible, highly available & scalable; permanent access for 30m households and 5m companies
- Modern open-source technology with proprietary IT and modelbased approach that allows flexibility and customization
- High performance and stability for up to 1,000 system requests per second
- Ongoing project that continuously generates T&M revenues
Selected clients
mgm technology partners has in-depth know-how in commerce and e-government
Customer diversification1 Number of accounts1
Industry segmentation1
Financials
Gross profit & margin1
in € m Adj. EBITDA & margin1,3 Revenue1in € m in € m
Allgeier P&L comprises of sustainable growth and restructuring of parts of the business
1) Continuing operations according to IFRS
2) Compound Annual Growth Rate 2017-2019 3) EBITDA before effects that are extraordinary or relate to other periods
www.allgeier.com
Allgeier has sufficient headroom for future M&A
€140m
New revolving credit facility by a bank consortium
Post Nagarro spinoff …
… Allgeier has kept most of the holding costs with room for improvement and
… Nagarro has taken on the majority of net debt as of spin-off date
1) Based on partly unaudited financials of continued operations according to IFRS 2) Net debt-to-EBITDA (LTM) ratio
www.allgeier.com
Enterprise IT is showing growth after successful reorganization and notable increase in earnings
1) Based on unconsolidated quarterly segment financials according to IFRS
81 71 74 75 77 75 2018 2019 2020 2021 18 18 20 18 Gross profit & margin1 in € m Adj. EBITDA & margin1,3 Revenue1 in € m in € m 73 2 %2 -3 %2 29 %2
www.allgeier.com
mgm technology partners shows continuous growth with high profitability
1) Based on quarterly segment financials according to IFRS
Guidance for the 2021 financial year
2021
For the FY 2021, revenues are expected to be between €380–420m
www.allgeier.com 1) EBITDA before effects that are extraordinary or relate to other periods 23
€39–43m
(corresponding to an adjusted EBITDA margin of 10%)
Strategy
Allgeier creates shareholder value by …
Postal address
Einsteinstrasse 172 – Blue Tower I D-81677 Munich Phone: +49 89 998421-0
Contact
Investor Relations [email protected]
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www.allgeier.com/en/investor-relations