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Q1 Interim report January – March 2025 A reliable, present and independent European partner that combines deep technical expertise with local understanding.
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Agenda President & CEO Magnus Lönn CFO Noora Jayasekara Proact introduction Proact’s market Quarterly highlights Financial results Summary Proact 2025 Q1 Interim Report 2
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+ US office Proact is a leading IT expert helping customers secure business critical data via world-class hybrid cloud solutions Proact introduction Proact introduction Proact in brief • Founded in 1994, Proact has secured business critical data & pushed the limits of technology while delivering business agility for 3 decades • Serving ~2,000 medium and large enterprise customers across Europe • SEK ~4,888 million turnover with stable finances • Listed on Nasdaq Stockholm since 1999 (ticker: PACT) • A local trusted European partner with ~1,200 Employees with industry- leading skills & expertise • We support our customers at every step of their data journey. Our flexible deployment models enable delivery anywhere Hyper-scaler data center Proact data centers Customer data center Deployment models Start utilis ing the advan tages w ith Hybrid cloud Modern worksp ace Self-service and automati on Any app licati on. Anywhere. Flexib le & agi le scalabi lity Faster di gitali zati on & DevOp s ho stedp rivate p ublic Proact office Geographical footprint 8% 57% 13% 22% Revenue and EBITA development (SEKm) Revenue split, 2025 R12 Systems Support Services Consulting Services Managed Cloud Services (MCS) 2021 3,683 2025 R12 4,888 +33% 2025 R12 2021 197,5 330,8 +67% Revenue EBITA Proact 2025 Q1 Interim Report 3
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Proact is present in Northern Europe distributed across four Business Units; Hybrid cloud services through our four main delivery HUBs Proact introduction Proact geographical presence and business units Nordic & Baltics • c. SEK 2,650m revenue • 323 employees • 100+ sales employees • 150 cloud experts • 830 customers Central • c. SEK 868m revenue • 269 employees • 60 sales employees • 140 cloud experts • 545 customers UK • c. SEK 682m revenue • 252 employees • 70+ sales employees • 100 cloud experts • 423 customers West • c. SEK 799m revenue • 283 employees • 45 sales employees • 220 cloud experts • 382 customers SE UK NL DE Delivery success factors • Four main delivery HUBs across Europe • Managing customer data and infrastructure, regardless deployment (on -prem, private cloud, public cloud, hybrid combinations) • Proximity to our customers with local expert skills • Wide range of standardised and highly flexible tailor - made services • 24/7 helpdesk , cloud and security specialists • ServiceNow customer tooling • ISO certified Europe-based delivery HUBs Standardised and local Best-in-class security, processes and tools US office+ Note: Figures are estimates; Revenue showing rolling 12 months, incl. internal sales; No. of employees reflect FTEs Delivery hub Proact 2025 Q1 Interim Report 4
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We offer best-in-class services; Our broad offering enable us to support our customers wherever they are in their cloud journey Proact introduction Proact offering Systems Independent provider and value - added reseller of hardware and software, and system architectured solution Support services Premium support for the Systems business (high attach rate of c. 70% to system sales) Managed Cloud Services Wide range of services, such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Storage and Security, as well as modern platforms based on Kubernetes Consulting services Broad spectrum of services from strategic consulting services and solution architect design to installation (incl. Kubernetes and Public cloud transformation services) Revenue streams1Selected expert skills (non-exhaustive) Cybersecurity solutions Proact has two 24/7 Security Operations Centers (SOCs) that protect Proact and customer infrastructure all day, every day Cloud Native services Through our Conoa brand, we help companies build the cloud native, container and Kubernetes infrastructure incl. Server as a Code and DevOps services Microsoft consulting Strong consulting expertise, supporting with digital transformation services based on "cloud -first" technologies from Microsoft Azure and Microsoft 365 AI infrastructure Proact can support customers on their AI journey, offering modern solutions that enable automation and innovation. 1. % of revenue rolling 12 months 2025 8% 22% 13% 57% Proact 2025 Q1 Interim Report 5
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Proact is well-positioned in an attractive growing market, with trends such as Cybersecurity and AI driving the demand for data and IT solutions Proact’s market Market trends and development Strong drivers and favourable trends Large and fast-growing data volumes… …complemented by a strong Cybersecurity market growing double digits…(SEKb) …and supporting market statistics +40% p.a. AI and GenAI revenue growth 2022 -32 Cloud as a business necessity by 2028 Shift from being a technology disruptor Resilient market Limited impact by recession ~USD 14 trillion Global cost of cybercrime in 2028, rising from USD 9 trillion in 2024 Hybrid cloud adoption Digital transformation, AI and ML Information security Sustainability and Regulation Increased demand for Data Storage Cyber security market, forecast 2025-29 Sources: Gartner; Bloomberg; Statista; IDC WW Global DataSphere and Global StorageSphere 1,963 2,933 2024 2028 +11% 84,447 101,349 122,819 149,023 181,869 221,178 2022 20232021 2024 20262025 +45% +80% Proact 2025 Q1 Interim Report 6 Global data, forecast 2021-26 (Exabytes)
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Deep-dive: AI – key technology reshaping IT infrastructure Proact’s market Trends and market development The solution Separate environment needed An early conclusion was to create a separate environment fully isolated from the university’s regular IT infrastructure. The users are essentially also different from the regular university user group. Many research groups include associates from other universities in Sweden or abroad who need access on equal terms with University of Gothenburg employees. The solution was to build a separate user database from scratch with Active Directory. To launch the separate research environment, acquiring dedicated hardware followed naturally. The university already uses Dell servers and NetApp storage systems, and for the new environment, Proact proposed a similar setup. Modern container technology The software environment is based on Linux and container technology for application development. The university selected Red Hat OpenShift, a hybrid cloud platform that includes Kubernetes for container management with a Linux foundation. • Artificial intelligence has quickly established itself as a key technology with the potential to transform entire industries. • There are several clear signs pointing to a strong upturn in AI-related investments. • AI is driving a new wave of infrastructure investments – where performance, availability and security are crucial. • With our expertise in storage, backup, cyber security and automation, Proact is well positioned as a key partner for creating cost- effective and scalable AI IT infrastructures. – We were already used to these devices from running our regular environment, so there was no need to learn about new stuff. Proact came up with affordable solutions matching our needs, with servers and storage for the new environment. We are very happy with it. Carl-Johan Schenström , Infrastructure specialist The completed solution was named the Trusted Research Environment (TRE). It was first tried as a proof of concept, which was successful. With TRE, each research project is assigned a so-called vault to which authorised users within the project are given access. They log into a workspace usually set up as a remote Windows desktop. The multi-user environment enables collaboration and makes it easy to scale resources such as compute capacity and storage as needed. So far, 70 vaults have been implemented and are used by researchers across a wide range, from genetics and biostatistics to sport science and health. Demand is steadily rising, and there is ample room for growth in the new environment. Adding AI resources The university continues to enhance TRE, adding functions to meet new needs and to benefit from tech advancement. AI and machine learning are particularly in demand. Therefore, additional GPU resources have been added to the environment to run services like transcription (using Whisper from Open AI), which has quickly become popular. The standardised environment not only saves time for the IT department but for research leaders too, as it facilitates the approval process for new projects Proact 2025 Q1 Interim Report 7
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We provide mission-critical services to customers across all industry verticals Proact introduction Proact offering DATA PROTECTION BACKUP & RECOVERY SECURITY OPERATIONS INCIDENT RESPONSE CYBERSECURITY & RESILIENCE TECHNOLOGY PORTFOLIO AI INFRASTRUCTURE CLOUD NATIVE & CONTAINERS MODERN INFRASTRUCTURE CORE INFRASTRUCTURE ON-PREMISES INFRASTRUCTURE DATA MANAGEMENT PRIVATE CLOUD INFRASTRUCTURE PUBLIC CLOUD INFRASTRUCTURE IMPLEMENT & VALIDATE DESIGEN & ARCHITECT ASSESS & ADVICE PROFESSIONAL SERVICES AS A SERVICE SERVICE MANAGEMENT PREMIUM SUPPORT TECHNOLOGY ONLY DELIVERY MODELS AVAILABILITY SCALABILITY EFFICIENCY SPEED SECURITY TRANSFORMATION KNOW-HOW ACCESS SUSTAINABILITY Proact 2025 Q1 Interim Report 8
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2025 Q1 highlights Quarterly highlights Revenue 1,215.5 SEKm (1 191.3) Organic growth 1.5% (-2.8) Recurring revenue 429.3 SEKm (441.5) Earnings per share 1.79 SEK (2.22) Adj. EBITA 79.0 SEKm (94.5) Adj. EBITA margin 6.5% (7.9) • The Board of Directors of Proact IT Group AB appointed Magnus Lönn as the new President and CEO of Proact. Magnus succeeded Jonas Hasselberg and started his new position on 1 March 2025. • Proact acquired BlakYaks Ltd, a British consulting company with cutting- edge expertise in cloud transformation and fully automated Microsoft Azure solutions. • Proact has been named Enterprise Partner of the Year 2025 by NetApp. The award recognises the company's outstanding achievements in data storage, cloud integration and digital transformation for businesses across Europe. Quarterly highlights Proact 2025 Q1 Interim Report 9
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Steady revenue growth of 2.0% driven by Nordic & Baltics, despite decline in service and cloud revenue Financial results Revenue development, 2024 Q1 – 2025 Q1 • Total revenue increased by 2.0% to SEK 1,215.5 million (1,191.3), primarily driven by strong performance in Nordic & Baltics. • Organic growth reached 1.5%, with the BlakYaks Ltd acquisition contributing positively by 0.6%. • System sales increased by 7.8% to SEK 688.1 million (638.2), largely driven by higher system sales in Nordic & Baltics, offset by lower sales in UK, West, and Central. • Service revenue decreased by -4.8% to SEK 524.0 million (550.5), reflecting weaker performance in the service business, particularly in West and Central. • Cloud service revenue declined by -6.0% to SEK 270.9 million (288.2), due to contract terminations and higher customer churn in West and Central. Note: Other incl. currency adjustments 50 1,215 Revenue Q1.2025 Other 1 Consulting Services 1,191 Revenue Q1 2024 -14 Managed Cloud Services -17 Support Services 5 Systems +2.0% 120 -20 UK -25 Nordic & Baltics 1,191 1,216 -49 West Revenue Q1 2025 Other -2 CentralRevenue Q1 2024 Revenue by revenue stream (SEKm) Revenue by Business Unit (SEKm) Proact 2025 Q1 Interim Report 10
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Growing share of recurring revenue at a 8.2% CAGR from 2020, currently making up 35% of total revenue Financial results Annualised recurring revenue development, 2020-2025 • ARR decreased -2.8 % in reported numbers. • New cloud service contracts signed totaling SEK 122.4 million (182.7). • Despite new contract signings, total cloud service revenue decreased by -6.0% to SEK 270.9 million (288.2), primarily due to contract terminations and higher customer churn in West and Central regions. • Improvements in Nordic & Baltics partially offset the decline but could not fully compensate. • Recurring revenue (revenue from cloud and support services) amounted to SEK 429.3 million (441.5), corresponding to an annual rate of SEK 1,717.1 million (1,766.1) and a decrease of -2.8 per cent. Note: Other incl. currency adjustments. Annual rate relative to rolling 12 months in 2025. 1,157 1,307 1,552 1,748 1,781 1,717 0 300 600 900 1,200 1,500 1,800 2021 2022 2023 SEKm 202520242020 8.2% Proact 2025 Q1 Interim Report 11 32% 37% 33% 36% 36% 35%ARR as % of total
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EBITA declined by -16.4% year-over-year, primarily due to lower service revenue and a slight reduction in gross margin Financial results EBITA development, 2024 Q1 – 2025 Q1 EBITA margin, % 94.5 79.0 15.1 EBITA Q1 2024 EBITA Q1 2025 Central -3.2 West -20.2 UK -7.2 Nordic & Baltics -16.4% 6,57,9 Proact 2025 Q1 Interim Report 12 Note: Other incl. currency adjustments • Adjusted EBITA decreased by -16.4 per cent in relation to a strong comparative quarter and amounted to SEK 79.0 million (94.5). • Adjusted EBITA margin decreased to 6.5% (7.9). • Positive development in Nordic & Baltics (SEK 15.1 million). • Significant negative contribution from the West region (SEK -20.2 million). UK and Central also contributed negatively, but to a lesser extent. • The decline was driven by lower revenue in the services business and a reduced gross margin. • We have initiated cost efficiency measures in UK, West and Central to create a more sustainable cost base over time.
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Net cash decreased from SEK 330 million in December 2024 to SEK 101 million by Q1 2025 Financial results Net cash development Q4 2024 - Q1 2025 (SEKm) Cash flow from operations Capital structure adaption and shareholder value creation 330 101 62 73 2024 Q4 EBIT Depreciation and other non-cash -23 Tax -57 Working Captial -206 M&A -9 CapEx -13 Dividend & Share buy-back -27 Amortisation leasing and other -2 Interest -28 FX 2025 Q1 Proact 2025 Q1 Interim Report 13 • Cash flow for the quarter amounted to SEK -217.5 million (41.0), of which SEK 55.4 million (103.7) was generated from operating activities. • Changes in working capital had a negative impact of SEK -57.0 million (-15.1) on cash flow. • Cash flow from operating activities was affected by a lower operating profit, tax payments, and increased working capital. • Cash flow from investing activities amounted to SEK -214,9 million (-10.6) with the quarter affected by the acquisition of BlakYaks Ltd of SEK 205.9 million. • Cash flow from financing activities was SEK -58,0 million (-52.1), amortisation of leasing liabilities , as well as the repurchase of own shares amounting to SEK 13.1 million (30.6).
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Strong growth and profitability in Nordic & Baltics – system sales drive double-digit revenue increase and improved adjusted EBITA Financial results Business Unit deep-dive: Nordic & Baltics • Denmark , Estonia, Finland, Latvia, Norway, Sweden and the US 58% Nordic & Baltics Share of total revenue 1 • Strong performance with revenue growth of 20.1% to SEK 717.9 million (597.6), driven primarily by continued demand in the systems business. • System revenue increased by 28.0% to SEK 499.5 million (390.3), largely due to several large deals in Sweden. • Service revenue grew by 5.4% to SEK 216.9 million (205.7). • Adjusted EBITA increased by 23.2% to SEK 80.4 million (65.3), driven by strong system sales and maintained cost control. • EBITA margin improved to 11.2% (10.9) during the quarter. Financial development Comments SEKm Q1 2025 Q1 2024 Change (%) Revenue 717.9 597.6 20.1% Adj. EBITA 80.4 65.3 23.2% Adj. EBITA margin (%) 11.2% 10.9% 0.3% 0 300 600 900 0 5 10 15 Q2 6.4% Q3 6.1% Q4 5.8% Q1 6.3% Q2 6.2% Q3 6.9% Q4 7.4% EBITA margin (%) 7.8% Q2 8.3% Q3 7.9% Q4 8.9% Q1 9.0% Q2 9.2% Revenue (SEKm) Q3 10.3% Q4 Q1 Q2Q1 Q4 10.4 7.0% Q1 6.3% Q3 Revenue EBITA LTM 20252024202320222021 Proact 2025 Q1 Interim Report 14 1. % of revenue 2025
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Revenue decline driven by lower system sales - offset by service growth and BlakYaks acquisition Financial results Business Unit deep-dive: UK • United Kingdom 13% UK Share of total revenue 1 Financial development Comments SEKm Q1 2025 Q1 2024 Change (%) Revenue 158.8 184.1 -13.7% Adj. EBITA 0.9 8.1 -88.7% Adj. EBITA margin (%) 0.6% 4.4% -3.8% • Revenue decreased -13,7% to SEK 158.8 million (184.1), primarily driven by lower system sales. • System revenue decreased by 29.9% to SEK 61.8 million (88.1), reflecting a tougher market environment. • Service revenue grew by 1.0% to SEK 97.0 million (96.0). • Adjusted EBITA decreased to SEK 0.9 million (8.1), corresponding to an EBITA margin of 0.6% (4.4%), mainly due to lower system sales volumes and continued pressure on gross margins. • BlakYaks contributed positively to adjusted EBITA with SEK 2.1 million, achieving a strong EBITA margin of 28.0%. • We have initiated cost efficiency measures to create a more sustainable cost base over time. 300 0 0 5 10 15 9.0% Q3 3.0% Q4 13.4% Q1 5.5% Q2 10.2% Q3 6.3% Q4 4.3% Q2 9.0% Q2 3.5% Q3 4.5% Q4 8.1% Q1 12.3% Q2 2.7% Q3 3.4% Q4 0.9% Q1 Q2 Q3 Q4 10.7% Q1 12.0% EBITA margin (%) Revenue (SEKm) Q1 Revenue EBITA LTM 20252024202320222021 Proact 2025 Q1 Interim Report 15 1. % of revenue 2025
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West Revenue decline and negative adjusted EBITA - impacted by lower sales and a strong comparable period last year Financial results Business Unit deep-dive: West • The Netherlands and Belgium 15% Share of total revenue 1 Financial development Comments SEKm Q1 2025 Q1 2024 Change (%) Revenue 180.5 229.4 -21.3% Adj. EBITA -4.2 16.0 -126.1% Adj. EBITA margin (%) -2.3% 7.0% -9.3% • Revenue decreased -21.3% to SEK 180.5 million (229.4), reflecting a downturn in both system and service revenue, primarily due to lower activity levels. • System revenue decreased by -39.5% to SEK 42.6 million (70.4), compared to a strong prior-year period. • Service revenue declined by -13.2% to SEK 137.7 million (158.7), driven mainly by: • Adjusted EBITA decreased to SEK -4.2 million (16.0), resulting in a negative EBITA margin of -2.3% (7.0%). • The decline in EBITA is primarily due to lower revenue, with efforts underway to create a more adaptable cost structure. • We have initiated cost efficiency measures to create a more sustainable cost base over time. 300 20 0 5 10 15 0 -5 9.9% Q3 12.3% Q4 10.0% Q1 11.5% Q2 10.0% Q3 13.7% Q4 5.1% Q2 0.7% Q2 4.4% Q3 12.9% Q4 16.0% Q1 7.0% Q2 9.4% Q3 3.9% Q4 -4.2% Q1 Q2 Q3 Q4 3.3% Q1 -2.6% EBITA margin (%) Revenue (SEKm) Q1 Revenue EBITA LTM 20252024202320222021 Proact 2025 Q1 Interim Report 16 1. % of revenue 2025
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• Germany and Czechia 15% Central Share of total revenue 1 Financial development Comments SEKm Q1 2025 Q1 2024 Change (%) Revenue 182.5 202.0 -9.7% Adj. EBITA -1.1 2.1 -154.8% Adj. EBITA margin (%) -0.6% 1.0% -1.7% • Revenue decreased -9.7% to SEK 182.5 million (202.0), impacting both system and service revenue. • System revenue decreased by -7.0% to SEK 82.6 million (88.8), due to fewer new large deals compared to the same period last year. • Service revenue declined by -13.0% to SEK 97.7 million (112.4), mainly driven by contract terminations and higher customer churn. • Adjusted EBITA decreased to SEK -1.1 million (2.1), resulting in a negative EBITA margin of - 0.6% (1.0%). • The EBITA decline is primarily due to lower revenue, particularly in the cloud services segment. • We have initiated cost efficiency measures to create a more sustainable cost base over time. Revenue decline and negative adjusted EBITA - primarily due to lower system and cloud services sales Financial results Business Unit deep-dive: Central 300 20 0 15 10 5 -50 Q4 3.1% Q1 16.6% Q2 10.2% Q3 15.8% Q4 6.3% Q1 9.6% Q2 11.3% Q3 16.6% Q4 2.1% Q1 17.6% Q2 5.7% Q3 5.8% Q4 -1.1% Q1 Q2 Q3 Q4Q3 6.7% Q2 5.7% Q1 7.2% EBITA margin (%) Revenue (SEKm) 1.5% Revenue EBITA LTM 20252024202320222021 Proact 2025 Q1 Interim Report 17 1. % of revenue 2025
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We continue to make good progress against our long -term financial targets on a full-year basis Financial results Financial development and long-term financial targets Sales EBITA Leverage ROCE Dividends 3,525 4,757 4,847 4,864 4,888 34.9% 2022 1.9% 2023 -3.0% 2024 0.5% 2025 R12 0.3% 2021 9% 197 313 285 351 331 6.6% 2022 5.9% 2023 5.6% 2024 6.8% 2025 R12 7.2% 2021 14% 2020 35% 2021 27% 31% 32% 2023 30% 2024 2022 2021 17.2% 2022 16.3% 13.4% 19.7% 2024 15.9% 20252023 227 2022 2023 2024 20252021 -80 -330 -101 261 Sales growth per annum 10% EBITA margin 8% Net debt / EBITDA <2 x Return on capital employed 20% Dividends as share of profit after tax 25-35% 0.75 0.48 -0.17 -0.21-0.06 Sales Y-o-Y growth Sales EBITA margin EBITA Net debt Leverage ROCE Dividends Proact 2025 Q1 Interim Report 18
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Summary Summary • Continued strong performance in Nordic & Baltics. • Strategic acquisition of BlakYaks in the UK strengthens our capabilities within cloud-native services, automation, and Microsoft Azure. • West and Central are facing challenges due to increased customer churn and expiring contracts, particularly within cloud services. In response, we have initiated cost-efficiency measures in UK, West and Central to establish a more sustainable cost structure over time. • Ongoing market uncertainty presents both risks and opportunities. In this context, Proact continues to stand out as a trusted, independent European partner with deep technical expertise and local presence. Proact 2025 Q1 Interim Report 19
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Thank you! Contacts Magnus Lönn, President & CEO magnus.lonn@proact.eu Noora Jayasekara, CFO noora.jayasekara@proact.eu Christopher Ramstedt, Group Communications Manager christopher.ramstedt@proact.eu Proact 2025 Q1 Interim Report 20