adesso SE Company Presentation, November 2020 2 11/2020 adesso SE - - PowerPoint PPT Presentation

Company Presentation, November 2020

adesso SE

Partner in digital transformation

11/2020 adesso SE 2

adesso optimises the core business processes of companies by IT-Consulting, developing individual software and industry solutions.

Our philosophy

11/2020 adesso SE 3

Success factors and growth

11/2020 adesso SE 4

more than 4,471 employees

adesso Group

as at 30 September 2020

Group sales 2019

EUR 449.7 million

Expected sales in 2020

> EUR 500 million Awards

as an employer

Constantly

profitable

Cash at year-end 2019

EUR 46 million

Our Portfolio

11/2020 adesso SE 5

>>> business

Strategy > Process

Business Consulting IT Consulting Software Development IT Management

technology <<<

Process > Architecture Architecture > Application Application > Operation IT-Services (about 80 % of Sales) IT-Solutions (about 20 % of Sales)

Industry Solutions Content Solutions Mobile Solutions

Equity Story

11/2020 adesso SE 6

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

11/2020 adesso SE 7

Tried-and-tested model for expanding sector-wide presence Transfer of model to new sectors: Start a new core sector every 2-3 years Ramp-up-phase: Automotive Start 2019: Manufacturing Regional expansion Creation of new technology areas Creation of a product & solutions portfolio

Growth Model

CONSULTING DEVELOPMENT SOLUTIONS

INSURANCE BANKS HEALTH LOTTERY PUPLIC AUTHORITIES AUTOMOTIVE MANUFACTURING INDUSTRY

Geographic Expansion | DACH

11/2020 adesso SE 8

HAMBURG BASEL BERN ZURICH STRALSUND HANNOVER BERLIN DORTMUND ESSEN JENA AACHEN COLOGNE FRANKFURT NUREMBERG KARLSRUHE STUTTGART MUNICH VIENNA LAUSANNE REUTLINGEN DUSSELDORF MUCH BREMEN MUENSTER BONN NEUMÜNSTER ROSTOCK

New offices in Germany and Switzerland

Bonn Leipzig Potsdam Walldorf Lugano

LEIPZIG LUGANO POTSDAM WALLDORF

Geographic Expansion | International

11/2020 adesso SE 9

BARCELONA ISTANBUL SOFIA JEREZ DE LA FRONTERA MADRID BUDAPEST AMSTERDAM BOSTON LONDON

New international offices

Budapest Madrid Amsterdam Nieuwegein (Utrecht)

NIEUWEGEIN

Business Model

MARGIN INNOVATION GROWTH

Portfolio expansion New business models Utilisation Daily rates Project efficiency License & Maintenance Costs / changes per FTE

• Personnel to daily rates
• Travel & offices

EPS / DIVIDEND

11/2020 adesso SE 10

Grow each sector Enter new sectors Product business International business Recruiting M&A

adesso insurance solutions / in|sure Ecosphere

11/2020 adesso SE 11

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 stage

adesso banking solutions (JV) – New core banking system provider

11/2020 adesso SE 12

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 products

Strong growth in sales and operating profit / IFRS 16 effect on EBITDA

11/2020 adesso SE 13

Sales adesso Germany up 17 % Other contries 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)

Drivers

adesso playbook 2020

11/2020 adesso SE 14

Manage the Uncertainty of the Corona-Crisis Strengthen utilisation and profitability Establish Corporate Account Management Further licence sale with in|sure and new modules Continued investments into products Strengthen efforts around new industry solutions Grow Hungary and Netherlands Support regional and portfolio expansion M&A-transaction

Update 9M 2020

11/2020 adesso SE 15

Sales growth of 17 % despite COVID19-pandemic

11/2020 adesso SE 16

17 % total sales growth

Germany up 15 % Other contries up 23 %

Sales drivers Health, Public & Manufacturing

13 % growth in headcount

Germany up 11 % Other countries 24 %

Sales

Sales split 9M 2020 (1)

11/2020 adesso SE 17

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 Manufacturing

Sales split 9M 2020 (2)

11/2020 adesso SE 18

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 %

Growth in operating profit EBITDA by 63 %

11/2020 adesso SE 19

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- year Operating Profit

EBITDA increases more than sales due to OOE savings

11/2020 adesso SE 20 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 %

Tax quota on normal level leads to 183 %-increase of EPS

11/2020 adesso SE 21 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 %

Balance sheet and financial KPIs

11/2020 adesso SE 22

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

11/2020 adesso SE 23 IFRS in EUR m

9M 2019 9M 2020 % of raised Guidance Guidance 2020 (raised) Guidance 2020 (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 %

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

Guidance 2020 raised after strong Q3-figures

adesso business model proves to be quite resilient against corona crisis

11/2020 adesso SE 24

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 projects

Acquisitions in the Netherlands and in Hungary in Q4 2020

11/2020 adesso SE 25

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-Technology

Thank you!

11/2020 adesso SE 26 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/

Appendix

11/2020 adesso SE 27

References

11/2020 adesso SE 28

Key figures (Quarters)

11/2020 adesso SE 29

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

Key figures (FY)

11/2020 adesso SE 30

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

Shareholder Structure

11/2020 adesso SE 31

The share

11/2020 adesso SE 32

Market Cap raised by 37 % to EUR 451.5 million after 9M 2020 Shareprice EUR 73.00 as at 30 September 2020

adesso share, Basic Data

11/2020 adesso SE 33 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 Nominal value No share with nominal value; EUR 1.00 (mathematically) Share capital 6,185,343 Voting rights per Share 1 Index CDAX, DAXsector All Software, DAXsubsector All IT-Services, General All-Share, General Standard Index Reporting Standard IFRS End of fiscal year 31 Dec. Paying Agent DZ BANK AG, Frankfurt/Main

Shareholdings

11/2020 adesso SE 34

Executive Board (1)

11/2020 adesso SE 35

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 subsidiary 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 and Microsoft as well as for the foreign subsidiaries adesso Schweiz AG and adesso Austria GmbH. 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 and medgineering 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.

Executive Board (2)

11/2020 adesso SE 36

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 subsidiary adesso insurance solutions GmbH, which bundles adesso's product business in the insurance sector. 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.

Supervisory Board

11/2020 adesso SE 37

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 company

Important Dates 2020/21

11/2020 adesso SE 38

Date Event

2020-01-09 to 10 23nd ODDO BHF Forum, Lyon 2020-02-24 Roadshow, Frankfurt/Main 2020-03-31 Publication of the 2019 annual report, financial press / analyst conference, Dortmund 2020-05-14 Interim announcement of the group within the 1st half-year 2020-06-03 Regular (virtual) ASM, Dortmund 2020-06-08 Dividend Payment 2020-06-30 to 2020-07-02 Online 1on1-Summer Summit (Spring Conference 2020) 2020-08-31 Publication of the 2020 half-year report 2020-09-01 to 02 German Fall Conference 1on1 Summit 2020 (virtual) 2020-09-21 Berenberg & Goldman Sachs Ninth German Corporate Conference (virtual) 2020-10-09 Roadshow, Paris (virtual) 2020-11-13 Interim announcement of the group within the 2nd half-year 2020-11-16 to 17 German Equity Forum Online, Frankfurt/Main (virtual) 2020-01-11 24nd ODDO BHF Forum, Lyon (virtual) 2021-01-18 to 20

• 20. German Corporate Conference (GCC) of UniCredit/Kepler Cheuvreux

Thank you!

11/2020 adesso SE 39 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/