Cancom : Earnings Call Q1.24

Earnings Call Q1.24

14 May 2024

Rüdiger Rath, CEO

Thomas Stark, CFO

Earnings Call Q1.24 I 14 May 2024

DISCLAIMER

This presentation contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of CANCOM may differ materially from those expressed or implied by such forward- looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of revenue, margins or other financial items; any projections of the amount, timing or impact of cost savings; any statements of the plans, strategies and objectives of management for future operations, including any resulting cost savings or revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on CANCOM and its financial performance; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing.

Risks, uncertainties and assumptions include the need to address the many challenges facing CANCOM's businesses; the competitive pressures faced by CANCOM's businesses; risks associated with executing CANCOM's strategy; the impact of macroeconomic and geopolitical trends and events; the protection of CANCOM's intellectual property assets; the development and transition of new services and the enhancement of existing

services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by CANCOM and its suppliers, customers and partners; the hiring and retention of employees; integration and other risks associated with business combination and investment transactions; and other risks that are described in CANCOM's Annual Report for the financial year ended 31 December 2023.

CANCOM assumes no obligation and does not intend to update these forward-looking statements.

No representation or warranty - whether expressed or implied - is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained therein. Neither the company nor any of its affiliates shall have any liability whatsoever (in negligence or otherwise) for any loss arising from any use of this presentation or its content or otherwise arising in connection with this presentation.

This presentation does not constitute an offer or invitation to purchase, subscribe for, hold or sell any shares or other securities and neither this presentation nor any part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever

LEGAL NOTICE

Earnings Call Q1.24 I 14 May 2024

Significant Events in Q1.24

Revenue

EBITDA

OCF

Expected soft Q1.24 materializes; mid-sized customers delay hardware orders due to uncertainty about development of budgets and economic environment.

Lower trading business especially in Germany goes along with lower marketing fundings by OEMs and lower supplier bonuses; general cost increases.

Significant improvement in OCF to € +56.3m achieved, increase of almost € +100m on Q1.23, driven by lower receivables and inventories; corresponding OWC decline.

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Earnings Call Q1.24 I 14 May 2024

Group: Strong growth through successful M+A.

REVENUE							EBITDA MARGIN
€ million						+38.7%	%
Q1.24					440.6	6.9%
Q1.23			317.7			Organic: -6.3%	Q1.23: 7.6%
EBITDA
€ million			+26.1%		Soft Q1.24 in Germany, Austria
Q1.24		30.4
				more resilient but also affected.
Q1.23	24.1		Organic: -26.2%

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Earnings Call Q1.24 I 14 May 2024

Segment Germany: A slow Q1.24.

REVENUE			EBITDA MARGIN
€ million		-1.7%	%
Q1.24	292.9	6.2%
Q1.23	297.9	Organic: -6.9%	Q1.23: 7.5%

EBITDA € million

Q1.24	18.1	-18.7%
Q1.23	22.2
Organic: -26.9%

As expected, soft hardware business hurts topline; lower back ends and general cost increases.

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Earnings Call Q1.24 I 14 May 2024

Segment International: Strong start to the year.

REVENUE			EBITDA MARGIN
€ million			%
Q1.24	147.7	+646.6%	8.3%
Q1.23 19.8		Organic: +2.6%	Q1.23: 9.4%

EBITDA € million

Q1.24	12.3	+562.2%
Q1.23 1.9		Organic: -13.2%

Austrian market proves more resilient, CANCOM Austria with

8.4 percent EBITDA-margin for Q1.24.

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Earnings Call Q1.24 I 14 May 2024

Operating Cash Flow: Strongest Q1 in CANCOM history.

FY.22: -53.5			FY.23: +94.7			Q1.24: +56.3		NET CASH*
€ million			116.2								€ million
						104.6				211.5
						69.9					Q1.23: 330.4
							56.3
	-49.8	-43.6		-43.6	-36.2
-76.3
Q1.22	Q2.22	Q3.22	Q4.22	Q1.23	Q2.23	Q3.23	Q4.23	Q1.24	Q2.24	Q3.24	Q4.24

* Cash and cash equivalents - Current liabilities to credit institutions

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Earnings Call Q1.24 I 14 May 2024

CapEx: On target.

FY.22: 26.5

FY.23: 25.8

Q1.24: 6.5

€ million

8.0	8.9					8.5	7.7
	6.4					6.5
				5.1
				4.5
			3.2
Q1.22	Q2.22	Q3.22	Q4.22	Q1.23	Q2.23	Q3.23	Q4.23	Q1.24	Q2.24	Q3.24	Q4.24

CapEx to be expected on target for the full year.

CAPEX / REVENUE

%

1.5%

Q1.23: 1.4%

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Earnings Call Q1.24 I 14 May 2024

PPA based amortization and EPS effects.

PPA EFFECT ON AMORTIZATION		PPA EFFECT ON EPS
€ million	.26		€
2027	5.3 25		2027	0.11
2026	7.0		2026
2025	.24	8.7	2025
2024		11.8	2024
2023		8.3	2023

.22
.22		2023		2022
EARNINGS PER SHARE (€)
from continued operations (undiluted)	1.03	0.90
.21

0.15

0.18

0.25

0.17

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Earnings Call Q1.24 I 14 May 2024

Share buyback 2023: Completed.

Share buyback 2023			Status*
Start		3 July 2023
		# of shares bought	3,854,800
Maximum duration		until 30 June 2024		Volume used			€ 102,488,023.78
Maximum volume		€ 155 million		VWAP per share			€ 26.5871
Maximum # of shares	3,854,800		Programme ended			8 April 2024
(% of share capital)	(9.9%)

CANCOM currently holds 1,669,758 treasury shares.

*As per final notification on 8 April 2024

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