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Proact strives to give the shareholders, investors and financial analysts transparent, relevant and accurate information to increase knowledge of the Group’s operations and share

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Proact Annual Report 2022 published

· Annual Report 2022 available for download and printed version available for order · The Annual Report 2022 publication consists of Proact’s Financial report 2022, the Sustainability Report 2022, the Remuneration Report 2022 and the…

Year-end report 2022

Strong organic growth and good profitability

Proact Annual Report 2021 published

· Annual Report 2021 available for download and printed version available for order · The Annual Report 2021 publication consists of Proact’s Financial report 2021, the Sustainability Report 2021, the Remuneration Report 2021 and the…

Year-end report 2021

Strong cloud services revenues and good demand despite delivery delays

Year-end report 2020

Very strong result and good development in contracted cloud services

Jonas Hasselberg CEO Proact

Solna 8 February, 2024

A strong fourth quarter with good growth within cloud services.

Comments from the CEO of Proact

A strong fourth quarter with continued good development in the services business in most of the markets concludes another successful year for Proact.

Compared to last year’s record quarter, where sales increased by more than 50%, the revenue in the quarter fell by 5.6% to SEK 1,360 million (1,440) and organic growth amounted to -6.9%.

The revenue in the systems business decreased by 11% and organically by 11.4% compared to the same quarter last year. The decline can largely be explained by the strong recovery in system sales in the second half of 2022 when the backlog during the semiconductor shortage could be delivered. To some extent, the quarter has also been characterised by longer sales cycles and a more reserved market.

The services business continued to show good growth in most markets during the quarter driven by cloud and support services that more than compensated for a weaker development in consulting services, linked to the system business. In total, the services business increased by 4.8% to SEK 547 million (522) and organically by 1.9%. Recurring revenues from contracted cloud and support services increased by 12.6% to an annual rate of SEK 1,748 million (1,552).

We concluded an agreement for our contracted cloud services to a record high SEK 197 million (142) with the majority in BU West and BU Nordic & Baltics, which provides a good platform for future growth. There is a good demand for our solutions and services and Proact is well positioned when our customers and the market move towards more complex hybrid cloud solutions.

The cost efficiency program that was launched during the second quarter has been implemented and the effects are visible in both COGS and selling and administrative expenses. Cost efficiencies and the growth in the services business compensate for a slightly lower margin in the system business, which results in a gross margin after depreciation in line with the previous year, 22.2% (22.5).

Adjusted EBITA decreased in the quarter to SEK 91 million (102), which corresponds to a margin of about 6.7% (7.1) as the lower income was not fully compensated by lower costs and other efficiencies.

Thanks to a strong balance sheet, during the quarter we initiated a share buy-back program in accordance to the mandate given at the 2023 annual general meeting and within the framework we have so far acquired 218,500 shares.

Close cooperation with customers and partners is our highest priority. In the 2023 customer survey, we were awarded a Net Promoter Score (NPS) of 59, which is a significant increase from last year’s 46. During the quarter, Dell recognised Proact with two awards for our work focusing on data protection and security and data center sales. We are also very proud to be the first partner in Sweden to be able to offer our own support for Dell PowerStore. We have also expanded our cloud competence within Microsoft Azure.

During the quarter, we implemented changes in the group management, where in January we welcomed Maria Gomez as the new Business Unit Director for BU Central and announced that Noora Jayasekara will take over as the new CFO in the spring. Maria and Noora both bring solid experience and broad competence that will contribute to Proact’s continued journey of growth and success.

Our long-term goals of 10% revenue growth, of which about half organic and 8% EBITA margin remain, and we are well equipped with a strong market offer and implemented efficiency improvements.

I want to thank our customers and partners for the past year and above all I want to thank all colleagues for their commitment that makes Proact the great company we are.

We have an exciting year ahead that I look forward to with optimism.

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