IONOS GROUP SE Corporate Presentation
April 2024
DISCLAIMER
Certain information set forth in this presentation contains "forward-looking information", including "future-oriented financial information" and "financial outlook" , under applicable securities laws (collectively referred to herein as forward-looking statements). Except for statements of historical fact ,the information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) the expected development of the Company's business, projects, and participations; (iii) execution of the Company's vision and growth strategy; (iv) completion of the Company's projects that are currently underway, in development or otherwise under consideration; (v) renewal of the Company's current supplier and other material agreements; and (vi) future liquidity, working capital, and capital requirements; (vii) currency exchange rates, most notably the EUR/USD exchange rates; (viii) changes in laws and regulations, including tax regulations; (ix) the impact of acquisitions including and related integration issues and reorganization measures, and (x) the general competitive conditions that, in each individual case, apply at a local, regional, national, andor global level.
Forward-looking statements are provided to allow (potential) investors the opportunity to understand management's beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment.
These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements. Even if future results of IONOS Group SE meet the expectations expressed, they may not be indicative of the results or developments in any subsequent periods.
Although forward-looking statements contained in this presentation are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
In the interests of clear and transparent reporting, financial presentations, the annual financial statements and interim statements of IONOS Group SE, as well as any ad-hoc announcements pursuant to Art.17 MAR and other financial information contain additional financial performance indicators to those required under International Financial Reporting Standards(IFRS), such as EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, EBIT and free cashflow. Information on the use, definition and calculation of these performance measures is provided in the Annual Consolidated Financial Statements 2023 of IONOS Group SE or is explained in an associated footnote.
Copyright © IONOS Group SE 2024 | 2 |
Beyond the IONOSphere - Our performance drivers
€1.42bn total revenue (10% yoy growth) | ~80% recurring revenues2 |
High revenue visibility and predictability1 | Subscription-based business model |
€390mn adj. EBITDA3(27.4% margin) | ~90% cash conversion rate4 |
Attractive profitability | Highly cash generative |
~6.19mn customers | Leverage 2.7x5 |
Unparalleled European SMB customer access | Deleveraging by ~0.5x per year going forward |
€ 14.70 ARPU(+5.0% yoy) | ~NPS of >327 |
Strong cross and up-selling | Quick and predictable recovery of CAC |
14x+ CLTV/CAC8 | ~12 months payback9 |
Targeted and efficient customer acquisition | Quick and predictable recovery of CAC |
1Refers to webhosting market share based on company data analysis and HostAdvice; 2Equivalent to total revenue excl. revenue from Aftermarket business (sedo); 3FY2023, adj. EBITDA is defined as EBITDA adjusted for either non-recurring items or non-operating items; 4Defined as adj. EBITDA less maintenance capital expenditures divided by adj. EBITDA. Maintenance capital expenditures = capital expenditures for replacements and in the ordinary course of business; 5Leverage 31.12.2023, defined as Net Debt / LTM adj. EBITDA; 6 Based on external revenues excl. Aftermarket; 7NPS as per Q4 2023; 8Refers to IONOS brand. Customer Acquisition Cost (CAC) calculated as the amount of recurring and variable marketing expenses (in €) divided by the number of customers gained over a period, Customer Lifetime Value (CLTV) calculated as (1/churn)*Average Revenue Per Customer*Gross Profit contribution; 9 incl. discounts
Copyright © IONOS Group SE 2024 | 3 |
IONOS - The Leading European SMB digitalization partner & trusted cloud enabler
€305mn
(22%)
Aftermarket business revenue
€150mn
(11%)
Cloud Solutions
revenue
€924mn (67%)
Web Presence & Productivity revenue
(excl. Aftermarket)
~22mn | |
European | Domains listed and |
market leader | 10mn domains parked |
Ready for profitability | EBITDA reinvested into |
within the next 2-3 years | future growth |
#1 | #2 | ||
Market positions in | ~€120mn | Exceptional EBITDA margins | |
6 core European markets | annual revenue2 | and cash conversion rates | |
in North America | paired with strong growth |
€1,423
mn total revenue1 in FY 2023
- Total revenue including ~€45mn revenue from Hosting Services to UI Group companies
- excl. Aftermarket
Copyright © IONOS Group SE 2024 | 4 |
Comprehensive product portfolio, first class customer care and infrastructure
Strong customer support organisation (Personal Service Agent & 24/7 multi-channel support)
WEB PRESENCE & PRODUCTIVITY | CLOUD SOLUTIONS | |||||||
One-stop-shop for all digitalization needs of SMBs | Trusted European cloud provider | |||||||
for SMBs and enterprises | ||||||||
Domains | E-mail & Office | Web Hosting & Sitebuilder | E-commerce | Server Hosting | Value Added Services | Public Cloud | Private Cloud | Bare Metal Cloud Managed Services |
SMBs typically spending €10-20 per month | SMBs, mid-market & public sector, | |||||||
typically spending €300-500+ per month | ||||||||
FY23 revenue: ~90%1 | FY23 revenue: ~10%1 | |||||||
Internet factory | ||||||||
Unified product platforms | | Joint group developments | Technology stack with >100,000 servers in 31 data centers2 | |||||||
Broad portfolio | Open-source | Future-oriented design | State-of-the-art | Scalable |
Source: Company information | Copyright © IONOS Group SE 2024 | 5 |
1 Refers to revenue from contracts with customers; 2 o/w 11 fully owned and 20 co-location data centers, several of them geo-redundant |
IONOS Equity Story
Copyright © IONOS SE 2024 | 6 |
Championing a large, attractive and fast-growing market driven by secular trends
Large and untapped SMB core target group1
>90mn
SMBs in North America
and Europe
~58mn
SMBs across Europe
~6.2mn
IONOS
customers2
96%+
of SMBs in Europe are micro SMBs and solo- preneurs
Only ~50%
of solo-preneurs and micro SMBs have a website
Only ~27%
of SMBs with
websites use an
e-commerce solution
IONOS addressable market '15-263 | ||||
€bn | 89 | |||
+19% | ||||
+15% | CAGR | 55 | ||
CAGR | 38 | |||
16 | 15 | |||
3 | 34 | |||
14 | 22 | |||
2015A | 2021A | 2026F |
Web Presence & Productivity | Cloud | ||||
CAGR | '15-21 | '21-26 | |||
CLOUD | 35% | 29% | |||
WEB PRESENCE & PRODUCTIVITY | 8% | 9% |
Sources: Company Data Analysis, company information, McKinsey: The SMB Market for Digitization and Cloud Solutions, 1 SMB core target group shown in the chart includes companies with <250 FTE in 2020; 2 Total
number of IONOS customers (mostly SMBs), as of December 31, 2023; 3 McKinsey: The SMB Market for Digitization and Cloud Solutions, Cloud North America and server hosting North America deducted from totalCopyright © IONOS Group SE 2024 7 McKinsey figures to align with IONOS current addressability
IONOS is the European market leader in Webhosting, with scale and diversification across attractive geographies and products
1st in Europe overall1
Market share
Footprint in 18 markets | Webhosting market share |
in Europe (%)1 |
GERMANY
SPAIN
AUSTRIA
UK
POLAND
FRANCE
1st51%
1st21%
1st19%
2nd13%
2nd11%
2nd 10%
>€120mn revenues in North America2 with solid growth and profitability
Canada
United States
Mexico
Portugal
Spain
Sweden
UK
Netherlands | Poland |
Germany | |
Czechia Slovakia | |
France | Austria Hungary Romania |
Italy Bulgaria
>2x |
1 Refers to webhosting market shares based on Company Data Analysis and HostAdvice. Europe includes Germany, UK, Spain, France, Poland and Austria. Market size (in €) of the European web hosting market in 2021 by
country based on Company Data Analysis. IONOS shares based on Web Presence & Productivity revenue in 2021. OVH France based on estimated revenue in 2021 and Company Data Analysis. Other competitors based on | Copyright © IONOS Group SE 2024 | 8 |
number of domains hosted by web hosting companies as published by HostAdvice as of September 2022. Hyperscalers excluded since not considered part of relevant peer group. 2 excl. Aftermarket |
IONOS sees competitive advantages against its competitors in the Web Presence & Productivity market
Why | digital platform | |
sees competitive | VS | providers |
advantages |
Why | use case | |
sees competitive | VS | focus players |
advantages |
1
Scale
2
Service
3
Security
4
Efficiency
Highly focused product portfolio with an extensive footprint across Europe and strong network effects
Outstanding award winning personal support as trusted partner
Track record of high data privacy and security standards combined with strong reliability across the last 25 years
Efficient marketing,
leveraging intra-group synergies
1One-stop-shop solution provider, offering a curated portfolio of products tailored for successful business growth of
One-stop shop | customers of all sizes without changing the provider |
Copyright © IONOS Group SE 2024 | 9 |
Source: Company information
Our leading IONOS Cloud offering…
Public Cloud - Services and Solution | 2023 | ||
Hyperscale Infrastructure and Platform Services | Germany1 | ||
2023 ISG Provider Lens Leader
IONOS is Leader in the area of Hyperscale
Infrastructure and Platform Services
IONOS offers powerful, broadly diversified, secure and cost-effective cloud services for customers from all industries.
The offering is constantly being further developed and adapted to market conditions.
Sovereign cloud offering that includes a broad security package and guarantees that the data is processed GDPR-compliant and in a highly secure storage system
Awards
Preferred Vendor | Leader 2023 | Platinum Award Cloud |
Cloud Solutions | Germany | service provider |
Copyright © IONOS Group SE 2024 | 10 |
1 ISG Provider Lens: Public Cloud -Services & Solutions, Hyperscale Infrastructure & Platform Services, Germany 2023
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Disclaimer
Ionos Group SE published this content on 15 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2024 16:20:04 UTC.
