2022-08-17 07:30:00 CEST

2022-08-17 07:30:24 CEST


REGULATED INFORMATION

English
Sitowise Group Plc - Half Year financial report

Sitowise's Half-year Report January - June 2022: Double-digit growth in net sales continued


Sitowise Group Plc, Half-year Report 1 January - 30 June 2022, 17 August 2022 at
8:30 am

Q2: Double-digit growth in net sales continued
April-June in brief (Q2)

  · Net sales increased by 11% to EUR 51.7 (46.5) million.
  · Organic net sales grew by 4% (-5%).
  · Adjusted EBITA was EUR 4.9 (5.9) million, or 9.5% (12.7%) of net sales.
  · The order book increased by 21% to EUR 169 (140) million.
  · Leverage (net debt / adjusted EBITDA) rose as a result of acquisitions and
was 2.7x (1.5x).
  · Sitowise carried out three acquisitions. In June, the Group was joined by
two Finnish companies, Bitcomp Oy, an IT expert in SaaS solutions for the forest
and natural resources sector, and the renovation specialist Rakennuttajakaari
Oy, and a Swedish company, the electrical design firm E60 Elkonsult AB.
  · The personnel survey conducted in May indicated that willingness to
recommend Sitowise as an employer had risen further and employees were very
satisfied with managerial work.

January-June in brief (H1)

  · Net sales increased by 13% to EUR 100.9 (89.3) million.
  · Organic net sales grew by 5% (-3%).
  · Adjusted EBITA was EUR 10.1 (10.6) million, or 10.1% (11.9%) of net sales.
  · In the client survey conducted at the beginning of the year, the willingness
to recommend remained at a good level, in addition to which 94% of respondents
would reselect Sitowise as their supplier.
  · Sitowise carried out a total of five acquisitions. In addition to those
mentioned above, in January Sitowise acquired the Swedish infrastructure design
agency Mavacon AB and completed the acquisition of VRT Finland Oy's business
focusing on 3D construction inspection.

The figures in this report are unaudited.  Comparative figures for the
corresponding period of the previous year are in brackets. This report has been
published in Finnish and English. If there are any differences between the
English translation and the original Finnish version, the Finnish report shall
prevail.

CEO HEIKKI HAASMAA:

In the second quarter, Sitowise's net sales grew by 11 percent, while organic
growth was 4 percent. Overall growth was supported by the acquisitions completed
after June in 2021, as the acquired companies have developed favorably also
after the acquisitions.

During the quarter, we made exceptional investments in personnel events and
training as well as customer meetings - this had a clear impact on our
profitability due to both direct costs and the lower utilization rate. In the
second quarter, adjusted EBITA declined to EUR 4.9 (5.9) million and represented
9.5% (12.7%) of net sales. In addition to the lower utilization rate,
profitability was burdened by COVID-19 sickness absences, which remain high, but
have leveled off after April.

In June, we announced three strategically significant acquisitions, thanks to
which the Group grew by a total of 135 new experts. In our Digital Solutions
business area, we achieved a major growth spurt and doubled the net sales of our
SaaS business consisting of recurring revenue agreements by acquiring Bitcomp
Oy, Finland's leading pioneer in the forest and natural resources sector. In the
Buildings business area we created Finland's largest expert organization
specializing in renovation by acquiring Rakennuttajakaari Oy. In Sweden, we
continued to expand our service offering by acquiring the electrical design
specialist E60 Elkonsult AB. Acquisitions will continue to play a key role in
our strategy going forward, too. We are looking for growth-focused and
financially well performing companies that are a good fit with our strategy and
culture. This will enable us to serve our clients even better and to grow
profitably.

After two years of the COVID-19 pandemic, it has been important to support
employee encounters and customer work. For this reason, the above-mentioned
significant internal investments in employees made during the quarter have been
necessary and important both for personnel satisfaction and for supporting
growth. Although the past two years have been challenging to employees, their
satisfaction has remained high. Our employees' willingness to recommend Sitowise
as an employer increased for the fourth year running - in the personnel survey
conducted this spring, our eNPS was 30 (28). An expert organization must pay
particular attention to personnel satisfaction, and I'm pleased to see that our
continued focus on our employees during the recent years has had visible
results.

KEY FIGURES

EUR million                        4-6/20  4-6/20  1-6/20  1-6/2021  1-12/2021
                                       22      21      22
Net sales                            51.7    46.5   100.9      89.3      179.3
EBITA, adjusted                       4.9     5.9    10.1      10.6       21.1
% of net sales                       9.5%   12.7%   10.1%     11.9%      11.8%
EBITA                                 3.3     4.7     6.8       8.7       18.5
Result for the period                 1.6     3.4     2.7       2.6        7.9
Cash flow from operating              2.1     3.1     9.0       8.4       22.8
activities before financial items
and taxes
Net debt                                             58.2      29.9       30.9
Net debt / EBITDA, adjusted                          2.7x      1.5x       1.4x
Equity ratio, %                                     42.9%     47.8%      46.0%
Earnings per share (EPS), EUR        0.04    0.10    0.07      0.07       0.22
Number of personnel, average        2,115   1,960   2,080     1,935      1,969

OUTLOOK, GUIDANCE AND FINANCIAL TARGETS

Market outlook

The stable growth in the demand for design and consulting services to create
sustainable societies is supported by megatrends such as urbanization,
renovation backlog, sustainability, and digitalization.

During the second quarter of the year, demand across all our business areas
remained good. However, the uncertainty in the market brought by the war in
Ukraine, material availability issues, energy availability challenges, and
inflationary pressures could potentially affect the short-term decision-making
of Sitowise's clients.

Guidance (unchanged)

Sitowise Group estimates that both net sales and adjusted EBITA in euros will
increase compared to 2021.

Long-term financial targets (unchanged)

The Board of Directors of Sitowise Group has set the following long-term
financial targets:

  · Growth: Annual growth in net sales of more than 10 percent, including
acquisitions;
  · Profitability: Adjusted EBITA margin of at least 12 percent;
  · Leverage: Net debt / adjusted EBITDA should not exceed 2.5x, except
temporarily in conjunction with acquisitions; and
  · Dividend policy: Sitowise targets paying a dividend corresponding to 30-50
percent of net profit.

MAIN EVENTS AFTER PERIOD-END

There have been no significant events since the review period.

FINANCIAL CALENDAR

Sitowise Group's Q3 interim report will be published on 2 November 2022.

WEBCAST
The briefing will be streamed at https://sitowise.videosync.fi/q2-2022
-interimreport. Written questions can be submitted through the webcast.
Presentation material and a recording of the event will be available at
https://www.sitowise.com/investors/reports-and-presentations after the event.

Conference call

It is also possible to dial-in to the briefing 5-10 minutes before the start of
the event by calling a number below and entering the PIN code 67943791#

Finland Toll-Free: 0800 523 163
Finland Toll: +358 9 8171 0310
United Kingdom Toll-Free: 0800 358 9473
United Kingdom Toll: +44 3333 000 804
US Toll-Free: +1 855 85 70686
US Toll: +1 631 913 1422
Sweden Toll-Free: 0200 883 685
Sweden Toll: +46 856 642 651

International access numbers and further instructions available
here (https://events
-ftp.arkadin.com/ev/docs/NE_W2_TF_Events_International_Access_List.pdf).

ADDITIONAL INFORMATION

Heikki Haasmaa, CEO, heikki.haasmaa@sitowise.com, tel. +358 50 304 7765
Heidi Karlsson, CFO, heidi.karlsson@sitowise.com, tel. +358 40 759 3320
Minttu Vilander, Chief Communications and Corporate Responsibility Officer,
minttu.vilander@sitowise.com, tel. +358 40 575 6660

Distribution:

Nasdaq Helsinki Ltd
Key media
www.sitowise.com

SITOWISE IN BRIEF:

Sitowise is a Nordic expert in the built environment and digital solutions. We
provide design and consulting services to enable more responsible and smarter
urban development as well as smooth transportation.  We operate in three
business areas in Finland and Sweden: real estate and buildings, infrastructure,
and digital solutions.

We want to raise the bar for intelligence and sustainability, and that is why
our vision is to be the most responsible partner in developing thriving and
sustainable living environments. Sitowise has grown rapidly and profitably in
recent years. The Group's net sales in 2021 were approximately EUR 179 million
and the company employs more than 2,000 experts. Sitowise Group Plc is listed on
Nasdaq Helsinki under the trading symbol SITOWS.



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