Nagarro

RESEARCH
(SDAX, Software/IT, NA9 GR)

Value Indicators: EUR Warburg Risk Score: 3.5 Description:

Buy DCF: 91.00 Balance Sheet Score: 4.0
Custom software and digital
Market Liquidity Score: 3.0
engineering
EUR 90.00 (EUR 135.00)
Market Snapshot: EUR m Shareholders: Key Figures (WRe): 2025e
Market cap: 796.7 Freefloat 70.30 % Beta: 1.1
Price EUR 59.80 No. of shares (m): 13.3 Carl G. Duerschmidt 20.00 % Price / Book: 3.1 x
Upside 50.5 % EV: 859.4 Detlef Dinsel 9.70 % Equity Ratio: 32 %
Freefloat MC: 560.1 Net Fin. Debt / EBITDA: 0.4 x
Ø Trad. Vol. (30d): 4.58 m Net Debt / EBITDA: 0.5 x

Refocusing on operational performance following recent uncertainty

 Following the publication of the annual report and restatements in the context of the auditor change, as well as the publication of the Q1 results,
the valuation model is being updated.
 Nagarro reported Q1 2025 revenue of EUR 247m and adjusted EBITDA of EUR 30.2m, resulting in an adjusted EBITDA margin of 12.2%.
Management noted that the performance was better than it appeared due to several factors: Deferred revenue increased from approximately
EUR 2m at year-end 2024 to EUR 5.5m at the end of Q1 2025. If recognized, this would have boosted both revenue and the bottom line.
Furthermore, there was a EUR 5m negative impact on adjusted EBITDA due to changes in exchange rates, particularly the EUR-USD exchange
rate. Approximately EUR 4m of this was from the revaluation of intercompany loans, and EUR 1m was from the revaluation of bank deposits.
 Nagarro is observing increased market activity, particularly in IT services related to data, cloud, and AI. The initial uncertainty surrounding new
AI technology has apparently passed, and it is now becoming a more mature technology, leading to increased IT spending. The company
anticipates a surge in investment and adoption of AI once more success stories emerge. In Q1, Nagarro's best-performing industries were
management consulting and business information. Horizontal Tech remained under pressure, although some signs of recovery are emerging.
Over the past few years, Nagarro has been diversifying away from Horizontal Tech.
 Nagarro is focused on enhancing shareholder value through several capital allocation initiatives: (1) As of May 9, Nagarro had bought back
556,000 shares. (2) A dividend of EUR 1 per share has been proposed to the upcoming Annual General Meeting (AGM). While the company
primarily focuses on bolt-on acquisitions, management remains open to occasional strategic takeovers. From our point of view, it is crucial that
management does not use its treasury shares for potential takeovers. The installation of a CFO and the proposition of Carl Duerschmidt to the
supervisory board look set to support internal processes, such as revenue recognition, and investor confidence.
 Despite the negative Q1 impacts, Nagarro is not changing its 2025 guidance. We have reduced our short-term and long-term estimates to
reflect the subdued start to the year. The model is being rolled forward and the DCF-based PT is lowered to EUR 90.

Changes in Estimates: Comment on Changes:

FY End: 31.12. 2025e +/- 2026e +/- 2027e +/-  Estimates have been updated to reflect the Q1 results. Furthermore, the
in EUR m (old) (old) (old) long-term growth assumptions have been reduced.
Sales 1,027.2 -1.7 % 1,129.9 -6.1 % n.a. n.m.
EBITDA adj. 146.4 -1.5 % 162.8 -5.5 % n.a. n.m.
EBITDA 136.4 -1.6 % 152.8 -5.9 % n.a. n.m.
EBIT 98.3 -2.8 % 111.3 -7.1 % n.a. n.m.
EPS 4.99 -3.0 % 5.69 -7.6 % n.a. n.m.

FY End: 31.12. CAGR

in EUR m (24-27e) 2021 2022 2023 2024 2025e 2026e 2027e
Sales 4.6 % 546.0 856.3 912.1 972.0 1,010.0 1,060.5 1,113.5
Change Sales yoy 26.9 % 56.8 % 6.5 % 6.6 % 3.9 % 5.0 % 5.0 %
EBITDA adj. 79.7 148.5 126.1 147.5 144.3 153.8 160.6
Margin 14.6 % 17.3 % 13.8 % 15.2 % 14.3 % 14.5 % 14.4 %
EBITDA 4.0 % 70.3 145.6 118.6 134.0 134.3 143.8 150.6
Margin 12.9 % 17.0 % 13.0 % 13.8 % 13.3 % 13.6 % 13.5 %
EBIT 3.9 % 45.7 112.4 83.2 96.7 95.6 103.4 108.5
Margin 8.4 % 13.1 % 9.1 % 10.0 % 9.5 % 9.8 % 9.7 %
Net income before 30.0 77.3 49.2 49.2 64.5 70.1 73.8
minorities
Net income 14.5 % 30.0 77.3 49.2 49.2 64.5 70.1 73.8

Rel. Performance vs SDAX: EPS 14.5 % n.a. 5.58 3.64 3.69 4.84 5.26 5.54
DPS n.a. 0.00 0.00 1.00 1.10 1.30 1.30
1 month: -5.2 % Dividend Yield n.a. n.a. n.a. 1.2 % 1.8 % 2.2 % 2.2 %
6 months: -61.8 % FCFPS 1.81 4.09 3.54 4.15 7.77 5.24 5.51
Year to date: -45.0 % FCF / Market cap n.a. 3.4 % 4.0 % 5.0 % 13.0 % 8.8 % 9.2 %

Trailing 12 months: -35.5 % EV / Sales n.a. 2.1 x 1.5 x 1.3 x 0.9 x 0.8 x 0.7 x
EV / EBIT adj. n.a. 15.5 x 15.8 x 12.5 x 8.6 x 7.5 x 6.7 x
Company events: EV / EBIT n.a. 16.2 x 16.8 x 13.0 x 9.0 x 7.8 x 6.9 x
14.08.25 Q2 P/E n.a. 21.8 x 24.4 x 22.3 x 12.4 x 11.4 x 10.8 x
14.11.25 Q3 Net Debt 149.7 141.1 195.7 165.5 62.8 7.6 -48.5
ROCE (NOPAT) 18.8 % 31.4 % 18.4 % 15.9 % 18.9 % 21.9 % 22.7 %
Guidance: 2025: revenue: EUR 1,020-1,080m; adj. EBITDA margin: 14.5-15.5%

Analyst
An dr ea s Wo lf COMMENT Published 28.05.2025 08:15 1
awolf@warburg-research.co m
+49 40 309537-140
Nagarro RESEARCH

Sales development Customer split IT engineers by region

in EUR m 2024 2024

Source: Warburg Research Source: Company Source: Warburg Research

Company Background
 Nagarro provides technology and custom software development services for digital transformation,...

 ...with a focus on disruptive technologies such as artificial intelligence, big data, and internet of things.

 Complementary business fields such as managed services, e-commerce solutions or ERP consulting complete the offering.

 While the majority of revenue is generated in higher price countries, Nagarro is able to serve this demand with access to experts in
regions associated with lower costs.

Competitive Quality
 Nagarro is a trusted and valued digitalisation partner developing tailor-made software to achieve competitive differentiation for its clients.

 Technological focus and expertise position the company as an IT engineering expert rather than a consulting or services company.

 Proprietary software Ginger supports collaboration, a decentralised organisational structure which provides access to IT talent and
enables Nagarro to serve both, small and large companies around the globe.

 Organizational design and processes allow Nagarro to cross-fertilize knowledge across the global organisation and adapt quickly to
new technologies and client needs with lean and agile teams and short time-to-market.

 Access to scarce IT specialists: Nagarro's approx. 17,000 IT experts e.g. in India, China or Romania have a strong footprint in future-
oriented technologies such as cloud, AI, IoT, deep learning or big data.

Sales by region
2024; in %

Source: Warburg Research

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DCF model
Detailed forecast period Transitional period Term. Value
Figures in EUR m 2025e 2026e 2027e 2028e 2029e 2030e 2031e 2032e 2033e 2034e 2035e 2036e 2037e
Sales 1,010.0 1,060.5 1,113.5 1,169.2 1,224.2 1,278.2 1,331.3 1,383.3 1,434.1 1,483.5 1,531.6 1,578.3 1,609.9
Sales change 3.9 % 5.0 % 5.0 % 5.0 % 4.7 % 4.4 % 4.2 % 3.9 % 3.7 % 3.4 % 3.2 % 3.0 % 2.0 % 2.0 %

EBIT 95.6 103.4 108.5 113.4 120.0 125.3 130.5 135.6 140.5 145.4 150.1 154.7 157.8
EBIT-margin 9.5 % 9.8 % 9.7 % 9.7 % 9.8 % 9.8 % 9.8 % 9.8 % 9.8 % 9.8 % 9.8 % 9.8 % 9.8 %

Tax rate (EBT) 28.0 % 28.0 % 28.0 % 32.0 % 32.0 % 32.0 % 32.0 % 32.0 % 32.0 % 32.0 % 32.0 % 32.0 % 32.0 %

NOPAT 68.8 74.5 78.1 77.1 81.6 85.2 88.7 92.2 95.6 98.9 102.1 105.2 107.3

Depreciation 38.7 40.4 42.2 12.9 12.2 12.8 13.3 13.8 14.3 14.8 15.3 15.8 17.7
in % of Sales 3.8 % 3.8 % 3.8 % 1.1 % 1.0 % 1.0 % 1.0 % 1.0 % 1.0 % 1.0 % 1.0 % 1.0 % 1.1 %

Changes in provisions -12.6 0.0 0.0 0.5 0.5 0.5 0.5 0.5 0.5 0.4 0.4 0.4 0.3

Change in Liquidity from

- Working Capital -58.4 6.5 6.8 67.0 9.9 9.7 9.6 9.4 9.1 8.9 8.7 8.4 5.7
- Capex 7.8 8.1 8.4 12.9 13.5 14.1 14.6 15.2 15.8 16.3 16.8 17.4 17.7
Capex in % of Sales 0.8 % 0.8 % 0.8 % 1.1 % 1.1 % 1.1 % 1.1 % 1.1 % 1.1 % 1.1 % 1.1 % 1.1 % 1.1 %

- Other 24.8 26.1 27.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Free Cash Flow (WACC

120.8 74.2 77.7 10.6 71.0 74.7 78.3 81.9 85.5 88.9 92.3 95.6 101.9 106
Model)

PV of FCF 120.8 68.7 66.6 8.4 52.1 50.8 49.3 47.7 46.1 44.4 42.7 40.9 40.4 698
share of PVs 18.60 % 30.70 % 50.70 %

Model parameter Valuation (m)

Derivation of WACC: Derivation of Beta: Present values 2037e 679

Terminal Value 698
Debt ratio 15.00 % Financial Strength 1.14 Financial liabilities 335
Cost of debt (after tax) 2.4 % Liquidity (share) 1.14 Pension liabilities 23
Market return 8.25 % Cyclicality 1.14 Hybrid capital 0
Risk free rate 2.75 % Transparency 1.14 Minority interest 0
Others 1.14 Market val. of investments 0
Liquidity 193 No. of shares (m) 13.3
WACC 8.02 % Beta 1.14 Equity Value 1,211 Value per share (EUR) 90.91

Sensitivity Value per Share (EUR)

Terminal Growth Delta EBIT-margin

Beta WACC 1.25 % 1.50 % 1.75 % 2.00 % 2.25 % 2.50 % 2.75 % Beta WACC -1.5 pp -1.0 pp -0.5 pp +0.0 pp +0.5 pp +1.0 pp +1.5 pp
1.35 9.0 % 72.57 73.78 75.07 76.45 77.94 79.54 81.26 1.35 9.0 % 62.10 66.88 71.67 76.45 81.24 86.03 90.81
1.25 8.5 % 78.40 79.86 81.43 83.12 84.94 86.92 89.06 1.25 8.5 % 67.69 72.83 77.97 83.12 88.26 93.41 98.55
1.19 8.3 % 81.63 83.25 84.98 86.86 88.89 91.09 93.50 1.19 8.3 % 70.83 76.17 81.51 86.86 92.20 97.55 102.89
1.14 8.0 % 85.11 86.90 88.83 90.91 93.18 95.66 98.36 1.14 8.0 % 74.23 79.79 85.35 90.91 96.47 102.04 107.60
1.09 7.8 % 88.87 90.85 93.00 95.33 97.87 100.66 103.72 1.09 7.8 % 77.94 83.74 89.53 95.33 101.13 106.92 112.72
1.03 7.5 % 92.93 95.14 97.54 100.15 103.01 106.16 109.64 1.03 7.5 % 81.99 88.04 94.10 100.15 106.20 112.26 118.31
0.93 7.0 % 102.14 104.90 107.93 111.26 114.94 119.02 123.58 0.93 7.0 % 91.32 97.97 104.61 111.26 117.91 124.55 131.20

 Slight EBIT margin expansion anticipated

 Other: IFRS 16 impact in the detailed forecast. Depreciation and capex at same levels thereafter.

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Valuation
2021 2022 2023 2024 2025e 2026e 2027e
Price / Book n.a. 10.7 x 7.0 x 4.9 x 3.1 x 2.5 x 2.1 x
Book value per share ex intangibles n.a. -3.36 -4.84 -2.63 -0.11 4.29 8.76
EV / Sales n.a. 2.1 x 1.5 x 1.3 x 0.9 x 0.8 x 0.7 x
EV / EBITDA n.a. 12.5 x 11.8 x 9.4 x 6.4 x 5.6 x 5.0 x
EV / EBIT n.a. 16.2 x 16.8 x 13.0 x 9.0 x 7.8 x 6.9 x
EV / EBIT adj.* n.a. 15.5 x 15.8 x 12.5 x 8.6 x 7.5 x 6.7 x
P / FCF n.a. 29.7 x 25.1 x 19.8 x 7.7 x 11.4 x 10.9 x
P/E n.a. 21.8 x 24.4 x 22.3 x 12.4 x 11.4 x 10.8 x
P / E adj.* n.a. 21.8 x 24.4 x 22.3 x 12.4 x 11.4 x 10.8 x
Dividend Yield n.a. n.a. n.a. 1.2 % 1.8 % 2.2 % 2.2 %
FCF Potential Yield (on market EV) n.a. 5.2 % 5.0 % 5.8 % 9.8 % 11.2 % 12.6 %
*Adjustments made for: -

Company Specific Items

2021 2022 2023 2024 2025e 2026e 2027e
gross profit (company reporting) 154.4 247.1 235.7 295.3 346.9 369.4 387.8
gross margin (company reporting) 28.3 % 28.9 % 25.8 % 30.4 % 34.3 % 34.8 % 34.8 %

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Consolidated profit & loss

In EUR m 2021 2022 2023 2024 2025e 2026e 2027e
Sales 546.0 856.3 912.1 972.0 1,010.0 1,060.5 1,113.5
Change Sales yoy 26.9 % 56.8 % 6.5 % 6.6 % 3.9 % 5.0 % 5.0 %
Increase / decrease in inventory 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Own work capitalised 0.2 0.3 0.3 0.3 2.5 2.5 2.5
Material expenses 59.1 77.0 73.1 68.9 76.8 75.3 79.1
Personnel expenses 373.0 571.1 654.6 703.0 720.1 753.0 790.6
Other operating income 14.8 28.2 29.3 30.6 10.0 10.0 10.0
Other operating expenses 55.5 89.0 91.3 93.9 85.9 95.4 100.2
Unfrequent items 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBITDA 70.3 145.6 118.6 134.0 134.3 143.8 150.6
Margin 12.9 % 17.0 % 13.0 % 13.8 % 13.3 % 13.6 % 13.5 %
Depreciation of fixed assets 19.9 25.5 29.9 32.6 33.9 35.6 37.4
EBITA 50.3 120.1 88.6 101.4 100.4 108.2 113.3
Amortisation of intangible assets 4.7 7.6 5.5 4.7 4.8 4.8 4.8
Goodwill amortisation 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBIT 45.7 112.4 83.2 96.7 95.6 103.4 108.5
Margin 8.4 % 13.1 % 9.1 % 10.0 % 9.5 % 9.8 % 9.7 %
EBIT adj. 47.8 117.8 88.0 100.7 99.6 107.4 112.5
Interest income 0.4 0.5 1.8 3.5 0.0 0.0 0.0
Interest expenses 7.8 11.2 18.2 21.1 6.0 6.0 6.0
Other financial income (loss) 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBT 38.2 101.7 66.7 79.1 89.6 97.4 102.5
Margin 7.0 % 11.9 % 7.3 % 8.1 % 8.9 % 9.2 % 9.2 %
Total taxes 8.2 24.4 17.6 29.9 25.1 27.3 28.7
Net income from continuing operations 30.0 77.3 49.2 49.2 64.5 70.1 73.8
Income from discontinued operations (net of tax) 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net income before minorities 30.0 77.3 49.2 49.2 64.5 70.1 73.8
Minority interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net income 30.0 77.3 49.2 49.2 64.5 70.1 73.8
Margin 5.5 % 9.0 % 5.4 % 5.1 % 6.4 % 6.6 % 6.6 %
Number of shares, average n.a. 13.8 13.5 13.3 13.3 13.3 13.3
EPS n.a. 5.58 3.64 3.69 4.84 5.26 5.54
EPS adj. n.a. 5.58 3.64 3.69 4.84 5.26 5.54
*Adjustments made for:

Guidance: 2025: revenue: EUR 1,020-1,080m; adj. EBITDA margin: 14.5-15.5%

Financial Ratios
2021 2022 2023 2024 2025e 2026e 2027e
Total Operating Costs / Sales 87.2 % 83.0 % 87.0 % 86.2 % 87.0 % 86.7 % 86.7 %
Operating Leverage 0.1 x 2.6 x -4.0 x 2.5 x -0.3 x 1.6 x 1.0 x
EBITDA / Interest expenses 9.0 x 13.0 x 6.5 x 6.3 x 22.4 x 24.0 x 25.1 x
Tax rate (EBT) 21.5 % 24.0 % 26.3 % 37.9 % 28.0 % 28.0 % 28.0 %
Dividend Payout Ratio n.a. 0.0 % 0.0 % 27.1 % 22.7 % 24.7 % 23.5 %
Sales per Employee n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Sales, EBITDA Operating Performance Performance per Share

in EUR m in %

Source: Warburg Research Source: Warburg Research Source: Warburg Research

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Consolidated balance sheet

In EUR m 2021 2022 2023 2024 2025e 2026e 2027e
Assets
Goodwill and other intangible assets 178.7 203.5 234.9 257.6 257.6 257.5 257.4
thereof other intangible assets 14.0 26.6 40.1 43.4 43.3 43.3 43.2
thereof Goodwill 163.4 175.8 194.8 214.2 214.2 214.2 214.2
Property, plant and equipment 11.1 11.4 11.6 10.0 7.0 3.9 0.6
Financial assets 3.7 4.0 3.3 2.1 2.1 2.1 2.1
Other long-term assets 59.3 52.3 47.6 53.3 52.6 55.4 58.4
Fixed assets 253.0 271.3 297.5 323.1 319.3 319.0 318.6
Inventories 0.3 0.3 0.0 0.0 0.5 0.5 0.5
Accounts receivable 103.3 156.8 182.5 219.8 207.5 217.9 228.8
Liquid assets 106.6 110.2 110.1 192.6 276.8 332.0 388.1
Other short-term assets 61.7 66.7 76.0 60.3 59.0 59.0 59.0
Current assets 271.9 333.9 368.6 472.7 543.8 609.4 676.4
Total Assets 524.9 605.2 666.1 795.7 863.2 928.4 995.0
Liabilities and shareholders' equity
Shareholders' equity 96.8 157.6 170.5 222.7 256.1 314.6 374.2
Minority interest 0.0 0.0 0.0 0.0 20.0 20.0 20.0
Total equity 96.8 157.6 170.5 222.7 276.1 334.6 394.2
Provisions 45.3 53.4 59.8 58.8 46.0 46.0 46.0
thereof provisions for pensions and similar obligations 10.1 11.4 14.9 22.6 10.0 10.0 10.0
Financial liabilities (total) 246.1 239.8 291.0 335.5 329.6 329.6 329.6
Short-term financial liabilities 23.8 11.5 6.2 8.8 8.8 8.8 8.8
Accounts payable 18.5 13.8 17.9 17.1 52.6 55.2 58.0
Other liabilities 118.2 140.6 126.9 161.7 158.9 163.0 167.3
Liabilities 428.0 447.6 495.6 573.0 587.1 593.8 600.9
Total liabilities and shareholders' equity 524.9 605.2 666.1 795.7 863.2 928.4 995.0

Financial Ratios
2021 2022 2023 2024 2025e 2026e 2027e
Efficiency of Capital Employment
Operating Assets Turnover 6.3 x 6.1 x 5.7 x 4.9 x 7.4 x 7.5 x 7.7 x
Capital Employed Turnover 2.2 x 2.9 x 2.5 x 2.5 x 3.0 x 3.1 x 3.2 x
ROA 11.9 % 28.5 % 16.5 % 15.2 % 20.2 % 22.0 % 23.2 %
Return on Capital
ROCE (NOPAT) 18.8 % 31.4 % 18.4 % 15.9 % 18.9 % 21.9 % 22.7 %
ROE 42.7 % 60.8 % 30.0 % 25.0 % 26.9 % 24.6 % 21.4 %
Adj. ROE 42.7 % 60.8 % 30.0 % 25.0 % 26.9 % 24.6 % 21.4 %
Balance sheet quality
Net Debt 149.7 141.1 195.7 165.5 62.8 7.6 -48.5
Net Financial Debt 139.5 129.6 180.8 142.9 52.8 -2.4 -58.5
Net Gearing 154.6 % 89.5 % 114.8 % 74.3 % 22.7 % 2.3 % -12.3 %
Net Fin. Debt / EBITDA 198.6 % 89.1 % 152.5 % 106.6 % 39.3 % n.a. n.a.
Book Value / Share n.a. 11.5 12.8 16.7 19.2 23.6 28.1
Book value per share ex intangibles n.a. -3.4 -4.8 -2.6 -0.1 4.3 8.8

ROCE Development Net debt Book Value per Share

in EUR m in EUR

Source: Warburg Research Source: Warburg Research Source: Warburg Research

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Consolidated cash flow statement

In EUR m 2021 2022 2023 2024 2025e 2026e 2027e
Net income 30.0 77.3 49.2 49.2 64.5 70.1 73.8
Depreciation of fixed assets 19.9 25.5 29.9 32.6 33.9 35.6 37.4
Amortisation of goodwill 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Amortisation of intangible assets 4.7 7.6 5.5 4.7 4.8 4.8 4.8
Increase/decrease in long-term provisions 1.3 1.9 2.7 3.3 -12.6 0.0 0.0
Other non-cash income and expenses 8.7 18.4 12.1 -19.9 0.0 0.0 0.0
Cash Flow before NWC change 64.5 130.7 99.4 69.9 90.6 110.5 116.0
Increase / decrease in inventory 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Increase / decrease in accounts receivable 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Increase / decrease in accounts payable 0.0 0.0 -21.0 -6.5 0.0 0.0 0.0
Increase / decrease in other working capital positions -20.6 -48.4 1.3 23.2 45.4 -6.5 -6.8
Increase / decrease in working capital (total) -20.6 -48.4 -19.7 16.7 45.4 -6.5 -6.8
Net cash provided by operating activities [1] 44.0 82.3 79.7 86.6 136.0 104.0 109.2
Investments in intangible assets -0.8 -0.6 -1.5 -7.4 -1.7 -1.7 -1.7
Investments in property, plant and equipment -1.9 -3.5 -5.4 0.0 -6.1 -6.4 -6.7
Payments for acquisitions -50.1 -40.4 -56.3 -18.2 0.0 0.0 0.0
Financial investments 0.0 0.0 -5.0 4.8 0.0 0.0 0.0
Income from asset disposals 0.0 0.1 2.5 4.0 0.0 0.0 0.0
Net cash provided by investing activities [2] -52.8 -44.5 -65.7 -16.8 -7.8 -8.1 -8.4
Change in financial liabilities 18.2 11.4 62.3 51.6 -5.9 0.0 0.0
Dividends paid 0.0 0.0 0.0 0.0 -13.3 -14.7 -17.3
Purchase of own shares 0.0 -10.0 -29.7 0.0 0.0 0.0 0.0
Capital measures 6.1 0.0 0.0 0.0 0.0 0.0 0.0
Other -24.2 -30.2 -39.3 -41.8 -24.8 -26.1 -27.4
Net cash provided by financing activities [3] 0.0 -28.8 -6.7 9.9 -44.0 -40.7 -44.7
Change in liquid funds [1]+[2]+[3] -8.8 9.0 7.2 79.6 84.3 55.2 56.1
Effects of exchange-rate changes on cash 0.6 -1.3 -2.6 -0.4 0.0 0.0 0.0
Cash and cash equivalent at end of period 99.6 114.3 114.8 189.3 276.8 332.0 388.1

Financial Ratios
2021 2022 2023 2024 2025e 2026e 2027e
Cash Flow
FCF 21.6 56.6 47.7 55.3 103.5 69.9 73.4
Free Cash Flow / Sales 4.0 % 6.6 % 5.2 % 5.7 % 10.2 % 6.6 % 6.6 %
Free Cash Flow Potential 59.3 95.5 69.0 72.8 84.3 90.5 94.6
Free Cash Flow / Net Profit 72.1 % 73.3 % 97.1 % 112.5 % 160.4 % 99.6 % 99.5 %
Interest Received / Avg. Cash 0.4 % 0.5 % 1.6 % 2.3 % 0.0 % 0.0 % 0.0 %
Interest Paid / Avg. Debt 3.6 % 4.6 % 6.9 % 6.7 % 1.8 % 1.8 % 1.8 %
Management of Funds
Investment ratio 0.5 % 0.5 % 0.8 % 0.8 % 0.8 % 0.8 % 0.8 %
Maint. Capex / Sales 0.5 % 0.5 % 0.8 % 0.8 % 0.0 % 0.0 % 0.0 %
Capex / Dep 10.9 % 12.5 % 19.4 % 19.8 % 20.1 % 20.0 % 19.9 %
Avg. Working Capital / Sales 10.8 % 11.9 % 15.2 % 17.4 % 15.8 % 12.6 % 12.6 %
Trade Debtors / Trade Creditors 559.6 % 1136.7 % 1017.4 % 1287.0 % 394.5 % 394.7 % 394.5 %
Inventory Turnover 219.6 x 291.6 x 73124.0 x 68879.0 x 153.5 x 150.6 x 158.1 x
Receivables collection period (days) 69 67 73 83 75 75 75
Payables payment period (days) 114 65 90 90 250 268 268
Cash conversion cycle (Days) -102 -70 -91 -83 -293 -319 -319

CAPEX and Cash Flow Free Cash Flow Generation Working Capital
in EUR m

Source: Warburg Research Source: Warburg Research Source: Warburg Research

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LEGAL DISCLAIMER
This research report (“investment recommendation”) was prepared by the Warburg Research GmbH, a fully owned subsidiary of the M.M.Warburg & CO
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DISCLOSURE ACCORDING TO §85 OF THE GERMAN SECURITIES TRADING ACT (WPHG), MAR AND MIFID II INCL.
COMMISSION DELEGATED REGULATION (EU) 2016/958 AND (EU) 2017/565
The valuation underlying the investment recommendation for the company analysed here is based on generally accepted and widely used methods of
fundamental analysis, such as e.g. DCF Model, Free Cash Flow Value Potential, NAV, Peer Group Comparison or Sum of the Parts Model (see also
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analyst’s assessment as regards the expected development of investor sentiment and its impact on the share price.
Independent of the applied valuation methods, there is the risk that the price target will not be met, for instance because of unforeseen changes in
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generally based on exchange rate changes or changes in political and social conditions.
This commentary reflects the opinion of the relevant author at the point in time of its compilation. A change in the fundamental factors underlying the
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SOURCES

All data and consensus estimates have been obtained from FactSet except where stated otherwise.

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Additional information for clients in the United States

1. This research report (the “Report”) is a product of Warburg Research GmbH, Germany, a fully owned subsidiary of M.M.Warburg & CO (AG & Co.)
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2. The Report is provided in the United States for distribution solely to "major U.S. institutional investors" under Rule 15a-6 of the U.S. Securities
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Reference in accordance with section 85 of the German Securities Trading Act (WpHG) and Art. 20 MAR regarding possible
conflicts of interest with companies analysed:

Warburg Research, or an affiliated company, or an employee of one of these companies responsible for the compilation of the research, hold
-1-
a share of more than 5% of the equity capital of the analysed company.
Warburg Research, or an affiliated company, within the last twelve months participated in the management of a consortium for an issue in
-2-
the course of a public offering of such financial instruments, which are, or the issuer of which is, the subject of the investment recommendation.
Companies affiliated with Warburg Research manage financial instruments, which are, or the issuers of which are, subject of the investment
-3-
recommendation, in a market based on the provision of buy or sell contracts.
MMWB, Warburg Research, or an affiliated company, reached an agreement with the issuer to provide investment banking and/or
investment services and the relevant agreement was in force in the last 12 months or there arose for this period, based on the relevant
-4-
agreement, the obligation to provide or to receive a service or compensation - provided that this disclosure does not result in the disclosure of
confidential business information.
The company compiling the analysis or an affiliated company had reached an agreement on the compilation of the investment
-5-
recommendation with the analysed company.
Warburg Research, or an affiliated company, holds a net long position of more than 0.5% of the total issued share capital of the analysed
-6a-
company.
Warburg Research, or an affiliated company, holds a net short position of more than 0.5% of the total issued share capital of the analysed
-6b-
company.

-6c- The issuer holds shares of more than 5% of the total issued capital of Warburg Research or an affiliated company.
The company preparing the analysis as well as its affiliated companies and employees have other important interests in relation to the
-7-
analysed company, such as, for example, the exercising of mandates at analysed companies.

Company Disclosure Link to the historical price targets and rating changes (last 12 months)

Nagarro 3, 5 https://www.mmwarburg.com/disclaimer/disclaimer_en/DE000A3H2200.htm

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INVESTMENT RECOMMENDATION
Investment recommendation: expected direction of the share price development of the financial instrument up to the given price target in the opinion of
the analyst who covers this financial instrument.

-B- Buy: The price of the analysed financial instrument is expected to rise over the next 12 months.

-H- Hold: The price of the analysed financial instrument is expected to remain mostly flat over the next 12 months.

-S- Sell: The price of the analysed financial instrument is expected to fall over the next 12 months.

“-“ Rating suspended: The available information currently does not permit an evaluation of the company.

WARBURG RESEARCH GMBH – ANALYSED RESEARCH UNIVERSE BY RATING

Rating Number of stocks % of Universe

Buy 142 71

Hold 47 24

Sell 6 3

Rating suspended 5 3

Total 200 100

WARBURG RESEARCH GMBH – ANALYSED RESEARCH UNIVERSE BY RATING …

… taking into account only those companies which were provided with major investment services in the last twelve months.

Rating Number of stocks % of Universe

Buy 36 72

Hold 10 20

Sell 1 2

Rating suspended 3 6

Total 50 100

PRICE AND RATING HISTORY NAGARRO AS OF 28.05.2025

Markings in the chart show rating changes by Warburg Research

GmbH in the last 12 months. Every marking details the date and
closing price on the day of the rating change.

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