SeSa S.p.A. · MIL:SES
SeSa — Milan, Italian Stock Market Opportunities 2017
34 slides from SeSa's conference presentation, Sep 21, 2017
Slide 1: Group Presentation
Group Presentation Milan, Italian Stock Market Opportunities, September 21 2017
Slide 2: Index
Index Milan, Italian Stock Market Opportunities, September 21, 2017 Alessandro Fabbroni, CEO Conxi Palmero, Investor Relations Manager Group Overview ICT Market Trend Q1 Group Results as of July 31, 2017 Historical Financials Results (Track Record 2011-2017) Governance and Investors Inform
Slide 3: Group Organization
Group Organization SeSa Group is the leading Italian provider of value-added Information Technology (“IT”) solutions with total consolidated revenues equal to Eu 1,271.5 Mn (Fiscal Year as of April 30, 2017) and over 1,400 employees. Group’s organization consists of 3 divisions: Corporate: Group’s d
Slide 4: Business Model and Investment Case
Business Model and Investment Case Strategic partner of Global IT Vendors (“IT Titans”) for the Italian market (Cisco, DellEMC, HP, HPE, IBM, Lenovo, Lexmark, Microsoft, Oracle, Samsung), focusing on value-added segments (Software Enterprise, Networking, Server, Storage, Cloud) Continuous and sustai
Slide 5: Strategic Partner of Global IT Vendors
Strategic Partner of Global IT Vendors SeSa Group main subsidiary (CGI) is the leading Italian IT Value Added distributor with a market share equal to 43.7% (source Sirmi, May 2017) built on successful relationship and long term partnerships with a wide base on 100 reputable IT Global Vendors (amo
Slide 6: Continuous growth since 90s
Continuous growth since 90s 9.3% Revenue CAGR* over 2011-17 period, mainly organic thanks to new distribution agreements 3.4% Revenue* growth in the 12M as of April 30, 2017 Continuous growth since ’90s over-performing the reference market New trend setter Vendors (**) 1400 1,271 1,230 1200 1,
Slide 7: Leadership in Italian VAD Market
Leadership in Italian VAD Market CGI is leader in Italian VAD market, with a 43.7% market share in 2016. Total VAD revenues and other income of Eu 1,102.5 Mn as of April 30, 2017 (+1.9% YoY, 9% CAGR 2011-2017) CGI is the largest Italian distributor in the value-added segments (Storage, Software
Slide 8: Global IT innovator for Italian SME & Enterprise
Global IT innovator for Italian SME & Enterprise VAR Group is a Software and System Integrator (“SSI”) player focused on Italian Enterprise & SME segments (representing 32% of total Italian IT market with, Eu 5.9 Bn in 2016 – source Sirmi, 2017) BUSINESS • Technology Hardware and TECHNOLOGY Softwa
Slide 9: Human Capital and Competitive advantages
Human Capital and Competitive advantages Human capital of over 1,400 qualified people with professional skills in main innovative IT areas (data management, cloud, security, digital transformation, IoT). Recruiting, training and HR welfare programs also supported by Fondazione Sesa (non-profit found
Slide 10: Financial Track Record
Financial Track Record Group Revenues and Other Income equal to Eu 1.271.5 Mn (+3.4% YoY) CAGR 2011-17 +9.3% Group Ebitda Eu 57.9 Mn (+7.2% YoY) CAGR 2011-17 +9.1% Ebitda Margin +4.55% up by 16 bp YoY Group Net Profit After Taxes before minority interest Eu 27.1 Mn CAGR 2011-17 +14.7% EAT margin 2.1
Slide 11: Index
Index Group Overview ICT Market Trend Group Results as of July 31, 2017 Historical Financials Results (Track Record 2011-2017) Governance and Investors Information Annexes 1-4 (Consolidated Financial Statements) 11
Slide 12: Italian IT Market 2013-2018E by categories
Italian IT Market 2013-2018E by categories Reverse of the Italian IT market trend growing by 1.6% in 2016, after a 3% annual decrease over 2013-2015 period. 2017 expected growth equal to 2.2% Total market value equal to Eu 18.9 Bn in 2017 year with significant (32% of total demand) SME and Enter
Slide 13: Global ICT market trend
Global ICT market trend Global IT market (2015-2020) in Eu Bn(1) Global IT market trends 3500 CAGR 2.1% 3,363 Global spending on Security Solutions 3,268 embracing IT Services, Enterprise Software and 3,172 3,030 3,042 3,083 Data Center Infrastructure expected to 3000 accelerate over the next year
Slide 14: Focus on IT market trends
Focus on IT market trends GLOBAL KEY MARKET TRENDS SESA GROUP Focus on partnership with major Vendors (datacenter, Global Major Vendors business model transformation enterprise software, networking) habilitating the new IT trends and solutions for Italian SME and Enterprise, Global IT Vendors Fragme
Slide 15: Group Value Solutions
Group Value Solutions DATA MANAGEMENT • BIG DATA • ANALYTICS • COGNITIVE To support Italian SME and Enterprise in addressing market transformation on new technologies and business models (new digital trends) Offering of wider IT services and solutions portfolio for SME and Enterprise segments an
Slide 16: Index
Index Group Overview ICT Market Trend Group Results as of July 31, 2017 Historical Financials Results (Track Record 2011-2017) Governance and Investors Information Annexes 1-4 (Consolidated Financial Statements) 16
Slide 17: Group Economic Results Q1 2018 vs Q1 2017
Group Economic Results Q1 2018 vs Q1 2017 Group Revenues Eu Mn (*) EBITDA Eu Mn 350 +7.3% 316.9 14 13.1 295.3 12.7 +3.0% 300 53.9 +19.0% 64.1 12 250 10 4.31% 4.14% 200 8 150 260.5 6 +4.1% 271.1 100 4 50 2 0 0 Jul 31 2016 Jul 31 2017 Jul 31 2016 Jul 31 2017 VAD SSI EBIT Eu Mn 7 Net profit after taxes
Slide 18: Segment Reporting: Q1 2018 vs Q1 2017
Segment Reporting: Q1 2018 vs Q1 2017 Group segment Q1 2018 Q1 2017 Change Q1 2018 vs Q1 2017 information Eu Mn VAD SSI Corporate Group VAD SSI Corporate Group VAD SSI Corporate Group Revenues and Other 271.1 64.1 3.6 316.9 260.5 53.9 3.6 295.3 4.1% 19.0% -0.4% 7.3% Income EBITDA 9.0 4.1 n.s. 13.1 1
Slide 19: Group Financial Results: Q1 2018 vs Q1 2017
Group Financial Results: Q1 2018 vs Q1 2017 Group Shareholders Equity (Eu Mn)* Group Net Financial Position (NFP) (Eu Mn) 204.7 200 +10.9% 14 184.7 12.7 12 +48.0% 150 10 8 6.6 100 6 4 50 2 0 0 Jul 31 2016 Jul 31 2017 Jul 31 2016 Jul 31 2017 Consolidated Group Equity as of July 31, 2017 equal to Eu
Slide 20: Group External Growth
Group External Growth 2015-2017 Group’s External Growth focused on valued-added and innovative areas of IT, to support Group’s Sustainable Growth and HR Development Business Continuity and Long-term Commitment of Target Companies Management, through Earn Out Incentive plans Binding agreement o
Slide 21: Index
Index Group Overview ICT Market Trend Group Results as of July 31, 2017 Historical Financials Results (Track Record 2011-2017) Governance and Investors Information Annexes 1-4 (Consolidated Financial Statements) 21
Slide 22: Group Economic Results FY 2011-2017
Group Economic Results FY 2011-2017 1450 65 Revenues** (Eu Mn) EBITDA (Eu Mn, % on revenues) 57.9 1,271 1,230 54.0 1250 55 51.6 4.6% 1,060 49.5* 4.4% 1050 948* +3.4% YoY 44.2 5.2% 4.9% 45 41.3 +7.2% YoY 832 850 747 812 5.3% 34.4 5.1% 35 650 4.6% CAGR + 9.3% 25 CAGR +9.1% 450 15 250 50 5 Apr 30 Apr 3
Slide 23: NWC and NFP annual average trend
NWC and NFP annual average trend NWC/Revenues FY2014 - FY2018 Quarterly * Continuous improvement in NWC management 20% 17.3% 18% 15.7% 16% 14.6% 13.3% 13.3% 12.8% 12.7% 12.6% 14% 11.7% 12.0% 11.6% 11.2% 10.9% 10,9% 12% 10.5% 10.2% 10.0% 10% 7.4% 7.3% 8% 6.3% 6.2% 6% 4% 2% 0% 1Q 2Q 3Q 4Q Average 1Q 2
Slide 24: Group Financial Results FY 2011-2017
Group Financial Results FY 2011-2017 Group Shareholders Equity* (Eu Mn) Net Financial Position (Eu Mn) 205 199.0 53.5 179.4 50 Strong Free Cash 160.4 Flow Generation 155 143.9 30 129.9 10 4.2 Apr 30 105 2017 84.0 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 2011 2012 2013 2014 2015 2016 67.8 -10 55 Cag
Slide 25: Index
Index Group Overview ICT Market Trend Group Results as of July 31, 2017 Historical Financials Results (Track Record 2011-2017) Governance and Investors Information Annexes 1-4 (Consolidated Financial Statements) 25
Slide 26: Key Investor Information
Key Investor Information Sesa (Euro) 2014 2015 2016 2017 Stock Market (1) AIM MTA MTA - MTA - (1) Listing on AIM market following the merger with Made In Italy 1 SpA Star Star (SPAC under Italian law listed on AIM) completed on February 1, 2013. Stock market price (July 31 of every 13.12 15.54 14.50
Slide 27: Shareholders & Management Team
Shareholders & Management Team SeSa shares are listed in the MTA Italian Stock Exchange since October 23, Amiral Gestion Norges Treasury 2013 (transition on MTA STAR Segment on February 16, 2015) Bank 2.988% Shares 2.996% 0.060% Total 15,494,590 outstanding ordinary shares Franklin Templeton 4.8
Slide 28: STAR segment governance requirements
STAR segment governance requirements Sesa is listed in the MTA STAR segment of Borsa Italiana (Italian Stock Exchange) dedicated to mid-size companies with a capitalization lower than Euro 1.0 Bn, which voluntarily adhere to and comply with several requirements: High transparency and high disclosu
Slide 29: Index
Index Group Overview ICT Market Trend Group Results as of July 31, 2017 Historical Financials Results (Track Record 2011-2017) Governance and Investors Information Annexes 1-4 (Consolidated Financial Statements) 29
Slide 30: Income Statement as of July 31, 2017
Income Statement as of July 31, 2017 Reclassified Income Statement Change 07/31/2017 % 07/31/2016 % (Euro/thousand) 2017/16 Revenues 314,685 293,544 7.2% Other income 2,184 1,714 27.4% Total Revenues and Other Income 316,869 100.0% 295,258 100.0% 7.3% Purchase of goods 262,151 82.7% 245,502 83.1% 6.
Slide 31: Balance Sheet as of July 31, 2017
Balance Sheet as of July 31, 2017 Reclassified Balance Sheet 07/31/2017 07/31/2016 04/30/2017 Euro/thousand) Intangible assets 23,281 18,111 21,848 Property, plant and equipment 51,198 45,464 49,736 Investments valued at equity 8,960 3,988 8,835 Other non-current receivables and deferred tax assets
Slide 32: Income Statement as of April 30, 2017
Income Statement as of April 30, 2017 Reclassified Income Statement Change 04/30/2017 % 04/30/2016 % (Euro/thousand) 2017/16 Revenues 1,260,275 1,223,485 3.0% Other income 11,194 6,117 83.0% Total Revenues and Other Income 1,271,469 100.0% 1,229,602 100.0% 3.4% Purchase of goods 1,055,182 83.0% 1,04
Slide 33: Balance Sheet as of April 30, 2017
Balance Sheet as of April 30, 2017 Reclassified Balance Sheet Change 04/30/2017 04/30/2016 Euro/thousand) 2017/16 Intangible assets 21,848 17,251 4,597 Property, plant and equipment 49,736 44,437 5,299 Investments valued at equity 8,835 3,938 4,897 Other non-current receivables and deferred tax asse
Slide 34: Disclaimer
Disclaimer This document has been prepared by Sesa SpA (“SeSa” or the “Company”) and by its subsidiaries (hereinafter «SeSa Group») solely for this presentation and does not represent any investment research , recommendation, consulting or suggestion, concerning the Company or its shares or any othe
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