Star7 S.p.a · MIL:STAR7
Star7 — H1 2024 Earnings Presentation
26 slides from Star7's earnings presentation, Sep 27, 2024
Slide 1: H1 2024 Financial Results
H1 2024 FINANCIAL RESULTS CONFERENCE CALL | 27 SEPTEMBER 2024
Slide 2: Disclaimer
Disclaimer This document (the "Document") has This Document is intended solely to The Document does not have the been prepared for the sole purpose of provide selected information to its nature of an opinion presenting the company STAR7 recipients and in no way constitutes a on financial, legal, tax
Slide 3: Agenda
At a glance AGENDA Financial results STAR7 H1 2024 Innovation&Sustainability Final remarks Appendix 3
Slide 4: Today's presenting team
Today’s presenting team Lorenzo Mondo Pierluigi Valletta Founder & Group CEO Chief Financial Officer 4
Slide 5: At a glance
STAR7 H1 2024 AT A GLANCE
Slide 6: H1 2024 highlights
H1 2024 highlights REVENUES EBITDA / EBITDA ADJ* EBITDA MARGIN / EBITDA MARGIN ADJ* % NET DEBT €60.4m €8.6m /€9.2m 14.2% /15.2% €29.8m €50.9m €6.9m / €7.5 m 13.6% / 14.7% €37.8m EBITDA / EBITDA ADJ* (Dec. 2023) +18.7% vs H1 2023 +23%* vs H1 2023 +50 bps* vs H1 2023 €33.6m June 2023 *Adjusted EBITDA
Slide 7: Delivering on a properly set strategy
Delivering on a properly set strategy Successful impact of STAR7 strategic pillars clearly detectable in 1H 2024 topline performance: INCREASING INTERNATIONALISATION High growth rates achieved in foreign markets leading Group revenue expansion WELL-BALANCED OFFER OF SERVICES THROUGH THE INTEGRALE7 M
Slide 8: H1 2024 Highlights
Effective execution behind the achievement of strong topline growth and margin recovery +18.7% in revenues H1 2024 fully driven by organic expansion Highlights 15.2% Adjusted EBITDA margin reflecting the benefits from Reaping the benefits of actions undertaken to increase § high-quality revenue mix
Slide 9: Financial results
STAR7 H1 2024 FINANCIAL RESULTS
Slide 10: H1 2024 revenues
H1 2024 revenues REVENUES (data in €m) +18.7% 140,0 120,0 100,0 80,0 Change % H1 2024 vs H1 2023 60,0 60.4 The key factor in the progress achieved in the 40,0 50.9 first six months of 2024 can be identified in significant organic growth in the USA and 20,0 Brazil, driven by the Product Knowledge and
Slide 11: Revenues breakdown by region
Revenues breakdown by region STAR7 – an increasingly global company H1 2024 Brazil and US at higher weight in H1 2024 vs H1 2023, driven mainly by up-selling and cross-selling services. 6.2% 18.1% FY 2023 6.9% H1 2023 €60.4m 17.1% 51.2% 7.1% 14.1% €104.4m 53.2% 24.5% €50.9m 22.8% 57.2% 21.6% 11
Slide 12: Revenues breakdown by services
Revenues breakdown by services Significant increase of group revenues thanks to high growth rate in Engineering services driven by Brazil and Product Knowledge services driven by the global business contracts signed with Stellantis (in partnership with leading international players) Positive trend c
Slide 13: H1 2024 EBITDA ADJ
H1 2024 EBITDA ADJ EBITDA adjusted (data in €m) +23% 10,0 9,0 9.2 8,0 8.6 7,0 7.5 Change % 6,0 6.9 H1 2024 ADJ VS H1 2023 ADJ 5,0 Recovering an upward trend driven by 4,0 cost rationalisation 3,0 2,0 1,0 H1 2023 H1 2023 ADJ H1 2024 H1 2024 ADJ 13
Slide 14: H1 2024 EBITDA margin
H1 2024 EBITDA margin (data in €m) 18,0 18.2% 20,0% H1 2024 recovery in EBITDA 16,0 15.3% 14.7% 18,0% margin mainly driven by: 15.2% 16,0% 14,0 14,0% 12,0 Strengthened focus on increasing margins 12,0% 10,0 9.2 10,0% 8.1% 8,0 7.2 7.5 CAAR Group costs rationalisation strategy 8,0% (excluded in Adjust
Slide 15: Net Debt – Debt-to-EBITDA ratio
Net Debt – Debt-to-EBITDA ratio (data in €m) 40,0 4,50 Strong deleveraging fueled 3.90 35,0 35.1 37.8 4,00 by more disciplined management 30,0 31.9 2.58 3,50 of NWC: 29.8 3,00 25,0 2.30 2,50 20,0 Net financial debt decreased to €29.8m 1.82 2,00 as at 30 June 2024 (from €37.8m as at 15,0 2023YE) refl
Slide 16: Financial sustainability
Financial sustainability TOTAL €m 31.9 35.1 37.8 29.8 60,0,0 The debt structure remains well balanced 7.3 5.2 50,0,0 between short and long term with the 4,3 4,1 Minibond to be fully reimbursed by the end 40,0,0 25.0 25.0 of 2028 20,4 18,4 30,0,0 20,0,0 11,1 CAAR deal to be finalised in October alre
Slide 17: Innovation & Sustainability
STAR7 H1 2024 INNOVATION & SUSTAINABILITY
Slide 18: Our first event for our top customers
OCTOBER 2024 Our first event for our top customers. We will showcase STAR7's solutions to enable our clients to enter the world of generative artificial intelligence. 7AI Day: STAR7 AI solutions EXPERT-IN-THE-LOOP MODEL: Combines AI with STAR7 human expertise, allowing an expert to train and refine
Slide 19: Sustainability as a competitive edge
Sustainability as a competitive edge Why STAR7 is in a privileged position to gain a lasting competitive advantage from ESG: We are well on track to ensure compliance ESG awareness is a key factor that top customers consider in their suppliers and will increasingly look at. and turn our ESG efforts
Slide 20: Final remarks
STAR7 H1 2024 FINAL REMARKS
Slide 21: STAR7's next steps
STAR7’s next steps Laying the foundations for higher margins and stronger cash flow generation in 2025 and beyond Back on track with healthy fundamentals after the full integration of CAAR achieved in 1H 2024. Getting the most out of the cost rationalisation measures undertaken. Fully leveraging the
Slide 22: Appendix
STAR7 H1 2024 APPENDIX
Slide 23: Income statement
Income statement (data in €) 30/06/2024 30/06/2023 Change Change % Net Revenues 60,365,165 50,860,071 9,505,094 18.7% Other revenues 442,626 713,669 -271,043 -38.0% Change in inventories and increases in fixed assets -231,836 51,929 -283,765 -546.4% External costs -25,626,279 -23,172,895 -2,453,384
Slide 24: Balance sheet
Balance 30/06/2024 31/12/2023 Change Change % Net intangible assets 36,113,112 38,215,878 -2,102,766 -5.5% Net tangible assets 8,781,775 9,194,650 -412,875 -4.5% Equity holdings and other financial investments sheet 536,273 277,808 258,465 93.0% Fixed assets 45,431,159 47,688,336 -2,257,177 -4.7% In
Slide 25: Cash Flow Statement
Cash Flow Statement (data in €) 30/06/2024 30/06/2023 30/06/2024 30/06/2023 A. CASH FLOW FROM OPERATING ACTIVITIES B. CASH FLOW FROM INVESTING ACTIVITIES Net profit (loss) 1,498,563 989,276 Tangible assets Income taxes 1,368,761 923,891 (Additions) -601,271 -2,686,664 Financial charges/(income) 1,67
Slide 26: Thank you
THANK YOU