Star7 S.p.a · MIL:STAR7
Star7 — FY2024 Earnings Presentation
34 slides from Star7's earnings presentation, Mar 25, 2025
Slide 1: FY 2024 Financial Results
FY 2024 FINANCIAL RESULTS CONFERENCE CALL | 25 MARCH 2025
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 S.p.A. recipients and in no way constitutes a on financial, leg
Slide 3: Agenda
Company overview At a glance AGENDA Financial results Final remarks 3
Slide 4: Today's presenting team
Today’s presenting team Lorenzo Mondo Pierluigi Valletta Founder & Group CEO Chief Financial Officer 4
Slide 5: Company overview
STAR7 FY 2024 COMPANY OVERVIEW
Slide 6: STAR7: People of Content
STAR7: People of Content We create and manage product content and information, in all languages of the world. VISION We want to be the first point of reference for product content and information, blending talent, technology, data, virtual and physical, with the goal of helping companies to build th
Slide 7: A global footprint
A global footprint 2024 PERFORMANCE STAR7 TODAY 4 CONTINENTS 30 OFFICES Albania, Argentina, Austria, Brazil, Denmark, Finland, France, Germany, India, Ireland, Italy, Netherlands, Serbia, Spain, Sweden and USA 1,400+ PEOPLE 7
Slide 8: Our growth and integration story
Our growth and integration story 2000 2010 2015 2018 2020 2022 STAR Italia was STAR log opens its doors STAR becomes Foundation of STAR STAR becomes Acquisition of Vertere founded STAR S.p.A. Albania s.r.l. Italian subsidiary of the STAR Division dedicated to Company specialising Group for professio
Slide 9: A global, diversified, fast growing one-stop shop for product information lifecycle
A global, diversified, fast growing one-stop shop for product information lifecycle • PRODUCT INFORMATION LIFECYCLE MANAGEMENT GROUP NET REVENUES (EUR MN) GLOBAL CONTENT Approx. 85% from multi- Advanced language services annual contracts & 6.85x PRINTING framework agreements Printing, packaging and
Slide 10: Integrale: covering the entire value chain
7 Integrale : covering the entire value chain FY 2024 REVENUES BREAKDOWN A successful business model facilitating natural cross-selling of services BY TYPE OF SERVICE (EUR MN) FULL SERVICE SINGLE SERVICE Typical client After 26% Design Development Sales product lifecycle sales Organic growth driven
Slide 11: Our customers
Our customers Customer satisfaction drives repeat business 40% 19% 12% MOBILITY TECHNOLOGY LUXURY GOODS FY 2024 REVENUES BREAKDOWN BY TYPE OF CONTRACT MULTIANNUAL CONTRACTS AND & FRAMEWORK AGREEMENTS 29% PROJECT-BASED CONTRACTS 9% 8% 2% AGRICULTURE & MACHINERY & AEROSPACE & DEFENCE CONSTRUCTION EQUI
Slide 12: STAR7 People of Content
STAR7 People of Content Skills Map 1,438 EMPLOYEES at YE 2024 SOCIAL PERFORMANCE 2024 vs 1,326 at YE 2023 70.0 FEMALE EMPLOYEES TRAINING 60.0 EMPLOYEES UNDER 30 50.0 40.0 30.0 63.1% 37% 34% 19h 20.0 (32% in per employee 10.0 15.3% 4.1% 10.0% 7.5% managerial 0.0 Engineers PM & Language Blue Collars 3
Slide 13: At a glance
STAR7 FY 2024 AT A GLANCE
Slide 14: FY 2024 highlights
FY 2024 highlights REVENUES EBITDA / EBITDA ADJ* EBITDA MARGIN/ EBITDA PROFIT FOR THE YEAR NET DEBT MARGIN ADJ* % €119.8m €18.1m / €18.8m €3.7m €27.8m +14.8% +23.7%, +17.2%* 15.1% / 15.7% +67.0% - €10m vs FY 2023 vs FY 2023 +40 bps* vs FY 2023 vs YE 2023 vs FY 2023 €7.7m €32.7m By amortising goodwil
Slide 15: Consistent strategy execution
Consistent strategy execution STAR7 strategic guidelines clearly mirrored in the drivers of the FY 2024 revenue hike GETTING MORE AND MORE INTERNATIONAL Top-line increase fuelled by strong performance achieved in high-growth markets. MAKING THE BEST OUT OF THE INTEGRALE7 MODEL Customer needs met by
Slide 16: FY 2024 Highlights
Strong cash generation paving the way for significant deleveraging +14.8% in revenues 100% organic expansion 15.7%: adjusted EBITDA margin FY 2024 Increase of 40 bps over FY23 margin due to: ▪ higher profitability of services sold ▪ continuous search for cost rationalisation, even after the full Hig
Slide 17: Key achievements of 2024
Key achievements of 2024 In an uncertain scenario, the deep roots of customer relations and the ability to evolve the offer make all the difference Leveraging on a strategic mix of services and on a resilient business model, we achieved solid growth despite the decline in the automotive sector. Our
Slide 18: Our first event for our top customers: start-up of a new service
OCTOBER OCTOBER2024 2024 Our first event START-UP OF Afor NEWourSERVICE top LINEcustomers. We showcased STAR7's solutions to enable our clients to enter We showcased STAR7's solutions to enable our clients to enter the world of generative artificial intelligence. the world of generative artificial i
Slide 19: Financial results
STAR7 FY 2024 FINANCIAL RESULTS
Slide 20: FY 2024 revenues
FY 2024 revenues REVENUES (data in €m) 140.0 +14.8% Change % 120.0 FY 2024 vs FY 2023 100.0 The hike in 2024 revenues vs 2023 was purely organic. 80.0 Strong performance achieved on foreign markets: • USA benefitting from the intensive marketing campaign of 60.0 119.8 the last two years 104.4 • Braz
Slide 21: Revenues breakdown by region
Revenues breakdown by region STAR7 – a true global player FY 2024 For the first time in STAR7 history, Italy counts for less than 50% of total revenues. 6.3% USA and Brazil increased their weight in FY 2024 vs FY 2023, through successful up-selling and cross-selling of services. H1 2024 19.3% 6.2% F
Slide 22: Revenues breakdown by services
Revenues breakdown by services The revenue mix confirms that STAR7 positions itself as a Service By orchestrating and optimising the entire service ecosystem, STAR7 Integrator, capable of delivering comprehensive and integrated solutions creates added value for clients, ensuring efficiency, innovati
Slide 23: FY 2024 EBITDA
FY 2024 EBITDA EBITDA (data in €m) EBITDA adjusted (data in €m) 19.0 19.0 +23.7% Change % 17.0 17.0 15.0 15.0 FY 2024 VS. FY 2023 13.0 13.0 Significant recovery at EBITDA. 11.0 11.0 9.0 9.0 Adjustments mainly refer to the integration cost of the CAAR business unit. 7.0 7.0 5.0 5.0 14.6 18.1 16.0 18.
Slide 24: FY 2024 EBITDA margin
FY 2024 EBITDA margin (data in €m) Recovery in EBITDA margin driven 20.0 18.6% 18.8 20.0% by structural factors: 18.0 15.3% 15.7% 18.0% 16.0 Rationalisation of CAAR Group costs 16.0 14.0% 15.5 16.0% achieved during the integration process, 14.0 14.0% completed in 1H 2024, but with additional efficie
Slide 25: Net Debt and Debt-to-EBITDA ratio
Net Debt–Debt–to–EBITDA ratio (data in €m) 40.0 4.50 Strong deleveraging fuelled 35.0 3.80 3.90 4.00 by disciplined management of 37.8 32,7 CASH OUT 3.50 NWC 30.0 CAAR/STI 35.1 25.0 31.9 2.30 2.58 3.00 Net Financial Debt decreased to € 27.8 m 27.8 as at 31 Dec. 2024 (from € 37.8 m as at 2023YE), mai
Slide 26: Financial sustainability
Financial sustainability More focused than ever on financing TOTAL €m needs 31.9 35.1 37.8 27.8 In FY24, strong cash flow generation drove a significant 60.0 reduction of Net Financial Position. 7.3 5.2 3.0 50.0 4.3 In November 2024, STAR7 issued a non-convertible bond 40.0 worth € 13 m with a varia
Slide 27: Final remarks
STAR7 FY 2024 FINAL REMARKS
Slide 28: STAR7's next steps
STAR7’s next steps Remaining on a healthy and disciplined track to prepare a new acceleration phase from 2026 Sound fundamentals promptly restored, once completed the full integration of CAAR in 1H 2024. Focus on margins and cash generation are here to stay. India to be considered a promising market
Slide 29: STAR7 Vision
STAR7 Vision Enabling our Clients to unlock the benefits of Gen-AI INTEGRATION OF GEN-AI to strengthen competitive positioning and expand the service portfolio, creating added value for clients. BUSINESS MODEL EVOLUTION from service integrator to system/service integrator, ensuring a more end- to-en
Slide 30: Thank you
THANK YO STAR
Slide 31: Appendix
STAR7 FY 2024 APPENDIX
Slide 32: Income statement
Income statement (data in €) 31/12/2024 31/12/2023 Change Change % Net Revenues 119,824,608 104,405,634 15,418,973 14.8% Other revenues 1,445,194 941,653 503,541 53.5% Change in inventories and increases in fixed assets -127,396 275,543 -402,939 -146.2% External costs 53,092,858 47,771,247 5,321,610
Slide 33: Balance sheet
31/12/2024 31/12/2023 Change Change % Balance Net intangible assets Net tangible assets Equity holdings and other financial investments 33,804,372 10,902,322 434,141 38,215,878 9,194,650 277,808 -4,411,506 1,707,672 156,333 -11.5% 18.6% 56.3% sheet Fixed assets 45,140,834 47,688,336 -2,547,501 -5.3%
Slide 34: Cash Flow Statement
Cash Flow Statement 31/12/2024 31/12/2023 31/12/2024 31/12/2023 A. CASH FLOW FROM OPERATIONS (INDIRECT METHOD) B. CASH FLOW FROM INVESTING ACTIVITIES Net profit (loss) 3,726,764 2,231,713 Tangible assets Income taxes 2,301,846 1,178,782 (Additions) -3,685,484 -4,047,358 Financial charges/(income) 3,