Esprinet S.p.a. · MIL:PRT
Esprinet — Esprinet Group Investor Conference, Milan 2015
48 slides from Esprinet's conference presentation, Sep 15, 2015
Slide 1: Esprinet Group Investor Conference
Esprinet Group Investor Conference Milan, 15th September 2015
Slide 2: Disclaimer
Disclaimer This Presentation may contain written and oral “forward-looking statements”, which includes statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, proje
Slide 3: Agenda
Agenda • Company Overview • Corporate Governance • First half 2015 Financial Highlights • Competitive Positioning • Next steps 3
Slide 4: Group Structure
Group Structure Esprinet SpA: IT & CE distributor (Italy) 9,5% 100% 100% 80% Accessories Dealers’ consortium Esprinet Iberica: IT Value-Added Company cloud service provider & CE distributor Distributor (Italy) (Spain, Portugal) (Italy) 25% 100% 100% Celly Celly Swiss Nordic 100% Celly Pacific 4
Slide 5: Esprinet milestones
Esprinet milestones • Established in ‘70s under the name Comprel, semiconductor distributor in Italy Sales • Mid ’80s: start of Celo and Micromax business, Italian IT distributors • 2000: merger of Celo, Micromax and Comprel, under the brand-new Esprinet (Italian 2nd largest distributor) • July 2001
Slide 6: Esprinet position in the IT Supply Chain
Esprinet position in the IT Supply Chain 6 Hardware & Software Vendors 1st TIER € 71 billion in Europe(2) 1st TIER D 2nd TIER € 5-6 b in Italy(1) I € 2-3 b in Spain(3) R E C IT & Consumer Electronics T Wholesale Distributors C H A N Consumer Oriented Resellers Business Oriented Resellers N (Retailer
Slide 7: Esprinet core business is B2B distribution…
Esprinet core business is B2B distribution… Value Chain Software Vendors Hardware Vendors Distributors VAR’s/ resellers Stage Market size Product/ Service HW/SW VARs VARs Average EBIT 20-30% 8-12% 1-3% 2-4% 6-8% B2B distribution M€ Segment revenues (M€) 2,3B€ 98,5% % Segment revenues on total revenu
Slide 8: …in Italy, Spain, Portugal across all IT and Consumer Electronics categories
…in Italy, Spain, Portugal across all IT and Consumer Electronics categories GEOGRAPHICAL PRESENCE CATEGORIES • With few exceptions (Cisco, Sun, Oracle and other minor vendors) Esprinet distributes all the main vendors in all categories REVENUES % 1.663M€ 73% 605M€ 27% Source: Internal Company data.
Slide 9: ..with a strong portfolio of Vendors and products…
..with a strong portfolio of Vendors and products… Desktop System Notebook Tablet Consumables Toner, Ink, ect. Accessories Monitor Other IT Networking devices & consumer software Peripherals Consumer software Phones Mobility Accessories Digital camera Other Navigators consumer TV electronics Other (
Slide 10: …providing different clusters of customers with different solutions
…providing different clusters of customers with different solutions MAIN SALES VERTICAL CUSTOMER SIZE CORE OFFERAL PLATFORM SALES FORCE WEB SMB Corporate Hardware and Software 57%* 43% Reseller + Services TELESALES CASH & CARRY V-VALLEY MOBILE PHONE BU FIELD SALES Services (complex solutions) SUPPLI
Slide 11: Customer value proposal and operational KPI
Customer value proposal and operational KPI PRT KPI CORE OFFERING OPTIONAL SERVICES PRT KPI • Sourcing of products ((heavy rotation) SMB 77,000 36,000 STOCK/LOGISTICS • Range and availability: one Stop Shop • Sourcing of products (long tail) RET VAR SQM items in stock SMB • Back to back ordering RET
Slide 12: Support that vendors expect from distributors depends on vendor maturity
Support that vendors expect from distributors depends on the status of vendor "maturity" in the mkt and on customer channel VENDORS CONSOLIDATED VENDORS EMERGING VENDORS • Direct salesforce present in the • Limited presence in the mkt: mkt ROLE OF DISTRIBUTORS market coverage is delegated to EXPECTE
Slide 13: Vendors expect distributors to support them with commercial expansion
Consolidated vendors need support in logistics and credit mgmt; emerging vendors expect distributors to support them with commercial expansion CONSOLIDATED VENDORS EMERGING VENDORS 1 • Limited role of distributors linked to • Not being well known in the market and not having a presence of vendor's d
Slide 14: Agenda
Agenda • Company Overview • Corporate Governance & Share information • First half 2015 Financial Highlights • Competitive Positioning • Next steps 14
Slide 15: Board of directors
Board of directors Competitive- Remuneration Francesco Monti, was born in Bovisio ness and Strategy Control and and Appoint- Masciago on 1st April 1946. With a diploma in Name Position Executive Indipendent Risks Sustainability Committee ments Committee industrial electronics, he began his professio
Slide 16: Shareholders
Shareholders Shareholders’ breakdown Monti; 15.7% Stefanelli; 12.1% Others; 54.2%; 54% Rota; 5.4% Cattani; 1.5% Esprinet own shares;… Bestiver; 9.9% Monti, Stefanelli, Rota and Cattani are members of the Board of Directors recently named by the 2015 ASM for the next three-years period th Source: Man
Slide 17: Agenda
Agenda • Company Overview • Corporate Governance & Share information • First half 2015 Financial Highlights • Competitive Positioning • Next steps 17
Slide 18: First half 2015 Group main results
First half 2015 Group main results Consolidated sales, equal to € 1,236.4 million showed an increase of +20% (€ 203.4 million) compared to € 1,033.0 million of the first half 2014. In the second quarter consolidated sales increased by +19% compared to the same period of the previous year (from € 520
Slide 19: First half 2015 Profit & Loss
First half 2015 Profit & Loss H1 H1 (euro/000) % % Var. Var. % 2015 2014 Sales 1,236,389 100.00% 1,032,970 100.00% 203,419 20% Cost of sales (1,160,524) -93.86% (967,957) -93.71% (192,567) 20% Gross profit 75,865 6.14% 65,013 6.29% 10,852 17% Sales and marketing costs (21,968) -1.78% (17,467) -1.69%
Slide 20: Second quarter 2015 Profit & Loss
Second quarter 2015 Profit & Loss Q2 Q2 (euro/000) % % Var. Var. % 2015 2014 Sales 618,839 100.00% 520,392 100.00% 98,447 19% Cost of sales (580,604) -93.82% (486,320) -93.45% (94,284) 19% Gross profit 38,235 6.18% 34,072 6.55% 4,163 12% Sales and marketing costs (10,978) -1.77% (9,520) -1.83% (1,45
Slide 21: First half 2015 Profit & Loss – subgroup Italy
First half 2015 Profit & Loss – subgroup Italy H1 H1 (euro/000) % % Var. Var. % 2015 2014 Sales to third parties 951,492 100.00% 788,341 100.00% 163,151 21% Intercompany sales 21,776 2.29% 21,412 2.72% 364 2% Sales 973,268 102.29% 809,753 102.72% 163,515 20% Cost of sales (910,784) -95.72% (755,920)
Slide 22: First half 2015 Profit & Loss – subgroup Iberica
First half 2015 Profit & Loss – subgroup Iberica H1 H1 (euro/000) % % Var. Var. % 2015 2014 Sales to third parties 284,896 100.00% 244,628 100.00% 40,268 16% Intercompany sales - - - 0.00% - 0% Sales 284,896 100.00% 244,628 100.00% 40,268 16% Cost of sales (271,475) -95.29% (233,460) -95.43% (38,015
Slide 23: First half 2015 Profit & Loss by legal entity
First half 2015 Profit & Loss by legal entity H1 2015 Italy Iberica (euro/000) E.Spa Elim . and E.Iberica Elim . and Celly* Total Group + V-Valley other + E.Portugal other Sales to third parties 939,662 11,830 - 951,492 284,896 - 1,236,389 Intersegment sales 22,443 - (667) 21,776 - (21,776) - Sales
Slide 24: Group Balance sheet as at 30th June 2015
Group Balance sheet as at 30th June 2015 (euro/000) 30/06/2015 % 31/12/2014 % Var. Var. % Fixed assets 99,923 32.12% 98,058 67.82% 1,865 2% Operating net w orking capital 238,665 76.72% 77,431 53.55% 161,234 208% Other current assets/liabilities (16,014) -5.15% (18,804) -13.00% 2,789 -15% Other non-
Slide 25: Agenda
Agenda • Company Overview • Corporate Governance & Share information • First half 2015 Financial Highlights • Competitive Positioning • Next steps 25
Slide 26: Esprinet context and current positioning
Esprinet context and current positioning 1• Playing in geographical areas with prospective of recovery Context 2• Increasing volumes are shift toward distributors across different categories 3• #1distributor in Italy and #3 in Spain, with growing share Current Positioning 4• Leader in distributors m
Slide 27: Playing in geographical areas with prospective of recovery
Playing in geographical areas with prospective of recovery NOMINAL GDP VS. IT SPENDING NOMINAL GDP VS. CE SPENDING IT sales are very correlated to the macro-economic environment CE sales are also quite correlated to the macro-economic environment Average IT spending* as % GDP is 2,7% Portugal, Spain
Slide 28: Outlook for Italy, Spain and Portugal sees a significant recovery
Outlook for Italy, Spain and Portugal sees a significant recovery 09-14 14-19 2014=100 CAGR CAGR 0,3% 3,3% Nominal GDP per capita -0,3% 3,2% Index 0,4% 1,7% -0,5% 2,8% -0,8% 2,3% Disposable Income -0,4% 1,3% per capita Index 2010-14 cagr Unemployment Rate 8,5% -4,5% Index 6,6% -5,6% 10,0% -6,1% Sour
Slide 29: Increasing volumes are shift toward distributors across different categories
Increasing volumes are shift toward distributors across different categories ICT MARKET: SHARE INTERMEDIATED BY DISTRIBUTORS IN ITALY AND SPAIN (% | 2009-2014) % on total market value +8.5pts ROLE OF DISTRIBUTORS IS EXPECTED TO INCREASE SINCE… • …deflation in the hardware market is making direct sal
Slide 30: Leadership in Italy and #3 in Spain with growing trajectory
Leadership in Italy and #3 in Spain with growing trajectory ITALY: SPAIN: MARKET SHARE (2013) MARKET SHARE (2013) Source: Source: Channel Partner 2013, Ametic, GTDC, management’s estimates 30
Slide 31: Esprinet profitability above other EU Multinational Distributors
Esprinet profitability above other EU Multinational Distributors EBIT MARGIN BENCHMARK WITH EUROPEAN MULTINATIONAL DISTRIBUTORS 3.0% 2.5% 2.5% 1.9% 2.0% 1.8% 1.8% 1.5% 1.3% 1.3% 1.3% 1.3% 1.2% 1.1% 1.1% 1.1% 1.1% 1.0% 0.9% 1.0% 0.8% 0.8% 0.7% 0.5% 0.5% 0.2% 0.0% 2010 2011 2012 2013 2014 Esprinet Als
Slide 32: First Half 2015 European Distribution Channel Data
First Half 2015 European Distribution Channel Data 1Q14 vs 2Q14 vs 1H 2014 vs 3Q14 vs 4Q14 vs 2H 2014 vs 1Q15 vs 2Q15 vs 2H 2015 vs Y-o-Y by country lug-15 1Q13 2Q13 1H13 3Q13 4Q13 2H13 1Q14 2Q14 2H14 Total 7.8% 11.7% 7.6% 9.6% 8.2% 8.5% 8.4% 4.3% 3.3% 3.8% Germany 7.6% 5.5% 6.9% 6.2% 4.4% 5.5% 5.0%
Slide 33: Agenda
Agenda • Company Overview • Corporate Governance & Share information • First half 2015 Financial Highlights • Competitive Positioning • Next steps 33
Slide 34: Next steps: three strategic pillars and several initiatives
Next steps: three strategic pillars and several initiatives 1• Invest in capabilities enhancement - logistic assets: to be best partner as “fulfiller” (volume categories and consolidated vendors) • Remain leader in - sales skills: to better promote to customers new technologies (e.g. Italy with ~2,5
Slide 35: Outlook
Outlook According to GTDC-Context first half 2015 data, the Italian distribution market grew by +13% compared to the preceding year. Tablets (+24%), toner and software were the bears, whilst smartphone (+155%) and notebook (+10%) were the bulls. The Spanish distribution grew by +20% (source: GTD
Slide 36: Annex
esprinet Annex
Slide 37: Mission, Strategy and Corporate Values
Mission, Strategy and Corporate Values MISSION AND STRATEGY To be the best technology distributor operating in its relevant markets, assuring shareholders above- average return on investment thanks to precise, serious, honest, reliable, and innovative management of the customer and vendor relationsh
Slide 38: Code and principles
Code and principles The Code of Ethics The Code of Ethics applies to all activities performed by or in the name and on behalf of Esprinet S.p.A. and its subsidiaries (hereafter also the "Group or the " Group Company"). The Code of Ethics: lays down conduct guidelines and regulates the body of righ
Slide 39: Shares
Shares Since July 25th 2001, Esprinet’s shares have been listed on the Italian Stock Exchange Esprinet's offering price was Euros 14.0 per share (correspondent to 1.4 euro as an Esprinet’s stock-split 1:10 occurred in May 2005): Type of share: Ordinary shares Number of shares outstanding: 52.404.340
Slide 40: Brokers’ consensus
Brokers’ consensus Source: Factset, March 23 2015 (based on Intermonte and Banca IMI analysts). Consensus data represent just the street’s opinions of brokers and can not be considered in any way confirmed by Esprinet. 40
Slide 41: Self-Service: www.esprinet.com, the market standard
Self-Service: ww.esprinet.com, the market standard FEATURES Product availability in real time, Detailed product data sheets including options, accessory and complementary product. Cross-selling “intelligent” system Multiple product research (by type, multilevel, advanced, textual as well as by
Slide 42: Self-Service: esprivillage, Cash & Carry stores
Self-Service: esprivillage, Cash & Carry stores Born in 1988, Esprinet runs 17 Cash & Carry stores under the esprivillage brand, strategically located throughout the Italian territory to ensure proximity to customers and vendors. The esprivillage sales platform is particularly appreciated by the sma
Slide 43: ‘High-Touch’ Corporate with 3 divisions: IT Value, Corporate, SMB
‘High-Touch’ Corporate with 3 divisions: IT Value, Corporate, SMB V-Valley: the IT Corporate Account SMB Division Value Division Division • Value Added • The ‘Inner Club’ • The right place Distribution for for top corporate for small-mid VARs: distributing resellers resellers datacenter solutions •
Slide 44: ‘High-Touch’ Retailer
‘High-Touch’ Retailer • The largest distributor in the retailer’s space • A seasoned sales team • In daily touch with retailers, a number of tailor-made services: Sales Services: • Category Management: category managers analyze retailers’ sell out and therefore suggest the best fitting products •
Slide 45: ‘High-Touch’ for vertical clusters: Supplies, Mobility
‘High-Touch’ for vertical clusters: Supplies, Mobility SUPPLIES BUSINESS UNIT MOBILE PHONE BUSINESS UNIT • The #1 in Italy as per market share • A specialized business unit where and number of customers since years; Esprinet has strongly invested one of the top in Spain • Product portfolio of a spec
Slide 46: V-Valley: the value of esprinet
V-Valley: the value of esprinet Value added distribution is more than a mission for esprinet. It’s a company called V-Valley, a team of sales and marketing certificated experts, totally dedicated on vendors and customers who are focused on high-end solutions. In Q1-2015 the first Cash & Carry in Spa
Slide 47: Global Tech Distribution Council: contributors to Context data
Global Tech Distribution Council: contributors to Context data 47
Slide 48: Contacts
Contacts: http://investor.esprinet.com [email protected] www.esprinet.com Investor Relations Director: Michele Bertacco [email protected] +39 02 40496.1
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