Sesa S.p.a. · MIL:SES
Sesa — Q1 2022 Earnings Presentation
31 slides from Sesa's earnings presentation, Sep 14, 2021
Slide 1: Group Presentation: First Quarter Results as of July 31, 2021
GROUP PRESENTATION FIRST QUARTER RESULTS AS OF JULY 31, 2021 September 14, 2021
Slide 2: Business model evolution and strategic achievements
Alessandro Fabbroni - Chief Executive Officer Business model evolution and strategic achievements Conxi Palmero - Investor Relation Manager Group Results and achievements as of July 31, 2021 (Q1) and FY 2022E Market trend and long term sustainable growth Group Structure and Business Sectors VAD, SSI
Slide 3: Business Model evolution and Strategic Achievements
Business Model evolution and Strategic Achievements ▪ Leading digital partner for SMEs and Enterprises, with business model based on services and business applications Leading digital partner for ▪ Strong coverage of business segment through dedicated business units and over 30,000 customers o/w 2,5
Slide 4: Organic growth embracing new digital trends
Organic growth embracing new digital trends Human resources development as strategic driver of Digital Enabler of Italian enterprises Group sustainable long-term growth Focus on main digital innovation trends 75% of historical growth is organic and driven by human resources development o/w 10% i
Slide 5: High Skills on Digital Transformation trends in different geographies
High Skills on Digital Transformation trends in different geographies Italy 3,305 France, Switzerland and Austria 15 dgt engineering, managed svcs Germany 70 digital engineering China 40 digital marketing 1,280 400 400 350 Spain 20 digital engineering Romania 150 software dvps ERP & Vertical for D
Slide 6: M&A as acceleration driver of organic growth
M&A as acceleration driver of organic growth Calendar Year 2015 - 2017 Calendar Year 2018 - 2019 Calendar Year 2020 Calendar Year 2021 FY April 30, 2022E1 Value Added Distribution Revenues Eu 240 Mn Revenues Eu 18 Mn Revenues Eu 50 Mn Revenues Eu 20 Mn Revenues Eu 6 Mn Revenues Eu 6 Mn Revenues Eu 3
Slide 7: Long term growth and commitment to value generation
Long term growth and commitment to value generation Long term commitment of key people Long term track record and guidance Long term stock performance Long term commitment of key people as executive REVENUES FY11 Eu 747 Mn • STOCK PERFORMANCE SINCE IPO: +1,463%2 partners of Sesa Group through ITH S.
Slide 8: Business model evolution and strategic achievements
Alessandro Fabbroni - Chief Executive Officer Business model evolution and strategic achievements Conxi Palmero - Investor Relation Manager Group Results and achievements as of July 31, 2021 (Q1) and FY2022E Market trend and long term sustainable growth Group Structure and Business Sectors VAD, SSI,
Slide 9: Q1 2022 Group Financial Results: growing profitability and cash flow generation
Q1 2022 Group Financial Results: growing profitability and cash flow generation Revenues Ebitda Group EAT Adj1 NFP2 Eu 38.5 Mn Eu 18.9 Mn Eu 137.2 Mn (net cash) (+35.7% Y/Y) (+46.1% Y/Y) vs Q1 2022 Eu 552.8 Mn (May 21 - Jul 21) (+13.3% Y/Y) Eu 34.0 Mn (net cash) Ebitda Margin EAT Adj margin 7.0% (vs
Slide 10: Outlook FY 2022 and long term track record
Outlook FY 2022 and long term track record Revenues Ebitda Group EAT Adj1 NFP Ebitda Cash Conversion FY 2022 Guidance Growth 13% Y/Y Growth 30% Y/Y Growth 34% Y/Y ratio 80% Annual Operating Cash FY 2022 Guidance Eu 2,300 Mn Eu 164 Mn Eu 77.5 Mn Flow2 Eu 130 Mn CAGR 2011-22E +10.8% +15.2%
Slide 11: EBITDA and EAT margin improvement by segment (Q1 2019-22)
EBITDA and EAT margin improvement by segment (Q1 2019-22) Group Revenues Eu Mn1 EBITDA Eu Mn EAT Adjusted Eu Mn2 Revenues by Segment1 +35.7% Y/Y 3.3% +13.3% Y/Y +46.1% Y/Y 38.5 22.2% 22.4% +30.2% Y/Y +31.9 Y/Y +10.8% Y/Y 552.8 7.0% 13.9 18.9 Jul 31 Jul 31 2018 2021 487.8 1.7 3.4% 11.9 77.8% 74.3% 28
Slide 12: EBITDA and EAT margin improvement by segment (FY 2018-22E)
EBITDA and EAT margin improvement by segment (FY 2018-22E) Group Revenues Eu Mn2 EBITDA Eu Mn EAT Adjusted Eu Mn3 Revenues by Segment2 3.8% +13% Y/Y +30% Y/Y +34% Y/Y 20.1% 23.8% 2,300 E1 +33.4% Y/Y 164 E1 +40.5% Y/Y +14.7% Y/Y 70 77.5 E1 7.0% Apr 30 Apr 30 2,037 8.5 3.4% 2018 2022E1 126
Slide 13: Cash Flow generation and NWC management
Cash Flow generation and NWC management - FY 2014 – 2022 by Quarter Growing Efficiency in NWC management FY2014 - FY2021 Quarterly1 17.3% 15.7% 14.6% NWC/Revenues 0.8% in Q1 22 vs 4.9% in Q1 21 13.3% 13.3% 12.8% 12.7% 12.6% NWC/Revenues 12.0% 11.7% 11.6% 10.9% 10.7% 11.1% 11.2% 10.5% 10.2% 10.0% 10.
Slide 14: Market trend and long term sustainable growth
Alessandro Fabbroni - Chief Executive Officer Business model evolution and strategic achievements Conxi Palmero - Investor Relation Manager Group Results and achievements as of July 31, 2021 (Q1) and FY 2022E Market trend and long term sustainable growth Group Structure and Business Sectors VAD, SSI
Slide 15: IT Market Trends
IT Market Trends $ Trillion Worldwide IT market +6.4% 5.8 7 +5.9% 5.5 Y/Y +5.4% 5.2 Y/Y Flat technology spending in 2020 due to Covid19 (-0.3% Y/Y), kept afloat by growth in New 6 4.7 +5.4% Y/Y 4.9 -0.3% Y/Y 4.9 Y/Y Technologies (+16% Y/Y) 5 +15.4% 1.2 +14.5% 1.4 +17.2% 0.8 +16.3% 0.9 +15.6% 1.0 Y/Y
Slide 16: Sesa Group and Sustainability Programs
Sesa Group and Sustainability Programs SUSTAINABILITY GOVERNANCE ACHIEVEMENTS ENVIRONMENTAL RESPONSIBILITY ▪ Mission to create sustainable value for all stakeholders ▪ Efficiency programs to reduce natural resources consumption ▪ Integration of sustainability in corporate bylaws in January 2021 ▪ Re
Slide 17: Sustainable long term growth FY 2011-2022E
Sustainable long term growth FY 2011 - 2022E 2,300 (E)1 119 (E)1 Sales and other Revenues (Eu Mn) 164 (E)1 2,037 EBIT Adjusted2 (Eu Mn) 1,776 +13% 91.8 126.0 +30% +30% Y/Y 1,551 +14.7% 68.5 +34.1% Y/Y EBITDA (Eu Mn) Y/Y 1,363 +14.5% Y/Y 94.5 Y/Y 1,230 1,271 Y/Y 55.7 +22.9% 74.3 +33.4% 48.8 1,0
Slide 18: Group Structure and Business Sectors VAD, SSI, BS
Alessandro Fabbroni - Chief Executive Officer Business model evolution and strategic achievements Conxi Palmero - Investor Relation Manager Group Results and achievements as of July 31, 2021 (Q1) and FY 2022E Market trend and long term sustainable growth Group Structure and Business Sectors VAD, SSI
Slide 19: Group Structure and Market Position
Group Structure and Market Position SeSa Group is a leading Italian digital Consolidated revenues over Eu 2 Bn and services and solutions provider 3,500 employees1 Key player driving digital transformation to the Italian economy Technology, digital services and business applications embracing new
Slide 20: Leadership in Italian VAD market
Leadership in Italian VAD market 1,600 Mn revenues, Ebitda margin 4% and 420 employees1 VAD Italian market share2 Revenues breakdown FY 2021 Customer base of over 15,000 BPs (Software Houses, System Integrators, MSP, CSP) and full coverage Device & Cloud & of the Italian territory (15 B2B branches
Slide 21: Digital and Innovation Partner for Enterprises and SMEs
Digital and Innovation Partner for Enterprises and SMEs 480 Mn revenues, Ebitda margin 11.5% and 2,500 employees1 Revenues breakdown FY 2021 Customer base of around 12,000 Enterprises as SMEs of which 2,000 abroad. Data Science 2% Customer Experience 3% Offering of digital solutions with dedicated
Slide 22: Business Services
Business Services 47 Mn revenues, Ebitda margin 6.2% and 410 employees1 Revenues breakdown FY 2021 70 Mn revenues, Ebitda margin 12.5% in FY2022E Digital Platform 13% New Sesa Sector since March 2020 Business Services Business Services, Process Outsourcing, Security Services, Digital Transform
Slide 23: Annexes Financial Statements
Alessandro Fabbroni - Chief Executive Officer Business model evolution and strategic achievements Conxi Palmero - Investor Relation Manager Group Results and achievements as of July 31, 2021 (Q1) and FY 2022E Market trend and long term sustainable growth Group Structure and Business Sectors VAD, SSI
Slide 24: Group Q1 Results as of July 31, 2021 by segment
Group Q1 Results as of July 31, 2021 by segment 3-Months as of July 31, 2021 (Q1) Y/Y Highlights Segment Informations 3M period as of July 31, 2021 (Q1) 3M period as of July 31, 2020 (Q1) Q1 2022 results (May 2021 – July 2021) In Euro Mn VAD SSI BS Corporate Group VAD SSI BS1 Corporate Group Total R
Slide 25: Group Annual Results as of April 30, 2021 by segment
Group Annual Results as of April 30, 2021 by segment Annual Results as of April 30, 2021 Y/Y Highlights Segment Informations Annual Results as of April 30, 2021 Annual Results as of April 30, 2020 Annual results as of April 30, 2021 In Euro Mn VAD SSI BS Corporate Group VAD SSI BS1 Corporate Group C
Slide 26: Income Statement as of July 31, 2021 as reported
Income Statement as of July 31, 2021 as reported Consolidated reclassified Income Statement Change Q1 July 31, 2019 % Q1 July 31, 2020 % Q1 July 31, 2021 % (Euro/thousand) 2021/20 Revenues 437,751 484,168 547,777 13.1% Other income 2,399 3,642 4,978 36.7% Total Revenues and Other Income 440,150 100.
Slide 27: Balance Sheet as of July 31, 2021 as reported
Balance Sheet as of July 31, 2021 as reported Change Consolidated Reclassified Balance Sheet (Euro/thousand) Q1 July 31, 2019 Q1 July 31, 2020 Q1 July 31, 2021 2021/20 Intangible assets 63,702 102,285 171,452 69,167 Property, plant and equipment 72,340 88,107 99,712 11,605 Investments valued at equi
Slide 28: Income Statement as of April 30, 2021 as reported
Income Statement as of April 30, 2021 as reported Consolidated reclassified Income Statement Change April 30, 2019 % April 30, 2020 % April 30, 2021 % (Euro/thousand) 2021/20 Revenues 1,539,854 1,762,641 2,022,454 14.7% Other income 10,751 13,384 14,769 10.3% Total Revenues and Other Income 1,550,60
Slide 29: Balance Sheet as of April 30, 2021
Balance Sheet as of April 30, 2021 Change Consolidated Reclassified Balance Sheet (Euro/thousand) April 30, 2019 April 30, 2020 April 30, 2021 2021/20 Intangible assets 54,001 74,273 142,826 68,553 Property, plant and equipment 57,771 83,958 99,942 15,984 Investments valued at equity 10,030 12,158 1
Slide 30: Thank you for your kind attention
Thank you for your kind attention
Slide 31: www.sesa.it Sesa Spa
www.sesa.it Sesa Spa This document has been prepared by Sesa SpA (“SeSa” or the “Company”) or 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