Star7 S.p.a · MIL:STAR7
Star7 — H1 2022 Earnings Presentation
26 slides from Star7's earnings presentation, Sep 29, 2022
Slide 1: H1 2022 Financial Results Conference Call
H1 2022 FINANCIAL RESULTS CONFERENCE CALL 29 SEPTEMBER 2022
Slide 2: Disclaimer
Disclaimer This document (the "Document") This Document is intended The Document does not have has been prepared for the sole solely to provide selected the nature of an opinion on purpose of presenting the information to its recipients financial, legal, tax or company STAR7 S.p.A. and in no way con
Slide 3: Agenda
Agenda STAR7 H1 2022 At a glance Achievements Financial results Final remarks Appendix STAR7 H1 2022 RESULTS 3
Slide 4: Today's presenting team
Today’s presenting team Lorenzo Mondo Paolo Castagno Matteo Gera Founder & Group CEO Chief Financial Officer General Manager STAR7 H1 2022 RESULTS 4
Slide 5: At a Glance
STAR7 H1 2022 AT A GLANCE STAR7 H1 2022 RESULTS 5
Slide 6: Company overview: Unique, in a global network
Company overview Unique, in a global network Presence in 3 continents with 17 offices and more than 800 people Austria, Italy, Albania, USA, France, Spain, Germany, Denmark, Ireland, Finland, Sweden, Netherlands, Brazil, Argentina. STAR7 H1 2022 RESULTS 6
Slide 7: Company overview
Company overview GLOBAL CONTENT Proudly serving >900 Advanced language services PRINTING CLIENTS Printing, packaging and kitting services ENGINEERING Product and process engineering Globally in more than 20 PRODUCT KNOWLEDGE DIFFERENT Technical product expertise EXPERIENCE VR, AR, 3D and computer gr
Slide 8: Achievements
STAR7 H1 2022 ACHIEVEMENTS STAR7 H1 2022 RESULTS 8
Slide 9: M&A: acquisition of 100% of Vertere
M&A: acquisition of 100% of Vertere Strengthening the performance of the S7 Global Content Service Line Vertere ID ACQUISITION DATE Vertere s.r.l. is a language service provider, recognised as the Italian pioneer in the successful implementation of Computer Assisted 26 July 2022 Translation systems
Slide 10: Financial Results
STAR7 H1 2022 FINANCIAL RESULTS STAR7 H1 2022 RESULTS 10
Slide 11: H1 2022 key highlights: Revenues
H1 2022 key highlights REVENUES (data in €m) 50,0 45,0 +41% 40,0 Change % 35,0 H1 2022 – H1 2021 30,0 Strong recovery as a result of two levers: 25,0 • organic growth (+ €3.0m or +10.6% on a like-for-like basis) 20,0 39,6 • acquisition of Geo Group and LocalEyes (+ €8.6m). 15,0 Organic growth driven
Slide 12: H1 2022 key highlights: Pro-forma revenues
H1 2022 key highlights PRO-FORMA REVENUES (data in €m) 50,0 45,0 +13% 40,0 Change % 35,0 H1 2022 – H1 2021 PF 30,0 Considering pro-forma data, i.e., the same 25,0 consolidation perimeter for the two semesters, revenues are up 13%, thus proving the strong 20,0 39,6 organic growth achieved. 15,0 35,0
Slide 13: H1 2022 key highlights: Revenues bridge
H1 2022 key highlights REVENUES BRIDGE (data in € ‘000) 42.000 +13% 40.000 1.426 39.649 Change % H1 2022 – H1 2021 PF 833 49 All Group companies posted 38.000 2.386 a double-digit growth rate. +32% +22% +36% Improvement in sales 36.000 organisation in USA currently 34.956 underway, with visible resu
Slide 14: Clients' revenues breakdown by region
Clients’ Revenues breakdown by region H1 2022 INTERNATIONALISATION PROCESS MOVING FASTER 6% 8% H1 2021 PF 7% H1 2021 7% 27% 9% 59% 7% 8% 26% 60% 76% Italy USA Brazil RoW STAR7 H1 2022 RESULTS 14
Slide 15: Revenues breakdown by service
Revenues breakdown by service H1 2022 The acquisition of LocalEyes has increased the share of the Global Content business in H1 2022 while opening up new opportunities for cross selling. Cross selling activity is expected to re-balance the service mix 16% over the coming years. H1 2021 PF 38% H1 202
Slide 16: H1 2022 key highlights: EBITDA
H1 2022 key highlights EBITDA (data in €m) 9,0 +69% 8,0 7,0 Change % 6,0 H1 2022 – H1 2021 5,0 4,0 The increase reflects the impact of the 7,2 acquisition of LocalEyes (+ €2.5m) 3,0 and a 10% increase of the rest of the Group on a like-for-like basis. 2,0 4,3 1,0 Offshoring activity in Albania conti
Slide 17: H1 2022 key highlights: Pro-forma EBITDA
H1 2022 key highlights PRO-FORMA EBITDA (data in €m) 9,0 +10% 8,0 7,0 Change % 6,0 H1 2022 – H1 2021 5,0 4,0 The increase of pro-forma EBITDA 6,6 7,2 indicates that all Group companies 3,0 achieved two-digits growth, 2,0 as at revenues level. 1,0 The successful integration process is unlocking the e
Slide 18: EBITDA margin
EBITDA margin 16,0 20,0% 18,2% 18,0% 14,0 16,0% 12,0 14,0% In H1 2021, EBITDA was €4.3m, with a 15.3% margin. 14,0% In H1 2022, EBITDA margin reached 18.2%. 10,0 11,6% 12,0% 9,5% 8,0 10,0% Despite increased personnel and higher energy prices 8,0% 6,0 compared to FY21, STAR7 succeeded in achieving hi
Slide 19: Net financial position
Net financial position 50,0 60,0 3,3 45,0 3,1 50,0 40,0 2,7 2,8 40,0 25,0 25,0 35,0 30,0 30,0 2,1 2,4 20,0 25,0 2,3 11,7 12,9 19,4 10,0 16,9 20,0 1,2 10,2 2,2 8,5 6,3 0,0 15,0 29,6 -6,0 24,6 -3,4 10,0 -10,0 -23,5 -21,0 15,8 14,2 5,0 -20,0 - -30,0 FY 2019 FY 2020 FY 2021 H1 2022 FY 2019 FY 2020 FY 20
Slide 20: Final Remarks
STAR7 H1 2022 FINAL REMARKS STAR7 H1 2022 RESULTS 20
Slide 21: STAR7's commitment
STAR7’s commitment New M&A opportunities emerging The tough operating environment has increased the number of companies for sale, thus A well-focused effort enhancing our pipeline of M&A candidates. in US operations A broader range of In the US market, rebranding opportunities will help us H1 2022 r
Slide 22: Appendix
STAR7 H1 2022 APPENDIX STAR7 H1 2022 RESULTS 22
Slide 23: Income statement
Income statement 30/06/2022 30/06/2021 Change Change % 30/06/2021 PF Change Change % Net Revenues 39.649.244 28.078.559 11.570.685 41,2% 34.956.267 4.692.977 13,4% Other revenues 701.342 533.036 168.306 31,6% 738.234 - 36.892 -5,0% Change in inventories and increase in fixed assets 109.883 18.339 91
Slide 24: Balance sheet
Balance sheet Net intangible assets 30/06/2022 40.223.262 31/12/2021 41.085.421 - Change 862.159 Change % -2,1% Net tangible assets 6.324.093 6.468.228 - 144.135 -2,2% Equity holdings and other financial investments 566.687 261.329 305.358 116,8% Fixed assets 47.114.042 47.814.978 - 700.936 -1,5% In
Slide 25: Cash Flow Statement
Cash Flow Statement 30/06/2022 30/06/2021 30/06/2022 30/06/2021 A. CASH FLOW FROM OPERATIONS (INDIRECT METHOD) B. CASH FLOW FROM INVESTING ACTIVITIES Profit (loss) for the year 1.493.401 1.956.899 Tangible assets -330.869 -603.466 Income taxes 1.037.528 676.620 (Investments) -330.869 -647.444 Financ
Slide 26: Thank you
THANK YOU STAR7 H1 2022 RESULTS 26