Beewize S.p.a. · MIL:BWZ
Beewize — Inferentia DNM — Investor Presentation (July 2002)
41 slides from Beewize's investor presentation, July 2002
Slide 1: The new Strategic Plan - Analyst Presentation
218 3 5 261253211 30456 30456 The new Strategic Plan Analyst Presentation July 2002 1
Slide 2: Agenda
Agenda Company Profile Market Overview Competitive Positioning Strategic Plan 2001 and 2002 Results; Financial & Economic Objectives Capital Increase 2
Slide 3: Company Profile
COMPANY PROFILE Enrico Gasperini - Chairman 3
Slide 4: Highlights
Highlights Inferentia DNM Group is one of the major European players in the Web Integration and Digital Marketing sectors, with aggregate billings of over €65.5 million* • track record spanning 14 years • solid brick & mortar client base • international presence • technological know how • end-to-end
Slide 5: Mission
Mission Inferentia DNM is the preferred partner of medium to large businesses for planning, implementing and managing e-business projects , with a specific focus on marketing, sales and customer service 5
Slide 6: Milestones
Milestones 2002 2001 2000 WPP new Inferentia Strategic 1999 acquires Partner 1998 DNM 1988 Inferentia Group Inferentia established Onetone Acquisition DNM Inferentia of Grey becomes Group founded Inferentia Inferentia: Shareholder Interactive recapitalized is listed on 100% of France/ DataNord the N
Slide 7: European Presence
European Presence Strong leadership in the Italian and French markets Operational presence in the UK and Portugal Sales Offices in Spain InferentiaDNM Fullsix UK Headquarter Fullsix France Fullsix Portugal 7
Slide 8: Main Active Customers in Client Portfolio
Main Active Customers in Client Portfolio Finance • Bipop-Carire Group • APTT • Fideuram • Borsa Italiana • Banca Antoniana • Cisalpina Assicurazioni • ING Direct, SGR, EB Popolare Veneta • Zurigo / Zurinvest • BPER • Ras / Rasbank • Royal Insurance Consumer Goods • Ferrero • Illy • Colgate Palmoliv
Slide 9: Market Overview
MARKET OVERVIEW Enrico Gasperini - Chairman 9
Slide 10: A Market in Continuous Evolution
A Market in Continuous Evolution 4th generation 2000-2005 Business transformation 3rd generation 1998-2003 Transaction E-services 2nd 1st generation Supplier 1995-2000 E-commerce Integration generation 1990-1995 Interaction Transaction Customer & Presence Supplier Expanded Community Integration Info
Slide 11: Inferentia DNM's Target Market
Inferentia DNM’s Target Market Digital Services spanning Marketing and IT in Italy Sources: (A) Management estimates based on AssoComunicazione figures (2002) €15,000m (A) Marketing Services (B) IAB e PWC (2001) (C) SIRMI (2002) (A) Online Advertising €100m (B) €1,200m Communications Agencies €60m
Slide 12: Web Applications Market Segment
Web Applications Market Segment The Web Applications segment will grow from 6% (2001) to 16% (2003) of the total Application Software market € million 2.000 30% CAGR 01-03 1.750 6,7% 25% 1.500 20% 1.250 Application Software 1.000 15% Web Applications % Internet of IT 750 10% 500 5% 250 CAGR 01-03
Slide 13: Web Project Services Market Segment
Web Project Services Market Segment The Web Project Services segment will grow from 23% (2001) to 36% (2003) of the total Project Services market € million 7.000 70% CAGR 01-03 6.000 60% 9.0% 5.000 50% Project Services 4.000 40% 37% Web Project Services % Internet of IT 3.000 30% 29% 23% 2.000 CAG
Slide 14: Inferentia DNM's Target Markets
Inferentia DNM’s Target Markets Market segments where Inferentia DNM has Core Competencies InferentiaDNM Target Markets, 1999-2003 € million 1999 2000 2001 2002 E 2003 E 00/99 01/00 02/01 03/02 e-CRM 1,0 3,9 7,6 15,9 33,5 290,0% 94,9% 109,2% 110,7% e-DW Business Intelligence 0,0 2,6 8,5 20,2 37,5
Slide 15: e-CRM Solutions Market Segment
e-CRM Solutions Market Segment The effectiveness of marketing strategies adopted by medium and large organizations will depend more and more on building an effective and forward-looking CRM system Major developments expected in eCRM Focus on projects aimed at understand customer and consumer b
Slide 16: e-CRM Solutions Market Segment
e-CRM Solutions Market Segment Inferentia DNM is leader in the e-CRM Solutions and Services segment 700 655,9 60% 600 50% 485,5 500 40% 400 335,7 28,8% 30% 300 209,2 188,6 20,8% 20% 200 13,8% 101,1 74,4 11,3% 10% 100 7,7% 46,2 5,7 23,7 0 0% 1999 2000 2001 2002 E 2003 E CRM Software & Services eCRM
Slide 17: The Web Advertising Market in Europe
The Web Advertising Market in Europe Italy accounts for around 15% of the European Web Advertising market CAGR 02-07 € million 45% 6,000 90% 81% 5,023 80% Web advertising 5,000 4,347 70% 54% Variazione Change % y-o-y year-on-year 4,000 60% 3,224 47% 50% 3,000 40% 2,096 35% 2,000 30% 1,160 20% 1,00
Slide 18: Competitive Repositioning
COMPETITIVE REPOSITIONING Enrico Gasperini - Chairman 18
Slide 19: Group Repositioning
Group Repositioning Focus on profitability of orders rather than sales volume focus on e-CRM and Digital Marketing maintain end-to-end service offering focus on centers of excellence give momentum to development and reuse of proprietary solutions offer customized solutions to vertical indu
Slide 20: Repositioning in areas of highest value add
Repositioning in areas of highest value add Leadership of the e-business market, with focus on e-CRM Internet Solutions are vital to integrating key CRM functions with other company functions Strong synergies between marketing competencies and the ability to govern IT Relationship with highest l
Slide 21: Focusing the Business in Areas of Excellence
Fucusing the Business in Areas of Excellence EXTENDED ENTERPRISE Buy-side Sell-side In-side CHANNEL SUPPLIERS ENTERPRISE PARTNER SUPPLIERS PURCHASING PRODUCTION SALES CLIENTS SUPPLIERS CLIENTS 0% billings* 25% billings* 75% billings* Supply Chain Management Management Platforms / Customer Relationsh
Slide 22: Continue to offer end-to-end services
Continue to offer end-to-end services Inferentia DNM service offerings in end-to-end projects Managed Services Providing CONSULTING DESIGN IMPLEMENT Media Planning CONSULTING DESIGN BUILD PLANNING RUNNING Business Consulting Concept / Creativity Build Graphic Media Planning Upgrades Interface Conten
Slide 23: Inferentia DNM as Web Integrator
Inferentia DNM as Web Integrator Web Agency Web Integrator System Integrator FRONT END BACK END web web site site Legacy Application Server Systems Communications & Creativity (COMM) 90 Resources Software Engineering (SWE) Application 65 Resources Development System Integration & System Engineering
Slide 24: The New Strategic Plan
THE NEW STRATEGIC PLAN Marco Girelli - CEO 24
Slide 25: Overview of the new Strategic Plan
Overview of the new Strategic Plan Rationalization of Group structure and consolidation of presence in Italy and France Reduction in personnel costs and contained fixed costs Reorganization in Teams, each focusing on a vertical industry Partnerships with major international Groups in the Com
Slide 26: Rationalization of the Group
Rationalization of the Group FullSIX Integrated Other Complementary Activities Interests Businesses Network in Italy in Italy - France -I.DNM -Art -P@rtners - Portugal -I.DNM Italia -Seven -5eme Gauche - Spain -eFluxa -ProximaNet -Marketing - UK -WMC Multimedia -AudinetSinottica -Abax -Orchestra COR
Slide 27: Figures by Area
Figures by Area Figures in € million Integrated FullSIX Other Group Activities Network Holdings Consolidated In Italy 31/3/02 Value of Production 4.6 3.2 1.8 9.6 EBITDA (3.4) 0.15 (0.2) (3.6) N° Employees 341 162 83 586 Nota: the sum of the 3 areas is different from the Group Consolidated figures du
Slide 28: Personnel reductions
Personnel reductions 403 -22 381 The total cost of voluntary redundancies in -91 290 2001 was €0.46m and in 2002 (at 30th June) was €1.6 million Further cuts in personnel Employees Reductions Employees Reductions in Employees at costs are planned by the at 30/10/01 4th quarter at 1/1/2002 first
Slide 29: Map of Group Competencies
Map of Group Competencies CLIENTS CONSUMER MEDIA – OTHER TELECOMM. & FINANCE & DURABLE ENTERTAINMENT UTILITIES …. GOODS Business Teams manage Clients and Projects BT 1 BT 2 BT 3 BT 4 BT 5 Communications Professional Creativity Interactivity Content Production Competencies Project team members Softwa
Slide 30: Organization and Human Resources
Organization and Human Resources Rationalization of sales activities Rationalization of Offerings Changes to internal competencies mix Increased use of outsourcing 30
Slide 31: Strategic Partnerships
Strategic Partnerships Alliances with WPP and IBM give Inferentia DNM an edge on European competitors in integrating the value chains of services and solutions WPP, world leader in Communications Services International opportunities Co-marketing and business development IBM, world leader in IT
Slide 32: WPP Partnership
WPP Partnership WPP Advertising Network: Web strategy Young & Rubicam INTEGRATED E-brand stratgy J Walter Thompson ON-LINE & OFF-LINE Web site concept Red Cell Web advertising Brand building COMMUNICATIONS E-CRM profiling Traditional advertising Design & development Joint venture with J Walter Tho
Slide 33: 2001 and 2002 Results; Financial & Economic Objectives
2001 and 2002 RESULTS; FINANCIAL & ECONOMIC OBJECTIVES Marco Corradini - CFO 33
Slide 34: Inferentia DNM Group in 2001
Inferentia DMN Group in 2001 Crisis in the internet Services market, and strong decrease in Digital Communication spending, notably among Big Spenders Problems between major Shareholders, taking top management focus OFF business Financial restructuring, leading to considerable devaluation of s
Slide 35: 2001 Economic Results
2001 Economic Results € million 2001 2000 Fullsix Group cons. from 1 July 2001 Value of Production DNM Group cons. from 37.8 18.8 EBITDA 1 August 2001 (5.9) 2.9 EBITA (9.3) 1.7 EBIT (61.3) 1.4 € 41.3 million in Net Result Goodwill (74.1) (2.7) Write-downs Fixed Assets 45.1 7.3 Net Working Capital (2
Slide 36: First Quarter 2002
First Quarter 2002 1Q2002 still in the red… € million 1Q2002 1Q2001 Value of Production 9.6 6.2 EBITDA (3.6) 0.58 EBITA (4.7) 0 EBIT (5.5) (0.14) Pre-tax Result (6.7) (0.1) Fixed Assets 43.8 9.0 Net Working Capital (4.5) (2.8) Mid/Long Term Debts and Reserves (3.6) (0.7) 35.7 11.1 Net Capital Invest
Slide 37: Revenue trends and EBITDA per quarter
Revenue trends and EBITDA per quarter* Recovery starts in … as confirmed by 1Q2002: the 2Q2002 results the worst of the Management crisis is over… foresees 14,000 12,549 20% 12,000 10,537 10% 10% 9,588 10,000 6% 8,000 7,122 0% 6,082 6,000 -10% -10% REVENUE 4,000 -16% EBITDA -20% EBITDA% 2,000 0 -30%
Slide 38: 2002-2004 Objectives
2002-2004 Objectives € million 2001* 2002 2004 CAGR 02-04 Value of Production 65.5 ∼ 50 >20% EBITDA margin (9.7) ∼ 0% >15% Net Result (71) <0% >10% Net Financial Debt 21.8 ∼0 ∼ (5) D/E 0.92 - - * DNM figures consolidated from 1 July 2001 and Fullsix figures consolidated from 1 July 2001 38
Slide 39: Capital Increase
CAPITAL INCREASE Marco Corradini – CFO 39
Slide 40: Capital Increase with Options
Capital Increase with Options Number of new shares: 2,500,000 Issue Price: €8 (€0.5 nominal value + €7.5 premium) Maximum amount raised: €20,000,000 Options may be exercised: 8 July – 23 July Options rights may be negotiated: 8 July – 12 July Offers for options not exercised: 29 July – 2 August Cu
Slide 41: Shareholders
Shareholders BEFORE AFTER Capital Increase Capital Increase Market Market 14.4% 14.4% Onetone Onetone Group WPP Group 34.5% 11.2% 38.6% WPP 22.4% Inferentia Founding Partners Inferentia 20.8% Founding Bipop-Carire Bipop-Carire Partners 13.4% 15.0% 15.3% No. Shares No. Shares 6,954,928 9,454,928 41