Star7 S.p.a · MIL:STAR7
Star7 — Euronext Growth Conference 2022
33 slides from Star7's conference presentation, May 26, 2022
Slide 1: Euronext Growth Conference 26 May 2022
EURONEXT GROWTH CONFERENCE 26 MAY 2022
Slide 2: Disclaimer
Disclaimer This document (the "Document") This Document is intended solely to The Document does not have the has been prepared for the sole provide selected information to nature of an opinion on financial, purpose of presenting the its recipients and in no way legal, tax or administrative company S
Slide 3: Agenda
Agenda STAR7 2021 At a glance Achievements Financial results Final remarks Appendix EURONEXT GROWTH CONFERENCE 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 EURONEXT GROWTH CONFERENCE 4
Slide 5: At a Glance
AT A GLANCE EURONEXT GROWTH CONFERENCE 5
Slide 6: Unique, in a global network
Company overview Unique, in a global network Presence in 3 continents with 16 offices and more than 700 people Austria, Italy, Albania, USA, France, Spain, Germany, Denmark, Ireland, Finland, Sweden, Netherlands, Brazil, Argentina. EURONEXT GROWTH CONFERENCE 6
Slide 7: Company overview
Company overview Proudly serving GLOBAL CONTENT >900 Advanced language services PRINTING Printing, packaging and kitting services CLIENTS 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: Addressing a large and loyal international customer base
Addressing a large and loyal international customer base 29% 20% 18% 12% MOBILITY TECHNOLOGY LUXURY GOODS AGRICULTURE & 2021PF* revenues breakdown by type of service (Eu mn) CONSTRUCTION EQUIPMENT MULTI-YEAR CONTRACTS 16 & FRAMEWORK AGREEMENTS % NEW CONTRACTS 72.9 VOLUMES 3% 7% 2% 1% MACHINERY & MAC
Slide 9: Integrale7: covering the entire value chain
Integrale7: covering the entire value chain An innovative business model favouring a physiological cross selling of services 2021PF revenues breakdown by type of service (Eu mn) Integrale % on full-service revenues 35 60% % Typical client After product lifecycle Design Development Sales sales 72.9 6
Slide 10: Using technology to enhance digital transformation
Using technology to enhance digital transformation Investing in technology to move towards virtualization of product information DIGITAL ENABLERS UNDER DEVELOPMENT STAR7 INTERNAL APPLICATIONS ALCOR DEDICATED TEAM Immersive reality training platform OF 8+ PEOPLE* AT YE21PF Tech Doc Workflow MIZAR Tec
Slide 11: 2021 - STAR7 leverages a broad range of drivers
2021 - STAR7 leverages a broad range of drivers Surfing again the megatrend waves that drove STAR7’s growth before the pandemic: Successfully up-selling and cross-selling our services to meet • Sustainability strong demand from customers, as • Digital transformation they enrich and extend their offe
Slide 12: Achievements
STAR7 2021 ACHIEVEMENTS EURONEXT GROWTH CONFERENCE 12
Slide 13: 2021 Relevant events and achievements
2021 Relevant events and achievements JANUARY MARCH APRIL MAY NOVEMBER DECEMBER Business M&A M&A Business M&A STAR7 on EGM consolidation consolidation Grafitec Consolidation Digital printing centre, American translation Consolidation of the Irish company specialised New business of the Global Conten
Slide 14: Financial Results
STAR7 2021 FINANCIAL RESULTS EURONEXT GROWTH CONFERENCE 14
Slide 15: FY 2021 key highlights: revenues
FY 2021 key highlights REVENUES (data in €m) 70,0 +36% Change % 52,5 FY 2021 – FY 2020 Strong recovery after Covid impact with return to historic growth rate (+10% vs 2019) 35,0 Organic growth driven by: 59,0 • Gaining new customers • Successfully increasing cross-selling and upgrading 43,5 the serv
Slide 16: FY 2021 key highlights: revenues bridge
FY 2021 key highlights REVENUES BRIDGE (data in € ‘000) M&A INCREASE FROM THE ACQUISITION DATE +36% +32% +24% Change % FY 2021 – FY 2020 +12% +62% +30% All Group companies posted a double-digit growth rate The Revenues coming from newly consolidated companies accounted only for €2.6 m in 2021 +28% C
Slide 17: FY 2021 key highlights: proforma revenues
FY 2021 key highlights PROFORMA REVENUES (data in €m) 75,0 +18% 56,3 Change % PF 2021 – PF 2020 Considering pro-forma data, i.e., a 12-month 37,5 72,9 consolidation of the two acquisitions, revenues are 61,8 up 18% (vs +36%), thus proving the strong organic growth achieved 18,8 The contribution from
Slide 18: Revenues
Revenues (data in €m) +19.5% 80, 13,8 60, 18,3 2,8 CAGR 40, FY 2013 – FY 2021 PF 56,3 51,1 20, 42,9 43,5 35,8 27,4 17,5 7,4 0, FY10A FY13A FY15A FY17A FY18A FY19A FY20PF FY21PF STAR7 successfully leverages both organic growth and M&A to achieve continued expansion over time A M&A PF EURONEXT GROWTH
Slide 19: FY 2021 key highlights: adjusted EBITDA
FY 2021 key highlights EBITDA ADJUSTED (data in €m) EBITDA 11,0 +105% 8,3 Change % FY 2021 – FY 2020 5,5 The increase reflects the full effect of the cost 8,7 rationalisation programme started in 2020 Offshoring activity in Albania continues to grow across 2,8 all service lines 4,3 Impact of M&A acc
Slide 20: FY 2021 key highlights: proforma adjusted EBITDA
FY 2021 key highlights PROFORMA EBITDA ADJUSTED (data in €m) EBITDA 13,5 +44% 10,1 Change % FY 2021 – FY 2020 6,8 13,3 The increase in pro-forma EBITDA reflects 9,2 a substantial contribution from M&A deals 3,4 in both years 0,0 FY 2020 FY 2021 EURONEXT GROWTH CONFERENCE 20
Slide 21: Clients' Revenues breakdown by region
Clients’ Revenues breakdown by region PF 2021 INTERNATIONALISATION PROCESS MOVING FASTER 7% 7% FY 2020 9% FY 2019 28% 7% 58% 9% 8% 10 % 7% 74 76% % Italy USA Brazil RoW EURONEXT GROWTH CONFERENCE 21
Slide 22: Revenues breakdown by service
Revenues breakdown by service PF 2021 The acquisition of LocalEyes has increased the share of the Global Content business in FY21 while opening up new opportunities for cross selling Cross selling activity is expected to re-balance the service mix 14% over the coming years. FY 2020 40% 14% FY 2019 1
Slide 23: EBITDA
EBITDA 16,0 23,8% 18,2% 19,0% 12,0 14,8% 14,3% 11,6% 8,0 9,5% 13,3 9,5% The EBITDA proforma expected at the time of the IPO has been achieved. 4,0 8,7 5,9 4,8% 4,3 The comparison of FY2021 with PF2021 data proves that 0,0 0,0% the LocalEyes acquisition has increased both the size FY 2019 FY 2020 FY
Slide 24: Cash Flow
Cash Flow 7,0 52,0% 60,0% 47% EBITDA-to-FCF 47,0% 5,3 45,0% conversion 3,5 24,0% 30,0% Free Cash Flow (Operating Cash Flow less CapEx excluding M&A) increased and recovered the 2019 level. 4,1 1,8 15,0% 3,1 The EBITDA-to-FCF conversion reached 47%, thus returning to a sound level, which does not ref
Slide 25: Net financial position
Net financial position 60,0 50,0 3,3 50,0 45,0 3,1 40,0 2,7 40,0 25,0 35,0 30,0 2,0 30,0 2,4 20,0 2,3 2,3 12,9 25,0 11,7 10,0 16,9 20,0 10,2 1,2 2,2 8,5 0,0 15,0 -6,0 24,6 24,6 -10,0 -3,4 10,0 -23,5 15,8 14,2 5,0 -20,0 - -30,0 FY 2019 FY 2020 FY 2021 PF 2021 FY 2019 FY 2020 FY 2021 Banks Others Leve
Slide 26: Final Remarks
STAR7 2021 FINAL REMARKS EURONEXT GROWTH CONFERENCE 26
Slide 27: STAR7's commitment
STAR7’s commitment Ready for new M&A opportunities We are experiencing a seamless integration of We target organic growth LocalEyes. through a selective Such a fluid process approach encourages us to explore new M&A opportunities to 2021 results are a first deliver further value. Supply chain disrup
Slide 28: M&A as a potential accelerator for service offering expansion
M&A as a potential accelerator for service offering expansion Strategic M&A to accelerate internationalization and market penetration Company engaged in Player in the Experience landscape Language Service Provider Engineering and Product Knowledge To expand the product offering To consolidate market
Slide 29: Appendix
STAR7 2021 APPENDIX EURONEXT GROWTH CONFERENCE 29
Slide 30: Income statement
Income statement EURONEXT GROWTH CONFERENCE 30
Slide 31: Balance sheet
Balance sheet EURONEXT GROWTH CONFERENCE 31
Slide 32: Cash Flow Statement
Cash Flow Statement INVESTOR MEETINGS 32
Slide 33: Thank you
THANK YOU