Star7 S.p.a · MIL:STAR7
Star7 — FY2021 Earnings Presentation
29 slides from Star7's earnings presentation, Mar 28, 2022
Slide 1: FY 2021 Financial Results Conference Call
FY 2021 FINANCIAL RESULTS CONFERENCE CALL 28 MARCH 2022
Slide 2: Disclaimer
Disclaimer This document (the "Document") This Document is intended solely The Document does not have the has been prepared for the sole to provide selected nature of an opinion on purpose of presenting the information to its recipients financial, legal, tax or company STAR7 S.p.A. (the and in no wa
Slide 3: Agenda
Agenda STAR7 2021 At a glance Achievements Financial results Final remarks Appendix STAR7 FY 2021 RESULTS
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 FY 2021 RESULTS
Slide 5: At a glance
STAR7 2021 AT A GLANCE STAR7 FY 2021 RESULTS
Slide 6: Company overview: 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. STAR7 FY 2021 RESULTS
Slide 7: Company overview: Proudly serving
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: 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 9: Achievements
STAR7 2021 ACHIEVEMENTS STAR7 FY 2021 RESULTS
Slide 10: 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 Conte
Slide 11: Financial results
STAR7 2021 FINANCIAL RESULTS STAR7 FY 2021 RESULTS
Slide 12: FY 2021 key highlights: Revenues
FY 2021 key highlights REVENUES (data in €m) 70,0 +36% Change % 60,0 50,0 FY 2021 – FY 2020 40,0 Strong recovery after Covid impact with return to historic growth rate (+10% vs 2019) 30,0 59,0 Organic growth driven by: 20,0 43,5 • Gaining new customers • Successfully increasing cross-selling and upg
Slide 13: FY 2021 key highlights: Revenues bridge
FY 2021 key highlights REVENUES BRIDGE (data in € ‘000) M&A INCREASE FROM THE ACQUISITION DATE 60.000 58.000 1.180 1.432 58.992 +36% Change % 514 56.000 1.810 72 1.001 153 54.000 +32% +24% 9.370 FY 2021 – FY 2020 52.000 +12% +62% +30% 50.000 All Group companies posted a double-digit growth rate 48.0
Slide 14: FY 2021 key highlights: Proforma revenues
FY 2021 key highlights PROFORMA REVENUES (data in €m) 70,0 60,0 +18% 50,0 Change % PF 2021 – PF 2020 40,0 72,9 Considering pro-forma data, i.e., a 12-month 30,0 61,8 consolidation of the two acquisitions, revenues are up 18% (vs +36%), thus proving the strong 20,0 organic growth achieved 10,0 The co
Slide 15: Revenues CAGR
Revenues (data in €m) +19,5% 80 70 13,8 60 50 RF Y 13A 21P F 18,3 2,8 CAGR 40 .5% CA G FY 2013 – FY 2021 PF +19 30 56,3 51,1 20 42,9 43,5 35,8 27,4 10 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
Slide 16: FY 2021 key highlights: Adjusted EBITDA
FY 2021 key highlights EBITDA ADJUSTED (data in €m) 10,0 +105% 8,0 Change % 6,0 FY 2021 – FY 2020 The increase reflects the full effect of the 4,0 8,7 cost rationalisation programme started in 2020 Offshoring activity in Albania continues to 2,0 4,3 grow across all service lines 0,0 Impact of M&A ac
Slide 17: FY 2021 key highlights: Proforma adjusted EBITDA
FY 2021 key highlights PROFORMA EBITDA ADJUSTED (data in €m) +44% 12,0 10,0 Change % 8,0 FY 2021 – FY 2020 13,3 6,0 The increase in pro-forma EBITDA reflects a substantial contribution from M&A deals 4,0 9,2 in both years 2,0 0,0 FY 2020 FY 2021 STAR7 FY 2021 RESULTS
Slide 18: Clients' revenues breakdown by region
Clients’ Revenues breakdown by region INTERNATIONALISATION PROCESS MOVING FASTER 7% 7% 9% 7% 9% 8% 28% 58% 10% 7% 76% 74% FY 2019 FY 2020 PF 2021 Italy USA Brazil RoW STAR7 FY 2021 RESULTS
Slide 19: Revenues breakdown by service
Revenues breakdown by service 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. 14% 40% 16% 54% 49% 32% 46% 35% F
Slide 20: EBITDA margins
EBITDA margins 16,0 20,0% 18,2% 18,0% 14,0 14,8% 16,0% 12,0 14,0% 10,0 11,6% 12,0% 9,5% 8,0 10,0% 13,3 8,0% The EBITDA proforma expected at the time of the IPO 6,0 6,0% has been achieved. 4,0 8,7 4,0% 5,9 The comparison of FY2021 with PF2021 data proves that 2,0 4,3 2,0% the LocalEyes acquisition ha
Slide 21: Cash Flow: EBITDA-to-FCF conversion
Cash Flow 7,0 52,0% 60,0% 47% EBITDA-to-FCF 6,0 47,0% 50,0% 5,0 40,0% conversion 4,0 24,0% 30,0% 3,0 Free Cash Flow (Operating Cash Flow less CapEx excluding M&A) increased and recovered the 2019 level. 20,0% 2,0 4,1 3,1 The EBITDA-to-FCF conversion reached 47%, thus 10,0% 1,0 returning to a sound l
Slide 22: 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 23: Final remarks
STAR7 2021 FINAL REMARKS STAR7 FY 2021 RESULTS
Slide 24: 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 Supply chain disruptions and deliver furth
Slide 25: Appendix
STAR7 2021 APPENDIX STAR7 FY 2021 RESULTS
Slide 26: Income statement
Income statement 31.12.2021 31.12.2020 Change Change % Net Revenues 58,992,426 43,460,628 15,531,798 35.7% Other revenues 1,003,507 1,349,637 -346,130 -25.6% Change in inventories and increases in fixed assets 28,824 - 205,116 233,940 -114.1% External costs - 28,767,306 - 24,286,991 -4,480,315 18.4%
Slide 27: Balance sheet
Balance sheet STAR7 FY 2021 RESULTS
Slide 28: Cash Flow Statement
Cash Flow Statement 31 Dec. 2021 31 Dec. 2020 B) Cash flow from investment activities A) Cash flow from opererations (indirect method) Tangible assets Profit (loss) for the fiscal year 2,470,920 1,685,118 (Investments) (2,195,715) (1,974,827) Income taxes 887,647 448,296 Disposals 90,162 621,645 Fin
Slide 29: Thank you
THANK YOU