Sesa S.p.a. · MIL:SES
Sesa — STAR Conference 2019
33 slides from Sesa's conference presentation, Mar 20, 2019
Slide 1: Group Presentation
Group Presentation NINE-MONTHS CONSOLIDATED RESULTS AS OF JANUARY 31st, 2019 STAR Conference, March 20th-21st, 2019
Slide 2: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of January 31st, 2019 Historical Financials Results (Track Record 2011-2019E) Governance and Investors Information Annexes (Consolidated Financial Statements) 2
Slide 3: Group Structure and market position
Group Structure and market position SeSa Group, is a leading Italian IT Consolidated revenues of about € 1.4 services and solutions provider Bn1 and about 1,800 employees2 SeSa, the Italian gateway to the digital technology • Key player to drive the digital transformation to the Italian economy • Te
Slide 4: Business Model and Investment Case
Business Model and Investment Case Continuous and Long Term Track Record Long term partnerships Sustainable Growth Growth • Continuous and sustainable growth since • Strategic partner of Global IT Vendors (“IT 1973, leveraging on major IT trends and Revenues CAGR 2011-2018 Titans”), in the most inno
Slide 5: Continuous and Sustainable Growth Since 90s
Continuous and Sustainable Growth Since 90s Continuous and sustainable organic 1,530(E) growth over-performing the reference IT 1,363 Strategic partner and service Integrator of the IT Global Vendors (IT Titans1): Italian market 1,271 1,230 long term partnerships with a wide 2011-19E Revenues* CAGR
Slide 6: Leadership in Italian VAD Market: opportunities
Leadership in Italian VAD Market: opportunities 2018 VAD market share CGI leadership in Italian VAD market, with 45.2% market share (compared with 43.8% in 2017). Total VAD Revenues and Other Income of Eu 1,153 Mn as of April 30, 2018 (CAGR 2011-2018 +8%) 50% 45.2%* 40% Customer base of over 13,000
Slide 7: IT Strategic Partner for Italian SME & Enterprise
IT Strategic Partner for Italian SME & Enterprise VAR Group is a leading Italian SSI revenues reached Eu IT innovation partner for Full offering of integrated IT Full offering of Cloud services About 25 M&A over the last Software and System 289.4 Mn as of April 30, 2018 Italian SMEs & Enterprises so
Slide 8: Human Capital and Competitive Advantages
Human Capital and Competitive Advantages Human capital: Human capital growth represents a strategic driver of Group’s growth (revenue and profitability thanks to a higher focus on added value IT services and IT consulting) 1,875 Human Capital Training and certification Proprietary Datacenter Success
Slide 9: 9M 2019 vs Historical Track Record 2011-2018
9M 2019 vs Historical Track Record 2011-2018 Revenues Ebitda Group’s EAT Group’s Adjusted EAT Revenues and Other Income Ebitda Group’s Net Profit1 Group’s Adjusted Net Profit1 Eu 1,146.3 Mn Eu 53.3 Mn Eu 22.1 Mn Eu 23.6 Mn JAN 31 (+15.5% YoY) (+16.2% YoY) (+10.2% YoY) (+11.8% YoY) 2019 (9M 19) Ebitd
Slide 10: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of January 31st, 2019 Historical Financials Results (Track Record 2011-2019E) Governance and Investors Information Annexes (Consolidated Financial Statements) 10
Slide 11: Italian IT Market 2013-2021E
Italian IT Market 2013-2021E Italian IT market trends IT Italian market (2013-2021E) in Eu Mn CAGR 2015-2021E 2.3% 20,315 20,903 19,766 +2.9% 19,019 19,270 +2.8% After a 3 year 2013-2015 declining period, the Italian IT 20000 18,616 18,470 18,817 +2.6% -4.1% 18,188 +1.9% +2.4% market grew by an aver
Slide 12: Global ICT market trend 2015-2021E
Global ICT market trend 2015-2021E Global ICT market (2015-2021) in USD Bn Global IT market trends 4500 CAGR 2016-2021E 3.3% 4,003 3,889 3,784 +3.0% 4000 3,683 +2.8% 3,398 3,527 +4.5% +2.7% 3,387 +3.8% 3500 +0.3% Enterprise Software represents the most dynamic area of 1,488 1,443 1,463 1.7% global I
Slide 13: Focus on IT market trends
Focus on IT market trends Global IT Technology Evolution Value-Added Distribution Role System Integration Role • Global Major Vendors business model • Vendors require higher specialized • Customers IT spending driven by new IT consolidation distribution services to leverage the new trends: digital s
Slide 14: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of January 31st, 2019 Historical Financials Results (Track Record 2011-2019E) Governance and Investors Information Annexes (Consolidated Financial Statements) 14
Slide 15: Group Results as of January 31, 2019 by segments
Group Results as of January 31, 2019 (9M 2019 vs 9M 2017/2018) by segments Group Revenues Eu Mn (*) EBITDA Eu Mn Net profit Eu Mn (**) Revenues by Segment (*) 1.1% 1.0% 17.1% +15.5% +16.2% +10.8% 20.6% 1,146.3 25.0 Jan 31 Jan 31 1200 53.3 25 2017 2019 50 22.6 1100 992.6 253.7 81.8% 78.4% 945.0 45.9
Slide 16: Group Results as of January 31, 2019
Group Results as of January 31, 2019 9-Months as of January 31, 2019 YoY 3-Months (Q3) as of January 31, 2019 YoY Segment Informations Nine – month period as of January 31, 2019 Nine – month period as of January 31, 2018 Segment Informations Three – month period as of January 31, 2019 Three – month
Slide 17: NWC and NFP annual average trend 2014-2019 by Quarter
NWC and NFP annual average trend 2014-2019 by Quarter Improvement in NWC management 20% 17.3% 18% 15.7% 16% 14.6% 13.3% 13.3% 12.8% 12.7% 12.6% 14% 11.7% 11.6% 12.0% 12% 11.2% 10.5% 10.9% 10.7% 11.1% 10.2% 10.0% 10.3% 10% 9.4% 9.2% 9.4% 7.4% 7.3% 8.1% NWC/Revenues 8% 6.3% 6.2% 5.5% FY2014 - FY2019 6
Slide 18: Group Financial Results as of January 31, 2019 (9M 2019 vs 9M 2018)
Group Financial Results as of January 31, 2019 (9M 2019 vs 9M 2018) Group Net Financial Position (NFP) (Eu Mn) Group Shareholders Equity (Eu Mn)* 28.7 250 9M 19 Consolidated NFP 239.8(E) 25 improved by Eu 8.1 Mn 20.6 224.6 (39.1%) from Eu 20.6 Mn in 12.6 216.0 208.5 9M 18 (net debt) to Eu 12.6 199.0
Slide 19: External Growth to boost Group's Development
External Growth to boost Group’s Development External Growth to support Group’s Group 2015-2019 Main Acquisitions – around Eu 40 mn over last 4 year focused in valued added areas of IT strategy aiming at developing service solutions and valued-added areas of Target Overview Investment rationale Year
Slide 20: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of January 31st, 2019 Historical Financials Results (Track Record 2011-2019E) Governance and Investors Information Annexes (Consolidated Financial Statements) 20
Slide 21: Group Annual Economic Results 2011-2019E as reported
Group Annual Economic Results 2011-2019E as reported 1550 1,530(E) 75 72.5(E) 1,363 +12.2% 63.1 1300 1,230 1,271 65 57.9 +14.8% 1,060 YoY 51.6 54.0 YoY 55 49.5* 1050 948* 44.2 747 812 832 EBITDA (Eu 45 41.3 Revenues ** 800 Mn, % on 34.4 (Eu Mn) revenues) 35 550 25 CAGR + 9.4% CAGR + 9.8% 300 15 5 50
Slide 22: Adjusted Group Annual Economic Results 2011-2019E
Adjusted1 Group Annual Economic Results 2011-2019E 35,0 55 51.3(E) 29.7(E) 43.7 44.8 46.3 +10.8% 30,0 +10.7% 26.9 39.9* 41.4 Net profit YoY 45 25.0 YoY 24.0 25,0 34.7 35.0 attributable 19.9 20.7* 21.8 EBIT 35 to the 20,0 (Eu Mn, % 25.3 16.8 on revenues) 25 Group (Eu Mn, % on 15,0 11.5 15 CAGR + 9.2%
Slide 23: Group Annual Financial Results 2011-2019E
Group Annual Financial Results 2011-2019E Group Shareholders Equity* (Eu Mn) Net Financial Position (Eu Mn) Net Financial Position (Cash/Net Liquidity) equal 53.5 to Eu 54.7 Mn as of April 30, 2018 (up Eu 2.7 Mn 50 255 compared to April 30, 239.8(E) 2017) improved by 5% YoY net of gross investment 2
Slide 24: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of January 31st, 2019 Historical Financials Results (Track Record 2011-2019E) Governance and Investors Information Annexes (Consolidated Financial Statements) 24
Slide 25: Key Investor Information
Key Investor Information 9M Sesa (Euro) 2015 2016 2017 2018 2019 SeSa Stock Trend Index MTA - MTA - MTA - MTA - 151.2% Stock Market (1) MTA 160% Star Star Star Star Stock market price 16.34 15.40 23.60 26.30 26.25 140% 115.5% DPS - Dividend per share (*) 0.45 0.48 0.56 0.60 0.60 120% Total Dividend
Slide 26: Sesa Shareholders & Management Team
Sesa Shareholders & Management Team Treasury Shares 0.424% SeSa shares are listed in the MTA Italian Stock Exchange since October 23, 2013 (transition on MTA STAR Segment on February 16, 2015) Total 15,494,590 outstanding ordinary shares Market ITH S.p.A. 46.762% 52.814% The share capital of the hol
Slide 27: STAR Segment Stock Exchange Governance Requirements
STAR Segment Stock Exchange Governance Requirements Main STAR “status” requirements Sesa is listed in the MTA STAR segment of Borsa Italiana (Italian Stock Exchange) dedicated to mid-size companies , Interim financial statements available to the public within 45 days from the Quarter 1 compliant wit
Slide 28: Annexes - Consolidated Financial Statements
Annexes - Consolidated Financial Statements Group Overview ICT Market Trend Group Results as of January 31st, 2019 Historical Financials Results (Track Record 2011-2019E) Governance and Investors Information Annexes (Consolidated Financial Statements) 28
Slide 29: Income Statement as of January 31st, 2019 as reported
Income Statement as of January 31st, 2019 as reported Change Reclassified Income Statement (Euro/thousand) 01/31/2019 % 01/31/2018 % 01/31/2017 % 2019/18 Revenues 1,139,359 984,419 937,701 15.7% Other income 6,914 8,150 7,348 -15.2% Total Revenues and Other Income 1,146,273 100.0% 992,569 100.0% 945
Slide 30: Balance Sheet as of January 31st, 2019 as reported
Balance Sheet as of January 31st, 2019 as reported Change Reclassified Balance Sheet (Euro/thousand) 01/31/2019 01/31/2018 2019/18 Intangible assets 44,630 37,276 7,354 Property, plant and equipment 56,223 54,104 2,119 Investments valued at equity 9,325 9,316 9 Other non-current receivables and defe
Slide 31: Income Statement as of April 30th, 2018 as reported
Income Statement as of April 30th, 2018 as reported Change Reclassified Income Statement (Euro/thousand) 04/30/2018 % 04/30/2017 % 04/30/2016 % 2018/17 Revenues 1,350,900 1,260,275 1,223,485 7.2% Other income 12,135 11,194 6,117 8.4% Total Revenues and Other Income 1,363,035 100.0% 1,271,469 100.0%
Slide 32: Balance Sheet as of April 30th, 2018 as reported
Balance Sheet as of April 30th, 2018 as reported Change Reclassified Balance Sheet (Euro/thousand) 04/30/2018 04/30/2017 2018/17 Intangible assets 39,083 21,848 17,235 Property, plant and equipment 55,221 49,736 5,485 Investments valued at equity 9,179 8,835 344 Other non-current receivables and def
Slide 33: Disclaimer
Disclaimer This document has been prepared by Sesa SpA (“SeSa” or the “Company”) and 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 any other