Slide 1: Group Presentation - STAR Conference 2020
Group Presentation STAR CONFERENCE 2020 May 27, 2020
Slide 2: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview IT Market Trend and COVID scenario Group Results as of January 31, 2020 (9M) 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 2
Slide 3: Group Structure and Market Position
Group Structure and Market Position SeSa Group is a leading Italian IT services Consolidated revenues of Eu 1.55 Bn1 and and solutions provider 2,645 employees2 Key player driving digital transformation to the Italian economy Technology, digital services and business applications in the innovative a
Slide 4: Business Model and Investment Case
Business Model and Investment Case Continuous and Sustainable Double Digit Annual Track Record Long term partnerships Growth since 1973 since 2011 • New IT Vendors partnerships and major IT • Strategic partner of Global IT Vendors Revenues CAGR 2011-2019 (“IT Titans”), in the most innovative trends
Slide 5: External Growth as long-term growth driver: M&A timeline
External Growth as long-term growth driver: M&A timeline 2015 2016 2017 2018 2019 2020 At acquisition time As of today REVENUES Eu 36.0 Eu 23.0 Eu 56.0 Eu 22.5 Eu 39.0 Eu 66.0 ~ Eu 241.0 ~ Eu 266.0 EBITDA Eu 2.5 Eu 2.4 Eu 2.5 Eu 3.0 Eu 3.2 Eu 6.6 ~ Eu 19.5 ~ Eu 24.1 Revenues Eu 94 Revenues Eu 95 VAD
Slide 6: Leadership in Italian VAD Market
Leadership in Italian VAD Market Italian market share (1) Revenues breakdown Leadership in Italian VAD market, with 46.7%* market share. Total VAD Revenues and Other Income of Eu 1,301 Mn as of April 30, 2019 (CAGR 2011-2019 +8.7%) PCs & Others Computer Add-on Enterprise 23.5% Gross 24% Customer bas
Slide 7: Digital and Innovation Partner for Enterprises and SMEs (SSI)
Digital and Innovation Partner for Enterprises and SMEs (SSI) Revenues breakdown Digital Customer Experience VAR Group is a leading Innovation partner for Hybrid Cloud services to Offering of Business About 30 M&A over Digital Cloud 3% Italian Software and Italian SME and Enterprises customers (SaaS
Slide 8: Business Services
Business Services Revenues breakdown Digital Transformation Base Digitale with about 300 Human resources and Revenues for approximately Eu 50 million operates in the 10% supply of IT, Business Services and Business Process Outsourcing for Financial Large Enterprise, enabling Sesa Group to operate in
Slide 9: Human Capital and Social Responsibility
Human Capital and Social Responsibility 2300 2,645 Human capital development as strategic driver of 2100 Group sustainable long-term growth 1,900 1900 1700 1,642 HR CAGR 2011-19 +11.8% Recruitment Programs Training Programs Welfare Programs Social Responsibility 1500 1,427 Human Capital of about Tra
Slide 10: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview IT Market Trend and COVID scenario Group Results as of January 31, 2020 (9M) 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 10
Slide 11: Outlook and Covid scenario
Outlook and Covid scenario Current scenario & Outlook - Economic weakness and uncertainty - Acceleration of digital transformation demand from companies and organizations (new platforms and process reengineering) - Main drivers of IT demand: collaboration, security, digital commerce, cloud, in diffe
Slide 12: IT Italian Market trend 2017-2023
IT Italian Market trend 2017-2023 IT Italian market (2017-23E) in Eu Mn CAGR 2017-2023E +2.91% IT Italian Market Trend (Eu Mn) 2017 2018 2019 2020E 2021E 2022E 2023E Hardware 6,044.2 6,025.0 6,172.0 5,945.0 6,136.9 6,300.5 6,464.1 Software 3,832.7 3,845.0 3,861.3 3,762.1 3,792.6 3,830.1 3,867.6 Proj
Slide 13: Continuous and Sustainable Growth Since 90s in every phase of economic cycle
Continuous and Sustainable Growth Since 90s in every phase of economic cycle Continuous growth over-performing 1,780 - 1,820(E) the reference IT Italian market 1,551 1,363 1,271 1,230 Group Resilience to market crisis 1,060 over the last Years 948 832 812 747 Recent pipeline of new partnerships in 6
Slide 14: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview IT Market Trend and COVID crisis Group Results as of January 31, 2020 (9M) 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 14
Slide 15: 9M 2020: strong improvement of profitability and cash flow generation
9M 2020: strong improvement of profitability and cash flow generation Revenues Ebitda1 Group EAT1 Group Adj2 EAT Net Financial Position1 Eu 1,344.8 Mn Eu 69.5 Mn Eu 28.7 Mn Eu 30.9 Mn Eu 11.8 Mn (net debt) 9M 2020 (+30.7% Y/Y) Eu 1.3 Mn (net cash) (+17.3% Y/Y) (+30.3% Y/Y) (+29.5% Y/Y) (May 19 Gross
Slide 16: Group Results by Segment
Group Results by Segment Economic results as of January 31 (9 months) Jan 31, Jan 31, 2018 Jan 31, 2019 Jan 31, 2020 Jan 31, 2017 Jan 31, 2018 Jan 31, 2019 Jan 31, 2020 Jan 31, 2017 Jan 31, 2018 Jan 31, 2019 Jan 31, 2020 In Euro Mn 2017 (9M) (9M) (9M) (9M) (9M) (9M) (9M) (9M) (9M) (9M) (9M) (9M) VAD
Slide 17: Group Financial Results as of January 31, 2020
Group Financial Results as of January 31, 2020 Higher Efficiency in NWC management Group Net Financial Position1 (NFP) (Eu Mn) Consolidated Shareholders Equity (Eu Mn) 17.3% 7.6% vs 9.4% 9M 20/9M 19 +0.8 Mn 9M 201/9M 19 +27.0 Mn 9M 20/9M 19 15.7% 8.0% vs 9.4% FY 19/FY 18 +13.9 Mn 9M 201/9M 19 +16.6
Slide 18: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview IT Market Trend and COVID crisis Group Results as of January 31, 2020 (9M) 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 18
Slide 19: Group Annual Economic and Financial Results 2011-2020E as reported
Group Annual Economic and Financial Results 2011-2020E as reported 1,780 - 1,820 (E) 93 - 95 (E) 1,551 74.3 1,363 +14.8% +25-28% 1,230 1,271 +17.4% 57.9 63.1 Y/Y 1,060 Y/Y 54.0 948 EBITDA (Eu 49.5 51.6 Revenues ** 832 44.2 747 812 Mn, % on 41.3 (Eu Mn) 34.4 revenues) CAGR + 10.3% CAGR + 11.8% Apr 30
Slide 20: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview IT Market Trend and COVID crisis Group Results as of January 31, 2020 (9M) 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 20
Slide 21: Key Investor Information
Key Investor Information Sesa (Euro) 2015 2016 2017 2018 2019 Current Sesa Stock Total Return (3) based on current price MTA - MTA - MTA - MTA - MTA - MTA - Stock Market (1) 450% Star Star Star Star Star Star 416.2% Stock market price 16.34 15.40 23.60 26.30 27.75 47.0 400% DPS - Dividend per share
Slide 22: Sesa Shareholders & Management Team
Sesa Shareholders & Management Team Anima SGR S.p.A. Treasury Shares 4.998% 0.568% 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 The share capital of the holding comp
Slide 23: MTA Star Italian Stock Exchange: Governance Requirements
MTA Star Italian Stock Exchange: Governance Requirements Main STAR “status” requirements Sesa is listed in the MTA STAR 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 with t
Slide 24: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview IT Market Trend and COVID crisis Group Results as of January 31, 2020 (9M) 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 24
Slide 25: Income Statement as of January 31, 2020 as reported
Income Statement as of January 31, 2020 as reported Change Reclassified Income Statement (Euro/thousand) 9M Jan 31 2018 % 9M Jan 31 2019 % 9M Jan 31 2020 % 2020/19 Revenues 984,419 1,139,359 1,336,278 17.3% Other income 8,150 6,914 8,494 22.9% Total Revenues and Other Income 992,569 100.0% 1,146,273
Slide 26: Balance Sheet as of January 31, 2020 as reported
Balance Sheet as of January 31, 2020 as reported Change Reclassified Balance Sheet (Euro/thousand) 9M Jan 31 2018 9M Jan 31 2019 9M Jan 31 2020 2020/19 Intangible assets 37,276 44,630 66,579 21,949 Property, plant and equipment 54,104 56,223 73,697 17,474 Investments valued at equity 9,316 9,325 11,
Slide 27: Income Statement as of April 30, 2019 as reported
Income Statement as of April 30, 2019 as reported Change Reclassified Income Statement (Euro/thousand) April 30 2017 % April 30 2018 % April 30 2019 % 2019/18 Revenues 1,260,275 1,350,900 1,539,854 14.0% Other income 11,194 12,135 10,751 -11.4% Total Revenues and Other Income 1,271,469 100.0% 1,363,
Slide 28: Balance Sheet as of April 30, 2019 as reported
Balance Sheet as of April 30, 2019 as reported Change Reclassified Balance Sheet (Euro/thousand) April 30 2017 April 30 2018 April 30 2019 2019/18 Intangible assets 21,848 39,083 54,001 14,918 Property, plant and equipment 49,736 55,221 57,771 2,550 Investments valued at equity 8,835 9,179 10,030 85
Slide 29: Disclaimer
Disclaimer This document has been prepared by Sesa SpA (“SeSa” or the “Company”) or 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