Sesa S.p.a. · MIL:SES
Sesa — Investor Presentation (September 2018)
33 slides from Sesa's investor presentation, Sep 27, 2018
Slide 1: Group Presentation
Group Presentation ITALIAN STOCK MARKET OPPORTUNITIES Milan - September 27th, 2018
Slide 2: Group Overview, ICT Market Trend, Results agenda
Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of July 31st, 2018 Historical Financials Results (Track Record 2011-2019E) Governance and Investors Information Annexes (Consolidated Financial Statements) 2
Slide 3: Group Structure
Group Structure SeSa Group is a leading Italian IT Consolidated revenues1 € 1,363 Mn services and solutions provider and about 1,650 employees1 Corporate Services and Group’s Direction Group’s Strategy, HR, Planning & Control, Finance, M&A, Legal, ICT & Operations, Logistic, Cloud services through t
Slide 4: Business Model and Investment Case
Business Model and Investment Case Steady and sustainable growth Long Term Track Record Long term partnerships 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”): Cisco, Citrix, DellE
Slide 5: Continuous Growth Since 90s along side with IT Titans
Continuous Growth Since 90s along side with IT Titans Continuous and sustainable organic 1,462(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 2011-18 Revenu
Slide 6: Leadership in Italian VAD Market
Leadership in Italian VAD Market CGI is leader in Italian VAD market, with a 43.2% market share in 2017*. Total 2017 VAD Market Share VAD revenues and other income of Eu 1,153.9 Mn as of April 30, 2018 (+4.7% YoY, +8% CAGR 2011-2018) 50% 43.2% 40% Customer base of about 12,000 Software Houses, Syste
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 R&D focusing on most Software and System 289.4 Mn as of April 30, 2018 Italian SME & Enterprise solutions
Slide 8: Human Capital and Competitive Advantages
Human Capital and Competitive Advantages Human Capital Training and certification Proprietary Datacenter for cloud Successful and Long Term of about 1,650 qualified people with programs solutions and services. relationships professional skills in main innovative in partnership with Vendors to Datace
Slide 9: Q1 2019 vs Historical Track Record 2011-2018
Q1 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 349.6 Mn Eu 15.7 Mn Eu 6.4 Mn Eu 7.0 Mn JUL 31 (+10.3% YoY) (+19.6% YoY) (+16.7% YoY) (+19.6% YoY) 2018 (Q1 19) Ebitda Ma
Slide 10: Agenda: ICT Market Trend
Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of July 31st, 2018 Historical Financials Results (Track Record 2011-2019E) Governance and Investors Information Annexes (Consolidated Financial Statements) 10
Slide 11: Italian IT Market 2013-2019E
Italian IT Market 2013-2019E Italian IT market trends IT Italian market (2016-2019E) in Eu Mn CAGR 2015-2019E 3.1% 19,830 Italian IT market grew by 1.6% in 2016 and by 1.9% 20000 19,019 19,273 18,616 18,817 +2.9% in 2017, after an average 3% annual decline trend 18,188 18,470 +2.4% -4.1% +1.9% 18000
Slide 12: Global ICT market trend 2015-2021E
Global ICT market trend 2015-2021E Global IT market (2015-2021) in USD Bn Global IT market trends Cloud Computing spending expected to grow at over 6 4500 CAGR 2016-2021E 3.3% times the average rate of IT from 2015 through 2020 4,003 (source IDC, 2017) 4000 3,889 3,784 +3.0% 3,683 +2.8% 3,527 +2.7%
Slide 13: Focus on IT market trends
Focus on IT market trends Global IT Technology Evolution 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 solutions, an
Slide 14: Agenda: Group Results
Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of July 31st, 2018 Historical Financials Results (Track Record 2011-2019E) Governance and Investors Information Annexes (Consolidated Financial Statements) 14
Slide 15: Group Results as of July 31, 2018 (Q1 2019 vs Q1 2018)
Group Results as of July 31, 2018 (Q1 2019 vs Q1 2018) Group Revenues Eu Mn (*) EBITDA Eu Mn Net profit Eu Mn (**) Revenues by Segment (*) 1.1% 1.0% +10.3% +19.6% +20.4% 18.9% 21.9% Jul 31 Jul 31 2017 2018 15.7 7.2 77.1% 400 15 7 80.0% 349.6 13.1 6.0 2.1 316.9 5.9 6 EBITDA by Segment 82.2 4.1 7.13%
Slide 16: Group Results as of July 31, 2018 by segment
Group Results as of July 31, 2018 by segment (Q1 2019 vs Q1 2018) 3-Months (Q1) as of July 31, 2018 YoY Annual Results as of April 30, 2018 YoY Segment Informations Three – month period as of July 31, 2018 Three – month period as of July 31, 2017 Segment Informations Annual Results as of April 30, 2
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% 10.5% 10.9%10.2% 10.7% 11,1% 12% 11.2% 10.0% 10.3% 10% 9.4% 9.2% 7.4% 7.3% NWC/Revenues 8% 6.3% 6.2% 5.5% FY2014 - FY2018 6% 4% Quarte
Slide 18: Group Financial Results as of July 31, 2018
Group Financial Results as of July 31, 2018 (Q1 2019 vs Q1 2018) Group Net Financial Position (NFP) (Eu Mn) Group Shareholders Equity (Eu Mn)* +83.6% vs Q1 18 +6.1% vs Q1 18 15 12.7 250 240.4(E) Q1 19 Consolidated NFP improved by Eu 5.5 Mn (up 6.6 83.6%) from Eu 6.6 Mn (net 5 217.1 216.0 1.1 debt) t
Slide 19: Group External Growth
Group External Growth Group 2015-2018 Main Acquisitions External Growth to support Group’s strategy aiming at developing Target Overview Investment rationale Financial Highlights (april 2018A) service solutions and valued-added areas of business Accadis: Long-term Commitment of Accadis (2016) 1st It
Slide 20: Agenda: Historical Financial Results
Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of July 31st, 2018 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 1,462(E) 75 70.3(E) 1450 1,363 1,271 63.1 1,230 65 1250 57.9 4.8% 1,060 +7.3% 54.0 4.6% +11.3% 55 49.5* 51.6 4.6% 1050 948* YoY 4.4% YoY 832 44.2 4.9% 812 45 41.3 5.2% 850 747 EBITDA (Eu Revenues ** 34.4 5.3% Mn, % on 35 (Eu Mn) 650 5.1% revenues)
Slide 22: Adjusted Group Annual Economic Results 2011-2019E
Adjusted1 Group Annual Economic Results 2011-2019E 51.3(E) 50 44.8 46.3 30.4(E) 45 43.7 30 41.4 26.9 39.9* 40 +10.8% 24.0 25.0 2.1% +13.3% 35.0 3.5% 35 34.7 3.5% 3.4% YoY Net profit 25 21.8 YoY 3.6% 19.9 20.7* 3.9% attributable 2.0% 2.0% EBIT 30 25.3 3.8% 20 to the 16.8 1.9% (Eu Mn, % 25 4.2% 2.1% o
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 70 to Eu 54.7 Mn as of April 240.4(E) 30, 2018 (up Eu 2.7 Mn 53.5 compared to April 30, 216.0 50 2017) improved by 5% YoY 205 199.0 net of gro
Slide 24: Agenda: Governance and Investors Information
Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of July 31st, 2018 Historical Financials Results (Track Record 2011-2019E) Governance and Investors Information Annexes (Consolidated Financial Statements) 24
Slide 25: Key Investor Information
Key Investor Information Q1 Sesa (Euro) 2015 2016 2017 2018 2019 SeSa Stock Trend Index MTA - MTA - MTA - MTA - Stock Market (1) MTA 180% Star Star Star Star 151.2% Stock market price 16.34 15.40 23.60 26.30 30.20 160% 150.4% 140% DPS - Dividend per share (*) 0.45 0.48 0.56 0.60 0.60 120% Total Divi
Slide 26: Sesa Shareholders & Management Team
Sesa Shareholders & Management Team Franklin Treasury Templeton Shares SeSa shares are listed in the MTA Italian Stock Exchange 4.860% 0.069% since October 23, 2013 (transition on MTA STAR Segment on February 16, 2015) Total 15,494,590 outstanding ordinary shares Main Shareholders (according to Cons
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. Half 1 complia
Slide 28: Annexes - Consolidated Financial Statements
Annexes - Consolidated Financial Statements Group Overview ICT Market Trend Group Results as of July 31st, 2018 Historical Financials Results (Track Record 2011-2019E) Governance and Investors Information Annexes (Consolidated Financial Statements) 28
Slide 29: Income Statement as of July 31st, 2018 as reported
Income Statement as of July 31st, 2018 as reported Change Reclassified Income Statement (Euro/thousand) 07/31/2018 % 07/31/2017 % 2019/18 Revenues 347,715 314,685 10.5% Other income 1,927 2,184 -11.8% Total Revenues and Other Income 349,642 100.0% 316,869 100.0% 10.3% Purchase of goods 279,880 80.0%
Slide 30: Balance Sheet as of July 31st, 2018 as reported
Balance Sheet as of July 31st, 2018 as reported Change Reclassified Balance Sheet (Euro/thousand) 07/31/2018 07/31/2017 2019/18 Intangible assets 43,727 23,281 20,446 Property, plant and equipment 56,089 51,198 4,891 Investments valued at equity 8,506 8,960 (454) Other non-current receivables and de
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 % 2018/17 Revenues 1,350,900 1,260,275 7.2% Other income 12,135 11,194 8.4% Total Revenues and Other Income 1,363,035 100.0% 1,271,469 100.0% 7.2% Purchase of goods 1,114,
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