Sesa S.p.a. · MIL:SES
Sesa — Q1 FY2024 Earnings Presentation
29 slides from Sesa's earnings presentation, Sep 14, 2023
Slide 1: Group Presentation and First Quarter Results as of July 31, 2023
Group Presentation and First Quarter Results as of July 31, 2023 September 14, 2023
Slide 2: Agenda
Agenda Alessandro Fabbroni → Business model and strategic achievements Chief Executive Officer → Group Results as of July 31, 2023 and FY 2024E Guidance → Group Structure and Business Sectors VAD, SSI, BS Elisa Gironi Corporate Governance, Integration and M&A → Annexes Financial Statements Director
Slide 3: Business Model and Strategic Achievements
Business Model and Strategic Achievements Leading digital Leading digital partner for the business segment: technology, digital services and business applications partner for About 40,000 customers (o/w 4,000 abroad) and over Eu 2.9 Bn revenues in FY as of April 30, 2023 Enterprises and Organiza
Slide 4: Technology innovation and digital services for the Business segment
Technology innovation and digital services for the Business segment Italian leading player in technological innovation and digital services with 4,720 employees and Eu 2.908 Bn revenues in the FY 2023 Outstanding Growth in the last 4Y period 2020-23: CAGR revenues +17.0%, EBITDA +29.6%, EAT Adjusted
Slide 5: Human capital and skills development programs
Human capital and skills development programs 5,700 CAGR 2012-2023 ∼ 15.7% (+13.3% in FY 2023) 3,250 Hiring programs M&As contribution 2,908 5,300 • 166 hires in Jan-Dec 2018 • 2015-17: 7 M&As, 355 HRs 2,390 5,200 Revenues Eu Mn in the FY as of April 30 • 245 hires in Jan-Dec 2019 (+48% Y/Y) • 2018-
Slide 6: Bolt-on industrial M&As to accelerate long-term organic growth
Bolt-on industrial M&As to accelerate long-term organic growth To attract and integrate skills and competences, enhancing long-term organic growth: • Over 60 M&As starting from 2015 with additional 2,400 HRs and over Eu 600 Mn annual revenues at acquisition time (Eu 1 Bn in the FY23) • 18 M&As in 20
Slide 7: Long-term commitment of key people and value generation
Long-term commitment of key people and value generation Key people equity commitment and sustainable growth Group Long-term track record achievements Sesa Group equity partners’ focus on long term Group REVENUES FY11 Eu 747 Mn EAT Adj FY11 Eu 12 Mn REVENUES FY23 Eu 2,908 Mn EAT Adj FY23 Eu 100 Mn de
Slide 8: Market Trends confirm digitalization path
Market Trends confirm digitalization path ICT Worldwide Market, source Gartner September 2023 Worldwide ICT market Bn Dollars 2018 2019 2020 2021 2022 2023E 2024E Data Centre Systems 210 203 208 190 221 218 236 Enterprise Software 419 457 507 732 811 923 1,053 After the acceleration of 2021 Year (
Slide 9: Sustainability programs improvement
Sustainability programs improvement Sustainable growth in corporate bylaws as Carbon Neutrality programs in line with EU Agenda strategic target of Sesa BoD (sibce Jan 2021) Environmental performance in FY 2023: SUSTAINABILITY emissions per capita 1.22 tCO2 (10.3% reduction Y/Y); Sesa Group
Slide 10: Agenda
Agenda Alessandro Fabbroni → Business model and strategic achievements Chief Executive Officer → Group Results as of July 31, 2023 and FY 2024E Guidance → Group Structure and Business Sectors VAD, SSI, BS Elisa Gironi Corporate Governance, Integration and M&A → Annexes Financial Statements Director
Slide 11: Steady growth in Q1 2024
Steady growth in Q1 2024 Revenues Ebitda Group EAT Adj1 Eu 55.8 Mn Eu 26.5 Mn NFP2 (+17.2% Y/Y) (+11.1% Y/Y) Eu 208.5 Mn (net cash) Q1 2024 Eu 776.4 Mn vs (May - Jul 23) (+15.9% Y/Y) Eu 208.3 Mn (net cash) Ebitda Margin 7.2% EAT Adj margin 3.4% (vs 7.1% Q1 23) (vs 3.6% Q1 23) as of July 31, 2022 Eu
Slide 12: Revenues, EBITDA and EAT improvement by segment (Q1 2018-24)
Revenues, EBITDA and EAT improvement by segment (Q1 2018-24) Revenues Eu Mn EBITDA Eu Mn Group EAT Adjusted2 Eu Mn Revenues1 by Segment 189.9 153.2 129.5 22.2% 23.7% 8.6% Software and 95.0 106.3 +20.0% 23.2 82.2 +18.3% 19.1 System Integration1 +21.8% 12.5 16.7 6.3 6.7 8.2 +11.9% 8.1 12.5% 12.6% 4.1
Slide 13: FY 2018-2023 Revenues, EBITDA and EAT by segment
FY 2018-2023 Revenues, EBITDA and EAT by segment Revenues Eu Mn EBITDA Eu Mn Group EAT Adjusted2 Eu Mn Revenues1 by Segment 703 572 19.8% 1.1% 23.1% 3.4% 482 Software and 396 +22.8% 84.9 343 +18.7% 67.9 System Integration1 289 +21.7% 55.5 12.1% 24.4 31.2 +15.4% 37.8 11.9% 20.0 Apr 30 Apr 30 +18.7% 2
Slide 14: Q1 2024 Financial Results and FY 2024 Outlook
Q1 2024 Financial Results and FY 2024 Outlook Results FY 2022 - FY 2023 Results Q1 2024 Group CAGR FY 2024 Guidance FY FY Q1 Q1 Quarter 12Year 4Year FY 2023 FY 2024 Eu million 2022 2023 2023 2024 Growth CAGR CAGR FY 20243 Y/Y Y/Y 12M 12M 3M 3M Y/Y 2012-23 2020-23 Revenues 2,389.8 2,907.6 +21.7% 669.
Slide 15: Cash Flow generation and NWC management FY 2014-24 by Quarter
Cash Flow generation and NWC management FY 2014-24 by Quarter NWC/Revenues NWC and NWC/Revenues FY 2014 – FY 2024 Quarterly1 • Growing Efficiency in NWC management in the 2014-2023 period NWC Data in Euro Million 155.9 160.7 149.8 150.1 146.1 135.6 138.5 142.3 133.8 127.3 130.0 128.2 132.6 118.5 120
Slide 16: Group sustainable long-term growth
Group sustainable long-term growth Sales and other Revenues (Eu Mn) EBITDA (Eu Mn) EBIT Adjusted2 (Eu Mn) 3,200-3,3001 185-1931 240-2501 2,908 2,390 209.4 160.9 CAGR 2012-23 +12.0% +10- CAGR 2012-23 +16.2% CAGR 2012-23 +16.6% 2,037 +22% 15% CAGR 2020-23 +17.0% Y/Y Y/Y CAGR 2020-23 +29.6% 167.7 +15-
Slide 17: Agenda
Agenda Alessandro Fabbroni → Business model and strategic achievements Chief Executive Officer → Group Results as of July 31, 2023 and FY 2024E Guidance → Group Structure and Business Sectors VAD, SSI, BS Elisa Gironi Corporate Governance, Integration and M&A → Annexes Financial Statements Director
Slide 18: SSI: Digital Partner for European SMEs and Enterprises
SSI: Digital Partner for European SMEs and Enterprises 703 Mn revenues, Ebitda margin ∼ 12% and 3,345 employees1 Revenues breakdown1 Customer & Data Customer base of around 15,000 Enterprises and SMEs of which over 2,500 abroad. Coverage of all Italian Business Science 2% Digital Experience Workspac
Slide 19: Business Services: Digital Transformation for Financial Services
Business Services: Digital Transformation for Financial Services 84 Mn revenues, Ebitda margin ∼ 13% and 570 employees1 Revenues breakdown1 Group Sector started on February 2020 and focused on digital transformation, business applications and BDX - Base digital platforms for Financial Services Indus
Slide 20: VAD: Digital partner of ICT ecosystems
VAD: Digital partner of ICT ecosystems 2.24 Bn revenues, Ebitda margin ∼ 5% and 655 employees1 VAD Italian market share2 Revenues breakdown1 Full offering of value-added technology (enterprise software, networking, data center, green, cloud, security) and consulting, marketing and training services
Slide 21: Agenda
Agenda Alessandro Fabbroni → Business model and strategic achievements Chief Executive Officer → Group Results as of July 31, 2023 and FY 2024E Guidance Elisa Gironi → Group Structure and Business Sectors VAD, SSI, BS Corporate Governance, Integration and M&A Director → Annexes Financial Statements
Slide 22: Group Q1 Results as of July 31, 2023 by segment
Group Q1 Results as of July 31, 2023 by segment 3-Months as of July 31, 2023 (Q1) Y/Y Highlights Segment Information 3M period as of July 31, 2023 (Q1) 3M period as of July 31, 2022 (Q1) Q1 2024 results (May 2023 – July 2023) In Euro Mn VAD SSI BS Corporate Group VAD SSI BS Corporate Group Total Rev
Slide 23: Income Statement as of July 31, 2023 as reported
Income Statement as of July 31, 2023 as reported Change Q12024 Consolidated reclassified Income Statement (Euro/thousand) Q1 July 31, 2022 % Q1 July 31, 2023 % vs Q12023 Revenues 663,717 767,490 15.6% Other income 6,220 8,910 43.2% Total Revenues and Other Income 669,937 100.0% 776,400 100.0% 15.9%
Slide 24: Income Statement as of April 30, 2023 as reported
Income Statement as of April 30, 2023 as reported Change FY Consolidated reclassified Income Statement (Euro/thousand) April 30, 2021 % April 30, 2022 % April 30, 2023 % 2023/22 Revenues 2,022,454 2,362,603 2,867,700 21.4% Other income 14,769 27,220 39,939 46.7% Total Revenues and Other Income 2,037
Slide 25: Balance Sheet as of July 31, 2023 as reported
Balance Sheet as of July 31, 2023 as reported Consolidated Reclassified Balance Sheet (Euro/thousand) Q1 July 31, 2021 Q1 July 31, 2022 Q1 July 31, 2023 Change 2023/22 Intangible assets 171,452 259,701 417,079 157,378 Property, plant and equipment 99,712 116,306 129,794 13,488 Investments valued at
Slide 26: Balance Sheet as of April 30, 2023 as reported
Balance Sheet as of April 30, 2023 as reported Consolidated Reclassified Balance Sheet (Euro/thousand) April 30, 2021 April 30, 2022 April 30, 2023 Change 2023/22 Intangible assets 142,826 228,280 368,488 140,208 Property, plant and equipment 99,942 111,943 125,901 13,958 Investments valued at equit
Slide 27: Sesa Group M&As starting from 2015
Sesa Group M&As starting from 2015 SSI Sector Business Services Sector VAD Sector Company Revenues Company Revenues Company Revenues • APRA Eu 16 Mn • ACCADIS Eu 18 Mn • VAR BMS Eu 14 Mn • ICOS Eu 50 Mn • VAR PRIME Eu 5 Mn • PICO Eu 20 Mn • SAILING Eu 2.5 Mn New Group Sector since March 2020 2015-20
Slide 28: Thank you for your kind attention
THANK YOU FOR YOUR KIND ATTENTION For additional information Stakeholder Relations Department Francesco Billi, Group CFO f.billi@sesa.it Elisa Gironi, Corporate Governance, Integration and M&A Director e.gironi@sesa.it Jacopo Laschetti, Sustainability, Stakeholders and IR Manager j.laschetti@sesa.it
Slide 29: www.sesa.it
www.sesa.it This document has been prepared by Sesa SpA (“SeSa” or the “Company”) solely for this presentation and does not represent any investment research, recommendation, consulting or suggestion, concerning the Company or its shares or any other securities/financial instruments issued by the Co