Slide 1: Group Presentation
Group Presentation MID & SMALL VIRTUAL CONFERENCE April 1-2, 2020
Slide 2: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview Group Results as of January 31, 2020 (9M) IT Market Trend and COVID crisis 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 about 2,600 employees2 Key player driving digital transformation to the Italian economy Technology, digital services and business applications for SME, Ente
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: Continuous and Sustainable Growth Since 90s
Continuous and Sustainable Growth Since 90s 1,805(E) Continuous growth over-performing the reference IT Italian market 1,551 Digital partner of main IT Global Vendors (IT Titans1)* 1,363 Group resilience to market crisis 1,271 1,230 Resilience to market crisis over 1,060 the last 30 years overperfor
Slide 6: Leadership in Italian VAD Market
Leadership in Italian VAD Market Leadership in Italian VAD market, with 46.5%* market share. Total VAD Revenues and Other 2019 Italian total VAD market share Income of Eu 1,301 Mn as of April 30, 2019 (CAGR 2011-2019 +8.7%) 50% 46.5%* 40% Customer base of over 13,000 BPs (Software Houses, System Int
Slide 7: Digital and Innovation Partner for Enterprises and SMEs
Digital and Innovation Partner for Enterprises and SMEs VAR Group is a leading Italian SSI revenues reached Eu Innovation partner for Italian Hybrid Cloud services to Offering of Business and About 30 M&A over the last 3 Software and System 342.8 Mn as of April 30, 2019 SME and Enterprises with over
Slide 8: Business Services & BPO for Large Account sectors
Business Services & BPO for Large Account sectors Group consolidation since March 2020 Development of a complementary sector with high potential synergies and value generation Primary customers including some of the main Italian Banking Groups Approximately 260 highly specialized resources involved
Slide 9: Human Capital and Social Responsibility
Human Capital and Social Responsibility 2,600(E) Human capital development as strategic driver of Group sustainable long-term growth 1,875 1,642 Recruitment Programs Training Programs Welfare Programs Social Responsibility HR CAGR 2011-19 +11.8% Human Capital of over Training and education Corporate
Slide 10: Agenda: Group Results as of January 31, 2020 (9M)
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview Group Results as of January 31, 2020 (9M) IT Market Trend and COVID crisis 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 10
Slide 11: 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 (+17.3% Y/Y) (+30.3% Y/Y) (+29.5% Y/Y) (+30.7% Y/Y) Eu 1.3 Mn (net cash) (May 19-Jan G
Slide 12: 9M 2020 Group Results by Segment
9M 2020 Group Results by Segment Group Revenues Eu Mn (*) EBITDA1 Eu Mn Net profit Eu Mn (**) Revenues by Segment (*) 1.1% 1.0% +17.3% +30.3% +30.0% 17.1% 21.8% 9M 2020 9M 2020 9M 2020 1,344.8 32.5 Jan 31 Jan 31 1400 70 69.5 2017 2020 1300 65 9.0 1,146.3 308.5 30 81.8% 77.2% 1200 60 2.9% +22% 27.3 1
Slide 13: 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 14: External Growth to boost Group Development
External Growth to boost Group Development External Growth to support Group Group 2016-2020 M&A - around Eu 60 Mn over last 3 Year focused on valued added areas of IT strategy and boost Group valued-added Bus Target Overview Investment rationale Yearly Financial Contribution1 Long-term commitment of
Slide 15: Agenda: IT Market Trend and COVID crisis
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview Group Results as of January 31, 2020 (9M) IT Market Trend and COVID crisis 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 15
Slide 16: IT Italian Market trend 2015-2023
IT Italian Market trend 2015-2023 IT Italian market (2015-23E) in Eu Mn CAGR 2015-2023E +2.31% 20,564 21,202 21,827 20,007* +2.8% +3.1% +2.9% 19,766 +1.2%* 18,817 19,270 20000 18,470 +2.4% +2.6% • Positive Trend of IT Italian market since 2016 Year (in 18,188 +1.5% +1.9% 2018-2019 Years highest grow
Slide 17: Italian IT market trend, outlook and opportunities
Italian IT market trend, outlook and opportunities Current scenario - Uncertainty about the Covid 19 effects on Italian and Global economy - Following the outbreak of Covid 19 all enterprises and organizations require greater support in digitalization and remote control - Acceleration of IT demand i
Slide 18: Agenda: 2011-2020E Financial Results
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview Group Results as of January 31, 2020 (9M) IT Market Trend and COVID crisis 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 18
Slide 19: Group Annual Economic Results 2011-2020E as reported
Group Annual Economic Results 2011-2020E as reported 1,805(E) 94.1(E) 1,551 +16.4% +26.6% 74.3 1,363 Y/Y Y/Y 1,230 1,271 57.9 63.1 1,060 54.0 948 2020 EBITDA (Eu 49.5 51.6 2020 Revenues ** 832 Consensus 44.2 Consensus 747 812 Mn, % on 41.3 (Eu Mn) disclosed 34.4 disclosed before revenues) before COV
Slide 20: Group Annual Financial Results 2011-2020E
Group Annual Financial Results 2011-2020E Consolidated Shareholders Equity* (Eu Mn) Group Net Financial Position (Eu Mn) Net Financial Position (net liquidity) equal to Eu 41.8 2020 Consensus Mn as of April 30, 2019 disclosed before COVID 267.0(E) 53.5 2020 Consensus disclosed 19 outbreak before COV
Slide 21: Agenda: Governance and Investors Information
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview Group Results as of January 31, 2020 (9M) IT Market Trend and COVID crisis 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 21
Slide 22: 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) 350% 331.2% Star Star Star Star Star Star Stock market price 16.34 15.40 23.60 26.30 27.75 39.0 300% DPS - Dividend per share
Slide 23: Sesa Shareholders & Management Team
Sesa Shareholders & Management Team Anima SGR S.p.A. Treasury Shares 4.998% Sesa shares are listed in the MTA Italian Stock Exchange since October 23, 0.568% 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 24: 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 25: Agenda: Annexes Financial Statements
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview Group Results as of January 31, 2020 (9M) IT Market Trend and COVID crisis 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 25
Slide 26: Income Statement as of January 31, 2020 as reported
Income Statement as of January 31, 2020 as reported Reclassified Income Statement (Euro/thousand) 9M Jan 31 2020 % 9M Jan 31 2019 % 9M Jan 31 2018 % Change 2020/19 Revenues 1,336,278 1,139,359 984,419 17.3% Other income 8,494 6,914 8,150 22.9% Total Revenues and Other Income 1,344,772 100.0% 1,146,2
Slide 27: Balance Sheet as of January 31, 2020 as reported
Balance Sheet as of January 31, 2020 as reported Reclassified Balance Sheet (Euro/thousand) 9M Jan 31 2020 9M Jan 31 2019 9M Jan 31 2018 Change 2020/19 Intangible assets 66,579 44,630 37,276 21,949 Property, plant and equipment 73,697 56,223 54,104 17,474 Investments valued at equity 11,673 9,325 9,
Slide 28: Income Statement as of April 30, 2019 as reported
Income Statement as of April 30, 2019 as reported Reclassified Income Statement (Euro/thousand) April 30 2019 % April 30 2018 % April 30 2017 % Change 2019/18 Revenues 1,539,854 1,350,900 1,260,275 14.0% Other income 10,751 12,135 11,194 -11.4% Total Revenues and Other Income 1,550,605 100.0% 1,363,
Slide 29: Balance Sheet as of April 30, 2019 as reported
Balance Sheet as of April 30, 2019 as reported Reclassified Balance Sheet (Euro/thousand) April 30 2019 April 30 2018 April 30 2017 Change 2019/18 Intangible assets 54,001 39,083 21,848 14,918 Property, plant and equipment 57,771 55,221 49,736 2,550 Investments valued at equity 10,030 9,179 8,835 85
Slide 30: 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