Slide 1: Q3 2022 Results Presentation
© esprinet’ enabling your tech experience Q3 2022 Results Presentation November 10, 2022
Slide 2: Forward-looking statements disclaimer
This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. Forward-looking statements may include, in particular, statements about future events, futu
Slide 3: Q3 2022 Performance
@ esprinet’ enabling your tech experience Q3 2022 Performance
Slide 4: 9M 2022 highlights: sales, profit, cash cycle, net financial position
+0% compared to 9M 2021 -6% compared to 9M 2021 12.9% in H1 2022 ▪ Sales by quarter ▪ Gross profit: 167.9 M€, 5.22% on ▪ Cash Cycle closes at 21 days, +8 days • Q1 2022: 1,139.4 M€ sales, compared to 5.16% of 9M 2021. compared to 9M 2021 and +4 days (-2% vs Q1 2021) compared to H1 2022. • Q2 2022: 1
Slide 5: 9M 2022 sales and EBITDA by geography and pillar
1,895.6 1,994.8 -99.2 -5% 16.9 17.3 -0.4 -2% 0.89% 0.87% 0.0% 693.0 652.4 40.6 6% 16.4 11.9 4.5 38% 2.37% 1.82% 0.5% 576.5 504.7 71.8 14% 17.6 16.8 0.8 5% 3.05% 3.33% -0.3% 10.4 8.3 2.1 25% 4.7 5.5 -0.8 -15% 45.19% 66.27% -21.1% 42.2 50.6 -8.4 -17% -1.3 6.4 -7.7 -120% -3.08% 12.65% -15.7% 3,217.7 3,
Slide 6: EBITDA Adj. reduction in 9M 2022 explained
The EBITDA Adj. reduction of Euro 3.5 million in 9M 2022 against the previous year is mostly due to a Euro 7.7 million reduction in the Own Brands pillar. 1. The impact of the Own Brands is essentially concentrated in the second quarter of this year: during Q2 2021, the pillar benefited from some pr
Slide 7: 9M 2022 sales by geography and pillar vs market
Esprinet Market(*) Esprinet Market(*) Esprinet Market(*) Retailers & 1,911 M€ Italy -4% 1% 1,896 M€ Screens -5% -7% 1,276 M€ -10% -7% E-tailers 1,189 M€ Spain 6% 4% 693 M€ Devices 6% 4% 2,141 M€ IT Resellers 11% 9% Solutions 75 M€ Portugal 6% 11% 587 M€ & Services 14% 14% (**) 42 M€ Own Brands -17%
Slide 8: Q3 2022 sales by geography and pillar vs market
Esprinet Market(*) Esprinet Market(*) Esprinet Market(*) Retailers & 613 M€ Italy 5% 11% 607 M€ Screens 2% 4% 431 M€ -8% 3% E-tailers 382 M€ Spain 9% 9% 222 M€ Devices 7% 5% 686 M€ IT Resellers 23% 16% Solutions 26 M€ Portugal -13% 16% 196 M€ & Services 23% 23% (**) 14 M€ Own Brands 15% 18 M€ Other
Slide 9: Q3 and 9M 2022 income statement
• Thanks to the higher weight of the product lines and (M/€) Q3 2022 Q3 2021 Var. % 9M 2022 9M 2021 Var. % customer segments with higher margins as well as to the resilience and growth of gross profit margins on most of the product lines, the total gross profit margin grew, Sales from contracts with
Slide 10: Net invested capital and net financial position
(M/€) 30/09/2022 30/09/2021 30/06/2022 • Net Invested Capital as of September 30, 2022 stands at 767.3 M€ and is covered by: • Shareholders’ equity, including non-controlling interests for 384.9 M€ Fixed Assets 141.5 140.6 140.2 (371.7 M€ as of September 30, 2021); Operating Net Working Capital 540.
Slide 11: Working capital and cash cycle days
90 40 Working capital worsening (+4 days) compared to the previous quarter due 34 to: 80 35 30 • increase in inventory days (+5 days); 70 29 • only partially offset by the increase in 27 28 30 payment terms to suppliers (+3 days). 27 26 60 Thanks also to the aggressive 23 25 promotional actions impl
Slide 12: Inventory days, DSO, DPO and cash cycle
90 50 44 80 42 40 39 40 33 70 33 31 30 29 29 60 25 20 50 15 16 16 85 14 40 82 81 77 76 10 73 68 70 68 69 65 66 30 61 59 60 61 57 54 52 56 58 55 2 57 52 51 52 50 51 51 0 -2 48 48 43 45 45 44 20 41 40 40 4041 40 39 41 39 38 37 39 36 35 34 34 36 3432 32 -8 27 -11 24 -10 -10 10 0 -20 2018 Q1 2018 Q2 201
Slide 13: ROCE trend
30% 25% 25.1% 23.2% 20.5% 20% 19.7% 17.6% 15.7% 15.8% 16.2% 15.2% 15% 14.0% 12.9% 11.4% 14.4% 13.1% 10.9% 11.0% 10% 9.4% 9.8% 11.6% 8.4% 8.2% 8.1% 8.6% 8.6% 10.2% 9.1% 7.0% 8.3% 7.9% 8.0% 7.6% 7.1% 6.7% 7.1% 05% 00% 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020
Slide 14: Bludis acquisition
© esprinet
Slide 15: Bludis acquisition in software distribution
One more important step in cementing Group’s position as a reference player in the distribution of Software • Bludis S.r.l. is the company established under the Italian law where in • In line with the Strategic Plan 2022-2024 the acquisition contributes July 2022 the company SPIN S.r.l. transferred
Slide 16: Outlook
@ esprinet’ enabling your tech experience
Slide 17: Supply chain, inflation and exchange rate context
Vast majority of the supply chain problems that impacted the industry in The surge in inflation in advanced economies and in particular the high the last 12 months have been solved: the industry is still facing an energy costs continue to impact the Industry: the list prices of products oversupply o
Slide 18: Start of Q4 trading and trends
In this beginning of Q4 the Group is recording revenues and total orders The trend in business demand is confirmed quarter after quarter to higher than budget forecasts and than the same period of 2021. accelerate in the countries of southern Europe and the Group, in line with the strategy of focusi
Slide 19: Outlook and EBITDA Adj. target
• In light of the results of the third quarter just ended and the positive signs that we are also recording in this start of the fourth quarter • albeit with the necessary caution in a phase in which the response of private consumption and corporate spending to a possible recession remains uncertain
Slide 20: Q&A Session
@ esprinet’ enabling your tech experience Q&A Session
Slide 21: Upcoming investor events
Madrid MidCap Conference November 17, 2022 organized by Intermonte Investor Day November 23, 2022 organized by TP Icap Midcap Partners Mid & Small in Milan November 29, 2022 organized by Virgilio IR 21
Slide 22: Thank you
Thank you GRAZIE + GRACIAS - OBRIGADO« DANKE « MERCI « ZA} « iff! « RR © esprinet’ enabling your tech experience
Slide 23: Annex
@ esprinet’ enabling your tech experience
Slide 24: The Company & The Industry
@ esprinet’ enabling your tech experience The Company & The Industry
Slide 25: +20 years in business, 3 geographies: Italy, Spain & Portugal
Esprinet Group is an enabler of the tech ecosystem with a profound calling to social and environmental sustainability. To promote tech democracy and guide people and firms towards digitalisation, Esprinet offers European clients its expertise in advisory and cybersecurity, as well as a selection of
Slide 26: Distributor sales and market share 2021
SALES 2021 COMPANY SHARE (M/€) Esprinet 4,691 25.2% • • • Tech Data 3,510 18.8% • • • Ingram Micro 2,470 13.2% • • • Computer Gross 1,780 9.5% • Arrow ECS 1,018 5.5% • • Attiva 653 3.5% • MCR 590 3.2% • Datamatic 490 2.6% • Exclusive Networks 263 1.4% • CPCDI 252 1.4% • Inforpor 217 1.2% • Depau 208
Slide 27: Total market and distributor channels
Total Market (A+B)(*) 10.4 6.0 17.2 33.6 12.5 46.1 A) Direct Channel & 1st Tier 1.6 2.3 11.9 15.9 11.5 27.4 B) 2nd Tier Distris (a+b+c) 8.8 3.6 5.3 17.7 1.0 18.6 2021 Weight Of Distris 84% 61% 31% 53% 8% 40% On Market(°) 2020Weight Of Distris On Market 98% 65% 31% 56% 8% 43% a) Professional Reseller
Slide 28: ICT distributor share of product sales
20,0 60% 56% 18,0 53% 52% 50% 16,0 48% 50% 45% 14,0 40% 12,0 10,0 30% 8,0 20% 6,0 4,0 10% 2,0 0,0 0% 2017A 2018A 2019A 2020A 2021A 2022E Direct sales of ICT products (ex-white goods) ICT distributor sales Share in ICT products (ex-white goods) IDC figures for IT Clients - Advanced Solutions & Smartp
Slide 29: Market leader with solid financial structure
The pandemic has brought ICT to the forefront as a critical Esprinet is the undisputed market leader with a solid financial enabler of everyday life and business continuity fueled by structure continuous innovation We are already witnessing the acceleration of digital processes Working capital disci
Slide 30: EBITDA Adj. and margin history
100 2,00% 90 1,80% 80 1,60% 70 1,40% 60 1,20% 50 1,00% 40 0,80% 30 0,60% 20 0,40% 10 0,20% 0 0,00% EBITDA Adj. EBITDA Adj. % (*) CAGR Total market 4% 30
Slide 31: Business pillars and product categories
Categories: Categories: • Printing • Renting fees • Monitors • Logistic services • Components • Marketing • Accessories services • White goods • Maintenance • Gaming • Digital solutions • Other CE products Categories: Categories: • Servers Brands: • PCs • Storage • Nilox • Tablets • Networking • Cel
Slide 32: Strategy & Long Term Targets
Strategy & Long Term Targets 32
Slide 33: Structural change of the business model to full service provider
AFTER 20 YEARS FROM THE BIRTH OF ESPRINET, THE GROUP LAUNCHES A STRUCTURAL CHANGE OF THE BUSINESS MODEL WITH THE AIM IN THE NEXT DECADE OF ADDING TO THE DISTRIBUTION BUSINESS A NEW «FULL SERVICE PROVIDER» MODEL WITH SIGNIFICANTLY HIGHER ADDED VALUE THAN THE TRADITIONAL ONE 33
Slide 34: 2024 target: Adj. EBITDA above 125 M€
• A business model revolution moving into a much higher margin space paving the way, giving the intrinsic structure of the rental program, to CAGR 15% future massive profitability improvements • Target 2024: increase by roughly 50% our Adj. EBITDA to more than 125 M€ (CAGR 15%) • Capital employed op
Slide 35: Capital employed optimization and profitability focus
BEING CAPITAL EMPLOYED OPTIMIZATION A PREREQUISITE, THE FOCUS IS ON PROFITABILITY IMPROVEMENT • Customer satisfaction: more differentiation and margins • Leveraging a global cross-industry macro trend • Product mix: focus on Advanced Solutions and own brands • Getting a bigger portion of the value i
Slide 36: Organic growth, profitability improvement and M&A
ORGANIC GROWTH PROFITABILITY GROWTH TROUGH M&A Growth and innovation From volume to value add IMPROVEMENT Expansion in other areas of delivered through a distribution Customer satisfaction, Western Europe in the SUSTAINABLE AND Advanced Solutions and Own Advanced Solutions and in INTEGRATED APPROACH
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Slide 38: Focus on ESG
38 Focus on ESG @ esprinet’ enabling your tech experience | | | | BILLION LEADER IN New ESG TARGET soeevinw | 4 . 7 euro Sales | SOUTHERN EUROPE | ESG CENTRIC STRATEGY in the Remuneration Policy | (+4,4% vs 2020) | (Italy, Spain and Portugal) | | | | ENVIRONMENTAL | CLIMATE | PACKAGING LEEDPLATINUMC
Slide 39: Governance
@ esprinet’ enabling your tech experience Governance
Slide 40: Our Vision, Mission & Values
Our Vision, Mission & Values Pe) esprinet enabling your tech experience OUR VISION OUR MISSION OUR VALUES a a BE THE KEY POINT OF hue MAKE URE ESSE CONTACT BETWEEN Ts ro) FOR PEOPLE AND FOR ORGANISATIONS MANUFACTURES, RESELLERS igi AND TECHNOLOGY USERS H Co) BRAVERY We want to create value for these
Slide 41: Board committees
(* ) Giovanni Testa, Chief Operating Officer of Esprinet, is the fourth member of the committee 41
Slide 42: Management
Management @ esprinet’ enabling your tech experience GROUP MANAGEMENT GENERAL MANAGEMENT Pietro Agliand Cesare Pedrazzini Nunzio Punzi Ettore Sorace Chier Administration @ Risk Officer Chief Information Officer Group Supply Chain Director HR Director LOCAL MANAGEMENT Alessandro Cattani Giovanni Test
Slide 43: Code of Ethics and Organisation Model
The Code of Ethics applies to all The Esprinet Group wishes to This document, entitled “Organisation and Management Model activities carried out by or in the establish trade relations with its pursuant to “Legislative Decree 231/2001” (hereinafter called “the name and on the behalf of Esprinet vendo
Slide 44: STAR segment requirements
• High transparency, disclosure requirements and liquidity (free float of minimum 35%) Esprinet Spa listed in the STAR • Corporate Governance in line with international standards Segment* voluntarily adhere to and comply with strict requirements *The market segment of Borsa Italiana’s equity market
Slide 45: Shareholders and stock information
DECLARANT & DIRECT SHAREHOLDER % ON ORDINARY CAPITAL % ON VOTING CAPITAL ANALYST Giuseppe Calì 11.37% 11.37% COVERAGE Axopa S.r.l. (Maurizio Rota and Alessandro Cattani) 9.89% 9.89% Luigi Monti 5.44% 5.44% Marco Monti 5.44% 5.44% Stefano Monti 5.44% 5.44% Mondrian Investment Partners Limited 5.05% 5
Slide 46: Thank you
Thank you GRAZIE + GRACIAS - OBRIGADO« DANKE « MERCI « ZA} « iff! « RR © esprinet’ enabling your tech experience