Ideal Holdings S.a. · ATHEX:INTEK
Ideal — Investor Presentation (August 2024)
32 slides from Ideal's investor presentation, August 2024
Slide 1: IDEAL Holdings Corporate Presentation
August 2024 IDEAL Holdings Corporate Presentation
Slide 2: Disclaimer
Disclaimer The information contained in these slides and this presentation is being supplied to you by Ideal Holdings S.A. (the ‘Company’) solely for your information. For the purposes of this document, the presentation attached (the ‘Presentation’) shall mean and include the slides that follow, any
Slide 3: Executive Summary
Executive Summary Rare liquid way to play the Greek recovery story of medium-sized enterprises in the €70-300m EV range with risk diversification Proven management team with strong track record in delivering c.2.9x CoC since May 2021 Proprietary deal sourcing capabilities enabling swift use of proce
Slide 4: Table of Contents
Table of Contents 1 Introduction to IDEAL Holdings Investment Highlights a) Operating in a High Growth Macro Environment b) Strategically Positioned in Greek Financial Sponsors Ecosystem c) Team with Proven Ability to Source Proprietary Off-Market Acquisition 2 Opportunities d) Producing a Stellar T
Slide 5: Introduction to IDEAL Holdings
Introduction to IDEAL Holdings
Slide 6: Introducing IDEAL
Introducing IDEAL The Leading, Listed, Financial Sponsor in Greece A Domestic Leader in an Underserved Market Outperformance Across Indices Rebased to 100 330.0 Listed company on ATHEX with private equity philosophy, investing in mid-size high quality Greek companies IDEAL 268 280.0 FTSE ASE Mid Cap
Slide 7: Delivering Robust Returns Facilitated by Strong Financials
Introducing IDEAL Delivering Robust Returns Facilitated by Strong Financials Select Comparable Financials & Performance Measures(1) Revenues (In €m)(2) EBITDA (In €m) Net Income (In €m) N/A 192% 120% 17% N/A 206% 101% 9% €0.19 €0.39 €0.56 €0.58 450.1 27.8 26.7 58.7 384.3 53.9 15.5 26.8 174.7 5.9 59.
Slide 8: The History of IDEAL Holdings
The History of IDEAL Holdings IDH Before and After Pre-Equity Swap Current Structure May 2021 VSEF(1) VSEF Shareholders Shareholders ICT Specialized Retail Cash(2) 100% 100% • VSEF was an investment vehicle attica Department BYTE S.A. €115m managed by the team Stores • VSEF contributed Astir and 3ce
Slide 9: Investment Highlights
Investment Highlights IDEAL Holdings: The Leading, Listed, Financial Sponsor in Greece Operating in a High Growth Macro Environment Strategically Positioned A Proven Value Enhancing within the Greek Financial Approach to Investments Sponsors Ecosystem Team with Proven Ability Producing a Stellar Tra
Slide 10: Investment Highlights
Investment Highlights
Slide 11: Operating in a High Growth Macro Environment
Operating in a High Growth Macro Environment Real GDP Growth (%) Unemployment Rate (%) Inflation Rate(1) (%) 9.3% Greek 8% 14.8% 9.2% Macroeconomic 6.4% 12.4% Indicators Show 6% 6% 11.1% Rapid And 4% Sustained 2.9% 4.2% 7.1% Improvement 2% 6.2% 6.1% 1% 0.6% 2021 2022 2023 2021 2022 2023 2021 2022 20
Slide 12: Strategically Positioned within the Greek Financial Sponsors Ecosystem
Strategically Positioned within the Greek Financial Sponsors Ecosystem IDEAL Operates in an Underserved Segment of the Market Overview EV (€m) 500 500+ Global Fund 1 Global Fund 2 Medium-sized companies(1) contributed c.€12.4bn (c.6% of total) to the country’s GDP in 2022 Global Fund 3 Global Fund 4
Slide 13: Team with Proven Ability to Source Proprietary Off-Market Acquisition Opportunities
Team with Proven Ability to Source Proprietary Off- Market Acquisition Opportunities IDH Proven Investment Team with Longstanding Unique Tailor-Made Approach To Deal Sourcing Driven By: Extensive Relationships in the Greek ecosystem Lampros Papakonstantinou, Executive Chairman Credibility of the hig
Slide 14: Team with Proven Ability to Source Proprietary Off-Market Acquisition Opportunities (cont'd)
Team with Proven Ability to Source Proprietary Off- Market Acquisition Opportunities (cont’d) Companies’ Management Panos Vassiliadis, CEO of IT, IDEAL Holdings & Adacom (Executive) Spyros Vyzantios, CEO of BYTE • General Manager of ADACOM in 2003 and appointed CEO in 2010 • With more than 40 years
Slide 15: Producing a Stellar Track Record
Producing a Stellar Track Record Extensive Investment Experience… … with Thoughtful & Flexible Strategy Towards Exits… Transparent and Well-Defined Proprietary Pipeline with Prudent 1 Conservative approach to group companies’ balance sheets Investment Strategy Target Selection Divestment plan prepar
Slide 16: A Proven Value Enhancing Approach to Investments
A Proven Value Enhancing Approach to Investments IDEAL’s Realised Performance… …. Underpinned by a Bespoke Value Creation Approach... 1▪ Engagement of industry experts within BoD / management 2.9x 2▪ Introduction of incentives for management alignment 3▪ Firming of governance structure, financia
Slide 17: Case Study: Three Cents Divestment to Coca Cola HBC
A Proven Value Enhancing Approach to Investments Case Study: Three Cents Divestment to Coca Cola HBC Investment Thesis 1) Fast-growing and fragmented market with solid consumer characteristics 2) Growing portfolio of new flavours Business Description 3) Potential for high value creation at strategic
Slide 18: Case Study: Astir Vitogiannis Divestment to Guala Closures
A Proven Value Enhancing Approach to Investments Case Study: Astir Vitogiannis Divestment to Guala Closures Investment Thesis 1) Growth opportunities in multiple markets via M&A and organic growth 2) High entry barriers due to customer relationships, quality standards, required Business Description
Slide 19: Investment Strategy & Pipeline
Investment Strategy & Pipeline
Slide 20: Clear Investment Strategy
Clear Investment Strategy >€10m EBITDA Geography Greece Financials w / high CF generation Target Size €70m - €300m Leverage Preferably c.2.0x(1) (EV) 100% or controlling Control Sector Agnostic stakes Investment Flexible Exit Visible Path Horizon (3 – 5 years) IDEAL’s well-defined and proven strateg
Slide 21: Rigorous Opportunity Selection Criteria
Rigorous Opportunity Selection Criteria “We invest in financially healthy companies who are clear market leaders or can serve as consolidators in fragmented sectors” Meticulous Selection Process Highly Meticulous and Selective Deal Process(1) Financial Operational Sector Dynamics Deal Drivers Charac
Slide 22: Use of Leverage
Use of Leverage IDH Approach to Leverage Leverage by Investment(1) Specialized ICT Industry HoldCo Consolidation Conservative approach to leverage increases our appeal as a (€mn) Retail 1 counterparty for family-owned businesses Net Debt (12.5) 11.3 1.8 72.7 73.3 EBITDA 12.4 19.9 23.9 (2.3) 53.9 Net
Slide 23: Commitment to Shareholders
Commitment to Shareholders Shareholder Remuneration & Reinvestment Policy Company Strategy • IDEAL maintains an efficient holding cost structure while compensating shareholders through a tax-efficient cash capital • Flexible Shareholder return approach Remuneration: Cash & SCRIP Dividends • It is ma
Slide 24: Appendix
Appendix
Slide 25: IDEAL's Transformational Transaction in 2021
IDEAL’s Transformational Transaction in 2021 In 2021, IDEAL went through an equity swap with Virtus, transforming the group to a PE-like investment vehicle 1 2 3 Virtus South European Fund Virtus South European Fund 100% 51% 49% ESM(2) SICC(3) 47.78% 100% S. Vitogiannis 100% 100% shares 100% shares
Slide 26: Investment Team Track Record
Investment Team Track Record 1. VSEF’s Investment in IDEAL ▪ In June 2016, IDEAL's current investment team launched VSEF, successfully raising funds in December 2016 ▪ VSEF completed two investments: Astir (2017) and Three Cents (2020) €31.6m ▪ In May 2021, VSEF executed a transformative move by acq
Slide 27: Comparable Financials
Comparable Financials(1) Revenues (€m) EBITDA (€m) 120% 101% 384 192% 206% 54 213 175 27 24 92 75 60 9 19 20 29 83 96 8 12 30 10 2 2021 2022 2023 2021 2022 2023 EBT (€m) Profit After Tax (€m) 76% 73% 38 189% 160% 27 22 17 15 12 16 16 6 12 7 12 7 7 9 5 6 7 1 1 2021 2022 2023 2021 2022 2023 ICT Indust
Slide 28: Retail Bond Issue
Retail Bond Issue Issuer Demand Breakdown Allocation Breakdown IDEAL HOLDINGS S.A. Security (type) 8% Publicly traded bond, listed on the ATHEX 25% Tenor 5 years 50% 42% 60% 15% Coupon 5.5% Coupon Type Fixed, paid 6 months EBRD Retail Institutionals EBRD Retail Institutionals Amount €100,000,000 Rep
Slide 29: Share Price Performance & Shareholding Structure
Share Price Performance & Shareholding Structure Share Price Performance % Shareholding Structure L3D L1W L1M L3M L6M L1Y L2Y L3Y L4Y IDEAL Holdings (0.2%) (4.3%) (5.4%) (7.2%) (2.8%) 18.9% 64.5% 62.2% 437.8% FTSE ASE MidCap (1.3%) (2.3%) (2.0%) (4.5%) 10.4% 27.4% 65.0% 66.7% 167.1% FTSE ASE 25 (3.1
Slide 30: ICT Segment
ICT Segment Business Overview Business Overview Key Financials (FY 2023) ▪ IDEAL Holdings operates in the Information Technology segment through holdings Byte Computer S.A., ADACOMS.A., IDEAL ELECTRONICS S.A. and their subsidiaries (“IT segment”), positioned among the market leaders in Cyber Securit
Slide 31: attica Department Stores
attica Department Stores Company Overview attica Department Stores operates as a one-stop-shop, maintaining 4 department stores in Athens and Thessaloniki and providing a wide range of fashion and cosmetic offerings from renowned international luxury brands. Business Overview Asset Overview ▪ attica
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