Sesa S.p.a. · MIL:SES
Sesa — 3rd Italian Mid Cap Conference 2021
28 slides from Sesa's conference presentation, Jan 19, 2021
Slide 1: Group Presentation
Group Presentation 3rd Italian Mid Cap Conference - January 19, 2021
Slide 2: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Business model evolution and strategic achievements Group Results and achievements H1 2021 and FY 2020 Market trend and long term sustainable growth Group Structure and Business Sectors VAD, SSI, BS Annexes Finan
Slide 3: Business Model evolution and Strategic Achievements
Business Model evolution and Strategic Achievements • Eu 2 Bn consolidated revenues and Eu 120 Mn Ebitda in FY 2021E (ending April 30, 2021) Organic growth embracing • Long-term growth: revenues CAGR 2011-21E +10.5%, Ebitda CAGR 2011-21E +13.7%, EAT Adj CAGR 2011-21E +17.1% new digital trends •
Slide 4: Organic growth embracing new digital trends
Organic growth embracing new digital trends Human capital development as strategic driver of Digital Enabler of Italian economy Group sustainable long-term growth • Focus on main digital innovation trends: Cloud, Security, Analytics, A.I., Collaboration • 75% of historical growth is organic and dr
Slide 5: M&A as acceleration driver of organic growth
M&A as acceleration driver of organic growth Year 2015 - 2017 Year 2018 - 2019 Year 2020 Year 2021 At acquisition FY 2021 Revenues Revenues Eu 100 Mn Eu 120 Mn VAD Revenues Eu 18 Mn Revenues Eu 50 Mn Revenues Eu 20 Mn Revenues Eu 6 Mn Revenues Eu 6 Mn Ebitda 4.0% Ebitda 4.1% Revenues Eu 16 Mn Revenu
Slide 6: Sustainability, long term growth and commitment of key people
Sustainability, long term growth and commitment of key people Long term commitment of key people Long term track record Long term stock performance Long term commitment of key people as executive partners REVENUES FY 21E CAGR 2011-2021E • STOCK PERFORMANCE SINCE IPO: +819%2 of Sesa Group through ITH
Slide 7: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Business model evolution and strategic achievements Group Results and achievements H1 2021 and FY 2020 Market trend and long term sustainable growth Group Structure and Business Sectors VAD, SSI, BS Annexes Finan
Slide 8: Group Financial Results: growing profitability and cash flow generation
Group Financial Results: growing profitability and cash flow generation Revenues Ebitda Group EAT Adj1 NFP Eu 889.3 mn Eu 53.6 mn Eu 24.2 mn Eu 23.1 mn (net cash) H1 2021 (+15.5% Y/Y) (+33.8% Y/Y) (+38.9% Y/Y) vs (May-Oct 2020) Eu 1.9 mn (net cash) Ebitda Margin EAT Adj margin Y/Y 6.0% (vs 5.2% H1 2
Slide 9: EBITDA and EAT margin improvement by segment (H1 2021)
EBITDA and EAT margin improvement by segment (H1 2021) Group Revenues Eu Mn (*) EBITDA Eu Mn EAT Adjusted Eu Mn (**) Revenues by Segment (*) +15.5% +33.8% +38.9% 1.3% 3.4% Y/Y Y/Y Y/Y 21.5% 22.6% 889.3 24.2 53.6 Oct 31 Oct 31 32.2 6.0% 2.7% 2017 2020 770.2 0.0 3.0 77.2% 74.0% 9.5 211.5 40.0 17.4 648
Slide 10: EBITDA and EAT margin improvement by segment (FY 2020)
EBITDA and EAT margin improvement by segment (FY 2020) Group Revenues Eu Mn (*) EBITDA Eu Mn EAT Adjusted Eu Mn (**) Revenues by Segment (*) +14.5% +27.1% +31.1% 1.1% 1.5% Y/Y 1,776 Y/Y 94.5 Y/Y 17.7% 21.1% 28.4 41.2 5.3% 1,551 2.3% Apr 30 Apr 30 17.1 3.4 396.0 0.5 2017 2020 1,363 74.3 81.2% 77.4% 1
Slide 11: Cash Flow generation and NWC management - FY 2014 – FY 2021 by Quarter
Cash Flow generation and NWC management - FY 2014 – FY 2021 by Quarter Higher Efficiency in NWC management 17.3% 15.7% NWC efficiency improvement 14.6% NWC/Revenues 4.0% in Q2 21 vs 6.4% in Q2 20 13.3% 13.3% 12.8% 12.0% 12.7% 12.6% 11.7% 11.6% 10.9% 10.7% 11.1% 11.2% 10.5% 10.2% 10.0% 10.3% 9.4% 9.4
Slide 12: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Business model evolution and strategic achievements Group Results and achievements H1 2021 and FY 2020 Market trend and long term sustainable growth Group Structure and Business Sectors VAD, SSI, BS Annexes Finan
Slide 13: IT Market Trends
IT Market Trends Worldwide IT market • Decrease in IT spending in 2020, followed by a strong recovery from 2021 • In three-year period 2021-23 IT demand is expected to grow with higher rates than estimated before Covid19 (annual avg growth 5%-7%)1 Italian market • Digital and IT Traditional Market a
Slide 14: Sesa Group and Sustainability
Sesa Group and Sustainability SUSTAINABLE GROWTH ENVIRONMENTAL RESPONSIBILITY - To create sustainable value for all Stakeholders supporting long-term growth - To safeguard and protect environment with several programs and procedures - Sesa compliance with SA 8000: Ethics, diversity and social respon
Slide 15: Sustainable long term growth FY 2011A - 2021E
Sustainable long term growth FY 2011A - 2021E 2,023 (E) 124.0 (E) 1,776 94.5 +31.2% 1,551 Y/Y +13.9% 74.3 1,363 +27.1% 1,230 1,271 +14.5% Y/Y 63.1 Y/Y Sales and Y/Y 57.9 1,060 54.0 other 948 EBITDA 49.7 51.6 Revenues 747 812 832 (Eu Mn) 41.3 44.2 34.4 (Eu Mn) 4.6% 5.1% 5.3% 5.2% 4.9% 4.4% 4.6% 4.6%
Slide 16: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Business model evolution and strategic achievements Group Results and achievements H1 2021 and FY 2020 Market trend and long term sustainable growth Group Structure and Business Sectors VAD, SSI, BS Annexes Finan
Slide 17: Group Structure and Market Position
Group Structure and Market Position SeSa Group is a leading Italian digital Consolidated revenues of Eu 1.8 Bn1 and services and solutions provider 3,073 employees2 Key player driving digital transformation to the Italian economy Technology, digital services and business applications embracing new d
Slide 18: Leadership in Italian VAD market
Leadership in Italian VAD market 1,452 Mn revenues, 53.3 Mn of Ebitda and 422 employees1 VAD Italian market Revenues breakdown share (2) H1 2021 Customer base of over 13,000 BPs (Software Houses, System Integrators, MSP, CSP) and full coverage of Device & the Italian territory (15 B2B branches) Othe
Slide 19: Digital and Innovation Partner for Enterprises and SMEs
Digital and Innovation Partner for Enterprises and SMEs 400 Mn revenues, 38 Mn of Ebitda and 2,169 employees1 Revenues breakdown H1 2021 Cognitive & Analytics 2% Customer Experience 2% Offering of digital solutions with 7 dedicated business units, leading digital transformation of SMEs and Enterpr
Slide 20: Business Services
Business Services 50 Mn revenues, 2.8 Mn of Ebitda and 297 employees1 Revenues breakdown H1 2021 Digital Transformation Business New Sesa Sector since March 2020 10% Services 52% Business Services, Process Outsourcing, Security Services, Digital Transformation for Financial Sector Process digitali
Slide 21: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Business model evolution and strategic achievements Group Results and achievements H1 2021 and FY 2020 Market trend and long term sustainable growth Group Structure and Business Sectors VAD, SSI, BS Annexes Finan
Slide 22: Group H1 2021 Results: 6M as of October 31, 2020
Group H1 2021 Results: 6M as of October 31, 2020 6M period as of October 31, 2020 (H1) Y/Y Highlights Segment Informations 6M period as of October 31, 2020 (H1) 6M period as of October 31, 2019 (H1) Q4 2020 results H1 2021 results (May – October 2020) In Euro Mn VAD SSI BS 1 Corporate Group VAD SSI
Slide 23: Group Annual Results as of April 30, 2020 by segment
Group Annual Results as of April 30, 2020 by segment Annual Results as of April 30, 2020 Y/Y Highlights Segment Informations Annual Results as of April 30, 2020 Annual Results as of April 30, 2019 Annual results as of April 30, 2020 1 In Euro Mn VAD SSI BS Corporate Group VAD SSI Corporate Group Con
Slide 24: Income Statement as of October 31, 2020 as reported
Income Statement as of October 31, 2020 as reported Change Reclassified Income Statement (Euro/thousand) H1 October 31, 2018 % H1 October 31, 2019 % H1 October 31, 2020 % 2020/19 Revenues 643,770 764,960 883,159 15.5% Other income 4,438 5,242 6,121 16.8% Total Revenues and Other Income 648,208 100.0
Slide 25: Balance Sheet as of October 31, 2020 as reported
Balance Sheet as of October 31, 2020 as reported Change Reclassified Balance Sheet (Euro/thousand) H1 October 31, 2018 H1 October 31, 2019 H1 October 31, 2020 2020/19 Intangible assets 45,801 63,123 106,188 43,065 Property, plant and equipment 55,517 73,091 92,350 19,259 Investments valued at equity
Slide 26: Income Statement as of April 30, 2020 as reported
Income Statement as of April 30, 2020 as reported Change Reclassified Income Statement (Euro/thousand) April 30, 2018 % April 30, 2019 % April 30, 2020 % 2020/19 Revenues 1,350,900 1,539,854 1,762,641 14.5% Other income 12,135 10,751 13,384 24.5% Total Revenues and Other Income 1,363,035 100.0% 1,55
Slide 27: Balance Sheet as of April 30, 2020 as reported
Balance Sheet as of April 30, 2020 as reported Change Reclassified Balance Sheet (Euro/thousand) April 30, 2018 April 30, 2019 April 30, 2020 2020/19 Intangible assets 39,083 54,001 74,273 20,272 Property, plant and equipment 55,221 57,771 83,958 26,187 Investments valued at equity 9,179 10,030 12,1
Slide 28: 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