Sesa S.p.a. · MIL:SES
Sesa — Q1 FY2023 Earnings Presentation
28 slides from Sesa's earnings presentation, Sep 30, 2022
Slide 1: First Quarter Results as of July 31, 2022
FIRST QUARTER RESULTS AS OF JULY 31, 2022 Presentation September 30, 2022 – Le eccellenze del Made in Italy
Slide 2: Agenda
Agenda Alessandro Fabbroni → Business model and strategic achievements Chief Executive Officer → Group Results as of July 31, 2022 and FY 2023E Guidance → Business Sectors Overview → Annexes 2
Slide 3: Business Model and Strategic Achievements
Business Model and Strategic Achievements Leading digital partner for Enterprises: technology, digital services and applications offer with 35,000 customers (o/w 4,000 abroad) Leading digital partner for Human resources and technological skills development (4,163 employees, +21% FY22 Y/Y) as dri
Slide 4: Group focalization on vertical digital skills
Group focalization on vertical digital skills Group Governance Technology Solutions, Digital Services Italian leading player in technological and Business Applications for innovation and digital services, with revenues Enterprises and Organizations with for Eu 2.39 Bn in FY 2022 140 about 4,200 empl
Slide 5: Human capital development and sustainable growth
Human capital development and sustainable growth Technological Skills on main digital trends CAGR 2011-2022 of employees ∼ 16% (+21% Y/Y) 2,787 5700 Hiring: 607 new hires in Year 2022 (of which 50% 5200 under 30) 2,390 5,000 Training: ∼ 61,000 hours of education in the Fiscal 4700 Year 2022 (+132% Y
Slide 6: Bolt-on industrial M&As to accelerate organic growth
Bolt-on industrial M&As to accelerate organic growth Calendar Year 2015-20171 2018-20191 20201 20211 20221 FY April 30, 2023E2 • ACCADIS • PICO • CLEVER • P.M. SERVICE • BRAINWORKS Revenues Eu 18 Mn Revenues Eu 20 Mn Revenues Eu 6 Mn Revenues Eu 30 Mn (eu 150 Mn in FY 2022) Revenues Eu 15 Mn Revenue
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 development under REVENUES FY11 Eu 747 Mn long-term equity commitment program: REVENUES FY22A Eu
Slide 8: Market Trends: increasing digitalization demand
Market Trends: increasing digitalization demand $ Trillion +6.1% +3.0% Y/Y 4.8 5000 +13.5% Worldwide ICT market 5 +0.6% +3.7% Y/Y 4.4 Y/Y 4.5 Y/Y Y/Y 3.9 4000 4 3.7 3.7 1.5 1.5 Great acceleration of worldwide ICT market in 2021 (+13.5% Y/Y) after Covid 1.5 1.4 emergency, driven by Devices (+17.4%
Slide 9: Sustainability programs improvement
Sustainability programs improvement Sustainable growth introduction in corporate Carbon Neutrality programs in line with European bylaws as strategic target of Sesa Group 2030 Agenda BoD (Jan 2021) SUSTAINABILITY ENVIRONMENTAL Environmental performance in FY 2022: per Sesa Group certificatio
Slide 10: Agenda
Agenda Alessandro Fabbroni → Business model and strategic achievements Chief Executive Officer → Group Results as of July 31, 2022 and FY 2023E Guidance → Business Sectors Overview → Annexes 10
Slide 11: Sustainable growth continues in Q1 2023 driven by organic development
Sustainable growth continues in Q1 2023 driven by organic development Revenues Ebitda Group EAT Adj1 NFP2 Eu 47.6 Mn Eu 23.3 Mn Eu 208.3 Mn (net cash) (+23.7% Y/Y) (+23.2% Y/Y) vs Q1 2023 Eu 669.9 Mn (May 22 - Jul 22) (+21.2% Y/Y) Eu 179.2 Mn (net cash) Ebitda Margin EAT Adj margin 7.1% (vs 7.0% Q1
Slide 12: Q1 2023 Financial results and FY 2023 Guidance
Q1 2023 Financial results and FY 2023 Guidance Reported Results FY 22 Reported Results Q1 2023 Long term Growth FY 2023 Guidance FY FY 11Year 3Year FY 2022 Q1 2022 Q1 2023 Growth Growth % Eu million 2021 2022 CAGR CAGR FY 20233 Y/Y 3M 3M % Y/Y Y/Y 12M 12M 2011-22 2019-22 Revenues 2,037.2 2,389.8 +17
Slide 13: EBITDA and EAT margin improvement by segment (Q1 2019-23)
EBITDA and EAT margin improvement by segment (Q1 2019-23) Group Revenues Eu Mn1 EBITDA Eu Mn EAT Adjusted Eu Mn2 Revenues by Segment1 47.6 3.2% +21.1% Y/Y 669.9 23.3 22.2% 21.9% 7.1% 18.4 +23.7% Y/Y +23.2% Y/Y 3.5% 1.6 +13.3% Y/Y 13.9 38.5 Jul 31 Jul 31 8.5% 0.3 153.2 18.9 2018 2022 552.8 7.0% 1.4%
Slide 14: Sustainable long-term growth FY 2011 - FY 2023E
Sustainable long-term growth FY 2011 - FY 2023E Sales and other Revenues (Eu Mn) EBITDA (Eu Mn) EBIT Adjusted2 (Eu Mn) ∼ 2,7871 2,390 ∼ 2001 CAGR2011-22 +11.2% +17% CAGR2011-22 +15.5% CAGR2011-22 +15.6% ∼ 1501 2,037 CAGR2019-22 +15.5% +17.3% Y/Y CAGR2019-22 +31.1% 167.7 +19% CAGR2019-22 +31.2% +19%
Slide 15: Cash Flow generation and NWC management
Cash Flow generation and NWC management FY 2014-23 by Quarter Growing Efficiency in NWC management 160.7 FY2014 - FY2023 Quarterly1 155.9 149.8 150.1 NWC/Revenues 0.4% in Q1 NWC and NWC/Revenues 146.1 142.3 133.8 127.3 130.0 135.6 128.9 125.9 138.5 131.5 128.2 132.6 2023 vs 0.8% in Q1 2022 120.0 124
Slide 16: Agenda
Agenda Alessandro Fabbroni → Business model and strategic achievements Chief Executive Officer → Group Results as of July 31, 2022 and FY 2023E Guidance → Business Sectors Overview → Annexes 16
Slide 17: SSI: Digital and Innovation Partner for Enterprises and SMEs
SSI: Digital and Innovation Partner for Enterprises and SMEs Revenues breakdown FY2022 ∼ 572 Mn revenues, Ebitda margin ∼ 12% and 2,850 employees Customer&Business Customer base of around 12,500 Enterprises and SMEs of which over 2,500 abroad Experience 3,5% Data Science 1.5% Vertical business units
Slide 18: Business Services: digital transformation for Financial Services
Business Services: digital transformation for Financial Services ∼ 59 Mn revenues, Ebitda margin ∼ 10% and 550 employees Revenues breakdown FY2022 Group Sector launch on March 2020 focus on digital transformation and business services for Vertical Banking Financial Services Industry Application 20%
Slide 19: VAD: leadership in Italy in Value Added Distribution
VAD: leadership in Italy in Value Added Distribution ∼ 1,86 Bn revenues, Ebitda margin ∼ 5% and 630 employees Over 20,000 BPs customer set (Software Houses, System Integrators, MSP, CSP) of VAD Italian market share1 Revenues breakdown which 2,000 abroad FY2022 Networking& Long-term partnerships with
Slide 20: Agenda
Agenda Alessandro Fabbroni → Business model and strategic achievements Chief Executive Officer → Group Results as of July 31, 2022 and FY 2023E Guidance → Business Sectors Overview → Annexes 20
Slide 21: Group Q1 Results by segment
Group Q1 Results as of July 31, 2022 by segment 3-Months as of July 31, 2022 (Q1) Y/Y Highlights Segment Information 3M period as of July 31, 2022 (Q1) 3M period as of July 31, 2021 (Q1) Q1 2023 results (May 2022 – July 2022) In Euro Mn VAD SSI BS Corporate Group VAD SSI BS Corporate Group Total Rev
Slide 22: Group Annual Results as of April 30, 2022 by segment
Group Annual Results as of April 30, 2022 by segment Annual Results as of April 30, 2022 Y/Y Highlights Segment Informations Annual Results as of April 30, 2022 Annual Results as of April 30, 2021 Annual results as of April 30, 2022 In Euro Mn VAD SSI BS Corporate Group VAD SSI BS Corporate Group Co
Slide 23: Income Statement as reported
Income Statement as of July 31, 2022 as reported Consolidated reclassified Income Statement Change Q1 July 31, 2020 % Q1 July 31, 2021 % Q1 July 31, 2022 % (Euro/thousand) 2022/21 Revenues 484,168 547,777 663,717 21.2% Other income 3,642 4,978 6,220 24.9% Total Revenues and Other Income 487,810 100.
Slide 24: Balance Sheet as reported
Balance Sheet as of July 31, 2022 as reported Consolidated Reclassified Balance Sheet Change Q1 July 31, 2020 Q1 July 31, 2021 Q1 July 31, 2022 (Euro/thousand) 2022/21 Intangible assets 102,285 171,452 259,701 88,249 Property, plant and equipment 88,107 99,712 116,306 16,594 Investments valued at eq
Slide 25: Income Statement as of April 30, 2022 as reported
Income Statement as of April 30, 2022 as reported Consolidated reclassified Income Statement Change April 30, 2020 % April 30, 2021 % April 30, 2022 % (Euro/thousand) 2022/21 Revenues 1,762,641 2,022,454 2,362,603 16.8% Other income 13,384 14,769 27,220 84.3% Total Revenues and Other Income 1,776,02
Slide 26: Balance Sheet as of April 30, 2022 as reported
Balance Sheet as of April 30, 2022 as reported Consolidated Reclassified Balance Sheet (Euro/thousand) April 30, 2020 April 30, 2021 April 30, 2022 Change 2022/21 Intangible assets 74,273 142,826 228,280 85,454 Property, plant and equipment 83,958 99,942 111,943 12,001 Investments valued at equity 1
Slide 27: Thank you for your kind attention
THANK YOU FOR YOUR KIND ATTENTION For additional information Stakeholder Relations Department Conxi Palmero (investors, c.palmero@sesa.it), Jacopo Laschetti (stakeholders j.laschetti@sesa.it), Federico Nascimben e Alessandro Pasquinucci (media federico.nascimben@community.it; a.pasquinucci@sesa.it)
Slide 28: www.sesa.it
www.sesa.it 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