Sesa S.p.a. · MIL:SES
Sesa — 9M FY2024 Earnings Presentation
29 slides from Sesa's earnings presentation, Mar 14, 2024
Slide 1: Group Presentation and 9 months consolidated results
Group Presentation and 9 months consolidated results March 14, 2024
Slide 2: Agenda
Agenda Alessandro Fabbroni → Group business model and strategic achievements Chief Executive Officer → 9M Results as of January 31, 2024 and FY 24E Guidance → Business Sectors VAD, SSI, BS overview Elisa Gironi Corporate Governance, Integration and M&A → Annexes Financial Statements Director Jacopo
Slide 3: Group Business Model and Strategic Achievements
Group Business Model and Strategic Achievements Leading digital Leading digital partner for the business segment: technology, consulting and business applications partner for About 40,000 customers (o/w 4,000 abroad) with ∼ Eu 3.2 Bn revenues expected in FY as of April 30, 2024 Enterprises and O
Slide 4: Technology, Consulting and Vertical Applications for the Business Segment
Technology, Consulting and Vertical Applications for the Business Segment Italian leading player in Technological Innovation and Business Applications with outstanding growth in the last 13Y period 2012-24E: CAGR revenues +11.8%, EBITDA +16.3%, EAT Adjusted +18.6% 5,560 employees as of January 31, 2
Slide 5: Human capital and skills development programs
Human capital and skills development programs Hiring programs M&As contribution 5,700 CAGR 2012-2024E ∼ 15.9% 3,200 5,600 • 166 hires in Jan-Dec 2018 • 2015-19: 12 M&As, 554 HRs 5,560 human resources • 245 hires in Jan-Dec 2019 (+48% Y/Y) • Jan-Dec 2020: 11 M&As, 618 HRs as of January 31, 2024 2,908
Slide 6: Bolt-on industrial M&As to accelerate long-term organic growth
Bolt-on industrial M&As to accelerate long-term organic growth To attract and integrate skills and competencies, enhancing long-term organic growth: • 70 M&As starting from 2015 with additional 2,575 HRs and about Eu 630 Mn annual revenues at acquisition time (Eu 1 Bn in the FY24) • 13 M&As in Jan-D
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 REVENUES FY11 Eu 747 Mn EAT Adj FY11 Eu 11.5 Mn Sesa Group equity partners’ focus on long term Group REVENUES FY23 Eu 2,908 Mn EAT Adj FY23 Eu 100.1 M
Slide 8: Market Trends driven by digitalization path
Market Trends driven by digitalization path Worldwide ICT Market, source Gartner February 2024 Worldwide ICT market Bn Dollars 2018 2019 2020 2021 2022 2023 2024E Data Centre Systems 210 203 208 190 227 243 261 After the acceleration of 2021 Year (+13.4% Y/Y), the ICT market in Enterprise Software
Slide 9: Sustainability programs improvement
Sustainability programs improvement SUSTAINABILITY GOVERNANCE 309,191 ENVIRONMENTAL RESPONSIBILITY Economic value distributed Sustainable growth in corporate bylaws as 250,225 +24% Carbon Neutrality program in line with EU Agenda strategic target of Sesa BoD (since Jan 2021) Y/Y 208,042 Enviro
Slide 10: Agenda
Agenda Alessandro Fabbroni → Group business model and strategic achievements Chief Executive Officer → 9M Results as of January 31, 2024 and FY 24E Guidance → Business Sectors VAD, SSI, BS overview Elisa Gironi Corporate Governance, Integration and M&A → Annexes Financial Statements Director Jacopo
Slide 11: Steady growth in 9M 2024
Steady growth in 9M 2024 Revenues Ebitda Group EBIT Adj1 Group EAT Adj1 Eu 180.3 Mn Eu 145.9 Mn Eu 84.2 Mn NFP2 (+15.6% Y/Y) (+16.2% Y/Y) (+6.0% Y/Y) Eu 148.3 Mn (net cash) 9M 2024 Eu 2,396.1 Mn vs (May 23 - Jan 24) (+10.1% Y/Y) Eu 199.6 Mn (net cash) Ebitda Margin 7.52% EBIT Adj margin 6.1% EAT Adj
Slide 12: Revenues, EBITDA and EAT improvement by segment (9M 2019-24)
Revenues, EBITDA and EAT improvement by segment (9M 2019-24) 9M 24 Group Revenues and Other Income grew by 10.1% to Eu 2,396.1 Mn, thanks to the contribution of all Sectors: SSI +21.4% Y/Y, VAD up 6.0% Y/Y, Business Services +40.0% Y/Y, driven by the development of applications and digital platfor
Slide 13: Revenues, EBITDA and EAT improvement by segment (FY 2018-2023)
Revenues, EBITDA and EAT improvement by segment (FY 2018-2023) FY 23 Group Consolidated Revenues and Other Income grew by 21.7% to Eu 2,907.6 Mn with a significant development of all Sectors: VAD +20.4% Y/Y, SSI +22.8% Y/Y, Business Services +43.2% Y/Y FY 23 Group Ebitda increased by +24.9% Y/Y,
Slide 14: 9M 2024 Financial Results and FY 2024 Outlook
9M 2024 Financial Results and FY 2024 Outlook FY2022 FY2023 Change 9M 9M Change 13Y CAGR 5Y CAGR Guidance Guidance Guidance Eu million 12M 12M Y/Y 2023 2024 Y/Y 2012-24E 2020-24E FY 2024E3 FY24E/ FY23 FY 2025E4 Revenues 2,389.8 2,907.6 +21.7% 2,176.4 2,396.1 +10.1% +11.8% +15.9% 3.2 Bn Approx +10% E
Slide 15: Cash Flow generation and NWC management FY 2014-24 by Quarter
Cash Flow generation and NWC management FY 2014-24 by Quarter NWC and NWC/Revenues FY 2014 – FY 2024 Quarterly1 Group NFP2 FY 2014 – FY 2024 Quarterly • Progressive Efficiency improvement in NWC management in the 2014-2023 period • NFP continuos Improvement in the 2014-2023 period • Slight increase
Slide 16: Group sustainable long-term growth and FY 2024E guidance
Group sustainable long-term growth and FY 2024E guidance Sales and other Revenues (Eu Mn) EBITDA (Eu Mn) EBIT Adjusted2 (Eu Mn) 3,2001 242-2461 186-1901 CAGR 2012-24E +11.8% 2,908 +10% CAGR 2012-24E +16.3% CAGR 2012-24E +16.6% Y/Y 209.4 160.9 CAGR 2020-24E +15.9% CAGR 2020-24E +26.8% CAGR 2020-24E +
Slide 17: Agenda
Agenda Alessandro Fabbroni → Group business model and strategic achievements Chief Executive Officer → 9M Results as of January 31, 2024 and FY 24E Guidance → Business Sectors VAD, SSI, BS overview Elisa Gironi Corporate Governance, Integration and M&A → Annexes Financial Statements Director Jacopo
Slide 18: SSI: Digital Partner for European Enterprises
SSI: Digital Partner for European Enterprises Revenues breakdown1 800 Mn revenues, Ebitda margin ∼ 12% and 3,800 employees1 Data Digital Science Customer base of around 10,000 Enterprises and Mid Corporates of which over 2,000 abroad. Coverage of all Experience 2.5% Digital Workspace 4.0% Italian te
Slide 19: Business Services: Digital Transformation for Financial Services
Business Services: Digital Transformation for Financial Services 120 Mn revenues, Ebitda margin ∼ 13% and 800 employees1 Revenues breakdown1 Group Sector started on February 2020 and focused on digital transformation, business applications and Base Digitale digital platforms for Financial Services I
Slide 20: VAD: Digital partner of ICT ecosystems
VAD: Digital partner of ICT ecosystems VAD Italian market share2 Major Vendor Concentration 2.4 Bn revenues, Ebitda margin ∼ 5% and ∼ 750 employees1 (% of Sales)3 Others; 23.0% Computer 100% Complete offering of value-added technology, consulting, marketing and training Gross; 48.0% Ingram services
Slide 21: Agenda
Agenda Alessandro Fabbroni → Group business model and strategic achievements Chief Executive Officer → 9M Results as of January 31, 2024 and FY 24E Guidance → Business Sectors VAD, SSI, BS overview Elisa Gironi Corporate Governance, Integration and M&A → Annexes Financial Statements Director Jacopo
Slide 22: Group 9M Results as of January 31, 2024 by segment
Group 9M Results as of January 31, 2024 by segment 9-Months as of January 31, 2024 (9M) Y/Y Highlights Segment Information 9M period as of January 31, 2024 9M period as of January 31, 2023 9M 2024 results (May 2023 – Jan 2024) In Euro Mn VAD SSI BS Corporate Group VAD SSI BS Corporate Group Total Re
Slide 23: Income Statement as of January 31, 2024 as reported
Income Statement as of January 31, 2024 as reported Change 9M 2024 Consolidated reclassified Income Statement (Euro/thousand) 9M January 31, 2023 % 9M January 31, 2024 % vs 9M 2023 Revenues 2,154,663 2,368,320 9.9% Other income 21,722 27,790 27.9% Total Revenues and Other Income 2,176,385 100.0% 2,3
Slide 24: Income Statement as of April 30, 2023 as reported
Income Statement as of April 30, 2023 as reported Change FY Consolidated reclassified Income Statement (Euro/thousand) April 30, 2021 % April 30, 2022 % April 30, 2023 % 2023/22 Revenues 2,022,454 2,362,603 2,867,700 21.4% Other income 14,769 27,220 39,939 46.7% Total Revenues and Other Income 2,037
Slide 25: Balance Sheet as of January 31, 2024 as reported
Balance Sheet as of January 31, 2024 as reported Consolidated Reclassified Balance Sheet (Euro/thousand) 9M January 31, 2022 9M January 31, 2023 9M January 31, 2024 Change 2024/23 Intangible assets 198,876 314,243 446,752 132,509 Property, plant and equipment 106,189 123,230 139,969 16,739 Investmen
Slide 26: Balance Sheet as of April 30, 2023 as reported
Balance Sheet as of April 30, 2023 as reported Consolidated Reclassified Balance Sheet (Euro/thousand) April 30, 2021 April 30, 2022 April 30, 2023 Change 2023/22 Intangible assets 142,826 228,280 368,488 140,208 Property, plant and equipment 99,942 111,943 125,901 13,958 Investments valued at equit
Slide 27: Sesa Group M&As starting from 2015
Sesa Group M&As starting from 2015 SSI Sector Business Services Sector VAD Sector Company Revenues Company Revenues Company Revenues • APRA Eu 16 Mn • ACCADIS Eu 18 Mn • VAR BMS Eu 14 Mn • ICOS Eu 50 Mn • VAR PRIME Eu 5 Mn • PICO Eu 20 Mn • SAILING Eu 2.5 Mn 2015-20191 • YARIX Eu 4 Mn New Group Sect
Slide 28: Thank you for your kind attention
THANK YOU FOR YOUR KIND ATTENTION For additional information Stakeholder Relations Department Elisa Gironi, Corporate Governance, Integration and M&A Director e.gironi@sesa.it Jacopo Laschetti, Sustainability, Stakeholders and IR Manager j.laschetti@sesa.it Francesco Billi, Group CFO f.billi@sesa.it
Slide 29: www.sesa.it
www.sesa.it This document has been prepared by Sesa SpA (“SeSa” or the “Company”) solely for this presentation and does not represent any investment research, recommendation, consulting or suggestion, concerning the Company or its shares or any other securities/financial instruments issued by the Co