Slide 1: Update on Corporate Actions & Strategic Guidelines
UPDATE ON CORPORATE ACTIONS & STRATEGIC GUIDELINES March 2017
Slide 2: Group Overview: The European Leader in Cognitive Computing
GROUP OVERVIEW The European Leader in Cognitive Computing COMPANY PROFILE BUSINESS OVERVIEW FOUNDED IN MODENA (ITALY) IN 1989 AND PATENTED SEMANTIC TECHNOLOGY, CALLED COGITO, LISTED ON THE AIM ITALIA STOCK EXCHANGE SINCE Global Coverage WHICH IS A BUILDING BLOCK OF COGNITIVE Company Offices/Labs FEB
Slide 3: History and Industry Recognition
HISTORY AND INDUSTRY RECOGNITION Development milestones, rich in international awards ONLY 2 YEARS COGITO IS NEWEST RELEASE EXPERT SYSTEM PROVIDED IN EXPERT SYSTEM TWO NEW AMERICAN TOP 10 BIG DATA TEXT OF THE COGITO WAS FOUNDED MULTIPLE IBERIA AND CY4GATE SUBSIDIARIES: EXPERT ANALYTICS PLATFORMS, PL
Slide 4: Significant Events in 2016
SIGNIFICANT EVENTS IN 2016 Expert System confirms its market leading position Forrester KM World CODiE LT-Innovate Award ES named Strong Performer Cogito Risk Watcher Trend-Setting INTERNATIONAL Product of 2016 Winner of CODiE Awarded the 2016 LT- Innovate Award (“Big Data Text Analytics Awards 2016
Slide 5: FY2016 Consolidated Financials Highlights
FY2016 CONSOLIDATED FINANCIALS HIGHLIGHTS Group growth and Market expansion GROUP PERIMETER FINANCIALS HIGHLIGHTS Figures in €/mln 2015 (2) 2016 Expert System Sales 16,4 23,4 STRONG GROWTH S.p.A. +43% THANKS TO M&A AND ORGANIC Expert Expert DEVELOPMENT System System Deutschland Iberia Value of 23,2
Slide 6: FY2016 Trends per Country: Italy
FY2016 TRENDS PER COUNTRY Leading position in the Italian market STABLE GROWTH THANKS TO WELL- ESTABLISHED MARKET POSITION ITALY in Euro/mln +12% in VoP, thanks to sales growth (+38% YoY) Doubling Ebitda, despite increased personnel costs (+1mln YoY) 15,7 14,1 Net results is still negative 12,9 due
Slide 7: Development of UE & UK market presence
FY2016 TRENDS PER COUNTRY Development of UE & UK market presence TEMIS BUSINESS INTEGRATION COMPLETED IN FY16 & COMMERCIAL DEVELOPMENT IN HIGH POTENTIAL MARKET Revenues trend YoY (+89% in Sale & +61% in VoP) mainly due to M&A (Temis acquisition completed in Sept. 2015). Negative margins in FY16 due
Slide 8: US market presence: investing for the future
FY2016 TRENDS PER COUNTRY US market presence: investing for the future STRENGTHENING THE DIRECT SALES FORCE & SALES TO GOVERNMENT INSTITUTIONS Revenues trend YoY (+20% in Sale & +43% in VoP) mainly due to M&A (Temis acquisition completed at Sept. 2015). FY2016 margin affected by costs for business i
Slide 9: Financials & KPI Update: History of growth from IPO to Today
FINANCIALS & KPI UPDATE History of growth from IPO to Today Value Of Production Foreign Sales & Country Coverage in Euro/mln 10 Focus on 29,6 internationalization Strong growth in Value of Foreign revenues 6,2 Production triple in the last 3 from IPO, also years 13,4 thanks to Temis 61% 3 acquisitio
Slide 10: ES in the Global Top 10 of Big Data Text Analytics providers
MARKET POSITIONING ES in the Global Top 10 of Big Data Text Analytics platform providers EXPERT SYSTEM IS ONE OF THE The sample analyzed by Forrester TOP10 BIG DATA TEXT ANALYTICS The top 10 vendors included in this Wave counts approximately 200 PLATFORMS PROVIDERS. GLOBALLY, research represent the
Slide 11: Cogito Technology and Products Portfolio
COGITO TECHNOLOGY AND PRODUCTS PORTFOLIO Leading tech position in vertical business Expert System has a patented semantic technology able to understand and automatically analyze texts (as a person does), with a UNIQUE COMBINATION OF PRECISION, SPEED AND FLEXIBILITY OF USAGE, RELYING ON A DEEP MORPHO
Slide 12: Global Distribution Network
MARKET COVERAGE Global Distribution Network COGITO TECHNOLOGY SUPPORTS 14 LANGUAGES BLUE CHIP CLIENT BASE AMONG 100+ CUSTOMERS 12 UPDATE ON CORPORATE ACTION & STRATEGIC GUIDELINES
Slide 13: Dramatic growth of Artificial Intelligence markets
MARKET TRENDS Dramatic growth of Artificial Intelligence markets COGNITIVE SYSTEMS & AI FORECASTS TEXT ANALYTICS MARKET Widespread adoption of cognitive systems FORRESTER SURVEY ABOUT FIRM'S PLANS TO IMPLEMENT TEXT ANALYTICS and artificial intelligence (AI) across a 35% $47 billion broad range of in
Slide 14: Cogito transforms the way people find, comprehend & use information
TECHNOLOGY DEVELOPED Cogito transforms the way people find, comprehend & use information A UNIQUE Which Rock? TECHNOLOGY Includes built-in knowledge (knowledge graph) Reads and understands the way that people do Makes knowledge discovered in text actionable Learns from human experience COGITO’S KNOW
Slide 15: Business and Market development based on 3 Pillars
STRATEGIC GUIDELINES Business and Market development based on 3 Pillars EXPERT SYSTEM INTENDS TO PURSUE ITS GROWTH PLAN INCREASING COMMERCIAL STRENGTHENING PRESENCE IN HIGH- POTENTIAL MARKETS OF LEVERAGING PROVEN FOREIGN COGITO TECHNOLOGY AND MARKETS EXPERT SYSTEM VERTICAL PRODUCTS WRAP UP INTEGRATI
Slide 16: Market challenges for the next 3 years
FORECAST PER COUNTRY Market challenges for the next 3 years Group Sales Forecast ITALY & RoW in Euro/mln CONSOLIDATING LEADING MARKET POSITION 22% Sales 54 INCREASING PENETRATION IN INSURANCE AND FINANCE MARKETS +36% DEVELOPMENT OF SWISS MARKET VoP 18% Ebitda 41,4 47,4 % 10% +24% 34,5 UE & UK +21% Y
Slide 17: Global development in a growing market
KEY CONSOLIDATED FINANCIAL FORECAST Global development in a growing market Figures in €/mln 2017 2018 2019 INCREASING INCREASING SALES OF Sales 28,2 34,9 47,4 CAGR ~29% VS FY16 INTERNATIONAL SALES LICENSING (APPROX. 53% (APPROX. 70% IN 2019) OF 2019 TOTAL SALES) STEADY INCOME FROM GRANT (APPROX. € 2
Slide 18: Unique positioning in the fast growing AI market
INVESTMENT OPPORTUNITY Unique positioning in the fast growing AI market Global public company > 90% precision Offices in Europe and North America Term disambiguation Patented technology in USA, Award- winning 20 Gigabytes/Day Winner in EU and US software Over 8 core selections for key customers than
Slide 19: Disclaimer
Disclaimer This presentation contains forward-looking statements regarding future events (which impact Expert System’s future results) that are based on current expectations, estimates and opinions of management. These forward-looking statements are subject to risks, uncertainties and events that ar