Slide 1: H1 2022 Results Presentation
© esprinet’ enabling your tech experience H1 2022 Results Presentation September 13, 2022
Slide 2: Forward-looking statements disclaimer
This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. Forward-looking statements may include, in particular, statements about future events, futu
Slide 3: H1 2022 Performance
esprinet’ enabling your tech experience H120e2 Performance
Slide 4: H1 2022 highlights
-3% compared to H1 2021 -9% compared to H1 2021 15.2% in Q1 2022 ▪ Sales by quarter ▪ Gross profit: 114.8 M€, 5.27% on ▪ Cash Cycle closes at 17 days, +9 days • Q1 2022: 1,139.4 M€ sales, compared to 5.24% of H1 2021. compared to H1 21 and +4 days (-2% vs Q1 2021) compared to Q1 22. • Q2 2022: 1,039
Slide 5: Business pillars and product categories
Categories: Categories: • Printing • Renting fees • Monitors • Logistic services • Components • Marketing • Accessories services • White goods • Maintenance • Gaming • Digital solutions • Other CE products Categories: Categories: • Servers Brands: • PCs • Storage • Nilox • Tablets • Networking • Cel
Slide 6: Sales and EBITDA Adj. by business pillar
1,288.5 1,400.0 -111.5 -8.0% 12.1 13.3 -1.2 -9.0% 0.94% 0.95% -0.01% 471.3 445.3 26.0 5.8% 10.3 7.9 2.4 30.8% 2.19% 1.77% 0.42% 385.9 348.7 37.2 10.7% 13.2 11.1 2.1 19.3% 3.43% 3.18% 0.25% 5.3 4.8 0.5 10.3% 3.1 3.7 -0.7 -17.8% 58.03% 77.83% -19.80% 27.6 38.0 -10.4 -27.2% -0.8 5.7 -6.5 -114.2% -2.92%
Slide 7: EBITDA Adj. variance commentary by pillar
The EBITDA Adj. reduction of Euro 3.8 million in H1 2022 against the previous year is mostly due to a Euro 6.5 million reduction in the Own Brands EBITDA Adj. and secondarily from a reduction in the Screens EBITDA Adj. mostly deriving from lower sales in line with the slowdown of the market demand f
Slide 8: Sales by geography, pillar and customer type versus market
Esprinet Market(*) Esprinet Market(*) Esprinet Market(*) Retailers & 1,298 M€ Italy -7% -4% 1,289 M€ Screens -8% -12% 846 M€ -11% -12% E-tailers 807 M€ Spain 4% 1% 471 M€ Devices 6% 3% 1,454 M€ IT Resellers 6% 6% Solutions 49 M€ Portugal 21% 8% 391 M€ & Services 11% 10% (**) 28 M€ Own Brands -27% 25
Slide 9: Q2 and H1 2022 income statement
• The gross profit margin increased both because of a (M/€) Q2 2022 Q2 2021 Var. % H1 2022 H1 2021 Var. % better product and customer mix as well as because of better margin on most product lines, despite the growth in transport costs (+0.12 bps) the main area where we Sales from contracts with cust
Slide 10: Net invested capital and net financial position
(M/€) 30/06/2022 30/06/2021 31/03/2022 • Net Invested Capital as of June 30, 2022 stands at 635.8 M€ and is covered by: • Shareholders’ equity, including non-controlling interests for 378.9 M€ (364.7 M€ as of June 30, 2021); Fixed Assets Operating Net Working Capital 140.2 405.3 139.3 232.2 139.9 25
Slide 11: Working capital and cash cycle days
80 40 Working capital worsening (+4 days) 34 compared to the previous quarter due 70 35 to: 30 29 • increase in inventory days (+6 days); 60 27 28 30 • only partially offset by the increase in 27 26 payment terms to suppliers (+3 days). 50 23 25 Cash Conversion Cycle still remains below the target (
Slide 12: Inventory, DSO, DPO and cash cycle days by quarter
90 50 80 42 40 39 40 70 33 33 31 30 29 29 60 25 20 50 15 16 16 85 14 40 82 81 77 76 10 68 70 68 65 66 30 61 59 60 61 57 54 52 52 56 58 55 2 57 52 51 50 51 51 0 -2 48 43 45 45 44 20 39 41 40 39 40 4041 40 39 41 36 38 35 37 36 3432 34 34 32 -8 27 -10 -10 24 10 -11 0 -20 2018 Q1 2018 Q2 2018 Q3 2018 Q4
Slide 13: ROCE
30,0% 25,0% 25.1% 23.2% 20.5% 20,0% 19.7% 17.6% 15.7% 15.8% 16.2% 15.2% 15,0% 14.0% 11.4% 14.4% 13.1% 12.9% 9.8% 10.9% 10,0% 9.4% 11.6% 8.5% 7.7% 8.1% 8.4% 8.2% 8.6% 8.6% 7.6% 7.0% 8.3% 10.2% 7.9% 8.0% 7.6% 7.1% 7.2% 6.7% 7.1% 5,0% 0,0% 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4
Slide 14: Outlook 2022
esprinet’ enabling your tech experience Outlook 2022
Slide 15: Market and macro environment
Improvement of supply chain, with some exceptions in the Solutions segment and in printing The spike in inflation in advanced economies has led to a reduction in household purchasing solutions whose arrival lead-times are still unpredictable. power and forced central banks to raise interest rates. C
Slide 16: Business line updates and recent developments
Distribution business: The Group had a significant growth in sales and The Group continues to be focused on increasing the revenue weight of profitability, both in percentage and in value, during the months of July this business line with higher added value (to 20% from 18% in the first and August a
Slide 17: Strategic pillars: organic growth, profitability, M&A
ORGANIC GROWTH PROFITABILITY GROWTH TROUGH M&A Growth and innovation From volume to value add IMPROVEMENT Expansion in other areas of delivered through a distribution Customer satisfaction, Western Europe in the SUSTAINABLE AND Advanced Solutions and Own Advanced Solutions and in INTEGRATED APPROACH
Slide 18: Outlook and risks
• The Group remains vigilant in light of the current conditions of great uncertainty in the backdrop, characterized by the persistence of the volatility of the energy market and by geopolitical conflicts at an international level: inflation and geopolitical risks make the outlook challenging; • In t
Slide 19: Financial goals 2022
Financial Goals Pe) esprinet enabling your tech experience 2022 REVENUE EBITDA Adj. “AS*CGERSION ROCE DIVIDENDS Growth low single digit > 93 million euros < 18 Days High double digit Pay out ratio 50% 19
Slide 20: Q&A Session
esprinet’ enabling your tech experience Q&A Session
Slide 21: Upcoming events and conferences
Le eccellenze del Made in Italy September 29/30, 2022 organized by Intermonte IT Value-Added-Reseller (VAR) Day October 5, 2022 organized by Kepler Cheuvreux Italian Excellences Mid Corporate Conference October 11, 2022 organized by Intesa Sanpaolo Board of Directors November 10, 2022 Approval of th
Slide 22: Thank you
Thank you GRAZIE + GRACIAS - OBRIGADO« DANKE « MERCI « ZA} « iff! « RR © esprinet’ enabling your tech experience
Slide 23: Appendix
@ esprinet’ enabling your tech experience
Slide 24: The Company & The Industry
@ esprinet’ enabling your tech experience The Company & The Industry
Slide 25: 20+ years in business, 3 geographies
Esprinet Group is an enabler of the tech ecosystem with a profound calling to social and environmental sustainability. To promote tech democracy and guide people and firms towards digitalisation, Esprinet offers European clients its expertise in advisory and cybersecurity, as well as a selection of
Slide 26: Distributor sales and market share 2021
SALES 2021 COMPANY SHARE (M/€) Esprinet 4,691 25.2% • • • Tech Data 3,510 18.8% • • • Ingram Micro 2,470 13.2% • • • Computer Gross 1,780 9.5% • Arrow ECS 1,018 5.5% • • Attiva 653 3.5% • MCR 590 3.2% • Datamatic 490 2.6% • Exclusive Networks 263 1.4% • CPCDI 252 1.4% • Inforpor 217 1.2% • Depau 208
Slide 27: Total market and distributor channel weight
Total Market (A+B)(*) 10.4 6.0 17.2 33.6 12.5 46.1 A) Direct Channel & 1st Tier 1.6 2.3 11.9 15.9 11.5 27.4 B) 2nd Tier Distris (a+b+c) 8.8 3.6 5.3 17.7 1.0 18.6 2021 Weight Of Distris 84% 61% 31% 53% 8% 40% On Market(°) 2020Weight Of Distris On Market 98% 65% 31% 56% 8% 43% a) Professional Reseller
Slide 28: ICT distributor share of product sales
20,0 60% 56% 18,0 53% 52% 50% 16,0 48% 50% 45% 14,0 40% 12,0 10,0 30% 8,0 20% 6,0 4,0 10% 2,0 0,0 0% 2017A 2018A 2019A 2020A 2021A 2022E Direct sales of ICT products (ex-white goods) ICT distributor sales Share in ICT products (ex-white goods) IDC figures for IT Clients - Advanced Solutions & Smartp
Slide 29: Market leader with solid financial structure
The pandemic has brought ICT to the forefront as a critical Esprinet is the undisputed market leader with a solid financial enabler of everyday life and business continuity fueled by structure continuous innovation We are already witnessing the acceleration of digital processes Working capital disci
Slide 30: EBITDA Adj. history
100 2,00% 90 1,80% 80 1,60% 70 1,40% 60 1,20% 50 1,00% 40 0,80% 30 0,60% 20 0,40% 10 0,20% 0 0,00% EBITDA Adj. EBITDA Adj. % (*) CAGR Total market 4% 30
Slide 31: Strategy & Long Term Targets
@ esprinet’ enabling your tech experience Strategy & Long Term Targets
Slide 32: Structural change of business model to full service provider
AFTER 20 YEARS FROM THE BIRTH OF ESPRINET, THE GROUP LAUNCHES A STRUCTURAL CHANGE OF THE BUSINESS MODEL WITH THE AIM IN THE NEXT DECADE OF ADDING TO THE DISTRIBUTION BUSINESS A NEW «FULL SERVICE PROVIDER» MODEL WITH SIGNIFICANTLY HIGHER ADDED VALUE THAN THE TRADITIONAL ONE 32
Slide 33: Target 2024 EBITDA Adj. above 125 M€
• A business model revolution moving into a much higher margin space paving the way, giving the intrinsic structure of the rental program, to CAGR 15% future massive profitability improvements • Target 2024: increase by roughly 50% our Adj. EBITDA to more than 125 M€ (CAGR 15%) • Capital employed op
Slide 34: Focus on profitability improvement
BEING CAPITAL EMPLOYED OPTIMIZATION A PREREQUISITE, THE FOCUS IS ON PROFITABILITY IMPROVEMENT • Customer satisfaction: more differentiation and margins • Leveraging a global cross-industry macro trend • Product mix: focus on Advanced Solutions and own brands • Getting a bigger portion of the value i
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Slide 36: Focus on ESG
36 Focus on ESG @ esprinet’ enabling your tech experience | | | | BILLION LEADER IN New ESG TARGET soeevinw | 4 . 7 euro Sales | SOUTHERN EUROPE | ESG CENTRIC STRATEGY in the Remuneration Policy | (+4,4% vs 2020) | (Italy, Spain and Portugal) | | | | ENVIRONMENTAL | CLIMATE | PACKAGING LEEDPLATINUMC
Slide 37: Governance
@ esprinet’ enabling your tech experience Governance
Slide 38: Our Vision, Mission & Values
Our Vision, Mission & Values Pe) esprinet enabling your tech experience OUR VISION OUR MISSION OUR VALUES a a BE THE KEY POINT OF hue MAKE URE ESSE CONTACT BETWEEN Ts ro) FOR PEOPLE AND FOR ORGANISATIONS MANUFACTURES, RESELLERS igi AND TECHNOLOGY USERS H Co) BRAVERY We want to create value for these
Slide 39: Board committees
(* ) Giovanni Testa, Chief Operating Officer of Esprinet, is the fourth member of the committee 39
Slide 40: Management
Management @ esprinet’ enabling your tech experience GROUP MANAGEMENT GENERAL MANAGEMENT Pietro Agliand Cesare Pedrazzini Nunzio Punzi Ettore Sorace Chier Administration @ Risk Officer Chief Information Officer Group Supply Chain Director HR Director LOCAL MANAGEMENT Alessandro Cattani Giovanni Test
Slide 41: Code of Ethics and Organisation Model
The Code of Ethics applies to all The Esprinet Group wishes to This document, entitled “Organisation and Management Model activities carried out by or in the establish trade relations with its pursuant to “Legislative Decree 231/2001” (hereinafter called “the name and on the behalf of Esprinet vendo
Slide 42: STAR segment requirements
• High transparency, disclosure requirements and liquidity (free float of minimum 35%) Esprinet Spa listed in the STAR • Corporate Governance in line with international standards Segment* voluntarily adhere to and comply with strict requirements *The market segment of Borsa Italiana’s equity market
Slide 43: Shareholders and stock information
DECLARANT & DIRECT SHAREHOLDER % ON ORDINARY CAPITAL % ON VOTING CAPITAL ANALYST Giuseppe Calì 11.37% 11.37% COVERAGE Axopa S.r.l. (Maurizio Rota and Alessandro Cattani) 9.89% 9.89% Luigi Monti 5.44% 5.44% Marco Monti 5.44% 5.44% Stefano Monti 5.44% 5.44% Mondrian Investment Partners Limited 5.05% 5
Slide 44: Thank you
Thank you GRAZIE + GRACIAS - OBRIGADO« DANKE « MERCI « ZA} « iff! « RR © esprinet’ enabling your tech experience