Sesa S.p.a. · MIL:SES

Sesa — 9M 2018 Earnings Presentation

23 slides from Sesa's earnings presentation, Mar 14, 2018

  1. Slide 1: Group Presentation

    Group Presentation GROUP’S NINE-MONTHS RESULTS AS OF JANUARY 31st, 2018

  2. Slide 2: Index

    Index Empoli, March 14th, 2018  Alessandro Fabbroni, SeSa Chief Executive Officer  Conxi Palmero, SeSa IR Manager  Group Overview  Group Results as of January 31st, 2018 (9M 2018)  Historical Financials Results (Track Record 2011-2018E)  Annexes 1-4 (Consolidated Financial Statements) 2

  3. Slide 3: Group Organization

    Group Organization SeSa Group is a leading Italian provider of value-added Information Technology (“IT”) solutions with total consolidated revenues equal to Eu 1,271.5 Mn (Fiscal Year as of April 30, 2017) and over 1,600 employees (as of January 31, 2018). Group’s organization consists of 3 division

  4. Slide 4: Business Model and Investment Case

    Business Model and Investment Case Strategic partner of Global IT Vendors (“IT Titans”) for the Italian market (Cisco, DellEMC, HP, HPE, IBM, Lenovo, Lexmark, Microsoft, Oracle, Samsung), focusing on value-added segments (Software Enterprise, Networking, Server, Storage, Cloud) Continuous and sustai

  5. Slide 5: Vision: Reference Strategic Partner and Service Integrator of the IT Global Vendors

    Vision: Reference Strategic Partner and Service Integrator of the IT Global Vendors  SeSa Group operates as strategic partner and Service Integrator of the IT Global Vendors with a successful relationship and long term partnerships with a wide Vendors’ base (among them major IT Titans*)  The long-

  6. Slide 6: Continuous growth since 90s

    Continuous growth since 90s  9.3% Revenue CAGR* over 2011-17 period, mainly organic thanks to new distribution agreements  3.4% Revenue* growth in the 12M as of April 30, 2017 (+5.0% YoY in the nine-month period as of January 31, 2018) New trend setter  Continuous growth since ’90s over-performin

  7. Slide 7: Leadership in Italian VAD Market

    Leadership in Italian VAD Market  CGI is leader in Italian VAD market, with a 43.3% market share in 2017. Total VAD revenues and other income of Eu 1,102.5 Mn as of April 30, 2017 (+1.9% YoY, 9% CAGR 2011-2017)  Customer base of over 11,000 Software Houses, System Integrators and Resellers  CGI i

  8. Slide 8: IT strategic partner for Italian SME & Enterprise

    IT strategic partner for Italian SME & Enterprise  VAR Group is a leading Software and System Integrator (“SSI”) company focused on Italian Enterprise & SME segments (32% of Italian IT market with Eu 6.0 Bn in 2018E – source Sirmi) BUSINESS  SSI segment reached Eu 239.8 Mn Revenues as of April 30,

  9. Slide 9: Index

    Index  Group Overview  Group Results as of January 31st, 2018 (9M 2018)  Historical Financials Results (Track Record 2011-2018E)  Annexes 1-4 (Consolidated Financial Statements) 9

  10. Slide 10: Consolidated Results 9M as of January 31, 2018

    Consolidated Results 9M as of January 31, 2018 Group Revenues Eu Mn (*) EBITDA Eu Mn 945.0 +5.0% 992.6 50 +8.3% 45.9 1000 +27.2% 45 42.4 173.2 220.2 40 800 35 4.48% 4.62% 30 600 25 +0.8% 826.5 833.3 20 400 15 200 10 5 0 0 Jan 31 2017 VAD SSI Jan 31 2018 Jan 31 2017 Jan 31 2018 Revenues by Segment Ne

  11. Slide 11: Segment Reporting as of January 31, 2018

    Segment Reporting as of January 31, 2018 3-Month (Q3) as of January 31, 2018 YoY 9-Month as of January 31, 2018 YoY  9M 2018 results: consolidated revenues up by 5.0% YoY, Ebitda up by 8.3%, EAT up by 11.2%; strong contribution of SSI Segment (revenues up by 27.2%, Ebitda up by 65.4%, EAT up by 129

  12. Slide 12: Financial Results as of January 31, 2018

    Financial Results as of January 31, 2018 Group Shareholders Equity (Eu Mn)* Group Net Financial Position (NFP) (Eu Mn) 192.8 +8.1% 208.5 30 28.7 200 25 +28.1% 20.6 150 20 100 15 10 50 5 0 0 Jan 31 2017 Jan 31 2018 Jan 31 2017 Jan 31 2018 28.7 Cash Flow generation (Eu Mn) 14.9 0.6 20.6 (1.4) 10.5 9.5

  13. Slide 13: Group External Growth

    Group External Growth  Group’s External Growth to support Group’s strategy aiming at developing service solutions and valued-added areas of business  Long-term Commitment of management team of the acquired companies, through Earn Out incentive plans in order to accelerate the long term improvement

  14. Slide 14: Index

    Index  Group Overview  Group Results as of January 31st, 2018 (9M 2018)  Historical Financials Results (Track Record 2011-2018E)  Annexes 1-4 (Consolidated Financial Statements) 14

  15. Slide 15: Group Economic Results FY 2011-2018E

    Group Economic Results FY 2011-2018E 1,313(E) 65 Revenues** (Eu Mn) 1,271 EBITDA (Eu Mn, % on revenues) 57.9 62.0(E) 1250 1,230 54.0 55 51.6 4.7% 1,060 49.5* 1050 4.6% 948* +3.3% 44.2 4.4% +7.0% 45 41.3 4.9% 812 832 YoY(E) 5.2% YoY(E) 850 747 34.4 5.3% 35 5.1% 650 4.6% 450 CAGR + 8.4% 25 CAGR +8.8%

  16. Slide 16: NWC and NFP annual average trend

    NWC and NFP annual average trend NWC/Revenues FY2014 - FY2018 Quarterly * Improvement in NWC 20% management 17.3% 15.7% 14.6% 15% 13.3% 13.3% 12.8% 12.7% 11.6% 12.0% 12.6% 11.1% 11.7% 11.2% 10.9% 10.5% 10.2% 10.0% 10.7% 10.3% 10% 7.4% 7.3% 6.3% 6.2% 5% 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

  17. Slide 17: Group Financial Results FY 2011-2018E

    Group Financial Results FY 2011-2018E Group Shareholders Equity* (Eu Mn) Net Financial Position (Eu Mn) 222.4(E) 70 205 199.0 53.5 50 Strong Free Cash 179.4 Flow Generation 160.4 30 155 143.9 129.9 10 4.2 105 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 30 Apr -10 2011 2012 2013 2014 2015 2016 2

  18. Slide 18: Index

    Index  Group Overview  Group Results as of January 31st, 2018 (9M 2018)  Historical Financials Results (Track Record 2011-2018E)  Annexes 1-4 (Consolidated Financial Statements) 18

  19. Slide 19: Income Statement as of January 31st, 2018

    Income Statement as of January 31st, 2018 Reclassified Income Statement 01/31/2018 01/31/2017 Ch. % % (Euro/thousand) (9 months) (9 months) 2018/17 Revenues 984,419 937,701 5.0% Other income 8,150 7,348 10.9% Total Revenues and Other Income 992,569 100.0% 945,049 100.0% 5.0% Purchase of goods 806,94

  20. Slide 20: Balance Sheet as of January 31st, 2018

    Balance Sheet as of January 31st, 2018 Reclassified Balance Sheet 01/31/2018 01/31/2017 04/30/2017 Euro/thousand) Intangible assets 37,276 18,147 21,848 Property, plant and equipment 54,104 46,996 49,736 Investments valued at equity 9,316 3,180 8,835 Other non-current receivables and deferred tax as

  21. Slide 21: Income Statement as of April 30th, 2017

    Income Statement as of April 30th, 2017 Reclassified Income Statement Change 04/30/2017 % 04/30/2016 % (Euro/thousand) 2017/16 Revenues 1,260,275 1,223,485 3.0% Other income 11,194 6,117 83.0% Total Revenues and Other Income 1,271,469 100.0% 1,229,602 100.0% 3.4% Purchase of goods 1,055,182 83.0% 1,

  22. Slide 22: Balance Sheet as of April 30th, 2017

    Balance Sheet as of April 30th, 2017 Reclassified Balance Sheet Change 04/30/2017 04/30/2016 Euro/thousand) 2017/16 Intangible assets 21,848 17,251 4,597 Property, plant and equipment 49,736 44,437 5,299 Investments valued at equity 8,835 3,938 4,897 Other non-current receivables and deferred tax as

  23. Slide 23: Disclaimer

    Disclaimer This document has been prepared by Sesa SpA (“SeSa” or the “Company”) and 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 othe

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