Slide 1: 9M 2023 Results Presentation
© esprinet’ enabling your tech experience 9M 2023 Results Presentation November 14, 2023
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: Highlights
Slide 4: ICT distribution market trends and expectations
AFTER HAVING RECORDED A SEQUENTIAL WORSENING OF THE ICT DISTRIBUTION VOLUMES IN ALL EUROPEAN COUNTRIES THE ANALYSTS REDUCED THE SHORT-TERM EXPECTATIONS, PREDICTING FLAT OR EVEN SLIGHTLY NEGATIVE Q4-23 SALES TREND • Retailers/E-tailers customer segment, representative of IT spending by private consum
Slide 5: Group performance highlights
The Group accelerated the strengthening of V-Valley, Cost optimization activities, including reallocation of resources from Esprinet to V-Valley, the Solutions & Services division, recording growth in line with the market. are reducing the cost growth-rate paving the way for the expected decrease in
Slide 6: New areas of growth: AI, cybersecurity, everything as a service, ESG
The negative impacts linked to inflation, the cost of money and unpredictability have reshaped the picture of future opportunities. While some trends have faded, new areas of growth are emerging: I. Generative AI will increasingly be a focus of attention: 40% of core IT spend will be allocated to AI
Slide 7: 9M 2023 Results
enabling your tech experience 9M 2023 RESULTS
Slide 8: Trajectory: gross profit margin growth and net financial position
TRAJECTORY Fifth consecutive quarter with gross profit margins growth. The third quarter, historically the weakest in terms of cash conversion cycle, sees an GP% stood at 5.61%, 39 bps more than the 5.22% of 9M-22 and increase compared to the previous one of only 7 days (average in recent years 8 bp
Slide 9: 9M 2023 and Q3 2023 sales by country, division and customer
9M 2023 sales at 2,744.9 M€ (-15% compared to 9M 2022) Q3 2023 sales at 839.1 M€ (-19% compared to Q3 2022) Esprinet Market(2) Esprinet Market(2) Italy 1,685 M€ -12% -5% 507 M€ -17% -11% Spain 949 M€ -20% 0% 297 M€ -22% -9% Portugal 80 M€ 6% -6% 24 M€ -8% -9% Esprinet Market Esprinet Market Screens
Slide 10: Key indicators: gross profit, EBITDA, NFP, ROCE
9M 2023 Gross Profit at 154.1 M€ (-8% compared to 9M 2022), 5.61% on sales compared to 5.22% in 9M 2022. Q3 2023 Gross Profit at 5.80% on sales compared to 5.11% in Q3 2022. 9M 2023 EBITDA Adj. at 36.6 M€ (-33% compared to 9M 2022); 1.33% on sales (1.69% on sales in 9M 2022). Moving average last 4 q
Slide 11: Sales, gross profit and EBITDA adjusted by business line
1,480.1 1,895.6 -415.5 -22% 9.1 16.9 -7.8 -46% 0.61% 0.89% -0.28% 617.2 693.0 -75.8 -11% 7.8 16.4 -8.6 -52% 1.26% 2.37% -1.10% 29.6 42.2 -12.6 -30% -3.0 -1.2 -1.8 150% -10.14% -2.84% -7.29% 2,126.9 2,630.8 -503.9 -19% 13.9 32.1 -18.2 -57% 0.65% 1.22% -0.57% 610.4 576.5 33.9 6% 18.7 17.6 1.1 6% 3.06%
Slide 12: Income statement summary
• The Group further improved its gross profit margin performance which (M/€) 9M 2023 9M 2022 Var. % Q3 2023 Q3 2022 Var. % stood at 5.61%, a progressive increase compared to 5.22% in the same period last year and to 5.53% recorded in H1-23, despite the impact (29 bps) of the financial costs of progr
Slide 13: Net invested capital and funding
(M/€) 30/09/2023 30/09/2022 30/06/2023 • Net Invested Capital as of September 30, 2023 stood at 616.6 M€ and is covered by: o Shareholders’ equity for 356.0 M€ (384.9 M€ as of September 30, 2022); Fixed Assets 167.5 141.5 158.2 o Cash negative for 260.6 M€ (negative for 382.5 M€ as of September 30,
Slide 14: Working capital days, 4-quarter average
90 40 80 34 35 32 31 30 29 30 70 27 27 28 30 26 26 60 23 25 50 20 21 20 17 40 78 77 77 75 75 73 1269 70 68 70 66 1366 1368 1372 15 30 62 62 59 57 58 58 59 57 58 54 55 52 57 51 56 52 54 54 49 48 48 47 47 8 9 49 428 45 44 46 44 50 53 10 20 3937 4039 4239 39 40 42 37 38 37 38 38 37 3837 3738 35 35 35 3
Slide 15: Working capital days, quarter-end
100 50 90 44 42 41 40 39 40 80 33 36 33 31 30 70 29 29 29 25 60 20 15 50 16 16 14 12 89 85 10 40 82 81 77 76 73 72 72 73 68 70 68 69 66 66 30 61 65 59 2 60 61 60 59 57 56 58 57 0 54 52 55 53 54 52 51 -2 52 50 51 48 51 48 48 43 45 45 44 20 39 41 40 39 40 4041 40 39 41 4143 36 38 37 36 32 -8 35 3432 3
Slide 16: ROCE trend
30% 25% 25.1% 23.2% 20.5% 20% 19.7% 17.6% 15.7% 15.8% 16.2% 15.2% 15% 14.0% 12.9% 13.3% 11.4% 14.4% 13.1% 10.9% 11.0% 10% 9.4% 9.8% 11.6% 10.8% 9.6% 8.2% 8.1% 8.4% 8.6% 10.2% 9.1% 7.0% 8.3% 8.6% 8.2% 8.0% 7.1% 7.9% 8.0% 7.6% 7.1% 6.9% 7.3% 6.7% 6.3% 05% 00% 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 20
Slide 17: Final Remarks
@ esprinet’ ‘enabling your tech experience FINAL REMARKS J r = —_—
Slide 18: Management long-term commitment and shareholding
AFTER BUYING SHARES IN 2020, RISING TO ~9%, THEY BOUGHT MORE THAN 1.2 MILLION SHARES IN OCTOBER 2023, THROUGH THEIR INVESTMENT VEHICLE AXOPA S.r.l.. CONSIDERING SHARES PERSONALLY OWNED BY MAURIZIO ROTA AND ALESSANDRO CATTANI AND THE SHAREHOLDER AGREEMENT SIGNED BETWEEN AXOPA S.r.l. AND MONTINVEST S.
Slide 19: Final remarks and 2024 outlook
Significant gross profit margin growth Forecasted ICT industry recovery in 2024 product/customer mix pushed towards high-margin segments, absorbing the slow acceleration of demand in H1-24, stronger in H2-24 inflationary impact on transport costs by transferring them downstream and despite the Proje
Slide 20: Q&A
enabling your tech experience Q&A
Slide 21: Madrid MidCap Conference (Virtual Edition)
Madrid MidCap Conference (Virtual Edition) November 16th, 2023 organized by Intermonte 21
Slide 22: Thank you
Thank you GRAZIE + GRACIAS - OBRIGADO« DANKE « MERCI « ZA} « iff! « RR © esprinet’ enabling your tech experience