Slide 1: Group Presentation
Group Presentation STAR Conference March 27th-28th, 2018
Slide 2: Agenda
Alessandro Fabbroni - Chief Executive Officer Group Overview Conxi Palmero - Investor Relation Manager ICT Market Trend Group Results as of January 31th, 2018 Historical Financials Results (Track Record 2011-2018E) Governance and Investors Information Annexes (Consolidated Financial Statements) 2
Slide 3: Group Structure
Group Structure SeSa Group is a leading Italian IT Consolidated revenues1 € 1,271.5m services and solutions provider and over 1,650 employees2 Corporate Services and Group’s Direction Group’s Strategy, HR, Planning & Control, Finance, M&A, Legal, ICT & Operations, Logistic, Cloud services through th
Slide 4: Business Model and Investment Case
Business Model and Investment Case Strong Financial Steady growth Strong partnerships Long Term Track Record1 • Continuous and sustainable growth since • Strategic partner of Global IT Vendors (“IT ’73, leveraging major IT trends and over- Titans”): Cisco, Citrix, DellEMC, HP, HPE, performing the It
Slide 5: Reference Strategic Partner and Service Integrator of the IT Global Vendors
Reference Strategic Partner and Service Integrator of the IT Global Vendors Strategic partner and Service Integrator of The long-term partnerships with the IT Progressive introduction of several trend the IT Global Vendors with a successful Titans represents the main driver of setter cloud and softw
Slide 6: Continuous Growth Since 90s
Continuous Growth Since 90s New trend setter Vendors (**) 1,326(E) 1,271 1,230 1,060 Continuous growth since 948 ’90s over-performing the reference Italian market 812 832 747 665 Over 2011-2017 604 9.3% Revenue CAGR* 570 579 546 522 mainly organic thanks to new 476 distribution agreements 402 366 33
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 2017 VAD Market Share VAD revenues and other income of Eu 1,102.5 Mn as of April 30, 2017 (+1.9% YoY, 9% CAGR 2011-2017) 50% 43.3% 40% Customer base of over 11,000 Software Houses, System
Slide 8: IT Strategic Partner for Italian SME & Enterprise
IT Strategic Partner for Italian SME & Enterprise VAR Group is a leading Italian SSI revenues reached Eu 239.8 IT innovation partner for Full offering of integrated IT Full offering of Cloud services R&D focusing on most Software and System Mn as of April 30, 2017. Over Italian SME & Enterprise than
Slide 9: Human Capital and Competitive Advantages
Human Capital and Competitive Advantages Human Capital Training and certification Proprietary Datacenter for cloud Successful and Long Term of 1,650 qualified people with programs solutions and services. relationships professional skills in main innovative in partnership with Vendors to Datacenter l
Slide 10: Annual Financial Track Record 2011-2017
Annual Financial Track Record 2011-2017 Revenues Ebitda Net Profit EPS Group Revenues and Other Group Ebitda Group Net Profit After Taxes Income EPS Eu 57.9 Mn before minority interest Eu 1.271.5 Mn Eu 1.62 (+7.2% YoY) Eu 27.1 Mn (+3.4% YoY) +4.5% YoY Ebitda Margin EAT margin 4.55% 2.13% 2011-17 201
Slide 11: Agenda
Alessandro Fabbroni - Chief Executive Officer Group Overview Conxi Palmero - Investor Relation Manager ICT Market Trend Group Results as of January 31th, 2018 Historical Financials Results (Track Record 2011-2018E) Governance and Investors Information Annexes (Consolidated Financial Statements) 11
Slide 12: Italian IT Market 2013-2019E
Italian IT Market 2013-2019E Italian IT market trends IT Italian market (2016-2019E) in Eu Mn CAGR 2015-2019E 2.4% 20000 19,288 19,812 19,019 18,817 +2.7% Italian IT market grew by 1.6% in 2016 and by 1.9% 18,616 18,470 -4.1% 18,188 +2.5% in 2017, after an average 3% annual decline trend 18000 -2.1%
Slide 13: Global ICT market trend 2015-2021E
Global ICT market trend 2015-2021E Global IT market (2015-2021) in USD Bn Global IT market trends Global spending on Security Solutions embracing IT Services, Enterprise Software and Data Center 4500 CAGR 2016-2021E 3.3% Infrastructure expected to accelerate over the next years, achieving a 4.8% CAG
Slide 14: Focus on IT market trends
Focus on IT market trends Global IT Technology Evolution Distribution Role System Integration Role • Global Major Vendors business model • Vendors require higher specialized • Customers IT spending driven by new IT consolidation distribution to leverage the new trends of trends: digital solutions, a
Slide 15: Agenda
Alessandro Fabbroni - Chief Executive Officer Group Overview Conxi Palmero - Investor Relation Manager ICT Market Trend Group Results as of January 31th, 2018 Historical Financials Results (Track Record 2011-2018E) Governance and Investors Information Annexes (Consolidated Financial Statements) 15
Slide 16: Group Interim Results (9M) as of January 31, 2018
Group Interim Results (9M) as of January 31, 2018 Group Revenues Eu Mn (*) EBITDA Eu Mn Net profit after taxes Eu Mn (**) Revenues by Segment 1.1% 1.1% +5.0% +8.3% +11.2% 17.1% 20.7% 50 24 Jan 31 Jan 31 22.6 992.6 45.9 2017 2018 945.0 45 22 1000 42.4 20.3 81.8% 78.2% 220.2 20 173.2 40 18 800 35 VAD
Slide 17: Group Interim Results (9M) by segment
Group Interim Results (9M) as of January 31, 2018 by segment 3-Month (Q3) as of January 31, 2018 YoY 9-Month as of January 31, 2018 YoY Segment Informations Three – months period as of Jan 2018 Three – months period as of Jan 2017 Segment Informations Nine – months period as of Jan 31 2018 Nine – mo
Slide 18: Group Financial Results (9M): Cash Flow Generation
Group Financial Results (9M) as of January 31, 2018 Group Net Financial Position (NFP) (Eu Mn) Group Shareholders Equity (Eu Mn)* Consolidated NFP as of +28.1% +8.1% January 31, 2018 equal to Eu 20.6 Mn (net debt) 28.7 192.8 208.5 improved by Eu 8.1 Mn (up 30 200 28.1%) YoY compared to 25 January 31
Slide 19: Group External Growth
Group External Growth Group 2015-2018 Main Acquisitions External Growth to support Group’s strategy aiming at developing Target Overview Investment rationale Financial Highlights service solutions and valued-added areas of business Accadis: Long-term Commitment of Accadis (2016) 1st Italian Addition
Slide 20: Agenda
Alessandro Fabbroni - Chief Executive Officer Group Overview Conxi Palmero - Investor Relation Manager ICT Market Trend Group Results as of January 31th, 2018 Historical Financials Results (Track Record 2011-2018E) Governance and Investors Information Annexes (Consolidated Financial Statements) 20
Slide 21: Group Annual Economic Results 2011-2018E
Group Annual Economic Results 2011-2018E 1,326(E) 65 63.5(E) 1,271 57.9 1,230 1250 54.0 1,060 55 49.5* 51.6 +4.3% 4.8% +9.7% 1050 948* 44.2 4.6% 832 YoY(E) 45 41.3 4.4% YoY(E) 850 747 812 4.9% EBITDA (Eu 34.4 5.2% Revenues ** 35 5.3% 650 Mn, % on (Eu Mn) 5.1% revenues) 25 450 4.6% CAGR + 8.5% 15 CAG
Slide 22: NWC and NFP annual average trend 2014-2018E by Quarter
NWC and NFP annual average trend 2014-2018E by Quarter Improvement in NWC management 20% 17.3% 18% 15.7% 16% 14.6% 13.3% 13.3% 12.8% 14% 11.7% 11.6% 12.0% 11.2% 12.7% 12.6% 12% 10.5% 10.9% 10.2% 10.7% 10.3% 11,1% 10.0% 9.5% (E) 10% 7.4% 7.3% NWC/Revenues 8% 6.3% 6.2% 6.1%(E) FY2014 - FY2018 6% 4% Qu
Slide 23: Group Annual Financial Results 2011-2018E
Group Annual Financial Results 2011-2018E Group Shareholders Equity* (Eu Mn) Net Financial Position (Eu Mn) Net Financial Position (Cash/Net Liquidity) equal 70 to Eu 51.9 Mn as of April 221.7(E) 30, 2017 (up Eu 10.1 Mn 53.5 compared to April 30, 205 199.0 2016) 50 179.4 Strong Free Cash 160.4 Flow
Slide 24: Agenda
Alessandro Fabbroni - Chief Executive Officer Group Overview Conxi Palmero - Investor Relation Manager ICT Market Trend Group Results as of January 31th, 2018 Historical Financials Results (Track Record 2011-2018E) Governance and Investors Information Annexes (Consolidated Financial Statements) 24
Slide 25: Key Investor Information
Key Investor Information Sesa (Euro) 2015 2016 2017 2018 SeSa Stock Trend Index Stock Market (1) MTA MTA - Star MTA - Star MTA - Star 200% Stock market price (Jan 31 of every Fiscal Year) 13.28 14.42 18.68 26.80 180% 173.5% 151.2% DPS - Dividend per share (*) 0.45 0.45 0.48 0.56 160% 140% Total Divi
Slide 26: Shareholders & Management Team
Shareholders & Management Team Norges Amiral Bank Gestion Treasury SeSa shares are listed in the MTA Italian Stock Exchange 2.996% 2.988% Shares Franklin 0.250% since October 23, 2013 (transition on MTA STAR Templeton Segment on February 16, 2015) 4.860% Total 15,494,590 outstanding ordinary shares
Slide 27: STAR segment governance requirements
STAR segment governance requirements Sesa is listed in the MTA STAR segment of Borsa Italiana Main STAR “status” requirements (Italian Stock Exchange) dedicated to mid-size companies with a capitalization lower than Euro 1.0 Bn, which Interim financial statements available to the public within 45 da
Slide 28: Annexes - Consolidated Financial Statements
Annexes - Consolidated Financial Statements Group Overview ICT Market Trend Group Results as of January 31th, 2018 Historical Financials Results (Track Record 2011-2018E) Governance and Investors Information Annexes (Consolidated Financial Statements) 28
Slide 29: Income Statement as of January 31, 2018
Income Statement as of January 31, 2018 01/31/2018 01/31/2017 Reclassified Income Statement (Euro/thousand) % % Change 2018/17 (9 months) (9 months) 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 806,9
Slide 30: Balance Sheet as of January 31, 2018
Balance Sheet as of January 31, 2018 Reclassified Balance Sheet (Euro/thousand) 01/31/2018 01/31/2017 04/30/2017 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 ass
Slide 31: Income Statement as of April 30, 2017
Income Statement as of April 30, 2017 Change Reclassified Income Statement (Euro/thousand) 04/30/2017 % 04/30/2016 % 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% 1,04
Slide 32: Balance Sheet as of April 30, 2017
Balance Sheet as of April 30, 2017 Change Reclassified Balance Sheet (Euro/thousand) 04/30/2017 04/30/2016 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 ass
Slide 33: 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