Dhh S.p.a · MIL:DHH
Dhh — Investor Presentation (October 2023)
28 slides from Dhh's investor presentation, October 2023
Slide 1: The Internet Platform of Southern Europe
Ball The Internet Platform of Southern Europe Investor Presentation — October 2023
Slide 2: About us
About us DHH S.p.A. (DHH”) is a leading technology group focused on the provisioning of integrated cloud & internet access services to around 120.000 corporate and professional customers in Southern Europe — the so-called “Adriatic Sea area’, i.e., a geographic area where expected growth rates are h
Slide 3: Core Business and Business model
ABOUT US Core Business and Business model The group is mostly focused on 4 main business lines: Infrastructure as a service (laaS) a Cloud computing products — i.e. Cloud Server, Virtual Private Cloud — to run large scale web infrastructure and to increase the calculation performance in Al, Machine
Slide 4: Market Opportunity
ABOUT US Market Opportunity —— Cloud computing and web-hosting services represent essential tools for innovation, given the easy, flexible and fast implementation of software and application without the burden of purchasing and maintaining physical and network infrastructure. These two sectors are s
Slide 5: Geographical Opportunity
ABOUT US DHL Geographical Opportunity Digital markets in Southern Europe are DHH, gaining a leadership position in These “unusual geographies” can also be one step behind with regard to internet these markets would like to take seen as experimental markets to test use and are expected to post higher
Slide 6: Net sales and Adjusted EBITDA growth
33,1 28,6 19,6 10,7 9,2 9,0 6,8 7,2 5,3 6,0 3,5 3,9 1,8 0,0 0,4 0,5 0,5 0,5 July 2015 2015 2016 2017 2018 2019 2020 2021 2022 LTM 2023 Net sales Adj. EBITDA (million EUR)
Slide 7: Competitors
A HISTORY OF «M&A DRIVEN» GROWTH BHlHl Competitors Competitive landscape in the cloud computing and hosting business: * Globally, the market of cloud Global cloud computing players computing services is dominated a by very well-known Tech Giants such as AWS, Microsoft Azure, Alibaba Cloud, IBM Cloud
Slide 8: DHH Competitive Advantages
A HISTORY OF «M&A DRIVEN» GROWTH peel DHH Competitive Advantages Thanks to the choice to act as an infrastructure-based player (high capital invested), DHH has higher operating margins vs. its competitors and can thus offer very competitive pricing to its clients Flexibility and Customization Thanks
Slide 9: Historical milestones
Historical milestones pul Since its foundation DHH has finalized several investments while successfully IPOing on AIM Italia (now Euronext Growth Milan - EGM) stock market: Oct 2015 Nov 2015 Jul 2016 Sept 2016 Mar 2017 May 2017 May 2018 Oct 2018 Apr 2019 May 2019 Dec 2019 Jun 2020 Acquisition of Kla
Slide 10: Historical milestones
HISTORICAL MILESTONES Mar 2021 Apr 2021 May 2021 Jul 2021 Aug 2021 Nov 2021 Nov 2021 Jul 2022 Dec 2022 Jan 2023 Mar 2023 Sept 2023 . . pen Acquisition of Optima Hosting, Croatian and Bosnian web hosting provider Acquisition of MondoServer, a cloud computing provider in the South of Italy, by Seeweb
Slide 11: Group structure
Group structure pul DHH unique approach is built around the concept of an ecosystem with a common theme in which tech-entrepreneurs can innovate, share best practices, build together and grow as part of the group of like-minded people B An ecosystem of independent businesses. Each acquired company s
Slide 12: Group structure
GROUP STRUCTURE DHHI DHH SpA wo 8 Tophost > fian, BETEBAcome Bseeweb : evolink connesr wien DHH Switzerland SA Seeweb Srl Tophost Srl Evolink AD Connesi SpA EGE switzeriana— 100% J} ttaty-100% BE tay-t00% Hm Bulgaria~6o% J J taty-e7,s0%+ STUDIOAW=3 protesonane web hosting ste = GI domovanie.com @) f
Slide 13: Subsidiary key indicators and net sales by geography
GROUP STRUCTURE DH Subsidiary key indicators Net Sales breakdown by geography in 1H23 100% _ Switzerland Serbia 90% 80% Bulgaria \ 70% 60% 50% Croatia 40% 30% Slovenia 20% Italy 10% 0% Seeweb Tophost* Webtasy Plus Sysbee Artera_ mCloud Evolink Connesi Warian** Hosting Grupa “PaaS slaaS Internet Acce
Slide 14: Group structure: holding and subsidiaries
GROUP STRUCTURE DHHI pul DHH S.p.A.- The holding company acting as a governing entity providing business and administrative support to portfolio companies Bseeweb Bsysbee DHH Switzerland SA- Owner of the brand Artera, part of DHH since May 2017, the Swiss company provides high-end services, mainly a
Slide 15: Group structure: Croatian and Slovenian businesses
GROUP STRUCTURE DHHI STUDIO<W=3 OPTIMA HOSTING 9 Tophost FI domovanjece :DOMENCA SIESHELL Plus Hosting Grupa d.o.o. — Plus Hosting Grupa d.o.o. (until April 13th, 2022 named DHH d.0.0.) established in 2001 as IT Plus d.o.o. and later renamed to Plus hosting d.o.0., the company joined DHH in 2015. Fo
Slide 16: Group structure: Connesi, Evolink, Warian
GROUP STRUCTURE DHHI connesr evolink @) wa ripn Connesi SpA-— Independent provider in the field of Internet Access (via optical fiber - both owned and leased - and fixed wireless network), VOIP, and Cloud Computing, active mainly in Umbria and also present in other Italian regions (e.g. Tuscany and
Slide 17: Growth strategy: growth by acquisitions
Growth strategy pul 1. Growth by acquisitions: Growing by acquisition is a paramount cornerstone of DHH strategy also thank to its sound cash flow generation. Creating an ecosystem of independent businesses, that means each company remains independent with its own brand, organization, and management
Slide 18: Growth strategy: building value in M&A
GROWTH STRATEGY DHL 2. Building value in M&A through “expansion deals”: DHH creates value executing a sound M&A strategy, which aims at substantially increasing the intrinsic value of acquired companies in the very short term after the completion of the deal. On expansion deals, this strategy is bas
Slide 19: Growth strategy: M&A returns on acquired companies
GROWTH STRATEGY DHHI Thanks to its well proven expertise in business model pivoting and intragroup synergies exploitation, DHH is capable of delivering material extra-returns on the M&A deals it finalizes Taking as examples the companies acquired in the past and now fully owned, we can calculate tha
Slide 20: Growth strategy: organic growth
GROWTH STRATEGY pen 3. Organic growth: DHH improves the organic growth of its portfolio companies working on marketing and product innovation: Q Increasing ARPU, through the shift towards premium products - Group strategy will be addressed to expand its value proposition, trying to provide customers
Slide 21: Key financials
Key financials pul Fast-growing company with sound margins and operating cash flow * Business has been steadily growing at double digit rate since foundation from €4mn turnover as of FY16 to roughly €30m in FY22, thanks to both its vigorous M&A driven growth strategies, and to the overall improvemen
Slide 22: Key financials: net sales by country and segment
KEY FINANCIALS Net sales by country Italy 11.138.200 7.158.036 Slovenia 1.460.204 1.253.898 Croatia 1.515.150 1.386.861 Serbia 387.789 340.707 Switzerland 418.672 408.448 Bulgaria 1.600.433 1.513.387 Total 16.520.449 12,061.338 Organic growth amounts to ca. 10%. Growth in Bulgaria is due to the cons
Slide 23: Key financials: Net Financial Position
KEY FINANCIALS Net Financial Position peel A. Cash B. Cash equivalents C. Other current financial assets D. LIQUIDITY (A) + (B) + (C) E. Current financial liabilities F. Current part of non-current borrowing G. CURRENT FINANCIAL DEBT (E) + (F) H. NET CURRENT FINANCIAL DEBT (G) - (D) |. Non-current f
Slide 24: Key financials: summary and research forecast
KEY FINANCIALS AND VALUE TRACK RESEARCH FORECAST DHH: Summary of financials EBITDA Margin 24,9% EBIT Margin 93% Net Margin 2,5% EBITDA Adjusted Margin 30,4% EBIT Adjusted Margin 16,3% Net Adjusted Margin 88% Labour Costs /Sales (19,0%) COGS / Sales (56,1%) ROE 3% ROICb.t. 1% Net Debt / Equity (x) 0,
Slide 25: Key people & shareholders' structure
Key people & shareholders’ structure publ Board of Directors Shares of Ownership Tamara Arduini CFO of DHH and CFO of Antonio Domenico Baldassarra (1.702.759 shares) Sseeweb 908 & Antonio Baldassarra CEO of DHH, Founder and CEO of Enrico Vona* (1.637.251 shares) scene a Matija Jekovec Giandomenico S
Slide 26: Stock performance and valuation relative to comparables
Stock performance and pen valuation relative to comparables At current €15,5 stock price, DHH has ca. € 76mn market capitalization which implies 7,8x EV/EBITDA and 16,4x EV/EBIT 2023E Based on 2023E-24E estimates provided by Value Track, DHH trades at double-digit discount vs. selected peers, i.e. m
Slide 27: Sum-up: why investing in DHH
Sum-up: why investing in DHH or Key points of DHH investment case + Nine independent and autonomous businesses under management, with around 120 thousand customers in seven promising countries: market leader in Croatia and Slovenia, among top players in Bosnia and Herzegovina, Bulgaria, Italy, Serbi
Slide 28: Stock details, financial calendar and contacts
STOCK DETAILS Listing Euronext Growth Milan Listing ISIN ordinary shares IT0005203622 Outstanding # of shares 4,9mn Market Cap ~ €76mn FINANCIAL CALENDAR November 24, 2023 BoD meeting reviewing the 3Q2023 CONTACTS Address via Caldera 21, 20153 Milan Phone +39 02 87365100 Email info@dhh. internationa