Slide 1: Group Presentation First Quarter 2020 Results
Group Presentation First Quarter 2020 Results Board of Directors, September 12, 2019
Slide 2: Group Results as of July 31, 2019 (Q1 2020)
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Results as of July 31, 2019 (Q1 2020) Group Overview and IT Market Trend 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 2
Slide 3: Q1 2020: strong improvement of profitability and cash flow generation
Q1 2020: strong improvement of profitability and cash flow generation Revenues Ebitda1 Group EAT1 Group Adj2 EAT Net Financial Position1 Eu 440.1 Mn Eu 21.8 Mn Eu 9.1 Mn Eu 9.8 Mn Eu 1.4 Mn (net cash) vs Eu 1.1 Q1 2020 (+25.9% YoY) (+38.8% YoY) (+42.0% YoY) (+40.9% YoY) Mn of net debt Y/Y (May-Jul 2
Slide 4: Q1 2020 Group Results by Segment
Q1 2020 Group Results by Segment Group Revenues Eu Mn (*) EBITDA1 Eu Mn Net profit Eu Mn (**) Revenues by Segment (*) 1.1% 1.0% 17.0% +25.9% +38.8% +41.2% 20.4% 440.1 21.8 10.2 Jul 31 Jul 31 8.1 2.6 95.0 2016 2019 15.7 8.6% 2.7% 349.6 +22% 78.6% +16% +39% 7.2 81.9% 316.9 13.1 5.9 295.3 82.2 12.7 2.1
Slide 5: Q1 2020 and FY 2019 Group Income Statement by segment
Q1 2020 and FY 2019 Group Income Statement by segment Q1 2020 as of July 31, 20191 compared to Q1 2019 Annual Results as of April 30, 2019 compared to FY 2018 Segment Informations Three-month period as of July 31, 2019 Three-month period as of July 31, 2018 Segment Informations Annual Results as of
Slide 6: NWC and NFP trend 2014-2020 by Quarter
NWC and NFP trend 2014-2020 by Quarter Higher Efficiency in NWC management 17.3% 15.7% 14.6% 13.3% 13.3% 12.8% 12.7% 12.6% 11.7% 11.6% 12.0% 11.2% 10.5% 10.9% 10.7% 11.1% 10.2% 10.0% 10.3% 9.4% 9.2% 9.4% NWC/Revenues 7.4% 7.3% 6.3% 6.2% 8.1% 8.0% 6.7% 5.5% 5.4% FY2014 - FY2019 Quarterly * 2Q 2Q 1Q 2
Slide 7: Group Financial Results as of July 31, 2019
Group Financial Results as of July 31, 2019 Group Net Financial Position1 (NFP) (Eu Mn) Consolidated Shareholders Equity (Eu Mn)* +2.5 Mn Q1 20/Q1 19 +23.3 Mn Q1 20/Q1 19 +15.1 Mn Q1 20/Q1 19Y1 +16.6 Mn FY 19/FY 18 12.7 Q1 2020 Consolidated NFP 240.4 improved by Eu 1.8 Mn (net of 6.6 232.6 Ifrs 16 a
Slide 8: External Growth to boost Group Development
External Growth to boost Group Development External Growth to support Group strategy Group 2016-2019 M&A - around Eu 50 Mn over last 3 Year focused on valued added areas of IT and boost Group valued-added BUs Target Overview Investment rationale Yearly Financial Contribution Long-term commitment of
Slide 9: Group Guidelines for the three-year period 2020-2022
Group Guidelines for the three-year period 2020-2022 Outlook for the FY 2020: Based on strong performance in Q1 2020, profitability outlook for the FY 2020 improved from a growth equal to 10% Y/Y to a growth ~ 20% Y/Y, targeting in FY 2020 the FY 2021 current analysts consensus Annual Ebitda margin
Slide 10: Group Results as of July 31, 2019 (Q1 2020)
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Results as of July 31, 2019 (Q1 2020) Group Overview and IT Market Trend 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 10
Slide 11: Group Structure and Market Position
Group Structure and Market Position SeSa Group is a leading Italian IT services and Consolidated revenues of Eu 1.55 Bn1 and about solutions provider 2,000 employees1 SeSa Group is the Italian gateway to the digital technology • Key player to drive the digital transformation to the Italian economy a
Slide 12: Business Model and Investment Case
Business Model and Investment Case Continuous and Sustainable Double Digit Annual Track Record since 2011 Long term partnerships Growth since 1973 • New IT Vendors partnerships and major IT • Strategic partner of Global IT Vendors Revenues CAGR 2011-2019 trends over-performing Italian market (“IT Ti
Slide 13: Continuous and Sustainable Growth Since 90s
Continuous and Sustainable Growth Since 90s 1,721(E) Digital partner of main IT Global 1,551 Vendors (IT Titans1)* Continuous growth over-performing the 1,363 reference IT Italian market 1,271 IT service and solution provider for 1,230 Italian SMEs and Enterprises 1,060 948 832 Focus on enterprise s
Slide 14: Leadership in Italian VAD Market
Leadership in Italian VAD Market 2018 Italian total VAD market share Leadership in Italian VAD market, with 45.2%* market share. Total VAD Revenues and Other Income of Eu 1,301 Mn as of April 30, 2019 (CAGR 2011-2019 +8.7%) 50% 45.2%* 40% Customer base of over 13,000 BPs (Software Houses, System Int
Slide 15: IT Digital and Innovation Partner for Italian SMEs & Enterprises
IT Digital and Innovation Partner for Italian SMEs & Enterprises VAR Group is a leading Italian SSI revenues reached Eu IT innovation partner for Hybrid Cloud services to Offering of ERP, Business and About 30 M&A over the last Software and System 342.8 Mn as of April 30, 2019 Italian SMEs & Enterpr
Slide 16: Human Capital and Social Responsibility
Human Capital and Social Responsibility Human capital development as strategic driver of Group sustainable long-term growth 2,0001 Recruitment Programs Welfare Programs Social Responsibility 1,642 Training Programs Human Capital of 2,000 Training and education Corporate welfare Commitment to qualifi
Slide 17: IT Italian and Global Market trend
IT Italian and Global Market trend IT Italian market (2013-21E) in Eu Mn Global ICT market (2015-21) in USD Bn 4500 CAGR 2019-2021E +2.75% CAGR 2019-2021E +2.8% 4,003 20,903 3,889 20,315 +2.9% 3,784 +3.0% 19,766 +2.8% 4000 +2.8% 19,019 18,616 18,817 19,270 3,683 +2.7% 20000 18,470 +2.6% 3,527 -4.1%
Slide 18: Group Results as of July 31, 2019 (Q1 2020)
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Results as of July 31, 2019 (Q1 2020) Group Overview and IT Market Trend 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statement 18
Slide 19: Group Annual Economic Results 2011-2020E as reported
Group Annual Economic Results 2011-2020E as reported 1,721(E) 84,9(E) 1,551 74.3 1,363 +11.0% +14.2% 1,230 1,271 YoY 63.1 57.9 YoY 54.0 1,060 49.5 51.6 948 EBITDA (Eu 44.2 Revenues ** 747 812 832 Current 41.3 Current Consensus Mn, % on 34.4 (Eu Mn) Consensus revenues) CAGR + 9.7% CAGR + 10.6% Apr 30
Slide 20: Adjusted Group Annual Economic Results 2011-2020E
Adjusted1 Group Annual Economic Results 2011-2020E 60.1(E) 34.0(E) 52.7 29.3 +15.9% 46.3 +14.1% 43.7 44.8 26.9 YoY 39.9 41.4 YoY Net profit 24.0 25.0 34.7 35.0 attributable to 20.7 21.8 EBIT (Eu Mn, Current 19.9 Current % on revenues) 25.3 Consensus the Group (Eu 16.8 Consensus Mn, % on revenues) 11
Slide 21: Group Annual Financial Results 2011-2020E
Group Annual Financial Results 2011-2020E Consolidated Shareholders Equity* (Eu Mn) Group Net Financial Position (Eu Mn) Active Net Financial Position (net liquidity) equal to Eu 41.8 Mn as of April 30, 2019 265.7(E) 53.5 compared to Eu 54.7 as of April 30, 2018, reflecting higher annual investments
Slide 22: Group Results as of July 31, 2019 (Q1 2020)
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Results as of July 31, 2019 (Q1 2020) Group Overview and IT Market Trend 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 22
Slide 23: Key Investor Information
Key Investor Information Q1 Sesa (Euro) 2015 2016 2017 2018 2019 2020 Sesa Stock Total Return (3) MTA - MTA - MTA - MTA - MTA - Stock Market (1) MTA 300% Star Star Star Star Star 260.9% Stock market price 16.34 15.40 23.60 26.30 27.75 35.65 250% DPS - Dividend per share (*) 0.45 0.48 0.56 0.60 0.63
Slide 24: Sesa Shareholders & Management Team
Sesa Shareholders & Management Team Anima SGR Treasury S.p.A. Shares Sesa shares are listed in the MTA Italian Stock Exchange since October 23, 5.011% 0.424% 2013 (transition on MTA STAR Segment on February 16, 2015). Total 15,494,590 outstanding ordinary shares The share capital of the holding comp
Slide 25: MTA Star Italian Stock Exchange: Governance Requirements
MTA Star Italian Stock Exchange: Governance Requirements Main STAR “status” requirements Sesa is listed in the MTA STAR of Borsa Italiana (Italian Stock Exchange) dedicated to mid-size companies , compliant with the Interim financial statements available to the public within 45 days from the Quarter
Slide 26: Group Results as of July 31, 2019 (Q1 2020)
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Results as of July 31, 2019 (Q1 2020) Group Overview and IT Market Trend 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 26
Slide 27: Income Statement as of July 31, 2019 as reported
Income Statement as of July 31, 2019 as reported Change Reclassified Income Statement (Euro/thousand) Q1 Jul 31 2019 % Q1 Jul 31 2018 % Q1 Jul 31 2017 % 2020/19 Revenues 437,751 347,715 314,685 25.9% Other income 2,399 1,927 2,184 24.5% Total Revenues and Other Income 440,150 100.0% 349,642 100.0% 3
Slide 28: Balance Sheet as of July 31, 2019 as reported
Balance Sheet as of July 31, 2019 as reported Change Reclassified Balance Sheet (Euro/thousand) Q1 Jul 31 2019 Q1 Jul 31 2018 Q1 Jul 31 2017 2020/19 Intangible assets 76,263 43,727 23,281 32,536 Property, plant and equipment 59,779 56,089 51,198 3,690 Investments valued at equity 10,338 8,506 8,960
Slide 29: Income Statement as of April 30, 2019 as reported
Income Statement as of April 30, 2019 as reported Change Reclassified Income Statement (Euro/thousand) April 30 2019 % April 30 2018 % April 30 2017 % 2019/18 Revenues 1,539,854 1,350,900 1,260,275 14.0% Other income 10,751 12,135 11,194 -11.4% Total Revenues and Other Income 1,550,605 100.0% 1,363,
Slide 30: Balance Sheet as of April 30, 2019 as reported
Balance Sheet as of April 30, 2019 as reported Change Reclassified Balance Sheet (Euro/thousand) April 30 2019 April 30 2018 April 30 2017 2019/18 Intangible assets 54,001 39,083 21,848 14,918 Property, plant and equipment 57,771 55,221 49,736 2,550 Investments valued at equity 10,030 9,179 8,835 85
Slide 31: Disclaimer
Disclaimer This document has been prepared by Sesa SpA (“SeSa” or the “Company”) or 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 other