Slide 1: Q1 2022 Results Presentation
© esprinet’ enabling your tech experience Q1 2022 Results Presentation May 10, 2022
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: Q1 2022 Performance
@ esprinet’ enabling your tech experience Q1 2022 Performance
Slide 4: Q1 2022 highlights and ROCE
Q1 2022 P&L performance is compared with a very positive first The results of constant and consistent discipline in balance sheet quarter 2021: management: I. Sales to 1,139 M€ (-2% compared to Q1 2021) • Cash Cycle closes at 13 days, in line with Q4 21 and +8 days ▪ Advanced Solutions up to 223 M€
Slide 5: Q1 2022 P&L performance
• Significant boost to gross profit margin, at 5.05% compared to 4.81% of Q1 (M/€) Q1 2022 Q1 2021 Var. % 2021 coming from increased volumes of high gross profit margin business lines; • The high-margin product categories, in line with the Group's strategy, Sales from contracts with customers 1,139.
Slide 6: Sales by country, customer type and segment
Esprinet Market(*) Esprinet Market(*) Esprinet Market(*) Retailers & 690 M€ Italy -6% -5% 579 M€ IT Clients -12% -11% 483 M€ 0% -9% E-tailers Consumer 416 M€ Spain 3% -2% 404 M€ 18% -1% 724 M€ IT Resellers 0% 2% Electronics 23 M€ Portugal 35% 11% Advanced 8% 8% 223 M€ Solutions 10 M€ Other (-%) -68
Slide 7: Net Invested Capital and financial position
(M/€) 31/03/2022 31/03/2021 31/12/2021 • Net Invested Capital as of March 31, 2022 stands at 485.9 M€ and is covered by: • Shareholders’ equity, including non-controlling interests. for Fixed Assets 139.9 137.9 137.7 396.7 M€ (399.1 M€ as of March 31, 2021); Operating Net Working Capital 257.7 235.1
Slide 8: Working Capital Metrics 4-qtr average
Working Capital Metrics 4-qtr average 80 40 70 34 35 32 32 31 30 29 60 28 27 28 30 27 26 50 23 25 20 40 20 70 70 72 69 68 68 66 66 62 62 12 30 57 56 57 58 58 59 13 13 13 15 53 55 54 55 52 52 51 52 51 48 49 48 48 47 45 47 45 46 44 20 43 42 3937 9 4039 42 39 39 10 37 38 38 36 35 35 35 35 37 38 37 38 3
Slide 9: Working Capital Metrics quarter-end
Working Capital Metrics quarter-end 90 50 43 44 80 42 40 39 40 37 33 70 33 30 29 29 60 25 20 50 15 16 16 85 14 40 82 77 76 10 68 70 6 65 66 30 60 60 61 59 60 61 57 54 55 57 54 52 56 58 55 2 57 52 52 51 52 50 51 51 0 49 48 -2 43 45 45 20 41 40 40 41 40 40 4041 40 39 41 39 39 38 37 39 36 35 34 34 36 3
Slide 10: ROCE Evolution Up To Q1 2022
ROCE Evolution Up To Q1 2022 30,0% 25,0% 25.1% 23.2% 20.5% 20,0% 19.7% 17.6% 15.7% 15.8% 16.2% 15.2% 15,0% 14.0% 11.4% 14.4% 13.1% 9.8% 10.9% 10,0% 9.4% 8.2% 11.6% 8.5% 7.7% 8.1% 8.4% 8.6% 8.6% 7.6% 7.0% 8.3% 7.9% 8.0% 7.6% 7.1% 7.2% 6.7% 7.1% 5,0% 0,0% 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q
Slide 11: Strategy & Execution
Strategy & Execution 11
Slide 12: Capital employed optimization and profitability focus
BEING CAPITAL EMPLOYED OPTIMIZATION A PREREQUISITE. THE FOCUS IS ON PROFITABILITY IMPROVEMENT • Customer satisfaction: more differentiation and margins • Leveraging a global cross-industry macro trend • Product mix: focus on Advanced Solutions and own brands • Getting a bigger portion of the value i
Slide 13: Business model revolution, Target 2024 Adj. EBITDA
• A business model revolution moving into a much higher margin space paving the way. giving the intrinsic structure of the rental program. to CAGR 15% future massive profitability improvements • Target 2024: increase by roughly 50% our Adj. EBITDA to more than 125 M€ (CAGR 15%) • Capital employed op
Slide 14: Macro environment: Covid policy, inflation, Russia-Ukraine
China continues to defend its zero-tolerance Covid policy, saying it is saving lives It is now clear that inflation linked to the effects of the pandemic is fading, while more despite the impacts on the country's growth and disruptions to global supply chains structural inflation is taking hold. The
Slide 15: Southern Europe market and Advanced Solutions
The distribution market in southern Europe(*) has almost reached the results of the In April the program was launched in Spain. first quarter of 2021, despite that it was a record quarter in terms of growth (+ 20% vs Q1 2020) and despite the further disruption related to the geopolitical scenario. O
Slide 16: Cellularline
@ esprinet’ enabling your tech experience Cellularline
Slide 17: Non-binding letter of intent to Cellularline
Esprinet submits to the BoD of Cellularline The price indicated by Esprinet in the Letter of Intent - to The Letter of Intent requires access to certain information on May 6, 2022 be considered non-binding - is equal to necessary for carrying out a limited confirmatory due a non-binding letter of in
Slide 18: Outlook 2022
Outlook 2022 18
Slide 19: Outlook drivers
Geopolitical instability Digital Innovation Shortage and supply chain constraints Government stimulus and private savings Inflationary pressure Cybersecurity 19
Slide 20: Outlook 2022
❑ The Group remains vigilant to navigate economic and geopolitical instability, although the Group does not have any business impact in the Russia-Ukraine conflict zone, nor does Esprinet procure substantial parts of its purchases from suppliers based in that area; ❑ The Group remains also attentive
Slide 21: @ esprinet’
@ esprinet’ enabling your tech experience
Slide 22: Upcoming events and conferences
TP ICAP Midcap Conference May 12, 2022 organized by TP ICAP Midcap Italian Investment Conference 2022 May 17, 2022 organized by Unicredit & Kepler Cheuvreux Mid & Small Virtual 2022 June 28, 2022 organized by Virgilio IR Board of Directors September 6, 2022 Approval of the Additional Financial Infor
Slide 23: Thank you
Thank you GRAZIE + GRACIAS - OBRIGADO« DANKE « MERCI « ZA} « iff! « RR © esprinet’ enabling your tech experience
Slide 24: Annex
@ esprinet’ enabling your tech experience
Slide 25: Strategy & Long term targets
Strategy & Long term targets 25
Slide 26: IFRS15 and other adjustment
IFRS15 and other adjustment (147) M€ in 2021. (75) M€ in 2020 26
Slide 27: Structural change of the business model
AFTER 20 YEARS FROM THE BIRTH OF ESPRINET. THE GROUP LAUNCHES A STRUCTURAL CHANGE OF THE BUSINESS MODEL WITH THE AIM IN THE NEXT DECADE OF ADDING TO THE DISTRIBUTION BUSINESS A NEW «FULL SERVICE PROVIDER» MODEL WITH SIGNIFICANTLY HIGHER ADDED VALUE THAN THE TRADITIONAL ONE 27
Slide 28: Business model revolution, Target 2024 Adj. EBITDA
• A business model revolution moving into a much higher margin space paving the way. giving the intrinsic structure of the rental program. to CAGR 15% future massive profitability improvements • Target 2024: increase by roughly 50% our Adj. EBITDA to more than 125 M€ (CAGR 15%) • Capital employed op
Slide 29: Capital employed optimization and profitability focus
BEING CAPITAL EMPLOYED OPTIMIZATION A PREREQUISITE. THE FOCUS IS ON PROFITABILITY IMPROVEMENT • Customer satisfaction: more differentiation and margins • Leveraging a global cross-industry macro trend • Product mix: focus on Advanced Solutions and own brands • Getting a bigger portion of the value i
Slide 30: Focus on ESG
30 Focus on ESG @ esprinet’ enabling your tech experience | | | | BILLION LEADER IN New ESG TARGET soeevinw | 4 . 7 euro Sales | SOUTHERN EUROPE | ESG CENTRIC STRATEGY in the Remuneration Policy | (+4,4% vs 2020) | (Italy, Spain and Portugal) | | | | ENVIRONMENTAL | CLIMATE | PACKAGING LEEDPLATINUMC
Slide 31: The Company & The Industry
@ esprinet’ enabling your tech experience The Company & The Industry
Slide 32: +20 years in business, 3 geographies
Esprinet Group is an enabler of the tech ecosystem with a profound calling to social and environmental sustainability. To promote tech democracy and guide people and firms towards digitalisation. Esprinet offers European clients its expertise in advisory and cybersecurity. as well as a selection of
Slide 33: Company sales 2021 and share
SALES 2021 COMPANY SHARE (M/€) Esprinet 4,691 25.2% • • • Tech Data 3,510 18.8% • • • Ingram Micro 2,470 13.2% • • • Computer Gross 1,780 9.5% • Arrow ECS 1.018 5.5% • • Attiva 653 3.5% • MCR 590 3.2% • Datamatic 490 2.6% • Exclusive Networks 263 1.4% • CPCDI 252 1.4% • Inforpor 217 1.2% • Depau 208
Slide 34: Total market and distributor weight by channel
Total Market (A+B)(*) 10.4 6.0 17.2 33.6 12.5 46.1 A) Direct Channel & 1st Tier 1.6 2.3 11.9 15.9 11.5 27.4 B) 2nd Tier Distris (a+b+c) 8.8 3.6 5.3 17.7 1.0 18.6 2021 Weight Of Distris 84% 61% 31% 53% 8% 40% On Market(°) 20120Weight Of Distris On Market 98% 65% 31% 56% 8% 43% a) Professional Reselle
Slide 35: ICT distributor share of sales
20,0 60% 56% 18,0 53% 52% 50% 16,0 48% 50% 45% 14,0 40% 12,0 10,0 30% 8,0 20% 6,0 4,0 10% 2,0 0,0 0% 2017A 2018A 2019A 2020A 2021A 2022E Direct sales of ICT products (ex-white goods) ICT distributor sales Share in ICT products (ex-white goods) IDC figures for IT Clients - Advanced Solutions & Smartp
Slide 36: ICT distribution share growth and value to vendors and resellers
ICT Distribution share on total ICT addressable sales grew from 40.0% (2016) to 56.0% (2020) and is forecasted to grow furthermore (60.1% expected in 2021). • Reduction of distribution fixed cost • Buffering stock • Credit lines & Credit collection capabilities • Marketing capability • Need of an ag
Slide 37: Vendor programs, credit insurance and price adjustments
Provided by the vast majority of Vendors in which they Large and medium sized distributors routinely apply contracts assume the risk of inventory devaluation arising from with top-rated Credit Insurance Companies shielding the risk Vendors routinely operate with commercial programs that purchase lis
Slide 38: Governance
Governance 38
Slide 39: Our Vision, Mission & Values
Our Vision. Mission & Values Pe) esprinet enabling your tech experience OUR VISION OUR MISSION OUR VALUES a a BE THE KEY POINT OF hue MAKE URE ESSE CONTACT BETWEEN Ts ro) FOR PEOPLE AND FOR ORGANISATIONS MANUFACTURES, RESELLERS igi AND TECHNOLOGY USERS H Co) BRAVERY We want to create value for these
Slide 40: Board of Directors profiles
Maurizio Rota. was born in Alessandro Cattani. was Milan on 22 December 1957. born in Milan on 15 After early professional August 1963. After experience as Sales Supervisor completing his degree in for companies operating in the electronic engineering at Information Technology field. he Politecnico
Slide 41: Committee gender composition
4 Men 5 Women (* ) Giovanni Testa. Chief Operating Officer of Esprinet. is the fourth member of the committee 41
Slide 42: Code of Ethics and Organisation Model
The Code of Ethics applies to all The Esprinet Group wishes to This document. entitled “Organisation and Management Model activities carried out by or in the establish trade relations with its pursuant to “Legislative Decree 231/2001” (hereinafter called “the name and on the behalf of Esprinet vendo
Slide 43: STAR segment requirements
• High transparency. disclosure requirements and liquidity (free float of minimum 35%) Esprinet Spa listed in the STAR • Corporate Governance in line with international standards Segment* voluntarily adhere to and comply with strict requirements *The market segment of Borsa Italiana’s equity market
Slide 44: Italian Stock Exchange (PRT:IM)
ANALYST COVERAGE Italian Stock Exchange (PRT:IM) Number of shares: 50,93 million YTD Average volume of 396,519 shares per day (*) (*) Period: January 1 – December 31, 2021 44
Slide 45: Thank you
Thank you GRAZIE + GRACIAS - OBRIGADO« DANKE « MERCI « ZA} « iff! « RR © esprinet’ enabling your tech experience