Sesa S.p.a. · MIL:SES
Sesa — H1 2020 Earnings Presentation
30 slides from Sesa's earnings presentation, Dec 19, 2019
Slide 1: Group Presentation - Half-Year Consolidated Results
Group Presentation HALF-YEAR CONSOLIDATED RESULTS AS OF OCTOBER 31, 2019 Board of Directors, December 19, 2019
Slide 2: Group Results as of October 31, 2019 (H1 2020)
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Results as of October 31, 2019 (H1 2020) Group Overview and IT Market Trend 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 2
Slide 3: H1 2020: strong improvement of profitability and cash flow generation
H1 2020: strong improvement of profitability and cash flow generation Revenues Ebitda1 Group EAT1 Group Adj2 EAT Net Financial Position1 Eu 770.2 Mn Eu 40.0 Mn Eu 16.0 Mn Eu 17.4 Mn Eu 1.9 Mn (net cash) H1 2020 (+18.8% Y/Y) (+32.8% Y/Y) (+33.4% Y/Y) (+35.4% Y/Y) Eu 14.8 Mn (net cash) (May-Oct Gross
Slide 4: H1 2020 Group Results by Segment
H1 2020 Group Results by Segment Group Revenues Eu Mn (*) EBITDA1 Eu Mn Net profit Eu Mn (**) Revenues by Segment (*) 1.2% 0.1% +18.8% +32.8% +32.1% 17.2% 22.6% H1 2020 H1 2020 H1 2020 Oct 31 Oct 31 770.2 40.0 18.1 2016 2019 800 30 30.1 15 77.3% 4.7 81.6% 648.2 177.6 +40% 14 13.7 15.8 2.7% 700 24.4
Slide 5: H1 2020 and FY 2019 Group Income Statement by segment
H1 2020 and FY 2019 Group Income Statement by segment H1 2020 as of October 31, 20191 compared to H1 2019 Annual Results as of April 30, 2019 compared to FY 2018 Segment Information Six-month period as of October 31, 2019 Six-month period as of October 31, 2018 Segment Information Annual Results as
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% 8.1% 8.0% 6.3% 6.2% 6.7% 6.4% FY2014 - 5.5% 5.4% FY2020 Quarterly * Avera
Slide 7: Group Financial Results as of October 31, 2019
Group Financial Results as of October 31, 2019 Group Net Financial Position1 (NFP) (Eu Mn) Consolidated Shareholders Equity (Eu Mn)* +0.1 Mn H1 201/H1 19 +22.8 Mn H1 20/H1 19 H1 2020 Consolidated NFP +12.9 Mn H1 201/H1 19 +16.6 Mn FY 19/FY 18 equal to Eu 14.8 Mn (Gross of IFRS 16 adoption) from a 6.
Slide 8: External Growth to boost Group Development
External Growth to boost Group Development Group 2016-2019 M&A - around Eu 60 Mn over last 3 Year focused on valued added areas of IT External Growth to support Group strategy and boost Group valued-added Bus Target Overview Investment rationale Yearly Financial Contribution1 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 - Ebitda ~ 25% annual growth rate - Ebitda margin over 5% improving by 40 basis point Y/Y (20 basis point from IFRS 16 adoption) - Group EAT >20% annual growth rate - Net Financial Debt at Year End (April 30, 2020) in line
Slide 10: Group Overview and IT Market Trend
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Results as of October 31, 2019 (H1 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 Consolidated revenues of Eu 1.55 Bn1 and and solutions provider about 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 Long term partnerships Growth since 1973 since 2011 • New IT Vendors partnerships and major IT • Strategic partner of Global IT Vendors Revenues CAGR 2011-2019 (“IT Titans”), in the most innovative trends
Slide 13: Continuous and Sustainable Growth Since 90s
Continuous and Sustainable Growth Since 90s 1,821(E) 1,551 Digital partner of main IT Global Continuous growth over-performing Vendors (IT Titans1)* 1,363 the reference IT Italian market 1,271 1,230 IT service and solution provider 1,060 for Italian SMEs and Enterprises 948 832 812 747 Focus on ente
Slide 14: Leadership in Italian VAD Market
Leadership in Italian VAD Market Leadership in Italian VAD market, with 46.5%* market share. Total VAD Revenues and Other 2019 Italian total VAD market share Income of Eu 1,301 Mn as of April 30, 2019 (CAGR 2011-2019 +8.7%) 50% 46.5%* 40% Customer base of over 13,000 BPs (Software Houses, System Int
Slide 15: Digital and Innovation Partner for Italian SMEs & Enterprises
Digital and Innovation Partner for Italian SMEs & Enterprises VAR Group is a leading Italian SSI revenues reached Eu Innovation partner for Italian 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 SMEs & Enterprises w
Slide 16: Human Capital and Social Responsibility
Human Capital and Social Responsibility 2,200(E) Human capital development as strategic driver of Group sustainable long-term growth 1,875 1,642 Recruitment Programs Training Programs Welfare Programs Social Responsibility HR CAGR 2011-19 +11.8% Human Capital of over Training and education Corporate
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 CAGR 2015-2023E +2.63% 4500 CAGR 2019-2021E +2.85% 20,943 21,625 22,380 4,003 20,315 +3.3% +3.5% 3,889 19,766 +3.1% 3,784 +3.0% 19,270 +2.8% 4000 3,683 +2.8% 18,817 +2.6% 3,527 +2.7% 20000
Slide 18: 2011-2020E Financial Results
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Results as of October 31, 2019 (H1 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 92.0(E) 1,821(E) 1,551 +17.4% 74.3 +23.7% 1,363 Y/Y 63.1 1,230 1,271 57.9 Y/Y 54.0 1,060 EBITDA (Eu 49.5 51.6 Revenues ** 948 Current 44.2 Current 747 812 832 Consensus Mn, % on 41.3 (Eu Mn) 34.4 Consensus revenues) CAGR + 10.4% CAGR + 11.6% Apr 3
Slide 20: Group Annual Financial Results 2011-2020E
Group Annual Financial Results 2011-2020E Consolidated Shareholders Equity* (Eu Mn) Group Net Financial Position (Eu Mn) Net Financial Position (net liquidity) equal to Eu 41.8 53.5 Mn as of April 30, 2019 266.5(E) compared to Eu 54.7 as of April 30, 2018, reflecting 232.6 annual investments in 216.
Slide 21: Governance and Investors Information
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Results as of October 31, 2019 (H1 2020) Group Overview and IT Market Trend 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 21
Slide 22: Key Investor Information
Key Investor Information Sesa (Euro) 2015 2016 2017 2018 2019 H1 2020 Sesa Stock Total Return (3) MTA - MTA - MTA - MTA - MTA - MTA - Stock Market (1) 404.2% Star Star Star Star Star Star 400% Stock market price 16.34 15.40 23.60 26.30 27.75 39.90 350% DPS - Dividend per share (*) 0.45 0.48 0.56 0.6
Slide 23: Sesa Shareholders & Management Team
Sesa Shareholders & Management Team Anima SGR S.p.A. Treasury Shares 4.998% Sesa shares are listed in the MTA Italian Stock Exchange since October 23, 0.330% 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 24: 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 , Interim financial statements available to the public within 45 days from the Quarter 1 compliant with t
Slide 25: Annexes Financial Statements
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Results as of October 31, 2019 (H1 2020) Group Overview and IT Market Trend 2011-2020E Financial Results Governance and Investors Information Annexes Financial Statements 25
Slide 26: Income Statement as of October 31, 2019 as reported
Income Statement as of October 31, 2019 as reported Reclassified Income Statement (Euro/thousand) H1 Oct 31 2019 % H1 Oct 31 2018 % H1 Oct 31 2017 % Change 2019/18 Revenues 764,960 643,770 560,557 18.8% Other income 5,242 4,438 4,355 18.1% Total Revenues and Other Income 770,202 100.0% 648,208 100.0
Slide 27: Balance Sheet as of October 31, 2019 as reported
Balance Sheet as of October 31, 2019 as reported Reclassified Balance Sheet (Euro/thousand) H1 Oct 31 2019 H1 Oct 31 2018 H1 Oct 31 2017 Change 2019/18 Intangible assets 63,123 45,801 23,163 17,322 Property, plant and equipment 73,091 55,517 51,819 17,574 Investments valued at equity 11,263 8,339 8,
Slide 28: Income Statement as of April 30, 2019 as reported
Income Statement as of April 30, 2019 as reported Reclassified Income Statement (Euro/thousand) April 30 2019 % April 30 2018 % April 30 2017 % Change 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 29: Balance Sheet as of April 30, 2019 as reported
Balance Sheet as of April 30, 2019 as reported Reclassified Balance Sheet (Euro/thousand) April 30 2019 April 30 2018 April 30 2017 Change 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 30: 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