Sesa S.p.a. · MIL:SES
Sesa — FY2019 Earnings Presentation
33 slides from Sesa's earnings presentation, Jul 11, 2019
Slide 1: Group Presentation
Group Presentation ANNUAL REPORT AS OF APRIL 30, 2019 Board of Directors, July 11, 2019
Slide 2: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview IT Market Trend Group Results as of April 30, 2019 and Guidelines as of April 30, 2020 Historical Financials Results (Track Record 2011-2019) Governance and Investors Information Annexes (Consolida
Slide 3: Group Structure and market position
Group Structure and market position SeSa Group, is a leading Italian IT services and Consolidated revenues of over € 1.5 Bn1 and about solutions provider 2,000 employees2 SeSa, the Italian gateway to the digital technology • Key player to drive the digital transformation to the Italian economy • Tec
Slide 4: Business Model and Investment Case
Business Model and Investment Case Continuous and Long Term Track Record Long term partnerships Sustainable Growth Growth • Continuous and sustainable growth since • Strategic partner of Global IT Vendors (“IT 1973, leveraging on major IT trends and Revenues CAGR 2011-2019 Titans”), in the most inno
Slide 5: Continuous and Sustainable Growth Since 90s
Continuous and Sustainable Growth Since 90s Continuous and sustainable organic 1,551 growth over-performing the reference IT 1,363 Strategic partner and service Integrator of the IT Global Vendors (IT Titans1): Italian market 1,271 1,230 long term partnerships with a wide 2011-19 Revenues* CAGR 9.6%
Slide 6: Leadership in Italian VAD Market
Leadership in Italian VAD Market 2018 Italian VAD market share CGI leadership in Italian VAD market, with 45.2%* market share (compared with 43.8% in 2017). Total VAD Revenues and Other Income of Eu 1,301 Mn as of April 30, 2019 (CAGR 2011-2019 50% 45.2%* +8.7%) 40% Customer base of over 13,000 BPs
Slide 7: IT Innovation Partner for Italian SME & Enterprise
IT Innovation Partner for Italian SME & Enterprise 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 & Enterprises with cust
Slide 8: Human Capital and Competitive Advantages
Human Capital and Competitive Advantages Human capital: Human capital growth represents a strategic driver of Group’s growth (revenue and profitability thanks to a higher focus on added value IT services and IT consulting) 2,0001 Human Capital Training and certification Proprietary Datacenter Succes
Slide 9: 2011-2019 results and track record
2011-2019 results and track record Revenues Ebitda Consolidated EAT Group’s Adjusted EAT Revenues and Other Income Ebitda Consolidated Net profit1 Group’s Adjusted Net profit Eu 1.550.6 Mn Eu 74.3 Mn before non-recurring provisions2 Eu 33.4 Mn 12M FY Eu 32.5 Mn (+13.8% YoY) (+17.8% YoY) (+10.5% YoY)
Slide 10: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview IT Market Trend Group Results as of April 30, 2019 and Guidelines as of April 30, 2020 Historical Financials Results (Track Record 2011-2019) Governance and Investors Information Annexes (Consolida
Slide 11: Italian Digital Market 2013-2021E
Italian Digital Market 2013-2021E Italian Digital market trends Italian Digital market (2017-2020E) in Eu Mn CAGR 2018-2020E 3.1% 80000 74,523 The Italian Digital market grew by 2% in 2018. 72,286 +3.1% 70,106 +3.1% A 3.1% growth is expected in 2019 and 2020 +2.0% 68,722 70000 8,196 7,683 6,626 7,14
Slide 12: Italian IT Market 2013-2021E
Italian IT Market 2013-2021E Italian IT market trends IT Italian market (2013-2021E) in Eu Mn After a 3 year 2013-2015 declining period, the Italian IT CAGR 2015-2021E 2.3% 20,315 20,903 market grew by an average of 2% over 2016-2018 19,766 +2.9% 19,019 19,270 +2.8% 18,616 18,470 18,817 +2.6% period
Slide 13: Global ICT market trend 2015-2021E
Global ICT market trend 2015-2021E Global ICT market (2015-2021) in USD Bn Global IT market trends 4500 CAGR 2016-2021E 3.3% 4,003 3,889 3,784 +3.0% 4000 3,683 +2.8% 3,398 3,527 +4.5% +2.7% 3,387 +3.8% 3500 +0.3% Enterprise Software represents the most dynamic area of 1,488 1,443 1,463 1.7% global I
Slide 14: Focus on IT market trends
Focus on IT market trends Global IT Technology Evolution Value-Added Distribution Role System Integration Role • Global Major Vendors business model • Vendors require higher specialized • Customers IT spending driven by new IT consolidation distribution services to leverage the new trends: digital s
Slide 15: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview IT Market Trend Group Results as of April 30, 2019 and Guidelines as of April 30, 2020 Historical Financials Results (Track Record 2011-2019) Governance and Investors Information Annexes (Consolida
Slide 16: Group Annual Results as of April 30, 2019 by segments
Group Annul Results as of April 30, 2019 by segments Group Revenues Eu Mn (*) EBITDA Eu Mn Net profit Eu Mn (**) Revenues by Segment (*) 1.1% 1.0% 17.7% +13.8% +17.8% +10.5% 20.7% 1,550.6 Apr 30 Apr 30 1600 75 74.3 33.4 2017 2019 1500 1,363.0 342.8 70 30.2 81.2% 78.3% 1400 1,271.5 30 9.6 +18.5% 65 6
Slide 17: Group Results as of April 30, 2019
Group Results as of April 30, 2019 Annual Results as of April 30, 2019 YoY 3-Months (Q4) as of April 30, 2019 YoY Annual results as of April 2019 Segment Informations Annual Results as of April 30, 2019 Annual Results as of April 30, 2018 Segment Informations Three – month period as of April 30, 201
Slide 18: NWC and NFP annual average trend 2014-2019 by Quarter
NWC and NFP annual average trend 2014-2019 by Quarter Improvement in NWC management 20% 17.3% 18% 15.7% 16% 14.6% 13.3% 13.3% 12.8% 12.7% 12.6% 14% 11.7% 11.6% 12.0% 12% 11.2% 10.5% 10.9% 10.7% 11.1% 10.2% 10.0% 10.3% 10% 9.4% 9.2% 9.4% 7.4% 7.3% 8.1% 8.0% NWC/Revenues 8% 6.3% 6.2% 5.5% 6% 5.4% FY20
Slide 19: Group Financial Results
Group Financial Results as of April 30, 2019 Group Net Financial Position (NFP) (Eu Mn) Group Shareholders Equity (Eu Mn)* NFP as of April 30, 2019 active (net -23.6% +7.7% liquidity) for Eu 41.8 Mn, compared to 232.6 Eu 54.7 Mn as of April 30, 2018, Apr 30 2018 Apr 30 2019 reflecting higher Capex a
Slide 20: External Growth to boost Group's Development
External Growth to boost Group’s Development External Growth to support Group’s strategy Group 2016-2019 Main Acquisitions – around Eu 50 Mn over last 3 year focused in valued added areas of IT aiming at developing service solutions and valued-added areas of business Target Overview Investment ratio
Slide 21: Sesa Group Guidelines for the Full Year 2020
Sesa Group Guidelines for the Full Year 2020 Outlook for the Fiscal Year 2020: 10% growth rate in revenues and profitability under the following guidelines: To continue to invest in Human Capital and skills in high-growth IT segments such as Digital Security, Digital Cloud, Digital Transformation So
Slide 22: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview IT Market Trend Group Results as of April 30, 2019 and Guidelines as of April 30, 2020 Historical Financials Results (Track Record 2011-2019) Governance and Investors Information Annexes (Consolida
Slide 23: Group Annual Economic Results 2011-2019 as reported
Group Annual Economic Results 2011-2019 as reported 1,551 75 74.3 1550 1,363 +13.8% 63.1 1,230 1,271 65 1300 57.9 +17.8% 1,060 YoY 51.6 54.0 YoY 55 49.5 1050 948 44.2 747 812 832 EBITDA (Eu 45 41.3 Revenues ** 800 Mn, % on 34.4 (Eu Mn) revenues) 35 550 25 CAGR + 9.6% CAGR + 10.1% 300 15 5 50 Apr 30
Slide 24: Adjusted Group Annual Economic Results 2011-2019
Adjusted1 Group Annual Economic Results 2011-2019 35 55 52.7 46.3 30 29.3* +9.0% 43.7 44.8 +13.9% 26.9 45 39.9 41.4 YoY Net profit 25.0 YoY 25 24.0 34.7 35.0 attributable 21.8 EBIT 35 19.9 20.7 to the 20 (Eu Mn, % 25.3 16.8 on revenues) 25 Group (Eu Mn, % on 15 11.5 15 CAGR + 9.6% revenues) CAGR + 1
Slide 25: Group Annual Financial Results 2011-2019
Group Annual Financial Results 2011-2019 Group Shareholders Equity* (Eu Mn) Net Financial Position (Eu Mn) Active Net Financial Position (cash/net 60 liquidity) equal to Eu 41.8 232.6 53.5 Mn as of April 30, 2019 216.0 compared to Eu 54.7 as of 199.0 April 30, 2018, reflecting 205 40 annual investme
Slide 26: Agenda
Alessandro Fabbroni - Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview IT Market Trend Group Results as of April 30, 2019 and Guidelines as of April 30, 2020 Historical Financials Results (Track Record 2011-2019) Governance and Investors Information Annexes (Consolida
Slide 27: Key Investor Information
Key Investor Information Sesa (Euro) 2015 2016 2017 2018 2019 Sesa Stock Total Return (3) MTA - MTA - MTA - MTA - Stock Market (1) MTA Star Star Star Star Stock market price 16.34 15.40 23.60 26.30 27.75 250% 223.8% DPS - Dividend per share (*) 0.45 0.48 0.56 0.60 0.63 200% Total Dividend (Eu Mn) 7.
Slide 28: Sesa Shareholders & Management Team
Sesa Shareholders & Management Team Anima SGR Treasury S.p.A. Shares 5.011% 0.424% Sesa shares are listed in the MTA Italian Stock Exchange since October 23, 2013 (transition on MTA STAR Segment on February 16, 2015) Total 15,494,590 outstanding ordinary shares ITH S.p.A. Market 52.814% 41.751% The
Slide 29: STAR Segment Stock Exchange Governance Requirements
STAR Segment Stock Exchange Governance Requirements Main STAR “status” requirements Sesa is listed in the MTA STAR segment 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 wit
Slide 30: Annexes - Consolidated Financial Statements
Annexes - Consolidated Financial Statements Group Overview IT Market Trend Group Results as of April 30, 2019 and Guidelines as of April 30, 2020 Historical Financials Results (Track Record 2011-2019) Governance and Investors Information Annexes (Consolidated Financial Statements) 30
Slide 31: Income Statement as of April 30th, 2019 as reported
Income Statement as of April 30th, 2019 as reported Change Reclassified Income Statement (Euro/thousand) 04/30/2019 % 04/30/2018 % 04/30/2017 % 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% 1,363,035 100
Slide 32: Balance Sheet as of April 30th, 2019 as reported
Balance Sheet as of April 30th, 2019 as reported Change Reclassified Balance Sheet (Euro/thousand) 04/30/2019 04/30/2018 2019/18 Intangible assets 54,001 39,083 14,918 Property, plant and equipment 57,771 55,221 2,550 Investments valued at equity 10,030 9,179 851 Other non-current receivables and de
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 other