Sesa S.p.a. · MIL:SES
Sesa — IT Day Banca IMI 2018
34 slides from Sesa's conference presentation, Feb 21, 2018
Slide 1: Group Presentation
Group Presentation February 21st, 2018 – IT DAY BANCA IMI
Slide 2: Index
Index Milan, February 21st, 2018 Alessandro Fabbroni, SeSa Chief Executive Officer Conxi Palmero, SeSa IR Manager Group Overview ICT Market Trend Group Results as of October 31, 2017 Historical Financials Results (Track Record 2011-2018E) Governance and Investors Information Annexes
Slide 3: Group Organization
Group Organization SeSa Group is a leading Italian provider of value-added Information Technology (“IT”) solutions with total consolidated revenues equal to Eu 1,271.5 Mn (Fiscal Year as of April 30, 2017) and 1,500 employees. Group’s organization consists of 3 divisions: Corporate: Group’s directio
Slide 4: Business Model and Investment Case
Business Model and Investment Case Strategic partner of Global IT Vendors (“IT Titans”) for the Italian market (Cisco, DellEMC, HP, HPE, IBM, Lenovo, Lexmark, Microsoft, Oracle, Samsung), focusing on value-added segments (Software Enterprise, Networking, Server, Storage, Cloud) Continuous and sustai
Slide 5: Vision: Reference Strategic Partner and Service Integrator of the IT Global Vendors
Vision: Reference Strategic Partner and Service Integrator of the IT Global Vendors SeSa Group operates as strategic partner and Service Integrator of the IT Global Vendors with a successful relationship and long term partnerships with a wide Vendors’ base (among them major IT Titans*) The long-
Slide 6: Continuous growth since 90s
Continuous growth since 90s 9.3% Revenue CAGR* over 2011-17 period, mainly organic thanks to new distribution agreements 3.4% Revenue* growth in the 12M as of April 30, 2017 Continuous growth since ’90s over-performing the reference Italian market New trend setter Vendors (**) 1400 1,271 1,230
Slide 7: Leadership in Italian VAD Market
Leadership in Italian VAD Market CGI is leader in Italian VAD market, with a 43.3% market share in 2017. Total VAD revenues and other income of Eu 1,102.5 Mn as of April 30, 2017 (+1.9% YoY, 9% CAGR 2011-2017) Customer base of over 11,000 Software Houses, System Integrators and Resellers CGI i
Slide 8: IT strategic partner for Italian SME & Enterprise
IT strategic partner for Italian SME & Enterprise VAR Group is a Software and System Integrator (“SSI”) player focused on Italian Enterprise & SME segments (representing 32% of total Italian IT market with, Eu 5.9 Bn in 2016 – source Sirmi, 2017) BUSINESS TECHNOLOGY • Technology Hardware and SSI
Slide 9: Human Capital and Competitive advantages
Human Capital and Competitive advantages Human capital of 1,500 qualified people with professional skills in main innovative IT areas (data management, cloud, security, digital transformation, IoT). Recruiting (about 100 qualified new people in 2017), training and HR welfare programs also supported
Slide 10: Annual Financial Track Record 2011-2017
Annual Financial Track Record 2011-2017 Group Revenues and Other Income equal to Eu 1.271.5 Mn (+3.4% YoY) CAGR 2011-17 +9.3% Group Ebitda Eu 57.9 Mn (+7.2% YoY) CAGR 2011-17 +9.1% Ebitda Margin 4.55% up by 16 bp YoY Group Net Profit After Taxes before minority interest Eu 27.1 Mn CAGR 2011-17 +14.7
Slide 11: Index
Index Group Overview ICT Market Trend Group Results as of October 31, 2017 Historical Financials Results (Track Record 2011-2018E) Governance and Investors Information Annexes 1-4 (Consolidated Financial Statements) 11
Slide 12: Italian IT Market 2013-2018E by categories
Italian IT Market 2013-2018E by categories Reverse of the Italian IT market trend growing by 1.6% in 2016, after a 3% annual decrease over 2013-2015 period. 2017 expected growth equal to 1.8% Total market value equal to Eu 18.8 Bn in 2017 year with significant (32% of total demand) SME and Enter
Slide 13: Global ICT market trend
Global ICT market trend Global IT market (2015-2020) in Eu Bn(1) Global IT market trends 3500 CAGR 2.1% 3,363 Global spending on Security Solutions 3,268 embracing IT Services, Enterprise Software and 3,172 3,030 3,042 3,083 Data Center Infrastructure expected to 3000 accelerate over the next year
Slide 14: Focus on IT market trends
Focus on IT market trends GLOBAL KEY MARKET TRENDS SESA GROUP Focus on partnership with major Vendors (datacenter, Global Major Vendors business model transformation enterprise software, networking) habilitating the new IT trends and solutions for Italian SME and Enterprise, Global IT Vendors Fragme
Slide 15: Group Value Solutions
Group Value Solutions DATA MANAGEMENT • BIG DATA • ANALYTICS • COGNITIVE To support Italian SME and Enterprise in addressing market transformation on new technologies and business models (new digital trends) Offering of wider IT services and solutions portfolio for SME and Enterprise segments an
Slide 16: Index
Index Group Overview ICT Market Trend Group Results as of October 31, 2017 Historical Financials Results (Track Record 2011-2018E) Governance and Investors Information Annexes 1-4 (Consolidated Financial Statements) 16
Slide 17: Group Economic Results H1 2018 vs H1 2017
Group Economic Results H1 2018 vs H1 2017 Group Revenues Eu Mn (*) EBITDA Eu Mn +1.7% 25.8 555.2 564.9 25 24.4 +6.1% 600 500 102.4 130.9 20 4.39% 4.58% 400 15 300 484.6 469.9 10 200 5 100 0 0 Oct 31 2016 Oct 31 2017 Oct 31 2016 Oct 31 2017 VAD SSI EBIT Eu Mn Net profit after taxes Eu Mn (**) 20 18.8
Slide 18: Segment Reporting: H1 2018 and FY 2017 Ytd
Segment Reporting: H1 2018 and FY 2017 Ytd H1 2018 (October 31, 2017) YTD Full Year 2017 (April 30, 2017) YTD H1 2018 consolidated revenues up by 1.7% YoY, in line with the IT Italian market trend. Significant SSI Segment contribution (+27.8% YoY) thanks to revenues development in Managed Services
Slide 19: Group Financial Results: H1 2018 vs H1 2017
Group Financial Results: H1 2018 vs H1 2017 Group Shareholders Equity (Eu Mn)* Group Net Financial Position (NFP) (Eu Mn) 201.7 6.7 200 183.5 +9.9% 6 +68.2% 150 4 100 2.1 2 50 0 0 Oct 31 2016 Oct 31 2017 Oct 31 2016 Oct 31 2017 Consolidated Group Equity as of October 31, 2017 equal to Eu 201.7 Mn,
Slide 20: Group External Growth
Group External Growth 2015-2017 Group’s External Growth focused on service solutions and innovative areas of IT, to support Group’s Sustainable Growth and human capital Development Long-term Commitment of management team of the acquired companies, through Earn Out incentive plans November 2017
Slide 21: Index
Index Group Overview ICT Market Trend Group Results as of October 31, 2017 Historical Financials Results (Track Record 2011-2018E) Governance and Investors Information Annexes 1-4 (Consolidated Financial Statements) 21
Slide 22: Group Economic Results FY 2011-2018E
Group Economic Results FY 2011-2018E 1,313(E) 65 Revenues** (Eu Mn) 1,271 EBITDA (Eu Mn, % on revenues) 57.9 62.0(E) 1250 1,230 54.0 55 51.6 4.7% 1,060 49.5* 1050 4.6% 948* +3.3% 44.2 4.4% +7.0% 45 41.3 4.9% 812 832 YoY(E) 5.2% YoY(E) 850 747 34.4 5.3% 35 5.1% 650 4.6% 450 CAGR + 8.4% 25 CAGR +8.8%
Slide 23: NWC and NFP annual average trend
NWC and NFP annual average trend NWC/Revenues FY2014 - FY2018 Quarterly * Improvement in NWC management 20% 17.3% 15.7% 14.6% 15% 13.3% 13.3% 12.8% 11.7% 11.6% 12.0% 12.7% 12.6% 11.2% 10.5% 10.9% 10.7% 10.2% 10.0% 10.3% 10% 7.4% 7.3% 6.3% 6.2% 5% 0% 3Q 2Q 1Q 2Q 4Q 1Q 2Q 3Q 4Q 1Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 24: Group Financial Results FY 2011-2018E
Group Financial Results FY 2011-2018E Group Shareholders Equity* (Eu Mn) Net Financial Position (Eu Mn) 222.4(E) 70 205 199.0 53.5 50 Strong Free Cash 179.4 Flow Generation 160.4 30 155 143.9 129.9 10 4.2 105 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 30 Apr -10 2011 2012 2013 2014 2015 2016 2
Slide 25: Index
Index Group Overview ICT Market Trend Group Results as of October 31, 2017 Historical Financials Results (Track Record 2011-2018E) Governance and Investors Information Annexes 1-4 (Consolidated Financial Statements) 25
Slide 26: Key Investor Information
Key Investor Information Sesa (Euro) 2014 2015 2016 2017 Stock Market (1) AIM MTA MTA - MTA - (1) Listing on AIM market following the merger with Made In Italy 1 SpA Star Star (SPAC under Italian law listed on AIM) completed on February 1, 2013. Listing on MTA Stock Exchange on October 23, 2013 Stoc
Slide 27: Shareholders & Management Team
Shareholders & Management Team Treasury SeSa shares are listed in the MTA Italian Stock Exchange since October 23, Amiral Gestion Shares Norges 2013 (transition on MTA STAR Segment on February 16, 2015) Bank 2.988% 0.250% 2.996% Total 15,494,590 outstanding ordinary shares Franklin Templeton 4.8
Slide 28: STAR segment governance requirements
STAR segment governance requirements Sesa is listed in the MTA STAR segment of Borsa Italiana (Italian Stock Exchange) dedicated to mid-size companies with a capitalization lower than Euro 1.0 Bn, which voluntarily adhere to and comply with several requirements: High transparency and high disclosu
Slide 29: Index
Index Group Overview ICT Market Trend Group Results as of October 31, 2017 Historical Financials Results (Track Record 2011-2018E) Governance and Investors Information Annexes 1-4 (Consolidated Financial Statements) 29
Slide 30: Income Statement as of October 31st, 2017
Income Statement as of October 31st, 2017 Reclassified Income Statement Change 10/31/2017 % 10/31/2016 % (Euro/thousand) 2017/16 Revenues 560,557 551,386 1.7% Other income 4,355 3,858 12.9% Total Revenues and Other Income 564,912 100.0% 555,244 100.0% 1.7% Purchase of goods 453,543 80.3% 459,385 82.
Slide 31: Balance Sheet as of October 31st, 2017
Balance Sheet as of October 31st, 2017 Reclassified Balance Sheet 10/31/2017 10/31/2016 04/30/2017 Euro/thousand) Intangible assets 23,163 17,609 21,848 Property, plant and equipment 51,819 45,788 49,736 Investments valued at equity 8,868 4,101 8,835 Other non-current receivables and deferred tax as
Slide 32: Income Statement as of April 30th, 2017
Income Statement as of April 30th, 2017 Reclassified Income Statement Change 04/30/2017 % 04/30/2016 % (Euro/thousand) 2017/16 Revenues 1,260,275 1,223,485 3.0% Other income 11,194 6,117 83.0% Total Revenues and Other Income 1,271,469 100.0% 1,229,602 100.0% 3.4% Purchase of goods 1,055,182 83.0% 1,
Slide 33: Balance Sheet as of April 30th, 2017
Balance Sheet as of April 30th, 2017 Reclassified Balance Sheet Change 04/30/2017 04/30/2016 Euro/thousand) 2017/16 Intangible assets 21,848 17,251 4,597 Property, plant and equipment 49,736 44,437 5,299 Investments valued at equity 8,835 3,938 4,897 Other non-current receivables and deferred tax as
Slide 34: 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 othe