Slide 1: First Half 2023 Group Results and Corporate Presentation
First Half 2023 Group Results and Corporate Presentation December 19, 2022
Slide 2: Agenda
Agenda Alessandro Fabbroni → Business Model and Strategic Achievements Chief Executive Officer → First Half Results as of October 31, 2022 → Business Sectors Overview → Financial Annexes 2
Slide 3: Business Model and Strategic Achievements
Business Model and Strategic Achievements ▪ Leading digital partner for the business segment: technology, digital services and business applications Leading digital partner for ▪ Over 35,000 customers (o/w 4,000 abroad) and about Eu 2.8 Bn revenues expected in FY as of April 30, 2023 Enterprises and
Slide 4: Scalable matrix organization focusing on vertical digital skills
Scalable matrix organization focusing on vertical digital skills Group Governance Technology Solutions, Digital Services Italian leading player in technological and Business Applications for innovation and digital services, with revenues Enterprises and Organizations with for Eu 2.39 Bn in FY 2022 1
Slide 5: Human capital skills development programs
Human capital skills development programs Technological Skills on main digital trends 5700 CAGR 2011-2022 16% (+21% in FY 2022) 2,806 4,434 employees as of October 31, 2022 HR development programs: 20% HR annual growth over last 3Y period, thanks to continuous improvement of Group hiring 5200 2,39
Slide 6: Bolt-on industrial M&As to sustain long-term organic growth
Bolt-on industrial M&As to sustain long-term organic growth Calendar Year 2015-20171 2018-20191 20201 20211 20221 FY April 30, 2023E2 • ACCADIS • CLEVER • P.M. SERVICE • BRAINWORKS • ALTINIA DISTR. • PICO Revenues Eu 30 Mn Revenues Eu 15 Mn Revenues Eu 50 Mn Revenues Value Added Revenues Eu 18 Mn Re
Slide 7: Long-term commitment of key people and value generation
Long-term commitment of key people and value generation Key people equity commitment and sustainable growth Group Long-term track record achievements Sesa Group equity partners’ focus on long term Group development under REVENUES FY11 Eu 747 Mn long-term equity commitment program: REVENUES FY22 Eu 2
Slide 8: Market Trends confirm digitalization path
Market Trends confirm digitalization path ICT Worldwide Market, source Gartner November 2022 Bn Dollars 2018 2019 2020 2021 2022E 2023E Worldwide ICT market Data Centre Systems 210 203 208 190 209 216 Enterprise Software 419 457 507 732 790 880 ▪ After the great acceleration of worldwide ICT market
Slide 9: Sustainability programs improvement
Sustainability programs improvement ▪ Sustainable growth introduction in corporate ▪ Carbon Neutrality programs in line with European bylaws as strategic target of Sesa Group 2030 Agenda BoD (extraordinary shareholders’ Jan 2021) SUSTAINABILITY ENVIRONMENTAL ▪ Environmental performance in FY 2022: p
Slide 10: Agenda
Agenda Alessandro Fabbroni → Business Model and Strategic Achievements Chief Executive Officer → First Half Results as of October 31, 2022 → Business Sectors Overview → Financial Annexes 10
Slide 11: Strong growth in H1 2023, driven by organic development
Strong growth in H1 2023, driven by organic development Revenues Ebitda Group EAT Adj1 Eu 93.4 Mn Eu 44.2 Mn NFP2 (+27.5% Y/Y) (+23.5% Y/Y) Eu 189.5 Mn (net cash) H1 2023 Eu 1,311.7 Mn vs (May 22 - Oct 22) (+26.5% Y/Y) Eu 170.9 Mn (net cash) Ebitda Margin 7.12% EAT Adj margin 3.37% (vs 7.07% H1 22)
Slide 12: H1 2023 Financial results and FY 2023 Guidance
H1 2023 Financial results and FY 2023 Guidance Reported Results FY 22 Reported Results H1 2023 Long term Growth FY 2023 Guidance* FY FY FY H1 H1 11Year 3Year Growth % Growth Eu million 2021 2022 2022 2022 2023 CAGR CAGR FY 20233 % Y/Y Y/Y 12M 12M Y/Y 6M 6M 2011-22 2019-22 Revenues 2,037.2 2,389.8 +1
Slide 13: EBITDA and EAT margin improvement by segment (H1 2019-23)
EBITDA and EAT margin improvement by segment (H1 2019-23) Group Revenues Eu Mn1 EBITDA Eu Mn Group EAT Adjusted Eu Mn2 Revenues by Segment1 1.2% 3.5% 1,311.7 +26.5% Y/Y 21.9% 22.2% 93.4 39.7 +27.5% Y/Y +46.3% 7.1% 44.2 Oct 31 Oct 31 Y/Y +23.5% Y/Y 3.5 3.4% 2018 2022 +11.1% Y/Y 1,036.7 8.8% 0.5 +16.6
Slide 14: Sustainable long-term growth FY 2011 - FY 2023E
Sustainable long-term growth FY 2011 - FY 2023E Sales and other Revenues (Eu Mn) EBITDA (Eu Mn) EBIT Adjusted2 (Eu Mn) 2,8061 2,390 2031 CAGR2011-22 +11.2% +18% CAGR2011-22 +15.5% CAGR2011-22 +15.6% 1521 2,037 Y/Y CAGR2019-22 +15.5% +17.3% CAGR2019-22 +31.2% 167.7 +21% CAGR2019-22 +31.2% +21%
Slide 15: NWC and NWC/Revenues
Cash Flow generation and NWC management FY 2014-23 by Quarter Growing Efficiency in NWC management FY2014 - FY2023 Quarterly1 160.7 155.9 149.8 150.1 NWC/Revenues 0.8% in H1 NWC and NWC/Revenues 146.1 142.3 138.5 133.8 127.3 130.0 135.6 128.9 125.9 131.5 128.2 132.6 2023 vs 1.1% in H1 2022 120.0 124
Slide 16: Agenda
Agenda Alessandro Fabbroni → Business Model and Strategic Achievements Chief Executive Officer → First Half Results as of October 31, 2022 → Business Sectors Overview → Financial Annexes 16
Slide 17: SSI: Digital Partner for European SMEs and Enterprises
SSI: Digital Partner for European SMEs and Enterprises 572 Mn revenues, Ebitda margin 12% and 2,850 employees as of April 30, 2022 Revenues breakdown* Customer & Data Customer base of around 12,500 Enterprises and SMEs of which over 2,500 abroad Business Science 2% Digital Experience 3% Workspac
Slide 18: Business Services: Digital Transformation for Financial Services
Business Services: Digital Transformation for Financial Services 59 Mn revenues, Ebitda margin 10% and 550 employees as of April 30, 2022 Revenues breakdown* Group Sector focusing on digital transformation, business applications and business services for Financial BDX - Base BDP - Base Services
Slide 19: VAD: Digital partner of ICT ecosystems
VAD: Digital partner of ICT ecosystems 1.86 Bn revenues, Ebitda margin 5% and 630 employees as of April 30, 2022 VAD Italian market share1 Revenues breakdown* Over 20,000 BPs customer set (Software Houses, System Integrators, MSP, CSP) of Networking& which 2,000 abroad (DACH Region) Computer Gro
Slide 20: Agenda
Agenda Alessandro Fabbroni → Business Model and Strategic Achievements Chief Executive Officer → First Half Results as of October 31, 2022 → Business Sectors Overview → Financial Annexes 20
Slide 21: Group H1 Results as of October 31, 2022 by segment
Group H1 Results as of October 31, 2022 by segment 6-Months as of October 31, 2022 (H1) Y/Y Highlights Segment Information 6M period as of October 31, 2022 (H1) 6M period as of October 31, 2021 (H1) H1 2023 results (May 2022 – Oct 2022) In Euro Mn VAD SSI BS Corporate Group VAD SSI BS Corporate Grou
Slide 22: Group Annual Results as of April 30, 2022 by segment
Group Annual Results as of April 30, 2022 by segment Annual Results as of April 30, 2022 Y/Y Highlights Segment Informations Annual Results as of April 30, 2022 Annual Results as of April 30, 2021 Annual results as of April 30, 2022 In Euro Mn VAD SSI BS Corporate Group VAD SSI BS Corporate Group Co
Slide 23: Income Statement as of October 31, 2022 as reported
Income Statement as of October 31, 2022 as reported H1 October H1 October H1 October Change Consolidated reclassified Income Statement (Euro/thousand) % % % 31, 2020 31, 2021 31, 2022 2022/21 Revenues 883,159 1,024,779 1,298,771 26.7% Other income 6,121 11,921 12,965 8.8% Total Revenues and Other In
Slide 24: Balance Sheet as of October 31, 2022 as reported
Balance Sheet as of October 31, 2022 as reported Consolidated Reclassified Balance Sheet Change H1 October 31, 2020 H1 October 31, 2021 H1 October 31, 2022 (Euro/thousand) 2022/21 Intangible assets 106,188 179,019 282,066 103,047 Property, plant and equipment 92,350 100,348 119,041 18,693 Investment
Slide 25: Income Statement as of April 30, 2022 as reported
Income Statement as of April 30, 2022 as reported Consolidated reclassified Income Statement Change April 30, 2020 % April 30, 2021 % April 30, 2022 % (Euro/thousand) 2022/21 Revenues 1,762,641 2,022,454 2,362,603 16.8% Other income 13,384 14,769 27,220 84.3% Total Revenues and Other Income 1,776,02
Slide 26: Balance Sheet as of April 30, 2022 as reported
Balance Sheet as of April 30, 2022 as reported Consolidated Reclassified Balance Sheet (Euro/thousand) April 30, 2020 April 30, 2021 April 30, 2022 Change 2022/21 Intangible assets 74,273 142,826 228,280 85,454 Property, plant and equipment 83,958 99,942 111,943 12,001 Investments valued at equity 1
Slide 27: Thank you for your kind attention
THANK YOU FOR YOUR KIND ATTENTION For additional information Stakeholder Relations Department Francesco Billi, Group CFO f.billi@sesa.it Conxi Palmero, IR Manager, c.palmero@sesa.it, Elisa Gironi, Group Corporate Governance and M&A Manager e.gironi@sesa.it Jacopo Laschetti, Stakeholders & Sustainabi
Slide 28: www.sesa.it
www.sesa.it 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