Star7 S.p.a · MIL:STAR7
Star7 — FY2022 Earnings Presentation
29 slides from Star7's earnings presentation, Mar 28, 2023
Slide 1: 2022 Financial Results Conference Call
2022 FINANCIAL RESULTS CONFERENCE CALL 28 MARCH 2023
Slide 2: Disclaimer
Disclaimer This document (the "Document") This Document is intended The Document does not have has been prepared for the sole solely to provide selected the nature of an opinion on purpose of presenting the information to its recipients financial, legal, tax or company STAR7 S.p.A. and in no way con
Slide 3: Agenda
Agenda STAR7 2022 At a glance Achievements Financial results Final remarks Appendix STAR7 2022 RESULTS 3
Slide 4: Today's presenting team
Today’s presenting team Lorenzo Mondo Barbara Donadio Matteo Gera Founder & Group CEO Chief Financial Officer General Manager STAR7 2022 RESULTS 4
Slide 5: At a Glance
STAR7 FY 2022 AT A GLANCE STAR7 2022 RESULTS 5
Slide 6: Highlights 2022
Highlights 2022 REVENUES EBITDA EBITDA % NET DEBT € 83.3 m € 15.1 m 18.2 % € 35.1 m D/E GROWTH GROWTH GROWTH +14.3% +18.1% +600 bps vs 2021 PF vs 2021 PF vs 2021 PF 2.3 STAR7 2022 RESULTS 6
Slide 7: Company overview: Unique, in a global network
Company overview Unique, in a global network Presence in 3 continents with 18 offices (21*) and more than 870 people (more than 1100 *) Austria, Italy, Albania, USA, France, Spain, Germany, Denmark, Ireland, Finland, Sweden, Netherlands, Serbia*, Brazil, Argentina. (*) After lease of CAAR/STI branch
Slide 8: Proudly serving >1000 clients
Company overview Proudly serving GLOBAL CONTENT Advanced language services PRINTING Printing, packaging and kitting services >1000* CLIENTS ENGINEERING Product and process engineering Globally in more than PRODUCT KNOWLEDGE DIFFERENT Technical product expertise EXPERIENCE VR, AR, 3D and computer gra
Slide 9: Achievements
STAR7 2022 ACHIEVEMENTS STAR7 2022 RESULTS 9
Slide 10: M&A: Acquisition of 100% of Vertere
M&A: Acquisition of 100% of Vertere Strengthening the performance of the STAR7 Global Content Service Line VERTERE ACQUISITION DATE A language service provider renowned as the Italian pioneer in the use of Computer Assisted Translation (CAT) systems for workflow 26 July 2022 management, primarily se
Slide 11: M&A: Lease of CAAR Group branch 1/3
M&A: Lease of CAAR Group branch 1/3 Strengthening the performance of the STAR7 Engineering Service Line SIGNING DATE CAAR GROUP 31 December 2022 CAAR Group offers engineering solutions – mainly process engineering – to the automotive, aerospace and defence, rail, MAXIMUM ACQUISITION COST agriculture
Slide 12: M&A: Lease of CAAR Group branch 2/3
M&A: Lease of CAAR Group branch 2/3 Strengthening the performance of the STAR7 Engineering Service Line Major services offered International footprint Product Development Electric & Electronic engineering ITALY Bari Circular economy and Battery management Bolzano Turin Manufacturing engineering BRAZ
Slide 13: M&A: Lease of CAAR Group branch 3/3
M&A: Lease of CAAR Group branch 3/3 Strengthening the performance of the STAR7 Engineering Service Line Clear value-creation rationale Integration pillars The CAAR Group’s operating margins will improve through efficiencies and synergies, which we will implement straight Already achieved: away. Stab
Slide 14: New business fostering cross selling
New business fostering cross selling EUROPE BRAZIL NORTH AMERICA STAR7 2022 RESULTS 14
Slide 15: Financial Results
STAR7 2022 FINANCIAL RESULTS STAR7 2022 RESULTS 15
Slide 16: 2022 key highlights: Revenues
2022 key highlights REVENUES (data in €m) +14.3% 90.0 Change % 80.0 FY 2022 – PF 2021 70.0 Strong growth driven by : 60.0 Organic growth from new business and cross selling, 50.0 driven by developing new customers, increasing cross selling and upgrading services offered to 40.0 83.3 historic custome
Slide 17: H2 2022 key highlights: Revenues
H2 2022 key highlights REVENUES (data in €m) 50.0 45.0 40.0 35.0 30.0 +15.1% Change % 25.0 20.0 43.6 37.9 H2 2022 – H2 2021 PF 15.0 10.0 5.0 0.0 H2 2021 PF H2 2022 STAR7 2022 RESULTS 17
Slide 18: Continuous internationalisation process
Continuous internationalisation process FY 2022 €m IT US BR RoW FY 2021 42.5 6.8 4.7 5.1 FY 2021 PF 42.5 20.4 4.7 5.3 7.3% FY 2022 46.4 23.5 7.3 6.1 8.7% FY 2021 PF 7.2% FY 2021 83.3 6.5% €m 55.8% 8.6% 28.2% 8.0% 72.8 11.5% 27.9% €m 59.0 58.3% €m 71.9% Italy USA Brazil RoW STAR7 2022 RESULTS 19
Slide 19: Revenues breakdown by service
Revenues breakdown by service Global Content’s growth was lifted by the development of the US sales team and FY 2022 an increase in the group-wide customer portfolio. Capex on new printing machines in Brazil had a major payoff, acquiring a significant market share in the education publishing market.
Slide 20: 2022 key highlights: EBITDA
2022 key highlights EBITDA (data in €m) 15.0 +18.1% 13.0 Change % 11.0 FY 2022 – FY 2021 PF 15.1 9.0 12.8 EBITDA exceeded target of 15 million and reached 7.0 8.3 the PAS guidance 5.0 FY 2021 FY 2021 PF FY 2022 STAR7 2022 RESULTS 21
Slide 21: EBITDA margin
EBITDA margin (data in €m) 18.0 20.0% STAR7 achieved high operating margins in 2022 despite 17.6% 18.2% 16.0 18.0% unexpected challenges in the macro scenario (inflation, energy costs, shortage of supply chain components, raw 16.0% 14.0 14.0% materials, etc). This was driven by relentless focus on:
Slide 22: Net financial position
Net financial position TOTAL 17.1 16.3 31.9 35.1 70.0 3.8 3.9 60.0 60.0 50.0 2.9 40.0 50.0 25.0 25.0 2.3 30.0 40.0 3.4 20.0 2.4 5.0 12.9 10.7 30.0 1.8 11.7 2.3 10.0 16.9 8.5 10.2 12.8 20.0 1.2 2.2 - -6.0 10.0 24.6 29.9 -3.4 -18.5 -10.0 -23.5 15.8 14.2 - - -20.0 FY 2019 FY 2020 FY 2021 FY 2022 -30.0
Slide 23: Final Remarks
STAR7 FY 2022 FINAL REMARKS STAR7 2022 RESULTS 24
Slide 24: STAR7's next steps
STAR7’s next steps Early 2023 signs show a continuation of 2022 performance drivers New M&A opportunities Significant and well-structured portfolio of opportunities. Embracing disruptive Sticking to our strategies Product Knowledge target: technologies We continue to pursue our Packaging sector (Ita
Slide 25: Appendix
STAR7 FY 2022 APPENDIX STAR7 2022 RESULTS 26
Slide 26: Income statement
Income statement 31/12/2022 31/12/2021 Change Change % 31/12/2021 PF Change Change % Net Revenues 83,251,178 58,992,426 24,258,752 41.1% 72,837,095 10,414,083 14.3% Other revenues 1,588,134 1,003,507 584,627 58.3% 1,341,415 246,719 18.4% Change in inventories and increases in fixed assets 145,499 28
Slide 27: Balance sheet
Balance sheet Net inta ngible assets Net ta ngible assets 31/12/2022 39,146,910 6,894,087 31/12/2021 41,085,421 6,468,229 Change -1,938,512 425,858 Change % -4.7% 6.6% Equity holdings and other financial investments 751,110 229,283 521,827 227.6% Fixed assets 46,792,107 47,782,933 - 990,827 -2,1% In
Slide 28: Cash Flow Statement
Cash Flow Statement 31/12/2022 31/12/2021 31/12/2022 31/12/2021 A. CASH FLO W FROM OPERATIONS (INDIRECT METHO D) B. CASH FLO W FROM INVESTING ACTIVITIES Profit (loss) for the year 3,083,802 2,470,920 Tangible assets -1,760,320 -2,105,553 Income taxes 1,946,632 887,647 (Investments) -2,003,822 -2,195
Slide 29: Thank you
THANK YOU STAR7 H1 2022 RESULTS 30