Slide 1: Group Presentation
Group Presentation ANNUAL REPORT AS OF APRIL 30, 2018 Board of Directors, July 12th, 2018
Slide 2: Agenda
Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of April 30, 2018 Historical Financials Results (Track Record 2011-2018) Governance and Investors Information Annexes (Consolidated Financial Statements) 2
Slide 3: Group Structure
Group Structure SeSa Group is a leading Italian IT Consolidated revenues1 € 1,363 Mn services and solutions provider and about 1,650 employees1 Corporate Services and Group’s Direction Group’s Strategy, HR, Planning & Control, Finance, M&A, Legal, ICT & Operations, Logistic, Cloud services through t
Slide 4: Business Model and Investment Case
Business Model and Investment Case Strong Financial Steady growth Strong partnerships Long Term Track Record • Continuous and sustainable growth since Revenues • Strategic partner of Global IT Vendors (“IT CAGR 2011-2018 1973, leveraging major IT trends and over- Titans”): Cisco, Citrix, DellEMC, HP
Slide 5: Continuous Growth Since 90s along side with IT Titans
Continuous Growth Since 90s along side with IT Titans 1,363 Continuous and sustainable organic 1,271 Strategic partner and service Integrator growth over-performing the reference IT 1,230 of the IT Global Vendors: long term Italian market 1,060 partnerships with a wide Vendors’ base (over 100 brands
Slide 6: Leadership in Italian VAD Market
Leadership in Italian VAD Market CGI is leader in Italian VAD market, with a 43.2% market share in 2017*. Total 2017 VAD Market Share VAD revenues and other income of Eu 1,153.9 Mn as of April 30, 2018 (+4.7% YoY, +8% CAGR 2011-2018) 50% 43.2% 40% Customer base of over 11,000 Software Houses, System
Slide 7: IT Strategic Partner for Italian SME & Enterprise
IT Strategic Partner for Italian SME & Enterprise VAR Group is a leading Italian SSI revenues reached Eu IT innovation partner for Full offering of integrated IT Full offering of Cloud services R&D focusing on most Software and System 289.4 Mn as of April 30, 2018 Italian SME & Enterprise solutions
Slide 8: Human Capital and Competitive Advantages
Human Capital and Competitive Advantages Human Capital Training and certification Proprietary Datacenter for cloud Successful and Long Term of about 1,650 qualified people with programs solutions and services. relationships professional skills in main innovative in partnership with Vendors to Datace
Slide 9: Annual Financial Track Record 2011-2018
Annual Financial Track Record 2011-2018 Revenues Ebitda Net Profit Adjusted Net Profit Group Revenues and Other Group Ebitda Group Net Profit After Taxes Adjusted Group Net Profit After Income Eu 63.1 Mn before minority interest Taxes before minority interest Eu 1.363.0 Mn (+9.0% YoY) Eu 30.2 Mn Eu
Slide 10: Agenda
Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of April 30, 2018 Historical Financials Results (Track Record 2011-2018) Governance and Investors Information Annexes (Consolidated Financial Statements) 10
Slide 11: Italian IT Market 2013-2019E
Italian IT Market 2013-2019E Italian IT market trends IT Italian market (2016-2019E) in Eu Mn CAGR 2015-2019E 3.1% 20000 19,294 19,815 Italian IT market grew by 1.6% in 2016 and by 1.9% 19,019 18,817 +2.7% 18,616 18,470 in 2017, after an average 3% annual decline trend -4.1% 18,188 +2.5% 18000 -2.1%
Slide 12: Global ICT market trend 2015-2021E
Global ICT market trend 2015-2021E Global IT market (2015-2021) in USD Bn Global IT market trends Global spending on Security Solutions embracing IT Services, Enterprise Software and Data Center 4500 CAGR 2016-2021E 3.3% Infrastructure expected to accelerate over the next years, achieving a 4.8% CAG
Slide 13: Focus on IT market trends
Focus on IT market trends Global IT Technology Evolution 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 solutions, an
Slide 14: Agenda
Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of April 30, 2018 Historical Financials Results (Track Record 2011-2018) Governance and Investors Information Annexes (Consolidated Financial Statements) 14
Slide 15: Group Annual Results
Group Annual Results as of April 30, 2018 Group Revenues Eu Mn (*) EBITDA Eu Mn Net profit after taxes Eu Mn (**) Revenues by Segment 1.1% 1.1% +7.2% +9.0% +11.4% 17.7% 19.8% 30.2 30 65 63.1 Apr 30 Apr 30 1,363.0 28 27.1 2017 2018 1,271.5 60 57.9 1400 26 289.4 55 24 81.2% 79.1% 239.8 (+20.7%) 1200 (
Slide 16: Group Annual Results by segment
Group Annual Results as of April 30, 2018 by segment 3-Months (Q4) as of April 30, 2018 YoY Annual Results as of April 30, 2018 YoY Segment Informations Three – month period as of April 30, 2018 Three – month period as of April 30, 2017 Segment Informations Annual Results as of April 30, 2018 Annual
Slide 17: Group Financial Results
Group Financial Results as of April 30, 2018 Group Net Financial Position (NFP) (Eu Mn) Group Shareholders Equity (Eu Mn)* Consolidated NFP as of April +5.2% +8.5% 30, 2018 equal to Eu 54.7 216.0 Mn (cash/net liquidity) Apr 30 2017 Apr 30 2018 199.0 0 200 improved by Eu 2.7 Mn (up -10 5.2%) YoY comp
Slide 18: Group External Growth
Group External Growth Group 2015-2018 Main Acquisitions External Growth to support Group’s strategy aiming at developing Target Overview Investment rationale Financial Highlights (april 2018A) service solutions and valued-added areas of business Accadis: Long-term Commitment of Accadis (2016) 1st It
Slide 19: Agenda
Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of April 30, 2018 Historical Financials Results (Track Record 2011-2018) Governance and Investors Information Annexes (Consolidated Financial Statements) 19
Slide 20: Group Annual Economic Results 2011-2018 as reported
Group Annual Economic Results 2011-2018 as reported 1450 1,363 1,271 65 63.1 1250 1,230 57.9 54.0 1,060 +7.2% 55 49.5* 51.6 4.6% +9.0% 1050 948* 4.6% YoY 44.2 4.4% YoY 812 832 45 41.3 4.9% 850 747 EBITDA (Eu 5.2% 34.4 Revenues ** 35 5.3% 650 Mn, % on (Eu Mn) 5.1% revenues) 25 450 4.6% CAGR + 9.0% 15
Slide 21: Adjusted Group Annual Economic Results 2011-2018
Adjusted1 Group Annual Economic Results 2011-2018 50.1 50 46.9 50 47.0 45 42.6 45.2 39.2 40.6* 42.4 40 36.7 +6.5% 35.1* 3.4% +10.0% 40 36.0 35 30.5 35.3 3.7% YoY 28.6 3.2% 3.4% YoY 3.7% 3.7% 3.5% ADJUSTED1 4.3% 4.3% 4.0% ADJUSTED1 30 3.7% 30 EBIT 25.6 4.3% EBT (Eu Mn, 25 20.2 3.7% 3.5% (Eu Mn, % 20
Slide 22: NWC and NFP annual average trend 2014-2018 by Quarter
NWC and NFP annual average trend 2014-2018 by Quarter Improvement in NWC management 20% 17.3% 18% 15.7% 16% 14.6% 13.3% 13.3% 12.8% 14% 11.7% 11.6% 12.0% 11.2% 12.7% 12.6% 12% 10.5% 10.9% 10.2% 10.7% 10.3% 11,1% 10.0% 10% 9.4% 7.4% 7.3% NWC/Revenues 8% 6.3% 6.2% 5.5% FY2014 - FY2018 6% 4% Quarterly
Slide 23: Group Annual Financial Results 2011-2018
Group Annual Financial Results 2011-2018 Group Shareholders Equity* (Eu Mn) Net Financial Position (Eu Mn) Net Financial Position (Cash/Net Liquidity) equal 70 to Eu 54.7 Mn as of April 216.0 30, 2018 (up Eu 2.7 Mn 53.5 compared to April 30, 205 199.0 2017) improved by 5% YoY 50 179.4 net of gross i
Slide 24: Agenda
Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of April 30, 2018 Historical Financials Results (Track Record 2011-2018) Governance and Investors Information Annexes (Consolidated Financial Statements) 24
Slide 25: Key Investor Information
Key Investor Information Sesa (Euro) 2015 2016 2017 2018 SeSa Stock Trend Index Stock Market (1) MTA MTA - Star MTA - Star MTA - Star 200% 182.1% Stock market price (Apr 30 of every Fiscal Year) 16.34 15.40 23.60 26.30 180% 151.2% DPS - Dividend per share (*) 0.45 0.48 0.56 0.60 160% Total Dividend
Slide 26: Sesa Shareholders & Management Team
Sesa Shareholders & Management Team Franklin Treasury Templeton Shares SeSa shares are listed in the MTA Italian Stock Exchange 4.860% 0.316% since October 23, 2013 (transition on MTA STAR Segment on February 16, 2015) Total 15,494,590 outstanding ordinary shares Main Shareholders (according to Cons
Slide 27: STAR Segment Stock Exchange Governance Requirements
STAR Segment Stock Exchange Governance Requirements Sesa is listed in the MTA STAR segment of Borsa Italiana Main STAR “status” requirements (Italian Stock Exchange) dedicated to mid-size companies with a capitalization lower than Euro 1.0 Bn, which Interim financial statements available to the publ
Slide 28: Annexes - Consolidated Financial Statements
Annexes - Consolidated Financial Statements Group Overview ICT Market Trend Group Results as of April 30, 2018 Historical Financials Results (Track Record 2011-2018) Governance and Investors Information Annexes (Consolidated Financial Statements) 28
Slide 29: Income Statement as reported
Income Statement as of April 30, 2018 as reported Change Reclassified Income Statement (Euro/thousand) 04/30/2018 % 04/30/2017 % 2018/17 Revenues 1,350,900 1,260,275 7.2% Other income 12,135 11,194 8.4% Total Revenues and Other Income 1,363,035 100.0% 1,271,469 100.0% 7.2% Purchase of goods 1,114,39
Slide 30: Balance Sheet as reported
Balance Sheet as of April 30, 2018 as reported Change Reclassified Balance Sheet (Euro/thousand) 04/30/2018 04/30/2017 2018/17 Intangible assets 39,083 21,848 17,235 Property, plant and equipment 55,221 49,736 5,485 Investments valued at equity 9,179 8,835 344 Other non-current receivables and defer
Slide 31: 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