Star7 S.p.a · MIL:STAR7

Star7 — H1 2023 Earnings Presentation

27 slides from Star7's earnings presentation, Sep 26, 2023

  1. Slide 1: H1 2023 Financial Results

    H1 2023 FINANCIAL RESULTS CONFERENCE CALL 26 SEPTEMBER 2023

  2. 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

  3. Slide 3: Agenda

    Agenda STAR7 H1 2023 At a glance Financial results Achievements Final remarks Appendix STAR7 H1 2023 RESULTS 3

  4. 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 H1 2023 RESULTS 4

  5. Slide 5: At a Glance

    STAR7 H1 2023 AT A GLANCE STAR7 H1 2023 RESULTS 5

  6. Slide 6: H1 2023 Highlights

    H1 2023 Highlights REVENUES EBITDA / EBITDA ADJ* EBITDA MARGIN/ NET DEBT EBIDTA MARGIN ADJ* % € 50.9 m € 6.9 m / € 7.5 m 13.6% / 14.7% € 33.6 m -10.2% +28.3% +3.6%* -350 bps* vs H1 2022 vs H1 2022 vs H1 2022 vs H1 2022 -4.3% vs FY 2022 *Adjusted EBITDA excludes the integration costs of the business

  7. Slide 7: H1 2023 Highlights

    H1 2023 Highlights Continued topline growth and strong cash generation in a tough first half 28.3% growth in revenues driven both by organic Laying the foundations growth and the lease of the CAAR business division for growth in 2024 and beyond CAAR integration already generating significant revenue

  8. Slide 8: Financial Results

    STAR7 H1 2023 FINANCIAL RESULTS STAR7 H1 2023 RESULTS 8

  9. Slide 9: H1 2023 key highlights: Revenues

    H1 2023 key highlights REVENUES (data in €m) 50,0 45,0 40,0 +28.3% 35,0 30,0 Change % 25,0 50.9 H1 2023 vs H1 2022 20,0 39.6 Significant growth across all service lines and 15,0 geographies. 10,0 Successful leverage of the additional engineering capacity provided by CAAR, drawing on the 5,0 up-selli

  10. Slide 10: Revenues breakdown by region

    Revenues breakdown by region H1 2023 Broad international footprint proves to be a key feature of STAR7 7.1% Brazil at higher weight in H1 2023 vs H1 2022, driven by CAAR’s significant presence in the region 14.1% FY 2022 7.3% 50.9 H1 2022 €m 8.7% 57.2% 6.2 8% % 21.6% 83.3 €m 55.8% 39.6 28.2% 27% €m

  11. Slide 11: Revenues breakdown by services

    Revenues breakdown by services Strong impact on group revenues related to the extension of the Engineering services H1 2023 Limited growth of Global Content activities due to the seasonality of new projects with major customers such as Iveco Group, CNHi, Apple Positive trend confirmed for Printing s

  12. Slide 12: H1 2023 key highlights: Adjusted EBITDA

    H1 2023 key highlights EBITDA ADJUSTED (data in €m) 9,0 8,0 +3.6% 7,0 Change % 6,0 5,0 H1 2023 ADJ VS. H1 2022 Adjusted EBITDA shows progress, despite inflation, 4,0 integration costs generated by the absorption of the CAAR business unit, and efficiencies still to be 3,0 realised. 2,0 7.2 6.9 7.5 1,

  13. Slide 13: H1 2023 EBITDA margin

    H1 2023 EBITDA margin (data in €m) 18,0 18.2% 20,0% H1 2023 EBITDA margin mainly impacted by: 16,0 18,0% 15.3% CAAR Group integration costs (excluded in 14,0 13.6% 14.7% 16,0% Adjusted EBITDA) while efficiencies are yet to be 14,0% realised. 12,0 12,0% 10,0 Offshoring only partly offsetting higher i

  14. Slide 14: Net Debt – Debt-to-EBITDA ratio

    Net Debt – Debt-to-EBITDA ratio (data in €m) 40,0 3.90 4,50 35,0 3.80 4,00 3,50 Net financial debt decreased to €33.6m as at 30 June 2023 30,0 35.1 33.6 (from €35.1m as at 2022YE) reflecting the successful 3,00 25,0 31.9 management of net working capital, notwithstanding the 2.30 2,50 negative impac

  15. Slide 15: Net financial position

    Net financial position TOTAL 16.3 31.9 35.1 33.6 60,0 50,0 7,3 5,2 5,9 40,0 25.0 25,0 22,9 30,0 The debt structure remains well balanced 2,1 between short and long term. 20,0 12,9 10,7 10,1 11,7 10,0 The average cost of debt is 3.55%. 8,5 10,2 12,8 11,1 - -6,0 STAR7 has €16.5m cash available to fund

  16. Slide 16: Achievements

    STAR7 H1 2023 ACHIEVEMENTS STAR7 H1 2023 RESULTS 16

  17. Slide 17: M&A ongoing activities

    M&A ongoing activities The strategy of geographical and industry diversification continues to drive the M&A scouting process AS ANTICIPATED IN M&A STRATEGY FOR 2023, WE ARE PROCEEDING AND ENTERING INTO THE: Final stage of negotiation with the target active in Italy (PK - ENG): 4Q4 2023 – Q1 2024 STA

  18. Slide 18: Good news

    Good news Award of global STELLANTIS technical authoring contract (PK) Renewal of contracts for technical documentation (PK-GC) for IVECO Renewal of contracts for technical documentation (PK-GC) for CNHI Renewal of engineering services contracts with enlarged scope for FPT Award of contract for serv

  19. Slide 19: AI roadmap

    AI roadmap We believe that AI will enable the evolution of new services and bring more value to STAR7’s current service portfolio. That is why we are launching 7AI, a new suite of services INTEGRATING AI FEATURES that draw on our expertise and the knowledge gained from long-term relationships with o

  20. Slide 20: Sustainability - Policies and Performance

    Sustainability - Policies and Performance STAR7 FIRST SUSTAINABILITY REPORT – YEAR 2022 ECONOMIC PERFORMANCE SOCIAL PERFORMANCE ESG GOALS ECONOMIC VALUE # OF EMPLOYEES 13 GENERATED 859 (+60% 2020-2022) TIMEFRAME €84.8 m FEMALE EMPLOYEES 2023-2025 VALUE DISTRIBUTED 45% Strong focus on the social fiel

  21. Slide 21: Final Remarks

    STAR7 H1 2023 FINAL REMARKS STAR7 H1 2023 RESULTS 21

  22. Slide 22: STAR7's next steps

    STAR7’s next steps H1 2023 Consolidating strong future pipeline and working on cost efficiency High potential M&A opportunities Sticking to our Embracing disruptive - Significant and well-structured technologies strategies portfolio of opportunities to high We continue to pursue our values market fo

  23. Slide 23: Appendix

    STAR7 H1 2023 APPENDIX STAR7 H1 2023 RESULTS 23

  24. Slide 24: Income statement

    Income statement 30/06/2023 30/06/2022 Change Change % Net Revenues 50,860,071 39,649,244 11,210,827 28.3% Other revenues 713,669 701,342 12,327 1.8% Change in inventories and increases in fixed assets 51,929 109,883 -57,954 -52.7% External costs -23,172,895 -18,928,207 -4,244,688 22.4% Added Value

  25. Slide 25: Balance sheet

    30/06/2023 31/12/2022 Change Change % Balance sheet Net intangible assets Net tangible assets 37,824,787 8,990,985 39,248,910 6,906,497 -1,424,122 2,084,488 -3.6% 30.2% Equity holdings and other financial investments 799,083 751,110 47,973 6.4% Fixed assets 47,614,855 46,906,516 708,339 1.5% Invento

  26. Slide 26: Cash Flow Statement

    Cash Flow Statement 30/06/2023 30/06/2022 30/06/2023 30/06/2022 A. CASH FLOW FROM OPERATIONS (INDIRECT METHOD) B. CASH FLOW FROM INVESTING ACTIVITIES Profit (loss) for the year 989,276 1,493,401 Tangible assets Income taxes 923,891 1,037,529 (Investments) -2,686,664 -330,869 Financial charges/(incom

  27. Slide 27: Thank you

    THANK YOU STAR7 H1 2022 RESULTS 29

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