Group Presentation. ITALIAN STOCK MARKET OPPORTUNITIES Milan - September 27 th, 2018

Transcription

1 Group Presentation ITALIAN STOCK MARKET OPPORTUNITIES Milan - September 27 th,

2 Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of July 31 st, Historical Financials Results (Track Record E) Governance and Investors Information Annexes (Consolidated Financial Statements) 2

3 Group Structure SeSa Group is a leading Italian IT services and solutions provider Consolidated revenues 1 1,363 Mn and about 1,650 employees 1 Corporate Services and Group s Direction Group s Strategy, HR, Planning & Control, Finance, M&A, Legal, ICT & Operations, Logistic, Cloud services through the parent company SeSa SpA, the subsidiaries Arcipelago Cloud and ICT Logistica. Corporate Revenues for over Eu 16 Mn (FY18) and approximately 120 human resources Value Added Distribution ( VAD ) SeSa fully owned subsidiary Computer Gross Italia SpA ( CGI ) is the leading player in Italian VAD with about 12,000 Software Houses and Resellers customer base. VAD segment revenues for Eu 1,153.9 Mn (FY18) with over 330 human resources Software and System Integration ( SSI ) SeSa fully owned subsidiary Var Group SpA is a reference IT system integrator for Italian Enterprise and SME segments with a customer base of over 10,000 business users. SSI revenues for Eu Mn (FY18) with about 1,200 human resources 1 Financial Statement as of April 30, 3

4 Business Model and Investment Case Steady and sustainable growth Continuous and sustainable growth since 1973, leveraging on major IT trends and over-performing the Italian market: - Organic: new IT Vendors partnerships agreements and lines of solutions - M&A: strategic acquisitions as human capital integration Our positioning: Italian gateway to the digital technology Italian SME & Enterprise reference player - IT innovation partner for Italian SME & Enterprise segments, thanks to its technology integration services - Skills and solutions on the high growth areas of IT also thanks to Sesa Group successful external growth Revenues Eu 1,363 Mn EBITDA Eu 63.1 Mn EAT Eu 30.2 Mn Group s EAT Eu 26.9 Mn Group s Adjusted EAT Eu 29.6 Mn Long Term Track Record Growth CAGR % CAGR % CAGR % CAGR % CAGR % Source: 2011 Group s Financial Statements Long term partnerships Strategic partner of Global IT Vendors ( IT Titans ): Cisco, Citrix, DellEMC, HP, HPE, IBM, Lenovo, Lexmark, Microsoft, Oracle, Samsung Focus on value-added segments: Server, Storage, Enterprise Software, Networking, Collaboration, Cloud Human Capital About 1,650 highly qualified people specialized in the main innovative IT areas (cloud, security, digital solutions, analytics, IoT) Proprietary Datacenter for hybrid cloud programs and services to customers 4

5 Continuous Growth Since 90s along side with IT Titans Continuous and sustainable organic growth over-performing the reference IT Italian market Revenues* CAGR 9% (+10.3% in Q1 19) 1,060 1,230 1,271 1,363 1,462(E) Strategic partner and service Integrator of the IT Global Vendors (IT Titans 1 ): long term partnerships with a wide Vendors base (over 100 brands) E Integrating several trend setter cloud** and enterprise software Vendors (analytics, security, collaboration) (1) IT Titans: the consultancy firm Canalys identifies as IT Titans the following key players leading the IT industry worldwide: Apple, Cisco, EMC, Google, HP, IBM, Intel, Juniper Network, Lenovo, Microsoft, Oracle, Salesforce, Samsung and SAP *Group s Consolidated sales and other revenues in Eu Mn (E) Average of Analysts Consensus for the year ending April 30, 2019 (source: Banca IMI, Intermonte Sim and Alantra, July ) **Over new 20 emerging Vendors (security, analitycs and cloud) agreements over 12 months: Nutanix, Sophos, Tableau, Bitdefneder. Mongo DB, Rubrik 5

6 Leadership in Italian VAD Market CGI is leader in Italian VAD market, with a 43.2% market share in *. Total VAD revenues and other income of Eu 1,153.9 Mn as of April 30, (+4.7% YoY, +8% CAGR 2011-) 50% 43.2% VAD Market Share Customer base of about 12,000 Software Houses, System Integrators and Resellers full covering the Italian territory (15 local branches) 40% 30% 26.9% CGI is the largest Italian player in the value-added segments (Storage, Software Enterprise, Networking, Server and IT Services) with over 330 people (high skilled on Vendor solutions), and a long term partnership with 100 major Vendors (track record without termination of any relevant Vendor agreement over the past 10 years) 20% 10% 0% Computer Gross Italia 12.8% 10.5% 6.6% Tech Data Esprinet Ingram Micro Italia Others VAD Market Share by segment Servers, Systems, Storage Enterprise Software Networking Packaged Services 49% 51% 62% 38% 29% 71% 35% 65% * Source Sirmi, June. Including ICOS (new CGI subsidiary) VAD market share up to 44.5% Computer Gross Italia Others 6

7 IT Strategic Partner for Italian SME & Enterprise VAR Group is a leading Italian Software and System Integration ( SSI ) player for Enterprise & SME segments (representing 32% of total Italian IT market with, Eu 6.0 Bn in E source Sirmi) SSI revenues reached Eu Mn as of April 30, (+20.7% YoY). Over 10,000 SMEs and Enterprises customer base, operating in the major Italian Industries: Automotive, Fashion, Food, Furniture, Mechanics, Paper, Retail, Wine IT innovation partner for Italian SME & Enterprise thanks to its technical skills and solutions (1,200 qualified human resources), enhanced by a capillary coverage of Italian territory (main Italian industrial districts) Full offering of integrated IT solutions to customers under 4 business units: Business Technology Solutions (40% of SSI), Managed and Security Services (20% of SSI), ERP & Industry solutions (35% of SSI) and Digital Solutions (5% of SSI). Growing focus on Managed & Security Services, Digital, ERP & Industry Solutions Full offering of Cloud services to customers (SaaS, PaaS, IaaS), trough the Empoli Headquarters datacenter. Bespoke finance and technical solutions to provide customers technology as a service R&D focusing on most innovative areas of IT to provide customers with new integrated applications (Artificial Intelligence, IOT, Wearable, Augmented Virtual Reality, 3D Printing) BUSINESS TECHNOLOGY SOLUTIONS 40% (Q1 19) vs 43% (FY 18) MANAGED & SECURITY SERVICES 20%* ERP & INDUSTRY SOLUTIONS 35% (Q1 19) vs 32% (FY )* DIGITAL SERVICES & SOLUTIONS 5%* Technology Hardware and Software Integration Maintenance, IT Services & Solutions Cloud Saas, Iaas, Business Continuity Datacenter monitoring, NOC SOC, Security & Cyber Risk Services ERP Solutions, International (SAP, Microsoft Dynamics) and Own Proprietary Industry Solutions for Italian SME s districts Digital Marketing & Communications Digital Business and Technology Integration Digital Transformation Data Analytics * SSI breakdown of revenues per Business Unit (Q and FY as of April 30, A) 7

8 Human Capital and Competitive Advantages Human Capital of about 1,650 qualified people with professional skills in main innovative IT areas (cloud, security, digital solutions, analytics, IoT). Recruiting (over 150 qualified new people in ), training and HR welfare programs supported by Fondazione Sesa (non-profit foundation providing welfare and charity) Training and certification programs in partnership with Vendors to habilitate and to integrate innovation technology through IT Channel for Italian SME & Enterprise. Vendors long term partnerships based on human capital qualification (trained and certified people) Proprietary Datacenter for cloud solutions and services. Datacenter located in Empoli Headquarters: computational area of 750 sqm, power of 1,250 KW, quality certification Tier III 1, SAP certified in hosting services and HANA operations, disaster recovery system based in Milan Successful and Long Term relationships with a wide base of main Vendors customizing IT solutions globally designed for Italian market (1) Tier III according to ANSI/TIA 942 standard 8

9 Q vs Historical Track Record Revenues Ebitda Group s EAT Group s Adjusted EAT Revenues and Other Income Ebitda Group s Net Profit 1 Group s Adjusted Net Profit 1 JUL 31 (Q1 19) Eu Mn (+10.3% YoY) Eu 15.7 Mn (+19.6% YoY) Ebitda Margin Eu 6.4 Mn (+16.7% YoY) Group s EAT margin Eu 7.0 Mn (+19.6% YoY) Adjusted Group s EAT margin 4.49% (vs 4.14% Q1 18) 1.84% (vs 1.74% Q1 18) 1.99% (vs 1.84% Q1 18) Revenues Ebitda Group s EAT Group s Adjusted EAT APR 30 (Last 12M FY) Revenues and Other Income Eu Mn (+7.2% YoY) Ebitda Eu 63.1 Mn (+9.0% YoY) Ebitda Margin Group s Net Profit 1 Eu 26.9 Mn (+7.3% YoY) Group s EAT margin Group s Adjusted Net Profit 1 Eu 29.6 Mn (+11.3% YoY) Adjusted Group s EAT margin 4.63% (vs 4.55% FY 17) 1.97% (vs 1.97% FY 17) 2.17% (vs 2.09% FY 17) CAGR CAGR % CAGR % CAGR % CAGR % Source: 2011 Q Group s Consolidated Financial Statements 1 Group s Net Profit after non-controlling and minority interests 9

10 Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of July 31 st, Historical Financials Results (Track Record E) Governance and Investors Information Annexes (Consolidated Financial Statements) 10

11 Italian IT Market E Italian IT market trends IT Italian market ( E) in Eu Mn CAGR E 3.1% Italian IT market grew by 1.6% in 2016 and by 1.9% in, after an average 3% annual decline trend over period. A growth equal to 2.4% and 2.9% is expected in and 2019 respectively , % 4,764 18, % 4,750 19,273 18,817 18,188 18, % +1.6% +1.9% -2.3% 4,970 5,192 5,504 5,870 19, % 6,315 Total IT market equal to Eu 18.8 Bn in and 19.3 Bn in, with significant contribution (32%) by SME and Enterprise segments ,710 3,557 3,474 3,423 3,436 3,468 3, Cloud and Managed Services segments (where SeSa Group operates) over-perform Italian IT average market trend: Cloud Computing expected to grow by a 20% average annual rate, over the -19 period Managed Services expected to grow over a 6% average annual rate, over -19 period ,951 3,880 3,857 3,847 3,833 3,840 3,850 6,593 6,427 5,885 6,006 6,044 6,095 6, E 2019E Hardware Software Project Services Management Services Source Sirmi, July 11

12 Global ICT market trend E Global IT market ( ) in USD Bn Global IT market trends ,387 3,398 1, % 1, % % CAGR E 3.3% 3, % 1, % % 3, % 1, % % 3, % 1, % 1, % 3, % 1, % 1, % 4, % 1, % 1, % % 5.6% 0.9% 0.4% 0.3% % 8.9% 9.5% 8.4% 8.1% 7.8% % % % % % % Data Center Systems Enterprise Software Devices IT Services Communications Services Cloud Computing spending expected to grow at over 6 times the average rate of IT from 2015 through 2020 (source IDC, ) IT Managed Services expected to growth by an average 5% annual rate over the period Enterprise Software represents the most dynamic area of global ICT market (over 8% CAGR over the period) driven by the innovation in security, analytics and data management areas. New vendors will significantly contribute to the segment growth Global spending on Security Solutions embracing IT Services, Enterprise Software and Data Center expected to accelerate over the next years, achieving a 4.8% CAGR in period, with total revenues of nearly USD 105 Bn (1) (1) Source: Gartner Market Databook 12

13 Focus on IT market trends Global IT Technology Evolution Distribution Role System Integration Role GLOBAL KEY MARKET TRENDS Global Major Vendors business model consolidation New emerging segments of IT (Cloud, Security, Collaboration, IoT) with a fragmented landscape: trend setter Vendors and new comers (source GTDC, London January ) Vendors require higher specialized distribution services to leverage the new trends of IT (skills, services portfolio and channel enablement capability) Vendors focused on recruiting new kind of SPs 1 (MSPs 2, CMSPs 3, ISVs 4 ) and their ecosystems that represent the new IT trends adopters Customers IT spending driven by new IT trends: digital solutions, analytics, security, cloud and IoT as key points of IT corporate innovation Cloud adoption and as a service model from capital expense to operating expense SESA GROUP Enforcing the partnership with major Vendors (datacenter, enterprise software, networking) habilitating the new IT trends for Italian SME and Enterprise, through a wider solutions portfolio Scouting of new Vendors in the emerging IT segments (cloud, security, analytics, IoT): over 20 new Vendors distribution agreements over the last 12 Months To consolidate market share on VAD by strengthening the partnership with major Global Vendors To penetrate in the IT emerging segments with new Vendors agreements focused on the innovative IT trends (cloud & security) To develop a new cloud market place and to recruit and educate new qualified human resources Full offering of integrated IT solutions (enlarging managed & security services, ERP & Industry Solutions and Digital Solutions) Enabling customers on embracing new technologies (education and R&D) and IT trends Offering of Cloud services and as a services technology and business applications to customers. 1 SPs: Service Providers; 2 MSPs: Managed Service Providers; 3 CMSPs: Cloud Managed Service Providers; 4 ISVs: Independent SW Vendors 13

14 Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of July 31 st, Historical Financials Results (Track Record E) Governance and Investors Information Annexes (Consolidated Financial Statements) 14

15 Group Results as of July 31, (Q vs Q1 ) Group Revenues Eu Mn (*) EBITDA Eu Mn Net profit Eu Mn (**) Revenues by Segment (*) 1.1% 1.0% +10.3% +19.6% +20.4% 18.9% 21.9% % % +43.4% % % % 2.57% 31.2% Jul % 80.0% EBITDA by Segment 37.4% Jul % 77.1% Jul 31 Jul % % % % % 1.80% 1.75% 68.6% Net profit by Segment (**) 61.4% % 0.0% 29.2% 0.9% 0 Jul 31 Jul 31 0 Jul 31 Jul 31 0 Jul 31 Jul 31 Jul 31 Jul % 69.9% (*) Sales and other revenues as of July 31, (3-Months period) (**) Net profit before minority interests (as reported) VAD SSI Corporate 15

16 Group Results as of July 31, by segment (Q vs Q1 ) 3-Months (Q1) as of July 31, YoY Annual Results as of April 30, YoY SegmentInformations Three month period as of July 31, Three month period as of July 31, SegmentInformations Annual Results as of April 30, Annual Results as of April 30, In Euro Mn VAD SSI Corporate Group* VAD SSI Corporate Group* In Euro Mn VAD SSI Corporate Group* VAD SSI Corporate Group* Total Revenues and Other Income Total Revenues and Other Income Change YoY 6.5% 28.3% 7.8% 10.3% Change YoY 4.7% 20.7% 7.2% 7.2% 1, ,4 16,2 1, , ,271.5 Gross Margin Gross Margin Opex (11.3) (45.6) (3.6) (54.1) (11.4) (30.9) (3.4) (41.6) Opex (47.0) (151.1) (13.9) (185.5) (44.7) (117.2) (13.1) (158.4) Ebitda Ebitda Ebitda Margin 3.33% 7.13% 5.06% 4.49% 3.32% 6.38% 0.76% 4.14% Ebitda Margin 3.52% 7.14% 11.58% 4.63% 3.79% 6.16% 8.83% 4.55% Change YoY 7.0% 43.4% 618% 19.6% Change YoY -3.0% 39.7% 40.6% 9.0% D&A (0.7) (1.4) (0.0) (2.1) (0.6) (0.8) (0.0) (1.5) D&A (2.8) (3.6) (0.2) (6.5) (2.4) (2.8) (0.1) (5.3) PPA-related amort. (0.1) (0.7) (0.0) (0.8) (0.0) (0.5) (0.0) (0.5) PPA-related amort. (0.1) (2.3) (0.0) (2.4) (0.0) (1.5) (0.0) (1.6) Provisions** (0.9) (0.2) (0.0) (1.1) (0.7) (0.3) (0.0) (1.0) Provisions** (4.8) (1.6) (1.4) (7.8) (3.9) (1.6) (0.7) (6.3) Ebit Ebit Ebit Margin 2.77% 4.26% 3.83% 3.34% 2.82% 3.99% -0.51% 3.21% Ebit Margin 2.84% 4.55% 1.78% 3.40% 3.22% 3.68% 3.37% 3.52% Change YoY 4.9% 36.9% 917% 14.5% Change YoY -7.6% 49.4% -43.4% 3.4% Profit from equity method Profit from equity method 0.9 (0.6) Net Financial Charges (0.9) (0.3) 0.0 (1.2) (0.8) (0.5) (0.0) (1.2) Net Financial Charges (2.5) (1.2) 0.0 (3.6) (3.0) (1.7) (0.0) (4.6) Income Taxes (2.1) (1.2) (0.1) (3.3) (2.1) (1.0) (0.0) (3.1) Income Taxes (8.7) (3.8) (0.3) (12.8) (9.8) (3.1) (0.4) (13.2) Net Profit (0.0) 6.0 Net Profit Eat Margin 1.75% 2.57% 1.72% 2.07% 1.80% 1.80% -0.98% 1.90% Eat Margin 1.95% 2.64% 0.11% 2.21% 2.08% 1.70% 1.19% 2.13% Change YoY 3.5% 82.7% 289% 20.4% Change YoY -1.6% 87.4% -90.0% 11.4% Group Net profit (0.0) 5.5 Group Net profit Change YoY 3.5% 102% 195% 16.7% Change YoY -2.0% 121% -88.9% 7.3% 12M results: consolidated revenues up by 7.2% YoY, Ebitda up by 9.0%, EAT up by 11.4%. Adj EAT up by 15%; strong contribution of SSI Segment (revenues up by 20.7%, Ebitda +39.7% YoY, EAT +87.4% YoY) thanks to revenues development in the value added areas of business Q results: consolidated revenues up by 10.3%, Ebitda up by 19.6%, EAT up by 20.4%; positive contribution of VAD Segment (revenues up by 6.5% YoY, Ebitda up by 7.0%, EAT up by 3.5%) and growth acceleration of SSI segment (revenues +28.3%, Ebitda +43.4%, EAT +82.7%) Adjusted 1 Net profit (0.0) 6.3 Adjusted 1 Net profit Change YoY 4.2% 77.6% 292% 22.9% Change YoY -1.3% 81.9% 53.3% 15.0% (*) Group s results gross of intercompany eliminations (**) Included non monetary items 1 Adjusted Net profit is gross of non-monetary items related to the Stock Grant plans towards Executive Directors and powered by buy back and gross of the amortization of intangible assets (client lists and technological know-how) recorded as a result of the PPA process, net of the related tax effects 16

17 1Q 2Q 3Q 4Q Average 1Q 2Q 3Q 4Q Average 1Q 2Q 3Q 4Q Average 1Q 2Q 3Q 4Q Average 1Q 2Q 3Q 4Q Average 1Q 1Q 2Q 3Q 4Q Average 1Q 2Q 3Q 4Q Average 1Q 2Q 3Q 4Q Average 1Q 2Q 3Q 4Q Average 1Q 2Q 3Q 4Q Average 1Q NWC and NFP annual average trend by Quarter Improvement in NWC management NWC/Revenues FY FY Quarterly * 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 17.3% 15.7% 13.3% 7.4% 13.3% 12.8% 11.7% 14.6% 7.3% 11.6% 12.0% 12.7% 11.2% 6.3% 10.5% 10.9% 10.2% 12.6% 6.2% 10.0% 10.7% 10.3% 11,1% 5.5% 9.4% 9.2% Average positive NFP (cash and liquidity) since FY Group NFP FY FY Quarterly ** (*) Quarterly Net Working Capital on annual rolling base Revenues; (**) Quarterly and Annual Average Net Financial Position in Euro Mn 17

18 Group Financial Results as of July 31, (Q vs Q1 ) Group Net Financial Position (NFP) (Eu Mn) Group Shareholders Equity (Eu Mn)* Jul Jul % vs Q Jul E % vs Q (E) Q1 19 Consolidated NFP improved by Eu 5.5 Mn (up 83.6%) from Eu 6.6 Mn (net debt) to Eu 1.1 Mn (net debt). Due to the seasonality of revenues during the year NFP is expected to turn active at year end (April 30, 2019) (51.9) (54.7) NFP as of April 30, (net cash equal to Eu 54.7 Mn) reflected and annual operating cash flow (FY 18) equal to around Eu 50 Mn (before M&A Investments for Eu 11 Mn, Capex for Eu 14 Mn and dividend equal to Eu 10 Mn) Quarterly Results Annual Results (68.8)(E) 0 Jul Jul 31 Jul 31 Quarterly Results Annual Results 2019E (*) Group Equity including minority interests (E) Average of Analysts Consensus for the year ending April 30, 2019 (source: Banca IMI, Intermonte Sim and Alantra, July ) 18

19 SSI VAD Group External Growth Target Overview Group Main Acquisitions Investment rationale Financial Highlights (april A) External Growth to support Group s strategy aiming at developing service solutions and valued-added areas of business Accadis (2016) 1 st Italian Hitachi HDS VAD Distributor ICOS () 6 th Italian VAD Distributor Additional Customers (CSP, MSP, MCSP, SI) & Vendors Focus on Enterprise Software, Cloud Computing and Datacenter Solutions Accadis: additional Revenues ~ Eu 15 Mn Ebitda expected ~ Eu 0.5 Mn ICOS: additional Revenues ~ Eu 45 Mn Ebitda ~ Eu 1.0 Mn* Long-term Commitment of management team of the acquired companies, through Earn Out incentive plans in order to accelerate the long term improvement of the KPIs of the business Last 2 significant acquisitions: Tech Value S.p.A (Jan ) Globo Informatica (Mar ) Yarix (Nov 2016) ERP & Industry Solutions: BMS (Jul 2015), Apra (Jul 2015), Sailing (Jul 2016), Var Prime (Nov 2016), Panthera branch (Mar ) Industry 4.0 software and services Digital Consulting SVCS Security services and consulting ERP & lndustry solutions to reach market leadership on SME and lower Enterprise Revenues ~ Eu 20 Mn, Ebitda ~ Eu 2.0 Mn Revenues ~ Eu 5 Mn, Ebitda ~ Eu 1.0 Mn Revenues ~ Eu 5 Mn, Ebitda ~ Eu 0.6 Mn Revenues ~ Eu 50 Mn, Ebitda ~ Eu 7.2 Mn Ebitda Margin of the acquired companies between 10% and 15% - 51% stake of ICOS SpA (Nov ), a VAD with Eu 45 Mn of annual revenues and Ebitda for Eu 1.25 Mn - 51% stake of Tech-Value SpA (Jan ), a company focused on PLM software and solutions to engineering intensive SMEs (1,000 Italian SME customers) with annual revenues of Eu 20 Mn and Ebitda for Eu 2 Mn (*) Target as of April 30,

20 Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of July 31 st, Historical Financials Results (Track Record E) Governance and Investors Information Annexes (Consolidated Financial Statements) 20

21 Group Annual Economic Results E as reported Revenues ** (Eu Mn) * 1,060 CAGR + 8.8% 1,462(E) 1,363 1,230 1, % YoY EBITDA (Eu Mn, % on revenues) % % % 49.5* % 5.2% 54.0 CAGR + 9.3% 4.4% % % 70.3(E) 4.8% +11.3% YoY E E EBIT (Eu Mn, % on revenues) % % 4.2% 39.9* % 3.9% 3.6% 3.5% 3.4% 51.3(E) 3.5% +10.8% YoY Net profit attributable to the Group (Eu Mn, % on * 21.8 CAGR + 9.2% revenues) 2.1% 10,0 CAGR % 1.5% 30,0 25,0 20,0 15,0 2.4% 2.2% 2.1% % % % 30.4(E) 2.1% +13.3% YoY E 5, E (*) 2014 results adjusted for non-recurring MTA listing costs (746k gross of taxes) (**) Sales and other revenues (E) Average of Analysts Consensus for the year ending April 30, 2019 (source: Banca IMI, Intermonte Sim and Alantra, July ) 21

22 Adjusted 1 Group Annual Economic Results E EBIT (Eu Mn, % on revenues) % % 4.2% 39.9* % 3.9% 3.6% 3.5% 3.4% 51.3(E) 3.5% +10.8% YoY Net profit attributable to the Group (Eu Mn, % on * 21.8 CAGR + 9.2% revenues) 2.1% 10 CAGR % 1.5% % 2.2% 2.1% % % % 30.4(E) 2.1% +13.3% YoY E E ADJUSTED 1 EBIT (Eu Mn, % on revenues) % % % * % 3.7% 4.0% 4.3% CAGR % % 55.5(E) 3.8% +10.8% YoY ADJUSTED 1 Net profit attributable to the Group (Eu Mn, % on revenues) % % * 2.1% 2.0% 2.2% 2.5% CAGR % % % 32.6(E) 2.2% +10.2% YoY E E (*) 2014 results adjusted for non-recurring MTA listing costs (746k gross of taxes) (E) Average of Analysts Consensus for the year ending April 30, 2019 (source: Banca IMI, Intermonte Sim and Alantra, July ) 1 Adjusted EBIT is gross of non-monetary items related to the Stock Grant plans towards Executive Directors and powered by buy back and gross of the amortization of intangible assets (client lists and technological know-how) recorded as a result of the Purchase Price Allocation (PPA) process. Adjusted Net profit attributable to the Group is gross of non-monetary items related to the Stock Grant plans towards Executive Directors and powered by buy back and gross of the amortization of intangible assets (client lists and technological know-how) recorded as a result of the Purchase Price Allocation (PPA) process, net of the related tax effects 22

23 Group Annual Financial Results E Group Shareholders Equity* (Eu Mn) 240.4(E) Net Financial Position (Eu Mn) 4.2 Strong Free Cash Flow Generation Net Financial Position (Cash/Net Liquidity) equal to Eu 54.7 Mn as of April 30, (up Eu 2.7 Mn compared to April 30, ) improved by 5% YoY net of gross investment equal to approximately Eu 30 Mn CAGR % E Feb 2013 (20.7) IPO 2014 (26.2) 2015 (33.9) 2016 (41.8) (51.9) (54.7) 2019E (68.8)(E) Eu 9.3 Mn Annual Dividend to be paid on September (Eu 8.7 Mn paid on September ) based on a 31% pay out ratio of Consolidated Net Profit after taxes (32% pay out ratio as of April 30, ) (*) Group s Equity before the minority interests (E) Average of Analysts Consensus for the year ending April 30, 2019 (source: Banca IMI, Intermonte Sim and Alantra, July ) 23

24 Alessandro Fabbroni Chief Executive Officer Conxi Palmero - Investor Relation Manager Group Overview ICT Market Trend Group Results as of July 31 st, Historical Financials Results (Track Record E) Governance and Investors Information Annexes (Consolidated Financial Statements) 24

25 Key Investor Information Sesa (Euro) Stock Market (1) MTA MTA - Star MTA - Star MTA - Star Q MTA - Star Stock market price DPS - Dividend per share (*) Total Dividend (Eu Mn) Pay Out Ratio (2) 31% 30% 32% 31% 31% Outstanding Shares (Mn) Market Capitaliz. (Mn) Market to Book Value (**) Dividend Yield (***) 2.8% 3.1% 2.4% 2.3% 2.0% EPS as of April 30 (****) EPS diluted as of April 30 (*****) SeSa Stock Trend Index 180% 160% 151.2% 150.4% 140% 120% 100% 80% 73.4% 60% 51.2% 41.5% 40% 26.9% 35.7% 16.1% 22.4% 27.5% 20.6% 20% 33.7% 18.5% 36.2% 19.6% 22.1% 18.1% 19.9% 0% IPO Sep 21 SeSa SpA FTSE Italia All-Shares FTSE MIB Bloomberg (September 8 th, ) 1) Listing on AIM market following the merger with Made In Italy 1 SpA (SPAC under Italian law listed on AIM) completed on February 1, Listing on MTA Stock Exchange on October 23, Transition on MTA STAR segment on February ) Dividend/Consolidated Net Profit after taxes as of April 30 of every Fiscal Year *) Dividend paid in the following year counting on the current year **) Market Capitalisation/Consolidated Group equity ***) Dividend per share/market value per share ****) Consolidated net profit/average number of ordinary shares net of treasury shares in portfolio *****) Consolidated net profit/average number of ordinary shares net of treasury shares in portfolio and inclusive of impact resulting from Stock Options/Grants Plans, warrants and/or convertible bonds. At the time of writing there are no warrants nor any kind of convertible bonds outstanding 25

26 Sesa Shareholders & Management Team Franklin Templeton 4.860% Treasury Shares 0.069% SeSa shares are listed in the MTA Italian Stock Exchange since October 23, 2013 (transition on MTA STAR Segment on February 16, 2015) Total 15,494,590 outstanding ordinary shares Market % ITH S.p.A % Shareholders N. of shares % of the total share capital Main Shareholders (according to Consob 120 Annex) The share capital of the holding company ITH SpA includes the Group s Founders and Management Team Group s Management Team with industry and business development experience: Chairman Paolo Castellacci, 71 years old, Sesa Group Founder Chief Executive Officer Alessandro Fabbroni, 46 years old, joined Sesa Group in 2008 Vice Chairman Giovanni Moriani, 61 years old, joined Sesa Group in 1980 Vice Chairman Moreno Gaini, 56 years old, joined Sesa Group in 1982 ITH SpA 8,183, % Franklin Templeton 753, % 26

27 STAR Segment Stock Exchange Governance Requirements Sesa is listed in the MTA STAR segment of Borsa Italiana (Italian Stock Exchange) dedicated to mid-size companies, compliant with the following requirements: High transparency and disclosure requirements; Liquidity (free float of minimum 35%); Corporate Governance compliant with best practices standard SeSa BoD consists of 8 members of which 4 Executive Directors, 3 not-executive Independent Directors (among them 1 appointed by minorities). Corporate Governance commitees fully consisted by Indipendent Directors Main STAR status requirements Interim financial statements available to the public within 45 days from the quarter. Half interim financial report by 60 day from the end of the 1 half Favorable auditor s report on their latest separate and consolidated annual financial statements Consolidated annual financial statements not challenged by Consob Bi-lingual publication on the website (Italian and English) post interim financial statements, annual financial reports, half-year financial reports, consolidated annual financial statements (together with any other information specified by Borsa Italiana in the Instructions) Mandatory presence of a qualified Investor Relations Manager and a specialist (eg. an intermediary charged (a) to display continuously bids and asks subject to certain limits, (b) produce researches on the issuer and (C) organize meetings between the management and professional investors) Adoption of the organizational, operational and control models provided by art.6 of Legislative Decree 231/2011 Application of a Corporate Governance Code in relation to: (i) composition of the Board of Directors, (ii) the role and functions of non-executive and independent Directors, (iii) the creation and working of internal committees of the Board of Directors, (iv) remuneration of Directors, (v) appointment of a control and risk committee 27

28 Annexes - Consolidated Financial Statements Group Overview ICT Market Trend Group Results as of July 31 st, Historical Financials Results (Track Record E) Governance and Investors Information Annexes (Consolidated Financial Statements) 28

29 Income Statement as of July 31 st, as reported Change Reclassified Income Statement (Euro/thousand) 07/31/ % 07/31/ % 2019/18 Revenues 347, , % Other income 1,927 2, % Total Revenues and Other Income 349, % 316, % 10.3% Purchase of goods 279, % 262, % 6.8% Costs for services and leased assets 29, % 21, % 38.8% Personnel costs 23, % 19, % 21.2% Other operating charges % % -2.1% Total Purchase of goods and Operating Costs 333, % 303, % 9.9% EBITDA 15, % 13, % 19.6% Amortisation tangible and intangible assets (software) 2,147 1, % Amortisation client lists and technological know-how % Accruals to provision for bad debts and risks and other non monetary costs 1, % EBIT 11, % 10, % 14.5% Profit from companies valued at equity % Net financial income and charges (1,208) (1,241) -2.7% EBT 10, % 9, % 15.9% Income taxes 3,331 3, % Net profit 7, % 6, % 20.4% Net profit attributable to the Group 6,422 5, % Net profit attributable to non-controlling interests % Adjusted 1 EBIT 12, % 10, % 16.6% Adjusted 1 Net profit 7, % 6, % 22.9% Adjusted 1 Net profiitattributable to the Group 6, % 5, % 19.6% Interim Reports approved by the Board of Directors, not audited 1 Adjusted EBIT is gross of non-monetary items related to the Stock Grant plans towards Executive Directors and powered by buy back and gross of the amortization of intangible assets (client lists and technological know-how) recorded as a result of the Purchase Price Allocation (PPA) process. Adjusted Net profit and Adjusted Net profit attributable to the Group are gross of non-monetary items related to the Stock Grant plans towards Executive Directors and powered by buy back and gross of the amortization of intangible assets (client lists and technological know-how) recorded as a result of the Purchase Price Allocation (PPA) process, both net of the related tax effects 29

30 Balance Sheet as of July 31 st, as reported Reclassified Balance Sheet (Euro/thousand) 07/31/ 07/31/ Intangible assets 43,727 23,281 20,446 Property, plant and equipment 56,089 51,198 4,891 Investments valued at equity 8,506 8,960 (454) Other non-current receivables and deferred tax assets 17,424 15,858 1,566 Total non-current assets 125,746 99,297 26,449 Inventories 83,466 77,932 5,534 Current trade receivables 327, ,429 (10,217) Other current assets 32,993 38,676 (5,683) Current operating assets 443, ,037 (10,366) Payables to suppliers 251, ,769 5,208 Other current payables 63,507 68,823 (5,316) Short-term operating liabilities 315, ,592 (108) Net working capital 128, ,445 (10,258) Non-current provisions and other tax liabilities 14,131 8,614 5,517 Employee benefits 21,578 17,809 3,769 Non-current liabilities 35,709 26,423 9,286 Net Invested Capital 218, ,319 6,905 Equity 217, ,738 12,405 Medium-Term Net Financial Position 138, ,249 15,299 Short-Term Net Financial Position (137,467) (116,668) (20,799) Total Net Financial Position (Net Liquidity) 1,081 6,581 (5,500) Equity and Net Financial Position 218, ,319 6,905 Change 2019/18 Interim Reports approved by the Board of Directors, not audited 30

31 Income Statement as of April 30 th, as reported Change Reclassified Income Statement (Euro/thousand) 04/30/ % 04/30/ % /17 Revenues 1,350,900 1,260, % Other income 12,135 11, % Total Revenues and Other Income 1,363, % 1,271, % 7.2% Purchase of goods 1,114, % 1,055, % 5.6% Costs for services and leased assets 102, % 85, % 20.8% Personnel costs 79, % 70, % 12.8% Other operating charges 3, % 3, % 14.4% Total Purchase of goods and Operating Costs 1,299, % 1,213, % 7.1% EBITDA 63, % 57, % 9.0% Amortisation tangible and intangible assets (software) 6,546 5, % Amortisation client lists and technological know-how 2,438 1, % Accruals to provision for bad debts and risks 7,847 6, % EBIT 46, % 44, % 3.4% Profit from companies valued at equity % Net financial income and charges (3,635) (4,621) -21.3% EBT 43, % 40, % 6.7% Income taxes 12,848 13, % Net profit 30, % 27, % 11.4% Net profit attributable to the Group 26,861 25, % Net profit attributable to non-controlling interests 3,322 2, % Adjusted 1 EBIT 50, % 47, % 6.5% Adjusted 1 Net profit 32, % 28, % 15.0% Adjusted 1 Net profiitattributable to the Group 29, % 26, % 11.3% Financial Statements approved by the Board of Directors and audited by PWC 1 Adjusted EBIT is gross of non-monetary items related to the Stock Grant plans towards Executive Directors and powered by buy back and gross of the amortization of intangible assets (client lists and technological know-how) recorded as a result of the Purchase Price Allocation (PPA) process. Adjusted Net profit and Adjusted Net profit attributable to the Group are gross of non-monetary items related to the Stock Grant plans towards Executive Directors and powered by buy back and gross of the amortization of intangible assets (client lists and technological know-how) recorded as a result of the Purchase Price Allocation (PPA) process, both net of the related tax effects 31

32 Balance Sheet as of April 30 th, as reported Reclassified Balance Sheet (Euro/thousand) 04/30/ 04/30/ 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, Other non-current receivables and deferred tax assets 17,264 13,998 3,266 Total non-current assets 120,747 94,417 26,330 Inventories 67,752 61,570 6,182 Current trade receivables 328, ,399 13,361 Other current assets 37,423 25,407 12,016 Current operating assets 433, ,376 31,559 Payables to suppliers 295, ,984 24,722 Other current payables 62,967 52,847 10,120 Short-term operating liabilities 358, ,831 34,842 Net working capital 75,262 78,545 (3,283) Non-current provisions and other tax liabilities 14,175 8,457 5,718 Employee benefits 20,495 17,427 3,068 Non-current liabilities 34,670 25,884 8,786 Net Invested Capital 161, ,078 14,261 Equity 216, ,028 16,973 Medium-Term Net Financial Position 123,172 81,118 42,054 Short-Term Net Financial Position (177,834) (133,068) (44,766) Total Net Financial Position (Net Liquidity) (54,662) (51,950) (2,712) Equity and Net Financial Position 161, ,078 14,261 Change /17 Financial Statements approved by the Board of Directors and audited by PWC 32

33 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 securities/financial instruments issued by the Company. This presentation can not be employed in a public offer or investment solicitation. As a result, the Company, its directors, employees, contractors, and consultants do not accept any liability in relation to any loss or damage, costs or expenses suffered by any person who relies on the information contained in this document or otherwise arising from the use of the same and any such liability is expressly disclaimed. The Company does not assume any responsibility for the accuracy, sufficiency and completeness of the information contained in this document or in respect of any errors, omissions, inaccuracies contained in it. The presentation at any time is subject to updates and modifications by the Company. However, SeSa does not assume any obligation to communicate or otherwise make known any changes and updates. The document is not intended as, nor should it be regarded as a complete and comprehensive description of the Company and does not necessarily contain all the information that the recipients may consider relevant in relation to the Company. The provision of the Document does not give the recipient any right to access more information. Sesa Manager in Charge and the officers preparing the Company financial reports hereby certify pursuant to paragraph 2 of art. 154-bis of Legislative Decree no. 58 of February 24, 1998, that the accounting disclosures of this document are consistent with the accounting documents, ledgers and entries. This presentation contains forward-looking statements regarding future events and results of the Company that are based on the current expectations, projections and assumptions of the management of the Company. These declarations, being based on expectations, estimates, forecasts and projections, are subject to risks, uncertainties and other factors that depend on circumstances beyond the company's control and are not guarantees of future performance: the results or actual performance may therefore be different, even significantly, from historical and / or from those obtained and the Company does not assume any liability with respect thereto. Reproduction, redistribution or transmission to third parties, or part, of this document are forbidden. Participation in the presentation or receipt of this document constitutes your acceptance of the terms and restrictions above. 33