company presentation - exprivia
TRANSCRIPT
Company Presentation
Milan - March 16, 2016
Borsa Italiana - STAR Conference
2
1. EXPRIVIA TODAY
2. 2015 FINANCIAL DATA
3. BUSINESS PLAN 2015-2020
3
Exprivia at a glance
Exprivia SpA is an Italian company listed on Borsa Italiana Stock Exchange, focused on the design and development of innovative IT solutions, with international reach through its
presence in Italy, Europe, America, China.
Values in Million Euro
8.7
9.9 10
2013 2014 2015
EBIT
37.4 29.7
36.3
2013 2014 2015
Net Debt
131.1
147.2 144.8
2013 2014 2015
Revenues
2.9 3.0
4.6
2013 2014 2015
Net Result
13.5
14.5 15.3
2013 2014 2015
EBITDA
71.2 72.7
74.2
2013 2014 2015
Net Equity
4
The Group
EXPRIVIA S.p.A.
Exprivia Telco & Media
Spegea S.ca.r.l.
Spain Mexico Brazil Asia
Exprivia Project
Exprivia Enterprise Consulting
Exprivia Digital
Financial Solution
Exprivia Healthcare
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International Coverage
Exprivia is an italian Group…with an international view
ITALY Molfetta (BA) - Headquarters
Trento, Vicenza, Milan, Piacenza, Rome, Palermo
SPAIN Madrid, Las Palmas
CHINA Beijing, Shanghai,
Suzhou, Hong Kong
NORTH AND CENTRAL AMERICA
Mexico City, Monterrey, Guatemala City
SOUTH AMERICA Lima, Rio de Janeiro,
São Paulo, Sãn Bernardo do Campo
6
1988
1983 2005
2006
2007
Establishment (as AISoftw@re)
Abaco establishment
Merger of AlSoftw@re and Abaco
Renaming of the Group to Exprivia
Acquisition of Svimservice
and Wel.Network
2008
Acquisition of Aurora Web business unit (Siemens) and
Datilog
Acquisition of Spegea, Infaber, Network
Services and Exprivia Sl (Spain)
2010
Acquisition of Prosap Group (Spain, Mexico
and Guatemala)
2009 2011
Acquisition of Realtech Italia and Sistemi
Parabancari
2012
Acquisition of Exprivia do Brasil
Milestones
Opening Representative office
in China
2013
2014
Acquisition of Devoteam and establishment of
Exprivia Asia and Exprivia IT Solutions
(China)
2015
ACS
7
Business Model
Market
Capital Market Credit & Risk Management SAP Social & Web 2.0 IT Governance & Infrastructure Business Analytics BPM & EAM Business Process Outsourcing
Cap
abili
tie
s
Healthcare
Trading Room
Credit & Risk Management
Mobile
Information
Infrastructure Monitoring
SAP Suite
Security
Voice Recognition
Solu
tion
s
Ener
gy &
Uti
litie
s
Hea
lth
care
Ind
ust
ry
Ban
ks, F
inan
ce, I
nsu
ran
ce
Def
ence
, A
eros
pace
, Pu
blic
Sec
tor
Telc
o &
Me
dia
8
43.047.0
65.8
95.9 90.1100.0
120.2
132.5 131.2
147.2 144.8
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenues Ebitda
€m €m
Net Result
€m
CAGR 2005-2015
[12.9%]
A story of Growth
CAGR 2005-2015
[20.4%]
CAGR 2006-2015
[17.1%]
Employees (FTE)
2.4
5.6
10.1
15.214.6
15.3
13.5
12.413.1
14.5
15.3
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-2.7
1.1
3.5
6.9
5.0 4.9
3.2
2.42.9 3.0
4.6
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
635700
1,179
1,2771,243
1,394
1,813 1,792 1,806
1,976 1,902
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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Business area breakdown
Italia 126,748
International 12,613
Revenue by business area Type of Customer
First 10 customers
38% Remaining customers
62%
Revenue Cluster
(*) It includes revenues earned abroad by Italian companies
Values in K Euro at 31.12.2015
Banks, Finance and Insurance,
25,606
Industry, 11,689
Oil & Gas, 15,725
Telco & Media, 19,307
Healthcare, 22,018
Energy & Utilities, 21,933
Defence, Aerospace and Public Sector,
11,221
International Area, 10,439
Other, 1,423
Exprivia Spain
Exprivia S.L. and Prosap ES merge
Exprivia Mexico LATAM Network
Direct Control from Exprivia through capital increase by which expand in other emerging countries of Latin America.
Guatemala Perù Ecuador Bolivia Colombia Panama Costa Rica Argentina
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Consolidation Strengthening
Exprivia do Brasil
Complete the investments to expand its presence in the Telco - Healthcare and SAP / ERP markets.
Exprivia China
Consolidate its presence in IT Infrastructure and SAP / ERP markets. Complete the investments to expand its presence in the Healthcare market.
1 2 3 Expansion
Europe
Partners with Telco, Finance, and Healthcare expertise and solutions for J/V and/or M&A.
Internationalization
2016 INTERNATIONAL PLAN
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1. EXPRIVIA TODAY
2. 2015 FINANCIAL DATA
3. BUSINESS PLAN 2015-2020
12
Exprivia at a glance
Exprivia SpA is an Italian company listed on Borsa Italiana Stock Exchange, focused on the design and development of innovative IT solutions, with international reach through its
presence in Italy, Europe, America, China.
Values in Million Euro
8.7
9.9 10
2013 2014 2015
EBIT
37.4 29.7
36.3
2013 2014 2015
Net Debt
131.1
147.2 144.8
2013 2014 2015
Revenues
2.9 3.0
4.6
2013 2014 2015
Net Result
13.5
14.5 15.3
2013 2014 2015
EBITDA
71.2 72.7
74.2
2013 2014 2015
Net Equity
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68.68 71.19 72.73 74.20
54.91 51.09 46.45 47.21
63.53 62.07 74.75 57.4
2012 2013 2014 2015
Equity Debt Other
16.2 17.4 19.4 19.8
74.2 70.5 74.6 66.0
5.3 7.212.1
7.0
91.5 89.887.8
86.0
2012 2013 2014 2015
Fixed asset Not-fixed asset Cash Others
58.1
17.1 0.3
Accounts receivables Accounts Payables Inventories
Capital structure (€ m)
NWC
Capital Structure and NWC
% on revenues 23% 17% 24%
2013 2014 2015
Net Debt/Ebitda 2.76 2.06 2.37
2013 2014 2015
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Financials - (de)leverage
Ratio Net debt / Ebitda 2.37 nel 2015
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
0.00
20.00
40.00
60.00
80.00
100.00
120.00
2012 2013 2014 2015
Net Debt Equity Net Debt/Ebitda
ml
15
Normalized
Net S/T indebtedness
Net L/T Indebtedness
NFP
NFP bridge (€ 36.4 m)
Net debt
-37.1
-9.5
10.3
-36.4
Cash
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Financials - NWC
gg.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
160
180
200
220
240
260
280
300
2012 2013 2014 2015
DSO customer + wip DPO supplier NWC % revenues
17
1. EXPRIVIA TODAY
2. 2015 FINANCIAL DATA
3. BUSINESS PLAN 2015-2020
The 3 phases of the business plan
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1
2
2015-2016 2017-2018
HR
Organization
Business Cluster
Profitability
Cash
M&A systematic
Continue endogenous growth
Strong international positioning
Profitability & Cash 3
2019-2020
Worldwide expansion
Clear market leadership
Among the firs 5 Italian IT
Company
Digital Transformation
• People-centered
• Centrality of the relationship
• Centrality of cities
Change the way to use the information
• All information available, now!
• Availability and synthesis (also vs. exactly)
• Tendency to abandon the causality search in favor of the correlation (star relationship vs. hierarchy)
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Digital Reinassance
The Future for Exprivia
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• Exprivia considers that the digital transformation focuses on the centrality of the person within cities.
• Cities will need to be efficient and eco-friendly.
• It foreshadows a strong correlation between habitability, efficiency and access through IT.
Exprivia and the technology
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Is the universe of available
elementary entities (sensors, machines,
switches, ...)
Techniques with
which the entities
will be connected
and monitored to
provide summary
and aggregate
information
Place where the information resides
and where the transformations
take place
Platform where the information
will be organized for the distribution
and use
(Customer Experience)
CRM Cloud Big Data, Analytics IoT
Internationalisation: the Vision
22
• Continue the business expansion and the growth prospects beyond national geographical boundaries.
• Develop in the individual business organizations the instances of contamination and connection coming from a business context and globalized economy.
• Re-engineer business processes by developing Group best practices easily replicable and adaptable to different social cultural and regulatory contexts.
• Geographical areas as offer vehicle
• New entrance geographical areas (major European countries, Asia, Middle East)
• Opportunity driven areas
TARGET MARKETS
Internationalisation: the Strategy
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International Markets
INTERNATIONAL NETWORK
Actions with customers / players / national and
international bodies with which to operate abroad
Input in selected markets through Mergers &
Acquisitions and greenfield investments
INT’L OPERATIONS MANAGER
GLOBAL ACCOUNT MANAGER
INTERNATIONAL OFFERING
Reindustrialization of solutions and services to make available in foreign markets our competitive
differentials
GLOBAL PRODUCT MANAGER
Group standard procedures
Partnership: Industrial-scientific-institutional-financial
Portfoglio
Change Management
DIRECT INVESTMENTS
R&S
During the previous programming period the activities were focused on the following areas:
• Cloud/SaaS: integration of multi business components for assembly of new SaaS Services, integration with Expo2015 framework (E015);
• Big Data and Mobile Assistant: customer loyalty management, recomendation systems, analysis and suggestion of expending;
• Energy Optimization: energy efficiency in building monitoring and identification of efficiency strategies;
• Mobile Ticketing: pay parking and urban transport, Open Date integration of regional public transport timing, planning the optimal route by public transport, traffic forecasts;
• Health 2.0: quality of life monitoring for elderly and frail people, Bioinformatics and Personalized Medicine through the use of genetic information.
24
The future developing program
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• Products on cloud platforms: Edotto, SAP applications, the Home Factoring Solutions, Let's Care, ...
• Hybrid Cloud: cloud-on premise integration challenges Cloud Computing
• Enterprise Application Store: relate the business park application with the paradigm Mobile, use of mobile devices in the workplace, privacy and security
• Smart Cities
• Wellness and personal care: Assisted Living Environment, Telemedicine, medical records, wearable devices
• Manifattura intelligente
• Predictive and Advanced Analytics instruments: Security, Marketing Support
• Big Data in Cloud solutions
• Predictive Analysis: fault management on the production chain, sales forecasting, marketing campaign management …
• Internet of Things: IT Manufacturing, smart factory
Mobile e Bring Your Own Device
Internet of Things
Big Data
SAP
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• Target: 360 million for exogenous and endogenous growth
• Endogenous growth: for two-year periods: 2%, 5%, 10%
• Exogenous growth: 155 million in six years Revenues
• Target: >12% in six years including the exogenous growth
• In absolute value : 44 Million in 2020
• NWC / Revenues≈ 30%,
• Debt / Equity <= 1,
• NFP / EBITDA < 3
• NFP/EBITDA = 2 from 2015, < 2 and down from 2016
• DSO (customer + WIP) around 175 days for the whole period of the plan
• DPO aligned to DSO
• NWC / Revenues less than 20% from 2017
EBITDA
Target of Acquisition
CAPEX
PFN
• Investments in the development of proprietary software in Medical and Banks Markets (1.5 to 1.7 Million each Year)
• Net of extraordinary operations in 2015-2022 the CAPEX/depreciation ratio will remain around 1.
The future developing program
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Total Revenues
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
2014 2015 (e) 2016 (e) 2017 (e) 2018 (e) 2019 (e) 2020 (e)
Ricavi da crescita interna Ricavi da crescita esterna
• More than doubling of total revenue target of the Plan to 360ml in 2020, of which 205ml with the actual perimeter and 155ml from exogenous growth, CAGR + 16%
• Horizon of the plan of 6 years, endogenous growth divided into three two-year periods:
• 2015-2016: Consolidation
• 2017-2018: + 5% / year,
• 2019-2020: ≈ + 10% / year
• ABROAD: ≈20% in 2020
• CAGR: +6%
Mili
on
i
28
Significant recovery in 2015 (+ 15% on 2014, ≈150mbps, the company returns to the level of 2011 in terms of percentage)
Plan Target:
EBITDA of 44ml to 2020 (three times in 2014, CAGR + 21%)
EBITDA margin 12.3% including the contribution from acquisitions
Total EBITDA
11.5%
9.8%
11.3% 11.5% 12.3%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
2011 2012 2013 2014 2015 (e) 2016 (e) 2017 (e) 2018 (e) 2019 (e) 2020 (e)
Ebitda margin Ebitda margin %
Mill
ion
Eu
ro
29
Horizon of the plan of six years, divided into three two-year period:
• 2015-2016: Consolidation
• 2017-2018: + 5% / year
• 2019-2020: ≈10% / year
• ABROAD: ≈20% in 2020
• CAGR: + 6%
Revenues from internal growth
-
50.0
100.0
150.0
200.0
250.0
2011 2012 2013 2014 2015(e)
2016(e)
2017(e)
2018(e)
2019(e)
2020(e)
Ricavi Italia Ricavi estero
Mill
ion
s
30
The target, at closing, is expected to have the following parameters:
• NWC / Sales ≈ 30%,
• D / E = <1,
• NFP / EBITDA <3
The total equity value needed to acquisition program to achieve the acquisition program assumed in the Plan is estimated ≈35 ml €, financed using debt capacity without stressing financial ratios.
The acquisition targets
3.2 3.5
2.9
2.0 2.3 1.9 1.7
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
0.0
50.0
100.0
150.0
200.0
250.0
2011 2012 2013 2014 2015(e)
2016(e)
2017(e)
2018(e)
2019(e)
2020(e)
PFN Equity PFN / EBITDA
Mill
ion
Eu
ro
31
Italian Stock Exchange – STAR N. of shares outstanding: 51.9 m Price as of 14/03/16: € 0.82 Capitalization: € 42 milion Bloomberg: XPR IM Reuters: XPR.MI
Shareholding
Board of Directors
Share Informations Stock Chart
Domenico Favuzzi Chairman and CEO
Dante Altomare Vice Chairman
Abaco Innovazione
SpA 46.50%
Merula Srl 2.71%
Treasury shares 5.09%
Free Float 45.71%
Company profile
Rosa Daloiso Non-executive Director
Mario Ferrario Non-executive Director
Marco Forneris Non-executive Director
Valeria Savelli Non-executive Director
Vito Albino Independent Director
Angela Stefania Bergantino Independent Director
Alessandro Laterza Independent Director
Gianfranco Viesti Independent Director
Gianni Sebastiano Chief Financial Office - IRM
Discaimer
This presentation contains estimates including information relating to the financial performance of the Company and market trends. Estimates are based on assumptions that management believes are reasonable and credible to date.
Estimates may be subject to variations and changes in the macroeconomic scenario. Actual results may also differ from the information set forth herein.
This document does not constitute a solicitation nor does it represent indications for purchase and a sale of the Group’s shares and is addressed to the financial community.
Contacts
32
Investor Relations
Gianni Sebastiano
e-mail: [email protected]
Tel. + 39 0803382070 - Fax. +39 0803382077