Group Presentation

ANNUAL RESULTS AS OF APRIL 30, 2020

Board of Directors - July 14, 2020

Last Year main achievements

FY 2020 record set of financial results

Revenues eu 1,776 mn, +14.5% YoY

Ebitda eu 94.5 mn, +27.2% YoY, Ebitda margin 5.32% (vs 4.79% YoY) EAT adjusted eu 41.2 mn, +31.2% YoY

NFP (cash & liquidity) for eu 54.7 mn, +12.9 mn YoY

Human Capital Growth

2,547 employees as of April 30 2020, +647 YoY

New skills in growing segments of digital transformation

M&A acceleration since January 2020

Margin accretive acquisition values and low integration costs Long term partnership with key people

Digital Security

End Point Security

Cloud solutions

Software WMS

Cognitive & Analytics

Retail SW & Vertical

Refurbished Technology

Business Services

Increase to 100% of Yarix, revenues ∼ Eu 20 mn

Acquisition of 55% of Clever Consulting, revenues ∼ Eu 4.2 mn Increase to 55% of zero12 Srl, revenues ∼ Eu 2.3 mn Acquisition of 51% of Infolog SpA, revenues ∼ Eu 4.5 mn

Majority stake of Analytics Network & SPS Srl revenues ∼ Eu 6 mn Acquisition of 100% of Di.Tech, revenues ∼ Eu 21 mn

Increase to 55% of Service Technology, revenues ∼ Eu 6 mn Launch of new Group Sector Base Digitale, revenues ∼ Eu 50 mn

2

Alessandro Fabbroni - Chief Executive Officer

Conxi Palmero - Investor Relation Manager

Business model and strategy

Group Results as of April 30, 2020

Governance and Investors Information

Annexes Financial Statements

3

Business Model and Strategic Pillars

Italian leader in Software and System Integration for SME & Enterprise

Leading digital partner

Italian leader in Value Added Distribution

Launch of new Group Sector Business Services

Double Digit growth since 2011 (Ebitda CAGR 2011-20 +11.9%)

A history of continuous growth and resiliency

Business resiliency

Strong cash flow generation

Digital Transformation

Organic growth embracing new digital trends

Cloud services and Collaboration

Digital security

∼ Eu 300 million revenues from 21 M&A deals in the last 6 years

M&A as acceleration driver

Margin accretive acquisition values and low integration costs

Long term partnership with key people

Multi-cloud services and Collaboration

XaaS (Everything as a Service) and Cloud solutions

Growing share of Recurring Revenue on total turnover FY2020 (25%)

Focus on sustainability

∼ 3,000 employees, 99% under permanent contract

Over 20,000 training hours in FY 2020

Welfare and retention program

4

Group Structure and Market Position

SeSa Group is a leading Italian digital

Consolidated revenues of Eu 1.8 Bn1 and

services and solutions provider

2,547 employees1

Key player driving digital transformation to the Italian economy

Technology, digital services and business applications embracing new digital trend

Corporate

Group's Strategy, Governance, Human Resources, Finance and Control, Legal, ICT, Operations, M&A through the parent company SeSa S.p.A. Revenues for Eu 20 Mn (FY 2020), 180 human resources

Value Added Distribution («VAD»)

Value-added distribution ("VAD") with over 13,000 business partners through the fully owned company Computer Gross S.p.A. ("CG").

Revenues for Eu 1,45 Bn (FY 2020), Ebitda Eu 53.3 Mn, 394 human resources

Business Services («Base Digitale»)

Business Services and Business Process Outsourcing, focused on Financial Enterprise, through the controlled company Base Digitale S.p.A. Revenues for Eu 50 Mn, Ebitda Eu 2.8 Mn, 290 human resources (Group consolidation since March 2020)

Software and System Integration («SSI»)

System integration and digital with a customer base of over 10,000 SMEs and Enterprises, through the fully owned company Var Group S.p.A. Revenues for about 400 Mn (FY 2020), Ebitda Eu 37.8 Mn and 1,783 human resources

(1) Financial Statements as of April 30, 2020

5

Leadership in Italian VAD market

1,452 Mn revenues, 53.3 Mn of Ebitda and 394 employees

Italian market share (1)

Revenues breakdown

Customer base of over 13,000 BPs (Software Houses, System Integrators, MSP, CSP) and full coverage of the Italian territory (15 B2B branches)

Long-termpartnerships with about 100 major IT Vendors (no termination of any relevant Vendor)

400 highly skilled human resources with 500 technical certifications on IT Vendors solutions

Cloud platform (Solution Up) to enable and develop SaaS, IaaS and XaaS solutions

Leadership in Italian VAD market, ∼ 47% market share (64% in Enterprise Software)

64%

36%

50%

50%

40%

60%

27%

73%

Others 23.5%

Ingram

Micro Italia

6.0%

Tech Data

9.1%

Esprinet

14.7%

Device &

Computer

Add-on

Cloud &

Gross

24%

Enterprise

46.7%

Software

30%

Networking

  • Collab.
    8%

IT Services

Datacenter

12%

26%

Cloud & Enterprise Software

Datacenter

Packaged Services

Networking & Collaboration

Computer Gross

CLOUD & ENTERPRISE SOFTWARE

30% of 2020 revenues

  • Saas and Cloud program development
  • New relevant agreements in Digital Media (Adobe) and Security (Palo Alto, Red Hat, Fortinet)

DATACENTER

Device & ADD-ON

IT SERVICES

26% of 2020 revenues

24% of 2020 revenues

12% of 2020 revenues

• Long Term partnership with main

• Growing demand of Collaboration and

• Education, marketing and technical

players on Data Center technology

Digital Work Place

services to enable customers from

• Supporting main Vendors on XaaS

• Smarter add-on and IoT

new complex ecosystems (MSPs, CSPs)

(Everything as a Service) evolution

NETWORKING & COLLABORATION

8% of 2020 revenues

  • Collaboration and connectivity, relevant drivers with Multi Cloud & Hybrid organizations

(1) Source Sirmi (June 2020), market share on total Italian VAD market, CG market share including of ICOS (CG controlled company)

6

Digital and Innovation Partner for Enterprises and SMEs

  • 400 Mn revenues, 37.8 Mn of Ebitda (9.5%) and 1,783 employees

Full offering of digital solutions under 6 business units

Hybrid Cloud services (SaaS, PaaS, IaaS) integrating public cloud and datacenter services (datacenter in Empoli and Milan)

Offering of Business and Vertical Applications for Italian districts: growing focus on Digital Transformation Solutions (Vertical Solutions, Customer Experience, Data Analytics, Digital Process)

8 relevant M&A over the last 3 years focused on the most innovative areas of IT

Coverage of Italian territory (23 branches) and some European countries (3 branches in Germany, 1 in Spain, 1 in Romania). 1 branch in China to support e-commerce and internationalization of European companies

Revenues breakdown

Digital Cloud 5%

Customer Experience

Digital2%

Security

6%

Digital

Process

Managed

Services

7%

49%

ERP & Vertical

Solutions

31%

MANAGED SERVICES

49% of 2020 revenues

  • Digital workplace and Collaboration
  • Service desk
  • Application management

ERP & VERTICAL SOL.

31% of 2020 revenues

  • ERP Solutions on Intern. platforms (SAP, Microsoft )
  • Proprietary ERP & Vertical for SMEs and Enterprises (Wine & Food, Furniture, Mechanics, Food Distrib., Pharmaceutical)

DIGITAL PROCESS

DIGITAL SECURITY

7% of 2020 revenues

6% of 2020 revenues

•

Product Lifecycle

•

Security Assessment

Management (PLM)

•

Cyber Intelligence and

•

Smart Industry Solutions

malware analysis

• 6 branches in Italy, 3 in

•

Security Operation Center

Germany, 1 in Spain

(SOC)

DIGITAL CLOUD

CUSTOMER EXPERIENCE

5% of 2020 revenues

2% of 2020 revenues

• SaaS and XaaS, Hybrid

•

Marketing & Digital Strategy

•

Cloud Solution

•

Branding & Creativity

Network Operations

•

Omnichannel commerce (1

•

Center (NOC)

branch in China)

Serverless architecture

7

Business Services

  • 50 Mn revenues, 2.8 Mn of Ebitda and 290 employees

New Group Sector since March 2020

Business Services and Process Outsourcing for Financial Sector

Major customers operating in Financial Industry

Multi-year partnership with main global service, financial and advisory players

Digital process services to enable efficiency and digital transformation of Financial Enterprise

Revenues breakdown 2020

Digital Transformation

10%

Security

Business

Services

Services

50%

40%

BUSINESS SERVICES

50% of 2020 pro-forma revenues

SECURITY SERVICES

DIGITAL TRANSFORMATION

40% of 2020 pro-forma revenues

10% of 2020 pro-forma revenues

  • Business services, business process outsourcing ("BPO"), to support customers
  • Focus on human capital quality, organization and digital transformation
  • Security services and control room for the Finance and Food Distribution Retail
  • Through the fully owned subsidiary ABS Technology Srl
  • Digital design and processes
  • Content and information management thanks to multi- year partnership with OpenText

BS

-

B.Services Srl

-

ABS Technology SpA

8

A history of continuous growth and resiliency

Gateway to digital technology

Long term partnerships

•

Italian SME & Enterprises reference player

•

Focus on main digital trends

1,776

•

Skills and solutions on growing digital trends

•

No termination of any relevant partnership

1,551

Sustainable Growth since 1973

1,363

1,271

Global players partnerships on main digital

1,230

innovation trends

1,060

•

M&A driver of human capital development

948

747

812 832

Covid-

665

19

570

579

604

Pan

demia

476

522

546

Financial

Credit

402

Crunch

366

Crisis

339

2011/2012

2008/2009

261

ITA GDP

ITA GDP

148 185

(-2.8%)

(-6.6%)

24

42

75

Group

Group

7

Growth

Growth

Group

Consolidated

sales

& other revenues in Eu Mn

(+9%)

(+4%)

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

21

48

67

90

148

185

225

293

316

347

551

601

633

666

701

738

777

818

863

912

974

1,150

1,215

1,427 1,642

1,900 2,547

Group Resilience to market crisis

M&A and human capital to drive

sustainable growth

Double Digit Annual

Track Record since 2011

Revenues

CAGR 2011-2020

Eu 1,776 Mn

+10.1 %

EBITDA

CAGR 2011-2020

Eu 94.5 Mn

+11.9%

EAT Adj

CAGR 2011-2020

Eu 41.2 Mn

+15.2%

NFP - net liquidity

Oper. Cash flow1

Eu 54.7 Mn

Eu 95 Mn

(1) Including Working Capital Change, excluding Capex and M&A

9

M&A as acceleration driver

21 M&A since 2015: Eu 302 Mn revenues, 29 Mn Ebitda, ∼ 80 Mn of investments, 1,250 skilled people

REVENUES

EBITDA

VAD

SSI

Business Services

2015

2016

2017

2019

2018

Eu 36.5 Mn

Eu 23.0 Mn

Eu 56.0 Mn

Eu 22.5 Mn

Eu 39.0 Mn

Eu 2.5 Mn

Eu 2.4 Mn

Eu 2.5 Mn

Eu 3.0 Mn

Eu 3.2 Mn

Revenues Eu 18 m

Revenues Eu 50 Mn

Revenues Eu 20 Mn

Ebitda Eu 0.5

Ebitda Eu 1.5 Mn

Ebitda Eu 0.7 Mn

Revenues Eu 16.0 Mn

Revenues Eu 4.0 Mn

Revenues Eu 6.0 Mn

Revenues Eu 6.5 Mn

Revenues Eu 10 Mn

Ebitda Eu 1.0 Mn

Ebitda Eu 0.6 Mn

Ebitda Eu 1.0 Mn

Ebitda Eu 0.9 Mn

Ebitda Eu 1.5 Mn

Revenues Eu 2.5 Mn

Revenues Eu 5.0 Mn

Revenues Eu 16.0 Mn

Revenues Eu 9.0 Mn

Ebitda Eu 1.0 Mn

Ebitda Eu 0.75 Mn

Ebitda Eu 2.1 Mn

Ebitda Eu 1.0 Mn

Revenues Eu 14.0 Mn

Ebitda Eu 1.0 Mn

New Group Sector Base Digitale, since March 2020

2018

2019

Long-term value generation, average entry value EV/Ebitda multiple 4.75

2020

Eu 88.7 Mn

Eu 8.7 Mn

Revenues Eu 6 Mn Ebitda Eu 0.7 Mn

Revenues Eu 6.0 Mn

Ebitda Eu 0.8 Mn

Revenues Eu 4.2 Mn

Ebitda Eu 1.0 Mn

Revenues Eu 19.0 Mn

Ebitda Eu 2.0 Mn

Revenues Eu 6.0 Mn

Ebitda Eu 1.0 Mn

Revenues Eu 2.5 Mn

Ebitda Eu 0.6 Mn

Revenues Eu 45.0 Mn

Ebitda Eu 2.8 Mn

At acquisition

  • Eu 266 Mn
  • Eu 22 Mn

Revenues Eu 100 Mn

Ebitda Eu 4.0 Mn

Ebitda 4.0%

Revenues Eu 120.7 Mn

Ebitda

Eu 15.4 Mn

Ebitda 12.8%

Revenues 45Mn

Ebitda 2.8 Mn

Ebitda 6.2%

+13.5%

+31,8%

As of today

  • Eu 302 Mn
  • Eu 29 Mn

Revenues Eu

111 Mn Ebitda Eu 4.7 Ebitda 4.2%

Revenues Eu 141.9 Mn

Ebitda

Eu 20.3 Mn

Ebitda 14.3%

Reven. Eu 50 Mn

Ebitda Eu 3.5 Mn

Ebitda 7.0%

10

Focus on Sustainability and Human Capital

Human capital development as strategic driver of Group sustainable long-term growth

Recruitment Programs

Professional skills in main digital transformation trends (cloud, security, analytics, cognitive, collaboration). Recruiting

programs with hiring of 200 qualified new people in FY2020

Training Programs

Welfare Programs

Training and education

Corporate welfare

programs to develop

programs aimed at

human capital skills and

increasing HR wellness

habilitate innovation

and work-life balance,

technology and digital

supported by non-profit

services (over 20,000

foundation "Fondazione

hours in FY2020)

Sesa"

Social Responsibility

Commitment to sustainable growth and value generation towards all stakeholders (human capital, environment and social communities)

+1,120 people

in 3 years

.

2,547

1,900

HR CAGR 2011-20 +13.4%

1,642

1,427.

1,215

1,150

912

974

818

863

777

99% of Human Capital under

permanent employment1

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

1 Group Employees as of April 30, 2020

11

Group Annual Results as of April 30, 2020

+14.5%

1,776 Y/Y

1,551

1,363

1,230 1,271

Revenues *

948 1,060

(Eu Mn)

747

812

832

CAGR + 10.1%

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30 Apr 30

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Group

41.2

Adj. NP

+31.1%

Y/Y

margin

31.4

Group

26.1

28.6

24.8

Adjusted

20.7

21.8

Net Profit 1

16.8

19.9

(Eu Mn, %

on revenues)

11.5

1.5%

2.1%

2.4%

2.2%

2.1%

2.0%

2.1%

2.1%

2.0%

2.3%

CAGR + 15.2%

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

  1. EAT after minorities Adjusted for PPA amortization, net of tax effect (Eu 4.6 Mn in FY2020, Eu 3.3 Mn in FY2020 net of Tax effect)
    1. Sales and other revenues

EBITDA

94.5

+27.1%

Y/Y

margin

74.3

57.9

63.1

EBITDA

44.2

49.7

51.6

54.0

(Eu Mn, %

34.4

41.3

on revenues)

4.6%

5.1%

5.3%

5.2%

4.9%

4.4%

4.6%

4.6%

4.8%

5.3%

CAGR + 11.9%

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

53.5

Up by

Eu 12.9

Mn2

Group NFP

4.2

(Eu Mn)

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

(20.7)

(26.2)

(33.9)

Feb 2013 IPO

(41.8)

(41.8)

(51.9) (54.7)

(54.7)2

(2) NFP active (net liquidity) for eu 75.5 mn gross of Ifrs 16 adoption (up by 33.8 mn YoY excluding Ifrs 16 adoption)

12

Group Annual Results as of April 30, 2020 by Segments

Group Revenues Eu Mn (*)

+14.5% 1,776 Y/Y

EBITDA Eu Mn

Net profit (EAT) Eu Mn (**)

Revenues by Segment (*)

1.1%1.5%

17.7%21.1%

1,551

1,363 342.8

1,271

289.4

239.8

396.0

94.5

+27.1%

Y/Y

74.3

37.8

63.19.5%

57.926.2

20.7 7.7%

14.8

7.1%

6.2%

42.2

+26.5%

Y/Y

33.4 12.0

30.23.0%

27.19.6

4.1

7.6

2.8%

1.7%

2.6%

Apr 30

Apr 30

20172020

81.2%77.4%

EBITDA by Segment

2.3%

3,6%

25.5%

40.0%

Apr 30

Apr 30

1,451.9

1,301.3

1,102.5 1,153.9

41.8

53.3

46.6 3.7%

29.6

22.9

22.5 23.9 2.0%

2017

2020

72.2%

56.4%

FY 2017

FY 2018

FY 2019

FY 2020

3.7% 40.6 3.6%

3.5%

FY 2017

FY 2018

FY 2019

FY 2020

2.0%

1.9% 1.8%

FY 2017

FY 2018

FY 2019

FY 2020

Net profit by Segment (**)

0.7%1.3%

15.0%

28.5%

Apr 30

Apr 30

2017

2020

84.3%

70.2%

(*) Sales and other revenues gross of intercompany eliminations (**) Net profit before minority interests (as reported)

13

Group Annual Results as of April 30, 2021E (Current Analysts Consensus)

1,943

104

94.5

+10.1%

1,776

+9.4%

Y/Y

Y/Y

1,551

74.3

1,363

63.1

1,230

1,271

54.0

57.9

Revenues*

1,060

EBITDA

49.5

51.6

948

41.3

44.2

(Eu Mn)

747

812

832

(Eu Mn)

34.4

CAGR + 10.0%

Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E

CAGR + 11.7%

Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E

46.1

53.5

41.2 +11.9%

Y/Y

28.6

31.4

Group

24.8

26.1

4.2

Adjusted

21.8

Group NFP

19.9

20.7

Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30

Net Profit1

(Eu Mn)

16.8

2011 2012 2013 2014 2015

2016 2017 2018

2019 2020 2021E

(Eu Mn)

(20.7)

11.5

(26.2)

CAGR + 14.9%

(33.9)

(41.8)

Feb 2013 IPO

(41.8)

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

Apr 30

(51.9)(54.7)

(54.7)

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021E

(68.1)

NFP as of April 30 2020 and April 30 2021 net of Ifrs 16 adoption

(*) Sales and other revenues

(1) Adjusted for PPA amortization cost net of tax effect

(E) Average of Analysts Consensus for the FY 2021, source Banca IMI, Fidentiis, Intermonte, Mediobanca

14

Group Annual Results as of April 30, 2020

Annual Results as of April 30, 2020 YoY

Segment Informations

Annual Results as of April 30, 2020

Annual Results as of April 30, 2019

In Euro Mn

VAD

SSI

BS1

Corporate

Group

VAD

SSI

Corporate

Group

Total Revenues and Other Income

1,451.9

396.3

8.2

20.2

1,776.0

1,301.3

342.8

17.1

1,550.6

Change YoY

11.6%

15.6%

N.A.

17.8%

14.5%

Gross Margin

103.4

246.8

5.9

20.0

346.8

95.037

208.5

16.9

291.7

Opex

(50.1)

(209.1)

(5.3)

(17.1)

(252.3)

(48.5)

182.2

15.3

(217.3)

Ebitda

53.3

37.8

0.6

2.9

94.5

46.6

26.2

1.7

74.3

Ebitda Margin

3.67%

9.53%

6.82%

14.37%

5.32%

3.58%

7.66%

9.68%

4.79%

Change YoY

14.4%

43.9%

N.A.

74.9%

27.1%

D&A

(4.0)

(12.4)

(0.3)

(0.4)

(17.1)

(2.8)

(5.7)

(0.2)

(8.7)

PPA-related amort.

(0.2)

(4.3)

(0.0)

(0.0)

(4.6)

(0.2)

(2.7)

(0.0)

(3.0)

Provisions

(5.1)

(2.3)

-

(1.6)

(8.9)

(6.5)

(2.4)

(1.1)

(9.9)

Ebit

43.9

18.8

0.3

0.9

63.9

37.1

15.4

0.4

52.7

Ebit Margin

3.02%

4.74%

3.43%

4.62%

3.60%

2.85%

4.49%

2.26%

3.40%

Change YoY

18.5%

22.0%

N.A.

140.5%

21.2%

Profit from companies valued at equity

1.2

0.5

-

(0.0)

1.7

0.8

0.1

(0.1)

0.8

Net Financial Charges

(3.4)

(1.9)

(0.1)

(0.0)

(5.4)

(4.0)

(1.2)

0.0

(5.2)

Income Taxes

(12.1)

(5.4)

(0.0)

(0.5)

(18.0)

(10.0)

(4.6)

(0.3)

(15.0)

Net Profit

29.6

12.0

0.2

0.4

42.2

23.9

9.6

0.0

33.4

Eat Margin

2.04%

3.04%

2.04%

1.84%

2.38%

1.83%

2.81%

0.13%

2.15%

Change YoY

24.2%

25.1%

N.A.

N.S.

26.5%

Group Adjusted Net profit

29.4

11.3

0.1

0.4

41.2

23.8

7.7

0.0

31.4

Change YoY

23.9%

45.5%

N.A.

N.S.

31.1%

(1) BS New Sector consolidated since March 2020 (2 months)

Highlights

Annual results as of April 30, 2020

Consolidated revenues up by 14.5% YoY, Ebitda +27.1% YoY, Group Adjusted EAT +31.1%

Positive contribution from VAD and SSI Sectors:

  • VAD revenues up by 11.6% YoY, Ebitda +14.4% YoY, Group Adjusted EAT +23.9% YoY;
  • SSI revenues up by 15.6% YoY, Ebitda +43.9% YoY, Group Adjusted EAT +45.5% YoY

BS new Sector contribution for Eu 8.2 Mn in terms of Revenues and Eu 0.6 Mn in terms of Ebitda (Ebitda margin 6.82%)

Group Ebitda margin improves from 4.79% in FY 2019 to 5.32% in FY 2020 driven by SSI Ebitda margin (from 7.66% in FY 2019 to 9.53% in FY 2020)

15

Group Q4 Results as of April 30, 2020

3M period as of April 30, 2020 (Q4) YoY

Segment Informations

3M period as of April 30, 2020 (Q4)

3M period as of April 30, 2019 (Q4)

In Euro Mn

VAD

SSI

BS1

Corporate

Group

VAD

SSI

Corporate

Group

Total Revenues and Other Income

354.6

87.8

8.2

5.4

431.3

335.9

89.1

4.7

404.3

Change YoY

5.6%

-1.4%

N.A.

15.5%

6.7%

Gross Margin

25.9

61.8

5.9

5.4

91.6

26.6

51.5

4.6

76.6

Opex

(12.6)

(51.3)

(5.3)

(4.7)

(66.5)

(13.3)

(44.4)

(4.0)

(55.5)

Ebitda

13.3

10.5

0.6

0.7

25.0

13.2

7.0

0.6

21.0

Ebitda Margin

3.75%

11.92%

6.82%

12.78%

5.80%

3.94%

7.90%

13.01%

5.21%

Change YoY

0.5%

48.7%

N.A.

13.4%

18.9%

D&A

(1.1)

(3.8)

(0.3)

(0.1)

(5.2)

(0.7)

(1.7)

(0.1)

(2.4)

PPA-related amort.

(0.1)

(1.4)

(0.0)

(0.0)

(1.5)

(0.1)

(0.8)

(0.0)

(0.9)

Provisions

(2.8)

(1.3)

-

0.5

(3.7)

(1.4)

(1.4)

(0.5)

(3.4)

Ebit

9.4

4.0

0.3

1.0

14.7

11.0

3.1

0.0

14.3

Ebit Margin

2.64%

4.57%

3.43%

18.81%

3.40%

3.28%

3.52%

0.87%

3.55%

Change YoY

-15.0%

28.0%

N.A.

N.S.

2.3%

Profit from companies valued at equity

0.3

0.2

-

(0.0)

0.5

0.3

(0.0)

(0.0)

0.2

Net Financial Charges

(1.2)

(0.4)

(0.1)

(0.0)

(1.7)

(2.1)

(0.1)

0.0

(2.3)

Income Taxes

(2.8)

(0.7)

(0.0)

(0.3)

(3.8)

(3.1)

(0.9)

0.0

(4.0)

Net Profit

5.7

3.1

0.2

0.8

9.7

6.1

2.1

0.0

8.3

Eat Margin

1.60%

3.47%

2.04%

13.92%

2.24%

1.82%

2.33%

0.40%

2.06%

Change YoY

-6.9%

46.8%

N.A.

N.S.

16.0%

Group Adjusted Net profit

5.6

3.9

0.1

0.8

10.3

6.0

1.6

0.0

7.8

Change YoY

-7.0%

136%

N.A.

N.S.

32.3%

(1) BS New Sector consolidated since March 2020 (2 months)

Highlights

Q4 2020 results (February - April 2020)

Consolidated revenues up by 6.7% YoY, Ebitda +18.9% YoY, Group Adjusted EAT +32.3% YoY

Group Ebitda margin improves from 5.21% in Q4 2019 to 5.80% in Q4 2020 thanks to positive contribution from SSI (from 7.9% in Q4 2019 to 11.92% in Q4 2020) and BS (6.82% Ebitda margin in Q4 2020, 2 months period of consolidation)

VAD Ebitda flat in Q4 2020 (up by 0.5% YoY), VAD EAT in Q4 2020 declining (-6.0%) due to extraordinary provisions reported in Q4 considering Covid-19 scenario

Group Adjusted EAT equal to Eu 10.3 Mn (+32.3% ), driven by 136% growth of SSI EAT (Eu 3.9 Mn in Q4 2020, 4.4% Group Adj EAT margin)

16

NWC and NFP annual average trend 2014-2020 by Quarter

Higher Efficiency in NWC management

17.3%

NWC/Revenues 3.1% in Q4 20 vs 5.4% in Q4 19

15.7%

Average 5.9% in FY 2020 vs 8.0% FY 2019

14.6%

13.3%

13.3%

12.8%

12.7%

12.6%

12.0%

11.7%

11.6%

11.2%

10.5%

10.9%

10.7%

11.1%

10.2%

10.0%

10.3%

9.4%

9.2%

9.4%

NWC/Revenues

7.4%

7.3%

6.3%

6.2%

8.1%

8.0%

7.6%

FY2014 - FY2020 Quarterly*

5.5%

6.7%

6.4%

5.9%

5.4%

3.1%

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

2Q

3Q

4Q

Average

1Q

2Q

3Q

4Q

Average

2014

2015

2016

2017

2018

2019

2020

Average Annual NFP improvement

64.9

NFP improvement

45.3

+12.9 Mn Year-End 2020 YoY

+33.8 Mn Year-End 2020 YoY1

35.4

35.1

27.8

25.5

28.8

22.2

23.0

28.7

17.4

20.6

15.6

12.7

12.6

11.8

Group NFP

8.4

6.7

6.6

-1.0

2.1

1.1

-7.5

FY2014 - FY2020 Quarterly**

-6.3

-11.6

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

2Q

3Q

4Q

Average

1Q

2Q

3Q

4Q

Average

-1.4

-26.2

-1.8

-1.9

2014

2015

2016

2017

2018

2019

2020

-33.9

-41.8

-41.8

-52.0

-54.7

-54.7

    1. Gross of IFRS 16 adoption (Eu 20.8 Mn higher financial debt as of April 30, 2020)
  2. Quarterly Net Working Capital on annual rolling base Revenues (**) Quarterly and Annual Average Net Financial Position in Euro Mn

17

Governance and investors information

Shareholders

5 years stock performance

Treasury

Shares 0.568%

ITH

52.814%

Market

46.618%

ITH share capital includes Group Founders and Management:

  • Chairman: Paolo Castellacci, Sesa Founder
  • CEO: Alessandro Fabbroni, in Sesa since 2008
  • Vice Chairmen: Giovanni Moriani & Moreno Gaini, Sesa Partner since 80s
  • TIP has recently increased its stake in ITH up to 20.6%, strengthening the strategic partnership started in July 2019

Recurrent Treasury Shares Buy-back Plan (Eu 10 Mn since IPO)

BoD of July 14, 2020 proposal of new 3.5 Mn Buy-back Plan and to sospend1 dividend distribution in the current Year

SESA: +282.0%

IT STAR: +45.4%

FTSE MIB:

- 12.8%

TOTAL RETURN SINCE IPO

STOCK PERFORMANCE YoY

+331.2%

+88.7%

INCREASE IN VOLUMES TRADED

DIVIDEND DISTR. SINCE IPO

42.10 Eu Mn1

AVERAGE PAY OUT RATIO +33%

(1) FY 2019 dividend distribution Eu 9.7 Mn. No dividend distribution for FY 2020, considering Covid-19 scenario and external growth opportunities

18

Income Statement as of April 30, 2020 as reported

Reclassified Income Statement (Euro/thousand)

April 30, 2018

%

April 30, 2019

%

April 30, 2020

%

Change

2020/19

Revenues

1,350,900

1,539,854

1,762,641

14.5%

Other income

12,135

10,751

13,384

24.5%

Total Revenues and Other Income

1,363,035

100.0%

1,550,605

100.0%

1,776,025

100.0%

14.5%

Purchase of goods

1,114,393

81.8%

1,258,954

81.2%

1,429,220

80.5%

13.5%

Costs for services and leased assets

102,820

7.5%

117,293

7.6%

133,404

7.5%

13.7%

Personnel costs

79,053

5.8%

96,318

6.2%

114,763

6.5%

19.2%

Other operating charges

3,648

0.3%

3,694

0.2%

4,148

0.2%

12.3%

Total Purchase of goods and Operating Costs

1,299,914

95.4%

1,476,259

95.2%

1,681,535

94.7%

13.9%

EBITDA

63,121

4.6%

74,346

4.8%

94,490

5.3%

27.1%

Amortisation tangible and intangible assets (software)

6,546

8,715

17,105

96.3%

Amortisation client lists and technological know-how

2,438

2,979

4,568

53.3%

Accruals to provision for bad debts and risks and other

7,847

9,934

8,920

-10.2%

non monetary costs

EBIT

46,290

3.4%

52,718

3.4%

63,897

3.6%

21.2%

Net financial income and charges

(3,259)

(4,400)

(3,706)

-15.8%

EBT

43,031

3.2%

48,318

3.1%

60,191

3.4%

24.6%

Income taxes

12,848

14,956

18,003

20.4%

Net profit

30,183

2.2%

33,362

2.2%

42,188

2.4%

26.5%

Net profit attributable to the Group

26,861

29,284

37,914

29.5%

Net profit attributable to non-controlling interests

3,322

4,078

4,274

4.8%

Annual Report approved by the Board of Directors, not yet audited by Independent Auditor (PWC)

19

Balance Sheet as of April 30, 2020 as reported

Reclassified Balance Sheet (Euro/thousand)

April 30, 2018

April 30, 2019

April 30, 2020

Change

2020/19

Intangible assets

39,083

54,001

74,273

20,272

Property, plant and equipment

55,221

57,771

83,958

26,187

Investments valued at equity

9,179

10,030

12,158

2,128

Other non-current receivables and deferred tax assets

17,264

27,354

25,715

(1,639)

Total non-current assets

120,747

149,156

196,104

46,948

Inventories

67,752

82,044

91,127

9,083

Current trade receivables

328,760

364,314

393,645

29,331

Other current assets

37,423

43,451

48,646

5,195

Current operating assets

433,935

489,809

533,418

43,609

Payables to suppliers

295,706

326,009

379,066

53,057

Other current payables

62,967

79,964

99,610

19,646

Short-term operating liabilities

358,673

405,973

478,676

72,703

Net working capital

75,262

83,836

54,742

(29,094)

Non-current provisions and other tax liabilities

14,175

17,792

20,665

2,873

Employee benefits

20,495

24,332

31,022

6,690

Non-current liabilities

34,670

42,124

51,687

9,563

Net Invested Capital

161,339

190,868

199,159

8,291

Equity

216,001

232,622

253,859

21,237

Medium-Term Net Financial Position

123,172

123,040

187,038

63,998

Short-Term Net Financial Position

(177,834)

(164,794)

(241,738)

(76,944)

Total Net Financial Position (Net Liquidity)

(54,662)

(41,754)

(54,700)

(12,946)

Equity and Net Financial Position

161,339

190,868

199,159

8,291

Annual Report approved by the Board of Directors, not yet audited by Independent Auditor (PWC)

20

Disclaimer

This document has been prepared by Sesa SpA ("SeSa" or the "Company") or 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.

21

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SeSa S.p.A. published this content on 14 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2020 09:10:02 UTC