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WIIT TAKE YOUR BUSINESSABOVE THE CLOUDS
Company Presentation January 2020
Company Presentation | Jan 2020 2
This document has been prepared by Wiit S.p.A. (the “Company”) for information and discussion purposes only, it contains only summary information and, therefore, it is preliminary in nature. Furthermore it has
been drafted without claiming to be exhaustive.
This presentation (“Presentation”) is confidential and, as such, has not been prepared with a view to public disclosure and, except with the prior written consent of the Company, it cannot be used by the
recipient for any purpose nor can it be disclosed, copied, recorded, transmitted, further distributed to any other person or published, in whole or in part, by any medium or in any form for any purpose.
Therefore, the recipient undertakes vis-à-vis the Company (i) to keep secret any information of whatever nature relating to the Company and its affiliates including, without limitation, the fact that the
information has been provided (“Information”), (ii) not to disclose any Information to anyone, (iii) not to make or allow any public announcements or communications concerning the Information and (iv) to use
reasonable endeavors to ensure that Information are protected against unauthorized access.
This document is not an advertisement and in no way constitutes a proposal to execute a contract, an offer or invitation to purchase, subscribe or sell for any securities and neither it or any part of it shall form
the basis of or be relied upon in connection with any contract or commitment or investments decision whatsoever. The Company has not prepared and will not prepare any prospectus for the purpose of the
initial public offering of securities. Any decision to purchase, subscribe or sell for securities will have to be made independently of this Presentation. Therefore, nothing in this Presentation shall create any
binding obligation or liability on the Company and its affiliates and any of their advisors or representatives.
This Presentation does not constitute an offer to the public in Italy of financial products, as defined under article 1, paragraph 1, letter (t) of legislative decree no. 58 of 24 February 1998, as amended.
This Presentation is not for distribution in, nor does it constitute an offer of securities for sale in the United States of America, Canada, Australia, Japan or any jurisdiction where such distribution is unlawful, (as
such term is defined in Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”). Neither this Presentation nor any copy of it may be taken or transmitted into the United
States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions or to any US person. Any failure to comply with this restriction may
constitute a violation of United States securities laws.
No representation or warranty, express or implied, is or will be given by the Company as to the accuracy, completeness or fairness of any information contained in these materials and, so far as is permitted by
law and except in the case of fraud by the party concerned, no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for errors, omissions or misstatements, negligent or
otherwise, relating thereto. In particular, but without limitation, no representation or warranty, express or implied, is or will be given as to the achievement or reasonableness of, and no reliance may be placed
for any purpose on the accuracy or completeness of, any estimates, targets, projections or forecasts and nothing in these materials should be relied upon as a promise or representation as to the future.
The information and opinions contained in this document are provided as at the date hereof and are subject to change without notice. The recipient will be solely responsible for conducting its own
assessment of the information set out in the Presentation. Neither the Company and its affiliates, nor any of their advisors or representatives shall be obliged to furnish or to update any information or to notify or
to correct any inaccuracies in any information. Neither the Company and its affiliates, nor any of their advisors or representatives shall have any liability to the recipient or to any of its representatives as a result
of the use of or reliance upon the information contained in this document.
Certain information contained in this Presentation may contain forward-looking statements which involve risks and uncertainties and are subject to change. In some cases, these forward-looking statements
can be identified by the use of words such as “believe”, “anticipate”, “estimate”, “target”, “potential”, “expect”, “intend”, “predict”, “project”, “could”, “should”, “may”, “will”, “plan”, “aim”, “seek” and
similar expressions. The forecasts and forward-looking statements included in this document are necessarily based upon a number of assumptions and estimates that are inherently subject to significant
business, operational, economic and competitive uncertainties and contingencies as well as assumptions with respect to future business decisions that are subject to change. By their nature, forward-looking
statements involve known and unknown risks and uncertainties, because they relate to events, and depend on circumstances, that may or may not occur in the future. Furthermore, actual results may differ
materially from those contained in any forward-looking statement due to a number of significant risks and future events which are outside of the Company’s control and cannot be estimated in advance, such
as the future economic environment and the actions of competitors and others involved on the market. These forward-looking statements speak only as at the date of this Presentation. The Company
cautions you that forward looking-statements are not guarantees of future performance and that its actual financial position, business strategy, plans and objectives of management for future operations may
differ materially from those made in or suggested by the forward-looking statements contained in this Presentation. In addition, even if the Company’s financial position, business strategy, plans and objectives
of management for future operations are consistent with the forward-looking statements contained in this Presentation, those results or developments may not be indicative of results or developments in future
periods. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s
expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
By accepting this Presentation, you acknowledge and agree to be bound by the foregoing terms, conditions, limitations and restrictions.
Disclaimer
Overview
Company Presentation | Jan 2020 4
The Premium Cloud for
Business Critical
Applications
Company Presentation | Jan 2020 5
Highlights
+70 countries onlinein 4 regions
2 Datacenter1 DC Tier IV
1996 establishedsince 2007 focused on Cloud
70 top clients+390 midsize clients
9 branchesof which 2 abroad
100% Green Energysince 2016 for datacenter and Wiit offices
6 successful acquisitionssince 2007
2017 listed on the Stock Market since 2019 in the Star segment
TIERIV
1996
Company Presentation | Jan 2020 6
IaaS ProvidersTelco, Amazon, Msft Azure, Aruba, Claranet, Plus Server
Infrastructure as a ServiceDatacenter, infrastructure tech, network
Platform as a Service• Managed services, DR/BC,
Cybersecurity
• Application Platform availability
Software as a ServiceApplication software Customer
Or
System Integrators
WiitTechnology Layer (Tier IV +
Tech Assets)
WiitDigital Process Applications
WiitApplication platform
availability
WiitManaged Services, Cybersec, DR/BC
Wiit Cloud Platform Offering
Standard Public Cloud Infrastructure as a Service only
Premium Hybrid Cloud
for Critical AppsPaaS and Saas
WIIT Peers
VirtustreamSecure24AttendaTricore SolutionsSymmetryOxya
Company Presentation | Jan 2020 7
+28% Revenue
+21%Cloud Market
+20% Revenue
+21%Cloud Market
+49% EbitdaAdjusted
+64% Ebit
+44% EbitdaAdjusted
+55% Ebit
WIIT GROUP WIIT ORGANICCAGR 2016-2018
Growth Comparison
Company Presentation | Jan 2020 8
Leading operational excellence
and Cloud trend to achieve a sharp Growth
EBITDA Adj.* (M€) and MARGIN %
* EBITDA adjusted excluding the Figurative cost of Performance Shares,non-recurring costs incurred for the STAR segment listing and M&A ofapprox. Euro 1.0mln IPO costs
3,84,7
8,5
10,4
7,6
9,5
0,0
2,0
4,0
6,0
8,0
10,0
12,0
2015A 2016A 2017A 2018A 9M 2018 9M 2019
41,3%
25,2%
42,9%
44%
30,6%
43,3%
12,715,5
19,6
25,2
17,2
23,7
0,0
5,0
10,0
15,0
20,0
25,0
30,0
2015A 2016A 2017A 2018A 9M 2018 9M 2019
SALES (€mn)
40,3%
Company Presentation | Jan 2020 9
88% Wiit
75% GroupRecurring
Revenues
breakdown0% Wiit
12% Group
Semi Recurring12 months renewal
12% Wiit
13% GroupOne Off
Company Presentation | Jan 2020 10
Stock price performance last 12 months
35
40
45
50
55
60
65
70
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20
35
45
55
65
75
85
95
105
WIIT Share Price FTSE Star CAC 40 DAX 30 FTSE 100 NASDAQ 100 BVP Nasdaq Emerging Cloud
WIIT.MI
+159.5%
+38.1%
+36.4%
+19.9%
+23.7%
+22.0%
+11.2%
Company Presentation | Jan 2020 11
WIIT Market CapJan, 24 2020
281 M€
WIIT EV/Rev multipleBloomberg estimates 2019 8.6 x
BVP Cloud index
EV/ Rev 2019 multiple 11.1 x
Share growth
driven by
undervalued
multiples
BVP Cloud index
EV/ Rev 2020 multiple 9.1 x
5.8 xWIIT EV/Rev multipleBloomberg estimates 2020
Company Presentation | Jan 2020 12
Corporate
Governance
BOARD OF DIRECTORS
Chairman & COO Riccardo Mazzanti
Chief Executive Officer Alessandro Cozzi
Executive Director Enrico Rampin
Executive Director Francesco Baroncelli
Director Amelia Bianchi
Independent Director Aldo Napoli 1
Independent Director Dario Albarello 1,2
Independent Director Riccardo Sciutto 1,2
Independent Director Annamaria di Ruscio 2
BOARD OF STATUTORY AUDITORS
Chairman of the Board of Statutory Auditors Luca Valdameri
Statutory Auditor Paolo Ripamonti
Statutory Auditor Nathalie Brazzelli
SUPERVISORY BODY
Chairman of the Supervisory Body Dario Albarello
INDEPENDENT AUDIT FIRM Deloitte & Touche S.p.A.(1)
(2)
Member of Related Parties and Risks Committee
Member of Remuneration Committee
Company Presentation | Jan 2020 13
ShareholdersStructure
Jan 2020
No. Shares 2.652.066
Free Float
32,90%
Own Shares
4,94%
Wiit Fin Srl
62,16%
WIIT at a glance
Company Presentation | Jan 2020 15
WHY WIITWe strongly believe in technology as a turning
point for a fast and sustainable growth of
worldwide economy.
The IV industrial revolution can only be achieved through the
overcoming of the outdated technological models that do not allow efficiency, safety, scalability, performance.
Company Presentation | Jan 2020 16
ENABLE THE DIGITAL SHIFTWe support clients in their transformation from a
traditional On-Premise IT to a Premium Cloud model for
Business Critical Applications.
We are focused and we are investing on the continuous development of the
premium Cloud provider foundations: people, technologies, processes to guarantee the highest SLAs in the Cloud market.
Company Presentation | Jan 2020 17
Source: Il Digitale in Italia – 2018 Mercati, Dinamiche, Policy". “Osservatorio CloudTransformation - Cloud Transformation: evolvere con le nuvole verso l’organizzazione agile
IOT
MOBILE
BUSINESS
SECURITY
WEARABLE
TECHNOLOGY
CLOUD
BIG DATA
AI
BLOCKCHAIN
0%
10%
20%
30%
40%
50%
60%
70%
80%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% G
row
ing
20
20
E/2
017
% Growing 2017/2016
DIGITAL TRENDS
Cloud, IoT and Mobile Business are
leading the growth but still are a
green field.
All the digital trends will include, as a
foundation, Cloud based
technology, applications and
DevOps.
Global trends of Digital Enabler
Company Presentation | Jan 2020 18
6,24%
10,84%13,38%14,38%15,65%
18,24%
23,31%
0%
5%
10%
15%
20%
25%
Cloud Business
Process Services
(BPaaS)
Cloud
Advertising
Totale MarketCloud
Management &
Security Services
Cloud
Application
Services (SaaS)
Cloud
Application
Infrastructure
Services (PaaS)
Cloud System
Infrastructure
Services (IaaS)
CAGR by Cloud Service Category, 2016-2020
Worldwide Public Cloud Services Revenue Forecast (B$)
Source: Gartner (Oct 2017)
5652484441
15131197
7665
5546
39
72
58
4635
25
151
134
119
105
90
$0
$50
$100
$150
$200
$250
$300
$350
$400
20202019201820172016
Cloud Advertising
Cloud System
Infrastructure Services
(IaaS)
Cloud Management &
Security Services
Cloud Application
Services (SaaS)
Cloud Application
Infrastructure Services
(PaaS)
Cloud Business Process
Services (BPaaS)
Source: Gartner (Feb 2017)
Worldwide Cloud Revenues (B$)
Growth TrendsIaaS and PaaS growth will continue with the
highest CAGR rate in the Cloud Arena
Revenue TrendsIaaS + PaaS represents the highest volume in
Cloud revenue
(excluding Cloud Advertising that is not an IT
service)
Worldwide Cloud Growth 2016-2020
Company Presentation | Jan 2020 19
Source: Netconsulting Cube 2020
Italian Cloud between past and future
1.4151.116
877
1.348
1.094
872
697
621
553
0 €
500 €
1.000 €
1.500 €
2.000 €
2.500 €
3.000 €
3.500 €
4.000 €
4.500 €
202020192018
Public Cloud Hybrid Cloud Virtual Private Cloud
2,302
2,830
3,460
+12.2%
+25.5%
+27.3%+26.8%
+23.3%
+12.3%+23%
+22.3%Market trendCloud gr owth will stay strong due to the boost of new digital areas (i.e. Analytics, Iot, AI etc.) and due to the adoption of Cloud for Business Critical apps.
Virtual Private is growing 12.3%Hybrid is growing 24.4%
Company Presentation | Jan 2020 20
Traditional DC
Private Cloud
Public Cloud
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2017 2018 2019 2020 2021 2022 2023
Traditional DC Private Cloud Public Cloud
Worldwide Cloud IT infrastructure Market Forecast by
Deployment Type, 2017-2023 (shares base on Value)
Cloud shift still
ongoing
Company Presentation | Jan 2020 21
Why
complementary?
PRIVATE CLOUD PUBLIC CLOUD
Single or multiple clients Multiple clients
On-premises or off-premises Off-premises
Managed Services No Managed Services
Fully Customizable Limited Customizations
Guaranteed SLA Target SLA
Highest Security standards (up to Tier IV) Low Security standards (No Tier IV)
Fully customizable Tech Performances Standard Tech Performances
Shared or fully private network Shared network
Company Presentation | Jan 2020 22
Needs: multiple users, less confidential information, local data compliance, geographical localization
Non Critical Applications
Needs: high and guaranteed service levels, business continuity, information security, personalization, integration, scalability, flexibility
Critical Applications (SAP-ERP, CRM, EPM, etc.) core platforms and infrastructures
Managed Services
Business Continuity
Wiit Delivery Platform
Business
App
Non Critical
-
+Critical
Customer Private Cloud
Hosted Private Cloud Public Cloud
AWS
The new trend for Critical Corporate Apps
Company Presentation | Jan 2020 23
Being global and
digital is imperative.
Being global means
global processes
governance.
Governance and
digital mean tech
performance,
data security and
process reliability.
a. No more CAPEX in no core
investments
b. Scalability and flexibility
c. Competences and experience
Top 3 business fault causes
#1 Datacenter technology level
#2 Cyber security
#3 Human Error
BUSINESS
RISKS
BUSINESS
OPPORTUNITIES
Why companies move to Cloud
Company Presentation | Jan 2020 24
TOP 3Reasons to choose your Critical App
Cloud provider
#1 References
#2 Migration experiences
#3 Assets/Competences/Certifications
TOP 3Reasons to change your Critical
App Cloud provider
#1 Service quality
#2 Provider Financial health
#3 Price
Primary Cloud
entry barriers to
enter the Critical
App Cloud
Business-stop risk due
to migration
is the primary
Client exit barrier
Competition in Business Critical Cloud
Entry/Exit barriers
Company Presentation | Jan 2020 25
70%
Top clients
with DR/BC
90%
Top clients
run ERP suites
80%
Top clients
run SAP
70Top
clients
+390Mid
clients
70connected
countries
2global
branches
Milan HQ
Florence
Rome
Castelfranco Veneto
Vicenza
italian
branches92
enterprise
datacenter
Geographical coverage of clients connected to our datacenters
CarpiCuneo
Turin
Company Presentation | Jan 2020 26
WIIT Strategic Assets
Wiit deploys two dedicated Enterprise
Class Data-Centers in Italy
Milan: Primary Data Center, certified TIER
4 Constructed Facility, where the most
complex and critical ERP infrastructures
are hosted and managed
Castelfranco Veneto (TV): the data
center that enables Business Continuity
services for Milan Tier IV DC
The level of use of the 2 Data-Centers is
only 35% of total capacity
(*) Source: Uptime Institute Website – Tier Certification of Constructed Facility – March 2018
TIERDatacenter
Class
Site
infrastructure
Definition
Components
IT capacity
to support
load
Distribution
Path
Maintenance w/o service downtime
Fault tolerant
= w/o manual
intervention
Compart
mentation = all
components
are separated
and duplicated
Continuous
Cooling
Availability
year
average
4Enterprise
Corporations
Fault tolerant2N+1
Fully
Redundant
Double
Active-
Active
99,995%
3Large Business
Concurrently
maintainable
N+1
Fault
Tolerant
One Active
One
Standby
99,982%
2Medium Size
Business
Redundant N+1 single 99,75%
1Small Business
Basic N single 99,67%
Tier IV datacenter for business critical applications
Company Presentation | Jan 2020 27
Key Success Factors
Pure cloud playerExclusive specialization in services for Business Critical Apps
Tier IV datacenterThe highest reliability to guarantee critical SLAs
End to end value chain
controlFull internal control to grantservice performance
Proprietary Wiit Delivery
PlatformTrademarked and ITIL certified property of the Hybrid Cloud platform enabler
SAP Outsourcing Services
leadership#1 SAP certified partner worldwide with 6/6 SAP Certification classes
Leader in Business
ContinuityThe most successful track record in delivering BC services
Worlwide Cloud platform
readinessA global deployable hybridmodel ready to use
Management team since
inceptionA committed team leading the
growth
Strong track record in M&AStrategy and execution over the time
Company Presentation | Jan 2020 28
High standing Client Base
(*) Source Clients Financial Report 2018 and Management account – data not audited
TOP 10 CLIENTS
76% OVERSEAS TURNOVER(*)
Fashion
34%
Oil & Gas
13%Industrial Machinery
11%
Process
Manufacturing
11%
Discrete
Manufacturing
8%
Professional
Services
7%
Aerospace &
Defence
6%
Public
5%
Retail
TOP 10’s CLIENT
REVENUE BY
SECTOR(Informative Prospect 2018)
Company Presentation | Jan 2020 29
• 5 years average contract period
• 48.7 €mn* Backlog. 1.9 times
2018A sales
• High penalties for early
termination
BACKLOG AS AT 1st JAN 2019 (€mn)
(*) data audited in January 2019
25,2
48,7
0,0
10,0
20,0
30,0
40,0
50,0
60,0
SALES 2018 BACKLOG
1.9 x
Granting a high Visibility of Business
Company Presentation | Jan 2020 30
2,22,9
3,8
7,0
8,9
6,7
9,3
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
2014A 2015A 2016A 2017A 2018A 9M 2018 9M 2019
High Cash Flow Growth: +39,51% in 9M 2019
GROSS CASH FLOW HISTORY (M€)Big cash generation potential
• Facilities usage at 40%
• CAPEX
• Maintenance capex tech update + R&D (approx. €1.0mn/yr
avg in 2014-2018)
• Development capex new clients (approx. 20% of TC in
contract Y1)
• Modest NWC needs
WHAT NEXT ?
Company Presentation | Jan 2020 32
Main drivers for
FUTURE GROWTH
1
4
3
2
Leadership in Italy on
Business Critical AppsContinue organic growth on SAP and
other business critical apps
Expansion in EuropePriority on France & Germany for market
potential and country cloud-readiness for
critical apps
Italian market consolidationContinue cloud market consolidation in
Italy achieving upselling of Wiit services in a
new customer set and industrial synergies
Service portfolio extension
on Top Tech trendsServices expansion to IoT, AI, CX
Company Presentation | Jan 2020 33
M&A Journey
VisiantAcquisition of Private Cloud datacenters (2) of Visiant with a long term partnership. Strong
synergies achieved (DC shutdown+migration in Wiit facilities)
AdelantePresence in Tuscany (Luxurydistrict). 70% potential synergies
achieved. Upselling Wiit Bizcritical services on existingcustomers in progress. Expansion of service portfolio
MatikaPresence in Veneto (Discrete/ProcessM. district). 500 k€ potential synergies. Very good upselling potential on
Matika customer base and expansionof service portfolio
20192015 2018
Etæria & ÆderaStrong presence in Piedmontand Emilia-Romagna. High quality client portfolio. Proprietary technologicalplatform that integrates the technological document asset already owned by Wiit
2020
Company Presentation | Jan 2020 34
External Growth
1. Acquisitions in Italy to increase Wiit’smarket share and gain synergies (example: data centres)
M&A STRATEGY
Italy
1. Strategic acquisitions to enter more effectively in foreignmarkets leveraging on:
• a local established brand
• a native salesforce with relationships with local clients, knowledge of local market and datacenter in the country
2. Cost savings mainly achievable thanks to the centralization ofoperations in Italy. Two examples:
Europe (FR, DE)
I. Cloud players with a business modelcomparable to Wiit and multiannualcontracts schemes
lower (same business model)
cost synergies
II. IT players which can be consideredpart of the current Wiit Value Chain(for instance Datacenter, Cloud IaaS),have a client base suitable to an up-selling strategy and possiblymultiannual contracts
mediumcost synergies + revenue synergies
(up-selling)
Profile Integration risksSynergies
Company Presentation | Jan 2020 35
IAAS CLOUD SERVICESFROM AN
AVG. CLIENT SIZE
50
7,5
15%
0%
20%
40%
60%
0
20
40
60
Revenue Ebitda Ebitda %
K€/yr
Leverage Wiit Cloud
model to scale up
financials of
acquired Co.
PAAS CLOUDTO AN
AVG. CLIENT SIZE
350
157,5
45%
0%
10%
20%
30%
40%
50%
60%
0
50
100
150
200
250
300
350
400
Revenue Ebitda Ebitda %
K€/yr
IaaS Provider
Data CenterData center, infrastructure
tech, network
Platform• Managed services,
DR/BC, Cybersecurity
• Application Platform
availability
ApplicationSoftware license as a
Service
WiitTechnology Layer
(Tier IV + Tech Assets)
WiitApplication platform
availability
WiitManaged Services, Cybersec, DR/BC
Financial boost in target companiesWiit average
top 20’s client size
900 K€/yr
WiitDigital ProcessApplications
Financials
Company Presentation | Jan 2020 37
+26% Ebitda Adjusted+10% organic, 44,2% on sales
+28% Ebit Adjusted21% on sales
+38% Revenues+10% organic
+88% Net profit
13.6 M€ Net debt3.3 M€ at Dec 31, 2018
Financial
Highlights
vs9M 19
9M 18
Company Presentation | Jan 2020 38
Balance Sheet: 9M 2019 Results
IFRS Form (€ 000) 2016 2017 2018 9M 2019
Intangible Assets 917 1.402 4.050 10.068
Intangible Assets - Goodwill 1.315 1.315 9.736 16.377
Property plant and equipment 8.920 12.912 13.823 3.437
Other Tangible Assets 0 0 0 10.158
Investments in associates 464 458 68 68
Total non-current assets 11.616 16.087 27.677 40.108
Inventories 12 0 0 19
Trade and other receivables 4.023 3.292 4.699 7.022
Intercompany receivables 875 1.122 461 400
Advance Tax 300 377 685 724
Other liquid assets 475 395 1.734 3.075
Total current assets 5.685 5.186 7.580 11.240
Tax current liabilities 292 366 669 820
Trade and other payables 1.729 2.058 3.802 3.330
Payables vs related companies 0 0 0 490
Other payables and current liabilities 708 807 2.056 2.526
Total current liabilities 2.729 3.231 6.528 7.168
Net Working Capital 2.956 1.955 1.053 4.072
Other payables and non-current liabilities 320 220 1.340 973
Employee benefits liabilities 817 918 1.259 1.974
Provisions for deferred tax liabilities 29 29 214 221
Total non-current liabilities 1.166 1.167 2.813 3.168
NET INVESTED CAPITAL 13.406 16.875 25.917 41.012
Equity 4.512 24.755 22.243 22.217
Net Financial Debt (Cash) 8.895 (7.880) 4.383 19.304
Net Financial Debt (Cash) Excluding impact of IFRS16 3.299 13.630
Cash and cash equivalents at year-end 3.610 21.514 17.930 12.976
• Fixed assets mainly include the two Wiit’sdatacenters (approx. 40% capacity) –
amortization in 5 years
• Goodwill refers to the merger of SevenlabS.r.l. into Wiit in 2014 and acquisition of a
division of Visiant Technologies in 2015,
Adelante Group, Foster in 2018 and Matika
in 2019
• Intangible Assets YtD 2019: 4,5 millions IFRS16
Company Presentation | Jan 2020 39
• Big potential for a margin expansion thanksto a scalable platform with fixed costs
mainly
• Performance shares plan generates afigurative cost ex IAS principles (tax
deductible)
• IPO cost: cost related to listing to MTAprocess (Star Segment)
• M&A cost: cost related to due diligence forMerger and Acquisition
• Tax benefits active from year 2016 on:
• “Super-ammortamento”:140% overvaluationof the 2017 investments in new assets
purchased or leased. Opportunity to benefit
of subsidy for investments in intangible
capital goods (software and IT systems)
• “Patent-Box”: benefit starting benefitcalculation from Y2015.
* EBITDA adjusted excluding the Figurative cost of Performance Shares, non-recurring costs incurred for the STARsegment listing and M&A of approx. Euro 1.0mlnIPO AND costs
Income Statement: 9M 2019 Results
IFRS Form (€ 000) 2015 2016 2017 2018 9M 2018 9M 2019
NET SALES 12.791 15.341 19.556 25.237 17.185 23.657
Cost of products and service sold (excl. IPO costs) 5.944 7.586 7.255 10.121 6.087 9.518
Cost of employees (excl.Figurative cost Perf.Shares) 2.532 2.616 3.606 4.395 3.319 4.354
Other cost and charges 527 400 217 309 220 243
Variation of inventory 1 38 12 0 0 (2)
Total costs 9.004 10.640 11.089 14.826 9.626 14.114
EBITDA Adjusted 3.787 4.701 8.467 10.412 7.559 9.543
29,6% 30,6% 43,3% 41,3% 44,0% 40,3%
Amortisation, depreciation 1.931 2.300 3.433 5.108 3.716 4.571
Figurative cost of Performance Share 2016-2018 585 394 283 0 0
IPO and M&A Costs 455 142 211 1.041
OPERATING PROFIT 1.856 1.817 4.186 4.878 3.632 3.932
OPERATING PROFIT Adjusted 2.401 5.034 5.303 3.843 4.973
15,7% 25,7% 21,0% 22,4% 21,0%
Depreciation of investments in associates (750) 0 (6) 0 0 0
Financial income 28 19 42 7 (6) (168)
Financial costs (354) (466) (452) (508) 401 219
Exchange rate differences (1) (18) 92 (90) (11) 40
RESULT BEFORE TAXES 779 1.352 3.862 4.287 3.248 3.840
Income taxes 583 441 725 791 591 (592)
NET RESULT 195 911 3.137 3.496 2.657 4.432
40
4,7
8,510,4
13,4
18,4
22,5
0,0
5,0
10,0
15,0
20,0
25,0
2016A 2017A 2018A 2019E 2020E 2021E
42%
EBITDA Adj.* (M€) and MARGIN %SALES (M€)
(E) Average of Analysts Consensus for 2019-21 (source: Banca IMI, Intermonte SIM and Midcap LCM, Dec19/Jan20)
15,519,6
25,2
33,4
49,054,3
0,0
10,0
20,0
30,0
40,0
50,0
60,0
2016A 2017A 2018A 2019E 2020E 2021E
30,6%
43,3%
2,44,2 4,9
5,9
10,9
14,9
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
2016A 2017A 2018A 2019E 2020E 2021E
EBIT (M€) and MARGIN %
0,9
3,1 3,5
6,0
8,5
11,7
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
2016A 2017A 2018A 2019E 2020E 2021E
NET PROFIT (M€) and MARGIN %
CAGR
FY16 - FY18 +28%
11,6%
21,4%19,3%
5,9%
16%13,9%
CAGR
FY16 - FY18 +49%
CAGR
FY16 - FY18 +64%
CAGR
FY16 - FY18 +96%17,7%
22,3%
27,5%
18,0%17,4%
21,5%
40,1%
37,6%
41,4%
Group Annual Economic Results 2016-2021E(Y19 to Y21Estimate by Analysts Consensus)
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