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Strategic Guidelines and 2021-2023 Business Plan
MILAN, NOVEMBER 2020
This presentation contains forward-looking statements regarding the timing and financial impact of SG Company SpA's ability to implement its business plan, expected revenues, and future success. These statements involve a number of risks and uncertainties
and are based on assumptions involving judgments about future economic, competitive, and market conditions and future business decisions, all of which are difficult or impossible to accurately predict and many of which are beyond SG Company SpA's control.
Some of the significant factors that could cause actual results to differ materially from those indicated in the forward-lookingstatements include general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses or
legal developments, competitive pressure, changes in market requirements and standards and risk factors detailed from time totime in SG Company SpA's legal documents, including SG Company SpA's annual financial statements. The forward-looking
statements contained in this document are based on Management's reasonable belief as of the date hereof.
DISCLAIMER
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MARKET AND COMPETITIVE CONTEXT
SG COMPANYDIGITAL TRANSFORMATION
AND NEW BUSINESS
2021 – 2023BUSINESS PLAN
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MARKET AND COMPETITIVE CONTEXT
SG COMPANYDIGITAL TRANSFORMATION
AND NEW BUSINESS
2021 – 2023BUSINESS PLAN
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⊙ SG Company has been one of Italy’s top players in the
Entertainment&Communication industry for over 20 years now, boasting a portfolio
of high-standing clients (A2A, ABI Eventi, Allianz, BlackRock, Medtronic, Vodafone,
Eolo, Wind3, PWC, Bayer, Basf, Ferrari, Mediolanum, Sisley, LVMH, Daikin, BMW,
Dainese, Enel, Eolo, CheBanca! Youtube, Generali, Lavazza, Vorwerk, Google, L'Oréal,
Luxottica, Pandora and Sky, TIM, Siemens, DAZN). It has planned, promoted, and
produced successful formats of international relevance such as Milano Food Week,
Milano Wine Week, Obecity, Sneakerness, DigitaDesignDays, etc.
⊙ Specialized in Digital Communications, Video Production, Consumer Format,
Meetings&Events Industry, it has launched a digital transformation process across all
its business areas and a strategy to enhance the value of the data extracted from its
"core" activities through the implementation of "MarTech" (Marketing Technology)
solutions.
⊙ SG Company's unique and distinctive value creation hinges on the synergy between
data and content - native digital and for the first time also live – that stems from its
exclusive ability to offer a single direction over creativity, production, and technology
for each project, guaranteeing clients constant integration between physical and
digital.
HIGHLIGHTS: SG COMPANY
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INTERNATIONAL PRESENCE
CURRENT LOCATIONS
CURRENT PARTNERSHIPS AND LOCATIONS IN OPERATION
⊙ The 2021-2023 business plan envisages a rebalancing of the mix of core activities and
focus on digital and innovative solutions with investments in specialized skills and
M&A; in 2023 revenues (Exp) of Euro 31.5 million, EBITDA margin 10%. Through
implementation of the Business Plan, the Group will position itself in the Digital
Communication and Marketing Automation segment, which is recording a high growth
rate in Italy and worldwide, accelerated even further by the current context.
⊙ The digital transformation process is backed by a capital increase with pre-emptive
rights of Euro 4 million, dedicated to M&A, development of technological platforms,
acquisition of specialized resources, and development of foreign markets.
⊙ Listed on the AIM of Borsa Italiana since 26 July 2018, registered as an innovative
SME since 1 October 2020, and ISO 9001 certified, the Group currently counts about
100 employees; in 2020, it embarked on the Benefit Company path to assert the
values of social and environmental sustainability that distinguish its activities.
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MAJOR CUSTOMERSHIGHLIGHTS: SG COMPANY
⊙ M&A process
⊙ Ramp up of Video Production and creation of
proprietary content
⊙ Development/launch of Tech platforms:
o Data gathering and analysis
o Online events
⊙ Inclusion of new skills
⊙ Open Innovation: start-up ecosystems,
universities, and research centers
⊙ Preparation of a flexible cost structure
⊙ Remuneration policy and Work for Equity plan for
Top Management engagement
ACTION PLANSTRATEGIC GUIDELINES
⊙ Launch of new "Data valorization” business line
⊙ Integration of MarTech solutions into the core
activities
⊙ Internationalization and development of foreign
markets
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THE DIGITAL TRANSFORMATION PROCESS TOWARDS THE NEW SG COMPANY
DIGITAL & LIVE
COMMUNICATIONS
Design and implementation of
360° experiences, where Tech and
digital solutions permeate every
project. Creativity, content, and
production work alongside digital
and technology to create extra
value for the client.
SG COMPANY FROM 2021: BUSINESS AND OPERATING COMPANIES
CONSUMER
FORMAT
Design and creation of
proprietary and/or licensed
consumer formats.
Co-marketing activities with client
companies to develop projects
capable of generating shared
value. Opportunities to export
successful "made in Italy" formats
to foreign markets.
VIDEO
PRODUCTION
Video production carried out
through two production
companies Double: productions in
TV and virtual studios, video
posters, vertical videos,
streaming, digital adv.
MEETING & EVENTS
INDUSTRY
Consulting, planning, and sales of
corporate & business travel
projects for large companies and
multinationals.
DATA
VALORIZATION
Powered by data extracted through
MarTech solutions from the Group's
core activities. To be created and fed
thanks to investment in human
resources and start-ups with vertical
expertise in big data (data
visualization and data analysis). In
compliance with regulations, the
Group positions itself as a FAIR
(Findable, Accessible, Interoperable,
Reusable) data company.
Revenues %
2020 2023
0% 6%
|«CORE» BUSINESS LINES NEW BUSINESS LINE
The Group will continue to focus on areas of excellence by
making the following organizational changes:
1. Separation of the divisions into different companies
to offer each a unique and distinctive positioning
recognizable by customers
2. «Sales» division across all group companies to share
the system, the network of relationships and
customer portfolios to scale new activities on
3. Control and coordination guaranteed by the Issuer
and staff functions (AFC, marketing, sales)
4. Lowering of the break-even point
5. Streamlined organizational flows.
SG COMPANY BUSINESS MODEL INNOVATION
As early as 2020, the service/product offering had evolved and a
proprietary platform for digital events had been developed.
1. Talent management: inclusion of vertical skills in
work teams and launch of a program to retain
company talent
2. Network centricity: network of solid alliances built
with suppliers and partners to make the company’s
market offering increasingly efficient and innovative
3. Innovation: participation in Open Innovation systems
and start-ups to engender ideas and innovative
services
4. M&A program to acquire possible targets of interest
as in the past.
Launch of a new business line that extracts and «enhances» on
the market the data made available through «core» activities
1. Inclusion of dedicated roles and/or companies/start-
ups with expertise in innovation and digital
transformation
2. Creation of a dedicated company to design and
implement data gathering through the activities of
other group companies
3. Possibility to sell on the market the design of
dedicated platforms and apps
4. Integration of a portfolio of marketing automation
services on top of the products and services currently
sold.
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EXISTING BUSINESS LINESBUSINESS LINES IDENTIFIED AND IN
IMPLEMENTATIONBUSINESS LINES TO BE IMPLEMENTED
MARTECH ACTIVITY PORTFOLIO
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ON AND OFFLINECONTENT
TECHNOLOGY
PRODUCTION
SERVICES PROVIDED
FIRST PARTY DATA
Profilation, Location, Navigation, Lifestyle, Biometrics, Transportation,
Insurance, Banking Data.
WE INTEGRATE TECHNOLOGY INTO ALL OUR VIDEO, LIVE, AND DIGITAL
PRODUCTION ACTIVITIES BY CHOOSING THE MOST SUITABLE FROM OVER 8,000
POSSIBLE MARTECH SOLUTIONS AVAILABLE ON THE MARKET:
Expertise identified and to be acquiredExpertise already in place
1. advertising and promotion (display adv, mobile marketing, search & social adv,
content adv, video adv…)
2. user experience and content marketing (e-mail marketing automation, content
marketing, interactive content, chatbot, QR Code).
3. social media management and pr (social media automation, lead generation,
conversion, omnichannel marketing)
4. commerce and sales (mobile app, sales customization, e-commerce, IoT, retail
proximity, hyper-geolocation, app & website development)
5. data management (data gathering, governance, privacy, data marketing, analytics,
dashboard, data science, customer intelligence, platform, cookies, fingerprints, pixel,
data visualization, wearable and IoT for distribution during format and live
communication).
Data gathering and analysis process Value Extraction
Data gathering from live and digital activities, or from formatsOrganization of proprietary or third-party data
Powering machine learning
Data processingEasy to understand insights
KPI presentation
Consulting in analysis and value extractionfrom information processed
Consulting related tobusiness solutions and action plans
based on information gathered and processed
DATA VALORIZATION: FROM GATHERING TO VALUE
DATA GATHERINGFIRST & THIRD PARTY DATA
DATA VISUALIZATION
DATA ANALYSIS
DATAACTIONABILITY
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DEVELOPMENT OF PROPRIETARY TECHNOLOGY PLATFORMS
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live streaming
sessions
Direction flow management
for live streaming sessions
(speaker connection from
remote) outside the platform
scope, including on several
virtual rooms simultaneously
Section dedicated to live
streaming Q&A
Exhibition and interactive area
with map of stands in
isometric view and different
sizes depending on type of
sponsorship
Exhibition space dedicated to
the sponsor, divided into 4
available formats
"Networking" area with match
making and user search
function, one-to-one chat
between participating users
and exchange of digital
business cards
Personal user area with
personal profile editing,
archive of received digital
business cards, list of favorite
digital events, chat with
conversation history.
Interactive agenda of live
streaming sessions, with
identification by content
categories
DYHM is SG Company's proprietary digital event management platform,
fully responsive on all types of devices. The three main features of the
platform are:
exhibition area
with sponsor
stands
business
networking
opportunities
ROLE ORGANIZATION CHART: C-SUITE
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Chief Mark. & Operat. Officer
Chief Executive Officer
DavideVerdesca
Chief Digital & Innovation OfficerChief Sales Officer
Chief Financial Officer
HALLMARKS
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Reputation and twenty years of experience built on the quality
of services and professional expertise of human resources
Portfolio of high-standing clients, for the development of
new business areas
Diversification of core sectors (banking, pharma, insurance,
automotive, energy, ICT, food & beverage, luxury, beauty,
delivery)
High growth rate sector
International scalability thanks to the network of offices and
partnerships abroad
Open innovation project for technological integration
between core & digital activities and data valorization
Data Ethics Canvas: In data processing, data privacy and
data ethics are integral parts of the SG approach.
Track record of success in the M&A process
Innovative SME and Benefit Company with start of ESG
process
GROUP AND CURRENT SHAREHOLDERS
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SG S.r.l.
80%100%100%100%
CURRENT SHAREHOLDERS
82.7% | DL S.r.l17.3% | Market
The Board of Directors of SG Company is composed of the two founding partners assisted by the CFO and COO. The independent member is Prof. Carlo
Altomonte (Bocconi). The Management team boasts solid experience both in the historical business lines as well as in the innovative ones, such as
digital, hybrids, format design and development.
MARKET AND COMPETITIVE CONTEXT
SG COMPANYDIGITAL TRANSFORMATION
AND NEW BUSINESS
2021 – 2023BUSINESS PLAN
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02
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GROUP AND CURRENT SHAREHOLDERS
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⊙ Marketing Technology: a $121 billion market with a 22% growth rate:
⊙ US companies invest 26% of their budget in marketing technology. The spillover rate in
Italy is quite interesting: digital and technology are among the levers of growth that
companies from across every industry are betting on.
⊙ Marketing automation solutions: software designed to personalize content, speed up
response times, automate digital and marketing activities, produce and store
multimedia content, and create omnichannel experiences.
⊙ Goal: generate insights from data and build data-driven marketing strategies and
activities.
GLOBAL TREND: DIGITAL, THE PRIME CHANNEL
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Winners: A Losers: B
Short
Term: 1
○ Pharmaceuticals
○ Medication and protective
equipment (PPE) manufacturers
○ Home exercise equipment
○ Carry out food providers
○ Home office equipment makers
○ Alcoholic beverage makers
○ Casual and relaxed fashion
○ Restaurants
○ Sports stadiums, concert halls
○ Museums
○ Gyms
○ Parks, beaches, recreation areas
○ Physical schools and universities,
especially private
○ Real estate owner and services
○ Formalwear
Short &
Long
Term: 2
○ Online Retailers
○ Online grocers
○ Networking software service
and hardware providers
○ Streaming service providers
○ News and entertainment
services
○ Telecommunications
○ Cleanliness products
○ Online Education
○ Cruisers
○ Tourist service providers
○ Oil producers and distributors
○ Manufacturers of gasoline engine autos
and trucks
○ Mass transit service and equipment
providers
○ Brick and mortar retailers
○ Movie theatres
WINNING AND LOSING CATEGORIES IN THE COVID-19 RECESSION
WARC DATA Global Ad Trends, May 2020
GLOBAL TREND: ON DEMAND OR STREAMING, EVERYTHING, AS LONG AS IT'S VIDEO
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⊙ The trend of spending on Global Ad is recovering rapidly,
brands have decided how to manage their communications
in the new normal, and budgets are back on track.
⊙ Investments in digital channels are confirmed, with much
better average performance than other media. Video and
social media remain the two main channels, and forecasts
show further improvement.
GROUP AND CURRENT SHAREHOLDERS
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From 2021, the live events sector is also expected to reverse upwards
and enjoy a positive trend until 2024.
Accelerated transformation of E&M segments versus forecasts,
especially for the video segment. Cinema versus video on demand
(SVOD) subscriptions is now reversing historical trends.
The volume of data consumed by smartphones versus fixed
broadband shows how mobile is set to become the primary gateway
to the web for consumers worldwide.
PwC GlobalEntertainment &
Media Outlook2020-2024
MARKET ANDCOMPETITIVE CONTEXT
SG COMPANYDIGITAL TRANSFORMATION
AND NEW BUSINESS
2021 – 2023BUSINESS PLAN
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BUSINESS PLAN DRIVERS
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AInternationalization through
Nexthing network and expansion
of business lines (production and
post-production of commercials)B
Launch of a new business line
Data Analytics CInvestment in proprietary
technology platforms and
development of Open Innovation
projects in association with
universities, research centers or
start-ups
DUpselling to customers by
directing them to new business
lines with higher margins
EConsolidation of the hybrid
events business line FEfficiency with over 50%
reduction of structural and
personnel costs to make them
consistent with the new
company size (BEP)
GBuilding of strong commitment
with staff to achieve business
plan targets (Work for Equity) HM&A and strategic partnerships
for the integration of skills in
Digital and Data Driven areas
A B C D
E F G H
3-year exclusive agreement with ACI Blue team, a 100% ACI Group company, to provide top clients with a unique offering. Under the agreement, ACI will offer operational services related to meetings & events, while SG will provide digital strategy & communication services.
Thanks to the agreement in place, SG Company will be able to continue to offer, through ACI, meetings & events services, incurring lower costs in line with the Business Plan target of lowering the break-even point.
ACI Blue team is positioned among the top 5 companies in the organization of meetings & events in Italy with high-standing clients.
NEW STRATEGIC PARTNERSHIPS:
BUSINESS PLAN TARGETS
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Net revenues Normalized EBITDA
NFP (cash) Operating cash generation (excluding capex)
PN
REVENUES DEVELOPMENT 2020-2023: BREAKDOWN
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FOCUS ON HISTORICAL AND SCOPE CUSTOMERS
⊙ Historical Business Area: focused on traditional business in the MICE and live event area, whose
contribution will remain firmly above 50% of total generated revenues, without exceeding 2019 levels
⊙ Areas for Improvement (i.e. Upselling and Cross + to be developed): driven by the introduction of the
Phygital and Video product, in addition to the traditional Digital business (contributing roughly 30% of
total)
⊙ New Business Area: to be developed with entry of 2 new executives into the company scope. The
percentage on turnover increases from 10% in 2021 to 15% in 2023
Data ‘000€
Revenue generation detail 2019A %
Top 3 7,699 20.6%
Top 10 16,330 43.6%
Top 20 22,494 60.1%
Totale 37,442 100.0%
Di cui confermabili 21,203 54.0%Of which confirmable
Total
Historical Cross + to be developed TotalNew Upselling
SG COMPANYa Sharing Growth Company
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Thankyou
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