we take your business above the clouds€¦ · cagr by cloud service category, 2016-2020 worldwide...
TRANSCRIPT
1
WE TAKE YOUR BUSINESSABOVE THE CLOUDS
CLOUD TRANSFORMATION JOURNEYBeing an european cloud leader for non-stop
business companies in the cloud transformation
era.
Midcap Partners ConferenceParis, May 14th 2019
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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.
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Disclaimer
3
Market AnalysisWorld Wide
MARKET ANALYSISWorldwide Cloud Trends
4
1. Autonomous Things
2. Augmented analytics
3. AI-driven development
4. Digital Twins
5. Empowered edge (Cloud)
6. Immersive Technology
7. Blockchain
8. Smart spaces
9. Digital ethics & privacy
10. Quantum computing
Strategic
Technology
Trends2019
4
5
1. Autonomous Things
2. Augmented analytics
3. AI-driven development
4. Digital Twins
5. Empowered edge (Cloud)
6. Immersive Technology
7. Blockchain
8. Smart spaces
9. Digital ethics & privacy
10. Quantum computing
Strategic
Technology
Trends2019
How many of them are Cloud based?
5
6
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
2020E/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
7
Worldwide Cloud Growth 2016-2020
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)
Revenue TrendsIaaS + PaaS represents the highest volume in
Cloud revenue
(excluding Cloud Advertising that is not an IT
service)
Growth TrendsIaaS and PaaS growth will continue with
the highest CAGR rate in the Cloud Arena
5652484441
15131197
7665
5546
39
72
58
4635
25
151
134
119
105
90
$0
$50
$100
$150
$200
$250
$300
$350
$400
20202019201820172016
Cloud Advertising
Cloud System
Infrastructure Services
(IaaS)
Cloud Management &
Security Services
Cloud Application
Services (SaaS)
Cloud Application
Infrastructure Services
(PaaS)
Cloud Business Process
Services (BPaaS)
Source: Gartner (Feb 2017)
Worldwide Cloud Revenues (B$)
8
Italy Cloud Computing trends
29,80%
24,00%
10,90%11,80%
0%
5%
10%
15%
20%
25%
30%
35%
Public CloudHybrid CloudVirtual Private CloudPrivate Cloud
CAGR by Cloud Service Category, 2016-2020
Italian Cloud Computing
Source: Netconsulting Cube (2018)
1.042799
624484367
665
608549
491440
1.660
1.377
1.108
887
703
485
439
394
353
310
0 €
500 €
1.000 €
1.500 €
2.000 €
2.500 €
3.000 €
3.500 €
4.000 €
20202019201820172016
Private Cloud
Hybrid Cloud
Virtual Private Cloud
Public Cloud
Revenue TrendsHybrid + Virtual Private represent the
highest volumes in Cloud revenues
Growth TrendsHybrid as a multi-cloud enabler will lead the
growth of both Private and Public cloud
Source: Netconsulting Cube 2018
Italy Cloud Revenues (M€)
9
Gartner predicts
Death of Data Centers
Gartner predicts that by 2025, 80% of enterprises will shut down their traditional data centers. In fact, 10% of organizations already have. This data point does not necessarily mean everything is going to the cloud, but IT leaders do need to start thinking about where current and future workloads will live based on business reasons (e.g., customer engagement, GDPR regulations), not technology reasons.
Source: Top 10 Trends Impacting Infrastructure & Operations for 2019
Analysts says
In 3 Years
Percent of
companies
forecasting
using multiple
hybrid clouds
within three
years
IBM Institute forecast
Source: Survey of 1106 executives across 19 industries and 20 countries. Published on IBM Assembling your cloud orchestra, October 2018
98%
Analysts say
10
1. No more CAPEX in no core investments
2. Top 3 business continuity fault causes are:
#1 Datacenter technology level
#2 Cyber security
#3 Human Error
3. Scalability and flexibility
4. Competences
Being global and digital is
imperative.
Being global means global
process governance.
Governance and digital mean
tech performance, data
security and process reliability.
Why companies move to Cloud
11
Italian Cloud between past and future
624484367
549491
440
1.108
887
703
394
353
310
21,5% 21,7%20,8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
0 €
500 €
1.000 €
1.500 €
2.000 €
2.500 €
3.000 €
3.500 €
4.000 €
4.500 €
201820172016
Public Cloud Virtual Private Cloud Hybrid Cloud
Private Cloud Growth rate%
PastTrend has been consistent over yearsand companies are still at their youth in cloud adoption.
FutureCloud growth 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.
Source: Netconsulting Cube 2018
1.042799
624
665
608
549
1.660
1.377
1.108
485
439
394
20,8%20,5% 19,5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
0 €
500 €
1.000 €
1.500 €
2.000 €
2.500 €
3.000 €
3.500 €
4.000 €
4.500 €
202020192018
Public Cloud Virtual Private Cloud Hybrid Cloud
Private Cloud Growth rate%
Source: Netconsulting Cube 2018
11
12
WIIT AT A GLANCE
13
MilanCastelfranco
Veneto
Rome
italian
branchesFlorence
702
5
connected
countries
global
branches
2enterprise
datacenter
70%
Top clients
with DR/BC
90%
Top clients
run ERP suites
80%
Top clients
run SAP
70Top
clients
2,5Bannual
transactions
+200Mid
clients
We support our clients on a global levelGeographical coverage of clients connected to our datacenters
14
SERVICESPUBLICCloud
CLOUDTYPE
System Integrator
PaaS
IaaS
System management
Network & connectivity
Server, storage & backup
Data Center
Database Management
SAP system management & other APP
SOC & Cyber SecurityAn integrated
value chain
to guarantee
critical SLAs
DatacenterProvider
WIIT
Wiit Market Positioning
SAP Application Support
Help Desk
15
• 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
Maintenanc
e 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%
15
Wiit Strategic AssetTier IV datacenter for business critical applications
16
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
Customer Private Cloud
Hosted Private Cloud Public Cloud
Managed Services
Business Continuity
Wiit Delivery Platform
Business
App
Non Critical
-
+Critical
The new trend for Critical Corporate Apps
17
7 REASONS TO INVEST
18
Pure Cloud playerone of the few Italian companies exclusively specialized in key services for clients’
business continuity in the Private and Hybrid Cloud
• Oracle Gold Partner
• Official Microsoft Partner
• SAP Partner
(*) Source: Uptime Institute Website – Tier Certification of Constructed Facility – May 2019
ISO 27001
ISO 20000
ISO 22301
ISAE 3402
Information Security
Process Compliance
Business Continuity
Audit & Governance
Data center with the TIER IV Certification, the highest world
class attainable in reliability and securityIn Italy there are only 7 Tier IV data centers, while in the world merely 52*
Top certifications for Process, Security, Continuity and Governance
Partner of SAP – Wiit is one of the most certified SAP partner in
the world in Outsourcing servicesWiit has 5 (out of 6) SAP certifications in Outsourcing and Cloud Operations
1 A leading pure Player in critical Cloud Services for Enterprises…
Full direct control of the entire stack of servicesAsset, Skills and Process completely owned and controlled by Wiit
19
• Cloud computing is one of the most solid and growing fast IT segment: +21% of 2016-18 CAGR in Italy (*)
• Hybrid & Multicloud, Intelligent Cloud, PaaS & Cloud Native Architecture and Cybersecurity are the top 4 out of 6 higher potential ICT investments according to Osservatori.Net – Osservatorio Cloud Transformation 2018
CLOUD MARKET IN ITALY
(*) Source: Assintel Report on NEXTVALUE 1000 CIOs and IT Managers surveys ("Ricerca sulladomanda IT in Italia", 2018)
2 …a 20+% growing Market
KEY CLOUD TRENDS IN ITALY
Source: Osservatori.net - Osservatorio Cloud Transformation Ott, 2018
25%
42%
50%
75%
75%
83%
Agile & Automation
IoT & Edge Computing
Cybersecurity & C.Intell.
PaaS & Cloud Native Arch.
Intelligent Cloud
Hybrid & Multicloud
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
1.042799624
665608
549
1.660
1.377
1.108
485
439
394
20,8% 20,5% 19,5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
0 €
500 €
1.000 €
1.500 €
2.000 €
2.500 €
3.000 €
3.500 €
4.000 €
4.500 €
202020192018
Private Cloud
Hybrid Cloud
Virtual Private
Cloud
Public Cloud
Growth rate%
20
• Top standing large and medium enterprises with high credit worthiness
and high IT budget spending
• Many multinational groups, well diversified by economic sector, supported
by Wiit at a global level
• Very high retention rate (high client satisfaction)
• More than 70 clients* WIIT, with a stable growth over the last years
• More than 200 clients Adelante
• Direct sales force
• Increasing avg. revenues per client thanks to:
• Bigger new clients
• Increasing share of clients’ needs satisfied by Wiit
• Cross-selling of further services to existing clients
3 High standing Client Base…
(*) Core clients: clients generating more than 100k€ / year and relating to core business (cloud, SAP) and extended core (user support and document management)- excluding una tantum projects and non core activity (NDP, Hyperion)(**) Source Clients Financial Report 2018 and Management account – data not audited
Fig. 1
CLIENTS GLOBAL DISTRIBUTION70 connected countries
The first 10 Top Clients have
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
5%
Fig.2
TOP 10’s CLIENT REVENUE BY
SECTOR(Informative Prospect 2018)
21
• Multiannual contracts grants a high predictability of the business
• 48.7 €mn* of Backlog as at 1st January 2019, equal to 1.9 times 2018A sales
• Multiannual maturity: 4-5 years standard
• High penalties for the client in case of early termination:usually ~60-70% of residual contract value from the 2nd-3rd year on
• Quarterly or monthly invoicing
• Wiit has the right to interrupt services if the client does not
pay
TYPICAL WIIT’S CONTRACT SCHEME BACKLOG AS AT 1st JAN 2019 (€mn)
…granting a high Visibility of Business
(*) 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
4
21
22
5 A committed Management Team…
Alessandro CozziCEO
Class 1972
• Founder and majority
shareholder of Wiit - President
and Chief Executive Officer
since its inception
• Expert in business
administration, finance and
controlling, directly pilots the
administration and financial
activity, strategic alliances and
M&A activity
Riccardo MazzantiCHAIRMAN & COO
Class 1970
Experience:
• 1994 – Consultant at Infogroup
• 1997 – Manager of the data center
and opening of new Metro Cash &
Carry shopping centres
• 1999 – CIO of The Medusa Film Group
(Fininvest Group)
• 2005 – CRM Director for the startup of
DTTV in Mediaset
• 2008 – Chief Operating Officer of Wiit
Enrico RampinCHIEF SALES & MKTG OFFICER
Class 1968
Experience:
• 1998 – Sales Executive
North-east and central
region for a Systems
Integrator company
• 2002 – Sales Leader in CPG
market for Oracle
• 2009 – Chief Sales &
Marketing Officer of Wiit
Francesco BaroncelliCHIEF M&A
Class 1971
Experience:
• Founder of Adelante Group
– director of Adelante with
20 years of experience in
the Information Technology.
• 2018 – Chief Merger &
Acquisitions & Head of New
Markets of Wiit
• Experienced management team which led the development of Wiit since its foundation
• Commitment enhanced by a direct stake in the Company
• Bonus mechanism based on EBITDA increase
• Long term incentive plan – As STAR segment requirement
22
23
12,715,5
19,6
25,2
0,0
5,0
10,0
15,0
20,0
25,0
30,0
2015A 2016A 2017A 2018A
• Continued revenues growth in the last years, riding the Cloud market trend to expand the client base and the services offered
• Big potential for a margin expansion thanks to a scalable platform with fixed costs mainly:
• Personnel
• Connectivity costs
• Rent
EBITDA Adj.* (M€) and MARGIN %SALES (€mn)
* EBITDA adjusted excluding the Figurative cost of Performance Shares and IPO costs
6 …leading Wiit to achieve a Sharp Growth…
3,84,7
8,5
10,4
0,0
2,0
4,0
6,0
8,0
10,0
12,0
2015A 2016A 2017A 2018A
41,3%
25,2%
30,6%
43,3%
24
GROSS CASH FLOW HISTORY (M€)
Wiit boasts a big cash generation potential:
• Facilities now used at 40% of their capacity
• Limited maintenance capex for technological
update and for continued R&D (approx. €1.0mn
per year on average in 2014-2018)
• Development capex mainly for new clients (set-up
costs to be sustained in the first contract year)
• Modest NWC needs2,2
2,93,8
7,0
8,9
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
24
7 …with high Cash Flow Growth + 46%
25
FINANCIALS
26
Free Float
35,1%
Own Shares
2,4%
Orizzonte SGR
0,9%
Wiit Fin Srl
61,5%No. Shares 2.652.066
Shareholding Structure at March 2019
26
Shareholders
27
IPO MTA STAR SEGMENT
April, 2nd 2019
We expect an improvement of stock
liquidity and expansion to potential
international investors and
technology focused funds
45 €IPO price
48 €Average price
from IPO*
2.081Daily average
liquidity*
Share Information
* Share Information updated on April 2nd 2019
28
KEY FINANCIALS (€mn)
Consolidated Consolidated
15,3
19,6
25,2
4,7
8,510,4
1,84,2 4,9
30,6%
43,3%
41,3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
5
10
15
20
25
30
35
2016 2017 2018
Revenues Ebitda adj Ebit Ebitda adj %
CAGR2016-2018
+28% Revenue
+49% EBITDA Adj.
+64% EBIT
+28% Wiit
+21% Cloud Market
Revenue
CAGR2016-2018
REVENUE GROWTH COMPARISON
Scale up
the best industry
key financial
indicators
21,5% 21,7% 20,8%19,9%
27,5%29,0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2016 2017 2018
Wiit
Cloud
Source: Netconsulting Cube 2018
Leading the best market Financial indicators
29
WIIT Group operates with multiannual contracts that grants a high predictability of the business
48.7 €mn* of Backlog
as at 1st January 2019,
equal to 1.9 times 2018A sales
• Multiannual maturity: 3-5 years standard
• High penalties for the client in case of early termination: usually ~50-70% of
residual contract value from the 2nd-3rd year on
• Quarterly or monthly invoicing
• WIIT has the right to interrupt services if the client does not pay
TYPICAL WIIT’S CONTRACT SCHEME
25,2
48,7
0,0
10,0
20,0
30,0
40,0
50,0
60,0
SALES 2018 BACKLOG
1.9 x
BACKLOG AS AT 1st JAN 2019 (€mn)
(*) data audited in January 2019
Key financials - Backlog
30
• Continued revenues growth in the last years, riding the Cloud market trend to expand the client base and the services offered
• Big potential for a margin expansion thanks to a scalable platform with fixed costs mainly:
• Personnel
• Connectivity costs
• Rent
EBITDA Adj.* (M€) and MARGIN %SALES (€mn)
* EBITDA adjusted excluding the Figurative cost of Performance Shares and IPO costs
12,715,5
19,6
25,2
5,27,5
0,0
5,0
10,0
15,0
20,0
25,0
30,0
2015A 2016A 2017A 2018A 2018-Q1 2019-Q1
3,84,7
8,5
10,4
2,22,9
0,0
2,0
4,0
6,0
8,0
10,0
12,0
2015A 2016A 2017A 2018A 2018-Q1 2019-Q1
41,3%
25,2%
30,6%
43,3%
…Q1-2019 continue to achieve a Sharp Growth…
41,8%38,2%
31
• Fixed assets mainly include the two Wiit’s
datacenters (today used at approx. 40% of
their capacity) – amortization in 5 years
• Goodwill refers to the merger of Sevenlab S.r.l.
into Wiit in 2014 and acquisition of a division of
Visiant Technologies in 2015, Adelante Group
and Foster in 2018
• Intangible Assets Q1-2019: 2 millions IFRS16
• Other payables in current liabilities Q1-2019: 2,3
millions Debt for dividend distribution
Balance Sheet: Q1-2019 ResultsLow NWC and indebtedness
IFRS Form (€ 000) 2016 2017 2018 2018-Q1 2019-Q1
Intangible Assets 917 1.402 4.050 2.971 6.676
Intangible Assets - Goodwill 1.315 1.315 9.736 1.315 9.736
Property plant and equipment 8.920 12.912 13.823 14.947 14.163
Other Tangible Assets 0 0 0 0 0
Investments in associates 464 458 68 458 68
Total non-current assets 11.616 16.087 27.677 19.691 30.643
Inventories 12 0 0 0 0
Trade and other receivables 4.023 3.292 4.699 5.125 4.279
Intercompany receivables 875 1.122 461 1.326 213
Advance Tax 300 377 685 377 662
Other liquid assets 475 395 1.734 836 2.785
Total current assets 5.685 5.186 7.580 7.664 7.940
Tax current liabilities 292 366 669 454 391
Trade and other payables 1.729 2.058 3.802 3.957 5.669
Payables vs related companies 0 0 0 0 36
Other payables and current liabilities 708 807 2.056 911 4.542
Total current liabilities 2.729 3.231 6.528 5.322 10.638
Net Working Capital 2.956 1.955 1.053 2.342 (2.698)
Other payables and non-current liabilities 320 220 1.340 475 1.217
Employee benefits liabilities 817 918 1.259 944 1.304
Provisions for deferred tax liabilities 29 29 214 29 214
Total non-current liabilities 1.166 1.167 2.813 1.447 2.736
NET INVESTED CAPITAL 13.406 16.875 25.917 20.586 25.209
Equity 4.512 24.755 22.243 24.629 21.521
Net Financial Debt (Cash) 8.895 (7.880) 4.383 4.043 4.495
Net Financial Debt (Cash) Excluding impact of
IFRS16 3,299 1.397
Cash and cash equivalents at year-end 3.610 21.514 17.930 19.974 18.885
32
Net Financial Debt (Cash) (M€)
* EBITDA adjusted excluding the Figurative cost of Performance Shares, IPO costs, cost relating M&A
• Big potential for a margin expansion thanks to a
scalable platform with fixed costs mainly
• Performance shares plan generates a figurative cost
ex IAS principles (tax deductible)
• IPO cost: cost related to listing process
• M&A cost: cost related to due diligence for Merger
and Acquisition
• Tax benefits active from year 2016 on:
• “Super-ammortamento”: 140% overvaluation of the
2017 investments in new assets purchased or leased.
Opportunity to benefit of subsidy for investments in
intangible capital goods (software and IT systems)
Income Statement: Q1-2019 Results
IFRS Form (€ 000) 2016 2017 2018 2018-Q1 2019-Q1
NET SALES 15.341 19.556 25.237 5.188 7.474
Cost of products and service sold (excl. IPO costs) 7.586 7.255 10.121 1.878 3.278
Cost of employees (excl.Figurative cost
Perf.Shares) 2.616 3.606 4.395 1.066 1.245
Other cost and charges 400 217 309 74 94
Variation of inventory 38 12 0 0 0
Total costs 10.640 11.089 14.826 3.018 4.616
EBITDA Adjusted 4.701 8.467 10.412 2.169 2.857
30,6% 43,3% 41,3% 41,8% 38,2%
Amortisation, depreciation 2.300 3.433 5.108 1.185 1.376
Figurative cost of Performance Share 2016-2018 585 394 283 71 0
IPO Costs 455 142 0 793
OPERATING PROFIT 1.817 4.186 4.878 913 689
OPERATING PROFIT Adjusted 2.401 5.034 5.303 984 1.482
15,7% 25,7% 21,0% 19,0% 19,8%
Depreciation of investments in associates 0 (6) 0 0 0
Financial income 19 42 7 1 129
Financial costs (466) (452) (508) (44) (56)
Exchange rate differences (18) 92 (90) 3 0
RESULT BEFORE TAXES 1.352 3.862 4.287 873 761
Income taxes 441 725 791 184 (848)
NET RESULT 911 3.137 3.496 689 1.610
8,4 8,9
(7,9)
4,4 4,4
-10,0
-8,0
-6,0
-4,0
-2,0
0,0
2,0
4,0
6,0
8,0
10,0
2015A 2016A 2017A 2018A 2019-Q1
33
EBITDA Adj.* (M€) and MARGIN %SALES (M€)
(E) Average of Analysts Consensus for the year ending December 31, 2019 (source: Banca IMI, Intermonte SIM and Midcap LCM, October 2018)
15,519,6
25,2
30,534,9
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
2016A 2017A 2018A 2019E 2020E
4,7
8,510,4
13,5
15,8
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
2016A 2017A 2018A 2019E 2020E
42%
30,6%
43,3%
Group Annual Economic Results 2016-2020E (Y19 Estimate by Analysts Consensus)
2,4
4,24,9
7,59,0
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
2016A 2017A 2018A 2019E 2019E
EBIT (M€) and MARGIN %
0,9
3,1 3,5
5,66,5
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
2016A 2017A 2018A 2019E 2020E
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%
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)
Cloud players with a business modelcomparable to Wiit and multiannualcontracts schemes
lower (same business model)
cost synergies
IT players which can be consideredpart of the current Wiit Value Chain(for instance Datacenter, CloudIaaS), have a client base suitable toan up-selling strategy and possiblymultiannual contracts
mediumcost synergies + revenue synergies
(up-selling)
Profile Integration risksSynergies
Focus on Acquisition Strategy
34
35
WE TAKE YOUR BUSINESSABOVE THE CLOUDS
wiit.cloud
Enrico Rampin
Chief Sales & Marketing Officer