Company Profile. October London. Management Presentation. Niccolò Bossi, M&A and IRO

Transcription

1 Company Profile - London Niccolò Bossi, M&A and IRO

2 Forward looking statement This communication contains statements that constitute forward-looking statements, including, but not limited to, statements relating to the implementation of strategic initiatives and other statements relating to our future business development and economic performance. While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, (1) general market and macro-economic trends, (2) legislative developments, governmental and regulatory trends, (3) competitive pressures, (4) technological developments, (5) changes in the financial position or creditworthiness of our customers, obligors and counterparties and developments in the markets in which they operate, (6) management changes and changes to our Business Group structure and (7) other key factors that we have indicated could adversely affect our business and financial performance which are contained in other parts of this document and in our past and future filings and reports. Engineering is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events, or otherwise. For additional information on such risks, we ask you to consult Engineering s filings with Borsa Italiana and CONSOB and to consult applicable Italian laws. 2

3 Summary Highlights Our recent history Business Model Innovation, technology and assets Vertical Markets Conclusions

4 Engineering at a glance Highlights CAGR comparison. Data in mln. Market stands for IT Italian Market. Assintel estimates

5 Whoweare October - Milan2012 March 2012 Welmington (Delaware) Brussels Belo Horizonte São Paulo Curitiba Buenos Aires Engineering is the major Italian Information Technology Group and a leading IT multinational in Italy, Europe and Latin America. It is ranked as the fifth Company in its sector over the Italian Market according to annual revenues. In 2011, revenues reached 775,7 M, of which near 10% came from the international market and EBITDA totalized 92.2 M. The company now employs more than 6,500 professionals, approximately 3,800 external resources* and boasts a customer portfolio of over 1,500 firms, withoperations in 37 sites in Italy and 6 abroad. 5 * Expressed in terms of Full Time Equivalent on year basis, including T&M and estimates on Turnkeys

6 FY2011 Results October - Milan2012 March % Net Revenues 12.2% EBITDA Margin adjusted The Group reported higher revenues and stable margins* as compared with FY2010. The adjustment is due to 15.8M extraordinary costs referring to a restructuring plan undertaken during the year and with savings expected to be realized since 2012 onwards % * +0.2% % % Net Revenues EBITDA Adj EBITDA IAS EAT 6 Data in mln. * EBITDA Adjusted considering 15.8 extraordinary charges

7 1H2012 Results October - Milan2012 March % EBITDA Margin adjusted % EBITDA IAS The Group reported higher margins thanks to the effects of the 2011 restructuring process and a continuous improvement in productivity * % 11.2 % 10.8 % 39.5** 41.0*** 6.8 % % +4.0% % % Net Revenues EBITDA Adj EBITDA IAS EAT 7 Data in mln. ** EBITDA 2011 adjusted considering 14.2M extraordinary charges (1H). *** 2012, 1.6M extraordinary charges *Percentage on Net Revenues

8 FY2011 October - Milan2012 March 2012 FY11 FY10 FY11 FY10 Net Revenues % Backlog at % Value of Production % Booking % EBITDA Adj % Net Revenues % Equity % Backlog at % NFP Evolution Account receivablesfromregione Sicilia referring to 2010 activities still to be paid 3.2* (21.0) 0.49x Ebitda (10.0) Extraordinary charges Restatement 15.8 retirement plan 7.6 severance indemnity (46.7) (45.1) 9.7 acquisitions 2.0 re-organization 35.1 Total extraordinary charges (93.2) 8 Data in mln from Official Accounts FY2011. * NFP adjusted at the end of FY2011 including the value of treasury shares (as for 2011).

9 1H2012 October - Milan2012 March H12 1H11 1H12 1H11 Net Revenues % Backlog at % Value of Production % Booking % EBITDA Adj % Net Revenues % Equity % Backlog at % NFP Evolution 1H12 Cash& bank accounts Short term debt 74.2 (107.4) 1H (39.8) (52.5) (32.2) (46.7) Long term debt (19.3) 9 Data in mln from 1H2012 Release

10 Howwetookthe lead Our recent History 10

11 11 yearsof Growth CAGR % Extra CAGR CAGR % 14.0% Organic Total 2000 > 2011 organic , IPO 12th December M sharesof which2.5m (20%) offeredasfree float 40 / share 100M raised* Acquisitions Disposals Organic 11 Data in mln. Source: Company data from Official Accounts. * Gross value.

12 11 yearsof Growth Value of Production Orders CAGR ,0% CAGR % 182,7 215,8 256,5 276,1 322,3 388,3 425, EBITDA * 88.6* * Backlog CAGR % IAS-IFRS Atos acquisition Data in mln.. Source: Company official accounts. * Pro-forma figures, excluding extraordinary costs and revenues

13 11 yearsof Growth Equity Assets 921 CAGR % 310 CAGR % Capital Employed CAGR % NFP NFP Cash Debt (17.1) (20.3) (30) (38) (45.1) 13 Data in mln. Source: Company data from Official Accounts.

14 The Corporate Structure Engineering II SPA 100% 100% Since the IPO, the Group has completed several extraordinary deals. Thanks to an accurate scouting approach and attentive deal execution, Engineering has constantly integrated assets and people in order to broaden the spectrum of owned solutions and reach a wider potential customers portfolio. Engiweb Security Engineering Tributi OverIT Engineering Sardegna Nexen 95% 100% 95% 100% 75% Engineering International INC. Engineering International Belgium 25% 25% Engineering do Brasil 14.0% Total CAGR Acquisitions Disposals 8.8% Organic CAGR 2000 > 2011 organic Organic 91% 100% 75% Engo Engineering.IT 100% 100% 65% 182,7 SITEL* Servizi Telematici Siciliani* Sicilia e Servizi Ventures CAGR calculated from 2000 to * Companies under winding-up process

15 The Ownership Founders Cinaglia Amodeo 67.17% Free float 32.83% 34.96% 32.21% Engineering, listed since December 2000 on Milan Stock Exchange FTSE STAR Segment, maintains a simple ownership structure with 67% held by the two founders (Mr Cinaglia and Mr Amodeo), and 33% free float. Major financial institutions focused on long-term investments continue to bet on the stock, aware of the strength of the Group Business Model and the reliability of the Management. Tommaso Amodeo; 16.01% Rosario Amodeo; 0.27% Marilena Menicucci; 11.97% Costanza Amodeo; 15.93% Michele Cinaglia; 22.99% Market; 32.83% Bestinver Gestion SGIIC ca. 10% ING ca 2.1% Treasury shares ca 2.5% Others ca 18.2% 15 Shareholders structure at

16 Whatwedo Business Model CAGR comparison. Data in mln. Market stands for IT Italian Market. Assintel estimates

17 How we operate ESL Engineering Software Laboratory ERP Managed Operations Open Source Plant Management System ECM Market Software Factory PA Software Factory Industry & Services Software Factory Finance Software Factory Utilities TLC & Media R&I The Group is organised around four vertical markets which, over their three-decade history, have gained comprehensive insight into each business and crafted solid relationships with customers. This knowledge, coupled with latestgeneration technology, allows the Company to provide its clients with an offer that is both complete and of value. Engineering solutions serve the core of the business operations of the customers and require an essential capability of integration. 30 Years of history and innovation, reliability and success The Research and Innovation Division, comprising more than 320 researchers and highly qualified specialists, operates in close and ongoing collaboration with the leading world Universities and research centres. In 2011 the role of Research became of primary importance in the ongoing renewal of the Group offer and in the product development strategies and approach to the markets. 17

18 System Integration Margins System integration services customize or develop IT solutions, assets and processes and then integrate them with established infrastructure and processes. Development and integration services include three subsegments: application development(ad) services integration services deployment services Application Development AD services create new functionality for custom-developed or packaged applications and frequently serve to integrate or link internal or external business processes. Group EBITDA Deployment Deployment services support the implementation and rollout of new applications or infrastructure. Activities may include configuration, tuning, staging, training, installation and interoperability testing. System Integration Integration Integration services are detailed design and implementation services that link application functionality (custom software or package software or cloud services) and/or data with each other or with the established or planned IT infrastructure. Specific activities might include project planning, project management, detailed design or implementation of application programming interfaces. Contracts Lenght - 6m Custom SI contracts typically imply T&M or Turnkey agreements. The first features fixed prices for fixed resources and an estimated number of working daystocover the entirecycleof the project. Itmeanslowerrisksand a givenlevelof profitability. Turnkeycontractsallowsthe IT Player tobuilditsownprofitability thanks tothe capability toeffectively manageeffortsand resources. At the sametime, a riskoccurswhenthe goalsare notperfectlyreached. 0% 1Y 2Y 3Y 4Y 5Y Recurring VISIBILITY + 18

19 Application Management Margins Application management is a part of the IT Management area, through which the Group provides a wide variety of application services, processes and methodologies for maintaining, enhancing and managing custom applications, packaged software applications or networkdelivered applications. Group EBITDA AM The service is tipically delivered on multi-annual-based contractual arrangement, whereby the Group provides services on an ongoing basis at a specified level of competency Contracts Lenght - 6m Custom 0% 1Y 2Y 3Y 4Y 5Y Recurring VISIBILITY + 19

20 Outsourcing Group EBITDA Margins Outsourcing services provide day-to-day management and operation of IT assets and processes. It tipically refers to operation with less incidence of human efforts compared with other activites delivered by the Group. Services may include systems operation or support, administration, security, performance monitoring, technical diagnostics/troubleshooting, configuration management, system repair management, and generation of management reports. Also included are services to manage and implement business continuation processes and the management of technology assets. Outsourcing involves some degree of transfer of management responsibility for the ongoing delivery of IT services or processes from the final customer to the IT provider, with performance tied to service levels or outcomes. Contracts Lenght - 6m Custom Outsourcing encompasses the management of IT infrastructure (data center, desktop or network), enterprise applications and business processes. Outsourcing agreements may include services from the product support, consulting, and development and integration, tipically in the first part of the contractual period that generally lasts about 5-7 years. As part of an outsourcing agreement, the Outsourcer may acquire the physical assets and/or the employeesof a business client. 0% 1Y 2Y 3Y 4Y 5Y Recurring Outsourcing VISIBILITY + 20

21 Software Margins Software development and maintenance Group EBITDA Contracts Lenght - 6m Custom Software development refers to investments in proprietary assets (software, complex platofrms). The development process is based on certified methodologies that allow the Group to offer technology edge solutions aligned with the international best practices. The delivery process tipically ensures high profitability thanks to the initial selling of a Licence and the further maintenance process embracing the evolution of the software and the troubleshooting activities. The technical support (maintenance) can be delivered in order to fix some specific problem through incident-based approach or, more frequently, through long-term technical support contracts. This business proposal allows the Group to build high entry-barriers. The replacement cost of a complex software is significantly higher than a simple change of a services supplier. Furthermore, the possibility to work on the IT infrastructure of the customer, generates a complete understanding of the business and IT needs of the client, ensuring a strong commitment between Customer and Supplier. 0% 1Y 2Y 3Y 4Y 5Y Recurring VISIBILITY + 21

22 Consulting Margins Consulting services are advisory services to help companies analyze and improve the efficacy of business operations and technology strategies. In Engineering consulting services include two subsegments: Business and IT consulting. Group EBITDA Consulting Business Consulting Business consulting services embrace business operations consulting services that preface, enable and influence the adoption of IT. These tipically are: business process transformation business process redesign or re-engineering business performance improvement corporate compliance, riskmanagement and governanceadvisory. These services may be sold or sourced as discrete projects, or as part of a larger technology implementation initiative, or as preludes to outsourcing engagements. Business consulting such as business process improvement is frequently the front end of a large implementation project. IT Consulting IT consulting services are advisory services that help clients assess different technology strategies and, in doing so, align their technology strategies with their business or process strategies. These services support customers' IT initiatives by providing strategic, architectural, operationaland implementationplanning. Contracts Lenght - 6m Custom 0% 1Y 2Y 3Y 4Y 5Y Recurring VISIBILITY + 22

23 Whywedo itbetter Innovation, Technology, Assets CAGR comparison. Data in mln. Market stands for IT Italian Market. Assintel estimates

24 Innovation Portals, service-oriented architectures, Smart Cities, Health and Energy, Future Internet, BIG-DATA, business intelligence, software engineering, Cloud Computing, Open source, logical security are just a few of the main areas in which Engineering boasts competence and leadership in innovation. Nearly 30 M 2011 Total Investments of which 18.7 Min research and innovation and 11.3 Min software development and evolution Member of the Industrial Partner Board of the Knowledge Innovation Community EIT ICT Labs Awarded as one of the most advanced innovator representing Italy at Shangai EXPO, Engineering conducts several research projects in Europe with partners worldwide. We are developing new technologiesfor the audio-visual internet contents research (PHAROS) and the new 3.0 release of the complete open source platform SPAGO which insists on business intelligence applications, software quality certification and services oriented architecture(soa). 24

25 Innovative Investments Primary attention has been focussed on the Cloud Computing field, an area in which Engineering has already been operating for several years, with 6 projects at European level. Engineering coordinates a consortium of supercomputing centres with the objective to establish the basis for the creation of a cloud open source platform and the study and experimentation of tools for the analysis and certification of security and compliance of infrastructure based on innovative Cloud Storage technologies. The Cloud projects have enabled the Group to develop an open source platform with the final goal to extend the amount of high added value services and advanced solutions for the various market sectors. Engineering is seing cloud computing as a driver to client innovation, by offering flexibility and immediate availability of on-demand infrastructure and platforms. 25

26 Certifications Quality Environmental Development Project Management Information Security Workplace health and safety Technological Reliability ISO9001:2008 NATO AQAP 2110/160 ISO14001 CMMI-SE/SW v.1.3 level 3 CMMI-SE/SW v.1.3 level 3 ISO27001 OHSAS18001 PCI-DSS TIERIV Fault Tolerance Capability Maturity Model Integration (CMMI) is a process improvement maturity model for the development of products and services. It consists of best practices that address development and maintenance activities that cover the product lifecycle from conception through delivery and maintenance. The CMMI certification highlights the intrinsic quality and reliability of the corporate operation and development model processes. The reaching of level 3 of CMMI guarantees to Engineering clients reliability in the management of projects and associated risks and allows the Group to position itself at the Top among competitors in the sector. MaturityLEVEL 2 v MaturityLEVEL 3 v MaturityLEVEL 3 v

27 Skills 665 ITIL isthe mostwidelyacceptedapproach toit service management in the world. Itessentiallydraws a series of rulesand best practicesthathavetobeset withinanorganizationtoaidthe implementation and developmentof a lifecycleframeworkforit Service Management. Employees are ITIL certified (468) and are under certification process 392 PMI s Project Management Professional (PMP) credential is the most important industry-recognized certification for project managers. Globally recognized and demanded, the PMP demonstrates that the Certified Professional has the experience, education and competency to successfully lead and direct projects. Employees are PMP certified (318) and are under certification process Employees with technical and/or functional certification Total number of Certification 1,228 2,504 Change Management CRM DWH EAI ECM Major Areas of Certification SW Measurement Open Source Optimization Security WEB 27

28 IT Infrastructure PontSaint Martin Padua Turin PSM< 1.5 PUE 3 Data Centers 250 Customers 2.1Pbyte STORAGE 5,800 Server hosted 700Mps Band Capacity 62.5% Saturation TIER IV Our Managed Operations Department provides clients with a full offering of Outsourcing Services thanks to an highly advanced Technology Center located in Pont Saint Martin. The site responds to TIER IV Uptime Institute requirements and it is certified PCI-DSS and ISO The Engineering technology infrastructure can rely also on Torino Campus and Padua Disaster Recovery Center, realizing the most reliable and powerful Data Center Solution in Italy. After years of research, design and development as pioneers in Europe, the offering is now available in CLOUD mode. Performance, reliability, flexibility are the most common words to define our service. 28

29 IT Infrastructure PontSaint Martin Certified by the Uptime Institute with a TIER IV level (the maximum) the structure comprises of a 4,000 sq.m. surface area, with separated and self sufficient bunkers and redundancy of all equipment. In Italy, it is the only technological centre awarded this certification together with the Data Centre of Poste Italiane. Globally a total of 26 TIER IV certifications have been issued (19 in the Design Documents Fault Tolerance category). Padua ICT space allocated to active projects 1,800mq ICT space allocated to active projects 320mq Free Space 900mq ICT Total space 2,700mq Saturation level 67% Hot-Standby 24x365 ICT space allocated to active projects Free space 420mq ICT Total space Server hosted 800mq Turin 4, mq Server hosted Saturation level 47.5% 1,400 Free space 180mq ICT Total space 500mq Saturation level 64% Server hosted

30 IT Infrastructure Hardware OS/DB Middleware/Apps/Tools - Intel Industry Standard - Sparc - HP-Itanium - IBM Pseries/ Mainframe /AS Storage Netapp, IBM, EMC - Network (Cisco, Brocade,Huawey, HP) - VOIP, Videoconference - VMWare, Citrix - Microsoft Windows - Solaris - HP-UX - IBM AIX / ZOS - Linux (RedHat Suse Centos) - Oracle DBMS - MS SQL Server - MySql - DB2 - WebSphere/Jboss/Tomcat -.NET Framework - SAP - BaaN - Oracle Enterprise Suite - Sharepoint, Alfresco - Documentum, FileNet - BMC, HP, Symantec, IBM Server WS Network Users SAP Ticket/year WAN Technicalsystemsmanaged > 12,000 > 40,000 > 16,000 > 11,000 > 800,000 > 1,000 30

31 IT Infrastructure MO Major Customers Cloud Customers 31

32 ERP Business Processes covered 10% 20% 11% Business Intelligence 22% Financial / Controlling Logistics Sales & Services Human Capital Management 15% 22% Technology & Innovation 32

33 Automation& Control Design consultancy and integrated control of processes, systems and applications Support for highly specialised and business critical activities in industrial processes PLC Safety Applications Supervision/HMI/Scada solutions Building Automation Manufacturing ExecutionSystem LIMS for quality control laboratories and production controls Diagnostic& Maintenance system Engine& Driveline Testing Solutions Warehouse Management System Energy management Integration of field systems with ERP systems 33

34 ECM Vertical Solutions Industry Development Asset Management Tecnical Manuals Quality Processes Industry Finance Digital forms Bank statement Contract management Cross Market Solutions Tlc& Media CRM contractand document management Intranet DAM WCM KDB Portals Publishing PA Protocollo informatico Gestione Delibere Operational Portals Administrative sanctions management Domains of Expertise > Content Management Document management, eforms, digital assets > Web Content Management > Human BPM Workflow, Rules Engines > Capture Accounts Payables, Mailroom Aut. > Document Centric Collaboration > Records Management Compliance, data archiving, ILM Interactive modules integrated with ERP solutions Electronic billing Alternative filing Invoice management Knowledge Management Projects development archiving Post office automation Web Content Management e-learning Enterprise Search Pay roll management Business Analytics > Archiving > Output Management > IDARS Integrated Document Archive & Retrieval Systems > Portals & Collaboration > Search 34

35 Open Source The unique large-size Group with a complete OpenSource Offering The Competence Centerprovides a complete range of services, specific skills for the design and development of projects, professional and certificated competences to be applied to different types of solutions, which range from basic infrastructures (such as operating systems and databases), to middleware services (such as application servers, portal environments and enterprise integration solutions) and applications (such as BI, ERP, CRM, Document and Content Management, e-learning). The Research & Innovation Division leads and coordinates more than 50 resources located throughout Italy, which provide the market with professional certified competences and a complete support services offering. 35

36 Open Source Engineering is a member of OW2 Board of Directors and participates in the growth of the consortium at all levels, in addition to specific initiatives in which the company participates as the leader, such as in the OW2 BI Initiative, or as an active member, such as in OW2 European Local Chapter and OW2 Open Source Cloudware initiative. Since 2005 Engineering has been corporate member of the ObjectWeb Consortium and since 2007 it has also been a corporate member and co-founder of OW2 Consortium. Engineering's strategy is to promote the durable and sustainable development of an ecosystem centred on open-source software through the support of an international open source community and focusing its road-map on industrial initiatives. Goals Developing a comprehensive OpenSource Platform Including it in a wide offering ranging from consultancy to integration Proposing a Win Win business model 36

37 Business Areas Vertical Markets CAGR comparison. Data in mln. Market stands for IT Italian Market. Assintel estimates

38 Finance Assets Compliance& Governance Customer& Credit Collection and Payments Insurance Proprietary software * About 1,000 installations of proprietary licences qualify Engineering as exclusive partner and market leader in Finance Sector. Engineering has well established partnership with major Italian banking and insurance Groups, providing a full array of services in diverse business fields covering all the potential needs of the Finance sector. 80% of the Banks with operations in Italy adopt Engineering solutions 38 *# of installations active at per business area

39 Healthcare Assets Human Resources and Access Control Territory Management Hospital and Clinical Management Diagnostic Administration and Control Proprietary software * Engineering is the largest Italian IT services company specialised in the healthcare sector, capable of carrying out all the technical, regulatory and healthcare requirements from the general practitioner to the central administration level, from the regional councils to the local healthcare providers (Health Boards and Hospitals), through product, system integration and technological and application outsourcing know-how. The Group has developed since the acquisition of Olivetti Sanità in 2001 the most integrated, technology advanced and business focused software platform available for the italian market. 51% of Hospitals, 64%of Local Healthcare Centers, 33%of IRCCS Institutes and 40%of University General Hospital 39 *# of installations of the integrated AREAS Platform active at per business area

40 Local PA Assets 593 Tributi 60 E-Grammata 20 ACSOR 10 Nettuno 10 GERI 10 E-Praxi 5 Thebit 4 MNEMOS 2 CRM-PA Proprietary software * Engineering is the leader player, with a market share above 10% of the overall offeringof IT investmentsin localpublic administrationin Italy The keys to success: a wealth of comprehensive and integrated technological competences, service and consultingknow-how, a glocal vision of IT problems in the sector, characteristic of a global system integrator but near to the local customer Revenues: tax management and investigation of evasion Online services for citizens and business: SUAP/SAE, URP Agriculture: management of activities to meet legislative requirements, contributions, citizens and sector registers e-procurement: online procurement platforms, management of supply tenders and professional rolls Employment: support in Employment Centres, meeting supply-demand, management of action to meet legislative requirements Services to citizens and individual applicants: health and social, school, culture, sport and leisure Demographic and electoral: management of action to meet legislative obligations, management of help desks, INA/SAIA, cooperative register, Electronic ID cards All major Municipalities, Regions, Provinces and Local Authorities served 40 *# of installations per module at

41 Central PA Assets Public Connectivity System HR & Pensions Welfare Public Finance Defense& Security Today Engineering is one of the largest reference players for central public administration which also includes the International Relations Department for the management of business relations with EU government organisations, headquartered in Brussels. More than 40 large Italian and foreign public clients: ministries and state bodies, forces of public order and social security agencies, the armed forces and international defence organisations, as well as European institutions. Our strengths include a wealth of skills including organisational and regulatory drivers of innovative technologiesand methodologies, the capacity to achieve best practices suited to re-use, compact dimensions and team rigour, commitment that only a company of solid dimensions can guarantee, because core business and social mission are at the heart of the well-being of the country and citizens. 41

42 Energy & Utilities Assets 122 Users 94 Administrative ERP 65 Logistic 15 Human workload 5 Net@SIP- Personnel 85 GEOCALL Proprietary software * Gartner Magic Quadrant Worldwide CIS Solutions 40% market-share in the national Utilities market 42 *# of installations of the integrated NET@SUITE Platform active at per business area. GEOCALL is not included in NET@SUITE

43 TELCO & Media Assets VAS BSS OSS VAS for MVNO/MVNE Next Generation Messaging Convergent IP Services Mobile Payments VAS Portals and Platforms End-to-end value added services Mobile Services (i.e. Infotainment, Mobile Betting, Mobile Ticketing-Mobile Parking) Content Management Video Streaming and Video on Demand IPTV MultiChannel Communities Location Base Services Service Delivery Platform Rating&Billing(Prepaid e Postpaid) Convergent Billing Customer Relationship Management Unified CRM Revenue Assurance Churn Management Revenue&Fraud Management Partner Relationship Management End-To End fullfillment Service assurance Integrated service management Inventory management New generation intelligent network & New generation OSS Mobile messaging service assurance Flexibility, innovation, time to market and operating efficiency characterise our offering in the sector, in an era of convergence and innovation. Process and technological competences and a portfolio of vertical solutions, based on SOA approaches, convergence and IP services, complete our offering. Our ability to manage projects on a worldwide scale and the right local expertise qualify our IT initiative in Brazil, Argentina, Venezuela, through the subsidiary Engineering Do Brasil, Greece, Turkey and the Balkan area. As strategic, tacticaland operationalpartners, wedirect the challengesof a global market in continuous and deep transformation, thanks to our constant focus on the business and technological evolutions in the sector: business models (MVNO/MVNE) change, along with enabling technologies and aspects of the economic-social-regulatory context 43

44 Industry& Services Assets Automation Control ERP Managed Operations We serve the most important Italian and Multinational Industrial Groups in Italy and worldwide 44

45 Strenghts Conclusions CAGR comparison. Data in mln. Market stands for IT Italian Market. Assintel estimates

46 SWOT Analysis Strengths Wide portfolio of reference customers Technological excellence thanks to the Data Center infrastructure Optimal and balanced revenues breakdown by final markets Assets (proprietary software) well known as Market Leaders. Sound M&A track record and good ability to integrate acquired companies Best practices in delivery process (CMMI3, TIERIV and PMP) International R&D references and activities Highly flexible cost structure Substantially high level of productivity Sound financial structure Opportunities Further expansion through acquisitions and partnerships (a consolidator in the Italian IT market) Growing part of revenues comes from outsourcing (multi-year contracts, strict time-frame payment) New European contract awards Strengthening in Brazil Recent Government moves which should stimulate the digitalization of the public sector Acceleration of the public debt payments to the private sector (by acknowledging the European directive 2011/7/UE) Changes in fiscal policy is going to make tax-rate lower by the end of 2012 (IRAP) International leadership in Open Source platform development Weaknesses Working capital dynamic affected by Public sector exposure (should be partially addressed see opportunities) Tax rate (partially addressed see opportunities) Threats General deterioration of the macroeconomic context Increasing competition from worldwide players Dependence on the Italian IT market 46

47 Analists coverage Specialist since January 2011 Coverage since 2007 Former Specialist and Coverage since 2008 Coverage since 2007 Coverage since 2009 Coverage since 2012 Consensus Value of Production EBITDA EBIT Net Income

48 Company Profile Thanks for your attention! Engineering Ingegneria Informatica SPA Via San Martino della Battaglia ROMA Italy Tel Niccolò Bossi Head of M&A and Investor Relations Strada 1, Palazzo F/ Assago Milanofiori, MI Italy Tel [email protected]