Group strategies and forecast 2008 Andrea De Marchi Vice General Manager & CFO Itway Group London, October 2008
These slides have been prepared solely for the use at the current presentation and they cannot be shown or disclosed, totally or partially, to anybody without prior written consent by Itway Group.
Agenda Itway Group Strategies Financials Annexes
The Group ASA VAD ENTERPRISE ASA 100% 100% 100% 100% 100% 100%
Milestones
Agenda Itway Group Strategies Financials Annexes
Results achieved compared with the previous year announced short term goals Territorial diversification: Itway Group gets into the Turkish market with incorporation of Itway Turkiye. The new company takes the place of the main Turkish distributor, acquiring the important customer portfolio and distribution agreements with the main vendors. With Itway Turkiye, the Group forecasts to reach a turnover of around 7 / 10 million US$ in the coming twelve months, distributing in the Turkish market the main vendors in security solutions, such as Check Point, Nokia and Websense, already strategic partners of Itway in South Europe. The head-office of Itway Turkiye is located in Istanbul, the centre of the enterprise and finance markets, and a branch office is in Ankara, to cover also the Central Public Administration market.
Results achieved compared with the previous year announced short term goals Economic performances: the first nine months of current fiscal year show a 1,6% revenue growth, compared to the same period of the previous fiscal year, up to 91,7 million Euro. The general positive trend showed in all the countries and all the sectors in which the Group operates, despite the continual depreciation of the US$/Euro exchange rate: compared to the same period of last year, the US$ dropped about 15%: this caused an effect, real sales being equal, of a decrease in revenue recorded in Euro, originating with price lists in US$, of about 5 million Euro, with a subsequent effect on Gross Margin reduced by approximately 800 thousand Euro, with the same effect on Ebitda and PBT. Dividend distribution: the January 25, 2008 Shareholders Meeting approved the distribution of 0,13 Euro per ordinary share (+30%).
Results achieved compared with the previous year announced short term goals Strategic agreements: September 2007: distribution agreement with Arkoon Network Security, a French company leader in the supply of global and innovative solutions of security of information systems. The agreement covers Italy, France, Hellas, Spain and Portugal; February 2008: distribution agreement with SonicWall, an American company leader in the providing of secure networks infrastructure; February 2008: creation of a new Business Unit entirely dedicated to Citrix Systems, a worldwide leader company in distribution application infrastructure to corporate information on demand;
Results achieved compared with the previous year announced short term goals Strategic agreements: March 2008: distribution agreement with two main vendors: Stonesoft, European supplier of integrated solutions for security and business continuity, and VMware, a company leader in the virtualization market; June 2008: two new agreements for the distribution of the American PHD Technologies and tricerat solutions, for the first time on the Italian market. The distribution agreement with PHD Technologies applies to Italy, France, Spain, Portugal, Hellas and Turkey. The tricerat agreement applies to Italy, Hellas and Portugal.
Strategies: Short term goals 2009/10 Start up of branches in Switzerland, East Europe and Balkan Area; Further acquisitions in distribution and in System Integration sectors; +10 / 30% in turnover; Profitability increase through: strong internal rationalization and integration actions; increase in value added products and services; Continuity in dividend distribution; Possible integrations with greater multinational corporations to speed up the growth of the Group.
Strategies: Medium and long term goals To maintain the historic high growth trend of the Group; To consolidate the leadership in distribution and e-business solution design markets; To make stronger the leadership in Mediterranean Area; Internal and external growth; EBITDA >10%: improvement of gross profit; cost saving (O.H.trough scale economies and organizing). Improvement in Net Working Capital management: shorter payment terms from clients; high turnover of inventory; Continuity in dividend distribution; Possible integrations with greater multinational corporations to speed up the growth of the Group.
Strategies: Strategies for VAD SBU To consolidate the market leadership in current offering: Security management; Convergence (VoIP, ); RDBMS; Application Access Management; Internetworking; Virtualization; Other solutions. To expande offering to SMB and SOHO; To improve organizational efficiency and effectiveness in internal processes; To increase customer base in all the countries where the Group operates; To define a new catalogue of courses to widen the Itway Academy offer.
Strategies: Strategies for Enterprise SBU To consolidate organizational and functional synergies, to increase scale of operations and to maximize results of each segment of activity; To consolidate strategic partnerships and to define new ones: involvement in complex and strategic and high value contracts (i.e. Italian Ministry of the Interior for personal identification system in Libya); territorial diversification of opportunities (Mediterranean Area); Improvement in: Operating efficiency; Selling process (reorganization of processes: from scouting to delivery); Personnel management (detailed scheduling, ready to engage); Focus on services and consultancy sales; Diversification in industries.
Agenda Itway Group Strategies Financials Annexes
Financials: Preliminary Disclosure In the following slides it will be illustrated the financial data of the Itway Group relating to the period ended June 30, 2008, 2007 and 2006 (first nine months of the fiscal year from October 1st to September 30th ).
Financials: Consolidated Profit & Loss (*9 months Amounts in thousand of Euro) SALES * EBITDA * -7% 91.864 90.220 91.652 +2% Var. 3.571 2.855 3.307 Var. 2006 2007 2008 2006 2007 2008 EBIT * EBT * -12% -12% 2.331 1.206 2.885 1.861 2.543 Var. 1.772 1.640 Var. 2006 2007 2008 2006 2007 2008
Financials: Pro Forma Consolidated Profit & Loss (US$ E.R. flat) (*9 months Amounts in thousand of Euro) SALES * * EBITDA +7% +15% 90.220 96.652 Var. 3.571 4.107 Var. 2007 2008 2007 2008 EBIT * +16% EBT * +31% 2.885 3.343 Var. 1.861 2.440 Var. 2007 2008 2007 2008
Financials: Profit & Loss SBU VAD (*9 months Amounts in thousand of Euro) SALES * * EBITDA +1% -11% 77.143 75.255 75.826 Var. 2.695 3.117 2.782 Var. 2006 2007 2008 2006 2007 2008 EBIT * EBT * -18% -14% 2.382 2.664 2.190 2.054 Var. 1.965 1.685 Var. 2006 2007 2008 2006 2007 2008
Financials: Profit & Loss SBU Enterprise (*9 months Amounts in thousand of Euro) SALES * +6% * EBITDA +16% 14.721 14.965 15.826 Var. 160 454 525 Var. 2006 2007 2008 2006 2007 2008 EBIT * +60% EBT * 221 353-45 -104 Var. -282 +57% -51 2006 2007 2008 2006 2007 2008
Financials: Consolidated Balance Sheet (Thousand of Euro) Sep. 30, Sep. 30, June 30, 2006 2007 2008 Non current assets 13.744 14.014 15.076 Net Working Capital 11.458 10.937 10.218 Total invested capital 25.202 24.951 25.294 Net Worth 15.331 15.448 16.402* Net Financial Position 9.871 9.503 8.892 Turnover 113.024 110.594 91.652 * Includes Pre-Tax results of the period Days Net Working Capital Outstanding 30 30 2006 2007 25 June 30, 2008
Agenda Itway Group Strategies Financials Annexes
Who we are Itway is a Group of leading Companies in the supply and licensing of technologies for e-business solutions, able to offer concrete and highly affordable solutions to its partners. Itway bases its offer on a precise strategy: To offer best of breed technologies to the market; To train, to follow and to support its partners in a highly qualified way; To utilize best knoledge and most advanced available instruments; To build an integrated offer together with our partners on every bid.
Who we are: The integrated approach of the Groug RDBMS - BI e-commerce infrastructure Client Security E-Business Solution SBC Solution Appliance Internet working
Who we are: SBU VAD, a model of value Value Added Distributor which provides complex software, supplying consultancy and training. Model of Business recognized as one of the most innovative at European level by operators and by independent research firm. Focus on distribution of software addressed to realization of e-business solutions. Irreplaceable link between vendors and VARs, SI e Telcos, in the chain of value of distribution. Dynamic structure able to concentrate itself on markets with the higher growth rates. Infomediary, Distrigator and indispensable partner for VARs, SI and Telcos.
Who we are: our main Vendors
Who we are: our major Customers
Who we are: Distributor Ranking by Vendor Checkpoint Citrix Nokia Oracle Sun Symantec Trend Micro Vmware Websense Itway # 1 # 2 # 3 #1 #3 # 3 #1 # 3 # 3 Computerlinks # 3 # 3 # 2 # 2 # 2 Magirus # 2 # 1 # 2 # 1 AVNET #2 Esprinet #2 # 2 # 3 Computer Gross #3 # 4 ICOS # 1 # 1 Systematica # 1 Ready Informatica # 1 Tech Data # 5 Ingram Micro #4 # 5 EMC (software) RSA McAfee Symantec Itway Hellas # 2 #1 (exclusive) # 1 # 2 Infoquest # 1 Topnet # 2 Inet sol # 3 Performa # 3 Nokia Check Point Juniper Trend Micro Citrix Itway # 1 # 2 # 1 # 1 # 3 Afina # 1 Magirus # 2 # 4 # 2 Diode # 2 # 1 Albora # 2 Gti #3 # 3 Azlan # 4 Ingram # 3 Checkpoint Nokia Radware SourceFire Arkoon Checkpoint + Nokia Itway France #3 #1 #2 #1 #1 #3 Westcon Security (Noxs) #1 #2 #1 Computerlinks #2 #3 #2 Afina #2 Magirus #1
Who we are: SBU Enterprise Consultancy and production of solutions and software for e-business: creation of internet portals to manage activities b2b, CRM, Call Center e Wireless Application, Datawarehouse; Supply of outsourcing services, knowledge management and EDI. Solutions with Sun, HP and IBM products; Sale and integration of products and services to centralize applications; Sale and integration of products and services of logic security of information systems; Services of design, realization and maintenance of solutions based upon Internet, Intranet and Extranet; Security and served based computing consultancy.
Who we are: Events and acknowledge May 2002: Itway Group guaranteed Nato-Russia summit from hacker attacks; December 2002: Itway included in best 40 European companies ranking for growing rate; October 2003: Itway Group provided IT security for meeting of European leaders in Rome; April 2004: Itway S.p.A. shares are admitted in TechStar segment of Italian Stock Exchange; October 2004: Itway Group provided IT security for meeting of signature of European Consitution in Rome; October 2004: Itway included in the best 100 European companies ranking for growth rate; October 2005: Itway included in the best 500 (221 ) European companies ranking for growth rate.
Who are you: Events and acknowledge May 2006: the Itway Group has been in-charge from Italian Ministry of the Interior for personal identification system in Libya; February 2008: the Itway Group has been nominee to realize the Arma dei Carabinieri security system in all local offices (about 3,000 locations all around Italy); May 2008: the Itway Group has been nominee by an important National Financial Istitution for a 3 years security project.
Thank you for attention Andrea De Marchi Vice General Manager & CFO Itway Group