Group strategy and forecasts 2005/06

Transcription

1 Group strategy and forecasts 2005/06 G.Andrea Farina President & CEO Itway Group London, September 2005 Agenda Itway Group Strategy Financials Annexes 1

2 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 knowledge and most advanced available instruments; To build an integrated offer together with our partners on every bid. The Group VAD SBU ENTERPRISE SBU SBU 80 % 100% 100 % 100 % 100 % 2

3 Itway Group Financials Strategy Annexes 3

4 Strategy: Results Achieved Continuous growth in Turnover (+9,1%), against a decrease in Italian IT market (-0,7%)*; Strengthening in consulting and services market and continuous increase in the Group turnover share, against a decrease in reference market; Admission to All Stars, the new high segment which substituted Nuovo Mercato of Italian Stock Exchange: Guarantee of economic and financial standards arising from a prudent management of finance focused on creating value in the long term; Guarantee of fairness and fair communication, which assures a high standard of market visibility. Acquisition of Spanish ADD Servicios Informaticos Sl, French going concern of Softway Sas and Greek Interaxon S.A.: VAD Leaders respectively in Iberian, French and Greek IT markets. * Source: Sirmi S.p.A. 07/2004 Strategy: Strategic Agreements AGREEMENTS May 2003 Agreement with HP for developing and offering solutions to SME; June 2003 Master Distributor Red Hat in Italy and Spain; July 2003 Agreement with IBM Italia for developing and offering solutions to SME; September 2003 Business-e supports Oracle in realization of Oracle Collaboration Suite based contracts; February 2004 Agreement with Wavelink, Ekahau e Airespace to distribute last generation WiFi solutions; June 2004 Acquisition of 100% of ADD Distribuciones Informaticas; December 2004 distribution agreement with Oracle for Portugal; January 2005 distribution agreement with Symantec for Iberian peninsula; May 2005 Acquisition of distribution activity of Softway Group July 2005 Acquisition of 100% of Tinetis Srl September 2005 Acquisition of 100% of Interaxon S.A. 4

5 Strategy: Events EVENTS 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 Nuovo Mercato of Italian Stock Exchange; October 2004 Itway Group provided IT security for meeting of signature of European Constitution in Rome; October 2004: Itway included in best 100 European companies ranking for growth rate*; October 2005: Itway included in best 300 European companies ranking for growth rate*. *(Business Week ranking of hot growth companies) Strategy: Short term goals Short term 2005/06 Start up of branches in Switzerland, East Europe and Balkan Area; Further acquisitions in distribution; +20 / 30% in turnover; Profitability increase from: Strong internal rationalization and integration actions; Increase in value added products and services. Continuity in dividend distribution. 5

6 Strategy: Short term goals Increase in turnover*per employee Thousands of Euro Strategy: Short term goals 100% E-commerce (On-board) as efficiency engine 50% 46% 68% 72% 63% 82% 85% % Turnover Turnover On board board % Orders Orders from from On board board Clients managed by On board 6

7 Strategy: Short term goals Productivity and performance: Average time in order processing* days Strategy: Medium and long term goals To maintain the high growth rate of last year; To consolidate the distribution and e-business solution design market; To be a leading player in Mediterranean Area. Internal and external growth (self-financed). EBITDA>10% Improvement in net working capital management Trend to quick in-flows from clients; High turnover of inventory. Continuity in dividend distribution. 7

8 Strategy: Strategy for VAD SBU To consolidate the market leadership in current offering: Security management; Safeway RDBMS; Central Access Management; Internetworking; Other solutions. To enlarge offering to SME and SOHO; To improve organizational efficiency and effectiveness in internal processes: TEBE Project, management control system, based upon Balanced Scorecard methodology; To enlarge customer base; To Define a new catalogue of courses to enlarge the Itway Academy offering. Strategy: Strategy for SBU Enterprise 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; Improvement in: Operating efficiency (TEBE project: management control system, based upon Balanced Scorecard methodology; 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. 8

9 Itway Group Strategy Financials Annexes Financials: Preliminary statement * In 2004, the Itway Group changed its closing date of fiscal year, from December 31 to September 30. Therefore, in the following slides, we will comment the first 9-month periods of each fiscal year of the three-year period In addition, all presented financial data are consistently prepared adopting Italian GAAP, since adoption of IAS for our Group has been deferred to fiscal year by Italian Law. 9

10 Financials:Consolidated Profit & Loss * SALES EBITDA +9,07% -16,1% EBIT ,7% EBT , 6% *9 months Amounts in thousands of Euro Financials: Profit & Loss SBU VAD * SALES EBITDA +6,9% -26,9% EBIT -47,8% EBT -60,5% *9 months Amounts in thousands of Euro 10

11 Financials: Profit & Loss SBU Enterprise * SALES EBITDA +21,1% +11,2% EBIT ,4% EBT ,3% *9 months Amounts in thousands of Euro Financials: Consolidated Balance Sheet * Non current assets Net Working Capital Total invested capital Net Worth Long Term Loan Net Financial Position Turnover As of the 9th month of fiscal year. Amounts in thousands of Euro 65 Days Net Working Capital Outstanding

12 Itway Group Strategy Financials Annexes Whoweare IT Market Analysis HW SW SERVICES Total IT Market E 2006E 2007E CAGR% ( ) ,5% 6,6% -10,5% -4,8% 1,0% 0,4% 2,0% 2,5% ,8 % 8,6% -0,1% -3,7% -1,7% 0,2% 1,8% 2,8% ,9 % 10,8% 1,2% -3,7% -2,7% -1,5% -0,3% 0,9% ,2 % 8,1% -3,5% -4,1% -1,3% -0,5% 0,9% 1,8% mln; Source: Sirmi estimets July

13 Who we are: Market Segmentation SBU VAD SBU Security E 2006E 2007E CAGR% ( ) 1.258, , ,45% 16,9% -2,1% 5,0% 11,2% 8% 7,4% 7,2% 405,9 510, ,00% 40,9% 25,6% 50,2% 10,9% 10,8% 10,7% 10,7% of which: SBU Security (Services) SBU E-business 258, ,62% 38,9% 22,8% 22,7% 20,3% 20,1% 19,2% 14,9% 908,5 933, , , , ,5 15,30% 36,3% 2,8% 9,6% 12,1% 14,7% 16,2% 18,2% mln; Source: Sirmi estimets July 2004 Itway Group s SBU always had higher growth rates than the Market Who we are: The integrated approach of the Group RDBMS - BI RDBMS - BI e-commerce infrastructure e-commerce infrastructure Security Security Il Client Cliente E-Business E-Business Solution Solution Solution Appliance Solution Internet Appliance working Internet working SBC SBC 13

14 Whoweare: 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 junction ring 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: SBU Enterprise Consultancy and production of solutions and software for e-business: Creation of internet portals to manage activities b2b, CRM, Call Center and 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 e Extranet Security e served based computing consultancy 14

15 Safeway: What it is > Safeway is a managed security service (firewall e antivirus), designed and developed by Itway, to guarantee privacy and security of information for SMEs and consultancy firms. > Safeway s service is based on security know how earned in Itway group through management of mission critical projects at international level and it is based upon technologies of the undisputed market leaders. Safeway: The market > Safeway is addressing a potential market of about going concerns (SOHO) ( Italy, France) of which about (Italy) are consultancy firms (Notaries, Accountants, Lawyers, etc.). 15

16 Safeway: Why > Today, real security requires a service managed 24 hours a day and no more or not only installation of security products: the damage that a Virus can do is not predictable during the day and therefore a control and continuous updating are required. > A managed service requires economic of scale, and top-quality structures and expertise, which are not found in the traditional channel of IT product re-sellers: Itway group launched Safeway thanks to its dimension and the know-how in the Enterprise market > For a company or a professional firm, adopting Safeway means to protect itself from all the risks (also criminal) that the recent regulation on privacy introduced. This is possible without changing neither the company s PC network nor its software applications THANK YOU FOR ATTENTION G.Andrea Farina President & CEO Itway Group 16