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Esprinet Group Corporate Presentation
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Disclaimer
Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which
are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future
events and are subject to a number of uncertainties and other factors, many of which are outside the control of Esprinet S.p.A. (the “Company”). There are a variety of
factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such
forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in
this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution
may form the basis of, or be relied on or in connection with, any contract or investment decision
The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable
legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to
such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as
amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or
solicitation would be unlawful (the “Other Countries”), and there will be no public offer of any such securities in the United States. This Presentation does not
constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries
Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Giuseppe Falcone, in his capacity as manager responsible for
the preparation of the Company’s financial reports declares that the accounting information contained in this Presentation reflects the Esprinet’s documented results,
financial accounts and accounting records.
Neither the Company nor any member of the UniCredit Group nor any of its or their respective representatives, directors or employees accept any liability whatsoever
in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it
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Agenda
Corporate overview
Industry and market scenario
Historical financial performance
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Corporate Overview
Technology wholesale distributor in Italy and Spain: we buy
from technology vendors and we sell to resellers
Sales € 1.9 billion sales, EBIT € 36.6 million in 2012
By far #1 in Italy, top three in Spain(1), ~40,000 customers, 200 suppliers
#5 largest European distributor, in the worldwide ‘Top Ten’(2)
Listed on the Italian Stock Exchange since 2001 (PRT)
Competitive advantage
through a unique internet
based business model
(esprinet.com) driving a
better both customer
and product mix
(1) Net of goodwill write-downs arising from impairment test (amounting to € 19.8 million). Country, Product and customer mix as of FY 2011
(2) Sirmi 2012, Computing 2011 (considering Vinzeo Informatica) (3) Canalys 2011, Factset, Raymond James
Spain 25%
Italy 75%
Customer Mix Product Mix (%)
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Group Structure
Esprinet SpA
100% 100% 100%
IT & CE e-tailer
in Italy and France Esprinet Iberica: IT & CE
distributor in Spain and
Portugal
electrocomponents
distributor in Italy
Esprinet SpA: IT & CE distributor in Italy
Value-Added
Distributor
100%
Dealers’ consortium
cloud service provider
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36% of shares locked-up until April 2015
Mr Monti (Chairman), Rota (Deputy Chairman) and Calì are the founders of the three distributors merged to create Esprinet
Mr Cattani, CEO, entered the shareholder agreement in 2006 contributing shares out from former stock options plan.
Shareholder breakdown
Source: Consob website, management estimates’ as of January 2013
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Geographical coverage
Esprinet Italy Nova Milanese (Milan area)
Esprinet Iberica Zaragoza (Spain)
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8 Products & Vendors
Co
nsu
mer
d
evic
es
White goods
Phones & GPS
Games
Audio products
Photo products
Video products
IT for home use
Off
ice
devic
es
PC
Peripherals & Office
products
Software
Supplies & stationary
products
Infr
ast
ructu
re d
evic
es
Storage
Networking devices
Servers
Cabling
Data capture
Security
Deve
lopm
ent
in t
ime
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Corporate Resellers: V-Valley, value-added distribution
Dealers, Value Added Resellers, System Integrator, Software House search for:
Competence
Flexibility
Sales support
V-Valley ensures a value proposal to both customers and vendors which address the
business of ‘value-added solutions’, embedded in specific hardware and software
product range like server, storage, networking and security, voip and unified
communication, middleware, RFID.auto-ID, Video-Surveillance.
Among the key vendors of V-Valley, customers can find: APC, EMC, HP, IBM,
SYMANTEC VMWARE
Furthermore, to complete the value proposal, V-Valley offers a selected list of
services for resellers.
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Corporate dealers - Assocloud
Data Center
Storage, Network and Computer Hardware
VMWare Vsphere 5
System and security management
PAAS
IAA
S
SAAS Services
RE
SE
LL
ER
Connectivity
End Users
Tecnology
SU
PP
LIE
RS
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Smb customers - Esprinet’s Cash&Carry: esprivillage
To ensure proximity to the small dealers, the Italian business has been
historically supported by cash & carry shops (from 1,400 to 500 sm)
branded ‘esprivillage’.
At the end of 2012, Esprinet has been managing 16 cash & carry,
strategically active throughout the nation:
North:
Milan area (Cinisello Balsamo)
Bergamo
Brescia
Turin
Pordenone
Verona
Padova
Center:
Rome (2)
Pescara
South & Islands
Bari
Neaples
Catania (Sicily)
Cagliari
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Retailers’ (1) need to maximize profitability while reducing inventory days are addressed by Esprinet through Ok Retail
services, an internet platform deployed by an internal team specialized in:
Category management
Merchandising
Sales Data analysis
Administrative tools
Anti-thieft services
Services for retailers: ok retail
(1) Retailers named here are pure example aimed at clarifying the prospect segment
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Agenda
Corporate overview
Industry and market scenario
Historical financial performance
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14 Esprinet position in the IT Supply Chain
Hardware & Software Vendors
IT & Consumer Electronics
Wholesale Distributors
Consumer Oriented Resellers
(Retailers – Computer Shop)
Business Oriented Resellers
(Dealer/VAR/Integrators)
Individuals Small Medium Businesses Govt. / Large Corporations
1st TIER
2nd TIER D
I
R
E
C
T
C
H
A
N
N
E
L
1st TIER
• Direct Channel: from vendors to large corporations/government (15-25% of total addressable market(1))
• 1st tier: from vendors to big resellers (25-35% of total addressable market)
• 2nd tier: from distributors to resellers (~50% of total addressable market)
(1) Company elaboration on Context-GTDC, Sirmi, LEK data referred to the European market. Addressable market: IT hardware and packaged software (no services) (2) Raymond James estimates, December 2011 (3) Sirmi 2010 as per Italy, company elaboration on 2009 Computing data (aggregated sales) as per Spain
€ 71 billion in Europe(2)
€ 5-6 b in Italy(1)
€ 2-3 b in Spain(3)
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Clustering customers
Resellers
Dealers
System
integrators
Computer
shops
Business
oriented
Consumer
oriented
VARs
Classification Definition
Supply most of the IT infrastructure needs of mainly the SMB end-users as well
as, for the largest dealers, large accounts and public sector
Hardware/software sales, integration, support and related services to end users
typically make up 100% of their turnover
Companies that normally conduct a core consulting activity that will assess the
broad needs of a corporate client, and implement hardware and software,
including support and maintenance
Revenues are normally 95% from services and 5% from resell
Develop, customise or resell software applications combined with hardware
and related services to form a complete solution
At least 50% of revenues comes from complete solutions
Retailers Include retailers of computer/IT products as well as specialist retail
distributors and merchandisers
Sale of IT goods, from a fixed location and/or from an on-line portal, in small
lots for direct consumption by the purchaser
Others Other categories not included in the previous ones (e.g. mail order)
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Market Challenges
Macroeconomic
environment
Suppliers
Italy and Spain under pressure
Consumer confidence deteriorating
Credit crunch
Hp and Acer changing strategy
Apple aggressively addressing the channel
Archi-rival Microsoft still not ready to offer a real alternative vs iOS
Tablets and Smartphone counterbalancing IT spending decrease
Competitors
Short-term pricing pressure issues due to ‘dead-man walking’ competitors
Customers
Traditional selling rules to be re-defined in terms of sell-out efficiency to support
intrinsically higher SG&A compared to e-tailers
Traditional retailers fighting for market share
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European Wholesale Distribution
European wholesale distribution growing +3.4% in 2012 vs 2011
Source: Context – Global Tech Distribution Council, April 2013
9.2%
2.7%
7.2%
1.5%
14.2%
3.6%
2.5%
8.4%
3.8%
-3.5%
3.9%
7.6%
3.5%
6.1%
0.3% 1.0%
2.5%
9.0% 8.6%
0.2%
-3.2%
12.8%
4.1%
-1.5%
11.9%
-2.3% -2.1%
Jan-1
1
feb-1
1
mar
-11
apr-
11
May
-11
Jun-1
1
Jul-11
Aug-
11
Sep-1
1
Oct
-11
nov-
11
Dec-
11
Jan-1
2
feb-1
2
mar
-12
apr-
12
mag
-12
giu-1
2
lug-
12
ago-1
2
set-
12
ott
-12
nov-
12
dic
-12
gen-1
3
feb-1
3
mar
-13
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Italian Distributors’ ranking
Source: Sirmi 2013
market share
2010 2011 2012 2010 2011 2012
1 ESPRINET GRUPPO 1.643 1.576 1.503 23,6% 23,5% 24,2%
2 COMPUTER GROSS ITALIA 667 715 721 9,6% 10,7% 11,6%
3 INGRAM MICRO 653 628 585 9,4% 9,4% 9,4%
4 TECH DATA 597 616 620 8,6% 9,2% 10,0%
5 DATAMATIC GRUPPO 381 369 345 5,5% 5,5% 5,6%
6 CDC 344 309 95 4,9% 4,6% 1,5%
7 ATTIVA 172 206 218 2,5% 3,1% 3,5%
8 BREVI 164 147 143 2,4% 2,2% 2,3%
9 IL TRIANGOLO 59 69 73 0,8% 1,0% 1,2%
10 ITWAY GRUPPO 71 68 65 1,0% 1,0% 1,1%
11 LEADER 70 68 45 1,0% 1,0% 0,7%
12 EXECUTIVE 67 64 62 1,0% 0,9% 1,0%
13 EDSLAN 50 54 58 0,7% 0,8% 0,9%
14 COMETA 50 50 50 0,7% 0,7% 0,8%
15 SNT TECHNOLOGIES 54 49 44 0,8% 0,7% 0,7%
16 SIDIN 40 48 50 0,6% 0,7% 0,8%
17 ICOS 53 47 45 0,8% 0,7% 0,7%
18 COMPUTERLINKS ITALIA 40 46 53 0,6% 0,7% 0,8%
19 MAGIRUS 43 45 48 0,6% 0,7% 0,8%
20 BRAIN TECHNOLOGY 75 33 32 1,1% 0,5% 0,5%
Total top 20 5.292 5.209 4.854 76,1% 77,6% 78,3%
Total aggregated market 6.954 6.716 6.198 100,0% 100,0% 100,0%
Var % top 20 -4.8% -1,6% -6,8%
euro million
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Agenda
Corporate overview
Industry and market scenario
Historical financial performance
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256 420
549 710 801
954
1.315 1.509 1.572 1.654
1.805 1.781 1.609 1.643 1.576
569
829 626 592
510 563
520
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Italy Spain
Established in ‘70s under the name Comprel, semiconductor distributor in
Italy
Mid ’80s: start of Celo and Micromax business, Italian IT distributors
2000: merger of Celo, Micromax and Comprel, under the brand-new Esprinet (Italian 2nd
largest distributor)
July 2001: Esprinet listed on the Italian Stock Exchange (ipo price: € 1.4 per
share)
2002: two acquisitions in Italy (Pisani, Assotrade, € ~300m revenue)
2003: Esprinet to reach the #1 position in the Italian market
December 2005: acquisition of Memory Set (€ 525m in 2004), 2nd largest IT
distributor in Spain
November 2006: acquisition of Actebis in Italy (€ ~130m)
November 2006: acquisition of UMD in Spain (€ 266m in 2005) to create
Esprinet Iberica
Mid of 2008: restructuring program of Spanish operations
End of 2009: Spanish turnaround completed
Historical financial performance
(1) 1997-2003 sales are non-IFRS compliant (2) 2005 and 2006 Spanish sales are pro-forma (Memory Set was acquired in December 2005, UMD in late 2006)
(2) (1)
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Revenue trend slighltly better than
industry’s one, even thanks to Italian
business (-7% y-o-y) which performed
better than competitors, gaining market
share
Esprinet Iberica’s sales trend (-11%) were
in line with local competitors
EBIT %: Italy to 2.11% from 2.33%;
Esprinet Iberica: 1.23%
2012 Key Financials
(euro/000) 2012 % 2011 % Var. Var. %
Sales 1,931,900 100.00% 2,096,480 100.00% (164,580) -8%
Cost of sales (1,800,224) -93.18% (1,958,721) -93.43% 158,497 -8%
Gross profit 131,676 6.82% 137,759 6.57% (6,083) -4%
Sales and marketing costs (35,348) -1.83% (33,679) -1.61% (1,669) 5%
Overheads and administrative costs (59,764) -3.09% (60,622) -2.89% 858 -1%
Adjusted Operating income (Ebit) 36,564 1.89% 43,458 2.07% (6,894) -16%
Goodw ill impairment - - (19,826) -0.95% 19,826 -100%
Operating income (Ebit) 36,564 1.89% 23,632 1.13% 12,932 55%
Finance costs - net (3,289) -0.17% (5,326) -0.25% 2,037 -38%
Profit before income taxes 33,275 1.72% 18,306 0.87% 14,969 82%
Income tax expenses (9,937) -0.51% (10,339) -0.49% 402 -4%
Net income 23,338 1.21% 7,967 0.38% 15,371 193%
Earnings per share - basic (euro) 0.46 0.16 0.30 188%
(euro/000) 31/12/12 % 31/12/11 % Var. Var. %
Fixed assets 97,237 54.39% 95,047 53.70% 2,190 2%
Operating net w orking capital 102,939 57.58% 110,460 62.41% (7,521) -7%
Other current assets/liabilities (9,697) -5.42% (15,567) -8.79% 5,870 -38%
Other non-current assets/liabilities (11,704) -6.55% (12,939) -7.31% 1,235 -10%
Total assets 178,775 100% 177,001 100% 1,774 1%
Short-term financial liabilities 39,800 22.26% 48,896 27.62% (9,096) -19%
Current f inancial (assets)/liabilities for derivatives 848 0.47% 952 0.54% (104) -11%
Financial receivables from factoring companies (2,940) -1.64% (13,804) -7.80% 10,864 -79%
Cash and cash equivalents (111,099) -62.14% (115,921) -65.49% 4,822 -4%
Net current f inancial debt (73,391) -41.05% (79,877) -45.13% 6,486 -8%
Borrow ings 12,110 6.77% 36,239 20.47% (24,129) -67%
Non-current f inancial (assets)/liab. for derivatives 181 0.10% 920 0.52% (739) -80%0%
Net f inancial debt (A) (61,100) -34.18% (42,718) -24.13% (18,382) 43%
Net equity (B) 239,875 134.18% 219,719 124.13% 20,156 9%
Total sources of funds (C=A+B) 178,775 100% 177,001 100% 1,774 1%
Net working capital equal to 5% on sales
(Italy 5%, Iberica 8%)
Net financial position: Italy cash positive by
€ 81.7 million; Iberica negative by € 20.6
million)
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In Italy
Cambiago warehouse: 25,000 sm, shipment of unpacked goods
Cavenago warehouse: 31,000 sm, shipment of goods in a box
In Spain
Zaragoza warehouse: 22,000 sm
FY 2012 Italy Spain
Warehouse 56,000 sm 22,000 sm
N° of doors loading/unloading Cambiago-Cavenago 13/13 – 22/20 21
N° of picking lines collected daily (average) 18,300 4,955
N° of units collected yearly 18,495,000 6,730,483
N° of units collected daily 73,100 26,922
N° of units in the warehouses 2,512,100 530,500
N° of items in the warehouses 30,100 10,500
N° of daily deliveries 4,050 1.500
N° of arriving trucks (average) 40 14
N° of departing trucks (average) 40 13
% picking lines errors 0.02 % 0.05%
Logistics’ metrics
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Web metrics
Italy Iberica
2012 2011 Var. 2012 2011 Var.
WEBSITE ACCESS 7,093,555 7,460.790 -4.92% 1,668,448 1,673,859 0.08%
NUMBER OF CUSTOMERS WITH AT LEAST 1 ACCESS 38,831 37,998 2.19% 16,434 15,693 5.14%
NUMBER OF CUSTOMERS WITH ACCESS AND ORDERED > 0 28,098 26,195 7.26% 10,830 10,860 0.12%
NUMBER OF CUSTOMERS WITH ACCESS AND ORDERED = 0 10,733 11,803 -9.07% 5.604 4.833 16.42%
CUSTOMERS WITH ACCESS AND ORDERED > 0
/ CUSTOMERS WITH AT LEAST 1 ACCESS 72.36% 68.94% 3.42% 65.90% 69.20% -3.30%
NUMBER OF USERS WITH AT LEAST 1 ACCESS 50,095 49,905 0.38% 19,535 18,989 3.29%
% WEB VOLUME ORDERS 79% 77% 2.00% 69% 74% -5.00%
% WEB VALUE ORDERS 61.03% 58.01% 3.02% 41% 34% +7.00%
INVOICED CUSTOMERS 28,680 28,985 -1.05% 11,076 10,666 4.26%
NUMBER OF CUSTOMERS WITH AT LEAST 1 WEB ORDER 27,348 26,195 4.40% 9,591 9,536 0.98%
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Contacts
Esprinet Spa
via Energy Park 20 – Edificio 4
20871 – Vimercate (MB) Italy
www.esprinet.com
IR Contacts
Michele Bertacco
IR Director +39 02 40496.1
investor.esprinet.com
