Investing in Esprinet
Historical stable flow of profitability, diversification, highly efficient logistics processes and systems and very strong balance sheet: a leading and cutting edge company in an increasingly strategic industry.
ICT MARKET TREND
Resilient and increasingly strategic industry in the entire IT value chain, with 40.6 B€ of addressable market. Strong opportunity from new tech and White Goods.
Size of addressable end user market
In 2020 the addressable end user market is estimated at 29.2 B€. Including the strong White Goods opportunity, the addressable end user market is estimated to reach in 2020 40.1 B€.
EITO figures for IT Clients - Advanced Solutions & Smartphones - Euromonitor for other Consumer Electronics
End-user consumption converted to distri price assuming average 15% margin for resellers/retailers
Conversion from Context panel sales to Total distri sales assuming Context Panel represents around 90% of total consolidated distri sales with differences for product categories
Adjustment applied to Context panel gross sales of 6.5% (from gross revenue to net revenue)
2021 end user market estimates by EITO & Euromonitor as of November 2020
2021 distri sales estimated using a flat growth of 5%
Weight of distris on addressed market
Distributors, enablers of tech pervasiveness, are assuming an increasingly central role in the entire ICT value chain. Tech wholesaling, increasing efficiency, is the fastest growing go-to-market strategy of tech manufacturers.
This is underlined by share of distributors trend, which goes from 45% in 2017 to over 60% in 2021E.
EITO figures for IT Clients - Advanced Solutions & Smartphones - Euromonitor for other Consumer Electronics
End-user consumption converted to distri price assuming average 15% margin for resellers/retailers
Conversion from Context panel sales to Total distri sales assuming Context Panel represents around 90% of total consolidated distri sales with differences for product categories
Adjustment applied to Context panel gross sales of 6.5% (from gross revenue to net revenue)
2021 end user market estimates by EITO & Euromonitor as of November 2020
2021 distri sales estimated using a flat growth of 5%
STRATEGY
• Aim at being the best distributor in the region for all stakeholders
• Riding the mid-term evolution of the market
Aim at being the best distributor in the region for all stakeholders by:
Riding the mid-term evolution of the market by:
A leading and cutting edge company in a growing and fast evolving market. Low risk levels characterize both the Group and the Industry.
The right industry
GROWTH POTENTIAL
- Tech sector is booming thanks to constant innovation (IoT, Big data, Analytics, Cybersecurity) and changes in lifestyle and professional habits (smart working, e-learning, e-commerce, …)
- Tech wholesaling is the fastest growing go-to-market strategy of tech manufacturers that look to increase efficiency
- Growing demand of logistic services driven by retailer e-commerce
ATTRACTIVE RISK PROFILE
- Resilient industry thanks to the strategic role of distribution in the IT value chain
- The industry has developed in time a standard of risk-shielding techniques for key assets (credit insurance and stock protection) that provide low-risk balance sheets
- High levels of automation of processes provide low cost operating models shielding the P&L from the impact of sudden swings in revenues
The right company
GROWTH POTENTIAL
- Undisputed market leader (26,6% market share in 2020) with a track record of acquisition in a fast consolidating market
- Leverage on strong foundation in the distribution businesses to provide high-margin services and solutions (advanced solutions and subscription/usage services)
- Opportunity of growing ROCE by furtherly optimizing the trade-off between working capital and gross profit
ATTRACTIVE RISK PROFILE
- Historical stable flow of profitability since 2001 even in market downturns: 472 M€ of cumulated Net Profit since 2001 and 135 M€ of cumulated dividends paid.
- Diversification: 3 geographies (Italy, Spain and Portugal), complete Tech product range (IT clients, IT infrastructure, Consumer Electronics, Cloud and tech services), all possible customers (Resellers, VARs, System Integrators, Retailers, E-tailers)
- Highly efficient logistics processes and systems, scalable with low cost sensitivity to volume upgrades; very strong balance sheet thanks to focus on Cash Conversion Cycle and ROCE
The right industry
The right industry
GROWTH POTENTIAL
- Tech sector is booming thanks to constant innovation (IoT, Big data, Analytics, Cybersecurity) and changes in lifestyle and professional habits (smart working, e-learning, e-commerce, …)
- Growing demand of logistic services driven by retailer e-commerce
- Undisputed market leader (26,6% market share in 2020) with a track record of acquisition in a fast consolidating market
- Leverage on strong foundation in the distribution businesses to provide high-margin services and solutions (advanced solutions and subscription/usage services)
- Opportunity of growing ROCE by furtherly optimizing the trade-off between working capital and gross profit
ATTRACTIVE RISK PROFILE
- Resilient industry thanks to the strategic role of distribution in the IT value chain
- The industry has developed in time a standard of risk-shielding techniques for key assets (credit insurance and stock protection) that provide low-risk balance sheets
- High levels of automation of processes provide low cost operating models shielding the P&L from the impact of sudden swings in revenues
- Historical stable flow of profitability since 2001 even in market downturns: 472 M€ of cumulated Net Profit since 2001 and 135 M€ of cumulated dividends paid.
- Diversification: 3 geographies (Italy, Spain and Portugal), complete Tech product range (IT clients, IT infrastructure, Consumer Electronics, Cloud and tech services), all possible customers (Resellers, VARs, System Integrators, Retailers, E-tailers)
- Highly efficient logistics processes and systems, scalable with low cost sensitivity to volume upgrades; very strong balance sheet thanks to focus on Cash Conversion Cycle and ROCE