Stop parsing PDFs. Get the API. Request Access

AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Servizi Italia

Investor Presentation • Oct 22, 2018

4419_rns_2018-10-22_b67e9692-510b-4ac2-a750-a82555927d49.pdf

Investor Presentation

Open in Viewer

Opens in native device viewer

www-si-servizitalia.com

STARCONFERENCE 2018London, 23 October

BUSINESS OVERVIEW

Washing and rental of flat linen (sheets, sleepers, blankets), uniforms (scrubs, uniforms, gowns, etc. for staff), mattresses and pillows.

TEXTILESTERILIZATION

Sterilization of cotton fabrics andReusable Technical Fabric for beds and surgical gowns.

Procedural kits and surgical drapes.

Accessory parts made of disposable material.

SURGICAL INSTRUMENTSSTERILIZATION

Collection, conditioning, maintenance and sterilization of surgical instruments andkits.

CSSD Design, Installation, Renovation and Management.

Validation and control of sterilization processes.

2

GROUP EVOLUTION

THE EARLY DAYS1986 – 2002

  • • 1986: Foundation of Servizi Italia, active in laundry sector.
  • • 2002: Coopservice acquires 100% of SI share capital. Transformation into a multiservice company.

NEW PROSPECTS 2006 – 2007

  • • Start of sterilizationactivities.
  • • 2007: IPO at Milan Stock Exchange. Presentation to the international financial community.

GROWTH IN ITALY 2008 – 2011

  • • Acquisitions in Italy in laundry industry.
  • • Development of sterilization business.
  • • Achievement of STAR qualification by Borsa Italiana.

•

INTERNATIONAL DEVELOPMENT2012 – 2015

  • • 2012: Acquisition of the first laundry in Brazil (additional transactions in 2013 and 2015).
  • 2014: Start of sterilization business in Turkey.
  • • 2014: Start of greenfield laundrybusiness in India.
  • • 2015: Achievement of a sterilizationtender in Albania.
  • • 2015: Expansion in Turkey in laundry industry, through the acquisition of Ankateks.

CONSOLIDATION AND DIVERSIFICATION2016– 2018

•

  • • Consolidation of the existing markets: Acquisitions in laundry industry in Italy (2016) and in Albania (2018). Expansion plans in Brazil.
  • • Diversification in newbusiness lines: Acquisition of Steritek (2017) and start of non-healthcare laundry business (Bolognini branch acquisition on 2018).
  • New Markets: Start of sterilization activity in Morocco (2017) and Joint Venture in Asia (constitution of idsMED Servizi Plus in 2018). 4

MIXPRODUCT/SERVICE

Social sustainability. BUSINESS OVERVIEW Multi-service approach by offering a mix of customized services.

High barriers on entry due to know-how and investments needed.

Costs optimization. POSITIONED FOR CREATING VALUE Commercial synergies. High retention rate of contracts. Focus on high value-added services.

Rationalization of healthcare costs. MEET CUSTOMER NEEDS High control of Healthcare costs. Financial benefits for hospitals.

LONG TERMCONTRACTS

4-year average contracts volume based OR monthly fixed fee

6-year average contractsvolume based OR monthly fixed fee

BUSINESS GROWTH STRATEGY

ITALIAN MARKET

www.si-servizitalia.com

  • • Italian Wash-hire Healthcare market turnover: Euro 765 mln.
  • • Highest International qualitystandards.
  • • SI's customers are the main Public hospitals and Healthcare Institutions.
  • • Outsourcing rate is high in laundry market but still low in sterilization area.

L E A D E R S H I P C O N S O L I D A T I O N .

  • S E R V I C E A N D I N D U S T R Y D I V E R S I F I C A T I O N .
  • S U S T A I N A B L E G R O W T H .
    • C O S T S A N D C A P E X O P T I M I Z A T I O N .

M A R G I N S I N C R E A S E .

BRAZILIAN MARKET

  • • Wash-hire potential market is estimated in Reais 840 mln.
  • • Over 700,000Kg/day of potential linen only in Sao Paulo.
  • • ~1,000healthcare facilities totaling over 92,500 beds.
  • • New potential outsourcing: only 45% of wash-hire is currently outsourced and no sterilization service provider is present.
  • Primary player: 1st player in Sao Paulo, 2nd in Brazil.
  • Recognized in the market as high quality provider.
  • Well positioned in both Private and Public areas.
  • Leader in identifying new solutions for the clients.
  • Deep market knowledge of local team and partner.
  • Rental model improved successfully.

Market overview

TURKISH MARKET

*2017 Consolidated Revenues (6 months of only laundry business).

  • • Construction of new PPP hospitals, increasing the nr of beds up to about 250,000 over the next few years.
  • • ~1,400healthcare facilities totaling over 195,000 beds.
  • • Low outsourcing rate in both laundry and sterilization businesses.
  • Main player of both laundry (Ankateks) and sterilization (SAS) market.
  • Recognized by the market as high quality provider.
  • Achieved multiple high-complexity PPP contracts, requiring International standards and with long termduration.
  • Good margins and volumes market.

INDIAN MARKET

Market

  • • The Indian market has recently started to outsource wash- hire activities.
  • • About 90,000 beds only in Delhi NCR, totaling about kg 200,000,000 of linen.
  • • Over 195,000healthcare facilities throughout India.
  • • Lowoutsourcing rate.
  • Business developed greenfield and first volumes started in Oct-2015.
  • Main player in Healthcare laundry business in India.
  • Technologically advanced laundry plant (near Delhi).
  • Recognized by the market as high quality provider.
  • Volumes steadily increasing.

  • High capacity plant (45 tons/day vs 26 tons/day currently under use).

  • F U L L Y U S E E X I S T I N G P L A N T C A P A C I T Y . I N C R E A S E L O C A L Q U A L I T Y S T A N D A R D S A N D A V E R A G E P R I C E S .

  • C O N T R A C T S W I T H F L A G S H I P H O S P I T A L S .
    • D E V E L O P M E N T I N N E W A R E A S .

ALBANIAN MARKET

*~7.1 mln Euro. 100% of 2017 SaniService revenues (not consolidated in SI consolidated revenues).

  • • Total value of contract awarded include all public and private hospitals of Albania.
  • •More than 80,000 surgical intervention/year.
  • Servizi Wash-hire market is expected to have interesting growthprospects in terms of both revenues and profitability.
  • Unique player in Healthcare sterilization business.
  • Recognized by the market as high quality provider.
  • Good margins and volumes market.
  • Laundry market still fragmented: target is to consolidate it starting from 2019.

C O M P L E T E T H E D E V E L O P M E N T O F S T E R I L I Z A T I O N A C T I V I T I E S .

  • B E C O M E T H E L A U N D R Y M A R K E T L E A D E R .
  • I M P R O V E M E N T O F T H E S T A N D A R D S .

MOROCCAN MARKET

  • • Market with more than 315,000 surgical intervention/year.
  • • Around 3,000 healthcare facilities totaling over 21,000 beds
  • • Primary Healthcare destinationin Africa.
  • • Sterilizationindustry still almost fully insourced.
  • First and unique operator in offering sterilization services and CSSDmanagement in the Country.
  • Constitution of Centre Marocain de Sterilisation.
  • Direct financial and quality benefits for the local Healthcare.
  • Cooperation with local universities for starting sterilization courses.

C O N S O L I D A T I O N O F T H E M A R K E T . N E W A R E A S A N D P U B L I C H O S P I T A L S .

Market overview

S E R V I C E S . S E R V I C E D I V E R S I F I C A T I O N . G o a l s

S U P P L Y O F S T E R I L I Z A T I O N - R E L A T E D

SOUTHEAST ASIAN MARKET

  • Access to over 10,000 healthcare institutions throughout the Asian-Pacific area.
  • • No mainplayers in Laundry business.
  • • Sterilizationservices fully insourced.
  • Established IdsMED ServiziPlus in Singapore, which will operate for identifying and developing newbusiness opportunities in the sterilization andwash-hireservices.
  • Joint venture targets firstly Asian -Pacific area andsecondly whole Asian market.
  • Local partner with large Healthcare network.

GROUP VALUES

Focus on customers

Investing in research of tailor solutions to propose and carry out together with customers.

Efficiency research

Services are based on a process of industrial production subjected to frequent analysis, in order to production efficiency goals.

Values

The approach of Servizi Italia is to guarantee a high level of service to benefit of patients and citizens, as beneficiaries of assistance and health services.

Organizational solidity and reliability

Servizi Italia is a deep-rooted company, with a wide production network.

Product and process innovation

Backed by a strong cooperation with research centers and international university centers.

Safety and transparency

Guaranteed by the traceability of products and the quality system certification process.

Integrity, business ethics and Professionalism

Promotion of business ethics, prevention of corruption and protection of reputation. Enhance skills and talents, attracting the best resources.

Internationalization

14Being a multinational company for organization,culture, modes of presence and respect in global markets.

Sharing Transparency Responsibility AwarenessConsistencySustainability

CONSOLIDATED ECONOMICS RESULTS

i
i
i
l
S
I
t
e
r
v
z
a
a
(
)
l
i
d
d
C
P
&
L
'0
0
0
t
o
n
s
o
a
e
e
u
r
o		 F
Y
2
0
1
6		 F
Y
2
0
1
7		 1
H
2
0
1
7		 1
H
2
0
1
8
R
e
v
e
n
u
e
s
h
%
c
a
n
g
e		 2
3
7.
7
1
6		 2
5
2.
1
0
2
%
6,
1		 1
2
5.
3
3
3		 1
2
6.
4
7
6
%
0,
9
E
B
I
T
D
A
%		 6
4.
0
2
2
%
2
6,
9		 6
9.
8
2
9
%
2
7,
7		 3
4.
5
6
5
%
2
7,
6		 3
3.
8
9
9
%
2
6,
8
E
B
I
T
%		 3.
4
1
7
5
%
5,
8		 6.
3
6
1
7
%
6,
5		 9
9
7.
1
%
6,
4		 8.
8
6
7
%
7,
0
l
N
R
t
t
e
e
s
u
%		 0.
1
5
1
5
%
4,
4		 4.
3
6
1
5
%
5,
7		 4
3
7.
5
%
5,
9		 4
3
7.
5
%
5,
9

ECONOMIC ANDFINANCIALHIGHLIGHTS IN2018:

+

+

+

+

–

–

  • Double digit growth in 1H 2018 of both textile and surgical instruments sterilization, which supported sales and margins of Italian perimeter.
  • Relevant organic growth of Brazilian perimeter in 1H 2018.
  • New acquisitions accounted for +4.0% in 1H 2018 Revenues growth.
  • Transaction done in 2018 put the basis for future results improvements both in terms of sales and margins.
  • Laundry business in Italy registered a slow down (in line with communicated forecasts).
  • In 1H 2018 significant FX effect connected with consolidation of Brazilian operations.

CONSOLIDATED ECONOMICS RESULTS

CONSOLIDATED FINANCIAL RESULTS

'0
E
0
0
r
o
u		 3
0.
6.
2
0
1
7		 3
1.
1
2.
2
0
1
7		 3
0.
6.
2
0
1
8
i
k
i
i
l
O
t
t
t
g
g
p
e
r
a
n
n
e
w
o
r
n
c
a
p
a		 8.
8
2
3		 0.
9
3
4
1		 0.
4
2
1
7
/
i
i
i
i
h
h
l
b
l
O
t
t-
t
t
t
e
r
s
o
r
e
r
m
a
s
s
e
s
a
e
s		 -9
9
2
7		 2.
0
0
0
-1		 -6
2
6
0
i
i
k
l
N
t
t
g
e
w
o
r
n
c
a
p
a		 -9
6
9		 0
6
6
-1		 4.
4
8
2
/
i
d
d
i
i
i
F
t
M
L
t
e
a
s
s
e
s
e
m
o
n
g
e
r
m
p
r
o
s
o
n
s
x
u
v
–		 2
1
8.
0
2
6		 2
1
8.
3
5
3		 2
1
1.
8
0
6		 d
ium
Me
Te
rm
d
i
l
I
t
t
n
v
e
s
e
c
a
p
a		 2
1
7.
0
5
7		 2
1
7.
2
8
7		 2
1
6.
2
8
8
(
)
h
h
l
d
'
i
S
E
B
t
a
r
e
o
e
r
s
q
u
y		 3
6.
2
4
1
7		 4
6
3
9
1
1.		 3
8.
8
9
4
1
(
)
i
i
f
l
d
b
N
A
t
t
e
n
a
n
c
a
e		 8
0.
8
0
1		 6
4
8
7
5.		 3
9
4
7
7.
i
d
l
I
t
t
n
v
e
s
e
c
a
p
a		 2
0
1
7.
5
7		 2
2
8
1
7.
7		 2
6.
2
8
8
1		 ho
S
rt t
erm
(
)
/
i
G
A
A
B
e
a
r
n
g
+		 0,
3
7
x		 0,
3
5
x		 0,
3
6
x
(
)
/
/
b
i
D
t
E
t
A
B
e
q
u
y		 0,
5
9
x		 0,
5
3
x		 0,
5
6
x

CREDITLINES(30.6.2018)

69.68058.07967.15379.617 80.810 75.648 77.394 0,70x0,52x 0,55x 0,58x 0,59x 0,53x 0,56x 1,14x0,87x1,06x1,24x1,08x0,40x0,60x0,80x1,00x1,20x1,40x1,60x1,80x2,00x010.00020.00030.00040.00050.00060.00070.00080.00090.00031.12.2013 31.12.2014 31.12.2015 31.12.2016 30.6.2017 31.12.2017 30.6.2018 Net debt D/ED/EBITDA

NETDEBTHISTORICALTREND

Operational investments and acquisitions of Servizi Italia are conducted with specific focus on keeping a balanced and healthy debt structure.

18

CASHFLOW GENERATION

Even in presence of a capital intensive business, Servizi Italia is able to generate important positive cashlows from its operative activity.

During the last few years, the management decided to invest its resources into structural investments, for consolidating its leadership positionand for a constant growth and improvement of Group perfomance.

Net of operating investments, Servizi Italia generated cash over Euro 210 million from

STOCK EXCHANGE –MAIN DETAILS

Intermonte SIM Outperform 7,50 7-Aug-18 MidCap Partners Buy 6,70 6-Sep-18 0,16 0,15 0,15 0,17 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Averagepayout ratio of last 5 years equal to 39.0%.

Average dividend yieldof last 5 years equal to 3.3%. 20

DISCLAIMER

This presentation has been prepared by Servizi Italia S.p.A. ("Servizi Italia" or the "Company") and must be read in conjunction with its oral presentation.

The information contained in this presentation does not purport to be comprehensive. Neither Servizi Italia S.p.A. nor any of its officers, employees, advisers or agents accepts any responsibility for/or makes any representation or warranty, express or implied, as to the truthfulness, accuracy or completeness of the information contained in this presentation or any other information relating to Servizi Italia S.p.A., its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, transmitted or otherwise made available.

The information contained in this presentation must be treated as highly confidential and cannot be distributed without the expressed written consent of Servizi Italia S.p.A.

This document is confidential and is being provided to you solely for your information and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose. Neither this document nor any part or copy of it may be taken or transmitted into the United States (US) or distributed, directly or indirectly, in the US or to any "US person", as that term is defined in the US Securities Act of 1933, as amended (the "Securities Act"). Neither this document nor any part or copy of it may be taken or transmitted into Australia, Canada or Japan or to any resident thereof, or distributed directly or indirectly in Australia, Canada or Japan or to any resident thereof. Any failure to comply with this restriction may constitute a violation of US, Australian, Canadian or Japanese securities laws. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

This document does not constitute or form part of any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or any other material discussed at the presentation, or on its completeness, accuracy or fairness.

The information in this document and any other material discussed at the presentation are provided as at the date of this presentation and is subject to completion and change without notice.

By attending the presentation you agree to be bound by the foregoing terms and any provided personal details will be treated according to terms and conditions indicated in the Potential Investors Privacy Policy available on Company's website, Privacy section.

Servizi Italia S.p.A.

Via S. Pietro, 59/b43019 Castellina di Soragna (PR) ItalyTel.+39 0524 598511 - Fax+39 0524 598232 Share capital: Euro 31,809,451 fully paid-up Founded: 1986 Tax ID Number and Parma Business Registry Code: 08531760158 Market: MTA – STAR segment

Sector: IndustrialISIN code for ordinary shares: IT 0003814537 Reuters: SRI.MI --- Bloomberg: SRI IMSpecialist: Intermonte SIMInvestor Relations Department: Giovanni Manti (IRM), Luigi InnocentiEmail: [email protected] site: www.si-servizitalia.com

More from Servizi Italia

Transaction in Own Shares 2024
Dec 17
Delisting Announcement 2024
Dec 11
M&A Activity 2024
Nov 19
M&A Activity 2024
Nov 15
Transaction in Own Shares 2024
Nov 15
Transaction in Own Shares 2024
Nov 13
Report Publication Announcement 2024
Nov 7
Report Publication Announcement 2024
Nov 7
Quarterly Report 2024
Nov 7
Quarterly Report 2024
Nov 7
View all filings →

Talk to a Data Expert

Have a question? We'll get back to you promptly.