Regulatory Filings • Jun 27, 2019
Regulatory Filings
Open in ViewerOpens in native device viewer
| Informazione Regolamentata n. 0533-15-2019 |
Data/Ora Ricezione 27 Giugno 2019 21:02:06 |
MTA - Star | ||
|---|---|---|---|---|
| Societa' | : | ESPRINET | ||
| Identificativo Informazione Regolamentata |
: | 120140 | ||
| Nome utilizzatore | : | ESPRINETN02 - Casari | ||
| Tipologia | : | REGEM | ||
| Data/Ora Ricezione | : | 27 Giugno 2019 21:02:06 | ||
| Data/Ora Inizio Diffusione presunta |
: | 27 Giugno 2019 21:02:07 | ||
| Oggetto | : | Esprinet approve new strategic guidelines and profitability targets for 2019 and Buy back program |
||
| Testo del comunicato |
Vedi allegato.
Press release in accordance with Consob Regulation no. 11971/99
Weight of combined Italian, Spanish and Portuguese distribution market on total IT spending increasing from 39.5% in 2015 to 53% in 20191
During the first 5 months of 2019 the technology distribution market in South Europe grew by 9%2 and Esprinet by 13% overperforming the market by 4%.
Improvement of the quality of service provided to customers by means of a stronger focus on "Customer Satisfaction".
Growth of the added-value business areas ("Advanced Solutions", "As a Service" sales motion, logistic and marketing outsourcing services).
Leveraging of market leadership to improve the level of working capital absorption.
2019 EBIT expected in the range 38-42 million euro, growing strongly compared to 2018.
Further improvements of gross profit and EBIT expected for 2020-2021.
Since 2020 ROCE-Return on Capital Employed expected to be significantly higher than the cost of capital.
Start since the first week of July of a buy-back program of up to 1,470,217 shares approved.
Vimercate (Monza Brianza), 14 May 2019 - The Board of Directors of Esprinet S.p.A. (Italian Stock Exchange: PRT) met today under the chairmanship of Maurizio Rota to examine and approve the new Group strategic guidelines and the target of profitability for 2019.
Furthermore, the Board of Directors, following the authorization granted by the Shareholders' Meeting on May 8th , 2019, has resolved to start a buy-back program for a maximum amount of 6 million euro and for a number of shares not exceeding 1,470,217 or 2,81% of the share capital.
1 Source: company elaboration on EITO, Euromonitor and Context data
2 Source: Context (May 2019)
The Company reconfirms its focus on the core technology distribution which is seen in strong growth due to the increasing level of utilization of distributors by vendors, resellers and both "offline" and "online" retailers.
The Company will keep its focus on the existing geographies like Italy, Spain and Portugal where current market share of 24,4% still allows relevant room for further expansion.
The top-line growth is expected to be mainly driven by growing presence in Portugal and further development of "Advanced Solution" product lines both in Italy and Spain.
The Company's key metric for shareholders' value creation is "ROCE-Return on Capital Employed": the management is ready to shed business segments which do not possess any potential to provide ROCE levels significantly above the cost of capital.
In a market in which many lines of business are strongly commoditized and undifferentiated, the investments in training and procedures aimed at achieving levels of excellence in customer service are deemed to be the most important drivers for product margin improvement.
The Company has identified working capital management, and namely the improvement in stock levels, or in its funding by vendors, as one of the key areas for ROCE improvements.
Mid-term the "consumption" selling model is expected to grow as compared to the traditional "transactional" model. The Company is therefore developing plans and deploying activities in order to establish a structural coverage of the "Cloud" and "Managed Print Services" markets as well as the "seat management" opportunity ("device as a service") which in time should deliver stronger predictability of sales streams, improvements in gross profit and optimization of working capital absorption.
Lastly the Company is increasing its involvement in logistic and marketing outsourcing activities offered to vendors and big customers alike aiming at combining the traditional distribution business (either "transactional" or "as a service") with an additional high-profit service business.
Because of the activities in place and under development, the management expects:
The buy-back program, in execution of the authorization granted by the Shareholders' Meeting on 8 May 2019, refers to a maximum amount of euro 6 million and a number of shares not exceeding 1,470,217 equal to 2,81% of the share capital of the Company.
The shares acquired will subsequently be cancelled, with the consequent proportional attribution of the rights incorporated in them to the benefit of all the other shares. The buy-back program thus represents an option for the Company to grant its shareholders additional remuneration towards the distribution of dividends.
Purchases will commence at the beginning of July 2019 and will be completed by March 31st 2020.
For the purposes of executing the buy-back program, the Company will engage an authorized agent, who will take its trading decisions in full independence, also in relation to the timing of the purchases and in compliance with daily price and volume limits. In particular, the price of each transaction shall not deviate by more than 5% from the official price registered by Esprinet S.p.A.'s shares in the session of the Mercato Telematico Azionario organised and managed by Borsa Italiana S.p.A. ("MTA") of the day preceding each individual transaction and, in any case, shall not exceed the higher between the price of the last independent transaction and the highest current independent purchase bid price on the MTA. The maximum number of treasury shares that may be daily purchased shall not exceed the 25% of the average daily volume of shares of the Company traded on the MTA.
The transactions will be made on the MTA, in compliance with art. 144-biIs, paragraph 1, letter b) of Consob Regulation No. 11971/1999 and with the additional conditions set out in the resolution of the Shareholders' Meeting on 8 May 2019, as well as in accordance with the provisions of Regulation (EU) 596/2014 on market abuse and Commission Delegated Regulation (EU) 2016/1052.
As of today, the Company holds 1,150,000 treasury shares, equal to approximately 2.194% of the share capital, acquired in execution of previous buyback programs [and to the service of incentive plans resolved upon by the Company]. Esprinet S.p.A.'s subsidiaries, also through fiduciary companies or any other third party, do not hold shares in the Company.
The Company will communicate to the market the details of the transactions carried out within the time limits and in compliance with the procedures required by the applicable laws and regulations.
The present press release has been prepared pursuant to the Issuers' Regulations. It is available to the public on the Nis-Storage authorised storage mechanism () and on the Company's website (www.esprinet.com) in the section "Investor Relations – Press Room".
The Strategic Guidelines will be illustrated on June 26th 2019 during a meeting with analysts and investors arranged by the "specialist" Banca IMI.
The related presentation will be available and downloadable on the aforesaid website, under the section "Investor Relations - Presentations" and on the Nis-Storage authorised storage mechanism ().
For further information:
Esprinet S.p.A. – IR and Communications Tel. +39 02 40496.1 - [email protected]
Esprinet (based in Vimercate Italy; Borsa Italiana: PRT), is the holding of a Group engaged in the "B2B" distribution of technology products at the top of the market in Italy and Spain. The 2018 turnover of € 3.6 billion places Esprinet among the top 50 Italian industrial groups and the top 10 distributors worldwide. Thanks to a business model based on the coexistence of different sales channels tailored to the specific characteristics of 36.000 reseller clients, Esprinet markets about 850 brands and over 63,000 products available in 130,000 square meters of managed warehouses. Through the V-Valley division, Esprinet is able to distribute value-added products, services and IT solutions. The Group's activities also cover Portugal, and the production and sales of the named brands "Celly" (smartphones accessories) and "Nilox" (outdoor technology).
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.