Exprivia and Italtel President: “The creation of new business models is based on the ability to evolve the digital structure of companies.” 

Italtel CEO: “Industry 4.0, Smart Citizens, Healthcare and 5G: the convergence trends of IT and TLC.” 

• Revenues growth of up to 760 million, CAGR of 3.8%
• Increase international turnover from 29% to 40%
• Double EBITDA to 76 million
• Improvement in net debt, dropping to -120 million

Exprivia S.p.A. – a company listed on the STAR segment of Borsa Italiana [XPR.MI] – has presented its 2018-2023 Strategic Plan which was created following its investment in Italtel, a shareholding equal to 81% of Italtel’s share capital, finalized on December 14, 2017.

The new group is today one of the most important Italian industrial companies in the digital technologies sector. Exprivia|Italtel owns a wide portfolio to meet growing demand from ongoing digital transformation and can manage the entire ICT value chain, from infrastructure components to applications and services.

By following its strategic plan – illustrated to investors and analysts at a meeting in Italy yesterday – the group aims to achieve revenues of up to 760 million euros in 2023, with an increase of more than 150 million euros compared to 2017 and a CAGR of 3.8%. The group’s revenues’ composition will change between now and 2023, with the international share achieved expected to increase from 29% of total revenues recorded in 2017 to 40% in 2023. The contribution deriving from the synergies of the integration on the reference markets of Exprivia and Italtel will be particularly important, with the group expected to reach a value of up to 60 million euros in 2023.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is expected to double during the plan’s term, growing from 36 million euros in 2017 (aggregate adjusted data as of December 31, 2017) to 76 million euros in 2023 (with an incidence of 10% on revenues), which corresponds to an expected net result equal to 29 million euros.

The net debt will decrease from -226 million euro in 2017 to around -120 million euro in 2023; the committed debt lines will cover around 75% of the overall amount in the plan’s period.

The group’s 2018-2023 strategic plan is the result of Exprivia’s growth forecast that integrates Italtel’s plan, with Italtel’s main economic and financial issues also presented.

The development plan, presented by the President of Exprivia and Italtel Domenico Favuzzi, and the CEO of Italtel Stefano Pileri, originates from the ongoing changes and involves not only the technology, but the business model itself.

“Digital transformation is changing the way we live and work and being prepared for this change is the only way we can continue to be competitive in international markets,” said Favuzzi. “The creation of new business models is based on the ability to evolve the digital structure of companies. We aim to develop digital expertise and solutions that can be applied to our customers’ business models thanks to the group’s new synergies, such as increasingly equipped applications for artificial intelligence, distributed in the Cloud and based on data or robots and sensors connected to each other in ultra-fast networks.”

“Digital technology is having and will have an ever more pervasive impact across all market sectors,” declared Italtel CEO Stefano Pileri. “Industry 4.0 initiatives, which can boost production in large, industrialized countries; the strong potential impact of Smart Cities on citizens’ lives and the environment, starting from the mobility ecosystem and self-driving cars; the success of continuous care focused on digital and territory-based management which is necessary for the healthcare system to support the increase in average life expectancy and related chronic diseases; the evolution of the television and media ecosystem towards increasing quality and interactivity; and the innovation of the electricity grids with the integration of renewable and discontinuous sources towards the so-called Smart Grids. These are some examples of sectors in which telecommunications skills, which are accelerating 5G development, are being mixed together with IT application development skills, which is seeing more and more artificial intelligence, indicating the vastness of possible activities for an integrated group such as Exprivia|Italtel.”

The 2018-2023 strategic plan was approved by the Exprivia Board of Directors during the meeting, which was held at the Borsa Italiana, in Italy, on July 12, 2018.

The presentation is available on the company’s website (www.exprivia.it) in the Investor Relations, Presentations section.