Strategic Guidelines and 2021-2023 Business Plan - SG Company
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Strategic Guidelines and 2021-2023 Business Plan
MILAN, NOVEMBER 2020
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DISCLAIMER
This presentation contains forward-looking statements regarding the timing and financial impact of SG Company SpA's ability to
implement its business plan, expected revenues, and future success. These statements involve a number of risks and uncertainties
and are based on assumptions involving judgments about future economic, competitive, and market conditions and future business
decisions, all of which are difficult or impossible to accurately predict and many of which are beyond SG Company SpA's control.
Some of the significant factors that could cause actual results to differ materially from those indicated in the forward-looking
statements include general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses or
legal developments, competitive pressure, changes in market requirements and standards and risk factors detailed from time to
time in SG Company SpA's legal documents, including SG Company SpA's annual financial statements. The forward-looking
statements contained in this document are based on Management's reasonable belief as of the date hereof.
SG COMPANY
DIGITAL TRANSFORMATION
AND NEW BUSINESS
01
MARKET AND
COMPETITIVE CONTEXT 02
2021 – 2023
BUSINESS PLAN 03
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SG COMPANY
DIGITAL TRANSFORMATION
AND NEW BUSINESS
01
MARKET AND
COMPETITIVE CONTEXT 02
2021 – 2023
BUSINESS PLAN 03
|
HIGHLIGHTS: SG COMPANY
⊙ SG Company has been one of Italy’s top players in the
INTERNATIONAL PRESENCE
Entertainment&Communication industry for over 20 years now, boasting a portfolio
of high-standing clients (A2A, ABI Eventi, Allianz, BlackRock, Medtronic, Vodafone,
Eolo, Wind3, PWC, Bayer, Basf, Ferrari, Mediolanum, Sisley, LVMH, Daikin, BMW,
Dainese, Enel, Eolo, CheBanca! Youtube, Generali, Lavazza, Vorwerk, Google, L'Oréal,
Luxottica, Pandora and Sky, TIM, Siemens, DAZN). It has planned, promoted, and
produced successful formats of international relevance such as Milano Food Week,
Milano Wine Week, Obecity, Sneakerness, DigitaDesignDays, etc.
⊙ Specialized in Digital Communications, Video Production, Consumer Format,
Meetings&Events Industry, it has launched a digital transformation process across all
its business areas and a strategy to enhance the value of the data extracted from its
"core" activities through the implementation of "MarTech" (Marketing Technology)
solutions.
⊙ SG Company's unique and distinctive value creation hinges on the synergy between
data and content - native digital and for the first time also live – that stems from its
exclusive ability to offer a single direction over creativity, production, and technology
CURRENT LOCATIONS
for each project, guaranteeing clients constant integration between physical and
digital. CURRENT PARTNERSHIPS AND
LOCATIONS IN OPERATION
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HIGHLIGHTS: SG COMPANY MAJOR CUSTOMERS
⊙ The 2021-2023 business plan envisages a rebalancing of the mix of core activities and
focus on digital and innovative solutions with investments in specialized skills and
M&A; in 2023 revenues (Exp) of Euro 31.5 million, EBITDA margin 10%. Through
implementation of the Business Plan, the Group will position itself in the Digital
Communication and Marketing Automation segment, which is recording a high growth
rate in Italy and worldwide, accelerated even further by the current context.
⊙ The digital transformation process is backed by a capital increase with pre-emptive
rights of Euro 4 million, dedicated to M&A, development of technological platforms,
acquisition of specialized resources, and development of foreign markets.
⊙ Listed on the AIM of Borsa Italiana since 26 July 2018, registered as an innovative
SME since 1 October 2020, and ISO 9001 certified, the Group currently counts about
100 employees; in 2020, it embarked on the Benefit Company path to assert the
values of social and environmental sustainability that distinguish its activities.
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THE DIGITAL TRANSFORMATION PROCESS
TOWARDS THE NEW SG COMPANY
STRATEGIC GUIDELINES ACTION PLAN
⊙ Launch of new "Data valorization” business line ⊙ M&A process
⊙ Integration of MarTech solutions into the core ⊙ Ramp up of Video Production and creation of
activities proprietary content
⊙ Internationalization and development of foreign ⊙ Development/launch of Tech platforms:
markets o Data gathering and analysis
o Online events
⊙ Inclusion of new skills
⊙ Open Innovation: start-up ecosystems,
universities, and research centers
⊙ Preparation of a flexible cost structure
⊙ Remuneration policy and Work for Equity plan for
Top Management engagement
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SG COMPANY FROM 2021: BUSINESS AND OPERATING COMPANIES |
«CORE» BUSINESS LINES NEW BUSINESS LINE
DIGITAL & LIVE CONSUMER VIDEO MEETING & EVENTS DATA
COMMUNICATIONS FORMAT PRODUCTION INDUSTRY VALORIZATION
Design and implementation of Design and creation of Video production carried out Consulting, planning, and sales of Powered by data extracted through
360° experiences, where Tech and proprietary and/or licensed through two production corporate & business travel MarTech solutions from the Group's
digital solutions permeate every consumer formats. companies Double: productions in projects for large companies and core activities. To be created and fed
project. Creativity, content, and Co-marketing activities with client TV and virtual studios, video multinationals. thanks to investment in human
production work alongside digital companies to develop projects posters, vertical videos, resources and start-ups with vertical
and technology to create extra capable of generating shared streaming, digital adv. expertise in big data (data
value for the client. value. Opportunities to export visualization and data analysis). In
successful "made in Italy" formats compliance with regulations, the
to foreign markets. Group positions itself as a FAIR
(Findable, Accessible, Interoperable,
Reusable) data company.
Revenues %
2020 2023
0% 6%
SG COMPANY BUSINESS MODEL INNOVATION
BUSINESS LINES IDENTIFIED AND IN
EXISTING BUSINESS LINES BUSINESS LINES TO BE IMPLEMENTED
IMPLEMENTATION
The Group will continue to focus on areas of excellence by As early as 2020, the service/product offering had evolved and a Launch of a new business line that extracts and «enhances» on
making the following organizational changes: proprietary platform for digital events had been developed. the market the data made available through «core» activities
1. Separation of the divisions into different companies 1. Talent management: inclusion of vertical skills in 1. Inclusion of dedicated roles and/or companies/start-
to offer each a unique and distinctive positioning work teams and launch of a program to retain ups with expertise in innovation and digital
recognizable by customers company talent transformation
2. «Sales» division across all group companies to share 2. Network centricity: network of solid alliances built 2. Creation of a dedicated company to design and
the system, the network of relationships and with suppliers and partners to make the company’s implement data gathering through the activities of
customer portfolios to scale new activities on market offering increasingly efficient and innovative other group companies
3. Control and coordination guaranteed by the Issuer 3. Innovation: participation in Open Innovation systems 3. Possibility to sell on the market the design of
and staff functions (AFC, marketing, sales) and start-ups to engender ideas and innovative dedicated platforms and apps
4. Lowering of the break-even point services 4. Integration of a portfolio of marketing automation
5. Streamlined organizational flows. 4. M&A program to acquire possible targets of interest services on top of the products and services currently
as in the past. sold.
|MARTECH ACTIVITY PORTFOLIO
WE INTEGRATE TECHNOLOGY INTO ALL OUR VIDEO, LIVE, AND DIGITAL
PRODUCTION ACTIVITIES BY CHOOSING THE MOST SUITABLE FROM OVER 8,000
POSSIBLE MARTECH SOLUTIONS AVAILABLE ON THE MARKET:
SERVICES PROVIDED
1. advertising and promotion (display adv, mobile marketing, search & social adv,
ON AND OFFLINE
CONTENT
TECHNOLOGY content adv, video adv…)
PRODUCTION
2. user experience and content marketing (e-mail marketing automation, content
marketing, interactive content, chatbot, QR Code).
3. social media management and pr (social media automation, lead generation,
conversion, omnichannel marketing)
4. commerce and sales (mobile app, sales customization, e-commerce, IoT, retail
proximity, hyper-geolocation, app & website development)
5. data management (data gathering, governance, privacy, data marketing, analytics,
dashboard, data science, customer intelligence, platform, cookies, fingerprints, pixel,
data visualization, wearable and IoT for distribution during format and live
communication).
FIRST PARTY DATA
Profilation, Location, Navigation, Lifestyle, Biometrics, Transportation,
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Insurance, Banking Data.
Expertise already in place Expertise identified and to be acquiredDATA VALORIZATION: FROM GATHERING TO VALUE
Data gathering and analysis process Value Extraction
DATA GATHERING
FIRST & THIRD PARTY DATA Data gathering from live and digital activities, or from formats
Organization of proprietary or third-party data
Powering machine learning
DATA VISUALIZATION
Data processing
Easy to understand insights
KPI presentation
DATA ANALYSIS
Consulting in
analysis and value extraction
from information processed
DATA
ACTIONABILITY Consulting related to
business solutions and action plans
based on information gathered and processed
|DEVELOPMENT OF PROPRIETARY TECHNOLOGY PLATFORMS
DYHM is SG Company's proprietary digital event management platform,
fully responsive on all types of devices. The three main features of the
platform are:
live streaming exhibition area business
sessions with sponsor networking
stands opportunities
Interactive agenda of live Direction flow management Section dedicated to live Exhibition and interactive area Exhibition space dedicated to "Networking" area with match Personal user area with
streaming sessions, with for live streaming sessions streaming Q&A with map of stands in the sponsor, divided into 4 making and user search personal profile editing,
identification by content (speaker connection from isometric view and different available formats function, one-to-one chat archive of received digital
categories remote) outside the platform sizes depending on type of between participating users business cards, list of favorite
scope, including on several sponsorship and exchange of digital digital events, chat with
virtual rooms simultaneously business cards conversation history.
|ROLE ORGANIZATION CHART: C-SUITE
Chief Executive
Officer
Davide
Verdesca
Chief Mark. & Chief Financial Chief Digital &
Chief Sales Officer Innovation Officer
Operat. Officer Officer
|HALLMARKS
Reputation and twenty years of Portfolio of high-standing Diversification of core sectors High growth International scalability thanks
experience built on the quality clients, for the development of (banking, pharma, insurance, rate sector to the network of offices and
of services and professional new business areas automotive, energy, ICT, food & partnerships abroad
expertise of human resources beverage, luxury, beauty,
delivery)
Open innovation project for Data Ethics Canvas: In data Track record of success in the Innovative SME and Benefit
technological integration processing, data privacy and M&A process Company with start of ESG
between core & digital activities data ethics are integral parts of process
and data valorization the SG approach.
|GROUP AND CURRENT SHAREHOLDERS
CURRENT SHAREHOLDERS
82.7% | DL S.r.l
17.3% | Market
100% 100% 100% 80%
SG S.r.l.
The Board of Directors of SG Company is composed of the two founding partners assisted by the CFO and COO. The independent member is Prof. Carlo
Altomonte (Bocconi). The Management team boasts solid experience both in the historical business lines as well as in the innovative ones, such as
digital, hybrids, format design and development.
|SG COMPANY
DIGITAL TRANSFORMATION
AND NEW BUSINESS
01
MARKET AND
COMPETITIVE CONTEXT 02
2021 – 2023
BUSINESS PLAN 03
|GROUP AND CURRENT SHAREHOLDERS
⊙ Marketing Technology: a $121 billion market with a 22% growth rate:
⊙ US companies invest 26% of their budget in marketing technology. The spillover rate in
Italy is quite interesting: digital and technology are among the levers of growth that
companies from across every industry are betting on.
⊙ Marketing automation solutions: software designed to personalize content, speed up
response times, automate digital and marketing activities, produce and store
multimedia content, and create omnichannel experiences.
⊙ Goal: generate insights from data and build data-driven marketing strategies and
activities.
|GLOBAL TREND: DIGITAL, THE PRIME CHANNEL
WINNING AND LOSING CATEGORIES IN THE COVID-19 RECESSION
Winners: A Losers: B
○ Restaurants
○ Pharmaceuticals
○ Sports stadiums, concert halls
○ Medication and protective
○ Museums
equipment (PPE) manufacturers
Short ○ Gyms
○ Home exercise equipment
Term: 1 ○ Parks, beaches, recreation areas
○ Carry out food providers
○ Physical schools and universities,
○ Home office equipment makers
especially private
○ Alcoholic beverage makers
○ Real estate owner and services
○ Casual and relaxed fashion
○ Formalwear
○ Online Retailers
○ Cruisers
○ Online grocers
○ Tourist service providers
○ Networking software service
○ Oil producers and distributors
Short & and hardware providers
○ Manufacturers of gasoline engine autos
Long ○ Streaming service providers
and trucks
Term: 2 ○ News and entertainment
○ Mass transit service and equipment
services
providers
○ Telecommunications
○ Brick and mortar retailers
○ Cleanliness products
○ Movie theatres
○ Online Education
| WARC DATA Global Ad Trends, May 2020GLOBAL TREND: ON DEMAND OR STREAMING, EVERYTHING, AS LONG AS IT'S VIDEO
⊙ The trend of spending on Global Ad is recovering rapidly,
brands have decided how to manage their communications
in the new normal, and budgets are back on track.
⊙ Investments in digital channels are confirmed, with much
better average performance than other media. Video and
social media remain the two main channels, and forecasts
show further improvement.
|GROUP AND CURRENT SHAREHOLDERS
From 2021, the live events sector is also expected to reverse upwards
and enjoy a positive trend until 2024.
Accelerated transformation of E&M segments versus forecasts,
especially for the video segment. Cinema versus video on demand
(SVOD) subscriptions is now reversing historical trends.
The volume of data consumed by smartphones versus fixed
broadband shows how mobile is set to become the primary gateway
to the web for consumers worldwide.
PwC Global
Entertainment &
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Media Outlook
2020-2024SG COMPANY
DIGITAL TRANSFORMATION
AND NEW BUSINESS
01
MARKET AND
COMPETITIVE CONTEXT 02
2021 – 2023
BUSINESS PLAN 03
|BUSINESS PLAN DRIVERS
Internationalization through Launch of a new business line Investment in proprietary Upselling to customers by
A Nexthing network and expansion
of business lines (production and
post-production of commercials)
B Data Analytics
C technology platforms and
development of Open Innovation
projects in association with
universities, research centers or
D directing them to new business
lines with higher margins
start-ups
Consolidation of the hybrid Efficiency with over 50% Building of strong commitment M&A and strategic partnerships
E events business line
F reduction of structural and
personnel costs to make them
consistent with the new
company size (BEP)
G with staff to achieve business
plan targets (Work for Equity) H for the integration of skills in
Digital and Data Driven areas
NEW STRATEGIC PARTNERSHIPS:
3-year exclusive agreement with ACI Blue Thanks to the agreement in place, SG Company ACI Blue team is positioned among the top 5
team, a 100% ACI Group company, to provide will be able to continue to offer, through ACI, companies in the organization of meetings &
top clients with a unique offering. Under the meetings & events services, incurring lower events in Italy with high-standing clients.
agreement, ACI will offer operational services costs in line with the Business Plan target of
related to meetings & events, while SG will lowering the break-even point.
provide digital strategy & communication
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services.BUSINESS PLAN TARGETS
Net revenues Normalized EBITDA
NFP (cash) Operating cash generation PN
(excluding capex)
|REVENUES DEVELOPMENT 2020-2023: BREAKDOWN
Data ‘000€
Revenue generation detail 2019A %
FOCUS ON HISTORICAL AND SCOPE CUSTOMERS
Top 3 7,699 20.6%
Top 10 16,330 43.6%
Top 20 22,494 60.1%
Total
Totale 37,442 100.0%
Di cui
Of confermabili
which confirmable 21,203 54.0%
Historical New Upselling Cross + to be developed Total
⊙ Historical Business Area: focused on traditional business in the MICE and live event area, whose
contribution will remain firmly above 50% of total generated revenues, without exceeding 2019 levels
⊙ Areas for Improvement (i.e. Upselling and Cross + to be developed): driven by the introduction of the
Phygital and Video product, in addition to the traditional Digital business (contributing roughly 30% of
total)
⊙ New Business Area: to be developed with entry of 2 new executives into the company scope. The
percentage on turnover increases from 10% in 2021 to 15% in 2023
|| SG COMPANY a Sharing Growth Company
| Thankyou
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