1H 2019 Results Presentation 30 September 2019 Disclaimer This - - PowerPoint PPT Presentation

1H 2019 Results Presentation

30 September 2019

• Az. Ospedaliera Meyer

Firenze

Disclaimer

2

This document has been prepared by Sirio S.p.A. (the "Company") for use during meetings with investors and financial analysts and is solely for information purposes. The information set out herein has not been verified by an independent audit company. Neither the Company nor any of its subsidiaries, affiliates, branches, representative offices (the “Group”), as well as any of their directors, officers, employees, advisers or agents (the “Group Representatives”) accepts any responsibility for/or makes any representation or warranty, express or implied, as to the accuracy, timeliness or completeness of the information set out herein or any other related information regarding the Group, whether written, oral or in visual or electronic form, transmitted or made available. This document may contain forward-looking statements about the Company and/or the Group based on current expectations and opinions developed by the Company, as well as based on current plans, estimates, projections and projects of the Group. These forward-looking statements are subject to significant risks and uncertainties (many of which are outside the control of the Company and/or the Group) which could cause a material difference between forward-looking information and actual future results. The information set out in this document is provided as of the date indicated herein. Except as required by applicable laws and regulations, the Company assumes no obligation to provide updates of any of the aforesaid forward-looking statements. Under no circumstances shall the Group and/or any of the Group Representatives be held liable (for negligence or

• therwise) for any loss or damage howsoever arising from any use of this document or its contents or otherwise in

connection with the document or the aforesaid forward-looking statements. This document does not constitute an offer to sell or a solicitation to buy or subscribe to Company shares and neither this entire document or a portion of it may constitute a recommendation to effect any transaction or to conclude any legal act of any kind whatsoever. This document may not be reproduced or distributed, in whole or in part, by any person other than the Company. By viewing and/or accepting a copy of this document, you agree to be bound by the foregoing limitations.

• 1. Sirio at a Glance
• 2. Market
• 3. Business Units
• 4. Financials
• 5. Strategy & Achievements

Aeroporto Marconi Bologna

Sirio is a leading operator in the Italian "hospital" commercial catering market, where it manages directly bars/eateries for employees, visitors and patients. The company has successfully exported its scalable business models in adjacent business units: motorways, airports, city centers, and fast food through different formats. The Company manages 83 PoS at September 25, 2019. The company, headquartered in Ravenna with ca. 770 employees involved in the company’s operations.

Sirio at Glance

4 Sirio Channels

Opera Dulcis, Imola Caffè Pascucci Sky Terrace, Genoa

5

History

The current vice president Luciano Lomonaco establishes Sirio, collecting his grandfather’s inheritance, a pioneer in hospital catering Stefania Atzori joins the Sirio’s BoD Opening of the motorway business with the first PoS in the Brennero motorway SIRIO is selected as partner for Burger King expansion plan in Italy Stefania Atzori takes the position of President PoS openings in Marconi Airport (Bologna) with the premium brand La Ghiotta Entrance in the city segment

1992 2018 2012 2004 1998 2014 2006 2019

IPO Listing

€ 32 mln € 17 mln € 42 mln € 64 mln Revenues CAGR 2007-2018 12.8%

2007 2010 2015 2018

Geographical presence

6

Tot 83* PoS

N° POS 30/06/2018 30/06/2019 30/09/2019 Total PoS Awarded Hospital 57 63 65 74 Motorway 7 7 5 7 Fast Food 2 4 4 4 City 2 3 3 5 Airport 4 4 6 7 TOTAL 72 81 83 97

Latest Opening

Ancona Ancona Roma Lonato (BS) Genova

Notes: (*) At September 25, 2019

Governance

7

Top Management Shareholding Structure Board of Directors

Stefania Atzori CEO Luciano Giuseppe Lomonaco Chairman

Gianni Berton Independent Member Mario Resca Independent Member Enrico Sassoon Independent Member Gian Luigi Costanzo Member

Stefania Atzori CEO Andrea Mazzanti CFO Luciano Giuseppe Lomonaco Chairman

A successful IPO

8 Stefania Atzori Chief Executive Officer of Sirio SpA commented: "The conclusion of this process, finally reaching Borsa Italiana on June 10, makes me very satisfied with the team work carried

• ut by the company and by all the consultants involved in the operation, to which I send a

heartfelt thank you for the efforts made. Moreover,” continues Stefania Atzori, “the IPO represents an important goal for SIRIO, but even more it represents the springboard for its future

• growth. Growth, which we will achieve through new openings of points of sale in the hospital

and airport sector, through the development of franchising chains, and which will undergo an important acceleration thanks to the use of proceeds deriving from the IPO”. Share N. Pre – IPO 2.400.000 Shares coming from the capital increase 1.052.631 Shares offered for sale 40.969 Shares Outstanding Post-IPO 3.452.631

Market Segment AIM Ticker SIO Market Cap (€Mln) 36.3 N° of share 3,452,631 Share price (€) September 26, 2019 10.5

5000 10000 15000 20000 25000 30000 35000 40000 8 8,5 9 9,5 10 10,5 11 11,5 10/06/2019 10/07/2019 10/08/2019 10/09/2019 Volumes Close

• 1. Sirio at a Glance
• 2. Market
• 3. Business Units
• 4. Financials
• 5. Strategy & Achievements

Aeroporto Cristoforo Colombo Genova

10

10

# Hospital Point of Sales (2017)

57 49 43 20 16 12 11 6 4 4 3 2 1

Hospital commercial catering players

Source: PWC Report – Commercial foodservice market in Italy – Oct 2018

Leadership in the Italian Hospital commercial catering

Autogrill CAMST CIR Food Dussmann Sodexo Elior Gemeaz / Elior Chef Express Serenissima La Cascina (Vivenda) MyChef Airest Euroristorazione Bauli Grill

• 20%
• 15%
• 10%
• 5%

0% 5% 10% 15% 20%

• 15%
• 10%
• 5%

0% 5% 10% 15% 20% Sirio Fabbro Punto Grill 40% 60% 80% 100% Hermes 65% 70% Average** CAGR Revenues +3.5% Average** CAGR EBITDA+1.5% €300M Turnover

Notes: (*) Elior Group; (**) weighted averages. Data not available for Sarni Source: PWC Report - Commercial foodservice market in Italy - Oct 2018

(2015-2017, %)

Competitive arena – Revenues and EBITDA growth

11

Sirio stands out from competition for an outstanding revenues growth and high marginality

CAGR EBITDA 2015-2017 CAGR Revenues 2015-2017

* * *

• 1. Sirio at a Glance
• 2. Market
• 3. Business Units
• 4. Financials
• 5. Strategy & Achievements

Policlinico Duilio Casula Cagliari

2 4 3 1 1 1 2 2016 2017 2018 H1 2019 Concessions renewed Tenders lost

8 12 13 5 1 3 2 3 7 5

2016 2017 2018 H1 2019 Tenders won Tenders lost Pending tenders

Hospital BU

Sirio is market leader in the Italian public hospital commercial catering business (by number of PoS), where it directly manages bars/eateries for employees, visitors and patients Sirio is strategically present in public hospitals Sirio offers a wide range of services, from snack bar with gastronomy and is also involved in the management of vending machines Signed framework agreement with Alice Pizza in July 2019 for the exclusive commercial development in the hospital channel 13

57 51 61

33.3 41.6 44.6 22,1 25,0

2016 2017 2018 1H 2018 1H 2019

Revenues in the Hospital business (€M)

CAGR 16-18 +15.8% 57 63

Hospitals tenders won and lost Hospital concession renewals

7

22

79%

• Avg. concession win

rate (2013-1H 2019)

15 9

76%

• Avg. concession renewal

rate (2013-1H 2019)

#PoS

13 5 5 3 1

The 3 Tenders lost in 2019 refer to 2018. Without them, the 2019 win rate would be 100%

Motorway and Airport BUs

14 10.1 10.5 10.7 5,0 5,2

2016 2017 2018 1H 2018 1H 2019

Revenues (€M)

CAGR 16-18 +2.6%

#PoS 9 10 7

3.0 3.4 3.7 1,7 2,0

2016 2017 2018 1H 2018 1H 2019

CAGR 16-18 +11.9%

#PoS 4 4 4

Sirio operates in motorway and road catering, handling the management of service and rest areas, with significant presence above all on the A22 Modena-Brennero motorway,

• ffering

an innovative parking concept that is expressed in attention to the customer, in the quality of the offer and of the products and in the concept of the point

• f sale.

Sirio, operates in airport through the brand "La Ghiotta", manages 4 PoS inside the Marconi airport

• f Bologna: a snack bar cafe in the Land Side area,

the other coffee bar with restaurant in the Extra- Schengen area. presidia) Motorway BU

7 7 4 4

Revenues (€M)

Airport BU

Fast Food and City BUs

15 3,6 3,7 3,7 1,6 3,1

2016 2017 2018 1H 2018 1H 2019

CAGR 16-18 +1.8%

3 3 3 2

Sirio was selected by Burger King Europe Gmbh (BKE) - a Swiss company based in Zurich - as a Partner, becoming a Franchisee, for the development of an ambitious plan to expand the "BK" system in Italy. The project started in 2012 and saw the inauguration, first in Jesolo Lido and

• Venice. In December 2018, the Company opened a

new Burger King store in Ravenna and in the first half of 2019 it opened a new restaurant in Ancona. In 2018 Sirio started its activity in the new business sector to develop quality catering in the city center. And

• btained the management of two historic restaurant in

the center of Imola: Opera Dulcis, and "Bacchilega" always in the center of Imola. Furthermore, in this business unit the first "Sirio Cafè" brand bars / corners have been launched adjacent to the Burger Kings managed by Sirio to expand the offer to customers. In 2019 Sirio started its business with the opening of the first Sushi Bar under the brand name Zako.

3 2

Revenues (€M)

#PoS #PoS

Fast Food BU

Revenues (€M)

City BU

4

0,2 0,8

1H 2018 1H 2019

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

0% 20% 40% 60% 80% 100% Revenues % # Concessions %

€27.6M Concession revenues 1H 2019

Top 10 concessions account for the 40.8% of concession revenues

80% of concession revenues is generated by 29 concessions

53 concessions 31,0% 47,1% 17,9% 4,0% Expire <2023 2023<Expire<2026 Expire >2026 Extended

Well balanced concession portfolio

16

Concessions portfolio analysis

% of revenues

Sirio has put together an attractive portfolio of concessions, well balanced by expiration date, by channel, and by

• size. Concessions revenues were €27.6M in 1H19 (or 75% of total revenues)

• 1. Sirio at a Glance
• 2. Market
• 3. Business Units
• 4. Financials
• 5. Strategy & Achievements

Zako Ancona

H1 2019 Highlights

18 Revenues

€36.7

(+20%) *

€ mln

EBITDA

€3.8

(+22%) EBITDA margin

10.4%

(+ 16 bps) Net Profit

€1.5

(+33%) Net Debt

€8.5

(+ €6 mln)

Revenues Distribution by BU

€36.7 M

Notes: (*) Figures in brackets refer to financial statements at June 30, 2018 for income statement data and financial statements at December 31, 2018 for balance sheet data The data reported have been adjusted excluding the impact of IFRS 16 Hospital 69% Fast Food 9% Motorway 14% Airport 5% City 2%

Income Statement

19 € 000 1H 2019 Ex IFRS 16 1H 2019 1H 2018 Revenues 36,372 36,372 30,227 Other revenues 369 369 373 Total revenues 36,742 36,742 30,600 Production (11,619) (11,619) (10,230) Personnel (9,680) (9,680) (7,155) Rents (8,224) (1,362) (7,581) Other operating costs (3,390) (3,390) (2,494) EBITDA 3,829 10,691 3,140 EBITDA margin 10.4% 29.1% 10.3% Depreciation & Amoritzation (1,763) (7,007) (1,477) EBIT 2,065 3,684 1,663 EBIT margin 5.6% 10.0% 5.4% Net Financial income (377) (2,545) (240) EBT 1,689 1,139 1,423 Taxes (236) (167) (330) Net Result 1,453 972 1,092 Net Result margin 4.0% 2.6% 3.6% Total Revenues amount to € 36.7 million (+20.1%) due essentially to the new openings made during the second half of the 2018 , at the M. Bufalini Hospital in Cesena (2 points of sale), the Santa Colomba Community Hospital in Savignano Sul Rubicone (FC), the Umberto Parini Regional Hospital and the Beauregard Hospital in Aosta; the entry into operation of the new Burger King in Ravenna, whose offer is completed by the adjacent "Sirio Café", and - at the opening of the new Burger King in Ancona during the first half of 2019 whose

• ffer is completed by the adjacent restaurant

Zako , - at the opening of the store at the Polyclinic Duilio Casula of Monserrato, and - at the opening of the store at the Santo Spirito Hospital in Pescara. EBITDA, € 3.8 million compared to € 3.1 million in the first half of 2018, shows a significant increase

• f

21.9%, thus the incidence on revenues (EBITDA margin), also improving, at 10.4% compared to 10.3% in the first half of 2018, both are the result of the increase in volumes, the consolidation of margins in the hospital sector and the improvement in income performance in the points of sale of the other Business Units (BU) The net profit closes at € 1.5 million compared to € 1.1 million at 30 June 2018, reporting an increase of 33.0%.

72 81

378 510

100 200 300 400 500 600 700 800 60 65 70 75 80

H1 2018 H1 2019 # PoS Average Revenue per PoS (€k)

20

Focus on revenues

Like-for-like * and new opening revenues

YoY %

+1.9%

26,2 26,7 4,5 10,1

1H 2018 1H 2019 Like for Like revenues New opening and renewed

30.6 36.7

7,9 8,8 € 3,63 € 3,77

3,0 3,2 3,4 3,6 3,8 5,0 5,5 6,0 6,5 7,0 7,5 8,0 8,5 9,0

H1 2018 H1 2019 Total transactions Average receipt

Total transactions and average receipt per PoS POS and average revenue per POS (*) Note: Like for like revenues refer to 65 PoS and exclude an additional 3 PoS which due to exogenous factors have decreased in turnover. These exogenous factors should be solved in the short term.

36,74 3,83 11,62 9,68 8,22 3,39 Total revenues Raw material costs Personnel costs Rents, royalties and concessions Other operating costs EBITDA

EBITDA and cost structure for H1 2019

21 EBITDA and Cost Structure (€M) 100% H1 2018 H1 2019 33.4% 23.4% 24.8% 8.1% 10.3%

Higher fixed costs absorption capacity and stronger negotiation power lead to top-of-the-class margins

100% 31.6% 26.3% 22.4% 9.2% 10.4%

Balance Sheet

22

4.8 4.2 15.2 13,0 4.2 5.4 (0.7) 4,5 2016 2017 2018 H1 2019

Non-current financial debt Current financial debt * € 000 30-06-2019 Ex IFRS 16 30-06-2019 31-12-2018 Fixed Assets 37,493 98,230 36,897 Working Capital (4,094) (4,094) (5,152) Invested Capital 33,399 94,136 31,745 Other non current assets and liabilities (7,430) (7,430) (8,977) Net Invested Capital 25,970 86,706 22,768 Shareholders' Equity (17,500) (16,950) (8,293) Medium - long term financial position (13,006) (61,450) (15,212) Short Term financial position 4,536 (8,305) 737 Net Financial Position (8,470) (69,756) (14,476) Total Sources (25,970) (86,706) (22,768)

Non-current assets amount to € 37.5 million compared to € 36.9 million at December 31, 2018. The net working capital is negative for € 4.1 million compared to the negative € 5.2 million at December 31, 2018. Net invested capital of € 26.0 million compared with € 22.8 million at 31 December 2018, is financed by:

• Shareholders' equity for € 17.5

million compared to € 8.3 million at December 31, 2018, the increase is essentially due to the IPO transaction concluded last June 2019

• Net financial debt of € 8.5 million

compared to € 14.5 million at 31 December 2018, essentially due to the IPO proceeds.

NFP bridge

23

(14,5) 3,8 (2,7) 0,4 (0,9) (2,6) 10,0 (2,1) (8,5) NFP 31-12- 2018 EBITDA

• Ch. TWC

Other net trade receivables Interest & Taxes CAPEX IPO Proceeds IPO Costs on Equity NFP 30-06- 2019

Net Financial Position Bridge (€M) Cash in Cash out

0,9 1,9 1,9 0,6 1,3 3,3 4,5 2,0 2016 2017 2018 H1 2019 Intangible Capex Tangible capex 6,3 6,3 4,3 4,8 2,5 3,0 3,1 6,8 (12,2) (14,7) (8,7) (10,3) 2016 2017 2018 H1 2019 Inventory Trade Receivables Trade Payables

Net working capital and capex analysis

24 Net trade working capital

(€M)(*)

Notes: (*) 2018 post carve-out, 2016 and 2017 ante carve-out

Post carve-out data

Optimal working capital due to moderate DSO and 60 days DPO on average

(1.3) (5.4) (3.4)

Investments

(€M)

2.2 6.4 5.2

Investments more than doubled as a consequence of business growth

1.3

2.6

• 1. Sirio at a Glance
• 2. Market
• 3. Business Units
• 4. Financials
• 5. Strategy & Achievements

Burger King Ancona

26

Strategy (1/2)

GOAL

Leadership consolidation in the Hospital Business

STRATEGY

# 110 tenders are expected in the next 2 years 2020-2021 Focused in Northern Italy Public hospital sector Innovative service model (“Smart Hospital”)

ACHIEVEMENTS

11 March 2019 – Won the concession at the Meyer University Hospital in Florence 28 March 2019 – Won the concession at the Livorno Hospital Company 22 July 2019 – Signed a framework agreement for the management of Alice Pizza at the San Camillo Forlanini Hospital in Rome 20 September 2019 – Won 2 concessions for 2 PoS at the Molinette Hospital in Turin

LEADERSHIP IN THE HOSPITAL BUSINESS

27

Strategy (2/2)

GOAL

Expansion in adjacent and already existing BU thanks to scalable model

STRATEGY

High traffic flow in main Italian railways, airports and city chains Cross Selling (i.e. opening of PoS with Burger King) Limited Capex Extended contract duration (> 12 yrs) with short payback period (< 4 yrs) Higher Marginality (IRR > 20%)

ACHIEVEMENTS

3 May 2019 – Won the concession at Genoa-Sestri International Airport “Cristoforo Colombo” 15 May 2019 – Presented Zako, the Group’s first Sushi Bar, in Ancona 14 June 2019 – Signed a 3-year framework agreement with Ciccolatitaliani for the opening of 5 PoS in Italy. Opened the 1° PoS in the Leone Shopping Center in the province of Brescia on September 19 23 September 2019 – Won the concession at the Naples-Capodichino International Airport

SCALABLE BUSINESS MODEL

28

Leadership in the Italian Hospital commercial catering

2

Investment Highlights

3

Scalable business model successfully exported into other segments

1

History of outstanding growth and resilience

4

High visibility on future revenues

5

Well balanced concession portfolio

6

Strong competitive positioning

29

Contacts

Follow us:

IR Alessandra Fazzioli investor@siriospa.it NOMAD ecm@mediolanum.it IR ADVISOR Silvia Di Rosa silvia.dirosa@cdr-communication.it Andrés Olivieri andres.olivieri@cdr-communication.it

Sede Legale e Amministrativa Via Filippo Re, 43-4548124 Fornace Zarattini Ravenna (RA) - Italy