For Investors

Profile

DHH is a publicly-traded technology group with shares listed on AIM Italia, a Multilateral Trading Facility regulated by Borsa Italiana and registered as a SME Growth Market.

DHH’s objective is to provide above average long-term capital appreciation for shareholders by growing both organically and through acquisitions in two primary business segments: Cloud computing and Web hosting in the emerging digital economies. Through ownership of DHH stock, investors are getting exposure to one of the most attractive growth markets today. To achieve this objective DHH is continuously investing in organic growth and at the same time proactively sourcing buy and hold investment opportunities with the best potential to create long-term shareholder value for its public market investors.

Presentation

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Fact sheet

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Equity research

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Value Creation

DHH creates value executing a sound M&A strategy, which aims at substantially increasing the intrinsic value of acquired companies in the very short term after the completion of the deal.

This strategy is based on the following pillars:

1) proposing a fair valuation for the acquisition, not over-paying the companies;

2) structuring a deal where the entrepreneurs have strong incentives to stay in the company after the acquisition with the goal of growing the main business KPIs: revenue, EBITDA, net profit, free cash flow;

3) cleaning-up the companies from the costs not connected to the core business, which are a constant in the world of SMEs;

4) implementing a control management system in companies, so to improve the budgeting and planning process, which is usually non-existent in the SMEs;

5) representing companies’ financials in the best possible way, communicating the meaning behind the numbers.

Thanks to this approach, in the last 3 years DHH invested 6M EUR in M&A deals and the portfolio companies are now worth more than 10M EUR.

DHH: HISTORICAL ACQUISITION TRANSACTIONS AND VALUE CREATION

DEAL DATE COMPANY COUNTRY TRANSACTION VALUE (€'000) KEY FINANCIALS (€'000) IMPLIED MULTIPLE
NET SALES EBITDA EV/SALES EV/EBITDA
Oct-15 Domenca Slovenia 1,824.6 589.0 45.0 1.5x 14.4x
Oct-15 Domovanje Slovenia 633.0 82.0
Nov-15 Plus Hosting Croatia / Serbia 1,351.9 1,000.0 202.0 1.4x 6.7x
Dec-15 Tophost Italy 1,232.9 1,200.0 128.0 1.0x 9.6x
Sep-16 Infonet Croatia 466.7 352.0 126.1 1.3x 3.7x
Mar-17 Studio4web Croatia 280.0 179.0 n.a. 1.6x n.a.
Jun-17 Bee Web Switzerland / Italy 593.0 1,000.0 n.a. 0.6x n.a.
Oct-18 mCloud Serbia ca. 315 ca. 350 n.a. 0.9x n.a.
Total cash out for acquisitions 6,063 (*) o/w goodwill ca. 5,751 (*)
DCF based Enterprise Value 10,354  
Value creation in three years 4,291  

Source: Value Track Analysis
(*) Post mCloud acquisition (hp. 100% stake)

DHH Stock

Information for Shareholders

Details

Ticker: DHH
ISIN Codes 1: IT0005203622 (ordinary shares)
ISIN Codes 2: IT0005203663 (ordinary shares with bonus shares)
ISIN Codes 3: IT0005203689 (warrants)
Market: AIM Italia/MAC
SDIR: eMarket SDIR managed by Spafid Connect S.p.A.

Advisors

Nomad: Advance SIM S.p.A.
Specialist: CFO SIM S.p.A.
Auditor: BDO Italia S.p.A.

Financial Performance

Highlights

– Double-digit growth in sales
– Robust cash flow generation and strong net financial position with zero non-current financial debt
– Growing in cash availability despite the investments
– Diversified product portfolio thanks to the addition of cloud computing and managed infrastructure businesses

CONSOLIDATED INCOME STATEMENT CONSOLIDATED CONSOLIDATED
(ALL AMOUNTS ARE IN EURO) 31.12.2018 31.12.2016 (IPO)
NET SALES 5.969.739 3.947.870
GROSS MARGIN 2.679.303 1.461.224
EBITDA 534.059 355.610
EARNINGS BEFORE TAXES 153.195 219.683
NET RESULT 101.388 155.222
NET FINANCIAL POSITION (2.604.474) (3.184.684)
CONSOLIDATED PRO-FORMA INCOME STATEMENT PRO-FORMA* CONSOLIDATED
(ALL AMOUNTS ARE IN EURO) 31.12.2018 31.12.2018
OPERATING REVENUES 6.212.095 6.306.941
OPERATING INCOME – EBITDA 840.771 534.059
EBIT 50.295 7.669
EARNINGS BEFORE TAXES 55.212 12.453
NET INCOME (LOSS) FOR THE YEAR 42.008 9.881

* The consolidated pro forma is not audited by the audit firm but it has been checked only the mathematics accuracy.

Largest shareholders

  NUMBER OF SHARES % SOCIAL CAPITAL
Seeweb Holding S.r.l.* 360.000 25,352%
Giandomenico Sica 200.000 14,085%
Martin Romih 108.350 7,630%
Matija Jekovec 108.350 7,630%
Matjaž Jazbec 108.350 7,630%
Uroš Čimžar 108.350 7,630%
Tomaž Koštial 6.600 0,465%
Market 420.000 29,577%
TOTAL 1.420.000 100,0%
  *The owners of Seeweb Holding Srl are Antonio Domenico Baldassarra (50,67%) and Enrico Vona (49,33%).

Analyst coverage

COMPANY

ValueTrack

ANALYST

Marco Greco
+39 02 8088 6654
marco.greco@value-track.com

Pietro Nargi
pietro.nargi@value-track.com

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