(AGENPARL) – lun 19 giugno 2023 ITWAY S.P.A.
Information technology
On ITs WAY to Higher Profit Business
ADD| Fair Value: €2.01| Current Price: €1.27| Upside: +58.1%
€ Million
Total Revenues
EBITDA
margin
Net Profi t
margin
Initiation of Coverage
FY20A
FY21A
FY22A
(0.4)
FY23E
FY24E
FY25E
FY26E
11.5%
(0.3)
-0.9%
(1.3)
(1.5)
(2.7)
(5.1)
(8.7)
June 19th, 2023 – 7.00h
Source: Company Data (2020-2022), KT&Partners’ Elaboration (2023-2026)
Overview. Itway SpA is an ICT company active in the design, production, and distribution of
solutions focused on Cybersecurity, AI, and Big Data. The Company, headquartered in Milan
(Italy), was founded in 1996 by Mr. Andrea G. Farina, who is the current Chairman and CEO.
Since its foundation, Itway preserved its long-standing competitive advantage given its
constantly in-house development of revolutionary technologies with no similarities. Itway
operates through 4 Business Units: i) Cybersecurity solutions for the privacy, IT infrastructure,
and integration systems via a N-SOC in Trento managed by Be Innova Srl; ii) Data Science
solutions for digital libraries managed through 4Science SpA; iii) Cybersafety solutions; and iv)
Value Adde Distribution (VAD) & Design Support (DS) through Itway Greece and Itway Turkey.
Equity Research Team
Maria Teresa DI GRADO
Market overview. In Italy, according to Anitec-Assinfom (Confindustria), the cybersecurity
industry is expected to reach €2.5bn in 2025, driven also by the NRRP’s funds pledged for the
country’s digitalization, with an expected CAGR21-25E of 13.9%. Looking at big-data Italian
market, in 2022 it showed a growth of +20% YoY reaching a value of over €2.4bn in 2022,
marking a clear recovery after the slowdown due to the pandemic, with a CAGR 2020-2022 of
15.5%. Whereas the Cyber Safety market is expected to be characterized by an increasing
demand in the coming years, given the preventive measure adopted to avoid the raising
number of incidents in the workplace.
Group historical figures. Over the last 5 years, Itway has been characterized by a constant and
uninterrupted sales growth, reporting a CAGR18–22 of +9%, reaching its total-revenues record
of €46.7mn (+7% YoY) in 2022, mainly thanks to Itway’s business expansion and constant
development investments. Looking at EBITDA, in FY22A the Company registered €2.2mn,
decreasing by 16% YoY mainly due to an extraordinary provision for the write-down of
receivables of €1.6mn. Therefore, the Company showed a decrease also in terms of margins,
with FY22 EBITDA margin at -1.3pp YoY standing at 4.7%. Finally, Itway registered a net financial
position that improved to -€1.3mn (from -€0.3mn in FY21), also given the capital increase of
the subsidiary 4Science for €2.8mn.
Future estimates. We anticipate total revenues growing at a CAGR22A-26E of 5.5%, reaching
€57.5mn in FY26E from €49.1mn in FY23E, mainly driven by i) the development of new solutions
offered and ii) the consolidation of its already-strong international presence. Focusing on
profitability, we foresee FY23E EBITDA at €2.1mn (€2.2mn in FY22A), with a marginality at 4.3%
(vs 4.7% in FY22) mainly impacted by an increase in personnel expenses (€3.9mn in FY23 vs
€3.4mn in FY22) to strengthen the management structure. Starting from FY24E, we expect an
improving marginality, primarily driven by an ongoing transition in the Company’s revenue mix,
reducing the share of the VAD & PS business unit’s revenues to higher-profit segments (e.g.
DataScience). Thus, we foresee the EBITDA 2026E at €6.6mn with a margin of at 11.5%. Looking
at Itway’s financial soundness, we expect NFP to enhance from -€1.3mn in FY22A to -€1.5mn in
FY23E, progressively improving in the following years to a cash position of -€8.7mn in FY26E,
confirming Itway cash-flow generation ability.
Valuation. Our valuation – based on both market multiples method (EV/EBITDA and P/E)
and DCF – returns an average equity value of €21.4mn or a fair value of €2.01ps, showing
a potential upside of +58.1% on current market price.
Performance Chart – YTD
Gianluca GENGO
Market Data
Main Shareholders
Giovanni Andrea Farina & Co. S.r.l.
Cesare Valenti
Sky – Netics SA
Mkt Cap (€ mn)
EV (€ mn)
Shares out.
Free Float
30.0%
9.54%
6.23%
54.2%
Market multiples
EV/EBITDA
It Way
Comps Median
It Way vs Median
It Way
Comps Median
It Way vs Median
15.6x
16.5x
13.6x
13.7x
Stock Data
52 Wk High (€)
52 Wk Low (€)
Avg. Daily Trading 90d
Price Change 1w (%)
Price Change 1m (%)
Price Change YTD (%)
12,143
-0.93
-21.55
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
Key Figures – ITWAY S.p.A.
Current price (€)
Fair Value (€)
Per Share Data
Sector
Free Float (%)
Information Technology
54.23%
2020A
2021A
2022A
2023E
2024E
2025E
2026E
Total shares outstanding (mn)
Dividend per share (ord)
Dividend pay out ratio (%)
10.61
10.61
10.61
-0.03
10.61
10.61
10.61
10.61
Profit and Loss (EUR million)
2020A
2021A
2022A
2023E
2024E
2025E
2026E
(0.3)
(0.5)
(0.8)
(1.1)
Total Revenues
EBITDA
Taxes
Tax rate
Net Income
Net Income attributable to the Group
(0.0)
2.0 (0.7)
Balance Sheet (EUR million)
2020A
2021A
2022A
2023E
2024E
2025E
2026E
Total fixed assets
Net Working Capital (NWC)
Provisions
Total Net capital employed
Net financial position/(Cash)
Total Shareholder’s Equity
(0.5)
(0.9)
(0.3)
(0.8)
(1.3)
(1.1)
(1.5)
(1.4)
(2.7)
(1.7)
(5.1)
(2.0)
(8.7)
2020A
2021A
2022A
2023E
2024E
2025E
2026E
Net operating cash flow
Change in NWC
Capital expenditure
Other cash items/Uses of funds
Free cash flow
(0.4)
(1.0)
(1.3)
(1.6)
(0.1)
(0.8)
(0.9)
(1.1)
(0.9)
(1.1)
(0.9)
(1.1)
(1.0)
(1.1)
Enterprise Value (EUR million)
2020A
2021A
2022A
2023E
2024E
2025E
2026E
(0.4)
(0.4)
(0.3)
(1.3)
(1.5)
(2.7)
(5.1)
(8.7)
Ratios (%)
2020A
2021A
2022A
2023E
2024E
2025E
2026E
EBITDA margin
EBIT margin
Gearing – Debt/equity
Interest cover on EBIT
NFP/EBITDA
EV/Sales
EV/EBITDA
Free cash flow yield
14.9%
13.1%
0.68x
14.1%
13.3%
0.35x
6.65x
11.07x
18.9%
-3.0%
-2.3%
-0.12x
20.1%
12.5%
0.31x
5.16x
10.38x
12.9%
-10.7%
123.4%
-0.60x
12.8%
-3.3%
0.29x
6.12x
-33.56x
-5.7%
-11.0%
-0.69x
0.27x
6.37x
15.59x
-18.1%
-0.78x
16.7%
10.7%
0.26x
3.88x
8.49x
-29.4%
-1.02x
25.1%
14.1%
0.25x
2.71x
5.57x
18.3%
11.5%
-42.2%
-1.31x
35.4%
16.4%
0.23x
2.02x
3.99x
27.7%
Growth Rates (%)
2020A
2021A
2022A
2023E
2024E
2025E
2026E
Sales
EBITDA
Net Income
-39.8%
-46.8%
-40.0%
12.6%
28.9%
35.8%
-15.8%
-21.3%
-3.8%
-18.8%
64.2%
77.1%
83.7%
43.3%
50.2%
52.5%
33.6%
38.4%
39.6%
Cash Flow (EUR million)
Market Cap
Minorities
Net financial position/(Cash)
Enterprise value
Source: Company Data (2020-2022), KT&Partners’ Forecasts (2023-2026)
June 19, 2023 ? 2
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
Content
Key Charts
Investment Case
Company Overview
ITWAY
Group’s History
Ownership and Group Structure
Business Model
Market Overview
Global Cybersecurity Market
Cybersafety Market
Big Data Market
Competitive Arena
Historical Financials
Revenues Breakdown
Profitability Analysis
Capital Structure Analysis
1Q23 Financials Results
Group’s Strategy
Deconstructing Forecasts
Valuation
Market Multiples Valuation
DCF Valuation
DISCLAIMER
June 19, 2023 ? 3
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
Key Charts
Total Revenues (€mn)
EBITDA and Net Income (€mn, %)
Sales Revenues Breakdown by Geographical Area (€mn)
Sales Revenues Breakdown by BU(€mn)
Trade Working Capital (€mn, %)
NFP, Change in Shareholders’ Equity and NFP/EBITDA (€mn)
June 19, 2023 ? 4
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
Investment Case
A long-established company that keeps up with the times…. Itway SpA was founded more
than 25 years ago with a focus on Value-Added Distribution of technology and e-business
solutions. However, the Group, thanks to its disruptive business model, has always
demonstrated its capacity to adapt at the constant changes of the technology market, seizing
new opportunities, penetrating new markets both geographically and industrially.
…with a strong international presence… Itway boasts a consolidated presence in foreign
market, especially in Turkey and Greece, where it is present with its subsidiaries Itway Hellas
SA and Itway Turkyie ltd. These two markets together counted for the 87% of Group revenues
as Itway is leader in high-quality security services in Greece and Turkey. Moreover, the Group
is also present in USA with 4Science USA Corp and in France with the subsidiary Itway France.
…in an innovative and fast-growing market… According to Statista, the global cybersecurity
industry was worth $148bn in 2022, with the security services segment accounting for the
largest revenue share. The cybersecurity industry is expected to report a CAGR21-28E of
+9.3%, reaching $257bn by 2028, mainly driven by the increasing number of cyberattacks.
Whereas in Italy, according to Anitec-Assinfom (Confindustria), the cybersecurity industry is
expected to reach €2.5bn in 2025, driven also by the NRRP’s funds pledged for the country’s
digitalization, with an expected CAGR21-25E of 13.9%. The big data Italian market in 2022
showed a growth of +20% YoY, reaching a value of over €2.4bn in 2022, marking a clear
recovery after the slowdown due to the pandemic, with a CAGR 2020-2022 of 15.5%. Finally,
the Cyber Safety Market is expected to be characterized by an increasing demand, in the
coming years, given the preventive measure adopted to avoid the rising number of incidents
in the workplace.
…keeping strengthening its high skilled management structure… Itway can rely on a top
management with proven experiences in the ICT sector. Over the years, the Company has
pursued a strategy aiming to strengthen the management structure with high technical skills
resources. Indeed, two strategic executives joined the group in December 2022: Mr. Massimo
Fanelli, as Itway Deputy General Manager, well known in the Italian ICT market and with deep
knowledge of the Cyber segment, and Mr. Angelo Salice, an expert in the Cyber Security
market who joined to lead, as Director, the Cyber Security & Infrastructure Business Unit.
…to preserve its growth path. Over the last 5 years, Itway has been characterized by a
constant and uninterrupted sales growth. During the following the COVID-19 outbreak in
2020, the Group the group showed its strong resilience, reporting a CAGR18–22 of +9%,
reaching its total revenues record at €46.7mn (+7% YoY) in 2022, mainly thanks to ITWAY’s
business expansion and constant development investments. For the following years, Itway’s
goal is to keep expanding and consolidating its business, strongly focusing on i) widening its
service offer, ii) consolidating its already-strong international presence; iii) developing new
technologies; and iv) strengthening its management structure.
Statement of risks. From a geographical point of view, the Group is exposed to financial risks
resulting from the global economic situation. However, the Company has no exposure to the
Russian, Belarusian, or Ukrainian markets and does not deal in technologies and services from
these markets. On the other hand, considering that Itway is active in the technological
Industry, an ever-evolving market dominated by large market players, the Group has to
maintain its competitive position by offering the best technology solutions through the
launch of new service and products.
June 19, 2023 ? 5
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
Company Overview
ITWAY
Itway SpA is an Information and Communication Technologies company active in the design,
production, and distribution of solutions focused on Cybersecurity, Artificial Intelligence, and
Big Data. The Company, headquartered in Milan (Italy), was founded in 1996 by Mr. Andrea
G. Farina, who is the current Chairman and CEO.
Since its foundation, Itway preserved its long-standing competitive advantage given its
constantly in-house development of revolutionary technologies with no similarities.
Itway operates through 4 Business Units: i) Cybersecurity solutions for the privacy, IT
infrastructures, and integration systems via a N-SOC in Trento managed by Be Innova Srl; ii)
Data Science solutions for digital libraries managed through 4Science SpA (listed on Vienna
Stock Exchange); iii) Cybersafety solutions for material handling vehicles; iv) Value Added
Distribution (VAD) & Design Support (DS) through the subsidiaries Itway VAD Greece and
Itway VAD Turkey. Given the holding company’s key role to coordinate the different business
unit, the Group boast a well-organized structure with a fast-decision-making business model.
Over the last 5 years, Itway has been characterized by a constant and uninterrupted sales
growth. During and following the COVID-19 outbreak in 2020, the Group the group showed
its strong resilience by reporting a CAGR18–22 of +9%, reaching its total revenues record at
€46.7mn (+7% YoY) in 2022, mainly thanks to ITWAY’s business expansion and constantly
development investments.
ITWAY’s Total Revenues 2018-2022 (€mn)
Source: KT&Partners’ Elaboration on Company Data
June 19, 2023 ? 6
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
Group’s History
1996: Itway was founded by
Mr. Andrea G. Farina
Itway SpA was founded in 1996 in Ravenna (Italy) by Giovanni Andrea Farina, current
Chairman and CEO. Since its founding, the Company has been active as Value-Added
Distributor (VAD) of technology and e-business solutions. However, over the course of the
years, the Company has developed a growth strategy, based on: i) new markets penetration
and ii) acquisition of value-added distribution activities.
1998-2000: acquisition of
Stone Technology and the
distribution business unit
from Stemasoft; constitution
of Secureway
During the 1998-2000 period, Itway started its consolidation process through: i) the
acquisition of Stone Technology Provider (business unit of Speed Technologie Srl) a company
specialized in the IT sector as distribution contracts; ii) the constitution of Secureway Srl, thus
entering the market of systems security consulting and services for end-users; iii) the
acquisition of the hardware and software value-added distribution business unit and brand
from Stemasoft.
2001: Itway listing on Borsa
Italiana SpA
2003: constitution of Itway
France and Itway Iberica
2005: acquisition of VAD
software from Softway SA
and the acquisition of
Interaxon SA
2008: constitution of Itway
Turkey
2013: foundation of Nebula Srl
2015: acquisition of 17.1%
stake in Itway MENA
2016: foundation of 4science
2017: sale of Business-e to
Maticmind for €12.3mn
2019: launch of cybersafety
business unit and ICOY
development
2021: Dspace-CRIS 7 release
In July 2001, with the aim to find new resources to further boost its growth, the Company
was listed on Borsa Italiana SpA.
Since the IPO, the Group accelerated its internationalization process by opening new
branches with the aim to i) explore new geographies characterized by high-growth-potential
markets and ii) expand its already existing presence to become a key player in Southern
Europe. Indeed, in 2003, the Company founded two subsidiaries: i) Itway France and ii) Itway
Iberica.
In 2005, the Group continue to strengthen its presence in Europe and in the VAD sector
through: i) the acquisition by Itway France of the business unit active in value-added software
distribution from Softway SA and ii) the acquisition of Greek company Interaxon SA.
In 2008, to strengthen its presence in the Cybersecurity market and explore new countries,
the Company entered the Turkish market with Itway Turkey.
In 2013, the Group founded Nebula Srl, a Company specialized in providing Cloud services. In
the same year, Business-e Trentino becomes the current Be Innova, specialized in security
and data protection in the e-health industry.
In 2015, Itway bought a 17.1% stake of Itway MENA (Middle east and North Africa) with the
aim to further expand its business all over the world, in particular into the Middle East and
North Africa markets.
In 2016, Itway founded the scale-up 4science, specialized in i) Data Management Systems for
administration’s activities, ii) preservation and security of digital repositories for the market
of scientific research, universities, and cultural heritage, such as libraries, museums, and
galleries.
In 2017, the entire stake held in Business-e was sold for €12.3mn to Maticmind SpA, active in
the ICT sector. However, with the aim to develop new synergies, the two companies reached
the commercial agreement to jointly develop activities carried out by the Itway Group in the
fields of Cloud Computing, Internet of Things and Big Data and in international development.
In 2019, the group launched the Cybersafety business unit and the Artificial Intelligenceproduct line dedicated the Environment, Health & Safety market (EH&S). Over the years of
activity, Itway developed two innovative and proprietary devices i) ICOY MOVER Forklift and
ii) ICOY MOVER Crane to reduce risks of accidents in the workplace.
In 2021, Itway, through its subsidiary 4Science, released DSpace-CRIS 7, the powerful
software platform dedicated to research institutes, universities, and the scientific community.
This opens up a much larger national and international market for 4Science based on i) upselling to existing customers; and ii) reaching new sophisticated customers. Given 4Science’s
strong growth path, the Company has decided to strategically open a new office in the US in
order to closely follow up on existing customers and develop new opportunities.
June 19, 2023 ? 7
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
2021: new strategic agreement
with Seac
In October 2021, Seac acquire a 50% stake in Be Innova. The Company provides cybersecurity
and network monitoring services through its NOC-SOC-Network Security Operation Center
located in Trento, a team that ensures the security of Internet networks. The new strategic
alliance between Itway and Seac (a company specialized in cybersecurity solutions)
significantly strengthens Be Innova offering, creating an Italian centre of excellence in IT
security.
2022: Top management
strengthening
During 2022, with the aim to strengthen the management structure, Itway announced the
entry of two professional figures with more than 20 years’ experience in the Information
Technology and cybersecurity sectors: i) Massimo Fanelli as Itway deputy general manager;
and ii) Angelo Salice as director of the Cyber Security Business Unit.
2022: 4science listing on Vienna
Stock Exchange
In December 2022, to further boost its growth path, 4Science SpA was listed on the Vienna
Stock Exchange. The listing follows a broader and more articulated capital and financial
strengthening with a total funding of €5.8mn, of which €3mn was through a loan with Banca
Progetto with a repayment of 5 years and €2.8mn through capital raised.
2023: sale of the remaining 50%
of Be Innova
On February 2023, Itway sold the remaining 50% stake in Be Innova to Seac at a 12x multiple
on revenues, maintaining the technical and commercial partnership agreement with Itway
for the resale of services NOC/SOC in white label Itway SOC. The following divestment is a
result of Itway’s strategy to act as an incubator of strategic assets of which the Company is
the pioneer.
Key Milestones
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ITWAY SPA
Price: €1.27 | Fair Value: €2.01
Ownership and Group Structure
Itway is a public company listed on the Euronext Growth Market of Borsa Italiana Stock
Exchange since 2001. As of Today, Andrea G. Farina, Founder and CEO of the Company, owns
30% of the outstanding shares, Cesare Valenti hold the 9.54%, while Sky-Netics SA owns
6.23%. The remaining 54.23% is held by the market.
ITWAY Shareholders Structure
Source: KT&Partners’ Elaborations on Company Data
Looking at the Group structure, as of today Itway is organized as follows:
Itway SpA: Itway SpA is the holding company that coordinates the different business
units. It is specialized in consulting, design, and system integration in the field of
cyber security, in particular on GDPR, and occupational safety related to
Environment and Health & Safety segment.
4science: 4science, listed on Vienna Stock Exchange is an innovative SME specialized
in Data Science, Data Management and Data Repository for Scientific Research,
Cultural Heritage, and Big Data markets. 4science was founded in 2016 by Itway SpA
and is currently controlled by the latter with a 71.43% stake in the share capital,
whereas the remaining 28.57% is free float. The Company is headquarters in Milan
with offices in Ravenna and Rome and operates with a team of over 30 resources.
Moreover, over the years Itway has progressively increased its international presence through
the opening of new branches in different countries with the aim of capturing new
international customers and to be closer to them.
June 19, 2023 ? 9
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
ITWAY Group Structure
Source: KT&Partners’ Elaborations on Company Data
Management Team
Andrea G. Farina – Itway Chairman & CEO
Mr. Andrea G. Farina is Chairman & CEO of Itway S.p.A., covering also top positions in
Confindustria (Italian Association of manufacturing and service companies). He holds a
diploma in Computer Science from the Istituto Tecnico Industriale Girolamo & M. Montani in
Fermo (AP) and a degree in Business Administration with an MBA from the Anderson School
– Institute of Economics and Finance of the University of California Los Angeles (UCLA), with
honors.
Cesare Valenti – Executive Deputy Itway Chairman and 4Science Managing Director
Mr. Cesare Valenti is the Executive Deputy Chairman of Itway S.p.A. Responsible for Strategic
Marketing and Operations and 4Science Managing Director. Previously he was the Director
of Business-e S.p.A. and Inebula S.r.l. He is member of different steering committees of the
Assinfom association. Previously he was member of BoD of Confindustria Romagna and
President of the ICT Commission of Confindustria Romagna. He graduated cum laude in
Electronic Engineering at the Alma Mater in Bologna.
Massimo Grosso – 4science Member of the Board of Directors
Mr. Massimo Grosso is a Member of The Board of Directors in 4science. He has profound
experience as an investor and advisor for high-tech companies. Indeed, Massimo Grosso, was
the strategic advisor for the IPOs of MailUp, DHH, Piteco, Cyberoo, WIIT, Zaim Credit System
and Creactives whom is the also Investor Relation. In the past, he was the Vice-President at
Société Générale, Director at UBS Italia, and Relationship Manager at Borsa Italiana. He
Graduated (1st class honors) in Financial Engineering from Milan Polytechnic.
June 19, 2023 ? 10
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
Massimo Fanelli – Deputy General Manager of Itway
Massimo Fanelli is the deputy general manager of Itway Group. With a degree in economics
and business administration, Massimo Fanelli has a more than 20-year track record as a
manager and top manager in the Information Technology and Cybersecurity sectors. He has
held technical, sales, executive, and project management positions in his career at major
Italian and multinational companies, dealing with the start-up of a cybersecurity division at a
major multinational group.
Angelo Salice – Cyber Security Business Unit Director of Itway
Angelo Salice is the Director of the Cyber Security Business Unit. Angelo Salice is a well-known
figure in the field of Cyber Security with more than 20 years of experience in Information
Security, Risk Management, and Compliance. He has worked in several corporate and
multinational companies, including Symantec, with roles of increasing responsibility,
managing strategic projects at major national and international Clients.
Roberto Castelli – Strategic Consultant of Itway
Roberto Castelli is the strategic consultant for Itway. Roberto Castelli has gained his 20 years
of experience in several Italian companies and international vendors. Former founder of
BCloud with a consolidated client portfolio, in Itway he oversees business development of the
Cybersecurity & Infrastructure Business Unit as an expert in disaster recovery, datacenter,
storage, and resilience. Roberto Castelli’s role is to identify new vendors, technology partners,
and expand to new business areas and sales channels.
Susanna Mornati – Chief Operating Officer of 4Science
Susanna Mornati is the chief operating officer of 4Science. Her consolidated experience,
gained as head of several business units for the design and implementation of research
information systems, in Italy and abroad, ensures the success of projects of high
organizational complexity. Her extensive skills both in the research domain and as a business
technologist ensure the most effective understanding and solution of client problems.
Susanna has earned a national and international reputation within the Open Access and Open
Science related communities. In previous years she held positions of high responsibility in the
inter-university ICT consortia Cilea and Cineca, and at the State University of Milan as director
of the Physics Library. He worked for two years at the Scientific Information Service of CERN
in Geneva. After graduation, she earned a master’s degree in ICT Management.
Andrea Bollini – Chief Technology and Innovation Officer of 4science
Andrea Bollini is the Chief Technology and Innovation Officer (CTIO), actively involved in
several international open-source and open-standards communities with leading roles:
DSpace committer, Deputy Leader of the CERIF TG of euroCRIS and member of the COAR Next
Generation Repositories WG, chair, speaker and reviewer for several key conferences. Prior
to 4Science Andrea worked for the Italian University Consortia Cilea and Cineca, where he
was responsible for IT solutions and projects for research, electronic publishing, and OA
archives. He holds a master’s degree in applied mathematics and a master’s degree in ICT
management.
Emilia Groppo – Team Leader of Digital Humanities of 4Science.
Emilia Groppo is Team Leader of the Digital Humanities sector for 4Science. Adjunct professor
at the Department of Cultural Heritage, University of Bologna – Ravenna Campus and at the
Department of Cultural Heritage Sciences, University of Milan, she specializes in Archaeology
and Art History. She has been team leader and project manager in the Cultural Heritage sector
in the inter-university consortia for ICT Cilea and Cineca, where she coordinated numerous
national projects, including some of the largest Digital Libraries in Italy. During her now
decades of professional experience, she was for many years responsible for the SBN pole of
June 19, 2023 ? 11
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
all the universities in Lombardy and responsible for the computerization of many Italian
libraries and historical archives.
June 19, 2023 ? 12
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
Business Model
Itway thanks the know-how reached in more than 25 years of activities and the constant
development of in-house revolutionary technology, for maintaining its competitive
advantage over the years. The Company offers a wide range of innovative solutions in the
cybersecurity, work safety, and data analytics markets, characterized by strong growth trend.
More in details, Itway’s business model is mainly divided two main activities: i) the valueadded distribution of “best-of-breed” technologies (the best of those available, at any given
time, on the market); ii) the provision of systems integration services within the ITC sector,
which includes Cyber Security, Cyber Safety, and Data Science business units.
Value Added Distribution
The Value-Added Distribution (VAD) business unit, which accounts for the largest share of
Itway revenues (87% in FY22), is coordinated by the holding company Itway SpA. More in
detail, through the subsidiaries, Itway Hellas SA and Itway Türkiye Ltd., the Group distributes
a large number of world-leading IT vendors’ products bringing to the market a high level of
expertise and solutions for large, medium, and small companies in public and private sectors
through a widely developed channel of partners.
Therefore, the VAD business unit operates mainly in the Greece and Turkey markets. Itway
decided to focus on markets that assure the Company high margins and a continued
expansion. In this sense, Greece and Turkey represent countries where the cybersecurity
segment is developing and Itway is able to position itself as a leader due to its consolidated
experience, delivering high-quality security services.
On the contrary, the Group reduced VAD activity in low-margin European countries (Italy and
Spain) to be focused on higher marginal innovative solutions.
The VAD business model generally is based on commercial distribution contracts having an
annual term with tacit renewal. The lead times for the fulfilment of individual orders are
generally short term and, in any case, not exceeding 30 days.
To provide a comprehensive and quality service to the customers, the Group combines the
distribution of software and hardware products with value-added services, such as
certification services on distributed software, pre/post-sales support services, and training
for end users. Indeed, Itway VAD includes Itway Services activities, which are supplied by two
specialized units: i) Itway Academy that provides product upgrading also enabling technical
certifications; and ii) Itway Professional Services that provides professional services to
resellers.
Itway distributes its VAD products to System Integrators, Value Added Resellers (VAR) and
Telcos with a presence in markets characterized by high growth potential.
The product offering of the Value-Added Distribution includes the following main lines of
business: i) Algosec, ii) Arcsight, iii) Check Point, iv) Cyberark, v) Imperva, vi) McAfee, vii)
Microfocus, viii) Red Hat, ix) Rapid7, and ix) Solarwind.
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VAD main products distributed
Source: KT&Partners’ Elaborations on Company Data
System Integration & Services
Within the System and Integration Services, Itway operates through three strategic business
units: Data Science, Cyber Safety, and Cyber Security. This business segment includes the
start-up and scale-up activities that assure the Company double-digit growth in terms of
revenues and margins.
Data Science
The business unit Data Science is managed by 4Science SpA, the Itway scale-up specialized in
i) Big Data management of Digital Libraries for Cultural Heritage and ii) Big Data management
of Digital Repositories for Research in the scientific field.
4Science’s solutions are based on the Dspace repository, the most widely used database
worldwide with more than 2,500 installations, constantly integrated by a large international
scientific community.
Therefore, 4Science helps in installing, customizing, updating, and enriching the repository
with advanced IT services with the aim to collect and organize cultural heritage, digital
resources, and research data.
The platform consists of a series of web applications to manage digital materials (e.g., text,
images, audio, datasets) integrating with several functionalities such as i) upload; ii) export;
iii) digital curation and preservation; and iv) search.
More in detail, 4Science activity is supported by the two platforms owned by DSpace: i)
DSpace-CRIS and ii) DSpace-GLAM.
DSpace-CRIS is the first free open-source platform for research data and information
management ever developed. DSpace-CRIS extends Dspace functionality and data model to
collect, manage, store, and scatter research data and information, relying on its large
community. DSpace-CRIS complies with many international standards (such as CERIF, ORCID,
and OpenAIRE Guidelines) to facilitate information exchange and data transfer.
DSpace-GLAM is the solution that 4Science provides for the implementation of projects
dedicated to the creation and management of digital libraries. DSpace-GLAM offers: i)
preservation and protection of digital content; ii) a specialized disciplinary approach to the
management of descriptive metadata: collections, collections and fonds are managed in full
compliance with scope standards (ICCU, ICCD, ICAR); iii) the opportunity to enhance heritages
through full compatibility with the IIIF ecosystem. In the newly released version, DSpaceGLAM, enhances the possibilities of creating thematic routes, tourist itineraries, and digital
exhibitions.
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Cyber Safety
Itway also operates in the Environment, Health & Safety market and specializes in innovative
work safety tools. In particular, the Company developed two innovative and proprietary
devices to save human lives and reduce risks of accidents: i) ICOY MOVER Forklift®; ii) ICOY
MOVER Crane®. Each is fully compliant to industry 4.0 requirements and ready to be
marketed through direct sale and partnerships.
ICOY MOVER FORKLIFT®, with the help of two or more cameras and a powerful algorithm
based on Artificial Intelligence, immediately signals the presence of people in a predefined
danger area in the vicinity of the forklift truck, remedying the fact that the driver’s visibility is
often limited, either by the structure of the forklift truck itself or by objects on the ground. If
a person crosses the security perimeter, the display related to the camera that detected the
person lights up red and an audible alarm sound in the cabin. The device applies various
people Detection & Tracking systems, using Deep Learning algorithms based on convolutional
neural network systems.
ICOY MOVER Crane®, through two cameras placed on the overhead crane carriage, frames
the area below, producing a stereoscopic image of both sides of the hook. Then, a powerful
graphics processor processes the images using Deep Learning algorithms based on
convolutional neural network systems. If an operator operates within the danger area, an
alarm is generated, both visual (flashing) and audible (siren), and this produces an immediate
benefit to company safety.
Regarding the Cyber Safety business unit, Itway has no competitors in the market and can be
considered as a prime mover.
Cyber Safety main clients
Source: KT&Partners’ Elaborations on Company Data
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Cyber Security
The Cyber Security Business Unit offers services and solutions in the Cyber Resiliency field
(applicable across all sectors and clients) with the aim of helping Customers to i) identify the
risks applicable to their company and prioritize them correctly (“Risk Management
Approach”) ii) identify and implement the best solutions to prevent and manage security
threats, and iii) guarantee the recovery of “Business as usual” even in case of attacks or
security incident. To achieve these objectives, the Cyber Security Business Unit adopts an
approach based on a proprietary framework ITWAY CYBER RESILIENCY 360®, which is divided
into four areas:
RISK MANAGEMENT, with “Cyber Risk Exposure” solutions and services (included
Technical & Logical security assessment) with which to analyse the risk exposure of
Clients on the Web and “Threat Intelligence” to promptly identify any threats
through Deep and Dark Web monitoring;
CYBER and INDUSTRIAL VISIBILITY by integrating the monitoring of IT networks with
OT / IOT networks so as to have an overall visibility of interconnected networks and
be able to identify any anomalies to be managed;
IDENTITY & MICROSOFT RESILIENCY to assess and guarantee the security of users
and access profiles at the level of systems, applications, and corporate networks,
with particular attention to the security of data and online applications in Office
HYBRID & INFRASTRUCTURE RESILIENCY with solutions and services with which to
manage the security and operational aspects of multi-Cloud environments, with the
supply of products for backup and recovery of core systems and datacentres with
data deduplication and encryption.
Cybersecurity technologies
Source: KT&Partners’ Elaborations on Company Data
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Market Overview
ITWAY offers a wide range of solutions in the growing markets of cybersecurity, cybersafety
and Big Data management, focusing on IT services and Value-Added Distribution & Design
support services.
Global Cybersecurity Market
According to Statista, the global cybersecurity industry was worth $148bn in 2022, with the
security services segment accounting for the largest revenue share. The cybersecurity
industry is expected to report a CAGR21-28E of +9.3% reaching $257bn by 2028, mainly driven
The increasing number of cyberattacks;
The rapid growth of the Internet penetration rate. As of January 2023, there were
5.16bn internet users worldwide (+12.4% YoY), which is 64.4% of the global
population;
The acceleration of working from home activities post COVID-19 pandemic which
are more vulnerable to cybercrime;
The raising of many more connected devices;
Global Cybersecurity Market Size 2021A-28E ($bn)
Source: KT&Partners’ Elaboration on Statista report: “Cybersecurity: market data & forecasts”
The cybersecurity market includes two segments: i) Cyber Solution that incorporates
automated technologies that help organizations against cyberattacks; ii) and Security Services
related to the protection against cyberattacks. Usually, over the past year, the Security
Services represented more than the half of the cybersecurity market (55%), with €81mn at
the end of 2022. However, in the next years, the situation it is expected to switch with the
Cyber Solutions that will represent the 67% of the industry with €149mn at the end of 2028,
growing at a CAGR2021-2028E of 13.9%, mainly driven by the rise of cyber-attacks and the
evolution of digital business models. Considering the geographical breakdown of the
cybersecurity market, Americas represents the largest region per revenues, and it is forecast
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to reach a value of $103bn in 2027, with a CAGR22-27E of +10.3% mainly driven by the rise
of cyber-attacks.
Americas cybersecurity revenues 2022-27 ($bn)
Source: KT&Partners’ Elaboration on Statista report: “Cybersecurity: market data & forecasts”
Italian Cybersecurity Industry
According to Anitec-Assinform, the Italian Cybersecurity market is expected to continue its
growth path also in the coming years, with an expected CAGR21-25E of 13.9%, reaching
€2.4bn in 2025. The growth will be mainly driven by all market segments with Managed
Security Services (MSS), which includes Cloud Security services project to increase at a
CAGR21-25 of 16.7% reaching €1bn.
Italian Cybersecurity Market 2021-25E (€bn)
Source: KT&Partners’ Elaboration on Anitec-Assinform: il digitale in Italia 2022
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Rise in cyber-attacks drives cybersecurity market
The number of cyber-attacks continued to grow globally, reaching 2,489 serious attacks in
2022, an increase of 440 over 2021 (+21% YoY). The largest increase was in attacks falling
under the category “Hacktivism” (hacking attacks for political or social purposes), followed by
the category ‘”Information Warfare” which grew by 119% YoY. Attacks with the purpose of
“Espionage” also increased sharply (up 62% YoY), while attacks classified as “Cybercrime”
activities decreased by 3.4% YoY, although they remained in first place of attack motivations
globally, accounting for 78.4% of global attacks. Italy is among the main targets in a context
of steadily growing cybercrime: in 2022, 188 attacks (7.6% of those recorded globally)
targeted our Country, an increase of 169% YoY. Italy is particularly affected due to the
presence of a large number of small and medium-sized enterprises that i) lack the means for
effective cyber protection; or ii) do not have adequate insurance coverage that is able to
protect their business from damage caused by cyber-attacks and data-security breaches.
Cyber-attacks growth Italy vs Global 2018-22 (%)
Source: KT&Partners’ Elaboration on Clusit report: “ICT security in Italy”
Cyber security spending in Italy
According to Politecnico di Milano Research, in 2023, cybersecurity is confirmed as the top
priority for investment in digital among Italian enterprises. Furthermore, 61% of large
companies (more than 250 employees) have decided to increase their budgets for
cybersecurity activities in recent months. Overall, in 2022, cybersecurity investments reached
a value of €1.9bn, implying an acceleration of +18.8% YoY: the largest percentage increase in
the last 5 years. The ratio of cybersecurity spending to GDP in Italy stands at 0.10%, above
the 0.08% registered in 2021, but still lower than the average G7 countries where the ranking
is led by the United States and the United Kingdom, with a ratio of 0.31%, followed by France
and Germany, with a ratio of 0.19% and 0.18%, respectively.
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Cybersecurity investments in Italy 2018A–22A (€bn)
Source: KT&Partners’ Elaboration on Politecnico di Milano research: “Cybersecurity and data protection”
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Institutional initiatives on cybersecurity: the impact of NRRP
In Italy, the NRRP is expected to boost the cybersecurity market, as it includes i) €623mn of
cybersecurity investment in public administration; and ii) additional funds for research on
innovative topics, including cybersecurity.
NRRP impact on digital market 2022A-25E (€bn)
Source: KT&Partners’ Elaboration on Anitec-Assinform: il digitale in Italia 2022
Indeed, over the 2022A-2025E period, the NRRP is expected to contribute with €9.3bn on
digital market, leading the total industry size to €87.4bn in 2025 from the €77.9bn in 2022.
Cybersafety Market
Safety at work has become more and more a central issue in our society, given the raising
incidents in the workplace. Indeed, Eurostat registered 1.4k of non-fatal accidents per 100k
workers in the EU in 2020, whereas, considering fatal accidents, the average in the EU was
2.1k per 100k workers in 2020. In Italy, as of 31 December 2022, there were 0,7mn accidents
reported in 2022, an increase of 25.7% vs 2021. According to INAIL, the number of fatal cases
reported in 2022 was 1.09k. For this reason, important measures have been taken over the
years by central governments to try to reverse this trend. In particular, Law 81/08, or the
Safety Consolidation Act, regulates the protection of the health and safety of workers in the
workplace. The law was aimed at defining standards, procedures, and preventive measures
to be taken for a safer workplace. The purpose is to minimize workers’ exposure to workrelated risks in order to avoid injuries or serious accidents.
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Work accidents in Italy 2019-22 (mn)
Big Data Market
The Big Data market size was valued at $66.1bn in 2021 and is projected to grow at a
CAGR21A-26A of 5.1% to reach $84.7bn in 2026. North America owns the largest market
share, driven by a rapid development in the adoption of IoT services in major industries,
generating a massive amount of data that can be exploited. Some of the most important Big
Data market trends involve i) the rise of machine learning; and i) the need for better data
security and more restricted data governance.
Global Big Data market 2021-26E ($bn)
Source: KT&Partners’ Elaboration on Statista report: “Big Data digital & Trend”
In Italy, the Big Data market grew by 20% YoY to reach a value of over €2.4bn in 2022, marking
a clear recovery after the slowdown due to the pandemic. Growth is mainly driven by the
software component (54% of the market, +25% vs 2021).
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Big Data market in Italy 2020-2022 (€bn)
Source: KT&Partners’ Elaboration on Statista report: “Big Data digital & Trend”
Competitive Arena
Itway operates in the ICT sector focusing on higher value-added business through its 4
business units: Cybersecurity & Infrastructure, Cybersecurity products (VAD&PS), Data
Science, and Cybersafety. The VAD&PS segment represents the main business and accounts
for over 80% of Itway revenues.
Therefore, in order to define the competitive arena, we analysed Itway’s main competitors
that operate in similar Itway business units. We have identified 7 Italian companies, with 3 of
them (Reevo, Cyberoo, Sesa) listed on the Milan Stock Exchange.
Competitors’ Revenues, EBITDA 2021-22 (€mn)
Source: KT&Partners’ Elaboration on Companies’ data
Over the years, the Group has been able to maintain a competitive advantage position thanks
to the know-how reached in more than 25 years of activities and given its constant in-house
development of revolutionary technologies with no similarities.
As of today, there is not a competitor that offers the same Itway services and operate s
successfully in all the business segments in which the Group is active. Indeed, analyzing
Itway’s Italian competitive arena, the Group showed the widest range of services assortment
among its competitors. Thanks to its well-diversified business model, Itway is able to support
operational synergies and allows the Group to provide a complete offer to its clients.
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Itway competitive arena
Source: KT&Partners’ Elaboration on Companies’ data
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Historical Financials
Itway’s key financials for FY22 are:
Total revenues at €46.7mn vs €43.7mn in FY21 (CAGR20–22 at +9.8%);
EBITDA at €2.2mn (CAGR20–22 at +4.2%), with EBITDA Margin at 4.7%;
EBIT at €1.5mn (CAGR20–22 +3.4%)
Net Income at €-0.3mn
NFP at -€1.3mn, -€1mn compared to FY21.
Revenues Breakdown
In the last 5 years, Itway has generated a constant and uninterrupted sales growth. Despite
the COVID-19 outbreak in 2020, the Group showed its strong resilience by reporting a
CAGR18–22 of +9%. In 2022, Itway reached its total revenues record at €46.7mn (+7% YoY),
as the result of business expansion given the several development investments.
Over the years, Itway has strengthened its international presence with the foreign market
accounting for the 91% of FY22 Total Revenues, with a strong presence in Turkey (52% of
FY22 sales) and Greece (35% of FY22 sales) driven by Itway’s local presence with the two
subsidiaries, Itway Hellas and Itway Turkey.
Total Revenues Breakdown by Geographies 2019–22 (€mn)
Source: KT&Partners’ Elaboration on Company Data
Considering revenues breakdown by business units, the value-added distribution of
cybersecurity products and services represents Itway’s core business, accounting for the 87%
of FY22 total revenues (€40.8mn). Whereas Data Science represented 6.4% of FY22 Total
Revenues, Cybersecurity and Cybersafety accounted for 5.1% and 1.2% of FY22 Total
Revenues, respectively.
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Total Revenues Breakdown by Business Unit 2019–22 (€mn)
Source: KT&Partners’ Elaboration on Company Data
Profitability Analysis
In the FY22A, Itway reported an EBITDA at €2.2mn, decreasing by -16% YoY mainly due to an
extraordinary provision for the write-down of receivables for €1.6mn. Therefore, the
Company showed a decrease also in terms of margins with FY22 EBITDA margin at -1.3pp YoY
standing at 4.7%.
Consequently, given D&A stable at €600k per year, also EBIT showed a slowdown of 21.3%
YoY, with the EBIT margin at 3.3% from 4.5% in 2021.
Finally, FY22 Net Income decreased from €1.3mn to €-0.3mn, influenced for €1.8mn by the
disposal of the three participations in Itway Iberica S.L., Inebula S.r.l. and BE Innova S.r.l.
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2020-2022 Consolidated Income Statement
€ Mi l l i ons
Sales Revenues
Growth %
Other Revenues
Total Revenues
FY20A
FY21A
FY22A
YoY 21-22
14.6%
15.0%
12.6%
(30.8)
(35.2)
(36.5)
Gross Profit
Gross Margin
20.6%
19.3%
21.8%
(2.3)
(2.4)
(2.7)
Pers onnel Expens es
(2.5)
(2.9)
(3.4)
Other Opera ting Expens es
(1.2)
(0.5)
(1.9)
Growth %
Products a nd Ra w ma teri a l s
Cos t of Servi ces
Rental Cos ts
EBITDA
EBITDA margin
Growth %
D&A a nd Provi s i ons
EBIT margin
Growth %
Fi na nci a l Income a nd Expens es
Extra ordi na ry i tems
-39.8%
28.9%
-15.8%
(0.6)
(0.6)
(0.6)
-46.8%
35.8%
-21.3%
(0.2)
(1.9)
(0.4)
Ta xes
(0.0)
(0.7)
Tax Rate
35.2%
Net Income
Net margin
Growth %
Mi nori ties
Net Income attributable to the Group
Net margin
Growth %
(0.3)
-0.7%
-40.0%
-126.7%
(0.4)
-0.9%
-40.2%
-130.9%
Source: Company Data
Capital Structure Analysis
As for the balance sheet, Itway’s FY22 fixed assets increased by €1.3mn, reaching €9.8mn,
due to investments in the development of new products and services,
In 2022, Itway’s trade working capital increased from €6.5mn to €7.4mn, mainly because of
the higher trade receivables (€21.4mn vs €20.6mn in 2021) following business growth,
recording a cash absorption of €0.9mn.
Finally, Itway registered a net financial position improve at -€1.3mn (from -€0.3mn in FY21)
also given the capital increase of the subsidiary 4Science for €2.8mn.
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2020-2022 Consolidated Balance Sheet
€ Mi l l i ons
Goodwi l l
Inta ngi bl e
Ta ngi bl e
Other LT As s ets
Fixed Assets
Tra de recei va bl es
Inventory
Tra de Pa ya bl es
Trade Working Capital
Other a s s ets a nd l i a bi l i ties
Net Working Capital
Other Provisions
Net Capital Employed
Group s ha rehol ders ‘ equi ty
Mi nori ty s ha rehol ders ‘ equi ty
Total shareholders’ equity
Short-term debt / Ca s h (-)
Long-term l i a bi l i ties
Net Financial Position
Sources
FY20A
(13.7)
(3.1)
(0.5)
FY21A
(14.3)
(4.5)
(0.9)
FY22A
(14.5)
(4.1)
(0.8)
(0.4)
(3.0)
(0.4)
(3.4)
(0.3)
(4.6)
(1.3)
Source: Company Data
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1Q23 Financials Results
Sales Revenues
On May 12, 2023, Itway announced its 1Q23 consolidated sales revenues. The Group experienced
a +6.2% YoY sales increase, achieving €10mn in the first three months of 2023. The growth was
mainly driven by the strong performance of 4Science and Itway SpA. However, the other
subsidiaries also showed a good performance with Itway Hellas, that continued to maintain a
significant position in a market that is emerging from a delicate economic situation, reporting sales
revenues in line with 1Q22, whereas, Itway Turkey, despite the complex economic situation due to
the sharp devaluation of the not-always-effective economic policies put in place by the central
government, showed a revenues increase in local currency of +39% YoY.
1Q19-23 Sales Revenues (€mn)
Source: KT&Partners’ Elaboration on Company Data
Profitability Analysis
Group EBITDA slightly declined in 1Q23, standing at €250k, compared with the €610k
registered in 1Q22. The decrease is mainly linked to higher personnel costs (+39.5% YoY),
standing at €1mn, 9.8pp on sales (vs 7.4pp on sales in FY21), with the aim to strengthen Group
structure to support business growth. Indeed, the number of employees increased from 63
units (+16 compared to 1Q22), reaching 79 units (in line with Company’s strategies). The
management declared that this phase of lower efficiency and production capacity is expected
to improve as early as the second half of 2023.
Net Financial Position
Finally, the Group’s net financial position on 31 March 2023 improved at -€2.9mn from the €1.3mn at the end of FY22, as a result of the capital increase of the subsidiary 4Science in the
second half of 2022.
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Group’s Strategy
In the coming years, Itway’s goal is to keep expanding and consolidating its business, strongly
focusing on i) widening its service offer; ii) consolidating its already-strong international
presence; iii) developing new technologies; and iv) strengthening its management structure.
Diversification of services offered: given the dynamicity of the technology sector,
the Company has to constantly update its offer. Indeed, the Group recently
launched the new Cyber Security line “Itway Cyber Security 360™” products that
represents a further expanded NOC/SOC service and managed security services.
Moreover, the Group is also constantly improving its new Cyber Safety product
ICOY to seize as many as possible opportunities in a market characterized by an
increasing demand;
Internationalization: the Group aims to boost its international presence, seizing
new opportunities in foreign markets, in addition to the ones that already oversee,
both through M&A activities and the opening of new subsidiaries;
Development of new technologies: the Group will continue to boast its know-how
launching technological vertical business units, acting also as incubator,
maintaining at the same time the technical and commercial partnership agreement
with the strategic asset;
Management reinforcing: the Group already started in 2022 to strengthen its
management, introducing Mr. Massimo Fanelli as Deputy General Manager, well
known in the Italian ICT market and with deep knowledge of the Cyber segment,
and Mr. Angelo Salice, an expert in the Cyber Security market who went to lead, as
Director, the Cyber Security & Infrastructure Business Unit. The Group will continue
to pursue this strategy with the aim to boost its growth path.
Deconstructing Forecasts
Our financial projections over the 2023E–26E period are based on Itway’s business model and
strategy. No impact from future M&As has been considered1.
Starting from the top line, we anticipate total revenues growing at a CAGR22A-26E of 5.5%,
reaching €57.5mn in FY26E. We projected sales considering a growth of the VAS & PS and the
Data Science business units at a CAGR2022A-26E of approximately 5%, considering
respectively the Big Data global market forecasts. Therefore, the VAS&PS is expected to reach
€49.9mn in FY26E from €42.8mn in FY23E, still representing the majority of sales, whereas
revenues from Data Science are projected to increase from €3.1mn in FY23E to €3.6mn in
FY263E. The cybersecurity segment is expected to growth at a CAGR2022-26E of 9.3%, in line
with the global cybersecurity market, boosted by the increasing number of cyberattacks.
Finally, the Cyber Safety is anticipated to be the business unit with the fastest growth
(CAGR2022A-2026E of +10%), driven by the new ICOY product and the several opportunities
in this industry characterized by high demand given by the raising incidents in the workplace
and the important measures that central governments are taking to try to reverse this trend
(e.g. Law 81/08).
Focusing on profitability, we foresee a slight contraction in FY23E EBITDA forecasted at
€2.1mn vs €2.2mn in FY22A, with a marginality at 4.3% (vs 4.7% in FY22) mainly impacted by
an increase in personnel expenses (€3.9mn in FY23 vs €3.4mn in FY22) to strengthen the
Financial projections have been prepared by KT&Partners independently of Itway SpA. Projections and forecasts involve risks and uncertainties and
are subject to change. Therefore, actual results may differ materially from those contained in the projections and forecasts.
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management structure with the aim to boost Itway growth path. Starting from FY24E, we
expect an improving marginality primarily driven by an ongoing transition in the Company’s
revenue mix, reducing the share of the VAD & PS business unit’s revenues to higher-profit
segments (e.g., DataScience). Thus, we foresee the EBITDA growing at a CAGR2022A-2026E
of 31.9% reaching €6.6mn in FY26E from €2.1mn expected in FY23E. For the same reason we
expect an increase in terms of margins with the EBITDA margins seen at 11.5% in FY26E from
the 4.3% estimated in FY23E.
Looking at the bottom line, we estimate net income at €3.4mn in FY26E (from €0.9mn in
FY23E), with a FY26E net margin of 5.9%. We note that in our projections we assume a tax
rate as an average of the last two years at 25%.
2020A-2026E Consolidated Income Statement
€ Mi l l i ons
FY20A
FY21A
FY22A
FY23E
FY24E
FY25E
FY26E
Cyber Securi ty
Cyber Sa fety
10.0%
Da ta Sci ence
CAGR 22A-26E
VAD+PS
Total Revenues
12.6%
(41.6)
Growth %
Products a nd Ra w ma teri a l s
(30.8)
(35.2)
(36.5)
(38.3)
(39.4)
(40.4)
Gross Profit
Gross Margin
20.6%
19.3%
21.8%
21.9%
23.9%
25.9%
27.9%
Cos t of Servi ces
(2.3)
(2.4)
(2.7)
(2.8)
(2.8)
(2.9)
(2.9)
Pers onnel Expens es
(2.5)
(2.9)
(3.4)
(3.9)
(4.0)
(4.1)
(4.3)
Other Opera ting Expens es
(1.2)
(0.5)
(1.9)
(2.0)
(2.1)
(2.2)
(2.3)
11.5%
-39.8%
28.9%
-15.8%
-3.8%
64.2%
43.3%
33.6%
(0.6)
(0.6)
(0.6)
(0.9)
(1.2)
(1.6)
(2.0)
-46.8%
35.8%
-21.3%
-18.8%
77.1%
50.2%
38.4%
(0.2)
(1.9)
(0.1)
(0.1)
(0.1)
(0.1)
(0.4)
Ta xes
(0.0)
(0.7)
(0.3)
(0.5)
(0.8)
(1.1)
Tax Rate
35.2%
25.0%
25.0%
25.0%
25.0%
(0.3)
-0.7%
EBITDA
EBITDA margin
Growth %
D&A a nd Provi s i ons
EBIT margin
Growth %
Fi na nci a l Income a nd Expens es
Extra ordi na ry i tems
Net Income
Net margin
12.1%
31.9%
Source: KT&Partners’ Estimates and elaborations on Company’s Data
As for Itway’s balance sheet, we forecast Net Working Capital (NWC) to grow from €3.3mn in
FY22A to €4.2mn in FY23E, to reach €7mn in FY26E mainly following Itway’s business growth.
Moreover, we considered around €1mn of investment in intangible assets per year in the
period FY23E-FY26E for the launch of new technologies to boost the Company’s growth and
to preserve its international competitive advantage.
Looking at Itway’s financial soundness, we expect NFP to enhance from -€1.3mn in FY22A to
-€1.5mn in FY23E, progressively improving in the following years up to a cash position of €8.7mn in FY26E, confirming Itway cash-flow generation ability.
June 19, 2023 ? 31
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
2020A-2026E Consolidated Balance Sheet
€ Mi l l i ons
Goodwi l l
Intangi bl e
Ta ngi bl e
Other LT As s ets
Fixed Assets
Tra de recei va bl es
Inventory
Tra de Pa ya bl es
Trade Working Capital
Other a s s ets a nd l i a bi l i ties
Net Working Capital
Other Provisions
Net Capital Employed
Group s ha rehol ders ‘ equi ty
Mi nori ty s ha rehol ders ‘ equi ty
Total shareholders’ equity
Short-term debt / Ca s h (-)
Long-term l i a bi l i ties
Net Financial Position
Sources
FY20A
(13.7)
(3.1)
(0.5)
FY21A
(14.3)
(4.5)
(0.9)
FY22A
(14.5)
(4.1)
(0.8)
FY23E
(15.1)
(4.1)
(1.1)
FY24E
(15.5)
(4.1)
(1.4)
FY25E
(15.9)
(4.1)
(1.7)
FY26E
(16.3)
(4.1)
(2.0)
(0.4)
(3.0)
(0.4)
(3.4)
(0.3)
(4.6)
(1.3)
(4.8)
(1.5)
(6.0)
(2.7)
(8.4)
(5.1)
(12.0)
(8.7)
Valuation
Following Itway’s future financials projections, we have carried out our valuation using the
multiples and DCF methods. Our fair value is the result of:
EV/EBITDA and P/E multiples which returns a value of €1.85ps;
DCF analysis based on WACC of 15.5% and 2% perpetual growth, returns a value of
€2.18ps.
The average of the two methods yields a fair value of €2.01ps or an equity value of €21.4mn.
Valuation Recap
Equity Value €mn
Value per share €
EV/EBITDA
Average – multiples
Average
Source: FactSet, KT&Partners’ Elaboration
Peer Comparison
In order to define Itway’s peer sample, we carried out an in-depth analysis of both
international and domestically listed companies active in the cybersecurity marketing
industry. In selecting potential peers, we considered Itway’s offering and revenue mix,
business model, growth, and profitability profile.
For peer analysis, we built a sample of ten companies, which includes:
CY4Gate: listed on Borsa Italiana Stock Exchange with a market capitalization of
€211mn, CY4Gate SpA engages in the design, development, and production of
technologies, products, systems, and services to provide solutions for cyber
intelligence, cyber security, and cyber electronic warfare. It operates through the
Cyber Intelligence and Cyber Security business divisions. The Cyber Intelligence
June 19, 2023 ? 32
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
division creates and licenses programs which collect and analyze information from
open sources on the Internet or social media through the use of electronic and
digital devices. The Cyber Security division specializes in products and services that
protect information technology systems as well as analyze, catalogue, and
counteract threats. In FY22A, the Company achieved €56.6mn of sales revenues.
Cyberoo: listed on Borsa Italiana Stock Exchange, with a market capitalization of
€113.8mn, Cyberoo provides information technology solutions for the
management, optimization, and support of business information systems with
focus on cyber security. It operates through the following business segments: Cyber
Security and Device Security, Managed Services, and Digital Transformation. The
Cyber Security and Device Security segment provides software services such as antispam, anti-virus, web security, log management, treat hunting, and security
awareness. The Managed Services segment involves in data-center management,
cloud management, and device management. The Digital Transformation segment
develops systems for customer relationship management, human resources
management, and product management. In FY22A, the Company achieved
€15.6mn of sales revenues.
Defence Tech: listed on Borsa Italiana Stock Exchange, with a market capitalization
of €111.1mn, Defence Tech engages in the design, construction, and certification
of cyber security, big data, and intelligence systems. It operates through the
following macro business areas: Cyber Security and Technologies for Intelligence,
Engineering and Control Systems, and Electronics. The Cyber Security and
Technologies for Intelligence area involves in a set of activities aimed at the
prevention and protection of public and private infrastructures from sophisticated
cyberattacks and at the development of strategies such as decision-making and
marketing based on Big Data through the use of proprietary technologies for data
analytics and data intelligence. The Engineering and Control Systems area focuses
its activities on providing consultancy services for the creation and implementation
of in-house and tailor-made software for industry and service providers operating
in the sectors of air traffic control, avionics, naval systems, defense, and space. The
Electronics area specializes in engineering activities for the management of
obsolescence, refurbishing, design, implementation, integration, and
modernization of defense and control systems. In FY22A, the Company achieved
€19.5mn of sales revenues.
Exclusive Network: listed on Euronext Paris, with a market capitalization of €1.8bn,
Exclusive Networks SA operates as a globally trusted cybersecurity and digital
infrastructure specialist. It is specialized in delivering cybersecurity and cloud
computing solutions for digital infrastructures. The firm provides technical support,
training, professional services, and project management services. It operates
through the following segments: Identity and Access Management (IAM), SVM, and
Network Security. In FY22A, the Company achieved €3.4bn of sales revenues.
Expert.ai: listed on Borsa Italiana Stock Exchange, with a market capitalization of
€53mn, Expert.ai engages in the development of semantic technology. It engages
in the provision of solutions for online activities such as search and explore, tagging
and categorization, intelligence, natural language understanding, and
advertisement. In FY22A, the Company achieved €28.5mn of sales revenues.
FOS: listed on Borsa Italiana Stock Exchange, with a market capitalization of
€23.1mn, FOS engages in the design, development, and marketing of digital
solutions for data management and protection transfer. In FY22A, the Company
achieved €18.4mn of sales revenues.
June 19, 2023 ? 33
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
Gen Digital: listed on Nasdaq Stock Exchange, with a market capitalization of
€11.1bn, Gen Digital engages in the provision of security, storage, and systems
management solutions. The firm focuses on providing consumer cyber safety with
its business solutions. In FY22A, the Company achieved €2.8bn of sales revenues.
Reevo: listed on Borsa Italiana Stock Exchange, with a market capitalization of
€87.2mn, Reevo operates as a holding company that develops information
technology solutions for cloud services. Its main service areas include Cloud
Infrastructure Services, Cyber Security, and Hybrid Cloud. The Cloud Infrastructure
Services comprises software and hardware resources to enable asset data
management including Infrastructure as a Service, Backup as a Service, Storage as
a Service, and Disaster Recovery as a Service. The Cyber Security area offers a digital
safe feature as well as indicates threats, vulnerabilities, and other data protection
measures against cyber-attacks to computer networks. The Hybrid Cloud area
specializes in device and technology hosting to enable secure interconnectivity to
its Cloud services. In FY22A, the Company achieved €14mn of sales revenues.
Sesa: listed on Borsa Italiana Stock Exchange, with a market capitalization of
€1.8bn, Sesa engages in the provision of value-added information technology
solutions. It operates through the following business areas: VAD IT Value Added
Distribution, SI System Integration, and Corporate. The VAD IT Value Added
Distribution business area focuses on software house and system integration. The
SI System Integration business area offers enterprise system integration services.
The Corporate business area provides corporate services such as cloud computing,
logistics, marketing, human resources, planning and control, finance, mergers and
acquisitions, legal, and information and communication technology and operations.
In FY22, the Company achieved €2.4bn of sales revenues.
Digital360: listed on Borsa Italiana Stock Exchange, with a market capitalization of
€106.8mn, Digital360 provides solutions for marketing and consulting technologies
for digital transformation. It operates through the Demand Generation and
Advisory and Coaching business units. The Demand Generation unit provides
support services, especially custom and subscription services to technology
companies for marketing and business opportunity generation activities. The
Advisory and Coaching unit provides consulting services to companies and public
administrations in the process of digital transformation. In FY22, the Company
achieved €55.3mn of sales revenues.
Vantea Smart: listed on Borsa Italiana Stock Exchange, with a market capitalization
of €43.6mn, Vantea Smart engages in the provision of information technology
solutions for the management, optimization, and support of business digital
transformation processes. The firm specializes in cyber-security consultancy that
combines systems integration and software development. It also develops
enterprise resource planning systems and initiatives in change management as well
as infrastructural and product innovation. In FY22, the Company achieved €50mn
of sales revenues.
WIIT: listed on Borsa Italiana Stock Exchange, with a market capitalization of
€565.2mn, WIIT engages in the provision of hosted private and hybrid cloud
services. It offers cloud computing, critical applications, business continuity and
disaster recovery, cyber security, technology migrations, service desk, and digital
transformation solutions. In FY22, the Company achieved €116.6mn of sales
revenues.
We analyzed the peer companies by considering their average revenue and EBITDA growth
and compared to Itway’s historical and expected financials. By looking at 2021-22 revenue
growth, peer companies grew on average by 31.4% YoY while Itway’s revenues grew by ca.
June 19, 2023 ? 34
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
7% YoY. Over the 2022-25 period Itway’s sales are expected to grow at a 5.4% CAGR22-25 vs
14% average growth of the ICT peers. Looking at FY22 EBITDA, Itway registered a contraction
of 15.8% YoY following the strengthening of management structure vs an average growth for
peers’ sample that showed +27.9% YoY. According to our financial projections Itway’s EBITDA
shows an expected 31.3% CAGR22-25, far above the average projected growth of peers
(CAGR22-25 of 16.1%), as Itway’s strategy for the coming years is to focus on business with
higher margins.
Peer comparison – Sales and EBITDA growth 2019-25
Sales
Company Name
CY4Gate SpA
Cyberoo S.p.A.
Defence Tech Holding SpA
Exclusive Networks S.A.
Expert.ai S.p.A.
FOS SpA
Gen Digital Inc.
ReeVo SpA
SeSa S.p.A.
Digital360 SpA
Vantea Smart S.p.A.
WIIT SpA
Peers Average
It Way
1,742
2,241
1,763
1,892
2,189
2,022
2,483
2,407
2,363
3,404
3,210
EBITDA
Company Name
CY4Gate SpA
Cyberoo S.p.A.
Defence Tech Holding SpA
Exclusive Networks S.A.
Expert.ai S.p.A.
FOS SpA
Gen Digital Inc.
ReeVo SpA
SeSa S.p.A.
Digital360 SpA
Vantea Smart S.p.A.
WIIT SpA
Peers Average
It Way
1,055
1,030
YoY 21- 22
Sales
12.4%
37.1%
24.0%
33.3%
29.5%
50.5%
52.7%
31.4%
YoY 21- 22
3,841
3,548
3,220
4,298
3,732
3,458
1,009
4,856
3,829
3,485
1,405
EBITDA
10 36.5%
n.a. n.a.
5 11.6%
158 27.9%
-18 56.9%
4 19.1%
1,659 61.1%
3 13.7%
n.a. n.a.
n.a. n.a.
3 2.7%
39 70.2%
207 27.9%
2 -15.8%
1,934
2,049
2022-’25
21.2%
12.6%
14.0%
19.6%
28.4%
11.5%
14.0%
2022-’25
32 49.3%
n.a. n.a.
n.a. n.a.
243 15.5%
12 -188.5%
8 26.9%
2,207 10.0%
9 41.1%
256 n.a.
22 n.a.
n.a. n.a.
62 16.1%
317 16.1%
5 31.3%
Source: FactSet, KT&P’s Elaboration
We then compared peers’ profitability with Itway’s historical and expected margins. Itway
showed a FY22 EBITDA margin at 4.7%, below average peers’ EBITDA margin at 23%. By 2023,
our projections result in an EBITDA margin at 4.3% vs an expected average peers’ profitability
at 26.3%.
Peer comparison – EBITDA margin, EBIT margin and Net margin 2020-25
Company Name
EBITDA Margin
EBIT Margin
Net Margin
CY4Ga te SpA
52.1%
41.8%
18.0%
30.8%
33.0%
33.6%
39.8%
21.9%
19.6%
21.3%
22.4%
42.0%
30.4%
12.8%
15.4%
Cyberoo S.p.A.
33.5%
27.5%
48.1%
58.3%
37.0%
47.2%
25.9%
30.6%
Defence Tech Hol di ng SpA
26.6%
26.5%
35.7%
36.4%
20.8%
15.5%
28.6%
28.8%
21.6%
21.6%
17.9%
18.2%
Excl us i ve Networks S.A.
Expert.a i S.p.A.
15.8%
26.0%
28.9%
FOS SpA
22.4%
20.8%
20.0%
21.2%
22.5%
23.8%
10.4%
10.4%
11.8%
11.2%
13.4%
15.6%
Gen Di gi tal Inc.
48.2%
42.8%
51.7%
54.5%
54.9%
57.6%
41.4%
37.1%
41.1%
56.3%
58.9%
60.6%
27.3%
29.9%
40.4%
30.7%
34.8%
36.9%
ReeVo SpA
20.4%
28.3%
29.5%
30.6%
11.5%
18.8%
19.3%
26.3%
23.1%
15.4%
19.4%
12.0%
10.1%
12.8%
13.4%
14.2%
SeSa S.p.A.
Di gi tal 360 SpA
20.6%
21.1%
19.2%
20.2%
20.2%
11.0%
11.3%
16.2%
17.4%
17.3%
Va ntea Sma rt S.p.A.
12.6%
15.4%
11.5%
WIIT SpA
31.0%
30.3%
33.8%
36.5%
38.1%
38.1%
13.9%
19.9%
22.0%
22.5%
11.8%
12.5%
Peers Average
23.1%
23.4%
23.0%
26.3%
28.9%
27.2%
13.2%
12.8%
14.1%
20.4%
22.7%
20.9%
10.0%
12.9%
11.7%
11.8%
13.7%
11.7%
It Way
Source: FactSet, KT&P’s Elaboration
June 19, 2023 ? 35
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
Market Multiples Valuation
Following our comps analysis, we evaluated the company by using the 2023–25 EV/EBITDA
and P/E market multiples of the peer sample. Our valuation also includes a 20% liquidity/size
discount and takes into account our estimates of Itway’s EBITDA and Net Income for 2023,
2024, and 2025. We also considered FY22 NFP at -€1.2mn.
Peer Comparison – Market Multiples 2022-2025
Market EV/SALES
EV/SALES
EV/SALES
EV/SALES EV/EBITDA EV/EBITDA EV/EBITDA EV/EBITDA
EV/EBIT
EV/EBIT
EV/EBIT
EV/EBIT
Company Name
Exchange
CY4Gate SpA
Milan
21.6x
13.0x
11.0x
19.0x
15.7x
13.7x
Cyberoo S.p.A.
Milan
11.4x
17.3x
10.2x
Defence Tech Holding SpA
Milan
20.5x
10.5x
34.9x
13.2x
11.1x
26.1x
21.5x
17.9x
1,808
13.8x
11.4x
10.1x
25.7x
14.3x
12.5x
10.5x
15.2x
13.3x
11.6x
12.5x
27.8x
Exclusive Networks S.A.
Expert.ai S.p.A.
FOS SpA
Gen Digital Inc.
Euronext Paris
Milan
Milan
NASDAQ
10.5x
17.8x
13.4x
10.2x
11,070
11.7x
10.0x
14.7x
26.1x
14.2x
10.9x
21.3x
16.7x
14.6x
35.2x
26.6x
22.1x
ReeVo SpA
Milan
SeSa S.p.A.
Milan
1,835
10.0x
15.8x
14.0x
14.7x
Digital360 SpA
Milan
14.2x
11.3x
10.0x
Vantea Smart S.p.A.
Milan
15.5x
23.1x
30.5x
WIIT SpA
Milan
19.2x
15.3x
13.4x
12.2x
28.0x
23.2x
20.7x
37.5x
29.7x
26.2x
Average peer group
1,338
16.8x
21.8x
13.1x
10.4x
10.4x
20.7x
19.9x
15.7x
15.7x
Median peer group
17.3x
23.1x
11.4x
21.9x
16.5x
13.6x
13.7x
10.3x
12.7x
15.6x
It Way
Milan
Source: FactSet, KT&Partners’ Elaboration
We end up with our Itway’s equity value of €20.7mn for EV/EBITDA and of €18.5mn through
the P/E method.
EV/EBITDA Multiple Valuation
P/E Multiple Valuation
Source: FactSet, KT&Partners’ Elaboration
June 19, 2023 ? 36
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
DCF Valuation
We have also conducted our valuation using a four-year DCF model, based on 15.1% cost of
equity, 3% cost of debt, and a D/E ratio of 11.7% (Damodaran for software – computer
services sector). The cost of equity is a function of the risk-free rate of 4.2% (Italian 10y BTP,
last 3 months average) and the equity risk premium of 5.1% (Damodaran for a mature
market). We, therefore, obtained 15.5% WACC.
We discounted 2023E-26E annual cash flow and considered a terminal growth rate of 2.0%;
then we carried out a sensitivity analysis on the terminal growth rate (+/- 0.25%) and on
WACC (+/- 0.25%).
DCF Valuation
€ Mi l l i ons
2023E
Ta xes
Cha nge i n Net Worki ng Ca pi tal
Cha nge i n Funds
Net Operating Cash Flow
Ca pex
2024E
2025E
2026E
(0.3)
(0.6)
(0.8)
(1.2)
(0.9)
(0.9)
(0.9)
(1.0)
(1.1)
(1.1)
(1.1)
(1.1)
15.5%
FCFO (di s counted)
Discounted Cumulated FCFO
TV (di s counted)
Enterprise Value
NFP FY2022A
(1.2)
Mi nori ties FY2022A
Equity Value
Current number of s ha res (mn)
Value per share (€)
Source: Company Data, KT&Partners’ Elaboration
Sensitivity analysis
€ Mi l l i ons
16.0%
15.7%
15.5%
15.2%
15.0%
Source: Company Data, KT&Partners’ Elaboration
Terminal growth
23164.20
June 19, 2023 ? 37
ITWAY SPA
Price: €1.27 | Fair Value: €2.01
DISCLAIMER
THIS DOCUMENT WAS PREPARED BY MARIA TERESA DI GRADO – SENIOR ANALYST – ON
BEHALF OF KT&PARTNERS S.R.L., WITH REGISTERED OFFICE AT VIA DELLA POSTA 10, MILAN,
ANALYSIS (HEREINAFTER, “KT&PARTNERS”).
NO OTHER PEOPLE OR COMPANY CONTRIBUTED TO THE RESEARCH. NEITHER THE MEMBERS
OF THE RESEARCH TEAM, NOR ANY PERSON CLOSELY ASSOCIATED WITH THEM HAVE ANY
RELATIONSHIPS OR ARE INVOLVED IN CIRCUMSTANCES THAT MAY REASONABLY BE
EXPECTED TO IMPAIR THE OBJECTIVITY OF THE RESEARCH, INCLUDING INTERESTS OR
CONFLICTS OF INTEREST, ON THEIR PART OR ON THE PART OF ANY NATURAL OR LEGAL
PERSON WORKING FOR THEM, WHO WAS INVOLVED IN PRODUCING THE RESEARCH.
FOR THIS PURPOSE, THE MEMBERS OF THE RESEACH TEAM CERTIFY THAT: (I) THEY HAVE NOT
RECEIVED AND WILL NOT RECEIVE ANY DIRECT OR INDIRECT COMPENSATION IN EXCHANGE
FOR ANY VIEWS EXPRESSED IN THE RESEARCH; (II) THEY DO NOT OWN ANY SECURITIES
AND/OR ANY OTHER FINANCIAL INSTRUMENTS ISSUED BY THE COMPANY OR ANY FINANCIAL
INSTRUMENT WHICH THE PRICE DEPENDS ON, OR IS LINKED TO ANY SECURITIES AND/OR ANY
FINANCIAL INSTRUMENTS ISSUED BY THE COMPANY; (III) NEITHER THE ANALYSTS NOR ANY
MEMBER OF THE ANALYST’S HOUSEHOLD SERVE AS AN OFFICER, DIRECTOR OR ADVISORY
BOARD MEMBER OF THE COMPANY.
KT&PARTNERS HAS IN PLACE AN EQUITY RESEARCH POLICY, IN ORDER TO RULE RESEARCH
SERVICES IN COMPLIANCE WITH PARLIAMENT REGULATION (EU) NO.596/2014 AND
COMMISSION DELEGATED REGULATION (EU) NO. 958/2016 ON MARKET ABUSE. IN THIS
POLICY, THERE ARE ALSO DESCRIBED THE ORGANIZATIONAL MECHANISMS ADOPTED BY
KT&PARTNERS TO PREVENT AND PROFESSIONALLY MANAGE CONFLICTS OF INTEREST THAT
MAY BE ARISE DURING THE PITWAYRMANCE OF THE RESEARCH. IN ANY CASE, CHINESE
WALLS AND OTHER INFORMATION BARRIERS ARE IN PLACE TO AVOID THE EXCHANGE OF
CONFIDENTIAL INFORMATION BETWEEN THE EQUITY RESEARCH DEPARTMENT AND OTHER
SERVICES AREAS.
KT&PARTNERS PREPARED THIS DOCUMENT ON BEHALF OF ITWAY SPA ACCORDING TO AN
AGREEMENT ENTERED WITH THE SAME AND ON THE BASIS OF THE DATA AND PUBLIC
INFORMATION PROVIDED BY THE SAME OR DERIVED FROM SOURCES DEEMED SERIOUS AND
RELIABLE ON THE FINANCIAL MARKET BUT WHOSE ABSOLUTE TRUSTWORTHINESS,
COMPLETENESS, AND ACCURACY CANNOT BE GUARANTEED. THE FEES AGREED FOR THIS
RESEARCH DO NOT DEPEND ON THE RESULTS OF THE RESEARCH.
KT&PARTNERS RELEASE THIS DOCUMENT AS INITIATION OF COVERAGE ON ITWAY SPA NO
OTHER DOCUMENTS WERE ISSUED BEFORE.
THIS DOCUMENT IS A SOURCE OF INFORMATION ONLY, AND IS NOT PART OF, AND IN NO
WAY MUST BE CONSIDERED AN OFFER TO SELL, SUBSCRIBE OR TRADE, OR A SOLICITATION
TO PURCHASE, SUBSCRIBE OR TRADE, FINANCIAL INSTRUMENTS/PRODUCTS, OR IN GENERAL
TO INVEST, NOR MUST IT BE CONSIDERED ANY FORM OF CONSULTING FOR AN INVESTMENT
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ASSESSMENT OF THE ADVISABILITY OF INVESTING. ANY INVESTMENT DECISION MADE ON
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DOCUMENT MERELY AS A SOURCE OF INFORMATION AND ANALYSIS TO SUPPORT SUCH
DECISION.
ANY OPINIONS, FORECAST OR ESTIMATES CONTAINED HEREIN CONSTITUTE A JUDGEMENT
AS AT THE DATE OF THIS DOCUMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUTURE
RESULTS OF THE COMPANY AND/OR ANY FUTURE EVENTS WILL BE CONSISTENT WITH ANY
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PITWAYRMANCE OR THE OUTCOME OF ANY INVESTMENT OR PROJECTIONS MADE.
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KT&PARTNERS AIMS TO PROVIDE CONTINUOUS COVERAGE OF THE COMPANY IN
CONJUNCTION WITH ANY EXCEPTIONAL EVENT THAT OCCURS AFFECTING THE ISSUER’S
SPHERE OF OPERATIONS AND IN ANY CASE AT LEAST TWICE PER YEAR.
IN THIS STUDY DCF AND MULTIPLE VALUATION MODELS HAVE BEEN USED.
RECOMMENDATIONS FOLLOW THE FOLLOWING RULES:
ADD – FOR A FAIR VALUE > 15% ON CURRENT PRICE
HOLD – FOR A FAIR VALUE -15% ON CURRENT PRICE
REDUCE – FOR A FAIR VALUE < -15% ON CURRENT PRICE
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