Racing Force Spa · MIL:RFG
Racing Force Spa — Investor Presentation (March 2023)
38 slides from Racing Force Spa's investor presentation, Mar 30, 2023
Slide 1: The Heart of Racing
THE HEART OF RACING March 30, 2023 RFG Investor Presentation
Slide 2: Notice to Recipient - Strictly Confidential
NOTICE TO RECIPIENT - STRICTLY CONFIDENTIAL The information contained in this documentation has been prepared by Racing Force S.p.A. (the “Company”) and its consolidated subsidiaries (together, the "Group") for the sole purpose of the presentation made to you concerning the Group. This presentation
Slide 3: An International Leadership Team
AN INTERNATIONAL LEADERSHIP TEAM Paolo Delprato Stephane Cohen Roberto Ferroggiaro Group Chairman and CEO Group Co-CEO Group CFO Chairman Racing Force International CEO Racing Force International Chairman High Protection Systems CEO High Protection Systems BELL Co-Founder +15 Years of Industry Exper
Slide 4: Racing Force at a Glance
RACING FORCE AT A GLANCE RACING FORCE OPERATES IN THE DEVELOPMENT, PRODUCTION AND MARKETING OF SAFETY COMPONENTS AND PROTECTION EQUIPMENT FOR THE MOTORSPORT INDUSTRY RACING FORCE GROUP TODAY Brands Numbers Worldwide Leadership in Motorsport Safety Equipment Widest range of products covering the full
Slide 5: 70+ Years of Uncompromised Innovation and Reliability in Motorsport Safety Equipment
70+ YEARS OF UNCOMPROMISED INNOVATION AND RELIABILITY IN MOTORSPORT SAFETY EQUIPMENT Percivale brothers founded OMP has been acquired by SAYE Racing Force Group (ALRFG) Sports Europe SA (Brussels, Belgium) Zeronoise is founded. OMP Racing in Genoa (Italy). S.p.A., giving the ownership to the listed
Slide 6: A Long Term Double-Digit Growth History
A LONG TERM DOUBLE-DIGIT GROWTH HISTORY SALES Consolidated EBITDA Acquisition 52% decrease in turnover (€ M) Margin (%) of FIA # Racing events 19.8% 58.9 and 19.2% 46.7 11.4% 15.9% 36.6 33.7 25.9 18.4 2014 2015 2016 2017 2018 2019 2020 2021 2022 08
Slide 7: Motorsport Safety Equipment Market
MOTORSPORT SAFETY EQUIPMENT MARKET
Slide 8: The Partner of Choice: From Top Drivers to Amateurs, Teams and Regulatory Bodies
THE PARTNER OF CHOICE: FROM TOP DRIVERS TO AMATEURS, TEAMS AND REGULATORY BODIES SELECTED TOP DRIVERS SELECTED PARTNERSHIPS Lewis Hamilton (F1 Driver) Charles Leclerc (F1 Driver) Carlos Sainz (F1 Driver) George Russell (F1 Driver) Thierry Neuville (WRC driver) Kalle Rovanpera (WRC Champion) Sébastie
Slide 9: Leadership in a Fragmented Market Dominated by Players
LEADERSHIP IN A FRAGMENTED MARKET DOMINATED BY 3 PLAYERS SINGLE EXTENDED PRODUCT RANGE PROFESSIONAL QUALITY Headquarter Sparco Worldwide Simpson (mainly USA) Market Worldwide Impact USA Stilo Worldwide Main brands RANGE OFFER DRIVER EQUIP. Racewear Kartwear Helmets FHR ENTRY LEVEL QUALITY Intercom S
Slide 10: Racing Force Group Range of Products
RACING FORCE GROUP RANGE OF PRODUCTS
Slide 11: Unique Brand Portfolio Combining Heritage and Innovation
UNIQUE BRAND PORTFOLIO COMBINING HERITAGE AND INNOVATION “ICONIC” BRANDS “YOUNG” BRANDS Established in 1973 Established in 1954 Established in 2018 Established in 2012 11
Slide 12: Over 2,000 Products
OVER 2,000 PRODUCTS Full range of racewear and car parts, that covers the 3 markets segment ( Good – Better – Best) DRIVER SAFETY EQUIPMENT CAR PARTS DYNEEMA 1996 2004 TODAY POLYESTER WORLD’S STRONGEST FIBER 25 YEARS R&D STUDIES HIGHEST FIA SAFETY STANDARDS 10 YEARS R&D STUDIES HIGHEST FIA SAFETY ST
Slide 13: Any Surface Any Speed
ANY SURFACE ANY SPEED Full range of products with 3 collections and more than 40 helmet models FULL FACE HELMETS (CIRCUIT) OPEN FACE HELMETS (RALLY) INNOVATION SINCE 1954 THE CHOICE OF 70% F1 DRIVERS IN WRC SINCE 2021 HIGHEST FIA SAFETY STANDARDS IMPACT WEIGHT IMPACT WEIGHT YEARS YEARS SAFETY INNOVA
Slide 14: Zeronoise. Silence and Vision
ZERONOISE. “SILENCE” AND “VISION” Technology that improves performance for every need COMMUNICATION Driver’s Eye™ is the IN WRC SINCE 2021 FULL RANGE OF DIGITAL INTERCOM smallest micro camera in the world for live TV broadcasting (≈1.4gr, 9x9mm) PERFORMANCE THE MOST EFFECTIVE NOISE CANCELLING ALGORI
Slide 15: Racing Spirit. Racing DNA 365 Days a Year
RACING SPIRIT. “RACING DNA” 365 DAYS A YEAR The choice of technical apparel of major motorsport brands and teams LIFESTYLE Andreas MIKKELSEN Skoda Motorsport driver GRAPHITE SINGLE LAYER CARBON HONEYCOMB SHEETS PERFORMANCE HEAT CONDUCTOR PARTNERSHIPS THERMAL REGULATION LIGHTWEIGHT COMPRESSIBLE Mario
Slide 16: Update on Strategy
UPDATE ON STRATEGY
Slide 17: 3 Clear Main Pillars for Further Growth
3 CLEAR MAIN PILLARS FOR FURTHER GROWTH SOLID GROWTH OPPORTUNITIES IN CORE MARKETS AND NEW TECHNOLOGY / HIGH PERFORMANCE SAFETY NICHES KEY DRIVERS 1 2 3 MOTORSPORT ORGANIC DIVERSIFICATION M&A GROWTH 17
Slide 18: Tightly Controlled Value Chain That Delivers Speed, Reliability and Customer Satisfaction
TIGHTLY CONTROLLED VALUE CHAIN THAT DELIVER SPEED, RELIABILITY AND CUSTOMER SATISFACTION FULL CONTROL OF SALES, STRONG INTERNAL KNOW-HOW MARKETING AND DISTRIBUTION SPEED TO MARKET TOTAL CONTROL DESIGN PLANNING HOMOLOGATION MARKETING SALES DISTRIBUTION VERTICALLY Product Design and Sales and INTEGRAT
Slide 19: Our Locations in 3 Different Continents
OUR LOCATIONS IN 3 DIFFERENT CONTINENTS 4 CUTTING EDGE 8 LOCATIONS 3 R&D CENTERS 6 PRO-SHOPS PRODUCTION CENTERS 19
Slide 20: Main Investments to Support the Growth
MAIN INVESTMENTS TO SUPPORT THE GROWTH TO SUPPORT THE GROWTH OF THE GROUP, AN INVESTMENT PLAN TO EXPAND THE OVERALL CAPACITY IS UNDERWAY MOORESVILLE: THE NEW PLANT RONCO SCRIVIA: INCREASING CAPACITY BAHRAIN: INCREASING CAPACITY AMERICA, MOORESVILLE EUROPE, RONCO SCRIVIA MIDDLE EAST, BAHRAIN Expansio
Slide 21: Pillar - Motorsport Organic Growth
PILLAR 1 – MOTORSPORT ORGANIC GROWTH CONSOLIDATING RACING FORCE’S LEADERSHIP IN LESS PENETRATED GEOGRAPHIES AND PRODUCT SEGMENTS AMERICAS EUROPE AND ASIA-PACIFIC ✓ Italy, UK, Germany and France are the main countries in ✓ Sales in USA +44% in FY22 vs FY21 Europe, representing ≈40% of total Group sal
Slide 22: Pillar - Diversification
PILLAR 2 - DIVERSIFICATION MOTORSPORT OTHER SPORTS DRIVER'S EYE HAS CONQUERED THE MOTORSPORT STAGE OPPORTUNITIES OUTSIDE …and many MOTORSPORT more to come WORLD SMALLEST AND LIGHTEST MICRO-CAMERA FOR LIVE TV BROADCASTING THE ONLY CAMERA SYSTEM HOMOLOGATED BY FIA MANDATORY TECHNOLOGY IN FORMULA 1 SIN
Slide 23: Pillar - Diversification
PILLAR 2 - DIVERSIFICATION FROM F1 ABP ADVANCED HELMET TO THE NEXT GENERATION AIR FORCE HELMETS TECHNOLOGY TRANSFER SAFETY IMPACT ABSORPTION PERFORMANCE WEIGHT – SIZE - FITTING PROCESS FROM HANDCRAFTING TO WATERJET PRECISION 23
Slide 24: Pillar - Diversification: Jet Pilot Helmets
PILLAR 2 - DIVERSIFICATION JET PILOT HELMETS ( TECHNICAL PARTNERSHIP WITH LIFT AIRBORNE) Lift Airborne was awarded the tender of the US AirForce in June 2023 NEXT DEVELOPMENTS Rotary wing helmets KEY UPDATES NEXT MILESTONES Extension of the partnership with LIFT Airborne for helicopter helmets, in m
Slide 25: Pillar - Diversification: Special Force and Police Riot Head Protection
PILLAR 2 - DIVERSIFICATION SPECIAL FORCE AND POLICE RIOT HEAD PROTECTION SPECIAL FORCE HEAD PROTECTION KEY UPDATES NEXT DEVELOPMENTS The first samples have been produced and are now in the testing phase for the Special Police Forces (project "Gladiator") in collaboration with Fraunhofer 2023 - First
Slide 26: Pillar - M&A
PILLAR 3 – M&A STRONG TRACK-RECORD OF SUCCESSFUL INTEGRATIONS IN RECENT YEARS PROVIDES SOLID GROUND FOR FURTHER M&A POTENTIAL IN A VERY FRAGMENTED MARKET INTEGRATE NEW TECHNOLOGY TO STRENGHTEN RFG POSITION IN THE MARKET TECHNOLOGY STRENGTHEN TECHNOLOGICAL CAPABILITIES NOT YET AVAILABLE IN RACING FOR
Slide 27: Economic and Financial Data 2022
2022 ECONOMIC AND FINANCIAL DATA
Slide 28: Consolidated P&L
CONSOLIDATED P&L Revenues (€m) and Growth (%) FY2022 Revenues Breakdown and Growth FY2022 – FY2021 Geographies 2020-2022 CAGR +32.1% 27% EMEA AMER APAC 58.9 +22.7% +44.3% +8.3% 63% 10% VS. 2021 VS. 2021 VS. 2021 EMEA AMER APAC 46.7 Segments 3% DRIVER’S CAR EQUIPMENT PARTS OTHER 24% 33.7 +30.1% +15.9
Slide 29: Consolidated P&L (cont'd)
CONSOLIDATED P&L (cont’d) EBITDA (€m) and Margin (%) NET INCOME (€m) and Margin (%) 15.9% 19.2% 19.8% 4.3% 10.6% 12.9% 7.6 11.7 9.0 4.9 5.4 1.4 FY20 FY21 FY22 FY20 FY21 FY22 The increase of EBITDA is due to 9.6 ml Euro higher gross margin, partially offset by 6.9 ml Euro higher operating expenses. N
Slide 30: Balance
BALANCE CAPEX (€m) NET WORKING CAPITAL (€m) 0.8m€ to increase 20.0 5.3 12.6 0.5 energy efficiency Acquisition of 9.8 0.9 4.3 10.3 Ronco Scrivia HQ for €3.0m 7.7 ≈ 10% stock 6.2 decrease in Q123 14.7 21.6 11.3 -7.7 -10.7 -12.4 1.1 -0.1 FY20 FY21 FY22 FY21 FY22 Inventory Trade Receivables Trade Payabl
Slide 31: 2022 Recap
2022 RECAP SALES ADJ. EBITDA 1 ADJ. NET INCOME 1 € 58.9m € 11.7m € 7.6m +26.1% vs 2021 +19.8% EBITDA Margin +12.9% NI Margin +15.6% 2014-2022 CAGR +30.5% vs 2021 +53.6% vs 2021 ADJ. CASH FLOW FROM OPS 1 FINANCIAL NET DEBT PROPOSED DIVIDEND € 3.2m ~ € 4.5m € 2.3m € 0.09ps +27.3% 0.4x Leverage vs € 5.
Slide 32: Current Trading
CURRENT TRADING
Slide 33: Outlook
OUTLOOK In the first two months of 2023: • the Group recorded significant double-digit growth in terms of turnover, updating the historical record; • as expected, and following the advance procurement strategy implemented in 2022, the level of inventories decreased significantly, following the sales
Slide 34: Thank You
THANK YOU Racing Force Group Barabino & Partners Roberto Ferroggiaro Luigi Rossi – Jacopo Rubino Stefania Bassi Giuseppe Fresa Investor Relations Media E-mail: s.bassi@barabino.it E-mail: g.fresa@barabino.it E-mail: ir@racingforce.com E-mail: media@racingforce.com mob: +39 335 6282667 mob: +39 348 5
Slide 35: RFG in Action
RFG in action
Slide 36: Appendix
APPENDIX
Slide 37: RFG on Stock Exchange Markets
RFG on Stock Exchange Markets ISSUER Racing Force S.p.A. LISTING VENUE Euronext Growth Milan (RFG) and Euronext Growth Paris (ALRFG) MARKET CAP Market capitalization ≈ € 130 mio OWNERSHIP 25.699.198 shares STRUCTURE SAYE 53% - Market 47% ANALYST Equita → BUY | Target: €6.8 COVERAGE TP-ICAP MIDCAP →
Slide 38: ESG Project - Key Goals
ESG PROJECT – KEY GOALS ON SEPTEMBER 10, 2021 RACING FORCE GROUP STARTED THE ESG PROJECT, WITH THE APPROVAL OF THE SUSTAINABILITY PLAN. ALL GOALS WILL BE REACHED WITHIN 2023. SOCIAL RESPONSIBILITY Social cohesion The Group encourages youth employment and with an average age of 37 years old, combined