Racing Force Spa · MIL:RFG
Racing Force Spa — Investor Presentation (May 2022)
32 slides from Racing Force Spa's investor presentation, May 2022
Slide 1: Group Profile
Group Profile RFG – Group Profile 202205
Slide 2: Notice to Recipient - Strictly Confidential
N O T I C E TO R E C I P I E N T - S T R I C T L Y C O N F I D E N T I A L 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 concernin
Slide 3: Agenda
A G E N DA R A C I N G 2 0 2 1 E C O N O M I C A N D UPDATE ON CURRENT F O R C E A T A F I N A N C I A L G L A N C E D A T A STRATEGY TRADING 3
Slide 4: Today's Speakers and the International Leadership Team
TO DAY S’ S P EA K E RS A N D T H E I N T E R N AT I O N AL L EA D E RS H I P T EA M Paolo Delprato Alexandros Miotto Haristos Roberto Ferroggiaro Group Chairman and CEO Group COO Group CFO Chairman Racing Force International Zeronoise Co-Founder Chairman High Protection Systems +15 Years of Industr
Slide 5: Racing Force at a Glance
R A C I N G F O R C E AT A G L A N C E RACING FORCE OPERATES IN THE DEVELOPMENT, PRODUCTION AND MARKETING OF SAFETY COMPONENTS AND PROTECTION EQUIPMENT FOR THE MOTORSPORT INDUSTRY R AC ING F O R C E G R OU P TODAY Brands Numbers Worldwide Leadership in Motorsport Safety Equipment Widest range of pro
Slide 6: 70+ Years of Innovation and Reliability in Motorsport Safety Equipment
7 0 + Y EA RS O F I N N OVAT I O N A N D R E L I A B I L I T Y I N M OTO RS P O R T S A F E T Y EQ U I P M EN T A new historical record for Racing Force Group ? Zeronoise is founded Percivale’s brothers founded OMP establishes a subsidiary in OMP become the official Racing Spirit Project starts OMP
Slide 7: Unique Product Offering Covering the Full Spectrum of Motorsport Safety Equipment
U N I Q U E P R O D U C T O F F E R I N G C OV E R I N G T H E F U L L S P E C T R U M O F M OTO RS P O R T S A F E T Y EQ U I P M E N T A N D B E YO N D D R I V E R EQUIPMENT CAR PARTS Fire Steering Car Racewear Kart-wear Helmets FHR Intercom Seats Harnesses Rollbars Extinguisher Wheels Accessories
Slide 8: A Strictly Regulated Market with Strong Barriers to Entry
A S T R I C T LY R EG U L AT E D M A R K E T W I T H S T RO N G BA R R I ERS TO E N T RY Motorsport: “any competition or related sport activity restricted to vehicles that ( i) have at least four non-aligned wheels and (ii) are constantly and entirely controlled by a driver on board the vehicle” FIA
Slide 9: Leadership in a Fragmented Market Dominated by 3 Players
L EA D E RS H I P I N A F R AG MEN TE D M A R K E T D O M I N ATE D BY 3 P L AY E RS Headquarter SINGLE EXTENDED RANGE Market Sparco Worldwide Simpson (mainly USA) PRODUCT Worldwide Impact USA Stilo Worldwide Main brands PROFESSIONAL RACING FORCE GROUP Player 1 QUALITY Player 2 Range Offer Racewear
Slide 10: The Partner of Choice: From Top Drivers to Amateurs, Teams and Regulatory Bodies
T H E PA RT N E R O F C H O I C E : F RO M TO P D R I V E RS TO A M AT E U RS , T EA MS A N D R EG U L ATO RY B O D I ES S E L E C T E D TOP D R I V E R S SELECTED PARTNERSHIPS Lewis Hamilton Charles Leclerc Carlos Sainz George Russell Thierry Neuville ( W R C driver) Oliver Solberg ( W R C driver)
Slide 11: Our Locations in Different Continents
O U R LO C AT I O N S I N 3 D I F F E R E N T C O N T I N E N TS 3 CU T T ING- EDGE R&D AND PRODUCTION C E N T E R S R O N C O S C RI V I A ITALY S A K HIR B A H R A IN PISA ITALY 7 Locations 3 R&D and Production Centres 6 Show-Rooms Foot note 11
Slide 12: Tightly Controlled Value Chain
T I G H T LY A N D C O N T R O L L E D VA LU E C H A I N D E L I V E R I N G S P E E D, R E L I A B I L I T Y A N D C U S TO M E R S AT I S FAC T I O N F U L L C O NT R O L O F S A L E S , S T R O N G I N T E R NAL KNOW-HOW MARKETING AND DISTRIBUTION S P E E D TO MARKET TOTAL C O N T R O L DESIGN PL
Slide 13: A Long Term Double-Digit Growth History
A L O N G T E R M D O U B L E - D I G I T G R O W TH H I S T O R Y SALES Acquisition Consolidated turnover (€ M) EBITDA Margin (%) of 52% decrease in FIA # Racing events and 19.2% 46.7 11.4% 2019 Pro-Forma 15.9% Revenues 36.6 33.7 2019 Consolidated Revenues PF 25.7 18.4 2014 2015 2016 2017 2018 2019
Slide 14: Racing Force: A Winning Story
R A C I N G F O R C E : A W I N N I N G S TO RY ATTRACTIVE NICHE MARKET Highly fragmented and attractive niche market with unique features in terms of growth 1 and resiliency coupled with significant barriers to entry, but tremendous visibility UNIQUE BRANDS HERITAGE 2 Iconic global brands enjoying
Slide 15: Economic and Financial Data 2021
2021 ECONOMIC AND FINANCIAL DATA
Slide 16: 2021 at a Glance
2 0 2 1 AT A G L A N C E SALES A DJ. EBITDA 1 A DJ. N ET I NCOME 1 €46.7m €9.0m €4.9m +38.4% vs 2020 +19.2% EBITDA Margin +10.6% NI Margin +14.2% 2014-2021 CAGR +67.0% vs 2020 +242.9% vs 2020 A DJ. C ASH F LOW1 N ET D EBT PROPOSED D IVIDEND €5.5m ~€1.0m €1.7m +61.5% Cash Conversion 0.1x Leverage €0.
Slide 17: Consolidated P&L
C O N S O L I D ATE D P & L REVENUES (€M) AND YOY GROWTH (%) FY2021 REVENUES BREAKDOWN AND GROWTH 2021-2020 GEOGRAPHIES 2019-2021 CAGR 12% EMEA AMER APAC +12.9% 24% +37% + 33% + 56% 64% -7.8% +38.4% 46.7 SEGMENTS 3% DRIVER’S CAR 36.6 26% OTHER EQUIPMENT PARTS 33.7 +53% + 13% + 11% 71% CHANNELS 10% T
Slide 18: Consolidated P&L (cont'd)
C O N S O L I D ATE D P & L ( c o n t ’ d ) ADJ. EBITDA1 (€M) AND MARGIN (%) ADJ. NET INCOME1 (€M) AND MARGIN (%) 11.4% 15.9% 19.2% 6.6% 4.3% 10.6% 9.0 4.9 5.4 4.2 2.4 1.4 2 2 2019PF 2020 2021 2019PF 2020 2021 ▪ The increase of EBITDA margin as a % of sales is due to the increase ▪ Net income has in
Slide 19: Consolidated Balance Sheet
C O N S O L I D ATE D B A L AN C E S H E E T CAPEX (€M) NET WORKING CAPITAL (€M) 5.3 12.6 Acquisition of 7.9 9.8 0.9 Ronco Scrivia HQ 7.7 for €3.0m 6.3 6.2 11.6 11.3 14.7 1.5 (7.7) 1.1 (9.1) (10.7) (0.9) (0.1) 2 2019PF 2020 2021 2 2019PF 2020 2021 Inventory Trade receivables Trade payables Other Rec
Slide 20: Update on Strategy
UPDATE ON STRATEGY 20
Slide 21: 3 Clear Main Pillars for Further Growth
3 C L EA R M A I N P I L L A RS F O R F U RT H E R G ROW TH SOLID GROWTH OPPORTUNITIES IN CORE MARKETS AND NEW TECHNOLOGY / HIGH PERFORMANCE SAFETY NICHES KEY DRIVERS AT IPO 1 ORGANIC GROWTH IN CORE MARKETS.. 2 … AND NEW NICHES 3 EXTERNAL GROWTH CONSTANT RESEARCH FOR POTENTIAL COMPANIES TO ACQUIRE I
Slide 22: Key Updates - Pillar 1 Organic Growth in Core Markets
P I L L A R 1 - O R G AN I C G ROW T H I N C O R E M A R K E TS CONSOLIDATING RACING FORCE’S LEADERSHIP IN LESS PENETRATED GEOGRAPHIES AND PRODUCT SEGMENTS AMERICAS OPEN FACE HELMETS ✓ Sales in USA +37% vs 2020 ✓ Open Face +177% vs 2020 ✓ Brad Keselowski becomes the first NASCAR driver to wear OMP A
Slide 23: Pillar 2 - Growth in New Niches: The Driver's Eye
P I L L A R 2 - G ROW T H I N N E W N I C H ES THE DRIVER’S EYE KEY UPDATES CUTTING-EDGE TECHNOLOGY FEEDING LIVE TV FROM BEHIND THE VISOR SCREENS ✓ Racing Force Group signs Driver’s Eye agreement with Formula1 WORLD SMALLEST/LIGHTEST CAMERA FOR LIVE TV BROACASTING ✓ Racing Force Group signs multiyea
Slide 24: Pillar 2 - Jet Pilot Helmets
P I L L A R 2 - G ROW T H I N N E W N I C H ES ( C o nt ’d ) JET PILOT HELMETS JET PILOT HELMETS (TECHNICAL PARTNERSHIP WITH LIFT AIRBORNE) “Finally, we have a modern helmet to go with these modern fighters” KEY UPDATES NEXT MILESTONES ✓ Successfully presented at the Dubai ➢ Results of first tender
Slide 25: Pillar 2 - Special Force and Police Riot Head Protection
P I L L A R 2 - G ROW T H I N N E W N I C H ES ( C o nt ’d ) SPECIAL FORCE AND POLICE RIOT HEAD PROTECTION SPECIAL FORCE HEAD PROTECTION KEY UPDATES NEXT MILESTONES ✓ The first samples have been ➢ Certification and the first produced and are now in the testing prototypes of SPF helmets and Riot phas
Slide 26: Pillar 3 - External Growth through M&A
P I L L A R 3 – E X T E R N AL G ROW TH T H RO U G H M & A TECHNOLOGY • STRENGTHEN TECHNOLOGICAL CAPABILITIES NOT YET AVAILABLE IN RACING FORCE CURRENT OFFERING • BROADEN GEOGRAPHICAL DIVERSIFICATION EXPANDING IN NEW MARKETS DIVERSITY • EXPANDING PRODUCTS OFFERING • DIVERSIFY AND EXPAND THE CUSTOMER
Slide 27: Current Trading
CURRENT TRADING 27
Slide 28: Outlook - What's Next
O U T LO OK – W H AT ’ S N E X T 2022: ANOTHER HISTORICAL RECORD ? ▪ The outbreak of conflict between Russia and Ukraine has raised a geo-political risk at a global level, carrying very strong economic and financial tensions on the markets. Regardless of how the current crisis will be resolved, cons
Slide 29: Appendix
APPENDIX 29
Slide 30: ESG Project - Key Goals
ES G P ROJ EC T – K E Y G OA L S ON SEMPTEMBER 10, 2021 RACING FORCE GROUP STARTED THE ESG PROJECT, WITH THE APPROVAL OF THE SUSTAINABILITY PLAN. ALL THE GOALS WILL BE RECAHED WITHIN 2023. Social responsibility • Social cohesion The Group encourages youth employment and with an average age of 37 yea
Slide 31: IPO - November 16, 2021
I P O - N o ve m b e r 1 6 , 2 0 2 2 ISSUER Racing Force S.p.A. LISTING VENUE Euronext Growth Milan € 31.2 mln OFFER SIZE 6.9 mln shares (4.5 mln new shares, 1.8 mln sold shares, 0.6 mln Over Allotment) – 29% SELLING SAYE S.p.A. SHAREHOLDERS Nehoc Systems Limited SYNDACATE Sole Global Coordinator an
Slide 32: Thank You
T H A N K YOU Racing Force Group Barabino & Partners Roberto Ferroggiaro Luigi Rossi & Paolo Bertuccio 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