Racing Force Spa · MIL:RFG
Racing Force Spa — Mid & Small in Milan 2022
40 slides from Racing Force Spa's conference presentation, Nov 30, 2022
Slide 1: The Beat of Racing Hearts
THE BEAT OF RACING HEARTS Mid & Small in Milan 29th - 30th November 2022
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 Gabriele Pedone Group Chairman and CEO Group Co-CEO CEO Racing Force USA Chairman Racing Force International CEO Racing Force International Chairman High Protection Systems CEO High Protection Systems BELL Co-Founder +15 Years of Industr
Slide 4: Introducing Racing Force Group
INTRODUCING RACING FORCE GROUP IN A RACING CAR SEE VIDEO 04
Slide 5: 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 6: 70+ Years of Uncompromised Innovation and Reliability
70+ YEARS OF UNCOMPROMISED INNOVATION AND RELIABILITY IN MOTORSPORT SAFETY EQUIPMENT Zeronoise is founded. MOU with LIFT to produce carbon shells Percivale’s brothers founded OMP establishes a subsidiary in OMP become the official Racing Spirit Project starts. for the Next Generation Fixed-Wing OMP
Slide 7: Unique Product Offering Covering the Full Spectrum of Motorsport Safety Equipment
UNIQUE PRODUCT OFFERING COVERING THE FULL SPECTRUM OF MOTORSPORT SAFETY EQUIPMENT AND BEYOND DRIVER EQUIPMENT CAR PARTS Fire Steering Car Racewear Kart-wear Helmets FHR Intercom Seats Harnesses Rollbars Extinguisher Wheels Accessories Systems HOMOLOGATED (70% of Products) HOMOLOGATED (70% of Product
Slide 8: The Partner of Choice: From Top Drivers to Amateurs
THE PARTNER OF CHOICE: FROM TOP DRIVERS TO AMATEURS, TEAMS AND REGULATORY BODIES SELECTED TOP DRIVERS SELECTED PARTNERSHIPS Lewis Hamilton Charles Leclerc Carlos Sainz George Russell Thierry Neuville (WRC driver) Kalle Rovanpera (WRC driver) Sébastien Ogier Valentino Rossi Noah Milell (WRC Champion)
Slide 9: 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 and 19.2% 46.7 2019 Pro-Forma Revenues 11.4% 15.9% 36.6 33.7 2019 Consolidated Revenues PF 25.7 18.4 % CAGR ‘14 – ’21: +14.2 2014 2015 2016 2017 2018 2019 PF
Slide 10: Motorsport Safety Equipment Market
MOTORSPORT SAFETY EQUIPMENT MARKET
Slide 11: A Strictly Regulated Market with Strong Barriers to Entry
A STRICTLY REGULATED MARKET WITH STRONG BARRIERS TO ENTRY 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 2019 KPIs €59.8bn of directly g
Slide 12: Leadership in a Fragmented Market
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 CAR EQUIPMENT Racewear Kartwear Helmets ENTRY LEVEL QUALITY FHR Intercom S
Slide 13: Racing Force Group Range of Products
RACING FORCE GROUP RANGE OF PRODUCTS
Slide 14: 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 14
Slide 15: Over 2,000 Products in Its Catalog
OVER 2,000 PRODUCTS IN ITS CATALOG Over 2,000 products in its catalog with the majority homologated to industry standards including FIA, FIA Karting, SFI and Snell APPAREL MOTORSPORTS OTHER APPAREL TOP OF RANGE PRO-RACING AMATEURS PRO-KARTING TEAMWEAR ONE LINE TECNICA LINE FIRST LINE KS LINE MECHANI
Slide 16: Helmets: Any Surface, Any Speed
ANY SURFACE ANY SPEED A selection from our wide range of models ADVANCED CARBON PRO SPORT MAG-10 MAG-10 HP10 RALLY RALLY CARBON RALLY PRO MAG RALLY - Rally - Rally - Rally - Rally OPEN FACE HELMETS - Offshore MAG-10 MAG-10 HP10 CARBON PRO MAG - Circuit - Circuit - Circuit - Circuit HP77 GTX3 CARBON
Slide 17: Zeronoise. Silence and Vision
ZERONOISE. “SILENCE” AND “VISION” Technology that improves performance AUDIO DEVICES HEADSETS RADIO HELMET KITS DRIVER’S EYE A PERFECT GROUP Communication systems and amplifiers Professional headsets, radio kits, The pioneering camera used in the Bell helmets are directly integrated for racing (circ
Slide 18: Racing Spirit. Racing DNA 365 Days a Year
RACING SPIRIT. “RACING DNA” 365 DAYS A YEAR We stole (borrowed) the spirit of racing PARTNERSHIPS JACKETS PANTS T-SHIRTS AND POLO OTHER PIRELLI, Toyota RD, Dallara and Skoda: supply of clothing to all Pirelli, Toyota Racing Development, Dallara and Skoda motorsport personnel worldwide FERRARI TRENTO
Slide 19: Update on Strategy Section
UPDATE ON STRATEGY SECTION
Slide 20: 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 AT IPO 1 ORGANIC GROWTH IN CORE MARKETS.. 2 ...AND NEW NICHES 3 EXTERNAL GROWTH CONSTANT RESEARCH FOR POTENTIAL COMPANIES TO ACQUIRE IN ORDER TO CONSOLID
Slide 21: Pillar 1 - Organic Growth in Core Markets
PILLAR 1 - ORGANIC GROWTH IN CORE MARKETS CONSOLIDATING RACING FORCE’S LEADERSHIP IN LESS PENETRATED GEOGRAPHIES AND PRODUCT SEGMENTS AMERICAS OPEN FACE HELMETS Sales in USA +46,7% in 1H22 vs 1H21 Open Face +143% in 1H22 vs 1H21 Brad Kselowski becomes the first NASCAR driver to wear OMP Appare
Slide 22: Tightly Controlled Value Chain
TIGHTLY AND CONTROLLED VALUE CHAIN DELIVERING 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 INTEGRATED Product Design and Engin
Slide 23: Main Investments to Support the Growth
MAIN INVESTMENTS TO SUPPORT THE GROWTH RACING FORCE IS EXPERIENCING SIGNIFICANT GROWTH, BOTH IN CORE BUSINESS AND IN DIVERSIFICATION PROJECTS. TO KEEP THE PACE AND CONTINUE TO INNOVATE RFG IS PLANNING INVESTMENTS IN A NEW PLANT AND IN INCREASING ITS OVERALL PRODUCTION CAPACITY MOORESVILLE: THE NEW P
Slide 24: Our Locations in 3 Different Continents
OUR LOCATIONS IN 3 DIFFERENT CONTINENTS 3 R&D AND 3 CUTTING-EDGE R&D 7 LOCATIONS 6 SHOW-ROOMS PRODUCTION CENTERS AND PRODUCTION CENTERS RONCO SCRIVIA ITALY SAKHIR BAHRAIN PISA ITALY 24
Slide 25: Pillar 2 - Growth in New Niches: Driver's Eye
CUTTING-EDGE TECHNOLOGY FEEDING LIVE TY FROM BEHIND THE VISOR SCREEN PILLAR 2 - GROWTH IN NEW NICHES DRIVER’S EYE LIVE TV BROACASTING KEY UPDATES FROM BEHIND THE HELMET VISOR Driver’s Eye consolidates and expand its footprint GENERATION 1 - 2021 in motorsport with a proven high profitable TECHNOLOGY
Slide 26: Pillar 2 - Growth in New Niches: Jet Pilot Helmet
PILLAR 2 - GROWTH IN NEW NICHES ( Cont’d ) JET PILOT HELMET JET PILOT HELMETS ( TECHNICAL PARTNERSHIP WITH LIFT AIRBORNE ) Press Release (05/09/2022): Kyle Kietzmann, Chief Commercial Officer of Racing Force USA, Inc. said ‘‘Racing Force is proud to participate as a technology partner of LIFT to dev
Slide 27: Pillar 2 - Special Force and Police Riot Head Protection
PILLAR 2 - GROWTH IN NEW NICHES ( Cont’d ) SPECIAL FORCE AND POLICE RIOT HEAD PROTECTION SPECIAL FORCE HEAD PROTECTION KEY UPDATES NEXT MILESTONES The first samples have been produced and are now in the testing phase for the First Certification and prototypes of SPF helmets and Riot helmets are expe
Slide 28: Pillar 3 - External Growth Through M&A
PILLAR 3 – EXTERNAL GROWTH THROUGH M&A INTEGRATE NEW TECHNOLOGY TO STRENGHTEN RFG POSITION IN THE MARKET TECHNOLOGY STRENGTHEN TECHNOLOGICAL CAPABILITIES NOT YET AVAILABLE IN RACING FORCE CURRENT OFFERING BROADEN GEOGRAPHICAL DIVERSIFICATION EXPANDING IN NEW MARKETS DIVERSITY EXPANDING PRODUCTS OFFE
Slide 29: Economic and Financial Data 2021
2021 ECONOMIC AND FINANCIAL DATA
Slide 30: 2021 at a Glance
2021 AT A GLANCE SALES ADJ. EBITDA1 ADJ. NET INCOME 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 ADJ. CASH FLOW 1 NET DEBT DIVIDEND € 5.5m ~€ 1.0m € 1.7m +61.5% Cash Conversion 0.1x Leverage € 0.07ps vs € 2.4m in 20
Slide 31: 1H 2022
1H 2022
Slide 32: Consolidated P&L
CONSOLIDATED P&L Revenues (€m) and Growth (%) 1H 2022 Revenues Breakdown and Growth 1H2022 – 1H2021 Geographies 1H2020 – 1H2022 CAGR + 40.6% 27% EMEA AMER APAC 33.6 +33% +49% +14% 63% 10% 24.9 Segments 2% DRIVER’S CAR .7% 27% EQUIPMENT PARTS OTHER +34 17.0 +40% +26% -2% 71% % 6.8 +4 Channels 16% TEA
Slide 33: Consolidated P&L (cont'd)
CONSOLIDATED P&L (cont’d) EBITDA (€m) and Margin (%) NET INCOME (€m) and Margin (%) 14.5% 24.0% 27.8% 4.5% 14.4% 20.7% 9.3 6.9 6.0 3.6 2.5 0.8 1H20 1H21 1H22 1H20 1H21 1H22 The increase of EBITDA is due to i) higher gross margin, mainly due to a different Net income increased by 3.3 ml Euro compared
Slide 34: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET CAPEX (€m) NET WORKING CAPITAL (€m) 12.6 17.1 4.0 10.0 0.9 Acquisition of 7.7 11.0 Ronco Scrivia HQ 8.9 for €3.0m 11.6 14.7 16.0 (8.5) (10.7) (9.3) 1.0 (2.0) (0.4) 0.5 1H21 2021 1H22 1H20 1H21 1H22 Inventory Trade Receivables Trade Payables Other Receivables and Payables C
Slide 35: RFG's ECM Path
RFG’s ECM PATH
Slide 36: 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 ≈ € 125mio OWNERSHIP 23.757.450 shares STRUCTURE SAYE (57.01%), GMP Investments Holding Limited (5.40%), Managers (7.48%), Market (30.
Slide 37: Thank You
THANK YOU Racing Force Group Barabino & Partners Roberto Ferroggiaro Luigi Rossi 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 5703197
Slide 38: RFG in Action
RFG in action Acronis “ ai. —
Slide 39: Appendix
APPENDIX
Slide 40: ESG Project - Key Goals
ESG PROJECT – KEY GOALS 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 years old, com