Comer Industries Spa · MIL:COM
Comer Industries Spa — AIM Italia Conference 2019
30 slides from Comer Industries Spa's conference presentation, May 27, 2019
Slide 1: AIM Italia Conference 2019
AIM Italia Conference 2019 Milan, 27th May 2019 1
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Comer Industries S.p.A (“Comer Industries”) for use during meetings with investors and financial analysts and is solely for information purposes. The information set out herein has not been verified by an independent audit company. Neither the Company no
Slide 3: Agenda
AGENDA 1. COMER INDUSTRIES IN A NUTSHELL 2. BUSINESS MODEL 3. MARKET AND STRATEGY 4. KEY FINANCIAL 5. APPENDIX COMER INDUSTRIES Property 3
Slide 4: 1. Comer Industries in a Nutshell
1. COMER INDUSTRIES IN A NUTSHELL 4
Slide 5: Vision, Mission and Values
VISION, MISSION AND VALUES VISION Creating an easy world through sustainable food, streets, houses and energy. MISSION We run vertical innovative solutions for agriculture and industrial business. We boost our strong global leadership position. Aware of our roots and challenging in depth our identit
Slide 6: Company Overview: Net Revenues
COMPANY OVERVIEW NET REVENUES 379m 342m 304m +12 % CAGR 16-18 +12,5% +10,8% 2016 2017 2018 COMER INDUSTRIES Property 6
Slide 7: Company Overview: EBITDA
COMPANY OVERVIEW EBITDA 38m 30m +73 % 22m From 2016 to 2018 +36,4% +26,7% 2016 2017 2018 COMER INDUSTRIES Property 7
Slide 8: Company Overview: People
COMPANY OVERVIEW PEOPLE * 1.387 1.362 +49 % 1.313 +49 +25 2016 2017 2018 * Average employees COMER INDUSTRIES Property 8
Slide 9: Distribution and Footprint
COMPANY OVERVIEW DISTRIBUTION E FOOTPRINT SALES IN 54 COUNTRIES +49 % 8 PRODUCTION PLANTS 8 FOREIGN SUBSIDIARIES 9
Slide 10: Shareholding Structure
SHAREHOLDING STRUCTURE Total shares number: 20.350.000 Latest Update: 26 April 2019 % of share capital Market 25% Eagles OAK S.r.l. 75% COMER INDUSTRIES Property 10
Slide 11: Governance & Corporate Offices
GOVERNANCE & CORPORATE OFFICES BOARD OF DIRECTORS BOARD OF STATUTORY AUDITORS Arnaldo Matteo Storchi Enrico Corradi Camuffo President & CEO President Board member Cristian Storchi Marco Storchi Luigi Gesaldi Corrado Baldini Vice President Board member Statutory auditor Statutory auditor Luca Gaiani
Slide 12: 2. Business Model
2. BUSINESS MODEL 12
Slide 13: Where We Are in the Value Chain
WHERE WE ARE IN THE VALUE CHAIN Tier 1 Original Tier 2 raw supplier Equipment material Customers Manufactures suppliers (OEM) AGRI Farmers Oil & Gas INDUSTRIAL Construction players OEM Construction Mining Wind plants owners OEM Energy COMER INDUSTRIES Property 13
Slide 14: Who We Are & What We Do
WHO WE ARE & WHAT WE DO Comer Industries is a global player in mechatronic solutions and integrated systems for power transmission. Transmissions are designed to move or to bring power to the various parts of customer’s vehicles. COMER INDUSTRIES Property 14
Slide 15: Global Operations Footprint
GLOBAL OPERATIONS FOOTPRINT 2.100 sqm; New 2018 China 16 test cells; Pinghu, Zhejiang 1 climatic chamber; Functional, endurance, crash and other tests. R&D Center China Shaoxing, Zhejiang USA Charlotte, North Carolina Gearboxes Reggiolo (RE) Legenda India Manufacturing plant Bangalore, Karnataka Ass
Slide 16: 3. Market and Strategy
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Slide 17: Food Security
FOOD SECURITY In 10 years the world may not be able to feed itself according to WEF, World Economic Forum. By 2027 the world could be facing a 214 trillion calorie deficit – in just a decade we won’t have enough food to feed the planet. By 2050, the world’s population is expected to reach 9.1 billio
Slide 18: Opportunity and Strategy Pillars
OPPORTUNITY AND STRATEGY PILLARS POTENTIAL MARKET SIZE KEY ASSETS GENERATIONAL TRANSITION FULLY COMPLETED. NEW, EXPERIENCED MANAGEMENT FULLY OPERATIONAL. ROBUST BUSINESS MODEL. 3+ €b 5+ €b 0.2 €b DIVERSIFIED PORTFOLIO OF PRODUCTS. STRONG BACKLOG AND SOLID MARKET SUSTAINING ORGANIC GROWTH. STRATEGY P
Slide 19: 4. Key Financials
4. KEY FINANCIALS 19
Slide 20: Key 2018 Consolidated Results
KEY 2018 CONSOLIDATED RESULTS Euro in millions 2016 2017 2018 Var.% YoY Net revenues 303,7 342,1 379,0 10,8% EBITDA 22,0 29,8 38,4 28,9% Margin 7,2% 8,7% 10,1% 1,4p.p. EBIT 9,8 17,1 24,9 45,7% Margin 3,2% 5,0% 6,6% 1,6p.p. Net income 6,7 11,4 15,7 38,3% Margin 2,2% 3,3% 4,1% 0,8p.p. TWC 76,0 74,5 84
Slide 21: Results by Business Area
RESULTS BY BUSINESS AREA Euro in millions 2016 2017 2018 Var.% YoY Var.% YoY Net revenues 184,4 215,9 231,3 17,1% 7,1% As % of Group revenues 60,7% 63,1% 61,0% 2018 AGRI EBITDA 16,4 22,2 28,0 61% 34,9% 26,1% Margin 8,9% 10,3% 12,1% 1,4p.p. 1,8p.p. EBIT 8,2 13,9 19,6 69,9% 41,0% of total Margin 4,4%
Slide 22: Revenues by Geography and Product Line
REVENUES BY GEOGRAPHY AND PRODUCT LINE 13,9 15,0 17,6 11,6 27,3 44,3 7% 8% 91,7 91,8 91,6 6% 6% 14% 23% 20% 182,8 209,1 44% 228,1 44% € € € EMEA NORTH AMERICA ASIA PACIFIC LATIN AMERICA COMER INDUSTRIES Property 22
Slide 23: TWC and Debt Ratios
TWC AND DEBT RATIOS Evolution of TWC items 200,0 25,0% 21,8% 30,0% 22,3% 150,0 20,0% 85,6 93,0 100,0 76,4 10,0% Euro m 50,0 77,4 0,0% 68,5 69,5 - (10,0%) (68,9) (80,6) (86,1) (50,0) (20,0%) (100,0) (30,0%) 31Dec16A 31Dec17A 31Dec18A Trade receivables Stock Trade payables TWC as % of net revenues Net
Slide 24: 5. Appendix
5. APPENDIX 24
Slide 25: Product Lines and Applications
PRODUCT LINES AND APPLICATIONS PRODUCT LINES GEARBOXES PLANETARY DRIVES POWERTRAIN SYSTEMS WHEEL DRIVES DRIVESHAFTS APPLICATIONS MINING MACHINERY COMBINED TRACTORS HARVESTERS CRANES & SELF PROPELLED COMBINED HARVESTERS & SELF CONSTRUCTION EQUIPMENT MACHINES PROPELLED MACHINES CONSTRUCTION EQUIPMENT
Slide 26: Examples of Agri Applications
EXAMPLES OF AGRI APPLICATIONS ✓ Land preparation machines ✓ Soil tillage machines AGRI ✓ Crop treatment machines ✓ Forage and hay machines ✓ Biogas systems ✓ Corn and grain headers ✓ Combines and forage harvesters ✓ Forage mixing and distribution machines ✓ Tractors COMER INDUSTRIES Property 26
Slide 27: Examples of Industrial Applications
EXAMPLES OF INDUSTRIAL APPLICATIONS INDUSTRIAL ✓ Construction machines ✓ Road construction machines ✓ Forestry machines ✓ Mining machines ✓ Material handling Renewable Energy ✓ Water treatment machines COMER INDUSTRIES Property 27
Slide 28: Main Milestones from 1970 to Date
MAIN MILESTONES FROM 1970 TO DATE 1970: The Storchi family founds CO.ME.R. (Costruzioni Meccaniche Riduttori) specialized in the manufacture of mechanical transmissions for agricultural machinery. 1985: Subsidiaries are set up in France, Germany, Great Britain and the United States. 1985-1990: Comer
Slide 29: Group Structure
GROUP STRUCTURE Trading company Comer Industries SpA Sales office legal entity Reggiolo (RE), Italy Production company (Head Quarter) Comer Industries Comer Industries Comer Industries UK Comer (Shaoxing) Co Ltd 100% 100% Components Srl Ltd 100% 100% GmbH Shaoxing, China Matera, Italy Leicester, UK
Slide 30: Thanks for Your Attention
THANKS FOR YOUR ATTENTION COMER INDUSTRIES S.P.A www.comerindustries.com ir@comerindustries.com 30