Esautomotion Spa · MIL:ESAU
Esautomotion Spa — Investor Presentation (June 2024)
43 slides from Esautomotion Spa's investor presentation, Jun 5, 2024
Slide 1: June 5th 2024
June 5th 2024
Slide 2: Company Overview
Section 1 Company Overview 2
Slide 3: At a Glance
At a Glance 3 • Esautomotion (ESA) develops and sells Integrated Mechatronic CNC FY23 Financials Systems (Software and HW), Motors, Drivers and other tools for the automation of industrial production machines €35.7mn 49% Revenue Foreign Revenue • ESA is the only manufacturer in the world that offers
Slide 4: Key Milestones
Key Milestones 4 Since the management buyout, our strategy is based on the following drivers of growth: FOCUS ON SYNERGIC AND PROFITABLE MARKET NICHES 35,7 8 ,0 3 85,0% 34,1 4% HARDWARE OPTIMIZATION AND A COMPLETE FULL-PACKAGE 75,0% + 14. 12-23 3 ,0 R 20 CAG 28,6 INTERNATIONALIZATION 65,0% 8 ,0 2 55
Slide 5: Footprint and Distribution
Footprint and Distribution ITALY 1 R&D Department USA BARCELONA 1 Sales Sales SHANGHAI Subsidiary 1 Subsidiary Production Spain&Portugal San Marino Brazil 1 Site 0,3% 2,8% 5,6% Other 7,2% TURKIYE Italy SAN PAOLO 1 Sales 51,1% Subsidiary Production Turkey 15,9% 1 Site Headquarter China Subsidiary 17,
Slide 6: Management and BoD
Management and BoD 6 GIUSEPPE ZOTTOLI Independent Director and OPC Chairman FRANCO FONTANA ANDREA SENZOLO Having graduated in Economics, Giuseppe Zottoli Chairman and Founder Sales Manager and Board Member has been a chartered accountant since 1996 and Andrea Senzolo joined ESA in 2012. Previously,
Slide 7: M&A
Section 2 M&A 7
Slide 8: Acquisition of Sangalli Servomotori Srl
Acquisition of Sangalli Servomotori Srl 8 BINDING PURCHASE AGREEMENT Deal Structure and Timing • On 10th July 2023 ESA has finalized the acquisition of 65% of Sangalli's business – • Purchase Price = €10,000,000 – NFP one of its strategic suppliers providing electric motors market. The operation is
Slide 9: Strategic rationale of the acquisition (1/2)
Strategic rationale of the acquisition (1/2) 9 By integrating a strategic supplier - in 2022 Sangalli provided 12% of the total purchases of goods - ESA will: 1. reinforce the presence of high energy performance and low environmental impact motors in the Company product portfolio 2. increase the con
Slide 10: Business Overview
Section 3 Business Overview 10
Slide 11: Products (1/2)
Products (1/2) 11 INTEGRATED CNC SYSTEM… …FOR CLIENTS’ AUTOMATED MACHINES to process Metal, Wood, Marble and Other Materials The Brain: CNC SOFTWARE CNC Software integrated with HW sends commands to determine and control machine movements The Nervous System: DRIVERS Managed by CN, control motor’s sp
Slide 12: Products (2/2)
Products (2/2) 12 We develop and sell CNC SW and HW dedicated to several applications All the CNC application software share the same user interface Dedicated Software Advantages Better performance Cost reduction CNC APPLICATION SOFTWARE Strong integration with the customer for each type of final ma
Slide 13: Customer Service – Teleassistance
Customer Service – Teleassistance 13 Spare parts reparation Sales/Installation Support 1 On-site and 24/24 online worldwide support and technical assistance throughout the whole cycle 2 Subsidiaries or Local Partners (sales/service) follow our customers in theirs daily needs 3 Our Headquarter gives
Slide 14: R&D
R&D 14 €1.34mn 31 €11.8mn R&D Investments R&D R&D Investments In FY23 Employees since 2012 R&D Investments (€mn) + 7.7% -23 ALL HW, SW, APPLICATIONS SOLD ARE UNDER ESA’S IP 2012 CAG R 1,32 1,34 1,22 1,19 1,12 1,03 1,03 0,86 • Growing investments in R&D have enabled ESA to create 0,71 0,70 innovative
Slide 15: Areas of R&D Investments
Areas of R&D Investments 15 Hardware Software 4.0 / Networking New devices Intel versus ARM technology • 3D Full interconnection • Tool (cpu used for Smartphone) • CAD between machines • Sensors • Multicore CPU • Predictive maintenance • OPC-UA protocol • Laser measurement • Distribuited Architectur
Slide 16: Industry 4.0
Industry 4.0 16 Smart Bending EsaFour4.0 Smart Tracer Assistant A special smartwatch A suite of four 100% Industry An app that allows to capable of receiving the voice 4.0 software, allowing the remotely check in real time commands of an operator bidirectional exchange of production data, 24 hours a
Slide 17: Industry 5.0
Industry 5.0 CONTROL UNIT NETWORK SWITCH (CNC or PLC) (local network) Corporate ethernet network connection DATABASE DATALOGGER PC ENERGY METER CARD SERVER Reading consumption and production data, historicization on the company database (the PC uses two Ethernet ports but requires a network switch)
Slide 18: Customers: growing old ones and adding new ones
Customers: growing old ones and adding new ones 18 Customer Loyalty Dynamics 35,4 33,8 28,3 22,7 19,7 18,0 18,3 17,5 15,2 16,3 14,0 12,2 10,6 11,3 10,8 8,0 8,2 8,8 8,19,8 9,3 7,4 7,3 5,8 6,3 6,4 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Sales from clients active since 2011 (€m
Slide 19: Customer Acquisition and Interaction
Customer Acquisition and Interaction 19 Difficult to enter and difficult to exit UP/CROSS SELLING NEEDS ANALYSIS and FIRST CONTACT Acquire new costumers with high- SOLUTIONS PROPOSITION end solutions and then conquer We analyzes customers' shares selling low-end solutions References products and pro
Slide 20: Case Studies (1/3)
Case Studies (1/3) 20 Acquisition Case Study Up-selling Case Study Cross-selling Case Study Golden Arrow Water Jet Equipment CRRC Corporation Limited (CRRC), is the Yawei Wuxi, the largest Chinese Manufacturing Co. of Shanghai is a manufacturer of press brakes, already largest manufacturer of railwa
Slide 21: Case Studies (2/3)
Case Studies (2/3) 21 Acquisition Case Study Up-selling Case Study The US subsidiary of Mitsubishi, SCM is a leading company in the wood producer itself of numerical controls, has sector, with more than 1,200 machines decided to equip part of its press-bending produced per year. machines with ESA CN
Slide 22: Case Studies (3/3)
Case Studies (3/3) 22 Argesystems Automatic Tool Changer May 2019: the biggest Chinese Manufacturer This company developed together with us a The biggest Pressbrake/Laser new device to replace an heavy job: tools manufacturer in the world. We customize changing on press brake. This device uses our C
Slide 23: Market
Section 4 Market 23
Slide 24: CNC market: focus on niches to dominate them
CNC market: focus on niches to dominate them 24 CNC market global evolution Automation 6 6.9% 14.0 2017-202 Market CAGR 12.0 Dimension: 200 $/B 10.0 ? -25 COVID-19 %Y oY ($/billion) 8.0 Mechatronics 6.0 Market Dimension: 54 $/B 4.0 (27% of Automotion) 2.0 0.0 CNC Market CNC Other Machines 2017E 2018
Slide 25: FANUC benchmark in CNC cyclical market (1/4)
FANUC benchmark in CNC cyclical market (1/4) 25 • In 2023, Fanuc's FA division generated a revenue of approximately ¥194 billion, which is roughly €1.242 billion (29/12/23 exchange rate) , equal to of 35 times ESA. • Fanuc's FA division includes CNC, ;Motors, Drivers and various other components, li
Slide 26: Financial performance comparison in a cyclical market (1/4)
Financial performance comparison in a cyclical market (1/4) 26 ESAUTOMOTION vs FANUC (FA division) Sales Revenues 247,0 254,2 222,5 210,1 213,9 213,9 208,1 194,1 186,3 164,0 153,7 138,8 28,4 33,8 35,4 15,2 18,0 18,3 17,5 8,0 8,2 8,8 9,8 12,2 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021
Slide 27: Financial Performance comparison in a cyclical market (2/4)
Financial Performance comparison in a cyclical market (2/4) 27 ESAUTOMOTION vs FANUC (FA division) Cumulative 2012-2023A Sales (€mn) -1% 2012-23A CAGR 1.5395 +14% 2012-23A CAGR 214 TOTAL 2012-2023A Sales Esau (€mn) Sales Fanuc FA (€mn) Fanuc FA represents the cyclicality of the CNC market. 2012-23A
Slide 28: Financial Performance comparison in a cyclical market (3/4)
Financial Performance comparison in a cyclical market (3/4) 28 ESAUTOMOTION vs FANUC (FA division) Throughout the year, especially in FY2023, Esautomotion surpassed the growth rates of Fanuc's FA division, the Japanese global leader in CNC (a proxy for the global CNC market). • 2023 vs 2022 change o
Slide 29: Financial Performance comparison in a cyclical market (4/4)
Financial Performance comparison in a cyclical market (4/4) ESAUTOMOTION vs FANUC (FA division)
Slide 30: Financial Performance comparison in a cyclical market (3/4)
Financial Performance comparison in a cyclical market (3/4) 30 ESAUTOMOTION vs FANUC (FA division) Profitabilty Margins Esautomotion's profitability margins trended similarly to Fanuc’s, especially in the last three years.
Slide 31: Features of market applications
Features of market applications 31 METAL FORMING METAL CUTTING (LASER) ✓ Very strong development in the world, especially in China ✓ Great relevance of Turkey and China ✓ Most of machines equipped with plasma technology, oxy, ✓ Fundamental machine for developing countries punching and shears will be
Slide 32: Main Competitors
Main Competitors 32 Our software is recognized as a CNC standard for industrial machines in the sheet metal segment No turn key solutions No turn key solution No turn key solutions
Slide 33: Counter-cyclical strategy adopted in 2019-2020 has driven success
Counter-cyclical strategy adopted in 2019-2020 has driven success 33 STRATEGIC GOAL ACTION PLAN DESCRIPTION Slide made 1 Customers don’t invest in additional machines but mainly replace the on 2019 Facing a lower Intensify high-end old ones. They look for: market demand products development • Cost r
Slide 34: Counter-cyclical strategy adopted in 2H2023-2026 has driven success
Counter-cyclical strategy adopted in 2H2023-2026 has driven success 34 STRATEGIC GOAL ACTION PLAN DESCRIPTION Slide made 1 Customers dot’t invest in additional machines but mainly replace the old ones. They look for: on 2H2023 Facing a lower Intensify high-end • Cost reduction through more automatio
Slide 35: Key Financials
Section 5 Key Financials 35
Slide 36: FY23 Financial Results
FY23 Financial Results 36 • In FY23, revenue grew by 4.6% compared to FY22. The growth REVENUE EBITDA Adjusted rate of 17.2% recorded in 1H23 compared to 1H22 was gradually +4.6% offset in 2H23. The level of revenue was influenced by: - End of highly disruptive phenomena such as: i) shortages of 35,
Slide 37: Our Vision and Mission
Our Vision and Mission 37 VISION Italian leader provider of the “intelligent” part of automation machines, aiming to become a leader on complementary, synergetic and profitable market niches. MISSION Worldwide coverage in all the producing and purchasing markets. Provide customers with turn key solu
Slide 38: More Opportunities
More Opportunities 38 Lower Costs More Efficient R&D Assistance Enhancement Delayed project ESA LAB to Lockdown New employment increase China increased of Key R&D production remote support Manager More Remote M&A under Training evaluation
Slide 39: Appendix
Section 6 Appendix 39
Slide 40: FY23 Consolidated Income Statement
FY23 Consolidated Income Statement 40 €/000 FY21 FY22 FY23 YoY Revenues from sales and 28,327 33,828 35,446 +4.8% services Other Revenues 281 263 215 (18.3%) Total Revenues 28,608 34,091 35,661 4.6% Raw materials and change in stocks of semi- (14,895) (18,517) (18,515) 0% finished/finished goods Per
Slide 41: FY23 Consolidated Balance Sheet
FY23 Consolidated Balance Sheet 41 €/000 FY21 FY22 FY23 Inventory 4,192 8,323 12,892 Trade receivables 11,208 12,008 11,481 Trade payables (5,526) (7,115) (5,558) Other receivables (Payables) (490) (101) (392) Provisions (395) (340) (427) Net Working Capital 8,989 12,775 17,996 Goodwill 98 98 2,949
Slide 42: Shareholder Structure and Stock Performance (as of 20th May 2024)
Shareholder Structure and Stock Performance (as of 20th May. 2024) 42 Shareholder Structure Stock Performance Since IPO 120% 100% 80% 60% 40% 31,72% Market 20% 21,46% 0% -20% -16,20% Franco Fontana * -40% 34,56% -60% Treasury shares -80% Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jul-18 Jul-19 Jul-20
Slide 43: ESAUTOMOTION S.p.A.
ESAUTOMOTION S.p.A. Viale della Meccanica, 23/1 41012 Carpi (MO) +39 059 851414 info@esautomotion.com