Comer Industries Spa · MIL:COM
Comer Industries Spa — Mid & Small Virtual Conference 2020
33 slides from Comer Industries Spa's conference presentation, Apr 1, 2020
Slide 1: Mid & Small Virtual Conference 31 March – 1 April 2020
Mid & Small Virtual Conference st st 31 March – 1 April 2020 COMER INDUSTRIES Property
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
01 Comer Industries 04 Key financials in a nutshell AGENDA 02 Business model 05 Shareholders structure & Corporate Governance 03 Market and strategy 06 Appendix COMER INDUSTRIES Property
Slide 4: 1. Comer Industries in a Nutshell
1. COMER INDUSTRIES IN A NUTSHELL COMER INDUSTRIES Property
Slide 5: Comer Industries at a Glance
COMER INDUSTRIES AT A GLANCE Generational transition fully completed Board of Directors with Independent member and experienced executive management fully operational Robust business model and diversified portfolio products Continuous growth trend in turnover and profits Solid financial po
Slide 6: 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 7: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY In 2019 Comer Industries has launched a new project: OUR BRIGHT IMPACT. An important responsibility towards the environment and the society. The courage to take on a strong commitment, starting from adherence to the Global Goals for the sustainable development. The am
Slide 8: Main Trends
MAIN TRENDS NET REVENUES +8,8% EBITDA (adjusted) +22,5% CAGR CAGR 17-19 17-19 Euro in millions Euro in millions +16,7% +6,7% 405m +28,5% 45m +10,8% 379m 39m 30m 11% 342m 10% 9% […]% of revenues 2017 2018 2019 2017 2018 2019 Note: EBITDA [adjusted] excludes the impacts from the application of IFRS 2
Slide 9: 2. Business Model
2. BUSINESS MODEL COMER INDUSTRIES Property
Slide 10: 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 Construction players INDUSTRIAL Mining OEM Construction Wind plants owners OEM Energy 10 COMER INDUSTRIES Property
Slide 11: Who We Are, What We Do & Our Main Customers
WHO WE ARE, WHAT WE DO & OUR MAIN CUSTOMER 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. OUR CUSTOMERS 11 COMER INDUSTRIES Property
Slide 12: Business Overview
BUSINESS OVERVIEW BUSINESS AREA PRODUCTS LINES REGIONS TECHNOLOGY STRUCTURE 23% NAM 10 legal entities; Gearboxes 6 trading AGRI companies; 7 production Planetary drives Mechanical areas; 54% (61% in FY18) 17% APAC C. 1.400 employees. 100% Powertrain systems INDUSTRIAL 54% EU Hydraulic 0% 32%
Slide 13: 3. Market and Strategy
3. MARKET AND STRATEGY COMER INDUSTRIES Property
Slide 14: 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 15: Opportunity and Strategy Pillars
OPPORTUNITY AND STRATEGY PILLARS STRATEGY PILLARS Maintain leadership in the Agri Business Size growth driving economies of scale Increase margins Simplification and digitization 3+ €b 5+ €b 0.2 €b 15 COMER INDUSTRIES Property
Slide 16: Main Competitors by Market Segment
MAIN COMPETITORS BY MARKET SEGMENT BUSINESS AREA MAIN COMPETITORS AND INCUBANT COMPETITORS AGRI INDUSTRIAL (LISTED IN ITALY MTA) (LISTED IN US-NYSE) 16 COMER INDUSTRIES Property
Slide 17: 4. Key Financial
4. KEY FINANCIAL COMER INDUSTRIES Property
Slide 18: Key Consolidated Results
KEY CONSOLIDATED RESULTS Var.% YoY Euro in millions 2016 2017 2018 2019 2017 2018 2019 KEY MATTERS Net revenues 303,7 342,1 379,0 404,6 12,6% 10,8% 6,7% • FY19 net revenues increased by +6,7% vs FY18. EBITDA 22,0 29,8 38,4 45,7 35,6% 28,9% 18,9% • Top 10 customers generated Margin 7,2% 8,7% 10,1% 11
Slide 19: Revenues by Geography
REVENUES BY GEOGRAPHY KEY MATTERS • Consolidated turnover stands at 404,6 million euros, the best result in the company’s 50-year history, with an increase compared to the previous year of +6,7%. • FY19 Export turnover amounts to 88,3% of total and confirms the Group’s propensity for international g
Slide 20: TWC Evolution
TWC EVOLUTION Evolution of TWC 200,0 25,0% 30,0% 21,8% 22,3% 21,0% 150,0 20,0% 93,0 85,5 76,4 85,6 100,0 10,0% Euro m 50,0 0,0% 68,5 69,5 77,4 77,3 - (10,0%) (68,9) (80,6) (86,1) (77,7) (50,0) (20,0%) (100,0) (30,0%) 31Dec16A 31Dec17A 31Dec18A 31Dec19A Trade receivables Stock Trade payables TWC as %
Slide 21: Net Debt/(Cash) Evolution
NET DEBT/(CASH) EVOLUTION Evolution of Net Debt / (cash) [adjusted] 60 55,3 55,3 50 40,7 40,7 40 36,7 36,7 Euro m 29,1 30 20 10 2,9 0 31Dec16A 31Dec17A 31Dec18A 31Dec19A Net Debt / (cash) [adjusted] Net Debt / (cash) KEY MATTERS • The €33,9m decrease of Net debt [adjusted] in 2019 reflects: 1) the c
Slide 22: Net Debt Ratios
NET DEBT RATIOS Net debt - ratios (Net Debt [adj] / EBITDA [adj]) KEY MATTERS 3,0 2,55x • The Group is not leveraged. 2,5 • At 31Dec9 Net debt [adjusted] as a 2,0 1,37x proportion of EBITDA [adjusted] is 1,5 0,96x close to zero (0,96 at 31Dec18). 1,0 0,5 0,06x 0,0 31Dec16A 31Dec17A 31Dec18A 31Dec19A
Slide 23: 5. Shareholders Structure & Corporate Governance
5. SHAREHOLDERS STRUCTURE & CORPORATE GOVERNANCE COMER INDUSTRIES Property
Slide 24: Shareholders' Structure
SHAREHOLDERS’ STRUCTURE SHARES AND RIGHTS 19,94% % of share % of voting Lock up Lock up Nr. of shares capital rights shares duration █ Eagles OAK S.r.l. 14.640.089 71,73% 71,73% 14.450.000 18/36 months* █ Finregg S.p.A. 1.700.000 8,33% 8,33% 8,33% █ Market 4.069.191 19,94% 19,94% 1.043.911 12/36 mon
Slide 25: COVID-19: Impacted Areas
COVID-19: IMPACTED AREAS • The evolution of the COVID-19 epidemic and the current alarming situation at global level have underlined a risk of downside in the worldwide economic scenario that does not allow today to express assessments on its future evolution. • This evolving scenario may lead to ch
Slide 26: COVID-19: Our Approach
COVID-19: OUR APPROACH • Thanks to our capital and financial strength, the Group has implemented and will implemented all adequate and required measures to mitigate and contain the negative impacts deriving from the current scenario. • In order to face this new challenge, Comer Industries undertook
Slide 27: 6. Appendix
6. APPENDIX COMER INDUSTRIES Property
Slide 28: Product Lines and Applications
PRODUCT LINES AND APPLICATIONS PRODUCT LINES GEARBOXES PLANETARY DRIVES POWERTRAIN SYSTEMS WHEEL DRIVES DRIVESHAFTS APPLICATIONS TRACTORS MINING MACHINERY COMBINED COMBINED HARVESTERS & CONSTRUCTION EQUIPMENT HARVESTERS & SELF PROPELLED CRANES SELF PROPELLED MACHINES MACHINES TELEHANDLERS CONSTRUCTI
Slide 29: Examples of Agri Applications
EXAMPLES OF AGRI APPLICATIONS • Land preparation machines • Soil tillage machines • Crop treatment machines • Forage and hay AGRI machines • Biogas systems • Corn and grain headers • Combines and forage harvesters • Forage mixing and distribution machines • Tractors 29 COMER INDUSTRIES Property
Slide 30: 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 30 COMER INDUSTRIES Property
Slide 31: 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. 1985-1980: Comer
Slide 32: Group Structure
GROUP STRUCTURE Comer Industries SpA Reggiolo (RE) (Italy) (Head Quarter) Comer Industries Comer Industries Comer Industries UK Comer (Shaoxing) Co Ltd 100% 100% Components Srl Ltd 100% 100% GmbH Shaoxing (China) Matera (MT) (Italy) Leicester (UK) Schermbeck (Germany) (Sales Office) 65,8% Comer Indu
Slide 33: Thanks for your attention
Thanks for your attention COMER INDUSTRIES Property
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