Marzocchi Pompe S.p.a. · MIL:MARP
Marzocchi Pompe — AIM Conference 2020
40 slides from Marzocchi Pompe's conference presentation, May 25, 2020
Slide 1: Investor Presentation AIM Conference 2020
Investor Presentation AIM Conference 2020 May 25, 2020
Slide 2: Agenda
Agenda Company at a Glance FY 2019 Results Achievements & Covid-19 Heritage Market & Competitive Positioning Appendix: Business Overview, History & Financials 2
Slide 3: Company at a Glance
Company at a Glance Marzocchi Pompe is a leading player in the design, production and marketing of high performance external gear pumps and motors, Company which are used in various sectors: industrial (textile machines, machine tools, plastic injection machines, medical equipment, energy, etc.), mo
Slide 4: Top Management & Shareholders
Top Management & Shareholders TOP MANAGEMENT BOARD OF DIRECTORS SHAREHOLDERS Paolo MARZOCCHI Free Float 23,53% Main Shareholder, Paolo MARZOCCHI Executive Chairman Executive Chairman Gabriele BONFIGLIOLI CEO Guido NARDI CFO, Executive Director Abbey Road Crosar Capital SpA S.r.l. (Paolo Valentina CA
Slide 5: FY 2019 Results
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Slide 6: FY 2019 Results show business model effectiveness in a tough market
FY 2019 Results show business model effectiveness in a tough market NET SALES ADJ. AT EURO 40.0 MLN (-5% Adj. on 2018) THE CORE BUSINESS NET SALES (UP 2.3%) BENEFITED BY SLIGHTLY HIGHER VOLUMES BUT WITH A MIX CHANGE TOWARDS SMALLER (AND THEREFORE LOWER PRICE) PUMP. THE AUTOMOTIVE SALES (-20%) WERE
Slide 7: Net Sales Adj. at € 40m, EBITDA margin at 16.2%
Net Sales Adj. at € 40m, EBITDA margin at 16.2% Net Sales Adjusted EBITDA Adjusted €/m 42.1 €/m 40 7.5 6.3 -5% -16% 2018 2019 2018 2019 Net Sales Adj. reached Euro 40 million in 2019, with EBITDA Adjusted for non-recurring gains slid to a decrease of 5% YoY mainly due to the expected Euro 6.3 millio
Slide 8: Core market segments topped 73% of revenues
Core market segments topped 73% of revenues Revenue Breakdown • Revenues by Core market segments 31.3% 26.5% (Industrial, Mobile and Sales Network), increased to 73.5% in 2019 vs 68.7% in 2018, 10.6% 16.2% reaching Euro 29.4 million, basically flat YoY in a generally tough industrial environment 20.
Slide 9: EBIT at € 0.9 mln, Net Income at € 0.2 mln
EBIT at € 0.9 mln, Net Income at € 0.2 mln EBIT Adjusted and Net Income • EBIT Adjusted slowed down to Euro 0.9 million, after Depreciation & Amortization of Euro 5.4 million (vs Euro 5.3 million in 2018) including the amortization generated by the LBO operation (Euro 1.2 million) • Net Income at Eu
Slide 10: Net Financial Position improved at € 12.5 mln
Net Financial Position improved at € 12.5 mln NFP Evolution • Net Financial Position improved at year- end to Euro 12.5 million vs Euro 19.2 million at end-2018, following Euro 8.0 (8.0) million capital increase related to the Listing on AIM Market (managed by Borsa Italiana) in July 2019 • NFP also
Slide 11: 2019 Dividend of € 6 cents / share
2019 Dividend of € 6 cents / share ON 27TH MARCH 2020 MARZOCCHI POMPE BOARD OF DIRECTORS PROPOSED THE DISTRIBUTION OF A GROSS DIVIDEND OF EURO 6 CENTS PER SHARE, FOR A TOTAL DIVIDEND AMOUNT OF EURO 392.325 TO BE COVERED BY EXTRAORDINARY RESERVE THE SHAREHOLDERS’ MEETING DUE ON 28TH APRIL 2020 AP
Slide 12: Achievements
Achievements
Slide 13: 2019 Highlights & Outlook
2019 Highlights & Outlook ON 16TH JULY 2019 MARZOCCHI POMPE WAS LISTED ON AIM (MARKET FOR SMALL CAPS MANAGED BY BORSA ITALIANA), WITH A MARKET CAPITALIZATION OF EURO 25 MILLION AND A FREE FLOAT OF 23.5% AT END-AUGUST THE NEW PRODUCTION DEPARTMENT DESTINED TO ELIKA, THE NEW HIGH-PERFORMANCE PUMP
Slide 14: Focus on ELIKA, the new low noise & high efficiency pump
Focus on ELIKA, the new low noise & high efficiency pump THE LAUNCH OF THE NEW ELIKA DEPARTMENT HAS BEEN COMPLETED WITH AN INVESTMENT OF MORE THAN 1 MILLION EUROS IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE'S FLAGSHIP PRODUCT THE TARGET IS TO SAT
Slide 15: Covid-19: a big preventive effort to minimize the impact on operations
Covid-19: a big preventive effort to minimize the impact on operations MARZOCCHI POMPE HAS ALWAYS ADOPTED A VERY CAUTIOUS APPROACH TO SUSTAINABILITY, THUS IT TOOK THE POTENTIAL RISK OF THE COVID-19 VIRUS EXTREMELY SERIOUSLY AT A VERY EARLY STAGE FOR BLUE COLLARS IN PARTICULAR THE COMPANY IMMEDIA
Slide 16: The Covid-19 Heritage: A Great Thanks to all our People
The Covid-19 Heritage: A Great Thanks to all our People THE COVID-19 PANDEMIC PUT ENORMOUS PRESSURE ON INDUSTRIAL ACTIVITIES AND ORGANIZATIONS AT MARZOCCHI POMPE, OWNERSHIP AND MANAGEMENT ARE FULLY AWARE THAT THE AFOREMENTIONED ACHIEVEMENTS IN TERMS OF BUSINESS CONTINUITY IN SUCH TROUBLED TIMES
Slide 17: Market & Competitive Positioning
Market & Competitive Positioning
Slide 18: Fluid Power market and growth forecasts
Fluid Power market and growth forecasts The Fluid Power market is made up by the hydraulic segment and the pneumatic segment. In Asia, Europe and USA the Fluid Power home1 market went from Euro 25,7 billions in 2000, to around Euro 43,6 billions in 2017, of which Euro 31,2 billion (72%) stemming fro
Slide 19: Focus on hydraulic pumps’ market
Focus on hydraulic pumps’ market Within the Hydraulic home1 market, the pumps’ segment is estimated by ISC to be around Euro 5,4 billion in 2017 (17%), of which Euro 3,2 billion (10%) coming from the reciprocating pumps’ segment (axial and radial piston pumps) and Euro 2,2 billion (7%) from the rota
Slide 20: Competitive positioning
Competitive positioning Characteristic Quality & Customer Ampiezza Ampiezza gamma pompe gamma Fluid Competitività Quality vs Customization prezzo Price Company Performance service a ingranaggi Power Marzocchi Pompe Bosch Rexroth Bucher Casappa Concentric Galtech/Interpump Hema / DB HPI / JTech Parke
Slide 21: Product Quality & Performance
Leadership in external gear pumps market + Product Quality & Performance Source: Marzocchi Pompe SpA management estimates - - Product Customization/ Customer service + 21
Slide 22: Appendix
Appendix
Slide 23: MP core business: manufacturing of external gear pumps and motors
MP core business: manufacturing of external gear pumps and motors • The pumps have the function of transferring the fluid from a tank to an actuator within an oil-hydraulic circuit. (for example a cylinder that drives the shovel of an excavator). This transfer from the suction circuit to the deliver
Slide 24: Overview of pump composition and application examples
Overview of pump composition and application examples The pumps are composed of the following main parts: body, flange, cover and bushings in aluminium, and gears (driving and driven wheel) in steel. For some types of products, the flange and the cover can be made out of cast iron. Further component
Slide 25: Product applications
Product applications Medical equipment Gardening machines Actuators for surgical tables, diagnostic equipment, latest- In this type of application it is essential that oil-hydraulic generation stretchers, dental chairs: in general, for small pumps and motors guarantee the complete absence of medical
Slide 26: Technological innovation and quality standards
Technological innovation and quality standards The Group's business model is focused on the design, production and marketing of high performance external gear pumps and motors. The Company manufactures almost all the main components within its own production sites and uses the historical brand “Marz
Slide 27: Target markets
Target markets Core market’s revenues include Industrial and Mobile machines applications and represent 73,5% of total 2019 revenues, including sales to distributors /sales network, which alone contribute to 33,2% of MP’s total sales(*) FLUID POWER Core Automotive Industrial Mobile Machines Possible
Slide 28: Main client composition
Main client composition • The company benefits from a diversified client base for the Industrial and Mobile machine sectors, having their top 3 clients making up only 9,9% of sales and the top 10 representing 25,2%. The Automotive sector, on the other hand, has fewer clients making up for most of it
Slide 29: Global distribution network
Global distribution network Marzocchi Pompe relies on an international distribution network present in over 50 countries. Products are distributed through various channels, such as direct sales, distributors’ sales1, American branch operations and Chinese branch operations Distribution network’s hig
Slide 30: Investment highlights
Investment highlights • The Hydraulic market is large, estimated to be around Euro 8.8 billions in 2016 in Europe (Source: CETOP) Large target market and Euro 2.6 billion in 2017 in Italy (Source: Assofluid) experiencing growth • Evidence of upward trend of Italian hydraulic market in the 2009-2017
Slide 31: Organizational structure and production sites
Organizational structure and production sites • Marzocchi Pompe can count on a team of professionals with consolidated experience. As of 31 December 2019 the workforce consists of 254 resources (of which 252 are permanent employees), with a heterogeneous background of professional skills that streng
Slide 32: History
History Main operative milestones Construction of a Start-up of large-scale production production unit in of the Elika pump, an innovative On 16th July 2019 listing on Ostellato (FE) with product with low noise and high the AIM market, opening investments of > € 15m efficiency standard, even at low
Slide 33: Financial highlights 2016-2019 (1/2)
Financial highlights 2016-2019 (1/2) Evolution of revenues and EBITDA margin Market segment distribution of 2016-2019 Revenues 17.6% 17.3% 12.3% 11.1% 10.6% 16.2% 16.2% 26.1% 22.5% 20.8% 24.1% 42.1 40 38.6 31.3% 8.6% 27.3% 35.2% 26.5% 30.5 34.2% 31.2% 37.3% 33.2% 2016 2017 2018 2019 2016 2017 2018 2
Slide 34: Financial highlights 2016-2019 (2/2)
Financial highlights 2016-2019 (2/2) Net Financial Position Evolution Cash Flow breakdown 10.8 6.8 6.2 8.4 7.0 6.5 4.2 4.4 5.4 (0.6) 1.2 4.0 (0.5) 19.5 (3.4) 11.7 11.9 (6.3) (5.3) 9.7 (2.8) (9.4) -0.6 -1.7 -6.5 -4.7 (1.5) 2016 2017 2018 2019 (0.9) (9.0) Cash & near-cash Long term fin debit Short ter
Slide 35: Consolidated Profit & Loss (Adjusted)
Consolidated Profit & Loss (Adjusted) €000 31-Dec-19 31-Dec-18 Adj. sales revenue 40.017 100% 42,089 100% WIP changes (1,433) 1,109 Adj. revenue from production and sales 38,584 43,197 Other adj. revenue 672 238 Adj. PRODUCTION VALUE 39,256 43,435 Raw materials consumption (8,350) (21.6%) (10,179) (
Slide 36: Consolidated Balance Sheet (Adjusted)
Consolidated Balance Sheet (Adjusted) €000 31-Dec-19 31-Dec-18 A) NET FIXED ASSETS 26,105 27,782 Intangible fixed assets 1,405 687 Tangible fixed assets 23,465 25,755 Financial fixed assets 1,236 1,341 B) NET WORKING CAPITAL 6,787 4,171 Inventories 8,119 9,311 Advances from customers (23) (102) Trad
Slide 37: Consolidated Cash Flow Statement (Adjusted)
Consolidated Cash Flow Statement (Adjusted) €000 2019 2018 Operating profit (EBIT) 1,012 3,858 Tax effect 239 (496) Change in funds 153 (269) Provisions and write-downs 5,361 5,269 Income cash flow 6,765 8,361 Changes in working capital Inventories 1,192 (1,385) Trade receivables (1,547) 2,036 Other
Slide 38: Focus on LBO
Focus on LBO During 2018 the company underwent a restructuring procedure that modified the shareholding structure. As of today, the company is owned by Paolo Marzocchi. The operation was completed through the creation of a financial debt with Banca di Bologna, which allowed the release of some share
Slide 39: Disclaimer
Disclaimer Privacy The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced with
Slide 40: CONTACTS
CONTACTS Marzocchi Pompe S.p.A. ir@marzocchipompe.com EnVent Capital Markets – Nominated Adviser Paolo Verna pverna@enventcapitalmarkets.co.uk CDR Communication - Investor & Media Relations Silvia Di Rosa silvia.dirosa@cdr-communication.it Paola Buratti paola.buratti@cdr-communication.it Martina Zuc