Circle Spa · MIL:CIRC
Circle Spa — Investor Presentation (December 2020)
61 slides from Circle Spa's investor presentation, Dec 1, 2020
Slide 1: Connect 4 Agile Growth
CONNECT 4 AGILE GROWTH INVESTOR PRESENTATION - CONFIDENTIAL December 1st, 2020
Slide 2: Agenda
Agenda • Corporate Overview and Financials • Market Trends and Competitive Positioning • Development plan 2018-2020: until today • Log@sea • What’s next? • Today news: Circle ConnectingEU & Magellan • Strategic Roadmap 2021-2024
Slide 3: Corporate overview and Financials
Corporate overview and Financials
Slide 4: Corporate overview
Corporate overview Highlights Circle Group is an international player specialised in providing innovative technological solutions for automation and digitalisation of the entire supply chain, with distinctive vertical skills in the port and intermodal logistics sectors. Through a vertically integrat
Slide 5: Corporate Overview: Key Facts
Corporate Overview Key Facts WiderMos Project and digitalisation of Docks the Future Project Circle at 51% of Establishment Port of La Spezia and Contship Group Log@Sea of Circle SpA (MBO) TOS Project for Samer Circle purchases Seaports & Terminals Digital Supply Chain 51% of Infoera (DFDS) Project
Slide 6: Business Units, targets and products
Corporate Overview 3 Business Units, targets and products Innovative and Global Supply Chain Connecting EU Smart Supply Chain Visibility Inland and Port Mutimodal Transport Terminal Operators Operators & Rail Shippers Freight Forwarders Companies Private and Public entities specialised in port, tran
Slide 7: Financials
Financials 2012-2019 Group revenues 2019 vs 2018 Group € 6,1 mln +27% Revenues Green numbers are related to Info.era (acquisition 01.01.2018) Group consolidated revenues - including 5 months of Progetto Adele (acquisition 01.08.2019) and 12 months of Info.era
Slide 8: Circle Group Financial Statement 2020 H1
Circle Group Financial Statement 2020 H1 2020 H1 2019 H1 Revenues € 3.2 mln (+21%) € 2.6 mln € 0.7 mln EBITDA adjusted* (excluding non-recurring costs deriving € 0.7 mln *excluding not recurrent costs from the pandemic; EBITDA 0.4) € 0.4 mln EBIT adjusted* (excluding non-recurring costs deriving € 0
Slide 9: Group Financial Statement 2020 H1
Group Financial Statement 2020 H1 Products Valore della Produzione Circle Group Circle Group Revenues 3.500.000 +54% +21% 3.000.000 2.500.000 2.000.000 2019 2020 SaaS: + 101% vs 2019 H1
Slide 10: Market trends and competitive positioning
Market trends and competitive positioning
Slide 11: Market trends: Digital transformation in the Supply Chain
Market trends Digital transformation in the Supply Chain EXOGENOUS FACTORS Cost Pressure Physical Innovative Individualisation Infrastructures services Speed of delivery ENABLING TECHNOLIOGIES Sustainability Connectivity AI and Machine Learning 5G Broadband Fiber optic ENDOGENOUS FACTORS Autonomous
Slide 12: Market trends: Players' needs
Market trends Players’ needs - following and anticipating macro trends Port Authorities and Port Communities Port and Inland Terminals • Extended PCS • Shipping lines expansion • Supply chain integration • Rail last mile • Blockchain & international maritime (International Fast Trade Lane) Shipping
Slide 13: Market trends: Segments and trends
Market trends Segments and trends Despite the complexity of TMS, most customers do not need the most advanced functionalities Their decision making depends on costs and speed of implementation Importance of modular system, innovatives services and support of less demanding operations ➢ For this reas
Slide 14: Market trends: Technologies and targets
Market trends Technologies and targets Only 18% of supply chain organizations are early adopters of technology. Circle Group is part of this utilizing technologies in the “Innovation Trigger” (for ex. Digital Supply Chain Innovation Twin and Circular Economy). Technologies, then, go through “Trough
Slide 15: Segments and target evolutions
Targets Segments and target evolutions COURIERS TRANSPORTERS WITH TRUCKS ALLIANCES AND PARTNERSHIPS COVERAGE (from existing to future targets) (TMS) FUTURE COLLECTORS OF TARGETS CIRCUITS GOODS GENERAL TRANSPORT MANUFACTURE OF LOGISTICS IN PORTS WITH BOX VEHICLES VERTICAL SECTORS PORT & BORDER CUSTOM
Slide 16: Market trends: Potential by industry
Market trends Potential by industry Global Supply Chain Management Software potential market size (2024) Sources: Gartner - Supply Management Software Worldwide 2018-21 ≃ 25 bln $ Technavio - Global Supply Management Software market 2020 - 2024
Slide 17: Market trends: Potential by geography
Market trends Potential by geography Source: Quantifying Freight transport volumes in Developing Regions Source: our processing from IMF – World Economic Outlook Circle Group’s potential market size (worlwide) ≃ 3 bln € Circle Group’s potential market size (to 2024) ≃ 1,1 bln €
Slide 18: Circle Group international coverage
Circle Group international coverage Offices ITALY Milan, Genoa, Trieste BELGIUM Bruxelles PORTUGAL Oporto TURKEY Istanbul, Ankara, Mersin
Slide 19: Distinctive positioning
Distinctive positioning Strenghts and Opportunities Strenghts • Solid expertise in business process reengineering and project management • Industry Specialisation and Systematic M&A • Technological Know How and Federative Approach • Product portfolio in line with the (or anticipating) legislative dr
Slide 20: 2020 Strategic guidelines and achieved results
2020 Strategic guidelines and achieved results
Slide 21: Strategic guidelines: development plan 2018-2020
Strategic guidelines The development plan 2018 -2020 Product evolution EU Services evolution • Roadmap Milos® 2020 • New topics for EU Funding opportunities • Roadmap MasterSped® 2020 • New digital and hybrid communication tools & events Geographical expansion Strategic projects and operations Reinf
Slide 22: Strategic projects
Strategic projects Highlights Milos® MTO Milos® Innovative and Federative Micro-Services PSA Genova Prà is one of the most important container terminal in Med Metinvest is an international steel and mining group; Ferriera Valsider Area with more than 16 million tons managed and more than 18% of rail
Slide 23: Ongoing Geographical expansion
Ongoing Geographical expansion International activities and projects Ongoing projects Ongoing preliminary project proposals and lead generation activities Clients / Projects
Slide 24: Technological innovation trends
Technological innovation trends Circle Group virtuous loop Innovation Trends according to Gartner market development European Funded analysis and EU Digital Policies Projects IoT & European Customs Code Pilot Increased visibility Projects FENIX I RAIL eBridge Projects final conference Fast Corridor
Slide 25: Policy framework innovation trends
Policy framework innovation trends EU Green Deal Circle Group virtuous loop Customs 2025 European Policy European Funded Innovation Trends Projects Dir 65/2010 Anna 2013-2015 Knowledge of Networking specific subject expansion Development of targeted contact list Reporting formalities Webinars, news
Slide 26: 2018-2020 M&A, Joint venture, Strategic Alliances
2018-2020 M&A – Joint venture - Strategic Alliances TARGET TYPE ADVANTAGED (%) Q1 2018 INFOERA M&A • Port business and Agencies, Trieste Port (DONE) 51% PROGETTO Q3 2019 M&A • Freight & Customs operators, Shipper / food 100% ADELE (DONE) • Focus on GATE AUTOMATION,with native Joint Venture integrati
Slide 27: Strategic Operations
Strategic Operations Development of Acquisition of Port & Maritime Supply Chain Federative Services Infoera for merchant and carrier business Freight forwarding & Acquisition of Customs Services Progetto Adele Terminal, Rail & Strategic alliance Development of internal Line Of Rail Last Mile with Bi
Slide 28: Market recognition
Market recognition Milos® in Gartner Vendor Guide Gartner's research analyses the contemporary logistics market and predicts that by 2024 at least 75% of the top 50 global companies will implement their activities in this industry. Milos® is therefore recognised as a highly innovative and strategic
Slide 29: Anticipating Customs scenario
Anticipating Customs scenario Thanks to Circle Group’s strategic presence at European programmatic and technical commitees, our products are compliant with EU Customs Code 12 months in advance with respect to 2025 EU Customs Multiannual Plan eCustoms Rail gate International Fast & 2025 Plan automati
Slide 30: Alliance - Maps
Alliance - Maps Artificial Intelligence & Digitalisation for sustainable logistic choises The Alliance is born with the aim of strengthening the innovative offer in the field of Artificial Intelligence and the digitalisation of the multimodal logistics chain, linked to the progressive digitalisation
Slide 31: Log@Sea
Log@Sea Log@Sea is the business network composed by Aitek (49%) and Circle (51%), with the purpose of offering services for gate automation and digitisation of port and intermodal nodes, both for roadway and railway scenarios. With significant benefits in terms of: • safety of people • accuracy of a
Slide 32: What's next?
What’s next?
Slide 33: Strategic guidelines: development plan 2021-2024
Strategic guidelines The development plan 2021 - 2024 Product evolution EU Services evolution • Roadmap Milos®, MasterSped®, MasterTrade®, • Docks the Future Network of Excellence Sinfomar® 2024 • Advocacy and international presence • Rail last mile and Optimisation roadmap • Next Generation EU • Fe
Slide 34: Market focus
Market focus Evolutive services and actions anticipating macro trends Port Authorities and Port Communities Port and Inland Terminals • New Extended PCS 4.0 • New Extended TOS 3.0 • Supply chain federative services • Interchange notarisation • Rail last mile + Optimisation & DSS • Blockchain & inter
Slide 35: MILOS 2021-24
MILOS 2021-24 TOS, MTO, IOT, Federative Services, Optimisation
Slide 36: Product evolution: 2021-2024 roadmap
Product evolution 2021-2024 roadmap Milos for NOTARISATION (BLOCKCHAIN ) ARTIFICIAL INTELLIGENCE Integrated DIGITAL TWIN BIG DATA Integrated Free Zone TOS RAIL AND YARD 3.0 & ZES SEMANTIC & ROBOTIC PROCESS AUTOMATION RAIL LAST MILE Milos OPTIMISATION integrated Milos Milos NEW CUSTOMS 4.0 Mobile Mil
Slide 37: Optimisation
Optimisation decision support systems to obtain better performances
Slide 38: Optimisation: Supply Chain 4.0
Optimisation SUPPLY CHAIN 4.0 OPTIMIZATION Rail Shunting Operations for the rail freight transfer within the port area Scheduling of shunting operations Respecting the operational constraints and the needs of the involved stakeholders Re-scheduling of shunting operations In case of delays, cancellat
Slide 39: Freight & ports Federative digital interoperability
Freight & ports Federative digital interoperability Thanks to Mastersped, in all the Mediterranean ports, between terminals, freight forwarders and custom operators there is the opportunity about a real time digital interoperability. Genoa INTEROPERABILITY
Slide 40: Rail & Central EU Federative digital interoperability
Rail & Central EU Federative digital interoperability In Central Europe, the interoperability between multimodal operators, inalnd terminals and ports is guaranteed by Milos Federative services. Trieste INTEROPERABILITY
Slide 41: Food
Food Vertical integrated and federative solution MasterTrade is designed to meet the specific needs of the food sector in terms of management of supplier/customer orders: • order registration in the warehouse control phases • order opening and closing • access to information and goods status In part
Slide 42: Federative Services: Notarization
Federative Services Notarization Aim of digitizing the Interchange (document that certifies the goods entering / leaving the terminal and related informations). The notarization process is linked to the Blockchain technology which guarantees trust and the reliability of the intercharge document with
Slide 43: International Fast Secure Trade Lane (IFSTL)
Federative Services International Fast Secure Trade Lane (IFSTL) Logistic international corridors aiming to create port to port chains involving all the actors (ports, inland terminals, logistic actors and shippers) Integrated with the use of Internet of Things (IoT) and Blockchain platforms thanks
Slide 44: IFSTL first complete pilot projects
Federative Services International Fast Secure Trade Lane (IFSTL) First complete pilot projects: Egypt & Morocco export flow from EU and to Italy, November 2020 1. eSeal RFID application on the container 3. eSeal number entering in the B/L 2. APP registration Shipping Shipper Line Freight forworder 5
Slide 45: Federative Services: Notarization
Federative Services Notarization The Terminal Operating System generates the intercharge document that is signed thanks to the notarization system Also the transport company can sign the intercharge document with the app
Slide 46: Federative Services: Innovative Concept
Federative Services Innovative Concept Digital transformation is rapidly changing the global supply chain. Everyday Transport and Logistics operators need to adapt their operations connecting their systems with an everchanging number of actors and solutions. Circle Group Federative Services enable q
Slide 47: Federative Services
Federative Services Ongoing development Available services Evolutive Federative Services TARGETS Multimodal Transport Freight Forwarders and Port and Inland Shippers Operators and Rail Companies Customs Operators Terminals Rail Track & Trace Edifact / Ediges engine Booking regarding intermodal rail
Slide 48: Geographical expansion: objectives 2021-2024
Geographical expansion OBJECTIVES 2021 – 2024 International activities and projects • Achievement of a presence in some identified foreign markets (es. Portugal/Spain, Morocco, Turkey) comparable to the distinctive one we have in Italian market • Strenghten the alliance in the target countries of in
Slide 49: EU services evolution: 2021-2024 roadmap
EU services evolution 2021-2024 roadmap Docks the Future Advocacy and Next Network of international Generation Excellence presence EU Exploitation of Docks the Future Strengthening of EU advocacy Exploitation of «Next Network of Excellence (NoE), launched through: Generation EU» funds in 2020 with t
Slide 50: Connecting EU and Magellan
Connecting EU and Magellan Synergies and complementarities • Wider geographical coverage • Enlargement of EU funded projects topics coverage • Strengthening advocacy in Brussels • Project Anticipation and Management reinforcement • Communication and Dissemination at EU level in different markets Why
Slide 51: Success stories
Success stories A selection of the most recent projects More than 10 millions euro of EU funded projects managed in the last 10 years
Slide 52: EU services evolution: 2020-2021 numbers
EU services evolution 2020-2021 numbers Backlog & EU Newcos EBITDA projects Backlog Circle ConnectingEU: Magellan Forecast 2021 Circle 0,9 mln € Revenue 2020 Connecting EU + Magellan 0,6 mln € total EBITDA EU Projects Circle ConnectingEU Around € 0,35 mln € 0,7 mln € Circle ConnectingEU Value Backlo
Slide 53: Next Generation EU recovery fund
| principali beneficiari del Recovery Fund . i in miliardi (stime) “Next Generation EU” recovery fund semen The European Commission plans to borrow €750 billion on p 2 ag = Gy capital markets to issue grants and low-interest loans to EU countries Italia 818 | 172,7 Two-thirds of recovery fund will t
Slide 54: Connecting EU & MAG: Newco and strategic developments
Connecting EU & MAG Newco and strategic developments 2024 2020 Other strategic M&A M&A in EU Increased coverage of Connecting EU Med Country topics concerning Newco project anticipation services Boost of EU • Advocacy and • New topics • Exploitation of funding Branding international presence interna
Slide 55: 2021-24 Strategic Plan
2021-24 Strategic Plan Development of Port – Rail and Freight Acquisition of Port & Maritime Supply Chain Federative Services interoperability in MEDI- Infoera for merchant and carrier business TERRANEAN market (M&A) Acquisition of Volume expansion + Freight forwarding & Development & Proposal of co
Slide 56: M&A, Joint venture, Strategic Alliances
M&A – Joint venture - Strategic Alliances TARGET TYPE ADVANTAGED • Exploitation Focus on GATE AUTOMATION,with Joint Venture native integration with Milos® & Sinfomar®; Log@Sea evolution • Target scope: main terminal and ports (MED, central Europe) Magellan M&A • EU services / lobby and international
Slide 57: M&A targets
M&A targets Segments, 2021-24 focus, target for M&A and/or Alliances COURIERS TRANSPORTERS WITH TRUCKS ALLIANCES AND PARTNERSHIPS COVERAGE (from existing to future targets) (TMS) FUTURE TARGETS T7 COLLECTORS OF GOODS CIRCUITS LOGISTICS IN PT/ES PORTS GENERAL TRANSPORT MANUFACTURE OF (and other MED p
Slide 58: Business Goals
Business Goals Systematic M&A Central-South 2024 Europe and 2023 MED Leader 2022 2021 Customs + Operative 2020 Value Added Federative services + Innovative International services Supply Chain New evolution MED Value Added services segments International evolution MED Anticipated EU New segments Inte
Slide 59: Financial focus & stock growth
Financial focus & stock growth Upside from • «Free allocation of shares» - 1 free stock each 10 - May 20th, 2019 Target Prices Upside Opportunity • Buy back – 17.160 until now IPO • Circle is an innovative SME +30%^ 4,2/4,4 From +51% to +62% • Average monthly volume (from IPO) around € 500.000 ^ sto
Slide 60: Financial Goals
Financial Goals Systematic M&A 2024 Revenues 2023 14- 16 mln € 2022 2021 EBITDA 2020 2,1 - 3 mln € Margin Products & International New Volumes Services Products & services activities segments Volumes New segments 25%-30% Volumes New segments New segments Strong growth of Federative (PPU) Services CO
Slide 61: Contacts
Contacts Genoa Trieste Milan Via Bombrini 13/3 Via San Nicolò 15 Via Fara Gustavo 28 16149 Genova - ITALY 34121 Trieste - ITALY 20124 Milan – ITALY info@circletouch.eu info@circletouch.eu info@circletouch.eu Brussel Porto circlebelgium@circletouch.eu circleportugal@circletouch.eu Istanbul Mersin BEL