Ediliziacrobatica Spa · MIL:EDAC

Ediliziacrobatica Spa — IPO Roadshow (October 2018)

42 slides from Ediliziacrobatica Spa's IPO roadshow presentation, October 2018

  1. Slide 1: Roadshow Presentation October 2018

    Roadshow Presentation October, 2018 Stricly private and confidential

  2. Slide 2: Disclaimer

    Disclaimer For the purposes of this disclaimer, this presentation (the “Presentation”) comprises the attached slides and any materials distributed at, or in connection with, the Presentation. The Presentation has been prepared by EdiliziAcrobatica S.p.A. (the “Company”) solely for information and di

  3. Slide 3: Offer Structure

    OFFER STRUCTURE TRADING MARKET  AIM Italia  Capital Increase Up to Euro 10M OFFER STRUCTURE  Institutional Offer up to Euro 10M  Retail Offer up to Euro 3M  New shares up to Euro 0,3M with a discount of up to 10% reserved to employees  Greenshoe (capital increase) up to 10% of Capital Increase

  4. Slide 4: Table of Contents

    TABLE OF CONTENTS  EDAC AT GLANCE  INVESTMENT CASE  FINANCIALS  FUNDING STRATEGY  APPENDIX 4

  5. Slide 5: EDAC at a Glance (1/5)

    EDAC AT GLANCE EDAC AT GLANCE (1/5) EdiliziAcrobatica S.p.A. (″EDAC″ or ″the Group″) is specialized in outdoor maintenance and renovation of residential buildings and architectural structures through the double rope safety tool. Mission Changing the operating procedures of offering building works in

  6. Slide 6: EDAC at a Glance (2/5): Main Milestones

    EDAC AT GLANCE EDAC AT GLANCE (2/5) MAIN MAILESTONES EDAC reached about  Bond Issued (€ 5M) on EXTRA- EDAC reached almost € 13,4M in revenues MOT Riccardo Iovino First point EDAC in € 4M in revenues and and 66 operational  EDAC reached about € 17,4M and founded EDAC Milan 26 operational teams team

  7. Slide 7: EDAC at a Glance (3/5)

    EDAC AT GLANCE EDAC AT GLANCE (3/5) CAGR 2013/2017: +46,1% 17.355 FOCUS ON BUILDINGS WITH 210 MORE THAN 3 FLOORS 180 13.338 11.113 9.266 AVERAGE ORDER 110 SIZE 2017: € 5.383 5.203 79 3.806 56 49 # OF COMPLETED 49 30 CONSTRUCTION 27 13 SITES 2017: 2.742 5 4 FY2013 FY2014 FY2015 FY2016 FY2017 1H2018 1

  8. Slide 8: EDAC at a Glance (4/5): Financial Highlights

    EDAC AT GLANCE EDAC AT GLANCE (4/5) FINANCIAL HIGHLIGHTS 2016 2017 1H2017 1H2018 YOY YOY Total Consolidated Revenues € 13,3M € 17,4M € 7,6 M € 11,1 M 30,1% 45,6% EBITDA Adjusted € 3M € 2,8M € 1M € 2,1M (6,6)% 111,4% % EBITDA Adjusted margin % 22,5% 16,2% 12,8% 18,5% EBIT Adjusted € 2,7M € 2,3M € 0,6

  9. Slide 9: EDAC at a Glance (5/5)

    EDAC AT GLANCE EDAC AT GLANCE (5/5) Lock-up shares pre IPO: 24 months 80% 20% RICCARDO IOVINO ARIM ANNA MARRAS HOLDING S.r.l. 100% ANNA MARRAS RICCARDO IOVINO Director Director Audit Board of statutory auditors Deloitte & Touche S.p.A. Alda Bertelli - Chairman SIMONETTA SIMONI Years: 2017-2019 Board

  10. Slide 10: Table of Contents

    TABLE OF CONTENTS  EDAC AT GLANCE  INVESTMENT CASE  FINANCIALS  FUNDING STRATEGY  APPENDIX 10

  11. Slide 11: Key Investment Highlights

    INVESTMENT CASE KEY INVESTMENT HIGHLIGHTS A growing leading player in outdoor maintenance and renovation through the double rope safety tool 1 SUPERIOR AND INNOVATIVE MARKET OFFERING COMPARING TO THE TRADITIONAL OFFERING 2 POTENTIAL ADDRESSABLE MARKET TO CONQUER 3 SCALABLE BUSINESS MODEL DRIVEN BY S

  12. Slide 12: Superior and Innovative Market Offering (1/3)

    INVESTMENT CASE 1 SUPERIOR AND INNOVATIVE MARKET OFFERING COMPARING TO THE TRADITIONAL OFFERING (1/3) AVERAGE ORDER SIZE 2017: € 5.383K BUILDINGS WITH MORE THAN 3 FLOORS Securing and Prompt intervention Renovation Installation Building cleaning  Removal of rickety objects of the  Restructuring and

  13. Slide 13: Superior and Innovative Market Offering (2/3)

    INVESTMENT CASE 1 SUPERIOR AND INNOVATIVE MARKET OFFERING COMPARING TO THE TRADITIONAL OFFERING (2/3) Here the advantages of the double rope safety identified over the years: 1 Higher construction site safety - zero injury 2 No exposure to the risk of theft - no scaffolds 3 Less invasiveness of the

  14. Slide 14: Superior and Innovative Market Offering (3/3): Reference Projects

    INVESTMENT CASE 1 SUPERIOR AND INNOVATIVE MARKET OFFERING COMPARING TO THE TRADITIONAL OFFERING (3/3) NUVOLA DI FUKSAS REFERENCE PROJECTS SAMSUNG DISTRICT (Rome) (Milan) Coating and supply and installation of life lines Window and Glass Cleaning of commercial building PONTE VECCHIO FORI IMPERIALI (F

  15. Slide 15: Potential Addressable Market to Conquer (1/4)

    INVESTMENT CASE 2 POTENTIAL ADDRESSABLE MARKET TO CONQUER (1/4) # of Italian building units (2011): 14,5M No residential buildings # OF 15,70% RESIDENTIAL BUILDINGS: 12,2M of which # of Residential buildings with ≥ 3 floors: ~ 4,1M Residential buildings 84,30% Geographical breakdown of the Italian b

  16. Slide 16: Potential Addressable Market to Conquer (2/4)

    INVESTMENT CASE 2 POTENTIAL ADDRESSABLE MARKET TO CONQUER (2/4) EDAC, a growing player well positioned to conquer.. .. a market that offers significant room for growth Consolidated Revenues 2017: € 2013-2017 Cagr: 17,4M +46,1% Investments in restructuring services in # of Italy in 2016: Completed €

  17. Slide 17: Potential Addressable Market to Conquer (3/4)

    INVESTMENT CASE 2 POTENTIAL ADDRESSABLE MARKET TO CONQUER (3/4) The investments in restructuring services show a steady growth, despite the negative trend of the real estate investments starting from the end of 2008 Investments in restructuring services in Italy (€/B), 2007-2016 67,0 69,4 63,9 64,1

  18. Slide 18: Potential Addressable Market to Conquer (4/4)

    INVESTMENT CASE 2 POTENTIAL ADDRESSABLE MARKET TO CONQUER (4/4) COMPETITIVE ARENA ITALY: SMALL PLAYERS WITH A REGIONAL COVERAGE EUROPE: A VERY FRAGMENTED MARKET Revenues by Italian players (€/M), 2016 Number of European players by revenues (#), declared average revenues (€/M) National 3 coverage 12

  19. Slide 19: Scalable Business Model Driven by Standardization of Process

    INVESTMENT CASE 3 SCALABLE BUSINESS MODEL DRIVEN BY STANDARDIZATION OF PROCESS AND SEIZING MARKET OPPORTUNITY drives in A MARKET OPPORTUNITY STANDARDIZATION SCALABILITY CHARACTERIZED BY OF PROCESS FRAGMENTATION # Operation # Point # Area manager teams of sales acrobats 2013 26 4 27 Sales manager Ope

  20. Slide 20: Accelerate Revenue Growth Thanks to Extensive Sales Network

    INVESTMENT CASE 4 ACCELERATE REVENUE GROWTH AND PROFITABILITY THANKS TO THE EXTENSIVE SALES NETWORK CONSOLIDATED REVENUES (€/000) - FY 2013/2017 - 1H2017/1H2018 2013-2017 Cagr: +46,1% Points of sales by city (#) as of June 30, 2018 17.355 +30,1% 13.338 +43,7% 11.113 9.266 +45,6% +78% 7.633 Branches

  21. Slide 21: Growing Team of Trained Personnel Driven by Performance

    INVESTMENT CASE 5 GROWING TEAM OF TRAINED PERSONNEL DRIVEN BY PERFORMANCE The experienced Top Management After a previous experience in the food trade, Riccardo envisioned EDAC in 1994. HR activity covers all the different phases to guarantee the same level of productivity and quality Riccardo Anna

  22. Slide 22: Table of Contents

    TABLE OF CONTENTS  EDAC AT GLANCE  INVESTMENT CASE  FINANCIALS  FUNDING STRATEGY  APPENDIX 22

  23. Slide 23: Group Figures as of December 31, 2017

    FINANCIALS GROUP FIGURES as of December 31, 2017 17,4 14,8 1,5 0,7 0,4 (85%) (8,9%) (4%) (2,1%) 2017 CONSOLIDATED Branches Franchisee Grants related to Other revenues REVENUES (€ M) revenues revenues income 14,2% 30% down 70% within 44,4% EBITDA MARGIN payment 60 days 16,2% RECEIVABLES CONTRACT MARG

  24. Slide 24: Revenues Generation

    FINANCIALS REVENUES GENERATION Construction Average # of sites Order Size Branches Branches revenues ~93,7% of Consolidated Total Strong completed Euro ~ 5.3001  27 branches2 Revenue construction sites Average order size growth: +20,8% growth: +33% (2016-2017) (2016-2017) # of Franchisee Initial fe

  25. Slide 25: Revenues Analysis (1/2)

    FINANCIALS REVENUES ANALYSIS (1/2) CONSOLIDATED REVENUES (€/000) - FY 2016/2017 17.355 +30,1% 13.338 The 30,1% increase of Consolidated Revenues in 2017 was due to the opening of new branches (+12) and to the seniority of the acrobats earned over the years. 2016 2017 CONSOLIDATED REVENUES BREAKDOWN-

  26. Slide 26: Revenues Analysis (2/2)

    FINANCIALS REVENUES ANALYSIS (2/2) BRANCHES REVENUES SEGMENT REVENUE COMPOSITION BY CLIENT (%) – FY 2016/2017 # of COMPLETED SERVICES (%) - FY 2016/2017 2016 2017 2016 2017 € 9,6M € 11,9M Residential (84,2%) (81%)  Private buildings Public Administration Proofing Proofing  Schools and university 5

  27. Slide 27: Contract Margin and EBITDA Analysis

    FINANCIALS CONTRACT MARGIN AND EBITDA ANALYSIS CONSOLIDATED CONTRACT MARGIN (€/000; %) - FY 2016/2017 7.701 +7,7% The 7,7% increase of Consolidated Contract Margin in 2017 was due to 44,4% the hiring of new acrobats (+70) that decreased the seniority in 2017 (about 1.8 years in 2017 vs 2.0 years in

  28. Slide 28: Costs Analysis

    FINANCIALS COSTS ANALYSIS COSTS BREAKDOWN (€/000; %) - FY 2016/2017 • Contract costs: mainly represented by material and salary of acrobats and Total costs 2017 (Euro/000): 15.232 technical sales rep. • Direct costs: 9.652 (63,4%) 9.652 • Indirect costs: 5.238 (34,4%) • Structural costs: are the sal

  29. Slide 29: EBIT and Earnings Analysis

    FINANCIALS EBIT AND EARNINGS ANALYSIS CONSOLIDATED EBIT and EBIT Adjusted (€/000;%) - FY 2016/2017 CONSOLIDATED NET INCOME (€/000;%) - FY 2016/2017 2.657 2.717 1.813 2.295 1.953 (15,5)% 19,9% YoY (26,5)% (40)% 1.038 11,3% 13,6% 5,9% 2016 2017 2016 2017 EBIT EBIT Adj 20,3% 19,9% 11,3% 13,2% 29

  30. Slide 30: NWC & Cash Flow Analysis

    FINANCIALS NWC & CASH FLOW ANALYSIS NET WORKING CAPITAL (Euro/000) - FY 2016/2017 NWC: € 2.443k 5.475 NWC: € 3.781k 4.133 2016 -88 2017 -133 -1.602 -1.561 CWC Tax Payables Other Net Payables/Receivables COMMERCIAL WORKING CAPITAL (Euro/000) - FY 2016/2017 CASH CONVERSION CYCLE (days) - FY 2016/2017

  31. Slide 31: Net Financial Position and Equity Analysis

    FINANCIALS NET FINANCIAL POSITION and EQUITY ANALYSIS NFP (Euro/000) - FY 2016/2017 2017 NFP/EBITDA Adj: 0,8x € 2.340k 2016 NFP/EBITDA Adj: 0,3x 5.000 € 949k Bond 927 221 Long term financial debt 1.657 2.170 Short term financial debt -929 2016 2017 Cash and cash equivalents -5.757 Equity (Euro/000)

  32. Slide 32: Cash Flow Analysis

    FINANCIALS CASH FLOW ANALYSIS BRIDGE ANALYSIS (Euro/000) - 31 Dec 2017 Net cash flow: ~ € (1.393)k Tax Δother current ΔCWC assets/liabilities EBITDA Net Investments 2016 NFP Changes 2017 NFP Interest in share capital expenses 32

  33. Slide 33: 1st Semester 2018 Figures

    FINANCIALS 1st SEMESTER 2018 FIGURES TOTAL REVENUES (Euro/000) CONTRACT MARGIN (Euro/000;%) 11.113 5.414 7.633 +45,6% +56,1% 3.469 48,1% 43,1% 1H2017 1H2018 1H2017 1H2018 • +3 new openings launched as of EBITDA and EBITDA Adj (Euro/000;%) June 30, 2018: EBIT and EBIT Adj (Euro/000;%)  Novara  Roma

  34. Slide 34: Table of Contents

    TABLE OF CONTENTS  EDAC AT GLANCE  INVESTMENT CASE  FINANCIALS  FUNDING STRATEGY  APPENDIX 34

  35. Slide 35: Funding Strategy

    FUNDING STRATEGY FUNDING STRATEGY AREA INVESTMENT RATIONALE • Strenghtening of the commercial activities addressed to Residential buildings - through 1 CONSOLIDATION OF THE ITALIAN MARKET 15-20% the launch of new point of sales (branches COVERAGE and franchisee) • Development of dedicated divisions

  36. Slide 36: Table of Contents

    TABLE OF CONTENTS  EDAC AT GLANCE  INVESTMENT CASE  FINANCIALS  FUNDING STRATEGY  APPENDIX 36

  37. Slide 37: Warrants and Price Adjustment Share

    APPENDIX WARRANTS and PRICE ADJUSTMENT SHARE WARRANTS 2019/2021 PRICE ADJUSTMENT SHARE  Issuing ratio: 1 warrant for 4 ordinary shares  #PAS = 20% of the ordinary shares pre-IPO  Maturity: 3 years  EBITDA TARGET 2018 = € 4,2M  Exercise period: 3 periods of 30 days each, in  Floor (EBITDA 2017)

  38. Slide 38: Consolidated Profit & Loss

    APPENDIX CONSOLIDATED PROFIT&LOSS EDAC - Consolidated Profit and Loss (Euro/'000) 2016 % 2017 % 1H2017 % 1H2018 % Branches revenues 11.359 85,2% 14.761 85,1% 6.609 86,6% 9.706 87,3% Franchisee revenues 1.111 8,3% 1.515 8,7% 537 7,0% 1.014 9,2% Grants related to income 455 3,4% 686 4,0% 343 4,5% 339

  39. Slide 39: Consolidated Balance Sheet

    APPENDIX CONSOLIDATED BALANCE SHEET EDAC - Balance Sheet (Euro/'000) 2016 2017 1H2018 Trade receivables 5.123 6.728 9.344 Inventories 472 1.024 1.231 Trade payables (1.462) (2.277) (2.989) CWC 4.133 5.475 7.587 Other current assets 2.114 2.171 3.001 Other current liabilities (2.202) (2.304) (2.990)

  40. Slide 40: Group Structure and Shareholders

    APPENDIX GROUP STRUCTURE AND SHAREHOLDERS Riccardo Anna Marras Iovino 80% 20% ARIM HOLDING S.r.l. 85% EDAC Versilia1 55% EDAC Sicilia2 95% EDAC Biella3 100% EDAC Roma Trastevere 1 5% owned by Simone Muzio, 5% by Raffaele Pancani, 5% by Vincenzo Polimeni Ipo Perimeter 2 40% owned by OSM Value S.r.l.

  41. Slide 41: Structure of the Operational Offices

    APPENDIX STRUCTURE OF THE OPERATIONAL OFFICES Area manager Sales manager Operation manager From 1 to 3 From 1 to 6 depending on the growth of depending on the the Point of Sales growth of the Point of Sales Technical sales rep Operational teams # of Operational teams 2013-2017 - 1H2018 105 As of Jun

  42. Slide 42: The Operational Offices: Responsibilities and Tasks

    APPENDIX THE OPERATIONAL OFFICES: RESPONSABILITIES AND TASKS Area manager: manages the financial, commercial and technical performance of the operational office, manages the relationship with Corporate customers, supports the team, draws up safety documentation on site, manages the planning of the o

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