Arteche Lantegi Elkartea Sa · BME:ART
Arteche Lantegi Elkartea Sa — Investor Presentation (2024)
39 slides from Arteche Lantegi Elkartea Sa's investor presentation, 2024
Slide 1: Arteche Corporate Presentation 2024
Arteche Corporate Presentation 2024 0
Slide 2: Disclaimer
Disclaimer The information contained in this presentation of results has been prepared by Arteche Lantegi Elkartea, S.A. (hereinafter the Company or Arteche Group) and includes financial information drawn from the annual accounts of the Company and its Group as of fiscal years 2017 to 2023 audited b
Slide 3: Snapshot of Arteche
Snapshot of Arteche Revenue growth €401m Key financial figures (FY 2023) We are a global designer, +12% CAGR ‘17-’23 manufacturer, integrator and provider of electrical equipment… Focus on renewables >35% Activity of 2023 Rev. … and solutions for the measuring, Attractive operating profitability 10%
Slide 4: Key milestones achieved since our incorporation in 1946
Key milestones achieved since our incorporation in 1946 Through our +75 years of activity we have achieved a unique expertise and positioning within the industry 3
Slide 5: Value-add product portfolio
Value-add product portfolio Measurement & Monitoring Transmission & Distribution Network Reliability Systems Grid Automation 2023 Revenues by business line Network Reliability 11% Solutions that guarantee the Services that strengthen T&D Grid Expertise in products focused digitalization and automati
Slide 6: Arteche's presence across the value chain
Arteche’s presence across the value chain 5
Slide 7: Manufacturing capabilities
Manufacturing capabilities Key figures Production and distribution footprint Headquarters Countries with commercial 175 distribution capabilities Sales footprint Physical presence Factories in Europe, (factories and/or 13 America and Asia… delegations) …including dedicated R&D 7 centres Commercial d
Slide 8: Historical financials: solid business model
Historical financials: solid business model 7
Slide 9: Key investment highlights
Key investment highlights Positive trends within the renewables and transmission & distribution markets are Positive 1 generating new opportunities perspectives Leading independent group backed by key pillars that strengthen our 2 leadership position Differentiated 3 Long-term relationship with sect
Slide 10: Positive trends within renewables and transmission & distribution markets
Positive trends within the renewables and transmission & distribution 1 markets are generating new opportunities 9
Slide 11: Arteche's addressable market and leadership positioning
2 Arteche’s addressable market and leadership positioning Main markets Global market size Leadership position Key players High voltage #2 instrument transformers #2 Measurement & Monitoring > €1.5bn Systems Medium voltage #1 instrument transformers #2 Relays #1 > Electricity sector > Railway sector
Slide 12: Competitive landscape
2 Competitive landscape Arteche’s unique business model has the competitive advantage of being hybrid between Tier I and Tier II players, bringing the flexibility of small players while having international footprint and offering a wide range of product portfolio 11
Slide 13: Customer retention and customer acquisition process
2 Customer retention and customer acquisition process Direct relationship with the end user Indirect relationship with the end user Each company has its own standards and criteria for Technical approval / technical approvals Homologation Framework agreement Specifications and internal analysis Produ
Slide 14: Long-term relationship with sector-leading clients
3 Long-term relationship with sector-leading clients Utilities >1,500 globally(1) 1 2023 Revenues by 2023 Revenues client type concentration Others, 10% Client A, 14% Client B, 4% OEM Diversified Utilities Client C, 3% 15% customer base 30% Client D, 2% Client E, 2% Distributors Others 25% EPC 76% T
Slide 15: Industry reference company backed by our outstanding innovation capacity
Industry reference company backed by our outstanding innovation 4 capacity Annual investment in R&D(1) (€m) R&D team with 200 people 12.1 9.7 10.0 11.0 Dedicated 8.8 9.2 9.3 5.1 5.6 team sourced +199,000 hours in 2023 in R&D 5.7 4.4 4.5 4.7 4.9 with recurrent 4.7 4.6 5.1 5.9 6.5 4.0 4.4 investment c
Slide 16: Scalable business with a clear strategic roadmap 2024-26
5 Scalable business with a clear strategic roadmap 2024 - 2026 Inorganic Strategy New solutions Geographic expansion Such as, Digitalization, Bet on renewables and Expand into the USA and Asia; and ESG and Energy storage solutions consolidate presence in Europe New businesses Solid New business segm
Slide 17: Strategic plan 2024-2026: committed to ambitious targets
5 Strategic plan 2024 – 2026: committed to ambitious targets Accelerating profitability and cash generation 16
Slide 18: Best-practices in Corporate Governance
6 Best-practices in Corporate Governance Current shareholding structure The Board of Directors Free-float Mr. Alexander Artetxe 15.4% Chairman & CEO Onchena S.L. 5.6% Mr. Lander Mr. José María Arteche Abril Arteche family Executive Other external 52.4% Basque Private Equity Fund (rep. Ziskua Ber S.L
Slide 19: Environmental and Social responsibility plans at the centre of core activities
Environmental and Social responsibility plans always at the centre of 7 Arteche’s core activities Sustainability Strategic Goals 2030 10 strategic objectives 1 Net-zero carbon Products designed with ecological insulation. 5 strategic lines 100% use of Renewable Digitalization of all processes. 2 Ele
Slide 20: Closing remarks
Closing remarks Arteche presents strong investment fundamentals 1 2 3 4 5 Industry leader Unique Top positioned on serving niche Smart innovation Strong growth investment structurally products to a wide capabilities and perspective opportunity with growing markets client base in a top notch support
Slide 21: FY 2023 Earnings Release
FY 2023 Earnings Release March 19, 2024
Slide 22: Disclaimer
Disclaimer The information contained in this presentation of results has been prepared by Arteche Lantegi Elkartea, S.A. (hereinafter the Company or Arteche Group) and includes financial information drawn from the the full year consolidated accounts of the Company and its Group as of December 31, 20
Slide 23: FY 2023 Key highlights
FY 2023 Key highlights Orders grew in the year by +16.4% to €474.1 million, well above market growth. All geographic regions and business lines grew significantly. Revenue increased by +16.0% to €401.3 million and grew by double digit both in H1 and H2. Direct margin reached 32.1% in FY23 vs 29.7% i
Slide 24: FY2023 Guidance Met
FY2023 Guidance Met Guidance Reported Achievement FY2023 FY 2023 Revenue(€ million) 385.0 – 405.0 401.3 EBITDA (€ million) 36.5 – 40.5 40.7 EBITDA Margin 9.5% - 10.0% 10.1% (% over revenue) 23
Slide 25: Historical figures: solid business model
Historical figures: solid business model EBITDA Net debt Revenue (€ million) (€ million and % o/revenue) (€ million and times EBITDA) 140 600,00% 45,0 12,00% 5.4 10% 120 500,00% 401 40,0 10,00% 346 35,0 100 3.7 11% 400,00% 9% 30,0 2.9 8,00% 282 10% 9% 80 255 265 11% 11% 2.2 25,0 300,00% 217 6,00% 60
Slide 26: FY 2023 Financial highlights
FY 2023 Financial highlights Order Direct NFD / Revenue EBITDA Net profit intake Margin(1) EBITDA €474.1m €401.3m €133.6m €40.7m €12.1m 1.0x +16.4% +16.0% +29.7% +35.1% +56.9% vs 1.6x at 31 y/y y/y y/y y/y y/y (+23.3% (+39.7% (+41.3% December at constant at constant at constant 2022 currency(2)) cur
Slide 27: Revenue continued in FY23 its trend of double-digit growth
Revenue continued in FY23 its trend of double-digit growth Order intake (€m,%) Revenue by geographical region(1) (€m,%) +16.4% +16.0% 401.3 474.1 345.9 +0.0% 12% +24.1% APAC 407.3 12% 14% 15% 12% 14% 13% +33.3% +19.3% LATAM 14% 35% 33% 33% +21.8% 37% +4.4% NAM 40% 40% +10.8% 38% 37% +24.8% EMEA FY 2
Slide 28: Positive contribution from all businesses
Positive contribution from all businesses Revenue by business line (€m,%) Measurement and Monitoring Systems Reaching #2 in High Voltage and Top 3 in Medium Voltage in regional markets +16.0% ✓ Record production in all HV & MV plants. 401.3 ✓ Top four markets (same as in 2022): US, Spain, Mexico and
Slide 29: Direct margin improvement in FY23
Direct margin improvement in FY23 Direct margin(1) evolution by year Direct margin(1) evolution by half (% of income at selling price(2)) (% of income at selling price(2)) +242 bps vs FY22 32.1% 32.1% 32.0% 31.1% 30.5% 30.2% 30.6% 29.7% 28.5% FY21 FY22 FY23 H121 H221 H122 H222 H123 H223 (1) Direct m
Slide 30: EBITDA FY 2023: Record growth of +35% in the year
EBITDA FY 2023 Record growth of +35% in the year EBITDA evolution by half (€ million,% of revenue) EBITDA FY23: €40.7m (10.1% o/revenue) 25,0 10.9% 12,0% (+143 bps vs FY 22) 10,0% 20,0 9.0% 9.3% ▪ EBITDA increased in the year as a result of 10.1% 8,0% record sales volume, updated sales prices 15,0 8
Slide 31: Net profit FY 2023: Record growth of +57% in the year
Net profit FY 2023 Record growth of +57% in the year Net profit (€m) and EPS (€/share) 14,0 0,30 12,0 +56.9% 0.21 0,25 10,0 0,20 0.16 8,0 0.13 0,15 6,0 12.1 4,0 8.5 0,10 7.7 2,0 0,05 0,0 0,00 FY2021 FY2022 FY2023 Shareholder remuneration: The Board of Directors proposes the distribution of a dividen
Slide 32: Net financial debt at December 31, 2023
Net financial debt at December 31, 2023 Leverage ratio improvement in the year Net financial debt (NFD) / EBITDA FY 2023 Gross financial debt breakdown evolution (€ million, times EBITDA) by source (%) Avg. maturity: 3.8 years 1.6x Avg. cost: 4.2% Bank debt 49.0 -40.7 1.0x 12% 39% 5% +2.3 41.7 +6.6
Slide 33: Our ESG Commitment
Our ESG Commitment Moving forward with our 2030 ESG strategy Target Indicator FY23 2030 58% Total D+ND waste Reused or recycled waste (reused + recycled)/ Total D+ND waste 100% generated (%) Net Zero Environment Reduce carbon footprint Scope 1+2 emission reduction vs2021 39% >50% Carbon Total renewa
Slide 34: Outlook for FY 2024
Outlook for FY 2024 Outlook FY2023 FY2024 Change Revenue (€ million) 401.3 440.0 – 460.0 +10% / +15% EBITDA (€ million) 40.7 45.8 – 50.6 +13% / +24% EBITDA Margin 10.1% 10.4% - 11.0% +30bps / +90bps (% over revenue) 33
Slide 35: Conclusions
Conclusions 1 2 3 4 5 Outstanding Transforming Focus on cash Strength in growth in orders our portfolio Ongoing flow generation revenue (+16.4% y/y) and through new (special focus on together with a products and commitment revenue (+16.0% tight cost inventory markets to ESG that’s y/y) in a context
Slide 36: Q&A
Q&A ARTECHE LANTEGI ELKARTEA, S.A. Investor Relations Office Tel: +34 620 328 643 investors@arteche.com www.arteche.com
Slide 37: Annex | Alternative Performance Measures (APM)
Annex | Alternative Performance Measures (APM) APM Unit Definition FY 2023 30 June 2023 FY 2022 Income at €m Revenue +/- Change in stocks at sale price €416.6m = 401.3 + 15.3 €206.8m = 188.0 + 18.8 €347.5m = 345.9 + 1.6 selling price Supplies (without depreciations or extraordinary costs) + direct €
Slide 38: Annex | Key Financial Figures
Annex | Key Financial Figures Key Financial Figures €m 31.12.2023 31.12.2022 % change Revenue 401.3 345.9 +16.0% Direct margin 133.6 103.0 +29.7% Direct margin (% over income*) 32.1% 29.7% +242.0bps EBITDA 40.7 30.1 +35.1% EBITDA margin (% over revenue) 10.1% 8.7% +143.2bps EBIT 24.2 14.3 +69.2% EBI
Slide 39: Annex | Consolidated Balance Sheet
Annex | Consolidated Balance Sheet Consolidated Balance Sheet €m 31.12.2023 31.12.2022 Non-current Assets 106.7 108.7 Current Assets 221.1 210.7 Inventories 82.9 72.2 Trade and other receivables 72.6 78.4 Short-term financial investments 4.1 3.3 Cash and cash equivalents 60.8 56.2 Others 0.7 0.6 TOT
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