Eurotech S.p.a. · MIL:ETH
Eurotech — STAR Conference March 2024
32 slides from Eurotech's conference presentation, March 2024
Slide 1: Company Introduction
March 2024 COMPAN Y INTRODUCTION
Slide 2: Eurotech's roots: a boutique of embedded computers for demanding applications
Eurotech’s roots: a “boutique” of embedded computers for demanding applications custom | rugged | any vertical market #2
Slide 3: Eurotech's offering evolution from embedded computers to complete edge solutions
Eurotech’s offering evolution from embedded computers to complete edge solutions 1999 2012 2021 co-authors of Co-founders of IEC 62443 MQTT with IBM Open-source IoT unleashing the power of the edge HW HW integrated intelligent edge modules subsystems HW & SW devices #3
Slide 4: Our mission today: unleashing the power of the edge
unleashing the Power of the Edge our mission we connect valuable assets to the cloud today & enable edge AI in mission-critical applications #4
Slide 5: We play at the Edge of Industrial IoT
we play at the Edge of Industrial IoT easy northbound integration & connection connection to cloud platforms service system integrator content deliv. netw app & analytics third-party AI software platforms edge software Cybersecurity by design and certified edge edge & data centers eurotech on integr
Slide 6: Become a leading Edge AIoT player
strategic direction: gain relevant market share (>3-5%) in Integrated HW/SW for EDGE AIoT: Gateways Edge Servers Edge AI Systems become a with integrated SW as a unique selling point Edge SW framework (ESF) leading Cloud SW platform (EC) focusing on 4 market verticals Edge AIoT Industrial Automation
Slide 7: Our journey: from niche player to relevant player in Edge AIoT
our journey: from niche player in custom embedded boards & systems to a relevant player in Edge AIoT from to progress many market segments 4 focused verticals customized more standard HW boutique scaling an integrated HW/SW offering predominantly embedded predominantly edge AIoT non-repetitive busin
Slide 8: Our offering
our offering scalable HW/SW core vertical intimacy through domain specific features & certifications + edge AI #8
Slide 9: Scalable-modular HW+SW offering with vertical intimacy
Scalable-Modular HW+SW offering: Vertical intimacy achieved through domain specific features & certifications + edge AI INTIMACY VERTICAL Edge AI Edge AI Edge AI Edge AI HW/SW certif. HW/SW certif. HW/SW certif. HW/SW certif. ESF app hosting / EC app remote maintenance integrated cybersecurity by de
Slide 10: 4 product families in 4 verticals with Tiger Teams
4 product families in 4 verticals with Go-to-Market accelerated by Tiger Teams Hyperscalers Tiger Consolidated Edge ADAS Tiger Team Team Tiger Team edge gateway edge software edge servers edge AI AI & SW applications #10
Slide 11: 6 routes to customers
6 routes to customers Hyperscalers and System Integrators are key sponsors Route 1 Route 2 Route 3 Hyperscalers GLOBAL 2000 OEM COMPANIES Route 4 Large System Integrators Route 5 CPU & GPU vendors Route 6 OT System Integrators #11
Slide 12: What customers do with our technology
what customers do with our technology sample use cases #12
Slide 13: Transportation & mobility
transportation & mobility Agnostic software platform delivering a real-time digital twin of a locomotive by combining metrics from heterogeneous subsystems. More than 2000 locomotives from diverse vendors connected. predictive maintenance performance measurement situational awareness & fleet managem
Slide 14: Medical & healthcare
medical & healthcare Automated monitoring and remote diagnostics to avoid manual intervention and deliver uninterrupted operation. Cybersecure remote asset maintenance to reduce on-site visits. data analytics equipment monitoring device management #14
Slide 15: Transportation & mobility
transportation & mobility Perform remote and predictive maintenance Maximize yield while improving sustainability Precise on-field performance by enabling AI at the edge situational awareness & machine real time AI-based monitoring decisions on field predictive maintenance #15
Slide 16: What makes us different
what makes us different agnosticity ease of implementation cybersecurity #16
Slide 17: We are different because we are open source
we are different because we are open source Middleware for IoT Gateways Modular IoT Integration Platform #17
Slide 18: Plug-to-play. Field-to-cloud.
Plug-to-play. Field-to-cloud. simplicity delivered in mass deployments & throughout the lifecycle Plug-n-Play Fieldbus 3 Everyware Cloud 1 Protocols for Device 1 edge gateway Connection & Virtualisation INDUSTRIAL edge server edge AI device vertical markets Certified Multi Cloud Connectivity AWS IoT
Slide 19: Unique cyber-security certifications enabled by integrated SW/HW design
we are different because of our unique cyber-security certifications enabled by integrated SW/HW design FIRST IN THE WORLD TO ACHIEVE digital twins & IEC GATEWAY CERTIFICATION device management updates & monitoring data and device management edge platform hardened OS secure, reliable hardware PSA ce
Slide 20: Constantly recognized by leading industry analysts
Constantly recognized by leading industry analysts 4 times in the Gartner Magic Quadrant for Industrial IoT Platforms (2019, 2020, 2021, 2022) 3 times "Best in Class” in Open Digital Platforms for Open Source-based Industrial IoT in the PAC / teknowlogy RADAR (2019,2020, 2022) 3 times “Technology Le
Slide 21: Business update
business update #21
Slide 22: Normalised revenue tells an organic growth story
normalised revenue tells an organic growth story -12% +22% +41% Restatements: +15% PPVs 2021 Overstocking / Destocking Delayed deliveries 2022 2023 InoNet core = revenues as a stand- alone company InoNet organic growth driven by ETH counted as ETH core REPORTED EUROTECH CORE EUROTECH CORE W/O INONET
Slide 23: InoNet promises coming true: EBITDA growing 4x in 1 year
InoNet promises coming true ebitda growing 4x in 1 year #FY23 revenues +15% YoY organic growth #new wins on ADAS giving a better mix, to the benefit of GPM #GPM up ca. 520 bps YoY thanks to a better mix, plus actions on prices vs customers & suppliers coming to fruition #EBITDA margin @ 11% with goo
Slide 24: Strategic pivoting: Edge AIoT surpassing legacy embedded in 2024
company strategic pivoting is happening Edge AIoT surpassing Legacy Embedded in 2024 embedded boards & systems edge AIoT hw & sw 68.1 55.1 49.7 CAGR 38.6 26.2 13.4 2021 2022 2023 2024 2021 2022 2023 2024 #24
Slide 25: Recap of FY23 journey business wise
recap of FY23 journey business wise hardware IEC certified Edge AI HW family AWS Greengrass + ESF = Everyware GreenEdge software Zero-Touch Provisioning (ZTP) AWS channels OT system integrators #25
Slide 26: Focus points FY24 business imperatives
focus points FY24 business imperatives accelerate edge AI (shorter time-to-market) in security, asset monitoring, end-of-line inspection, and automatic optical inspection applications round 2 of channel play: moving on to the next big partner, replicating AWS success keep momentum in ADAS: hot topic
Slide 27: Bumpy road ahead
bumpy road ahead Overstocking during component shortage followed by Destocking has accelerated the phase-out of legacy embedded business in US Japan affected by destocking but not phasing out from legacy embedded business We have taken the opportunity to cut OPEX linked to the legacy embedded busine
Slide 28: Financial update FY 2023
financial update FY 2023 #28 #28
Slide 29: 12 months growth driven by Edge AIoT transformation
12 months growth driven by Edge AIoT transformation journey progressing with a steady pace 17.1 All values in € million #Edge AIoT 94.3 93.8 growing organically 20% -13.9 growing 79% in total -3.7 #InoNet accelerating Edge AIoT growth in EU #Legacy embedded business impacted by destocking FY FX Delt
Slide 30: Europe pushed by InoNet consolidation
Europe pushed by InoNet consolidation breakdown by end-customer location #US traditional embedded other other business impacted by destocking 5 EU 5 % 24 EU % #Europe boosted by strong % JP 41 28 % 30 % % FY FY growth on Edge AIoT and InoNet 2022 2023 consolidation JP 41 % 25 % #Japan facing some de
Slide 31: EBITDA margin in mid-single digit
EBITDA margin in mid-single digit GM improvement offset by opex increase linked to InoNet consolidation 2.049 1.447 913 6.463 6.264 -714 5.531 5.280 -4.433 -210 -135 -251 All values in € million EBITDA Non FX rate EBITDA Higher Better InoNet Opex Other EBITDA ADJ Non EBITDA 2022 ACT recurrent effect
Slide 32: Balance sheet normalizing after component shortage effects
balance sheet normalizing after component shortage effects All values in € million Finally extracting cash parked in extra inventory Half of NFP decrease linked to forex effects Payables reduction linked to normalization of purchasing volumes 7.5 23.9 19.9 -14.4 1.9 -0.8 1.0 -3.3 -3.1 -3.8 -1.6 -20.