Slide 1: 2023 first quarter results
2023 first quarter results INVESTORS LIVE STREAMING PRESEN TA TI ON
Slide 2: Disclaimer
disclaimer This presentation has been prepared by Eurotech S.p.A. (or “Eurotech”) and has to be read in conjunction with its oral presentation. The information contained in this presentation does nor purport to be comprehensive. Neither Eurotech nor any of its officers, employees, advisers or agents
Slide 3: Q1 2023 financial highlights
Q1 2023 financial highlights Organic double-digit growth YoY continues +23% at constant exchange rates Gross Profit Margin close to aspired run-rate 47.7% (w/o InoNet), 46.9% (with InoNet) EBITDA positive streak continues YoY swing from -1M€ in Q1 ’22 to +1.6M€ in Q1 ’23 Net profit in black numbers
Slide 4: Business update
@eurotech business update
Slide 5: Main initiatives in 2023 to accelerate our Time-To-Market journey
2 aimed at shorter Time-To-Market business main win in Assisted & Autonomous Driving win in Consolidated Edge initiatives in 2023 1 aimed at longer to accelerate our Time-To-Market business journey… win Edge IoT with Hyperscalers #5
Slide 6: Assisted & autonomous driving marketing campaigns
assisted & autonomous driving 2 marketing campaigns targeting key roles in ADAS design in Europe & North America 12 new logos engaged 2 hot projects in Europe 1 hot project in US 25M€ opportunities LTV identified so far #6
Slide 7: Consolidated edge (HW+SW+3rd party AI)
consolidated edge (i.e., HW+SW+3rd pty AI) CliCK / TraCK Automatic Optical 2 new pilot projects VDC’s “Embeddy” award Inspection (AOI) activated for our family of First pilot in progress Over 1,000 devices secure edge AI devices Qualifying additional under discussion 10 leads #7
Slide 8: Indirect sales for Edge IoT via hyperscalers: progress so far
indirect sales for Edge IoT via hyperscalers progress so far 3-year LTV vertical market # opps unweighted Rev. energy & grids 6 5 M€ industrial automation 7 23 M€ transportation & off-road 3 1.4 M€ total 16 29.4M€ number and size of referrals #8
Slide 9: Incremental pipeline all on Edge AIoT
incremental pipeline all on Edge AIoT revenues accelerating in integrated HW+SW for mission-critical Edge AIoT applications FY 2023 2021 2022 15% 23% ~35% Q1 @ 32% Edge AIoT Embedded #9
Slide 10: Visibility on FY2023 @ 85.5 M€
visibility on FY2023 Invoiced + Orders + Weighted Customer Commitments @85.5M€ Double digit growth confirmed in Q2 @85.5 M€ Still low visibility on H2 customers focus is on preventing inventory build-up time window to collect orders still open, especially for standard products (Edge GWs, Edge AI dev
Slide 11: Financial update Q1 2023
financial update Q1 2023 #11
Slide 12: Q1 2023 revenues growing double digit
Q1 2023 revenues growing double digit #Growth driven by Edge AIoT business 3.9 0.3 1.3 2.6 #Organic growth 23% (w/o forex effects) 24.9 17.4 #InoNet consolidation boosting growth to 46% (w/o forex effects) Q1 FX Delta Delta InoNet Q1 ’22 IoT Embedded Computer ’23 All values in € million #12
Slide 13: Revenue breakdown by end-customer location
Europe pushed by InoNet consolidation breakdown by end-customer location #US sustained by solid performance other other of legacy business EU 5 7 EU 15 % % % JP 26 33 % #Europe boosted by strong growth % on Edge AIoT and InoNet consolidation Q1 Q1 41 2022 2023 JP % 37 #Japan showing different distri
Slide 14: EBITDA swing thanks to GPM improvement and operating leverage
EBITDA swing thanks to GPM improvement and operating leverage 1.4 1.6 -0.5 -1.5 6.3 1.6 - 1.1 1.6 -1.0 0.0 EBITDA FX Volume Volume Mix & Net Net EBITDA Q1 InoNet shortage opex opex Q1 ’22 InoNet ’23 all values in € million #14
Slide 15: Balance sheet ruled by temporary inventory build-up
balance sheet ruled by temporary inventory build-up NWC impacted by temporary increase in NFP (net debt) impacted by NWC inventory as purchasing orders placed temporary increase 12-18 months ago materialised 3.2 21.9 1.6 19.9 -2.6 -14.4 -0.4 -0.3 -0.4 0.2 -1.1 -16.1 FY FX Cashflow Cashflow Cashflow
Slide 16: Key takeaways
@eurotech key takeaways UNLEASHING THE POWER OF THE EDG
Slide 17: Key takeaways
key takeaways Organic double-digit growth InoNet integration on a good pace, persists on revenues YoY offering synergies in progress Good start on margins, Components shortage long tail all in black numbers with GPM still impacting inventory, easing approaching run-rate and in coming quarters operat
Slide 18: Q&A
q&a ready to take qu estio ns #18
Slide 19: Thank you
thank you