Gvs S.p.a · MIL:GVS
Gvs — Q3 2020 Earnings Presentation
32 slides from Gvs's earnings presentation, November 2020
Slide 1: GVS SpA November 2020
GVS SPA NOVEMBER 2020 STRICTLY PRIVATE & CONFIDENTIAL
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation does not purport to be comprehensive and has not been independently verified by any independent third party. This presentation does not constitute a recommendation regarding the securities of the Company. This presentation does not contain an
Slide 3: Agenda
Agenda 1 YTD Sep 2020 Outlook 2 Company Presentation Appendix: Additional Materials This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than GVS, is severely forbidden.
Slide 4: Update on GVS Business
UPDATE ON GVS BUSINESS 1 Automation of the new 41 Lines 2 Start BP and Budgeting process 3 Launch of new RNA extractor for Covid testing 4 Restart of new product launch process GVS Focus 5 New Commercial offices in India and Malesia Q3 2020 6 Negotiation with local governements about contracts for 2
Slide 5: YTD Sep 2020 GVS Performance Highlights
YTD Sep 2020 GVS Performance Highlights Sales: 49,6% of growth on the previous year • Q3 reflected the full impact of the actions put in place to face the business acceleration due to the Covid 19 already started in Q2. • Trend FY2020 higher than the guidance given in May with an expecting closing a
Slide 6: 2020 Evolution of Sales
2020 EVOLUTION OF SALES TOTAL SALES YTD Sep 2020: 258,2 M€ All the three three GVS Divisions performed better than the original guidance. Health & Safety is still growing in terms of relative wheight on the total business as well as the Healthcare & Lifesciences. Health & Safety Healthcare & 37% Lif
Slide 7: Key Financial Highlights — EBITDA and EBIT
Key Financial Highlights — EBITDA and EBIT ADJUSTED EBITDA1 (€M) KEY COMMENTS Adjusted EBITDA: % on Sales • Adjusted EBITDA increased 35% in Q3 compared with Q2. • YTD Sep 2020 adjusted EBITDA increased 122% vs. the same period of 2019. ADJUSTED EBIT2 (€M) Adjusted EBIT: % on Sales • Adjusted EBIT h
Slide 8: Key Financial Highlights — Net Income, Fin. Exp. & Taxes
Key Financial Highlights — Net Income, Fin. Exp. & Taxes NET FINANCIAL EXPENSES EXCL. FX GAINS/LOSSES (€M) TAXES (€M) % on Sales % EBT ADJUSTED GROUP NET INCOME1 (€M) KEY COMMENTS % on Sales • Net Financial expenses is reducing in 2020 as a result of the NFP reduction. • Final effect of the effectiv
Slide 9: Key Financial Highlights — CapEx, TWC and R&D
Key Financial Highlights — CapEx, TWC and R&D CAPEX1 (€M) TRADE WORKING CAPITAL (€M) % on Sales % on Sales € 1.3 M inventory acquisition from Graphic Controls 1) € 2.2 M due Graphic Controls acquisition 2) € 7,3 M due to HC acquisition R&D2 (€M) KEY COMMENTS % on Sales • About 9,5 M€ as Capex relate
Slide 10: Key Financial Highlights — Net Financial Position
Key Financial Highlights — Net Financial Position NET FIN. INDEBTEDNESS (€M) AND CASH CONVERSION1 Cash 69.4% 74.3% 78.9% 76.0% conversion NFP / Adj EBITDA Ord. Net Cash in 38 Ext. Net Cash in 64 KEY COMMENTS NFP has decreased YTD Sep 2020 down to 1,2 M€, 102M€ less than year end 2019: • M&A and IPO
Slide 11: Visibility on FY 2020 Performance
VISIBILITY ON FY 2020 PERFORMANCE YTD Sep Results (€m) FY 2020 Guidance (€m) FY 2020 expected sales are higher than the last guidance and the expected closing should be about 350 M€, with the actual order book about 195M€ +54% 350 +50% 258,2 Actual YoY % 172,5 227,4 +424% H&S H&S E&M E&M -31% +32% H
Slide 12: Agenda
Agenda 1 H1 and FY 2020 Outlook 2 Company Presentation Appendix: Additional Materials This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than GVS, is severely forbidden.
Slide 13: Presentation
PRESENTATION FILTER TECHNOLOGY "ENERGY & aa 7 Soo"
Slide 14: Key People
Key People Massimo Mario Matteo Scagliarini Saccone Viola 35 years in GVS 23 years in GVS 11 years in GVS CEO CFO COO • MBA from Profingest Management • In GVS since 2008, started as • In GVS since 1985, started as Sales School, Bologna, Italy controller and currently serves as Manager and currently
Slide 15: GVS provides advanced filtration solution for critical applications
GVS provides advanced filtration solution for critical application in Highly-regulated end markets Our TECHNOLOGY supports LIFE and guarantees SAFETY in the most CRITICAL ENVIRONMENTS This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this d
Slide 16: GVS economic and production improvement over the last 40 years
GVS economic and production improvement over the last 40 years 1979 1984 1989 1994 1999 2004 2009 2012 2015 2018 2019 This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than G
Slide 17: The Head Office and manufacturing facilities are based in Italy
The Head Office and 3 manufacturing facilities are based in Italy This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than GVS, is severely forbidden.
Slide 18: GVS has 13 production facilities worldwide
GVS has 13 production facilities, in several worldwide locations. UK (1 plant) Romania Italy (1 plant) US (3 plants) (4 plants) China (2 plants) Mexico (1 plant) Brazil (1 plant) Presence with production plants Commercial presence Indirect sales This document and all its contents are property of GVS
Slide 19: Core Competences
GVS evolved from a small healthcare components supplier into a global diversified filtration group Solutions Focus Biology Product CORE COMPETENCES Focus Chemistry Chemistry Process Focus Automation Automation Automation 1979 ’90-’00 2012 Today Origin in healthcare Development and international Main
Slide 20: 14 M&A Transactions Since 2009
14 M&A TRANSACTIONS SINCE 2009 Adding capabilities and strengthening presence across China, the UK and North America Haemonetics Nypro M. BU Puerto Rico LLC Healthcare Filtration Graphic Nhion Nypro Germa Controls Sales licenses in Japan Medical Remploy Laboratory Filtration Filtration EPA Personal
Slide 21: Divisions and Products Line
Divisions and Products Line Healthcare & Life Sciences Health & Safety Energy & Mobility Healthcare & Liquid Personal Safety Powertrain & Drivetrain IV Vent Fuel pressure Flow Filters caps regulators Urea SCR filters Gasoline-diesel-urea Regulators Blood Transducer Disc filters PPE – Elipse fa
Slide 22: End Markets
Diversified blue-chip client base 2019A Revenues Division Breakdown1 (%) Illustrative example of companies requiring filtration solutions2 Healthcare Liquid and Healthcare 43% Healthcare Air & Life Sciences Laboratory 8% Personal Safety 6% End Markets Health & Safety Air Safety 4% Powertrain & Drive
Slide 23: GVS's divisions differentiate for an integrated and synergistic business model
GVS’s divisions differentiate for an integrated and highly synergistic business model Healthcare & Healthcare Energy & Life Sciences & Safety Mobility » Sales and Distribution » Similar stringent approval processes » Common Manufacturing processes and technologies » High quality standards required »
Slide 24: Strong focus on innovation and customer satisfaction
Our success is based on strong focus on innovation and customer satisfaction 7 ~8% 52 105 ~80 R&D centers with chemical and biological Of sales Patents for proprietary Highly skilled R&D External quality audits know-how in R&D products professionals p.a. International quality certificates Preferred
Slide 25: Quality Certification
Quality Certification GVS has obtained several Quality Certification, from several Certifiation Body • This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than GVS, is severely
Slide 26: An ESG-compliant organization
An ESG-compliant organization ENVIRONMENTAL SOCIAL GOVERNANCE 1 2 3 • UNI EN ISO 14001 certification • Support of a range local charitable • Ethics Code for Environmental Management and non-profit organizations • Board of Statutory System (EMS) achieved by the • In recent years, in lieu of Christmas
Slide 27: Agenda
Agenda 1 H1 and FY 2020 Outlook 2 Company Overview Appendix: Additional Materials This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than GVS, is severely forbidden.
Slide 28: Key Financial Highlights — Income Statement
Key Financial Highlights — Income Statement YTD 30/09 (€m) YTD Sep 2019A YTD Sep 2020A Var. % Healthcare & Life Sciences 86,6 115,4 33% Growth % Energy & Mobility 67,9 47,3 -30% Growth % Health & Safety 18,1 95,5 427% Growth % Revenues from contracts with customers 172,6 258,2 50% Other Income 2,1 1
Slide 29: Key Financial Highlights — Adjustments Overview
Key Financial Highlights — Adjustments Overview YTD 30/09 (€m) YTD Sep 2019A YTD Sep 2020A EBITDA 46,7 98,4 Capital gains from sale processes and leaseback (0,3) - Start-up costs 0,2 - Non recurring costs Write-off of tax receivables 0,1 - (income) Personnel reorganization costs 0,1 0,3 Transaction
Slide 30: Key Financial Highlights — Balance Sheet
Key Financial Highlights — Balance Sheet YTD 30/09 (€m) YTD Sep 2019A YTD Sep 2020A Property Plant & Equipment 46,6 67,3 Intangible Assets 99,8 94,5 Right of use 10,3 8,8 Financial Fixed Assets 0,4 0,9 Net Fixed Assets 157,2 171,4 Inventories 31,5 46,0 Trade Receivables 35,2 66,1 Trade Payables (13,
Slide 31: Key Financial Highlights — Cash Flow Statement
Key Financial Highlights — Cash Flow Statement YTD 30/09 (€m) YTD Sep 2020A Adjusted EBITDA 104,1 Taxes (17,9) Δ Net Working Capital (13,9) Net Capex (incl. Financial assets) (35,9) Operating Cash Flow 36,4 Net financial results (2,9) Extraordinary items (5,6) Δ Funds and provisions 0,1 Δ Equity 74,
Slide 32: Basis of preparation of financials
Basis of preparation of financials • Financial Overview slides present consolidated and division financial information of GVS S.p.A. and its reporting units • The financial information has been prepared in accordance to IFRS • Due to rounding, numbers expressed in millions throughout this section ma