Marzocchi Pompe S.p.a. · MIL:MARP
Marzocchi Pompe — H1 2022 Earnings Presentation
40 slides from Marzocchi Pompe's earnings presentation, Oct 6, 2022
Slide 1: 1H-2022 Results Presentation
1H-2022 RESULTS PRESENTATION 5 - 6 October 2022
Slide 2: Disclaimer
Disclaimer Privacy The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced with
Slide 3: Agenda
Agenda Company at a Glance 1H 2022 Results & Outlook Achievements Market & Competitive Positioning Appendix Business Overview 3
Slide 4: Marzocchi Pompe at a glance: world leader in top-performing products
Marzocchi Pompe at a glance: world leader in top-performing products Marzocchi Pompe is a leading world player in the design, production and marketing of high performance external gear pumps and Company motors, which are used in sectors like: industrial (textile machines, machine tools, plastic inje
Slide 5: Shareholders & Top Management: full alignment of interest
Shareholders & Top Management: full alignment of interest TOP MANAGEMENT BOARD OF DIRECTORS SHAREHOLDERS Paolo MARZOCCHI Paolo MARZOCCHI Free Float 22,82% (*) Main Shareholder, Executive Chairman Executive Chairman Carlo MARZOCCHI TABACCHI Vice Chairman Gabriele BONFIGLIOLI Crosar Capital SpA CEO 6,
Slide 6: 1H 2022 Results
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Slide 7: 1H 2022 Results: all-time high half-year sales & strong margin
1H 2022 Results: all-time high half-year sales & strong margin NET SALES UP 28% AT EURO 25.5 MLN, ONCE AGAIN DRIVEN BY CORE BUSINESS GROWTH AT +33% THE CORE BUSINESS SALES REACHED EURO 20.7 MLN IN THE FIRST HALF OF 2022, POSTING A 32.8% Y-O-Y INCREASE AND A HEALTHY +26.8% ON THE SECOND HALF OF 202
Slide 8: Revenues up 28% to € 25.5 mln, EBITDA margin at a robust 15.2%
Revenues up 28% to € 25.5 mln, EBITDA margin at a robust 15.2% • Revenues topped Euro 25.5 million in 1H-22, Sales Revenue and EBITDA (€m) recording a healthy 28% increase and marking the all-time half-year record level for Marzocchi Pompe 30 +28% 25.5 • Growth was once again mainly driven by the 25
Slide 9: Core business topped 78% of revenues posting a nice 33% growth
Core business topped 78% of revenues posting a nice 33% growth Revenue Breakdown • Revenues by Core market segments (Sales Network, Industrial and Mobile) accounted for more than three quarters of Total Revenues, reaching Euro 20.7 million (vs. Euro 15.6 million 24,6% 23,5% in 1H 2021), thanks to ge
Slide 10: EBIT & Net Result slid slightly due to rising raw materials & energy costs
EBIT & Net Result slid slightly due to rising raw materials & energy costs EBIT Adjusted and Net Result (€m) • EBIT stood at Euro 1.3 million, slightly down from Euro 1.4 million at 30 June 2021, 2 1.9 following the higher raw material and 1,8 1.7 energy costs impacting 2022 profitability 1,6 1,4 •
Slide 11: Net Financial Debt up following higher working capital
Net Financial Debt up following higher working capital Net Financial Position Evolution (€m) 4,0 • Net Financial Debt increased to Euro 10.2 2,0 million at 30 June 2022, from Euro 7.8 - million at 31 December 2021, due to the (2,0) physiological growth in working capital (4,0) linked to the strong s
Slide 12: Achievements
Achievements
Slide 13: 2022 Highlights & Outlook
2022 Highlights & Outlook THE FIRST HALF OF 2022 WAS CHARACTERIZED BY GREAT ECONOMIC UNCERTAINTY, MAINLY DUE TO RISING RAW MATERIAL & ENERGY COSTS, AMPLIFIED BY THE WAR IN UKRAINE AND THE ONGOING HEALTH EMERGENCY, PARTICULARLY IN CHINA WITHIN THIS VERY CHALLENGING SCENARIO, MARZOCCHI POMPE ACHIE
Slide 14: ESG Achievements confirm strong commitment towards Sustainability
ESG Achievements confirm strong commitment towards Sustainability • Sustainability Report – Marzocchi has started a process of analysis aimed at identifying methods and timing for this activity, in order to improve its footprint to enhance value creation • Marzocchi Certifications • ESG Score by Env
Slide 15: A brand new Security Operation Center
A brand new Security Operation Center • In March 2022 Marzocchi Pompe, in partnership with Yarix, finalized a C SOC + Cynet project Marzocchi’s Cognitive Security Information Center C SOC will operate the: H24x7x365 monitoring of company networks Physical and Biometric Security of last generation
Slide 16: Focus on ELIKA, Marzocchi Pompe top-performing pump
Focus on ELIKA, Marzocchi Pompe top-performing pump IN 2019 THE NEW ELIKA DEPARTMENT WAS COMPLETED THROUGH AN INVESTMENT OF MORE THAN 1 MILLION EUROS IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE FLAGSHIP PRODUCT CHARACTERIZED BY LOW NOISE & HIGH EFF
Slide 17: 2022 Live Exhibitions: Marzocchi Pompe is always in the forefront
2022 Live Exhibitions: Marzocchi Pompe is always in the forefront VTM Torino – Automotive Symposium Fucine Hall – Booth 48 IVT Expo Cologne – Industrial Vehicles Symposium Stand 1100 GFPS Naples – Global Fluid Power Symposium Paper Conference + Panel + Exhibitor Table Bauma Munich – World Mobile
Slide 18: 2022 Investor Relations Events
What’s Next: …and Constantly in touch with Market leaders 2022 Investor Relations Events 1 April FY 2021 Results Presentation 11 April Road Show in Paris 24 May Euronext Growth Conference 5 October H1 2022 Results Presentation 6 October Mid Cap Event in Paris 18 November Integrae Finance Gala
Slide 19: Market & Competitive Positioning
Market & Competitive Positioning
Slide 20: Fluid Power market and growth forecasts
Fluid Power market and growth forecasts The Fluid Power market is made up by the hydraulic segment and the pneumatic segment. In Asia, Europe and USA the Fluid Power home1 market went from Euro 25.7 billion in 2000, to around Euro 41.5 billion in 2020 of which Euro 29.9 billion (72%) stemming from t
Slide 21: Focus on hydraulic pumps' market
Focus on hydraulic pumps’ market Within the Hydraulic home1 market, the pumps’ segment is estimated by ISC to be around Euro 4.9 billion in 2020 (17%), of which Euro 3.2 billion (11%) coming from the reciprocating pumps’ segment (axial and radial piston pumps) and Euro 1.8 billion (6%) from the rota
Slide 22: Competitive positioning
Competitive positioning Characteristic Quality & Customer Gear Pumps Fluid Power Competitiveness Quality Range Customization vs Price vs Price Company Performance service Range Marzocchi Pompe Bosch Rexroth Bucher Casappa Concentric Galtech/Interpump Hema / DB HPI / JTech Parker Roquet Salami Turoll
Slide 23: Product Quality & Performance
Leadership in external gear pumps market + Product Quality & Performance Source: Marzocchi Pompe SpA management estimates - - Product Customization/ Customer service + 23
Slide 24: Appendix
Appendix
Slide 25: MP core business: manufacturing of external gear pumps and motors
MP core business: manufacturing of external gear pumps and motors • The pumps have the function of transferring the fluid from a tank to an actuator within an oil-hydraulic circuit. (for example a cylinder that drives the shovel of an excavator). This transfer from the suction circuit to the deliver
Slide 26: Overview of pump composition and application examples
Overview of pump composition and application examples The pumps are composed of the following main parts: body, flange, cover and bushings in aluminium, and gears (driving and driven wheel) in steel. For some types of products, the flange and the cover can be made out of cast iron. Further component
Slide 27: Product applications
Product applications Medical equipment Gardening machines Actuators for surgical tables, diagnostic equipment, latest- In this type of application it is essential that oil-hydraulic generation stretchers, dental chairs: in general, for small pumps and motors guarantee the complete absence of medical
Slide 28: Technological innovation and quality standards
Technological innovation and quality standards The Group's business model is focused on the design, production and marketing of high-performance external gear pumps and motors. The Company manufactures almost all the main components within its own production sites and uses the historical brand “Marz
Slide 29: Target markets
Target markets Core market revenues include Industrial and Mobile machines applications and represent 78,9% of total 2021 revenues, including sales to distributors/sales network, which alone contribute to 36.3% of MP’s total sales(*) FLUID POWER Core Automotive Industrial Mobile Machines Possible ap
Slide 30: Main client composition
Main client composition • The company benefits from a diversified client base for the Industrial and Mobile machine sectors, having their top 3 clients making up only 9.4% of sales and the top 10 representing 25.3%. The Automotive sector, on the other hand, has fewer clients making up for most of it
Slide 31: Global distribution network
Global distribution network Marzocchi Pompe relies on an international distribution network present in over 50 countries. Products are distributed through various channels, such as direct sales, distributors, sales1, American branch operations and Chinese branch operations Distribution network’s hig
Slide 32: Investment highlights
Investment highlights • The Hydraulic market is large, estimated to be around Euro 8.6 billion in 2020 in Europe (Source: CETOP) and Large target market Euro 1.9 billion in 2020 in Italy (Source: Assofluid) experiencing growth • Evidence of upward trend of Italian hydraulic market in the 2009-2018 p
Slide 33: Organizational structure and production sites
Organizational structure and production sites • Marzocchi Pompe can count on a team of professionals with consolidated experience. As of the 1st of January 2022 the workforce consists of 271 resources (of which 245 are permanent employees), with an heterogeneous background of professional skills tha
Slide 34: History
History Main operative milestones Start-up of large-scale production In November 2020, Construction of a of the Elika pump, an innovative production unit in On 16th July 2019 listing on set-up of the joint- product with low noise and high venture "Marzocchi Ostellato (FE) with the AIM market, openin
Slide 35: Consolidated Profit & Loss
Consolidated Profit & Loss Eur 000 30-Jun-22 30-Jun-21 Sales Revenue 25,502 100% 19,928 100% WIP changes (218) 2,053 Other revenues 435 829 PRODUCTION VALUE 25,719 22,810 Raw material consumption (6,548) (25.9%) (5,329) (24.2%) Service costs (7,077) (28.0%) (6,094) (27.7%) Costs for use of third-par
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet Eur 000 30-Jun-22 31-Dec-21 A) NET FIXED ASSETS 17,125 19,081 Intangible fixed assets 1,183 1,306 Tangible fixed assets 14,398 16,391 Financial fixed assets 1,544 1,384 B) NET WORKING CAPITAL 14,798 10,105 Inventories 13,078 12,121 Assets intended for sale 668 - Advances f
Slide 37: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement €/000 30-Jun-22 30-Jun-21 Operating profit [EBIT] 1,269 (963) Tax effect (330) 335 Change in funds 192 (85) Provisions and write-downs 2,279 2,224 Income cash-flow 3,410 1,511 Change in working capital Inventories (958) (2,635) Trade receivables (2,976) (1,197) Other
Slide 38: Focus on family and management Buy-out
Focus on family and management Buy-out During 2018 the company underwent a restructuring procedure that modified the shareholding structure. As of today, the company is owned by Paolo Marzocchi. The operation was completed through the creation of a financial debt with Banca di Bologna, which allowed
Slide 39: Disclaimer
Disclaimer Privacy The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced with
Slide 40: Contacts
CONTACTS Marzocchi Pompe S.p.A. ir@marzocchipompe.com Integrae SIM S.p.A. – Euronext Growth Advisor Francesco D’Antonio francesco.dantonio@integraesim.it Diego Carmignani diego.carmignani@integraesim.it CDR Communication - Investor & Media Relations Paola Buratti, Investor Relations paola.buratti@cd