Comer Industries Spa · MIL:COM
Comer Industries Spa — Mid & Small Conference London 2024
33 slides from Comer Industries Spa's conference presentation, Apr 18, 2024
Slide 1: Comer Industries Mid & Small Conference - Equity Story
COMER INDUSTRIES MID & SMALL CONFERENCE - Equity Story London – 18 April 2024 Comer Industries Proprietary & Confidential 1
Slide 2: Comer Industries at a Glance
Overview COMER INDUSTRIES 2024 COMER INDUSTRIES AT GLANCE ~4.000 EMPLOYEES ACROSS 3 CONTINENTS 75% Europe – 12.5% America – 12.5% Asia HEADQUARTER 14 PLANTS FOR GLOBAL FOOTPRINT Reggiolo (RE) ITALY 6 Italy – 3 Germany – 2 USA – 1 Brazil – 1 China – 1 India OFF-HIGHWAY MECHANICAL COMPONENTS 1.2 BN€ R
Slide 3: Key Pillars
Overview COMER INDUSTRIES 2024 Key Pillars Sharpen strategic direction Lay foundation for continuous Unlock potential in market towards future growth excellence in performance capitalization - Equity Story Comer Industries Proprietary & Confidential 3 3
Slide 4: High-quality power transmission components for agricultural, industrial use and beyond
Overview COMER INDUSTRIES 2024 High-quality power transmission components for agricultural, industrial use and beyond Gearboxes Axles Planetary drives Tractor attachment system Driveshafts Electric wheel drives Electric Motors Clutches - Equity Story Comer Industries Proprietary & Confidential 4 4
Slide 5: Solid financial performance through operational excellence and continuous growth
Overview COMER INDUSTRIES 2024 Solid financial performance through operational excellence and continuous growth 01 Solid financial performance 02 Continuously ambitious growth 03 Operational excellence Best in class product 04 development 05 Result-driven culture - Equity Story Comer Industries Prop
Slide 6: Successful transition: from a family-owned company to managerial excellence
1 | Solid financial performance COMER INDUSTRIES 2024 Successful transition: from a family-owned company to managerial excellence REVENUE EBITDA MARGIN 2023 €1.2 bn 16.7% 2ND GENERATION TAKES OVER 2017 €0.3 bn 8.7% 6 6 - Equity Story Comer Industries Proprietary & Confidential 6
Slide 7: Profitable growth with continuous efficiency improvements and strategic development
1 | Solid financial performance COMER INDUSTRIES 2024 Profitable growth with continuous efficiency improvements and strategic development Amount in (€m) 16,7% 14,5% Cost effectiveness through 12,3% 12,4% efficient operations 11,3% 10,1% 1.238 1.224 8,7% 1.048 7,2% Growth at margins above industry av
Slide 8: Focus on cash flow generation leading to low leverage and high financial power
1 | Solid financial performance COMER INDUSTRIES 2024 Focus on cash flow generation leading to low leverage and high financial power €160m 19% Free Cash Flow Net debt1/Equity ratio Amount in (€m) WPG 160 Acquisition 55% 51% 41% 34% 22% 19% 60 35 47 20 13 17 (2%) 2017A2018A2019A2020A2021A2022A2023A 2
Slide 9: High ability to generate value from M&A
1 | Solid financial performance COMER INDUSTRIES 2024 High ability to generate value from M&A Before After Acquisitions Integration Revenues Revenues 1.224 ~ 800 Comer 11.1% Group Comer Industries 16.7% EBITDA-Margin1 EBITDA-Margin Walterscheid Sitem + Benevelli 2020 ~ €90m €205m 2023 EBITDA EBITDA
Slide 10: Firepower available for further inorganic growth
2 | Continuously ambitious growth COMER INDUSTRIES 2024 Firepower available for further inorganic growth 2021 2022 ~ 400 mn available for next acquisition1 FUTURE TARGETS Existing business fields to increase market share New technologies Electric, electronic and hydraulic for the move towards system
Slide 11: Securing supply cost-effectively with a global supplier base
2 | Continuously ambitious growth COMER INDUSTRIES 2024 Securing supply cost-effectively with a global supplier base ORIGIN OF SUPPLY BY VOLUME RoW Supply chain resilience Americas due to multi-supplier concept 7% 6% India 15% Cost efficiency 45% EMEA 2023 due to flexibility in sourcing 25% China 1
Slide 12: High flexibility due to local production footprint in markets
2 | Continuously ambitious growth COMER INDUSTRIES 2024 High flexibility due to local production footprint in markets 14 Germany (3) + R&D centers Production facilities 9 USA (2) Italy (6) + R&D centers + R&D centers China (1) R&D centers India (1) 16-20 Delivery time weeks Brazil (1) Value proposit
Slide 13: Close to the customer to execute complex projects fast
3 | Operational Excellence COMER INDUSTRIES 2024 Close to the customer to execute complex projects fast Long-lasting Understanding Data and system Physical relationships customers integration proximity 1 - 13 Equity Story Comer Industries Proprietary & Confidential 13 3
Slide 14: 1 year to start of production in a new far-east market
3 | Operational Excellence COMER INDUSTRIES 2024 Project example 1 year to start of production in a new far-east market Strong, dedicated teamwork 1 year Smooth ramp-up and successful from kick-off to operations Transparent processes start of production Close customer collaboration ~ 30 > 100.000 Ef
Slide 15: Consistent focus on efficiency in end-to-end value chain integration
3 | Operational Excellence COMER INDUSTRIES 2024 Consistent focus on efficiency in end-to-end value chain integration Total cost approach with flexible resource allocation leading to Data integration working capital efficiency from customer to supplier Steering cost of ownership Involvement of custo
Slide 16: Manufacturing approach strictly focused on high quality and continuous improvement
3 | Operational Excellence COMER INDUSTRIES 2024 Manufacturing approach strictly focused on high quality and continuous improvement TARGET SETTING IN Reduction of cost of poor quality Continuous improvement ~ 25% (2017-2023) Efficiency Sustainable production Silver in Ecovadis sustainability rating
Slide 17: High durability and reliability of products for heavy use purposes
4 | Best in class product development COMER INDUSTRIES 2024 High durability and reliability of products for heavy use purposes ~ 300 PPM1 ~ 10 years ~ 75 Complain rate Average Active patents (0.03%) product lifetime 1 - 1. Parts per million, customer requirements of 500-2,000 PPM 17 Equity Story Com
Slide 18: Customer advancement through co-development
4 | Best in class product development COMER INDUSTRIES 2024 Customer advancement through co-development ~ 15% ~ 70% < 2 years of products developed of products time to in co-development customized market High flexibility and short time to market Value creation beyond manufacturing Stable client rela
Slide 19: Enhancement of product quality and reliability through digital solutions
4 | Best in class product development COMER INDUSTRIES 2024 Enhancement of product quality and reliability through digital solutions Predictive maintenance Value added for customers Digital Innovative advantage against Solutions competition Condition Optimization of product lifetime monitoring 1 - 1
Slide 20: Comer Industries management enables strong bottom-line results with visionary outlook
5 | Result-driven culture COMER INDUSTRIES 2024 Comer Industries management enables strong bottom-line results with visionary outlook Driven by results when following growth opportunities Clear bottom-line focus in every decision made Excellent execution skills in pursuing full excellence with a “ca
Slide 21: Excellent and proven execution capabilities anchored in Comer Industries culture and values
5 | Result-driven culture COMER INDUSTRIES 2024 Excellent and proven execution capabilities anchored in the Comer Industries culture and values High focus on results Discipline in execution High speed & fast decision making Efficiency-driven “can do” mentality 2 - 21 Equity Story Comer Industries Pr
Slide 22: Flexibility to accommodate different cultures and create value from diversity
5 | Result-driven culture COMER INDUSTRIES 2024 Flexibility to accommodate different cultures and create value from diversity Comer Industries Customers 11 countries 72 countries 4 continents 4 continents Capability to accommodate cultural differences flexibly Value creation from diversity through a
Slide 23: Economic KPI's
6 | 2023 Financial Results COMER INDUSTRIES 2024 ECONOMIC KPI’s Another record year for EBITDA and margin, with steady revenues above €1.2bn REVENUES (€m) EBITDA (€m) (% on Revenue) (1.1)% 1.238 1.224 +220bps 16.7% 14.5% 205 (9.3)% +100bps 180 299 15.6% 16.6% 272 47 45 1 2 Q4 Q4 FY FY Q4 Q4 FY FY 20
Slide 24: Revenues performance
6 | 2023 Financial Results COMER INDUSTRIES 2024 Revenues performance Organic revenues declined Y/Y as market demand start to slow down in mid-2023 Amount in (€m) +0.4% @costant Fx rate 1.238 27 1.224 (22) (19) FY 2022 Organic M&A Fx FY 2022 % Y/Y (1.8)% 2.2% (1.5)% 2 - 24 Equity Story Comer Industr
Slide 25: Revenues At a glance
6 | 2023 Financial Results COMER INDUSTRIES 2024 Revenues At a glance Agriculture sector is at the heart of the business; e-comer is fully included in the Industrial sector EMEA incidence ~60% of total Revenues e-comer contribution is still marginal @€27mn FY 2023 APAC e-comer 2% 2% 2% 15% LATAM 4%
Slide 26: Revenues by sector
6 | 2023 Financial Results COMER INDUSTRIES 2024 Revenues by sector Agriculture sector was impacted by market rebalancing following the peak recorded mid-2023 Industrial sector benefitted by better economic outlook and financial condition towards the end of 2023 e-comer contribution can be entirely
Slide 27: Revenues by Geography
6 | 2023 Financial Results COMER INDUSTRIES 2024 Revenues by Geography EMEA performance was slightly positive in FY 2023 North American was sustained by domestic demand, thanks to still favourable macroeconomic conditions APAC was impacted by the negative performance in China, which recovery is stil
Slide 28: Business performance
6 | 2023 Financial Results COMER INDUSTRIES 2024 Business performance Revenues are rebalancing after 6 quarters of strong demand EBITDA margin confirmed at record high level despite of the contraction of the Top line Amount in (€m) Revenues 21,2% 17,0% 22,0% 12,3% 11,0% 2,7% (9,5%) (9,3%) Q/Q Growth
Slide 29: Financial KPI's
6 | 2023 Financial Results COMER INDUSTRIES 2024 FINANCIAL KPI’s NET FINANCIAL POSITION FREE CASH FLOW Amount in (€m) nfp 163 60 (95) (149) FY FY FY FY 2022 2023 2022 2023 Leverage 0.8x 0.5x ratio 2 - 29 Equity Story Comer Industries Proprietary & Confidential 29 9
Slide 30: Net financial position
6 | 2023 Financial Results COMER INDUSTRIES 2024 Net financial position Cash flow generation throughout the year, led to a steady deleveraging Amount in (€m) (95) Dividend e-comer €22mn (119) acquistion (149) €56mn (152) (183) FY 2022 Q1 2023 H1 2023 9M 2023 FY 2023 3 - 30 Equity Story Comer Industr
Slide 31: Cash flow
6 | 2023 Financial Results COMER INDUSTRIES 2024 Cash flow Free cash flow generation was €163m in FY 2023, equal to 79.5% Cash conversion rate Amount in (€m) 163 (56) (22) (15) (10) (6) (95) (149) FY 2022 FCF M&A Dividend Financial IFRS 16 Others FY 2023 costs 3 - 31 Equity Story Comer Industries Pr
Slide 32: Operating working capital
6 | 2023 Financial Results COMER INDUSTRIES 2024 Operating working capital OWC incidence as of percentage of Revenues fell to 19.1% vs 20.5% in FY 2022 Amount in (€m) (20) 254 1 234 (19) (2) FY 2022 Inventory Receivables Payables FY 2023 % on revenues 20.5% 18.5% 16.8% 16.2% 19.1% Value FY 2023 227
Slide 33: Contact: Alessandro Brizzi
COMER INDUSTRIES 2024 Contact: Alessandro Brizzi Investor Relator ir@comerindustries.com 3 - 33 Equity Story Comer Industries Proprietary & Confidential 33 3
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