Esautomotion Spa · MIL:ESAU
Esautomotion Spa — Investor Presentation (June 2023)
35 slides from Esautomotion Spa's investor presentation, Jun 5, 2023
Slide 1: June 5th 2023
June 5th2023
Slide 2: Company Overview
Section 1 Company Overview 2
Slide 3: At a Glance
At a Glance 3 FY22 Financials 1Q23 Results • Esautomotion (ESA) develops and sells Integrated Mechatronic CNC (not audited) Systems (Software and HW), Motors, Drivers and other tools for the automation of industrial production machines €34.1mn 48% €9.7mn Revenue Foreign Revenue Revenue +19.2% YoY +1
Slide 4: Key Milestones
Key Milestones 4 Since the management buyout, our strategy is based on the following drivers of growth: FOCUS ON SYNERGIC AND PROFITABLE MARKET NICHES In FY22 Business 34,1 Growth 5 ,0 3 HARDWARE OPTIMIZATION AND A COMPLETE 85,0% FULL-PACKAGE maintaining Strong 4% 75,0% + 15. 12-22 28,6 Profitabilit
Slide 5: Footprint and Distribution
Footprint and Distribution 5 ITALY 1 R&D Department BARCELONA Sales SHANGHAI 1 Subsidiary Production Spain&Portugal San Marino Brazil 1 Site 0,5% 3,4% 7,1% Other 5,7% Italy SAN PAOLO 51,8% Turkey 15,4% 1 Production Site Headquarter China Subsidiary 16,0% Value Added Reseller Note: Data as of Decembe
Slide 6: Management and BoD
Management and BoD 6 FRANCO FONTANA ANDREA SENZOLO GIUSEPPE ZOTTOLI Chairman and Founder Sales Manager and Board Member Independent Director and OPC Chairman Andrea Senzolo joined ESA in 2012. Previously, he Having graduated in Economics, Giuseppe Zottoli Franco Fontana boasts 18 years of experience
Slide 7: M&A
Section 2 M&A PA GL
Slide 8: Acquisition of Sangalli Servomotori Srl
Acquisition of Sangalli Servomotori Srl 8 BINDING PURCHASE AGREEMENT Deal Structure and Timing • On 22nd April 2023, ESA signed an investment agreement for the acquisition of • Purchase Price = €10,000,000 – NFP Sangalli's business – one of its strategic suppliers providing electric motors market •
Slide 9: Strategic rationale of the acquisition (1/2)
Strategic rationale of the acquisition (1/2) 9 By integrating a strategic supplier - in 2022 Sangalli provided 12% of the total purchases of goods - ESA will: 1. reinforce the presence of high energy performance and low environmental impact motors in the Company product portfolio 2. increase the con
Slide 10: Business Overview
Section 3 Business Overview 10
Slide 11: Products (1/2)
Products (1/2) 11 INTEGRATED CNC SYSTEM… …FOR CLIENTS’ AUTOMATED MACHINES to process Metal, Wood, Marble and Other Materials The Brain: CNC SOFTWARE CNC Software integrated with HW sends commands to determine and control machine movements The Nervous System: DRIVERS Managed by CN, control motor’s sp
Slide 12: Products (2/2)
Products (2/2) 12 We develop and sell CNC SW and HW dedicated to several applications All the CNC application software share the same user interface Dedicated Software Advantages Better performance Cost reduction CNC APPLICATION SOFTWARE Strong integration with the customer for each type of final ma
Slide 13: Customer Service – Teleassistance
Customer Service – Teleassistance 13 Spare parts reparation Sales/Installation Support 1 On-site and 24/24 online worldwide support and technical assistance throughout the whole cycle 2 Subsidiaries or Local Partners (sales/service) follow our customers in theirs daily needs 3 Our Headquarter gives
Slide 14: R&D
R&D 14 €1.19mn 29 €10.4mn R&D Investments R&D R&D Investments In FY22 Employees since 2012 R&D Investments (€mn) + 7.4% -22 ALL HW, SW, APPLICATIONS SOLD ARE UNDER ESA’S IP 2012 CAG R 1,32 1,22 1,19 1,12 1,03 1,03 0,86 • Growing investments in R&D have enabled ESA to create 0,71 0,70 innovative and
Slide 15: Areas of R&D Investments
Areas of R&D Investments 15 Hardware Software 4.0 / Networking New devices Intel versus ARM technology • 3D Full interconnection • Tool (cpu used for Smartphone) • CAD between machines • Sensors • Multicore CPU • Predictive maintenance • OPC-UA protocol • Laser measurement • Distribuited Architectur
Slide 16: Industry 4.0: Three New Launches
Industry 4.0: Three New Launches 16 Smart Bending EsaFour4.0 Smart Tracer Assistant A special smartwatch A suite of four 100% Industry An app that allows to capable of receiving the voice 4.0 software, allowing the remotely check in real time commands of an operator bidirectional exchange of product
Slide 17: Customers: growing old ones and adding new ones
Customers: growing old ones and adding new ones 17 Customer Loyalty Dynamics On average, around 75% of the 2011-2022 annual turnover was generated by historical and recurring customers 13.2% CAGR 2011-2022 of sales from recurring customers
Slide 18: Customer Acquisition and Interaction
Customer Acquisition and Interaction 18 Difficult to enter and difficult to exit UP/CROSS SELLING NEEDS ANALYSIS and FIRST CONTACT Acquire new costumers with high- SOLUTIONS PROPOSITION end solutions and then conquer We analyzes customers' shares selling low-end solutions References products and pro
Slide 19: Case Studies (1/3)
Case Studies (1/3) 19 Acquisition Case Study Up-selling Case Study Cross-selling Case Study Golden Arrow Water Jet Equipment CRRC Corporation Limited (CRRC), is the Yawei Wuxi, the largest Chinese Manufacturing Co. of Shanghai is a manufacturer of press brakes, already largest manufacturer of railwa
Slide 20: Case Studies (2/3)
Case Studies (2/3) 20 Acquisition Case Study Up-selling Case Study The US subsidiary of Mitsubishi, SCM is a leading company in the wood producer itself of numerical controls, has sector, with more than 1,200 machines decided to equip part of its press-bending produced per year. machines with ESA CN
Slide 21: Case Studies (3/3)
Case Studies (3/3) 21 Argesystems Automatic Tool Changer May 2019: the biggest Chinese Manufacturer This company developed together with us a The biggest Pressbrake/Laser new device to replace an heavy job: tools manufacturer in the world. We customize changing on press brake. This device uses our C
Slide 22: Market
Section 4 Market 22
Slide 23: CNC market: focus on niches to dominate them
CNC market: focus on niches to dominate them (ante Covid-19) 23 CNC market global evolution Automation 6 6.9% 14.0 2017-202 Market CAGR 12.0 Dimension: 200 $/B 10.0 ? -25 COVID-19 %Y oY ($/billion) 8.0 Mechatronics 6.0 Market Dimension: 54 $/B 4.0 (27% of Automotion) 2.0 0.0 CNC Market CNC Other Mac
Slide 24: Features of market applications
Features of market applications 24 METAL FORMING METAL CUTTING (LASER) ✓ Very strong development in the world, especially in China ✓ Great relevance of Turkey and China ✓ Most of machines equipped with plasma technology, oxy, ✓ Fundamental machine for developing countries punching and shears will be
Slide 25: Main Competitors
Main Competitors 25 Our software is recognized as a CNC standard for industrial machines in the sheet metal segment No turn key solutions No turn key solution No turn key solutions
Slide 26: Counter-cyclical strategy adopted in 2019-2020 has driven 2022 success
Counter-cyclical strategy adopted in 2019-2020 has driven 2022 success 26 STRATEGIC GOAL ACTION PLAN DESCRIPTION 1 Customers don’t invest in additional machines but mainly replace the Facing a lower Intensify high-end old ones. They look for: market demand products development • Cost reduction throu
Slide 27: Key Financials
Section 5 Key Financials 27
Slide 28: FY22 Financial Results: increase in revenue and good profitability
FY22 Financial Results: increase in revenue and good profitability 28 • FY22 revenue increased by +19.2% vs FY21 mainly REVENUE EBITDA driven by: .2% i) Good economic situation in 2022, which improved +19 the results of 2021 despite the presence of strong disturbances on the logistics and Semiconduc
Slide 29: Our Vision and Mission
Our Vision and Mission 29 VISION Italian leader provider of the “intelligent” part of automation machines, aiming to become a leader on complementary, synergetic and profitable market niches. MISSION Worldwide coverage in all the producing and purchasing markets. Provide customers with turn key solu
Slide 30: More Opportunities
More Opportunities 30 Lower Costs More Efficient R&D Assistance Enhancement Delayed project ESA LAB to Lockdown New employment increase China increased of Key R&D production remote support Manager More Remote M&A under Training evaluation
Slide 31: Appendix
Section 6 Appendix 31
Slide 32: FY22 Consolidated Income Statement
FY22 Consolidated Income Statement 32 €/000 FY20 FY21 FY22 YoY Revenues from sales and 17,490 28,327 33,828 +19.4% services Other Revenues 188 281 263 (6.4%) Total Revenues 17,678 28,608 34,091 19.2% Raw materials and change in stocks of semi- (9,308) (14,895) (18,517) +24.3% finished/finished goods
Slide 33: FY22 consolidated Balance Sheet
FY22 consolidated Balance Sheet 33 €/000 FY20 FY21 FY22 Inventory 3,103 4,192 8,323 Trade receivables 6,243 11,208 12,008 Trade payables (2,780) (5,526) (7,115) Other receivables (Payables) 469 (490) (101) Provisions (339) (395) (340) Net Working Capital 6,696 8,989 12,775 Goodwill 98 98 98 Intangib
Slide 34: Shareholder Structure and Stock Performance
Shareholder Structure and Stock Performance (as of 31st May 2023) 34 Shareholder Structure Stock Performance Since IPO 120% 100% 80% 60% 49,31% 40% Market 20% 24,89% 0% -4,91% Franco Fontana * -20% 34,56% -40% -60% -80% Treasury Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 N
Slide 35: ESAUTOMOTION S.p.A.
ESAUTOMOTION S.p.A. Viale della Meccanica, 23/1 41012 Carpi (MO) +39 059 851414 info@esautomotion.com