El.en. S.p.a. · MIL:ELN
El.en — Star Conference May 2020
40 slides from El.en's conference presentation, May 2020
Slide 1: Company Presentation – Star Conference May 2020
COMPANY PRESENTATION Star Conference – May 2020
Slide 2: Disclaimer
DISCLAIMER Certain statements in this slide show, including those addressing the Company’s beliefs, plans, objectives, estimates or expectations of possible future results or events, are forward-looking statements. Forward-looking statements involve known or unknown risks, including general economic
Slide 3: Agenda
AGENDA 1. Overview 2. Markets and Growth drivers 3. Innovation: products & applications 4. Financial Highlights 5. Current Outlook 6. Multiples & Comparables
Slide 4: Overview
Overview
Slide 5: Overview
Overview A Primary Player Providing Medical, Industrial and Conservation Laser Solutions Worldwide Hi-Tech company Hi-Tech industrial group active in opto-electronics with proprietary technologies and know how developed over 35 years Listed on the Milan Stock Exchange Star segment since 2000 Global
Slide 6: El.En. Worldwide
El.En. Worldwide https://elengroup.com/uploads/sost_bilanci/NFS-2019-d.pdf 6
Slide 7: Growth history
Growth history Cagr 11/19: Revenues +14% 401 346 307 253 218 EBIT 180 151 157 137 Cagr 11/19: +29% 2011 2012 2013 2014 2015 2016 2017 2018 2019 38 28 30 30 22 15 7 10 in Euro million 5 2011 2012 2013 2014 2015 2016 2017 2018 2019 7
Slide 8: Markets and Growth drivers
Markets and Growth drivers
Slide 9: Long term market trends
Long term market trends Aesthetics: § Aging population § Growing global obesity rate § Increasing desire of individuals to improve their appearance § Lower procedure cost, attracting a broader consumer base Minimally invasive surgeries: § Painless procedures § Reduced side effects and risks § Hospit
Slide 10: Long term market trends
Long term market trends Laser cutting applications: § Laser power increase + Cost reduction: Enhanced flexibility, productivity and quality standards in manufacturing processes § New application verticals § Building and construction § Minimal environmental impact Laser marking: § Products identifica
Slide 11: Medical Aesthetics: Market Overview (pre-Covid)
Medical Aesthetics: Market Overview (pre-Covid) Source: Daniel Associates Daniel Associates: Medical aesthetics market 2018 to 2023 Key growth drivers: 10.23% CAGR § Aging population § Desire to achieve and maintain youthful appearance § Increase in healthcare spending § Requirements for fast and mi
Slide 12: Medical Aesthetics: Market Overview
Medical Aesthetics: Market Overview 2018 2024 Cagr Facial Aesthetics Products 1.831 3.638 10,7% Body Contouring Devices 1.708 3.172 10,3% Cosmetic Implants 1.321 2.415 10,0% Phisician-dispenced cosmoceuticals and skin 1.104 1.903 10,2% Skin Aesthetic Devices 938 1.762 10,2% Phisician-dispenced eyela
Slide 13: Industrial laser market
Industrial laser market Laser systems increasingly adopted in high quality manufacturing for uniqueness, flexibility, environment friendliness, productivity • Sheet metal cutting: technology breakthroughs leading to strong demand expansion • Laser marking for identification: traceability as a qualit
Slide 14: Growth drivers
Growth drivers Increasing Stronger laser power presence in in metal body cutting contouring and cellulite New market manufacturing applications for CO2 laser sources Strong manufacturing Regulatory Innovation infrastructure clearances for OEM in China for worldwide urology China partners Rich innova
Slide 15: Innovation: Products & applications
Innovation: Products & applications
Slide 16: Complete product portfolio for body contouring, cellulite treatments, skin firming
Complete product portfolio for body contouring, cellulite treatments, skin firming New ONDA (microwaves) Unique high end system for cellulite, localized adiposities, fat removal, submental treatments Physiq, Delinea, B-Star A family of unique combinations of superluminescent matrices with Tents and
Slide 17: Tattoo and Toning
Tattoo and Toning Discovery Pico Derm Designed for asian skins PicoStar The most powerful picosecond laser in the marketplace Chrome Station Three wavelengths multi platform 17
Slide 18: Tattoo and Toning
Tattoo and Toning 18
Slide 19: Acne
Acne Italian market: launch in September 2020 19
Slide 20: The Accure Advantage
The Accure Advantage Before Treatment Courtesy: Emil Janghetti, MD June 29, 2019 January 14, 2020
Slide 21: Surgery (urology)
Surgery (urology) A complete line of Holmium lasers from 25 W to 155 W 21
Slide 22: New FIBER DUST
Surgery (urology) New FIBER DUST One of two worldwide players in high power medical fiber lasers Our novel disruptive technology for the most effective stones micro fragmentation 22
Slide 23: New UHPTDL - Q4 2020 Physics Research
New UHPTDL - Q4 2020 Physics Research
Slide 24: Physiotherapy: MiS (MLS Family)
Physiotherapy MiS (MLS Family) For degenerative neuropathies 24
Slide 25: Industrial lasers systems
Industrial lasers systems STEEL CUTTING 10 kW Average power in 2020 sales bookings 30 kW systems to come in 2020 FACE MASKS, PLEXI, PROTECTIVE VISORS CUTTING Laser cutting of technical tissue, or plastics for protection and social distancing Up to 1,2 KW CO2 (RF) 25
Slide 26: Financial Highlights
Financial Highlights
Slide 27: Income Statement FY-2019
Income Statement FY-2019 Euro '000 31/12/18 % 31/12/19 % Var.% Medical 197.854 57,2% 242.184 60,4% 22,4% Industrial 148.167 42,8% 158.577 39,6% 7,0% Total Revenues 346.020 100,0% 400.761 100,0% 15,8% Gross margin 137.478 39,7% 156.021 38,9% 13,5% EBITDA 35.618 10,3% 46.312 11,6% 30,0% EBIT 29.987 8,
Slide 28: Balance Sheet FY-2019
Balance Sheet FY-2019 Euro '000 31/12/18 31/12/19 Var.% Total non current assets 86.879 110.966 27,7% Net Working Capital 102.248 110.672 8,2% Other receivables/payables ST (22.341) (31.127) 39,3% Net financial position 62.461 61.419 -1,7% Long term liabilities 10.011 11.297 12,8% Net Equity 219.236
Slide 29: Income Statement Q1-2020
Income Statement Q1-2020 Euro '000 31/03/19 % 31/03/20 % Var.% unaudited unaudited Medical 49.814 59,4% 53.518 73,4% 7,4% Industrial 34.051 40,6% 19.426 26,6% -42,9% Total Revenues 83.865 100,0% 72.945 100,0% -13,0% Gross margin 33.229 39,6% 31.512 43,2% -5,2% EBITDA 7.679 9,2% 7.077 9,7% -7,8% EBIT
Slide 30: Cash Flow Q1-2020
Cash Flow Q1-2020 80.000 61,4 mln 18,6 mln 70.000 60.000 20,1 mln 50.000 40.000 3,3 mln 27,5 mln 30.000 20.000 10.000 0 + - 30
Slide 31: Revenue breakdown by business Q1-20
Revenue breakdown by business Q1-20 +12% Medical 2019 2020 +12% in Euro million 28,5 25,4 -23% 11,1 11,1 10,4 11,6 2,7 2,1 -49% Aesthetic Surgical Physioth. Service 2019 2020 Industrial 25,3 -17% -40% -33% 12,9 4,2 3,4 1,2 0,8 3,2 2,2 Cutting Marking Laser sources Service 31
Slide 32: Revenue breakdown by area Q1-20
Revenue breakdown by area Q1-20 +19% in Euro million Medical 2019 2020 +7% -35% 34,2 28,8 13,4 14,4 7,6 4,9 Italy RoEU RoW -63% Industrial 2019 2020 -16% +39% 23,1 7,9 6,6 8,5 3,1 4,3 Italy RoEU RoW 32
Slide 33: Current Outlook
Current Outlook
Slide 34: Revenue
Revenue Q2 Vs Q1: • Medical slowdown • Industrial recovery
Slide 35: Cost reduction
Cost reduction Q2 Vs Q1: • Employees cost: “Cassa integrazione” • S&M activities: travel ban and suspended congresses and fairs
Slide 36: Multiples & Comparables
Multiples & Comparables
Slide 37: Multiples
Multiples Stockholder's Equity per share 11,4 Price / Book Value Adj. 1,7 EV /EBIT (90% EBIT) 20,4 EV / Sales (90% Sales) 1,3 El.En. Market Cap. 372,2 @ € 19,00 Net financial position 27,5 @ 31/03/20 Financial investments m/l term 15,0 @ 31/03/20 Enterprise Value 329,8 37
Slide 38: Comparables
Comparables Amounts in mln March 31st, 2020 Price Revenue Var.% EBIT EBIT % MK.Cap. EV EV/Sales EV/EBIT P/Book Rev. (*) (*) Value Medical/Aesthetic Cutera $12,90 $32 -11% $(12) -38% $225 $213 1,7 n.a. 6,7 InMode $26,55 $40 32% $7 16% $887 $685 4,2 25,8 4,6 Venus $3,03 $15 -41% $(44) -300% $98 $148 2
Slide 39: Comparables
Comparables 300 250 200 150 100 50 0 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 El.En. S.p.A. IPG Photonics Corporation Prima Industrie S.p.A. Cutera, Inc. Sisram Medical Ltd. Han's Laser Tech 39
Slide 40: Contacts
Contacts El.En. S.P.A. Enrico ROMAGNOLI Investor Relations Manager tel. +39 055-8826807 E-mail: finance@elen.it POLYTEMS HIR Financial Communication, IR and Press Office Bianca FERSINI MASTELLONI - b.fersini@polytemshir.it Silvia MARONGIU - s.marongiu@polytemshir.it Tel. +39 06-69923324