Valtecne S.p.a. · MIL:VLT

Valtecne — FY2023 Earnings Presentation

24 slides from Valtecne's earnings presentation, Apr 9, 2024

1. Slide 1: FY 2023 Results Virtual Roadshow

   FY 2023 Results Virtual Roadshow 9th April 2024

2. Slide 2: Disclaimer

   Disclaimer This document ("Document") is strictly confidential and was prepared by Valtecne S.p.A., also on the basis of information and financial data provided by its shareholders as well as on the basis of publicly available information and documents, in order to provide the recipients of the same

3. Slide 3: Speakers

   Speakers Paolo Mainetti Adolfo Ottonello Chief Executive Officer General Manager +25 years in Valtecne, MBA at POLIMI former President of Confindustria Sondrio Graduate School for Management, (federation of Italian industries) Degree in Electronic Engineering Previous jobs: Previous jobs: FY 2023 Re

4. Slide 4: FY 2023 Results

   altecne FY 2023 RESULTS

5. Slide 5: FY 2023 - Results Highlights

   FY 2023 - RESULTS HIGHLIGHTS €M  Value of Production increased by 14.2% with a strong contribution of medical VALUE OF business line (+30.3%) PRODUCTION  Medical business line accounts for more than 60% of Value of Production, as a result of the €31.6 investment strategy carried out in the past th

6. Slide 6: Revenues and Value of Production

   Revenues and Value of Production REVENUES VALUE OF PRODUCTION (€M) (€M) Medical Industrial 2023 vs. Medical Industrial 2023 vs. 36,0 36,0 2022 2022 30.7 31.6 32,0 27.5% 32,0 14.2% 27.7 28,0 28,0 24.1 12,3 -0.7% 12,4 -4.2% 24,0 24,0 12,9 20,0 20,0 12,3 16,0 16,0 12,0 12,0 18,5 57.1% 19,2 30.3% 8,0 8,

7. Slide 7: EBITDA (1/2)

   EBITDA (1/2) Adjusted EBITDA* EBITDA (€M) 2023 vs. (€M) 2023 vs. 8,0 2022 7,0 2022 7,2 29.5% 7,0 6,0 5,8 27.5% 6,0 5,6 5,0 4,6 5,0 4,0 4,0 3,0 3,0 2,0 2,0 1,0 1,0 0,0 0,0 FY 2022 FY 2023 FY 2022 FY 2023 % on VoP 20.1% 22.8% % on VoP 16.6% 18.5% Adjusted EBITDA increased by almost 30%, EBITDA increas

8. Slide 8: EBITDA (2/2)

   EBITDA (2/2) EBITDA (€M) 10,0 3,9 1,1 8,0 1,5 5,8 6,0 4,6 4,0 2,0 0,0 EBITDA FY 2022 Value of Production Labour costs Other costs EBITDA FY 2023 Growth of business volumes and costs discipline has allowed to mark a €1.2M increase of EBITDA FY 2023 Results Virtual Roadshow 8

9. Slide 9: Working Capital

   Working Capital DSO DPO (days) (days) 2023 vs. 2023 vs. 2022 2022 100 140 130 90 124 -4.6% 85 -5.1% 120 80 100 60 80 60 40 40 20 20 0 0 FY 2022 FY 2023 FY 2022 FY 2023 DSO and DPO are almost stable compared to FY 2022, meaning that volumes growth has not negatively impacted on commercial working cap

10. Slide 10: Cash Flow

    Cash Flow (€M) 8,0 6,0 5,8 2,7 4,0 0,1 0,0 3,0 0,0 1,1 2,0 1,9 0,0 EBITDA CAPEX Change in NWC Funds Operating CF Net Interests Taxes Free Cash Flow €1.9M of free cash flow despite IPO one shot costs FY 2023 Results Virtual Roadshow 10

11. Slide 11: Net Financial Position (1/2)

    Net Financial Position (1/2) Net Financial Position (€M) 6,0 5,0 1,0 0,1 1,8 4,0 2,3 4.6 2,0 0,0 -2,0 -2,4 -4,0 NFP FY 2022 Long term debt Short term debt Cash and NFP FY 2023 w/o Net cash from NFP FY 2023 equivalents IPO IPO Net Financial Position has improved by €2.7M due to strong operating cash

12. Slide 12: Net Financial Position (2/2)

    Net Financial Position (2/2) Adj. NFP / Adj. EBITDA (*) Net Financial Position / EBITDA (*) 2023 vs. 2023 vs. 2,0 1,2 2022 1,10 2022 1,70 -52.7% -64.6% 1,6 0,8 1,2 0,80 0,8 0,39 0,4 0,4 0,0 0,0 FY 2022 FY 2023 FY 2022 FY 2023 (*) NFP without IPO net cash The ratio to EBITDA has dramatically improved

13. Slide 13: Outlook 2024

    OUTLOOK 2024 The medical business line continues to show a strong order book, in continuity with the recent past and fully consistent with the market growth trend. The medical business line is also expected to expand into the trauma surgery sector (USD 8 bn worth) . The industrial business line, has

14. Slide 14: Company Overview

    altecne COMPANY OVERVIEW

15. Slide 15: Valtecne at a glance

    Valtecne at a glance  Valtecne is a company operating in the sector of high precision mechanics. ACTIVITIES 40 215 +200 K  Valtecne is a contract manufacturer of high precision mechanical years of history employees Production hours components. It operates by the means of two business lines: o Medi

16. Slide 16: Business model of contract manufacturer

    Business model of contract manufacturer … TO THE PHYSICAL PART MANUFACTURED WITH FROM CUSTOMER DRAWING … PRECISION MECHANICS TECHNOLOGIES FY 2023 Results Virtual Roadshow 16

17. Slide 17: Key Investment Highlights

    Key Investment Highlights Historical double-digit growth, higher than the market Focus on medical devices industry First class customers FY 2023 Results Virtual Roadshow 17

18. Slide 18: Historical double-digit growth, higher than the market

    Historical double-digit growth, higher than the market  Valtecne has been able to record structural double digit growth performances, mainly due to the increasing importance of medical devices sector (‘18-23 CAGR: +24.5%). The company has marked a ‘18-’23 CAGR of +12.6%. Valtecne’s business has reg

19. Slide 19: Focus on medical devices industry

    Focus on medical devices industry  The deep mechanical know-how acquired in its 30-years history allowed the company to enter medical devices market in late 2012. Market Offer  Valtecne operates in orthopaedics, the branch of med-tech  Valtecne is focused on the manufacturing of complex surgical

20. Slide 20: First class customers

    First class customers  Valtecne’s customers are mainly medium and large companies, leader in their markets and with a recognised local and global reputation. Medical Devices The company addresses manufacturers of orthopaedic prostheses (domestic or international, strongly globalized companies). Ind

21. Slide 21: Shareholders, Corporate Governance, ESG

    Shareholders, Corporate Governance, ESG Shareholders Sustainability Paolo Mainetti E 100.0% • Since 2011 Valtecne has installed photovoltaic Vittorio KPM S.r.l. 6.4% panels in order to balance energy consumption of Mainetti production machines. (1) 61.6% 13.8% bare full • Valtecne plant is equipped

22. Slide 22: Appendix

    Appendix

23. Slide 23: Financials

    Financials Profits & Losses FY 2022 FY 2023 Balance Sheet FY2022 FY 2023 (€K) pro-forma (€K) Operating Revenues 24,099 30,725 339 1,033 Intangible Assets Inventory var. – Finished products 2,028 (1,346) Tangible Assets 6,647 7,128 Inventory var. – WIP 767 1,280 Financial Assets 406 406 Other Revenue

24. Slide 24: Valtecne S.p.A. contact details

    Valtecne S.p.A. Via Al Campo Sportivo, 277 23010 Berbenno di Valtellina (SO) info@valtecne.com 24

Valtecne — FY2023 Earnings Presentation on 6ix