Slide 1: Investor Presentation May 2023
INVESTOR PRESENTATION May 2023
Slide 2: Profile of the Group
PROFILE OF THE GROUP
Slide 3: The hub of Italian construction quality
• THE HUB OF ITALIAN CONSTRUCTION QUALITY, specializing in… • COMPLEX TURNKEY PROJECTS in the context of… • 3 BUSINESS UNITS WORKING IN SINERGY 40+ 40 927 329 €M 934 €M 360+ €M PLANTS AND OFFICES 2022 REVENUES ODER BACKLOG 2023E REVENUES YEARS OF EMPLOYEES AROUND THE WORLD AS AT 31 DEC. 2022 HISTORY
Slide 4: Naval Architecture and Building Façades
194 €m 2022 revenues NAVAL ARCHITECTURE AND BUILDING FAÇADES 59% of total SOMEC’S CORE BUSINESS RIGHT FROM THE START, ITS GROWTH ENGINE NAVAL SEGMENT BUILDING FAÇADES SEGMENT • Envelopes, glazing and architectural solutions for large cruise ships (Somec Spa) • Curtainwalls and glazed envelopes for c
Slide 5: Professional Kitchens
66 €m 2022 revenues PROFESSIONAL KITCHENS 20% of total DIVERSIFICATION WITH HIGH POTENTIAL Business • Design of integrated, bespoke systems for professional kitchens, which harmoniously combine high-end aesthetics and superior performance levels. • Realization of turnkey projects for catering and ho
Slide 6: Mestieri: Bespoke Interiors
70 €m 2022 revenues MESTIERI: BESPOKE INTERIORS 21% of total THE BUSINESS UNIT WITH HIGH GROWTH AND PROFITABILITY Profile • A unique manufacturing group, made up of companies representing the excellence of Italian know-how for the creation of complete, prestigious, custom-made interiors • Purchase o
Slide 7: The Group's History
THE GROUP'S HISTORY 45 YEARS OF EVOLUTION: GROWTH, RESILIENCE AND DIVERSIFICATION 1978 – 2012 2013 – 2017 2018 – 2020 Since 2021 IN THE BEGINNING: REBIRTH: FOCUS ON THE NEW FRONTIER: SOMEC TODAY: FROM BUILDING MARINE GLAZING AND BUILDING FACADES IN SYNERGISTIC FAÇADES IN ITALY PROFESSIONAL THE USA D
Slide 8: Production Units and Sales Offices Worldwide
PRODUCTION UNITS AND SALES OFFICES WORLDWIDE 23 BRANCHES, 17 PRODUCTION PLANTS, 12 COUNTRIES, 3 CONTINENTS NORTH AMERICA EUROPE CHINA Fabbrica LLC (civil glazing) Headquarters and production plant: Windsor (CT) Group Headquarters: 16 production plants in Veneto, Friuli and Lombardy: San Vendemiano (
Slide 9: Shareholding Structure and Governance
SHAREHOLDING STRUCTURE AND GOVERNANCE THE ENTREPRENEUR'S STRATEGIC VISION CROSSED WITH MANAGERS' TECHNICAL ABILITIES OWNERSHIP STRUCTURE TOP MANAGEMENT Oscar Marchetto Chairman and Chief Executive Officer Treasury Shares; Oscar Marchetto; 0,4% • Born in 1964, long-term entrepreneur and global ambass
Slide 10: Strengths and Strategy
STRENGTHS AND STRATEGY WHERE THE COMPETITIVE EDGE LIES AND THE STRATEGIC APPROACH TO REINFORCING IT GLOBAL LEADERSHIP IN MARINE GLAZING, with an estimated market share of 80% 1 protected by high entry barriers: accreditation with large clients, reputation, ability to innovate, large backlog DIVERSIF
Slide 11: Somec on the Stock Exchange
SOMEC ON THE STOCK EXCHANGE A LONG-TERM PROJECT TO SUPPORT COMPANY STRATEGY IPO (2018) SHARE PRICE EVOLUTION • No. of shares allocated: 1,780,000, or 25.8% of the share capital, of which: - 1,200,000 newly issued, 21.6 €m raised 40 Market cap as at 08 May 2023: 100000 35 90000 - 580,000 sold by Vene
Slide 12: Disclaimer and Notes
Disclaimer and Notes This document has been prepared by SOMEC S.p.A. (the ‘Company’) solely for the purposes of this presentation. This document may not be reproduced or distributed in whole or in part by any other person in any way without the Company’s consent. The Company takes no responsibility
Slide 13: Topics on the Agenda
TOPICS ON THE AGENDA 2022, the year of evolution: from the reorganization into 3 BUs to the 36 €m invested in acquisitions, to launch Mestieri and strengthen the grip on the Oscar Marchetto promising business of civil façades in the US and Europe Chairman and CEO Revenues at 329 €m (+27%) and backlo
Slide 14: The Reorganization into Three Divisions
THE REORGANIZATION INTO THREE DIVISIONS WITH THE LAUNCH OF «MESTIERI», THE GROUP ENTERED A NEW EVOLUTION PHASE From a company specializing in glazing for cruise ships to a diversified and synergistic industrial group, world ambassador of Italian construction excellence in the naval and civil fields
Slide 15: 2022: Challenges and (Seized) Opportunities
2022: CHALLENGES AND (SEIZED) OPPORTUNITIES THE RAPID DETERIORATION OF THE MACRO SCENARIO IMPACTS PROFITABILITY BUT OPENS NEW WAYS MARKET CONTEXT EFFECTS ON SOMEC UNDERTAKEN ACTIONS • March – Outbreak of war in Ukraine, Western sanctions on Russia None: no direct or indirect business relationships w
Slide 16: €M Invested on Strategic Acquisitions
36 €M INVESTED ON 4 STRATEGIC ACQUISITIONS THE ACQUISITION CAMPAIGN IS PROCEEDING QUICKLY TO STRENGTHEN CIVIL GLAZING AND INTERIORS • building façades Specialist in hi-tech, design-driven • abroad in engineered systems of • world’s centers of excellence as • in metal furniture and ornamental Treviso
Slide 17: Revenues
REVENUES NEW RECORD SET THANKS TO THE CONTRIBUTION OF ALL BUs TOTAL REVENUES €m - IAS/IFRS REVENUE BREAKDOWN BY BU €m - IAS/IFRS (*) 11.9% 2022 Total growth: Naval Architecture +27.2% 21.2% and Building Façades 328.8 2021 258.5 Organic growth: 23.2% Professional kitchens 251.4 223.4 2022 +16.9% 64.8
Slide 18: Order Backlog
ORDER BACKLOG NEW RECORD WHILE GOING TOWARDS AN EXPECTED SLOWDOWN IN THE GROWTH RATE BACKLOG AS AT 31 DECEMBER €m BACKLOG BREAKDOWN BY BU €m 11.7% Naval Architecture and Building Façades 17.0% 767 921 934 2022 Professional Kitchens 638 Mestieri - Personalized 71.3% interiors 2019 2020 2021 2022 BACK
Slide 19: Naval Architecture and Building Façades
NAVAL ARCHITECTURE AND BUILDING FAÇADES REVENUES UP BY 15.5% WHILE EBITDA DECREASED BY 36.4% REVENUES OF THE BU €m • Naval segment: (*) 2022 total growth: +15.5% - Full post-Covid recovery of new building business - Strong increase in refitting, especially at the end of 2022 193.6 Organic growth: •
Slide 20: Professional Kitchens
PROFESSIONAL KITCHENS REVENUES INCREASED BY 9% WHILE EBITDA WAS DOWN BY 17.5% REVENUES OF THE BU €m • Entirely organic growth • New naval orders obtained by Oxin 60.1 65.5 • 2H: revision of pricing in the civil sector, in response to the increase in raw material costs 2021 2022 EBITDA AND EBITDA MAR
Slide 21: Mestieri – Bespoke Interiors
MESTIERI – BESPOKE INTERIORS REVENUES MORE THAN DOUBLED (+126.3%), EBITDA INCREASED BY 8.3 €M REVENUES OF THE BU €m • 2022 tot. growth: Strong business deployment 1 year after the launch of the project +126.3% (*) Organic growth: • Significant order from Azamara Cruises, the most important ever in t
Slide 22: Operating Profitability
OPERATING PROFITABILITY EBITDA WAS FLAT, MARGIN RECOVERED IN 2H. EFFECT OF ACQUISITIONS ON ADJ. EBIT EBITDA AND EBITDA MARGIN OF THE GROUP €m • 1H impacted by the revision of the whole-life margins of ongoing 8.9% 8.0% contracts, in turn caused by the 7.1% 9.4 -9.2 increase in prices of raw material
Slide 23: Net Profitability and Cash Generation
NET PROFITABILITY AND CASH GENERATION POSITIVE NET RESULT BEFORE EXTRAORDINARY WRITE-DOWNS, ROBUST CASH FLOW ADJ. CONS. NET RESULT AND ADJ. CONS. NET MARGIN €m CASH GENERATION €m 73.0% Cash flow from 4.2% 60.3% operating 0.5% activities Free cash flow Extraordinary write- downs of trade receivables
Slide 24: Net Financial Position
NET FINANCIAL POSITION RELEVERAGE BROUGHT ABOUT BY INTENSE M&A CAMPAIGN AND DIVIDEND PAYOUT EVOLUTION OF NET FINANCIAL POSITION ex-IFRS16 €m 8.5 3.4 8.4 • - disbursement for the purchase of the stake Impact of acquisitions of 36 €m, including: 54.3 - fair value of earn-out and put and call clauses (
Slide 25: The Strategy in 2023
THE STRATEGY IN 2023 REVENUE GROWTH AND MARGIN RECOVERY THANKS TO WELL-IDENTIFIED MANAGERIAL ACTIONS THE CONTEXT SOMEC’S STRENGHTS Naval architecture and building façades • Permanent geopolitical • Focus on naval refitting, a high-margin business Recovery of productivity and profitability of order b
Slide 26: Guidance for FY 2023
GUIDANCE FOR FY 2023 FOR THE FIRST TIME EVER, SOMEC RELEASES GUIDANCE FOR THE CURRENT FISCAL YEAR FY 2022 RESULTS FY 2023 GUIDANCE • Revenues 328.8 €m 360+ €m Mestieri close to 100 €m only 2 years since the launch of the project • Ebitda 23.2 €m 30+ €m Implicit Ebitda margin above 8% Ebitda margin 7
Slide 27: Our Path Towards Sustainability
OUR PATH TOWARDS SUSTAINABILITY A SERIOUS APPROACH, BECOMING MORE AND MORE STRUCTURED 2020 2021 2022 2023… OBIETTIVI E GUIDANCE 2023 Appointment of the Control, GOVERNANCE Selection of an advisor and Creation of an internal Risk and Sustainability of an internal coordinator for management committee
Slide 28: Appendix
APPENDIX Structure of the Group Income Statement reclassified Balance Sheet reclassified Net Financial Position Cash Flow Statement reclassified
Slide 29: Structure of the Group
STRUCTURE OF THE GROUP 29 Note: PE = permanent establishment
Slide 30: Income Statement - Reclassified
INCOME STATEMENT - RECLASSIFIED In Euro thousand 2022 % 2021 % Δ Δ% Revenue from contracts with customers 325,616 99.0% 250,550 96.9% 75,066 30.0% Other revenues and income 3,228 1.0% 7,930 3.1% (4,702) -59.3% Total revenues 328,844 100.0% 258,480 100.0% 70,364 27.2% Materials, services and other co
Slide 31: Balance Sheet - Reclassified
BALANCE SHEET - RECLASSIFIED In Euro thousand 31/12/2022 31/12/2021 Intangible assets 59,517 47,681 of which Goodwill 36,699 27,417 Tangible assets 20,893 14,135 Right-of-use assets 27,387 25,544 Investments in associates 351 213 Non-current financial assets 233 323 Other non-current assets and liab
Slide 32: Net Financial Position
NET FINANCIAL POSITION in Euro thousand 31/12/2022 31/12/2021 Δ A. Cash and cash equivalents 71 142 (71) B. Bank deposits 54,273 47,503 6,770 C. Total liquidity (A+B) 54,344 47,645 6,699 D. Current financial assets 4,608 389 4,219 E. Current bank debt (27,756) (17,393) (10,363) F. Current portion of
Slide 33: Cash Flow Statement Reclassified
CASH FLOW STATEMENT RECLASSIFIED In Euro thousand 31/12/2022 31/12/2021 Cash flows from operating activities 13,967 16,819 Cash flows from investing activities (13,681) (5,032) Free Cash Flow 286 11,787 Cash flows from financing activities 5,204 (7,627) Net cash flow 5,490 4,160 Cash and cash equiva
Slide 34: Forthcoming Events and IR Contact
FORTHCOMING EVENTS IR CONTACT 12 May 2023 Midcap Annual Conference organized by TP ICAP | Midcap Partners Paris, Pavillon Gabriel 8 June 2023 Roadshow Andrea Moretti organized by Stifel Investor Relations Manager 26/27 June 2023 Via Palù, 30 - 31020 San Vendemiano Mid&Small virtual conference Trevis