Marzocchi Pompe S.p.a. · MIL:MARP
Marzocchi Pompe — FY2021 Earnings Presentation
41 slides from Marzocchi Pompe's earnings presentation, Apr 1, 2022
Slide 1: 2021 Results Presentation
2021 Results Presentation 1 April 2022
Slide 2: Disclaimer
Disclaimer Privacy The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced with
Slide 3: Agenda
Agenda Company at a Glance 2021 Results & Outlook Achievements Market & Competitive Positioning Appendix Business Overview 3
Slide 4: Marzocchi Pompe at a Glance: leader in high-performance products
Marzocchi Pompe at a Glance: leader in high-performance products Marzocchi Pompe is a leading world player in the design, production and marketing of high performance external gear pumps and Company motors, which are used in sectors like: Industrial (textile machines, machine tools, plastic injectio
Slide 5: Shareholders & Top Management: full alignment of interest
Shareholders & Top Management: full alignment of interest TOP MANAGEMENT BOARD OF DIRECTORS SHAREHOLDERS Paolo MARZOCCHI Paolo MARZOCCHI Free Float 22,968% (*) Main Shareholder, Executive Chairman Executive Chairman Carlo MARZOCCHI TABACCHI Vice Chairman Gabriele BONFIGLIOLI Crosar Capital SpA CEO 6
Slide 6: 2021 Results
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Slide 7: 2021 Results confirmed strong sales & profitability growth (>pre-Covid)
2021 Results confirmed strong sales & profitability growth (>pre-Covid) NET SALES UP 18.8% AT EURO 40.5 MLN MAINLY DRIVEN BY CORE BUSINESS +33.5% THE CORE BUSINESS SALES JUMPED TO EURO 32.0 MLN (+33.5%) BENEFITING FROM THE RECOVERY TREND ALREADY VISIBLE IN PAST SEMESTERS, ON THE OTHER HAND THE AUTO
Slide 8: Revenues up 19% to € 40.5 mln, EBITDA margin at 16.4%
Revenues up 19% to € 40.5 mln, EBITDA margin at 16.4% Sales Revenue and EBITDA (€m) • Revenues jumped to Euro 40.5 mln in 2021, recording a healthy 19% growth thus fully recovering the pre-Covid levels 45 +19% 40,5 40 • Growth was driven by the Core Business which 34,1 35 topped the all-time high of
Slide 9: Core business topped 79% of revenues driving the recovery
Core business topped 79% of revenues driving the recovery Revenue Breakdown per Business Line (%) • Revenues by Core market segments (Sales 100% Network, Industrial and Mobile), accounting for nearly three quarters of Total Revenues, 80% reached the all-time high of Euro 32 mln vs. Euro 24 mln in 20
Slide 10: EBIT & Net Profit witness business model flexibility and solidity
EBIT & Net Profit witness business model flexibility and solidity EBIT Adjusted and Net Profit (€m) • EBIT turned positive at Euro 2.3 mln compared to a loss of Euro 1.1 mln in 2020, 4 even though impacted by depreciation and 3,5 3,4 amortisation 3 2,5 • Adjusted EBIT, calculated net of revaluation
Slide 11: Net Financial Debt further down thanks to healthy cash generation
Net Financial Debt further down thanks to healthy cash generation Net Financial Position Evolution (€m) • Net Financial Debt further improved to Euro 7.8 mln at end-2021, down 15% from 6 Euro 9.3 mln at end-2020, despite the physiological growth in working capital 4 linked to the strong sales growth
Slide 12: 2021 Dividend proposal of € 12 cents / share
2021 Dividend proposal of € 12 cents / share ON 30TH MARCH 2022 MARZOCCHI POMPE BOARD OF DIRECTORS PROPOSED THE DISTRIBUTION OF AN ORDINARY DIVIDEND OF EURO 12 CENTS PER SHARE (DOUBLED FROM EURO 6 CENTS PER SHARE IN 2020), FOR A TOTAL DIVIDEND AMOUNT OF EURO 784.650. IF THE SHAREHOLDERS’ MEETING
Slide 13: Achievements
Achievements
Slide 14: 2021 Highlights & Outlook
2021 Highlights & Outlook 2021 SAW THE FULL ECONOMIC RECOVERY FROM THE COVID-19 PANDEMIA WORLDWIDE: MARZOCCHI RECORDED VERY STRONG ORDERS IN ITS CORE BUSINESS, WHILE AUTOMOTIVE GROWTH WAS PARTIALLY HALTED BY THE CHIP SHORTAGE COMING FROM THE ASIAN SUPPLIERS, ALTHOUGH DEMAND IS EXPECTED TO TURN ARO
Slide 15: ESG Achievements confirm strong commitment towards Sustainability
ESG Achievements confirm strong commitment towards Sustainability • Sustainability Report – Marzocchi has started a process of analysis aimed at identifying methods and timing for this activity, with the aim of strengthening also this respect to enhance value creation • Marzocchi Certifications • ES
Slide 16: A brand new Security Operation Center
A brand new Security Operation Center • In March 2022 Marzocchi Pompe, in partnership with Yarix, finalized a C SOC + Cynet project Marzocchi’s Cognitive Security Information Center C SOC will operate the: H24x7x365 monitoring of company networks Physical and Biometric Security of last generation
Slide 17: Focus on ELIKA, Marzocchi Pompe top-performing pump
Focus on ELIKA, Marzocchi Pompe top-performing pump IN 2019 THE NEW ELIKA DEPARTMENT HAD BEEN COMPLETED WITH AN INVESTMENT OF MORE THAN 1 MILLION EURO IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE'S FLAGSHIP PRODUCT CHARACTERIZED BY LOW NOISE & HIGH
Slide 18: 2022 Live Exhibitions: Marzocchi Pompe is always in the forefront
2022 Live Exhibitions: Marzocchi Pompe is always in the forefront VTM Torino – Automotive Symposium Fucine Hall – Booth 48 iVT Expo Köln – Industrial Vehicles Symposium Stand 1100 GFPS Napoli – Global Fluid Power Symposium Paper Conference + Panel + Exhibitor Table bauma München – World Mobile Exhib
Slide 19: 2022 Investor Relations Forthcoming Events
What’s Next: …and Constantly in touch with the Market leaders 2022 Investor Relations Forthcoming Events 1st April FY 2021 Results Presentation (Videoconference) 11th April Road Show in Paris 24th May Euronext Growth Conference (Virtual) 29th November Mid & Small Conference in Milan 19
Slide 20: Market & Competitive Positioning
Market & Competitive Positioning
Slide 21: Fluid Power market and growth forecasts
Fluid Power market and growth forecasts The Fluid Power market is made up by the hydraulic segment and the pneumatic segment. In Asia, Europe and USA the Fluid Power home1 market went from Euro 25.7 billions in 2000, to around Euro 41.5 billions in 2020 of which Euro 29.9 billion (72%) stemming from
Slide 22: Focus on hydraulic pumps' market
Focus on hydraulic pumps’ market Within the Hydraulic home1 market, the pumps’ segment is estimated by ISC to be around Euro 4.9 billion in 2020 (17%), of which Euro 3.2 billion (11%) coming from the reciprocating pumps’ segment (axial and radial piston pumps) and Euro 1.8 billion (6%) from the rota
Slide 23: Competitive positioning
Competitive positioning Characteristic Quality & Customer Gear Pumps Fluid Power Competitiveness Quality Range Customization vs Price vs Price Company Performance service Range Marzocchi Pompe Bosch Rexroth Bucher Casappa Concentric Galtech/Interpump Hema / DB HPI / JTech Parker Roquet Salami Turoll
Slide 24: Product Quality & Performance
Leadership in external gear pumps market + Product Quality & Performance - Source: Marzocchi Pompe SpA management estimates - Product Customization/ Customer service + 24
Slide 25: Appendix
Appendix
Slide 26: MP core business: manufacturing of external gear pumps and motors
MP core business: manufacturing of external gear pumps and motors • The pumps have the function of transferring the fluid from a tank to an actuator within an oil-hydraulic circuit. (for example a cylinder that drives the shovel of an excavator). This transfer from the suction circuit to the deliver
Slide 27: Overview of pump composition and application examples
Overview of pump composition and application examples The pumps are composed of the following main parts: body, flange, cover and bushings in aluminium, and gears (driving and driven wheel) in steel. For some types of products, the flange and the cover can be made out of cast iron. Further component
Slide 28: Product applications
Product applications Medical equipment Gardening machines Actuators for surgical tables, diagnostic equipment, latest- In this type of application it is essential that oil-hydraulic generation stretchers, dental chairs: in general, for small pumps and motors guarantee the complete absence of medical
Slide 29: Technological innovation and quality standards
Technological innovation and quality standards The Group's business model is focused on the design, production and marketing of high performance external gear pumps and motors. The Company manufactures almost all the main components within its own production sites and uses the historical brand “Marz
Slide 30: Target markets
Target markets Core market’s revenues include Industrial and Mobile machines applications and represent 78,9% of total 2021 revenues, including sales to distributors /sales network, which alone contribute to 36,3% of Marzocchi Pompe total sales(*) FLUID POWER Core Automotive Industrial Mobile Machin
Slide 31: Main client composition
Main client composition • The Company benefits from a diversified client base for the Industrial and Mobile machine sectors, having their top 3 clients making up only 9.4% of sales and the top 10 representing 25.3%. The Automotive sector, on the other hand, has fewer clients making up for most of it
Slide 32: Global distribution network
Global distribution network Marzocchi Pompe relies on an international distribution network present in over 50 countries. Products are distributed through various channels, such as direct sales, distributors, sales1, American branch operations and Chinese branch operations Distribution network’s hig
Slide 33: Investment highlights
Investment highlights • The Hydraulic market is large, estimated to be around Euro 8.6 billion in 2020 in Europe (Source: CETOP) and Large target market Euro 1.9 billion in 2020 in Italy (Source: Assofluid) experiencing growth • Evidence of upward trend of Italian hydraulic market in the 2009-2018 p
Slide 34: Organizational structure and production sites
Organizational structure and production sites • Marzocchi Pompe can count on a team of professionals with consolidated experience. As of 1st January 2022 the workforce consists of 271 resources (of which 245 are permanent employees), with an heterogeneous background of professional skills that stren
Slide 35: History
History Main operative milestones Start-up of large-scale production In November 2020, Construction of a of the Elika pump, an innovative production unit in On 16th July 2019 listing on set-up of the joint- product with low noise and high venture "Marzocchi Ostellato (FE) with the AIM market, openin
Slide 36: Consolidated Profit & Loss
Consolidated Profit & Loss €/000 31-Dec-21 31-Dec-20 Sales Revenue 40,538 100,00% 34,143 100,00% WIP changes 3.044 -307 Revenue from production and sales 43,582 33,836 Other revenue 1.230 916 PRODUCTION VALUE 44,812 34,752 Raw materials consumption -10,716 -24.60% -7,931 -23.40% Service costs -12,00
Slide 37: Consolidated Balance Sheet
Consolidated Balance Sheet €/000 31-Dec-21 31-Dec-20 A) NET FIXED ASSETS 19,081 22,426 Intangible fixed assets 1,306 1,502 Tangible fixed assets 16,391 19,712 Financial fixed assets 1,384 1,212 B) NET WORKING CAPITAL 10,105 6,901 Inventories 12,121 7,673 Advances from customers -11 -17 Trade receiva
Slide 38: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement €/000 2021 2020 Operating profit [EBIT] 2,285 -1,100 Tax effect -358 1,863 Change in funds -35 -1,295 Provisions and write-downs 4,869 5,229 Income cash flow 6,761 4,697 Changes in working capital Inventories -4,448 446 Trade receivables -1,343 1,497 Other receivable
Slide 39: Focus on 2018 LBO
Focus on 2018 LBO During 2018 the company underwent a restructuring procedure that modified the shareholding structure. As of today, the company is owned by Paolo Marzocchi. The operation was completed through the creation of a financial debt with Banca di Bologna, which allowed the release of some
Slide 40: Disclaimer
Disclaimer Privacy The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced with
Slide 41: Contacts Marzocchi Pompe S.p.A.
CONTACTS Marzocchi Pompe S.p.A. ir@marzocchipompe.com Integrae SIM S.p.A. – Euronext Growth Advisor Francesco D’Antonio francesco.dantonio@integraesim.it Luca Comi luca.comi@integraesim.it CDR Communication - Investor & Media Relations Paola Buratti, Investor Relations paola.buratti@cdr-communicatio