Comer Industries Spa · MIL:COM
Comer Industries Spa — AIM Italia Conference Virtual Edition 2021
34 slides from Comer Industries Spa's conference presentation, May 25, 2021
Slide 1: AIM Italia Conference Virtual Edition
AIM Italia Conference Virtual Edition 25 May 2021
Slide 2: Disclaimer
DISCLAIMER 2 This document has been prepared by Comer Industries S.p.A (“Comer Industries”) for use during meetings with investors and financial analysts and is solely for information purposes. The information set out herein has not been verified by an independent audit company. Neither the Company
Slide 3: Agenda
AGENDA 01 Comer Industries at a glance 02 ESG highlights 03 Business model 04 Market and strategy 05 Key financials 06 Shareholders structure 07 Appendix
Slide 4: Comer Industries at a Glance
COMER INDUSTRIES AT A GLANCE
Slide 5: Who We Are
WHO WE ARE 5 Global supplier of engineered transmission system for major vehicle manufacturers in the global agriculture, industrial and energy sectors. Focus on end-markets with constant growth in global demand for specialty machinery. Solid and flexible business model underpinned by diversified pr
Slide 6: Our Purpose
en OUR PURPOSE TO CHANGE PEOPLE’S LIVES MAKING EASIERTHE GLOBAL ACCESS TO SUSTAINABLE FOOD, STREETS, HOUSES AND ENERGY DEVELOPING ENGINEERING SOLUTIONS WITH AN UNCONVENTIONAL APPROACH. c)
Slide 7: Track Record
TRACK RECORD 7 NET REVENUES (€m) AND ADJUSTED EBITDA % 11,1% 12,6% 2016-’20 Net revenues 10,2% 450,0 8,8% 404,6 CAGR: c.+7% 7,3% 379,0 +6,7% c. -2% 396,2 400,0 +10,8% +12,6% 342,1 Adjusted EBITDA % (*) 350,0 303,7 300,0 Net revenues 250,0 (*) Adjusted EBITDA excludes the impacts from the 200,0 appli
Slide 8: ESG Highlights
~s.ESG HIGHLIGHTS
Slide 9: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY 9 In 2019 Comer Industries has launched a new project: our BRIGHT impact An important responsibility towards the environment and the society. The courage to take on a strong commitment, starting from adherence to the Global Goals for the sustainable development. The a
Slide 10: Sustainability – Environmental KPIs
SUSTAINABILITY – ENVIRONMENTAL KPIs 10 ENERGY CONSUMPTIONS WASTE PURCHASED DIESEL DANGEOROUS GENERAL ELECTRICITY WASTE WASTE -4% -30% VS 2019 VS 2019 -17% -5% VS 2019 VS 2019 NATURAL GPL GAS EMMISSIONS -3% -14% -9% VS 2019 VS 2019 VS 2019 Source: Sustainability report 2020
Slide 11: Sustainability – Social KPIs
SUSTAINABILITY – SOCIAL KPIs 11 1.410 PEOPLE AT 31.12.2020 NUMBER OF WORK EMPLOYEES (*) RELATED INJURIES +6% -4% VS 2019 VS 2019 WOMEN TRAINING PRESENCE HOURS PRO CAPITE 10% = (*) Head count at 31.12 11% IN 2019 VS 2019 Source: Sustainability report 2020
Slide 12: Business Model
BUSINESS MODEL —___
Slide 13: Where We Are in the Value Chain
WHERE WE ARE IN THE VALUE CHAIN 13 Tier 1 Original Tier 2 raw supplier Equipment material Customers Manufactures suppliers (OEM) AGRI Farmers Oil & Gas Construction INDUSTRIAL players Mining OEM Construction Wind plants owners OEM Energy
Slide 14: Business Overview
BUSINESS OVERVIEW 14 BUSINESS AREA PRODUCTS LINES REGIONS TECHNOLOGY STRUCTURE 22% NAM Gearboxes 9 Legal entities AGRI 1 in NAM 3 in APAC 4 in EU Planetary drives Mechanical 1 in LATAM 50% (54% in FY19) 28% APAC 100% 5 trading companies 1 in NAM Powertrain systems 1 in APAC 2 in EU Hydraulic INDUSTR
Slide 15: Product Lines and Applications
PRODUCT LINES AND APPLICATIONS 15 PRODUCT LINES GEARBOXES PLANETARY DRIVES POWERTRAIN SYSTEMS WHEEL DRIVES DRIVESHAFTS APPLICATIONS TRACTORS MINING MACHINERY COMBINED COMBINED HARVESTERS & CONSTRUCTION EQUIPMENT CRANES SELF PROPELLED HARVESTERS & SELF PROPELLED MACHINES TELEHANDLERS CONSTRUCTION EQU
Slide 16: Research and Product Development
RESEARCH AND PRODUCT DEVELOPMENT 16 R&D ENGINEERING AND R&D MECHATRONICS RESEARCH CENTER Team of 66 people dedicated to continuous Established history of R&D development in innovation covered partnership with customers. through over 100 patents. Address customers’ needs timely Strict control of and
Slide 17: Customer Base
CUSTOMER BASE 17 OUR MAIN CUSTOMERS OUR CUSTOMERS AWARDS STRONG BRAND REPUTATION PROVIDING FOR KEY SUCCESS FACTOR
Slide 18: Global Operations Footprint
GLOBAL OPERATIONS FOOTPRINT 18 7 PRODUCTION AREAS
Slide 19: Market and Strategy
MARKET AND STRATEGY
Slide 20: Current Addressable Market
CURRENT ADDREASSABLE MARKET 20
Slide 21: Drivers & Megatrends
DRIVERS & MEGATRENDS “ vv 2 3 HEALTHCARE DEMOGRAPHY —-URBANISATION SUSTAINABILITY —_ DIGITIZATION = SEES Soe SSS Ee SS 5 GREEN HOUSE EMISSIONS REDUCTION GROWING POPULATION GROWING NUMBER CONGESTION CONNECTED WORLD w GAS REDUCTION AGING SOCIETIES OF MEGA-PROJECT INFRASTRUCTURES 4 = a RENEWABLE MKT SH
Slide 22: Main Competitors
MAIN COMPETITORS 22 BUSINESS AREA MAIN COMPETITORS AND INCUBANT COMPETITORS AGRI INDUSTRIAL
Slide 23: Strategic Pillars
STRATEGIC PILLARS 23 LEVERAGE ON STRONG BALANCE SHEET, PRODUCT QUALITY AND CUSTOMERS RELATIONSHIP TO PROGRESSIVELY BUILD MARKET SHARE IN BOTH AGRICULTURE AND INDUSTRIAL SEGMENTS.
Slide 24: Key Financials
Ss KEY FINANCIALS
Slide 25: Key Consolidated Results
KEY CONSOLIDATED RESULTS 25 CONFIRMED FOR THE THIRD FOLLOWING YEAR THE IMPROVING TREND OF MARGINS AND CASH POSITION Var.% YoY Euro in millions 2018 2019 2020 2019 2020 • Net revenues declined by -2,1% in Net revenues 379,0 404,6 396,2 6,7% (2,1%) FY20, -0,6% at constant currency. • Confirmed in FY20
Slide 26: TWC and Capex Evolution
TWC AND CAPEX EVOLUTION 26 TWC ITEMS (€m) 22,3% 21,0% 21,4% TWC as % of revenues 93,0 85,5 83,3 TWC SUBSTANTIALLY STABLE IN 77,4 77,3 85,7 2020, CONFIRMING THE ABILITY TO CONTROL BUSINESS DYNAMICS (86,1) (77,7) (84,2) 31Dec18A 31Dec19A 31Dec20A CAPEX (€m) Trade receivables Stock Trade payables 4,0%
Slide 27: Net (Debt) / Cash Evolution
NET (DEBT) / CASH EVOLUTION 27 REACHED THE UNLEVERAGE POSITION IN 2020 Adjusted net cash flow Adjusted net generation cash flow +€30m generation 26,7 +€34m 3,2 (2,9) (29,1) (36,7) (36,7) 31Dec18A 31Dec19A 31Dec20A Net cash / (debt) [adjusted] Net cash / (debt) Adjusted Net cash/(debt) excludes the i
Slide 28: Shareholders Structure
SHAREHOLDERS STRUCTURE
Slide 29: Shareholders' Structure
SHAREHOLDERS’ STRUCTURE 29 % of share % of voting Lock up Lock up Nr. of shares 28,3% capital rights shares duration █ Eagles OAK S.r.l. 14.640.089 71,73% 71,73% 10.408.733 36 months (A) █ Market (*) 5.769.191 28,27% 28,27% 659.911 36 months (B) TOTAL ORDINARY SHARES 20.409.280 100,00% 100,00% 54,23
Slide 30: 2021-2022 Share Buyback Plan
2021-2022 SHARE BUYBACK PLAN 30 APPROVAL • The 22nd April 2021 Comer Industries’ Shareholders’ meeting is requested to authorize the following buyback plan. PURCHASE THRESHOLD • 10 % of the share capital; • Amount of distributable results of prior years and available reserves indicated in the latest
Slide 31: Appendix
31 APPENDIX
Slide 32: 50 Years of History
50 YEARS OF HISTORY 32 STORCHI FAMILY STORCHI FAMILY FIRST GENERATION SECOND GENERATION
Slide 33: Group Structure
GROUP STRUCTURE 33 Comer Industries SpA Reggiolo (RE) (Italy) (Head Quarter) Comer Industries Comer Industries Comer Industries UK Comer (Shaoxing) Co Ltd 100% 100% Components Srl Ltd 100% 100% GmbH Shaoxing (China) Matera (MT) (Italy) Leicester (UK) Schermbeck (Germany) (Sales Office) 65,8% Comer I
Slide 34: Thank You
THANK YOU WWW.COMERINDUSTRIES.COM
Comer Industries — AIM Italia Conference Virtual Edition 2021 on 6ix