Slide 1: 2024 Full Year Results - Investors Live Streaming Presentation
2 0 2 4 f u l l y e a r re s u l t s INVESTORS LIVE STREAMING PRESEN TA TI ON
Slide 2: Disclaimer
disclaimer This presentation has been prepared by Eurotech S.p.A. (or “Eurotech”) and has to be read in conjunction with its oral presentation. The information contained in this presentation does nor purport to be comprehensive. Neither Eurotech nor any of its officers, employees, advisers or agents
Slide 3: FY 2024 financial highlights
FY 2024 financial highlights Revenues down YoY on double-hit: major US customer phase-out plus capex freeze in Industrial Automation worldwide -35.7% at constant exchange rates Gross Profit Margin @ 50.7% improving 330bps YoY confirming a good mix of products sold EBITDA margin impacted by weak top
Slide 4: Business update
@eurotech business update UNLEASHING THE POWER OF THE EDG
Slide 5: Despite 2024 headwinds, execution of strategy building blocks continued
despite 2024 headwinds, execution of strategy building blocks continued ReliaCOR 31-11 & 33-11 powered Edge AI by NVIDIA Jetson Orin ReliaCOR 40-13: first Cybersecure IPC Ignition-Ready Industrial PC products Servers for edge inference and Generative AI intensive LLM training & fine-tuning, powerd b
Slide 6: Opex optimization achieved
Opex optimization achieved 4.5M€ cost saving vs FY23 net of forex effects: Reduced external consultants on all activities where internal personnel is now available & trained Right-sized structure supporting legacy Embedded business Activated new cross-Country synergies Actual effort has been 6.4M€ c
Slide 7: M&A as a catalyst for transformation in US
M&A as a catalyst for transformation in US M&A is a pillar of our strategy since day 1 We successfully completed one acquisition in Germany We are pursuing a similar success in US We want to buy access to market, plus a fab for “made in USA” Size: 15-20M$ revenues Margins: profitable Vertical market
Slide 8: Renewed commitment from controlling shareholder Emera
renewed commitment from controlling shareholder Emera Emera is committed and supports our strategic direction Emera is providing the financial means to cross the short-term market weakness 2.5M€ injected in Sept 2024 as future capital increase 6.0M€ pledged in Jan 2025 o Available at company disposa
Slide 9: 2025 focus where cybersecurity is relevant
2025 focus where cybersecurity is relevant Cybersecurity in now a requirement rather than an option US: IoT Cybersecurity Improvement Act EU: NIS2, RED, Cyber Resilience Act, Machinery Directive Most impacted verticals: o Smart Grids ( Power, Oil/Gas, Water) o Smart Infrastructure o Smart Transporta
Slide 10: Road ahead: Q1 still weak, then improving
road ahead: Q1 still weak, then improving Q1 still affected by factors seen in Q4: German economy with foot on brakes; US customer who phased-out not replaced yet; last tail of destocking in Japan Q2 better than Q1 Still low visibility on H2, but good chances for a restart of German market Japanese
Slide 11: Financial update FY 2024
financial update FY 2024 #11 #11
Slide 12: A tough year for our top line
a tough year for our top line facing a number of headwinds simultaneously All values in € million 93.8 #Legacy embedded business -1.9 impacted by US customer phase- -5.7 out plus destocking in Japan 59.1 #Edge AIoT more resilient but contracting mainly due to -27.1 economic crisis in Germany FY 23 F
Slide 13: EU area consolidates first place
EU area consolidates first place breakdown by end-customer location other other #Europe consolidating first place 5.4 7.8 despite weakness in Germany % EU % JP JP 28.2 41.2 #US shrinking following traditional 12M 29.1 12M % % % embedded business reduction 2023 2024 49.5 % 25.2 13.5 #Japan facing des
Slide 14: EBITDA in negative territory
EBITDA in negative territory overall result driven by drop in revenues despite improvement in GM & opex 5,280 251 5,195 All values in € thousand -336 4,496 114 -3,708 -1,250 -4,958 1,998 -15,511 EBITDA Non Fx rate EBITDA ADJ Lower Better Opex Other EDITDA ADJ Non EBITDA 2023 Act recurring effect 202
Slide 15: Balance sheet under control
balance sheet under control All values in € million Extracting cash parked in inventory NFP stable thanks to NWC management Receivable reduction mostly linked to sales volumes 23.9 0.0 -4.6 4.3 3.9 14.7 1.6 -20.6 -20.4 -7.3 -0.6 -1.1 -5.2 FY FX Change Change Change Change FY FY FX Cashflow Cashflow
Slide 16: Key takeaways FY 2024
@eurotech key takeaways FY 2024 UNLEASHING THE POWER OF THE EDG
Slide 17: Key takeaways
key takeaways Revenues down 36% impacted by combination of US customer Short list on US M&A, focus on one phase-out plus global Industrial preferred target – no LOI yet Automation slow down Controlling shareholder Emera GPM improving 330bps YoY and renewed its commitment providing the Net Opex down