Marzocchi Pompe S.p.a. · MIL:MARP
Marzocchi Pompe — FY2023 Earnings Presentation
43 slides from Marzocchi Pompe's earnings presentation, Apr 4, 2024
Slide 1: Full-Year 2023 Results Presentation
FULL-YEAR 2023 RESULTS PRESENTATION April 2024
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 Full-Year 2023 Results & Outlook Achievements Sustainability Market & Competitive Positioning Appendix Business Overview 3
Slide 4: Marzocchi Pompe at a glance: world leader in top-performing products
Marzocchi Pompe at a glance: world leader in top-performing 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 inje
Slide 5: Shareholders & Management: full alignment of interest
Shareholders & Management: full alignment of interest TOP MANAGEMENT BOARD OF DIRECTORS SHAREHOLDERS Paolo MARZOCCHI Paolo MARZOCCHI Main Shareholder, Free Float 24,19% Executive Chairman Executive Chairman Carlo MARZOCCHI TABACCHI Deputy Chairman Gabriele BONFIGLIOLI CEO Treasury Shares Guido NARDI
Slide 6: 2023 Results
==_|MARZOCCHIPOMPE rE ee Ge Gp Oye Vabeemeta %® 4 4 2023 Results JADA yy he he | » AD EON GD a eat
Slide 7: 2023 Results: new records in sales & profitability
2023 Results: new records in sales & profitability NET SALES HIT € 49.7 MLN (+2.5%), BEST EVER RESULT FOR MARZOCCHI POMPE THE CORE BUSINESS SALES REACHED THE RECORD LEVEL OF € 39.5 MLN IN 2023, +1.6% YOY THANKS TO MARZOCCHI POMPE WIDE PRODUCT RANGE AND CONSTANT INNOVATION. THE AUTOMOTIVE SALES WER
Slide 8: All-time high revenues at € 49.7 mln, EBITDA margin jumped to 16.4%
All-time high revenues at € 49.7 mln, EBITDA margin jumped to 16.4% Sales Revenue and EBITDA (€m) • Revenues reached € 49.7 million in 2023 (+2.5%), marking once again Marzocchi Pompe 48,5 Sales 49,7 all-time high. This achievement is particularly 50 +2,5% notable considering that it was reached in
Slide 9: Core Business at nearly 80% of revenues
Core Business at nearly 80% of revenues Revenue Breakdown • Revenues by Core market segments (Sales 23,3% Network, Industrial and Mobile) accounted for 23,7% 79.5% of Total Revenues, reaching € 39.5 Core Business million (+1.6% vs. 2022), driven by Marzocchi 37,5% 35,7% Pompe distinctive capability
Slide 10: Excellent Profitability growth: EBIT +64% and Net Profit +53%
Excellent Profitability growth: EBIT +64% and Net Profit +53% EBIT Adjusted and Net Profit (€m) • EBIT increased by 64% to € 4.5 million, from € 2.7 million in 2022, mainly thanks to 5,5 5,1 improvement in operating efficiency 4,5 • Adjusted EBIT, calculated net of 3,6 revaluation depreciation and a
Slide 11: Net Financial Position reflects Marzocchi financial solidity
Net Financial Position reflects Marzocchi financial solidity Net Financial Position Evolution (€m) • Net Financial Position remained increased 5,0 3,0 3,6 2,7 to € 8.3 million at end-2023 vs. € 7.8 3,0 million at end-2022 1,0 • More important Adjusted NFP (€ 5.3 (1,0) (1,0) million) was down 32% YoY
Slide 12: Achievements
Achievements
Slide 13: New ELIKA "Modular" upgrades Marzocchi top-performing pump
New ELIKA “Modular” upgrades Marzocchi top-performing pump IN 2019 THE NEW ELIKA DEPARTMENT WAS COMPLETED THROUGH AN INVESTMENT OF MORE THAN 1 MILLION €S IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE FLAGSHIP PRODUCT CHARACTERIZED BY LOW NOISE & HIGH
Slide 14: New Warehouse in Zola Predosa to improve and widen logistic flows
New Warehouse in Zola Predosa to improve and widen logistic flows ENLARGEMENT & RATIONALIZATION OF PRODUCTION CAPACITY AND LOGISTICS IN ZOLA PREDOSA PLANT IN OCTOBER 2022 MARZOCCHI POMPE PURCHASED AN INDUSTRIAL PROPERTY OF APPROX. 4,800 SQUARE METRES, OF WHICH APPROX. 1,800 COVERED, NEXT TO THE ZO
Slide 15: New Plant with Photovoltaic Panels to combine ESG with cost savings
New Plant with Photovoltaic Panels to combine ESG with cost savings INSTALLATION OF PHOTOVOLTAIC PANELS ON THE ZOLA PREDOSA PLANT TO ENHANCE MARZOCCHI’S “GREEN” VOCATION AT THE SAME TIME REDUCING CONSISTENLY ENERGY COSTS IN OCTOBER MARZOCCHI POMPE COMPLETED THE INSTALLATION OF PHOTOVOLTAIC SYSTEM
Slide 16: Marzocchi Pompe was present to all major global trade fairs in 2023
Marzocchi Pompe was present to all major global trade fairs in 2023 Bauma ConExpo India – 31.01.2023 Mobile Exhibition - Hall 10, Booth L102 IFPE ConExpo Las Vegas – 13.03.2023 World Mobile Exhibition – South Hall, Booth 81745 Hannover Messe – 17.04.2023 World Fluid Power Exhibition – Booth H5
Slide 17: 2023 Highlights & Outlook
2023 Highlights & Outlook 2023 WAS A VERY GOOD YEAR FOR MARZOCCHI POMPE THAT REPORTED EXCELLENT RESULTS BOTH IN TERMS OF SALES AND PROFIT MARGINS, DESPITE A LESS BRIGHT MARKET VS. THE PREVIOUS YEAR ON A GLOBAL BASIS THE COMPANY SHOWED THE STRENGTH OF ITS BUSINESS MODEL AND ITS CAPABILITY TO COUP
Slide 18: Sustainability
> = We) © .— © Cd ” S 7)
Slide 19: ESG Achievements confirm strong commitment towards Sustainability
ADOPTS MODEL 231 AND APPOINTS SUPERVISORY BODY 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, in order to improve its footprint to enhance value creatio
Slide 20: ESG Achievements: New Green Projects in 2023
ESG Achievements: Strong commitment towards Sustainability (2/2) New «Green» Projects in 2023 • Treedom Forest – In February Marzocchi launched the creation of the “Marzocchi Pompe Forest”, giving away the first 300 trees to its employees • This project will not only bring a contribution to carbon d
Slide 21: 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: o H24x7x365 monitoring of company networks o Physical and Biometric Security of last generat
Slide 22: Market & Competitive Positioning
Market & Competitive Positioning
Slide 23: 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 € 25.7 billion in 2000, to € 41.5 billion in 2020 and to 47.3 billion in 2021 of which € 34.2 billion (72%) ste
Slide 24: 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 5.7 billion (17%) in 2021 (Vs € 4.9 billion in 2020), of which € 3.7 billion (11%) coming from the reciprocating pumps’ segment (axial and radial piston pumps) and € 2 billion (6%)
Slide 25: 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 26: Product Quality & Performance
Leadership in external gear pumps market + Product Quality & Performance Source: Marzocchi Pompe SpA management estimates - - Product Customization/ Customer service + 26
Slide 27: Appendix: Business Overview
Appendix • Business Overview
Slide 28: 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 delive
Slide 29: 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 30: 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 31: 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 32: Target markets
Target markets Core market revenues include Industrial and Mobile machines applications and represent 79..5% of total 2023 revenues, including sales to distributors/sales network, which alone contribute to 35.7% of MP’s total sales(*) FLUID POWER Core Automotive Industrial Mobile Machines Possible a
Slide 33: 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 9.7% of sales and the top 10 representing 19.6%. The Automotive sector, on the other hand, has fewer clients making up for most of it
Slide 34: 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 35: Investment highlights
Investment highlights • The Hydraulic market is large, estimated to be around 10.3 billion in 2021 in Europe (Source: CETOP) and € Large target market 1.6 billion in 2021 in Italy (Source: Assofluid) experiencing growth • Evidence of upward trend of Italian hydraulic market in the 2009-2018 period,
Slide 36: Organizational structure and production sites
Organizational structure and production sites • Marzocchi Pompe can count on a team of professionals with consolidated experience. As of the 1st of January 2024 the workforce consists of 275 resources (of which 260 are permanent employees), with an heterogeneous background of professional skills tha
Slide 37: History
History Main operative milestones Start-up of large-scale production On 16th July 2019 In November 2020, Construction of a of the Elika pump, an innovative listing on the AIM set-up of the joint- production unit in product with low noise and high market, opening the venture "Marzocchi Ostellato (FE)
Slide 38: Consolidated Profit & Loss
Consolidated Profit & Loss Eur 000 31-Dec-23 31-Dec-22 Sales Revenue 49,746 48,513 100% 100% WIP changes (367) 451 Other revenue 1,142 1,211 PRODUCTION VALUE 50,521 50,176 Raw materials consumption (12,325) (25.0%) (12,790) (26.1%) Service costs (13,348) (27.0%) (13,785) (28.2%) Costs for use of thi
Slide 39: Consolidated Balance Sheet
Consolidated Balance Sheet Eur 000 31-Dec-23 31-Dec-22 A) NET FIXED ASSETS 16,837 17,512 Intangible fixed assets 852 1,065 Tangible fixed assets 15,156 14,907 Financial fixed assets 828 1,540 B) NET WORKING CAPITAL 15,725 13,518 Inventories 12,794 14,008 Advances from customers (65) (199) Trade rece
Slide 40: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement €/000 2023 2022 Operating profit [EBIT] 4,458 2,714 Tax effect (710) (618) Change in funds (678) (143) Provisions and write-downs 3,643 4,843 Income cash flow 6,713 6,796 Changes in working capital Inventories 1,214 (1,887) Trade receivables 866 (486) Other receivabl
Slide 41: Focus on family and management Buy-out
Focus on family and management Buy-out 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
Slide 42: 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 43: Contacts
CONTACTS Marzocchi Pompe S.p.A. ir@marzocchipompe.com Integrae SIM S.p.A. – €next Growth Advisor Francesco D’Antonio francesco.dantonio@integraesim.it Diego Carmignani diego.carmignani@integraesim.it CDR Communication - Investor & Media Relations Paola Buratti, Investor Relations paola.buratti@cdr-c