Marzocchi Pompe S.p.a. · MIL:MARP
Marzocchi Pompe — FY2022 Earnings Presentation
46 slides from Marzocchi Pompe's earnings presentation, April 2023
Slide 1: Full-Year 2022 Results Presentation
FULL-YEAR 2022 RESULTS PRESENTATION April 2023
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 2022 Results & Outlook Achievements 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 Free Float 22,78% Main Shareholder, Executive Chairman Executive Chairman Carlo MARZOCCHI TABACCHI Vice Chairman Gabriele BONFIGLIOLI CEO Treasury Shares 0,39% Guido N
Slide 6: 2022 Results
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Slide 7: 2022 Results: all-time high sales & strong margin in challenging times
2022 Results: all-time high sales & strong margin in challenging times NET SALES UP 19.7% AT EURO 48.5 MLN, DRIVEN BY STRONG CORE BUSINESS* GROWTH AT +21.7% THE CORE BUSINESS* SALES REACHED EURO 38.9 MLN IN 2022, POSTING A HEALTHY 21.7% Y-O-Y INCREASE THANKS TO MARZOCCHI CAPABILITY TO RETAIN AND E
Slide 8: Revenues up 19.7% to € 48.5 mln, EBITDA margin at 15.4%
Revenues up 19.7% to € 48.5 mln, EBITDA margin at a robust 15.4% Sales Revenue and EBITDA (€m) • Revenues topped Euro 48.5 million in 2022, recording a strong 19.7% increase and marking the 60 full-year all-time high for Marzocchi Pompe +19.7% 48,5 50 • Growth was mainly driven by the Core Business
Slide 9: Core Business over 80% of revenues thanks to a strong 21.7% growth
Core Business over 80% of revenues thanks to a strong 21.7% growth Revenue Breakdown • Revenues by Core market segments (Sales Network, Industrial and Mobile) exceeded 80% of Total Revenues, reaching Euro 38.9 million (vs. Euro 32 million in 2021), thanks to generally 24,0% 23,7% recovering demand f
Slide 10: Very satisfactory EBIT & Net Profit growth
Very satisfactory EBIT & Net Profit growth (by 19% & 23% respectively) EBIT Adjusted and Net Result (€m) EBIT stood at Euro 2.7 million, +18.8% vs. 4 Euro 2.3 million in 2021, confirming 3,4 3,6 Marzocchi Pompe excellent operating 3,5 performance 3 • Adjusted EBIT, calculated net of 2,5 2,0 revaluat
Slide 11: Net Financial Debt down 23% vs. 1H 2022 thanks to high cash flow
Net Financial Debt down 23% vs. 1H 2022 thanks to high cash flow Net Financial Position Evolution (€m) 4,0 • Net Financial Debt decreased to Euro 7.8 2,0 million at the end of 2022, from Euro 10.1 - million in June 2022 and flat compared to Euro 7.8 million at 31 December 2021 (2,0) (4,0) (6,0) • Ma
Slide 12: 2022 Dividend proposal of € 15 cents / share
2022 Dividend proposal of € 15 cents / share ON 29TH MARCH 2023 MARZOCCHI POMPE BOARD OF DIRECTORS PROPOSED THE DISTRIBUTION OF AN ORDINARY DIVIDEND OF EURO 15 CENTS PER SHARE (VS. EURO 12 CENTS PER SHARE IN 2021), FOR A TOTAL DIVIDEND AMOUNT OF EURO 976.950. IF THE SHAREHOLDERS’ MEETING DUE ON
Slide 13: Achievements
Achievements
Slide 14: What's New: Cast Iron Pumps & Motors
What’s New: Cast Iron Pumps & Motors (1/2) IN OCTOBER 2022 MARZOCCHI POMPE LAUNCHED “FCIP” AND “FCIM”, THE NEW RANGE OF GEAR PUMPS AND MOTORS ENTIRELY MADE OF CAST IRON THESE NEW PRODUCTS TARGET APPLICATIONS WITH HIGHER PRESSURES THAN THOSE ACHIEVABLE WITH THE GHP PUMPS AND GHM MOTORS ALREADY IN
Slide 15: What's New: New Plant with Photovoltaic Panels
What’s New: New Plant with Photovoltaic Panels (2/2) IN OCTOBER 2022 MARZOCCHI POMPE HAS PURCHASED AN INDUSTRIAL PROPERTY OF APPROXIMATELY 4800 SQUARE METRES, OF WHICH APPROXIMATELY 1800 COVERED, NEXT TO THE ZOLA PREDOSA PLANT FOR A TOTAL AMOUNT OF € 1.15 MILLION THE NEW BUILDING ALLOWS MARZOCCH
Slide 16: 2022 Highlights & Outlook
2022 Highlights & Outlook THE YEAR 2022 WAS CHARACTERIZED BY GREAT ECONOMIC UNCERTAINTY, MAINLY DUE TO RISING RAW MATERIAL & ENERGY COSTS, AMPLIFIED BY THE WAR IN UKRAINE, THE INTEREST RATE RISE AND THE ONGOING HEALTH EMERGENCY IN CHINA IN SUCH A CHALLENGING SCENARIO, MARZOCCHI POMPE ACHIEVED IT
Slide 17: ESG Achievements: Strong commitment towards Sustainability (1/2)
ESG Achievements: Strong commitment towards Sustainability (1/2) • 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 creation • Marzocchi Certifications • ESG Score by Envi
Slide 18: 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 19: 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 20: Focus on ELIKA, Marzocchi Pompe top-performing pump
Focus on ELIKA, Marzocchi Pompe top-performing pump IN 2019 THE NEW ELIKA DEPARTMENT WAS COMPLETED THROUGH AN INVESTMENT OF MORE THAN 1 MILLION EUROS IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE FLAGSHIP PRODUCT CHARACTERIZED BY LOW NOISE & HIGH EFF
Slide 21: 2022 Live Exhibitions
2022 Live Exhibitions: Marzocchi Pompe is always in the forefront VTM Torino – Automotive Symposium Fucine Hall – Booth 48 IVT Expo Cologne – Industrial Vehicles Symposium Stand 1100 GFPS Naples – Global Fluid Power Symposium Paper Conference + Panel + Exhibitor Table Bauma Munich – World Mo
Slide 22: 2023 Live Exhibitions
2023 Live Exhibitions: Ready to exploit all commercial opportunities 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 H
Slide 23: Investor Relations in 2022
Investor Relations in 2022: Constantly in touch with Market leaders 1 April FY 2021 Results Presentation 11 April Road Show in Paris 24 May Euronext Growth Conference 5 October H1 2022 Results Presentation 6 October Mid Cap Event in Paris 18 November Integrae Finance Gala 23
Slide 24: What's Next: 2023 Investor Relations Forthcoming Events
What’s Next: 2023 Investor Relations Forthcoming Events 4 – 5 April Road Show in Paris 13 April FY 2022 Results Presentation Begininning of October H1 2023 Results Presentation 9 – 10 October Road Show in Paris Second Half of November Integrae Finance Gala 24
Slide 25: Market & Competitive Positioning
Market & Competitive Positioning
Slide 26: 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 billion in 2000, to around Euro 41.5 billion in 2020 of which Euro 29.9 billion (72%) stemming from t
Slide 27: 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 28: 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 29: Product Quality & Performance
Leadership in external gear pumps market + Product Quality & Performance Source: Marzocchi Pompe SpA management estimates - - Product Customization/ Customer service + 29
Slide 30: Appendix
Appendix
Slide 31: 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 32: 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 33: 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 34: 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 35: Target markets
Target markets Core market revenues include Industrial and Mobile machines applications and represent 80.2% of total 2022 revenues, including sales to distributors/sales network, which alone contribute to 37.5% of MP’s total sales(*) FLUID POWER Core Automotive Industrial Mobile Machines Possible ap
Slide 36: 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 37: 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 38: 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 39: 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 2023 the workforce consists of 260 resources (of which 245 are permanent employees), with an heterogeneous background of professional skills tha
Slide 40: 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 41: Consolidated Profit & Loss
Consolidated Profit & Loss Eur 000 31-Dec-22 31-Dec-21 Sales Revenue 48,513 40,538 100% 100% WIP changes 451 3,044 Other revenue 1,211 1,230 PRODUCTION VALU 50,176 44,812 Raw materials consumption (12,790) (26.1%) (10,716) (24.6%) Service costs (13,785) (28.2%) (12,005) (27.5%) Costs for use of thir
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet Eur 000 31-Dec-22 31-Dec-21 A) NET FIXED ASSETS 17,512 19,081 Intangible fixed assets 1,065 1,306 Tangible fixed assets 14,907 16,391 Financial fixed assets 1,540 1,384 B) NET WORKING CAPITAL 13,518 10,105 Inventories 14,008 12,121 Advances from customers (199) (11) Trade
Slide 43: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement 2022 2021 €/000 €/000 Operating profit [EBIT] 2,714 2,285 Tax effect (618) (358) Change in funds (143) (35) Provisions and write-downs 4,843 4,869 Income cash flow 6,796 6,761 Changes in working capital Inventories (1,887) (4,448) Trade receivables (486) (1,343) Othe
Slide 44: 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 45: 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 46: Contacts
CONTACTS Marzocchi Pompe S.p.A. ir@marzocchipompe.com Integrae SIM S.p.A. – Euronext 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@cd