Racing Force Spa · MIL:RFG
Racing Force Spa — Investor Presentation (December 2021)
32 slides from Racing Force Spa's investor presentation, December 2021
Slide 1: The Beat of Racing Hearts
THE BEAT OF RACING HEARTS DECEMBER 2021
Slide 2: Today's Speakers
TODAY’S SPEAKERS 2 PIERO PAOLO DELPRATO ALEXANDER HARISTOS ROBERTO FERROGGIARO Group Chairman and CEO Group COO Group CFO ZeroNoise Co-Founder 14 YEARS OF INDUSTRY EXPERIENCE 10+ YEARS OF INDUSTRY EXPERIENCE 10+ YEARS OF FINANCIAL EXPERIENCE RACING FORCE LEADERSHIP TEAM RACING FORCE PEOPLE OTHER KEY
Slide 3: Introducing Racing Force Group
INTRODUCING RACING FORCE GROUP 3 SEE VIDEO
Slide 4: Racing Force at a Glance
RACING FORCE AT A GLANCE 4 RACING FORCE OPERATES IN THE DEVELOPMENT, PRODUCTION AND MARKETING OF SAFETY COMPONENTS AND PROTECTION EQUIPMENT FOR THE MOTORSPORT INDUSTRY RACING FORCE GROUP TODAY BRANDS Leadership in Motorsport Safety Equipment Widest range of products covering the full spectrum of mot
Slide 5: 50+ Years of Uncompromised Innovation and Reliability in Motorsport Safety Equipment
50+ YEARS OF UNCOMPROMISED INNOVATION AND RELIABILITY IN MOTORSPORT SAFETY EQUIPMENT 5 Percivale’s brothers founded OMP Racing • Driver’s Eye debut in F1 OMP establishes a subsidiary in Miami in Genoa. A FIAT 500 rollbar is their first OMP become the official supplier of FIA OMP acquires Bell Racing
Slide 6: Unique Product Offering Covering the Full Spectrum of Motorsport Safety Equipment
UNIQUE PRODUCT OFFERING COVERING THE FULL SPECTRUM OF MOTORSPORT SAFETY EQUIPMENT AND BEYOND 6 DRIVER EQUIPMENT CAR PARTS Fire Extinguisher Racewear Kart-wear Helmets FHR Intercom Seats Harnesses Rollbars Steering Wheels Car Accessories Systems HOMOLOGATED (70% OF PRODUCTS) NON-HOMOLOGATED (30% OF P
Slide 7: The Partner of Choice: From Top Drivers to Amateurs, Teams and Regulatory Bodies
THE PARTNER OF CHOICE: FROM TOP DRIVERS TO AMATEURS, TEAMS AND REGULATORY BODIES 7 FROM WORLD CHAMPIONS… SELECTED TOP DRIVERS SELECTED PARTNERSHIPS Lewis Hamilton Charles Leclerc Fernando Alonso George Russell …TO GENTLEMEN DRIVERS 55% OF F1 DRIVERS Kimi Raikkonen Sébastien Ogier Thierry Neuville Ol
Slide 8: Strong Track Record of Resiliency and Growth
STRONG TRACK RECORD OF RESILIENCY AND GROWTH 8 COMBINING VICTORIES AND SOLID FINANCIAL PERFORMANCES €m Acquisition of (52%) in FIA # Racing events and 2019 Pro-Forma 15.9% Revenues 36.6 33.7 24.0% 2019 Consolidated PF 14.5% Revenues 24.9 25.7 18.4 17.0 2014 2015 2016 2017 2018 2019 2020 1H 2020 1H 2
Slide 9: An Attractive Niche Market
AN ATTRACTIVE NICHE MARKET… 1 9 MOTORSPORT: “ANY COMPETITION OR RELATED SPORT ACTIVITY RESTRICTED TO VEHICLES THAT (I) HAVE AT LEAST FOUR NON-ALIGNED WHEELS AND (II) ARE CONSTANTLY AND ENTIRELY CONTROLLED BY A DRIVER ON BOARD THE VEHICLE” FIA 2019 KPIs FIA – Federation International de l’Automobile
Slide 10: Ruled by Strict Regulations and Homologations
…RULED BY STRICT REGULATIONS AND HOMOLOGATIONS… 1 10 SAFETY IS CRITICAL… KEY FOCUS AREA ▪ Attention to safety is becoming more and more of a critical ▪ Promoting affordable, safe, and clean mobility, encouraging a matter, as the introduction of new rules and equipment responsible concern for environ
Slide 11: Aimed at Constantly Improving Safety
… AIMED AT CONSTANTLY IMPROVING SAFETY… 1 11 A LONG PROCESS OF ANALYSIS AND IMPLEMENTATION OF NEW STANDARDS… PASSIVE SAFETY PRODUCTS SHOULD NOT PREVENT THE ACCIDENT BUT REDUCE THE CONSEQUENCES FOR THE PERSONS INVOLVED AS MUCH AS POSSIBLE KEY SAFETY RULES - ABP … WHICH LEADS TO A CONTINUOUS INCREASE
Slide 12: Across a Growing Number of Competitions
… ACROSS A GROWING NUMBER OF COMPETITIONS 1 12 AN ALL-FEMALE FREE-TO- AN ELECTRIC RALLYCROSS ENTER RACING CHAMPIONSHIP CHAMPIONSHIP 2014 2019 2020 2021 A SINGLE-SEATER MOTORSPORT A MULTI-SPORT MOTORSPORT A TOURING CARS SERIES FOR CHAMPIONSHIP FOR ELECTRIC EVENT OF NATIONS ELECTRIC CARS CARS ADMINIST
Slide 13: Leadership in a Fragmented Market
LEADERSHIP IN A FRAGMENTED MARKET DOMINATED BY 3 PLAYERS Player 2 1 13 SINGLE PRODUCT EXTENDED RANGE Headquarter PROFESSIONAL QUALITY RACING FORCE GROUP Market Sparco Worldwide Simpson (mainly USA) Worldwide Impact USA Stilo Worldwide Player 1 Main brands Player 2 Range Offer Racewear EQUIPMENT DRIV
Slide 14: Unique Brand Portfolio Combining Heritage and Innovation
UNIQUE BRAND PORTFOLIO COMBINING HERITAGE AND INNOVATION 2 14 “ICONIC” BRANDS “YOUNG” BRANDS 50% STAKE(1) Established in 1973 Established in 1954 Established in 2018 Established in 2012 Sources: Group information Note: (1) Outside consolidation perimeter
Slide 15: OMP – Saving Drivers' Life Since 1973
OMP – SAVING DRIVERS’ LIFE SINCE 1973 2 15 APPAREL 1973 MOTORSPORTS OTHER APPAREL Top of the range Pro-racing Amateurs Pro-karting Percivale’s brothers founded OMP Racing in Genoa 1991 OMP wins the first F1 title with Ayrton Senna 1996/06 Historical collaboration ONE LINE TECNICA LINE FIRST LINE KS
Slide 16: Bell – Serious Head Protection
BELL – SERIOUS HEAD PROTECTION 2 16 ADVANCED CARBON PRO SPORT 1954 Bell manufactures 1959 its first helmet the ‘500’ First certification to the Snell Memorial Foundation OPEN 1966 standard FACE World’s first HP 10 MAG-10 SPORT RALLY MAG-RALLY full-face helmet HP 10 RALLY MAG-10MAG-10 CARBON RALLY MA
Slide 17: Zeronoise – Silence and Vision
ZERONOISE – “SILENCE” AND “VISION” 2 17 AUDIO DEVICES HEADSETS RADIO HELMET KITS DRIVER’S EYE(1) Communication systems and amplifiers Professional headsets, radio kits, The pioneering camera used in the top for racing (circuit, rally, karting) earplugs optimised for a racing races of FormulaE and re
Slide 18: Racing Spirit – Racing DNA 365 Days a Year
RACING SPIRIT – “RACING DNA” 365 DAYS A YEAR 2 18 PARTNERSHIPS JACKETS T-SHIRTS AND POLO PANTS OTHER ▪ PIRELLI: supply of clothing to all Pirelli motorsport personnel worldwide ▪ FERRARI TRENTO: supplied by Ferrari with champagne for the podium celebration with F1 Sources: Group information
Slide 19: Superior Safety Technology and Innovation
SUPERIOR SAFETY TECHNOLOGY AND INNOVATION 3 19 3 CUTTING-EDGE R&D CENTERS HIGHEST NUMBER OF HOMOLOGATIONS OWNED BY A SINGLE MANUFACTURER RONCO SCRIVIA SAKHIR PISA EXCLUSIVE FIA SUPPLIER SINCE 2012 ▪ Since 2012, OMP and the FIA have been committed to work side by side on roads and tracks to increase
Slide 20: Tightly Controlled Value Chain Delivering Speed, Reliability and Customer Satisfaction
20 TIGHTLY AND CONTROLLED VALUE CHAIN DELIVERING SPEED, RELIABILITY AND CUSTOMER SATISFACTION 4 STRONG INTERNAL KNOW-HOW FULL CONTROL OF SALES, MARKETING AND DISTRIBUTION SPEED TO MARKET DESIGN TOTAL CONTROL PLANNING HOMOLOGATION MARKETING SALES DISTRIBUTION Product VERTICALLY INTEGRATED Design and
Slide 21: Clear Path for Future Growth
CLEAR PATH FOR FUTURE GROWTH 5 21 3 CLEAR MAIN PILLARS FOR FURTHER GROWTH 1 ORGANIC GROWTH IN CORE MARKETS.. 2 … AND NEW NICHES 3 EXTERNAL GROWTH CONSTANT RESEARCH FOR POTENTIAL COMPANIES TO ACQUIRE IN ORDER TO CONSOLIDATE LEADERSHIP POSITION TALENTS INCREASE CONTINUOUS DIVERSIFYING INTO HIGH MARKET
Slide 22: Consolidating Leadership in Lower Penetrated Geographies - Americas
1 CONSOLIDATING LEADERSHIP IN LOWER PENETRATED GEOGRAPHIES - AMERICAS 5 22 MAXIMISING COMMERCIAL & DISTRIBUTION EFFORT ACROSS BRANDS US MOTORSPORT SAFETY DEVICES US branch founded in 2003 US branch founded in 2010 Headquarter in Miami, FL Headquarter in Champaign, IL US MAIN REGULATED RACES Nov. 202
Slide 23: Consolidating Leadership in Lower Penetrated Product Segments
1 CONSOLIDATING LEADERSHIP IN LOWER PENETRATED PRODUCT SEGMENTS 5 23 OPEN FACE HELMETS A ONE-STOP-SHOP OFFERING 1 CIRCUIT COMPETITION VS 3 RALLY COMPETITIONS DEALERS AND DISTRIBUTORS MARKET SIZE 1 DRIVER VS 2 DRIVER PROFESSIONAL TEAMS MARKET POSITION IN 2020 RACING FORCE MARKET Rally Helmets Market
Slide 24: Growth Beyond Core Markets (Short Term) – The Driver's Eye
2 GROWTH BEYOND CORE MARKETS (SHORT TERM) – THE DRIVER’S EYE 5 24 EXTREMELY LIMITED SIZE CUTTING-EDGE TECHNOLOGY FEEDING LIVE TV FROM BEHIND THE VISOR SCREENS FIRST-MOVER ADVANTAGE SUCCESSFULLY TESTED IN F1 • 2 YEARS IN FORMULA E AND DEBUT IN F1 • PATENT PROTECTED HOMOLOGATION INSIDE TOP DRIVERS’ HE
Slide 25: Growth Beyond Core Markets (Medium Term)
2 GROWTH BEYOND CORE MARKETS (MEDIUM TERM) 5 25 A WELL-DEFINED ACTION PLAN ALREADY IN MOTION 12 months 4 months 3 months 3 months 6 months SPECIAL FORCE HEAD PROTECTION (Completed) To be completed To be completed To be completed To be completed Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Marcel Lejeune
Slide 26: Perfectly Placed for Further External Growth
3 PERFECTLY PLACED FOR FURTHER EXTERNAL GROWTH 5 26 TECHNOLOGY • STRENGTHEN TECHNOLOGICAL CAPABILITIES NOT YET AVAILABLE IN RACING FORCE CURRENT OFFERING • BROADEN GEOGRAPHICAL DIVERSIFICATION EXPANDING IN NEW MARKETS DIVERSITY • EXPANDING PRODUCTS OFFERING • DIVERSIFY AND EXPAND THE CUSTOMER BASE K
Slide 27: Resiliency and Growth
RESILIENCY AND GROWTH… 6 27 REVENUES (€M) 1H 2021 REVENUES BREAKDOWN AND GROWTH GEOGRAPHIES (52%) in FIA # Racing events 11% EMEA AMER APAC (7.8%) +46.8% 25% +39% + 56 % + 79 % 64% 2019 Pro- 36.6 Forma Revenues 33.7 SEGMENTS PF 3% DRIVER’S CAR 24.9 OTHER 25.7 29% EQUIPMENT PARTS +62% + 15 % + 185 %
Slide 28: Sound Profitability and Solid Cash Flow Generation
… COUPLED WITH SOUND PROFITABILITY AND SOLID CASH FLOW GENERATION 6 28 EBITDA (€ M) | EBITDA MARGIN (%) LEVERAGE (NET DEBT / EBITDA) 11.4% 15.9% 14.5% 24.0% 6.0 5.4 4.2 2.5 3.4x 3.2x 2.0x 2019PF 2020 1H 2020 1H 2021 EBIT (€ M) | EBIT MARGIN (%) 2019PF 2020 1H 2021 4.9% 8.4% 8.1% 19.6% 4.9 2.8 1.8 Ne
Slide 29: Racing Force: A Winning Story
RACING FORCE: A WINNING STORY 29 ATTRACTIVE NICHE MARKET Highly fragmented and attractive niche market with unique features in terms of growth 1 and resiliency coupled with significant barriers to entry, but tremendous visibility UNIQUE BRANDS HERITAGE 2 Iconic global brands enjoying a loyal and div
Slide 30: Racing Force Group – Key IPO Facts and Numbers
RACING FORCE GROUP – KEY IPO FACTS AND NUMBERS 30 THE OFFER ▪ Market: Euronext Growth Milan ▪ Primary Tranche: 20,250,000 € ▪ Secondary Tranche: 10,935,000 € (including Greenshoe; from SAYE and Nehoc) ▪ Floating: 26.5% (exc. Greenshoe) - 29.2% (incl. Greenshoe) ▪ Offer Price / Mkt Cap: 4.50 € / 106.
Slide 31: Thank You
THANK YOU WATe O24’ Ii en —,
Slide 32: Notice to Recipient – Strictly Confidential
NOTICE TO RECIPIENT – STRICTLY CONFIDENTIAL 32 The information contained in this documentation has been prepared by Racing Force S.p.A. (the “Company”) and its consolidated subsidiaries (together, the "Group") for the sole purpose of the presentation made to you concerning the Company. This presenta