Seco S.p.a. · MIL:IOT
Seco — Q1 2024 Earnings Presentation
21 slides from Seco's earnings presentation, May 14, 2024
Slide 1: SECO: Q1 2024 Results and Business update presentation
SECO: Q1 2024 Results and Business update presentation May 14, 2024
Slide 2: Disclaimer
Disclaimer This document has been prepared by SECO S.p.A. (“SECO” or the “Company”), for information purposes only, exclusively with the aim of assisting you to understand and assess the activities of SECO. The information contained in this presentation does not purport to be comprehensive and may n
Slide 3: Here today
Here today Massimo Mauri Lorenzo Mazzini Clarence Nahan Chief Executive Officer Chief Financial Officer Head of Corp. Dev. & IR 3
Slide 4: Key takeaways from 2024 YTD
Key takeaways from 2024 YTD Clea expansion • Q1 2024: Net sales at €47.2m, -14% vs. Q1 2023 partly mitigating • Clea business at €7.3m in Q1 2024 (15% of sales), +14% vs. Q1 2023 Edge slowdown • GPM incidence at 56.0% in Q1 2024, +845 bps vs. Q1 2023 Gross margin • Increased Clea contribution to Net
Slide 5: Q1 2024 financial highlights
Q1 2024 financial highlights Q1 23 Q1 24 Net sales • Edge computing business contraction due to different market conditions: customers destocking in Q1 2024 vs. high demand against shortage in Q1 2023 €54.6m €47.2m • Clea revenue at €7.3m in Q1 2024 vs. €6.4m in Q1 2023 (+14%) Gross margin • Margin
Slide 6: Net sales
Net sales 15% of €47.2m €7.3m Net sales Q1 2024 Clea revenue Q1 2024 Net sales Net sales breakdown (Q1 2024) PKE 4% Others 6% (-21)% (-5)% Defence and aerospace 2% EMEA 87% (+84%) Industrial 28% (-4)% Transport 2% (-35)% RoW <1% (-52)% (-97)% APAC 4% by End (-52)% by Area Market Vending/ USA 9% Dist
Slide 7: Adjusted EBITDA
Adjusted EBITDA €10.4m 22.0% Q1 2024 Adj. EBITDA of Net sales Adjusted EBITDA bridge (€m) 22,0% 1 (1,7) 0,0 22,0% (0,7) 2 0,3 (7,4) 7,9 12,0 10,4 Adj. EBITDA Q1 Δ Net Δ Consumption Δ Operating Δ Costs of services and Δ Payroll Δ Adjustments Adj. EBITDA Q1 2023 sales costs income other operating cost
Slide 8: Adjusted Net financial position
Adjusted Net financial position Adjusted Net debt last 6 months volution (€m) 1 2 3 7,7 5,4 59,7 57,3 52,0 9M 23 Q4 cash generation FY 23 Q1 24 cash absorption Q1 24 1 Q1 2024 2 Net debt Adjustments 3 Leverage • ∆ Net working capital mainly due to increase in • Financial flexibility to support SECO’
Slide 9: Business update
Business update S=C4
Slide 10: Unique end-to-end technological solutions
Unique end-to-end technological solutions Trusted partner across industries AI Services IoT Software suite Edge computing Touch In-house HMIs manufacturing 10
Slide 11: Continuously expanding our Ecosystem
Continuously expanding our Ecosystem Valuable collaborations to fuel creativity & boost growth NEW Already on board PARTNERSHIP To bring the software suite to Industrial & IoT applications selected for the IoT Accelerator Program • Clea as the framework of choice on Yocto and Zephyr Astarte live on
Slide 12: Smart Energy Grid
Smart Energy Grid As global energy demands rise, digital management solutions become crucial Why digitalize the energy grid? Reduced Energy Costs Lower consumption through optimized grid management Decreased Maintenance Automated diagnostics extend system lifespans, reducing service needs Scalabilit
Slide 13: Road to 2026
Road to 2026 Already working to double production capacity Hangzhou, China Arezzo, Italy Hamburg - Wuppertal, Germany Inaugurated on January 12, 2024 New 22.000 sqm plant in Arezzo Optimization and relocation • Increased touch display • System Integration and PCBA • Hamburg: additional production li
Slide 14: Q&A
Q&A S=C4
Slide 15: Annex
Annex S=C4
Slide 16: SECO in a snapshot
SECO in a snapshot A worldwide spread center of excellence, with top-tier capabilities €210M 2023 FY revenue Listed on Borsa Italiana’s Euronext STAR Milan >1M devices manufactured every year ~ 900 people ~ 300 R&D people of which ~180 in AI and software development ~ 7-10% of revenue invested in R&
Slide 17: Financials overview
Financials overview Income Statement Balance Sheet €mln Q1 2023 Q1 2024 €mln FY 2023 Q1 2024 Net Sales 54,6 47,2 Net Working Capital 91,4 97,3 Consumption Costs (28,6) (20,8) Total Fixed Assets 310,9 311,9 Gross Margin 26,0 26,4 Other non-current assets 3,9 4,0 % on Net Sales 47,5% 56,0% Provisions
Slide 18: Revenue and cost model
Revenue and cost model Gross Revenue Variable Costs Gross Margin Margin Ratio (%) Illustrative example of gross margin assuming only three A Edge Platform Revenue from Costs of Raw product typologies: Price (A) Quantity (A) Gross Margin (A) Mid (standard product) Hardware Sale (A) Material (A) A • E
Slide 19: Business model
Business model Recent design wins will translate into revenue after 5/18 months depending on products’ typology High revenue visibility Product development & production process overview Time to revenue Product Mass production Specifications Time zero Project planning* Standard Products Field tests 5
Slide 20: Adjusted Net Income
Adjusted Net Income Adjusted Net income bridge (€m) 1 2 3 (0,0) 0,0 0,4 (0,0) 0,1 (0,0) 2,4 2,0 2,2 Q1 2024 Adj. Net SECO Asia SECO Fannal SECO Mind USA Piri India Q1 2024 Adj. Net Incremental income Q1 2024 Group Net Income Microelectronics Income with 100% ownership Income with 100% (pre-minoritie
Slide 21: Thank you
Thank you wWwww.seco.com S=C4