Slide 1: 2022 full year results
2022 full year results INVESTORS LIVE STREAMING PRESENTATION
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: FY2022 financial highlights
FY2022 financial highlights Organic double-digit growth confirmed: FY2022 revenues scoring +41% YoY, +36% net of forex effect Gross Profit Margin improving 470bps in FY vs Q1, from 40.9% to 45.6% (w/o InoNet) PPVs impact: ca. 2.3M€ on revenues, ca. 160bps dilution of GPM EBITDA swing from -1.6M€ in
Slide 4: 2022 recap
2022 recap New brand identity: “Unleashing the power of the edge” Re-engaging in autonomous driving business InoNet acquisition to accelerate in Edge AIoT Fourth year consecutively in the Gartner Magic Quadrant for Industrial IoT platforms Fighting component shortage Hiring during a tech talents war
Slide 5: Business: Unleashing the power of the edge
@eurotech UNLEASHING THE POWER OF THE EDGE
Slide 6: Our journey into 2025: from niche player to relevant player in Edge AIoT
our journey into 2025: from niche player in custom embedded boards & systems to a relevant player in Edge AIoT from to 2022 progress many market segments 4 focused verticals customized more standard HW boutique scaling an integrated HW/SW offering predominantly embedded predominantly edge AIoT non-r
Slide 7: Main initiatives in 2023 to accelerate our journey
main 2 aimed at shorter Time-To-Market initiatives business in 2023 to accelerate our 1 aimed at longer journey… Time-To-Market business #7
Slide 8: 1. Tiger team on assisted & autonomous driving
1. tiger team on assisted & autonomous driving Shorter TTM vs IoT projects Targeting ADAS testing & validation for Level 3 up to Level 5 autonomy Almost 100 potential customers identified 20 potential customers qualified Focused marketing activities #8
Slide 9: Best-in-show at embedded world 2023 AI & ML category
best-in-show at embedded world 2023 AI & ML category PIC PAUL FROM EW23 Supermicro Lattice ADLink Lex Computech COMPETING AI EdgeLab Aetina NOMINEES ASUSTek Computer LIPS Innodisk Edge Impulse #9
Slide 10: 2. Consolidated edge & ready to use intelligent appliances
2. consolidated edge & ready to use intelligent Shorter TTM vs IoT projects appliances World first for an IEC certified Edge AI device @ Embedded World in Nuremberg One LSI engaged since channels play a critical role in selling appliances Pilot projects in place for CliCK & TraCK CliCK TraCK #10
Slide 11: 3. Tiger team on indirect sales channel for Edge AIoT
3. tiger team on indirect sales channel for Edge AIoT Hyperscalers are strong sponsors towards both Global 2000 OEMs and LSIs Engaged with the 3 major hyperscalers and technically certified with their platforms Accelerating go-to-market on co-selling platforms with one specific hyperscaler leading h
Slide 12: Incremental pipeline now all on Edge AIoT
incremental pipeline now all on Edge AIoT 84 new logos in opportunities worth 229M€ in 2024-25-26 Revenues accelerating in integrated HW+SW for mission-critical Edge AIoT applications 2025 2023 2021 2022 15% 23% ~35% ~ 70% Edge AIoT Embedded #12
Slide 13: Visibility on FY2023 @ 83.5 M€
visibility on FY2023 Invoiced + Orders + Weighted Customer Commitments @83.5M€ Still 4 to 6 months to collect additional orders coming from shorter terms initiatives we had 2 to 3 months in March 2022 due to @83.5 M€ long lead times on components Good visibility on H1, still low visibility on H2 cus
Slide 14: Financial update Q4 & Full Year 2022
financial update Q4 & Full Year 2022 #14
Slide 15: Margins improving throughout the year
margins improving throughout the year Cumulative GPM (% on sales) 45.6% 47.2% w/o 44.8% PPV effect 42.5% 40.9% #Purchase Price Variations (PPVs), totalling about 2.3M€ 3M 6M 9M FY (w/o InoNet) in FY2022 Cumulative EDITDA adjusted (M€) #PPVs diluting FY2022 GPM % on 7.2 sales by ~160 bps #operating l
Slide 16: FY2022 revenues growing double digit
FY2022 revenues growing double digit 5.2 17.6 #Growth driven by Embedded 5.9 business 2.3 94.3 #Edge AIoT trend YoY 63.1 accelerated to 110% by InoNet contribution, organic growth 58% FY’ FX Delta Delta InoNet FY 21 IoT Embedded Computer ’22 All values in € million #16
Slide 17: Revenue breakdown by end-customer location
all areas growing, EU pushed by InoNet consolidation breakdown by end-customer location #US sustained by solid trend other on legacy business other EU 5 EU #Japan boosted by strong 7 18 % 24 % % JP % business with semiconductor 30 FY FY % equipment manufacturers 32 2021 2022 % JP 43 % 41 % #Europe c
Slide 18: EBITDA affected by M&A costs and one-off opex
EBITDA affected by M&A costs and one-off opex 1.8 11.0 -0.9 -3.3 -1.7 -0.9 0.5 - 1.1 7.2 6.3 2.4 0.6 - 1.7 - 2.7 EBITDA Non EBITDA ADJ FX Volume Volume Mix & Net Net EBITDA ADJ Non EBITDA FY recurring FY InoNet shortage opex opex FY recurring FY 21 costs 21 InoNet 22 costs 22 all values in € million
Slide 19: Balance sheet still solid after acquisition
balance sheet still solid after acquisition NFP impacted by InoNet acquisition NWC temporary increase due to higher and NWC temporary increase inventory and spike in Q4 receivables 7.6 19.9 6.2 0.4 2.1 10.4 -0.2 -11.3 -3.8 -6.0 -14.4 FY FX M&A costs NFP Cashflow FY FY FX NWC NWC old FY ‘21 InoNet In
Slide 20: Key takeaways Full Year 2022
key takeaways Full Year 2022 #20
Slide 21: Key takeaways
key takeaways Solid organic double-digit growth InoNet integration on a good pace, on revenues YoY offering synergies already started Margins improving in H2 2022 Components shortage impact towards normal levels with eased, but still watching out on operating leverage kicking-in some high-end produc