Slide 1: 2023 nine months results
2023 nine months results INVESTORS LIVE STREAMING PRESEN TA TI ON
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: 9 months 2023 financial highlights
9 months 2023 financial highlights Revenue growing double digit including InoNet, flat YoY organically +21.9% at constant exchange rates InoNet growing organically double-digit ca. 15% YoY Gross Profit Margin constantly improving, approaching run-rate @47.3% i.e. +250bps YoY and +70bps vs H1 ’23 EBI
Slide 4: Business update
@eurotech business update
Slide 5: Swing towards Edge AIoT is happening
swing towards Edge AIoT is happening revenues accelerating in integrated HW+SW for All values in € million mission-critical Edge AIoT applications #Edge AIoT @39% of revenues in 9 months #Overachieved target of 35% set for FY23 FY FY FY FY 21 22 23 24 #5
Slide 6: InoNet on a steady progress path
InoNet on a steady progress path ebitda entering double-digit realm after just 1 year #FY23 revenues on a growth path ca. 15% organic growth YoY #new wins on ADAS giving a better mix, to the benefit of GPM #GPM up ca. 400 bps in 9M thanks to a better mix, plus actions on prices vs customers & suppli
Slide 7: Edge AI trend looks resilient, ADAS pipeline growing QoQ
edge AI trend looks resilient ADAS pipeline growing QoQ Despite an uncertain global scenario we see double digit growth in Edge AI pipeline Our ADAS-focused “tiger team” is generating traction, especially in DACH We are leveraging a diversified offering with a ready-to-AI edge HW with state-of-art c
Slide 8: Looking forward
industry characterized by: destocking following panic overstocking in 2021-22 industrial sector signaling destocking will extend into Q4, orders down ca. 20% YoY on average looking forward further reduction of inventories linked to high interest rates overall softness and uncertainty across the boar
Slide 9: We are focusing on elements within our control
we are focusing on elements within our control We are confident on the continuity of the transformation towards Edge AIoT and we continue to streamline activities in this strategic direction We are squeezing cash out of inventory, on track to extract about 3M by year-end Our opex are under control a
Slide 10: Financial update 9 months 2023
financial update 9 months 2023 #10 #10
Slide 11: 9 months growth driven by Edge AIoT
9 months growth driven by Edge AIoT transformation journey progressing with a steady pace All values in € million 12.6 70.0 #Edge AIoT growing 59.8 6.3 organically 86% -2.4 -6.3 #InoNet accelerating Edge AIoT growth in EU #Traditional embedded business impacted by destocking 9M FX Delta Delta InoNet
Slide 12: Revenue breakdown by end-customer location
Europe pushed by InoNet consolidation breakdown by end-customer location #US traditional embedded other other business impacted by destocking 5 EU 6 EU % 18 % % JP 25 % 41 % #Europe boosted by strong 34 9M 9M growth on Edge AIoT and InoNet % 2022 2023 consolidation JP 43 % 29 % #Japan facing some de
Slide 13: EBITDA adjusted more than doubling
EBITDA adjusted more than doubling trend driven by GPM improvement YoY and InoNet contribution All values in € million 2.2 -0.2 5.3 3.8 -4.0 0.5 -0.4 0.0 EBITDA FX Volume Volume GPM & Mix Net Opex Net Opex EBITDA 9M ’22 InoNet Inonet 9M ’23 #13
Slide 14: Balance sheet still affected by long tail of component shortage effects
balance sheet still affected by long tail of component shortage effects All values in € million NFP improving 0.7M€ from a net debt of 18.7M€ in H1 NWC improving 0.7M€ from 23.2M€ in H1 1.5 ca. 3M€ of cash still parked in extra inventory 3.1 2.3 22.5 -14.4 -0.7 19.9 -2.2 -0.6 -4.5 -1.3 -18.0 FY FX C
Slide 15: Key takeaways 9 months 2023
key takeaways 9 months 2023 #15
Slide 16: Key takeaways
key takeaways Edge AIoT revenues more than InoNet on track on integration doubling YoY roadmap, sales synergies kicking-in & GPM improving YoY GPM approaching run-rate and NWC & NFP improving, long tail EBITDA positive of component shortage effects finally easing Accelerating journey towards Edge AI