Eurotech S.p.a. · MIL:ETH
Eurotech — 9M 2024 Earnings Presentation
15 slides from Eurotech's earnings presentation, Nov 1, 2024
Slide 1: 2024 nine months results
2024 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 2024 financial highlights
9 months 2024 financial highlights Revenues @ 43.0M€ largely affected by phase-out of main customer on legacy embedded business in US, destocking in Japan and market weakness in Germany -37.2% YoY at constant exchange rates Gross Profit Margin @ 51.8% improving 450 bps YoY Opex down 2.9M€ YoY net of
Slide 4: Business update
@®eurotech business update
Slide 5: 4M€ cost saving achieved in FY24 vs FY23
4M€ cost saving achieved in FY24 vs FY23 reported, @ constant exchange rates Workstreams achieved: Reduced external consultants on all activities where internal personnel is now available & trained Right-sized structure supporting legacy Embedded business Activated new cross-Country synergies FY24 o
Slide 6: Going forward…
going forward… H2 revenues improving vs H1 H2 GPM in line with H1 Customers still releasing orders "last-minute“, but… noticeable increase in customer interest in discussing new business in the past months growing number of bid requests, an increase in the order book should materialize in the months
Slide 7: New modular product designed for scaling
new modular product designed for scaling a new concept of modular cybersecure gateway suitable for channels too Enables the ‘semi-custom’ approach: configuration vs customisation Cybersecure by design to serve new challenging regulations: EU NIS2 US IoT Cybersecurity Improvement Act RED Cyber Resili
Slide 8: Getting traction on grids and security & surveillance
getting traction on grids and security & surveillance our cybersecure offering is matching an emerging demand for mission critical assets Project won in water grids: 5,000 cybersecure gateways with remote device management over next 4 years Incremental business with existing customer Project won in
Slide 9: Financial update
=\ a ys ™eurotech financial update
Slide 10: 9 months drop driven by legacy business
9 months drop driven by legacy business All values in € million edge AIoT accounts for 59,8% of total revenues 70.0 #65% of revenues decrease linked -1.6 -1.8 to phase out of US legacy embedded customer 43.0 -23.6 #26% of revenues decrease linked to destocking in Japan #Edge AIoT suffered because of
Slide 11: Europe is the first area, breakdown by end-customer location
Europe is the first area breakdown by end-customer location #US suffering from mismatch between phase-out of main customer other other on Embedded and phase-in of new Edge AIoT business 6 1 % EU JP % 25 % #Europe facing some weaknesses, JP 25 41 especially in Industrial Automation, % 9M 9M % and rec
Slide 12: EBITDA margin negative due to volume decrease
EBITDA margin negative due to volume decrease better GM and OPEX savings only partly compensated Sales decline All values in € million 3,799 3,570 -229 323 2,875 -3,264 -990 -4,254 1,972 12,004 EBITDA Fx rate EBITDA Lower Better Opex Other EDITDA Non-recurring EBITDA 9H 23 effect 9M 23 FX 24 Volume
Slide 13: Balance sheet affected by reduction of NWC
balance sheet effected by reduction of NWC All values in € million NFP down 0.4M€ vs year end 2023, NWC down 4.9M€ vs year end 2023 driven but operating cash flow was positive by collection of trade receivables despite the negative EBITDA 23.9 0.7 19.0 2.5 2.2 3.3 -20.6 -0.3 -21.0 -8.9 -1.8 -3.0 FY
Slide 14: Key takeaways
@®eurotech key takeaways UNLEASHING THE POWER OF THE EDG!
Slide 15: Key takeaways
key takeaways Revenues still weak YoY due to New modular cybersecure gateway market conditions plus phase-out launched: first family available in of legacy business main customer December, more to come in 2025 in USA GPM improving 450bps YoY, Low visibility still the new normal, Opex down 2.9M€ YoY