Comer Industries Spa · MIL:COM
Comer Industries Spa — Mid & Small in Milan 2019
28 slides from Comer Industries Spa's conference presentation, Nov 19, 2019
Slide 1: Mid & Small in Milan 2019
Mid & Small in Milan 2019 Milan, 19th November 2019 1
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Comer Industries S.p.A (“Comer Industries”) for use during meetings with investors and financial analysts and is solely for information purposes. The information set out herein has not been verified by an independent audit company. Neither the Company no
Slide 3: Agenda
AGENDA 1. COMER INDUSTRIES IN A NUTSHELL 2. BUSINESS MODEL 3. MARKET AND STRATEGY 4. KEY FINANCIALS 1H 2019 5. SHAREHOLDERS STRUCTURE & CORPORATE GOVERNANCE 6. APPENDIX 3
Slide 4: 1. Comer Industries in a Nutshell
1. COMER INDUSTRIES IN A NUTSHELL 4
Slide 5: Comer Industries at a Glance
COMER INDUSTRIES AT A GLANCE ✓ Generational transition fully completed ✓ New Board of Directors with Independent member and experienced executive management fully operational ✓ Robust business model and diversified portfolio products ✓ Continuous growth trend in turnover and profits ✓ Solid financia
Slide 6: Vision, Mission and Values
VISION, MISSION AND VALUES VISION Creating an easy world through sustainable food, streets, houses and energy. MISSION We run vertical innovative solutions for agriculture and industrial business. We boost our strong global leadership position. Aware of our roots and challenging in depth our identit
Slide 7: Main Trends
MAIN TRENDS NET REVENUES 379m EBITDA 38m 342m +12 % +73 % 304m 30m Euro in millions Euro in millions CAGR From 2016 16-18 to 2018 22m +12,5% +10,8% +36,4% +26,7% 2016 2017 2018 2016 2017 2018 PEOPLE 1.387 Average employees 1.362 1.313 +49 +25 2016 2017 2018 7
Slide 8: 2. Business Model
iii 2. BUSINESS MODEL
Slide 9: Where We Are in the Value Chain
WHERE WE ARE IN THE VALUE CHAIN Tier 1 Original Tier 2 raw supplier Equipment material Customers Manufactures suppliers (OEM) AGRI Farmers Oil & Gas INDUSTRIAL Construction players OEM Construction Mining Wind plants owners OEM Energy 9
Slide 10: Who We Are & What We Do
WHO WE ARE & WHAT WE DO Comer Industries is a global player in mechatronic solutions and integrated systems for power transmission. Transmissions are designed to move or to bring power to the various parts of customer’s vehicles. 10
Slide 11: Business Overview
BUSINESS OVERVIEW BUSINESS AREA PRODUCTS LINE REGION TECHNOLOGY STRUCTURE 23% NAM ✓ 10 legal Gearboxes entities; AGRI ✓ 6 trading 58% Mechanical companies; Planetary drives 13% APAC ✓ 7 production areas; 100% ✓ C. 1.400 Powertrain systems employees. 59% EU INDUSTRIAL (17% Italy) Hydraulic 29% 0% Whe
Slide 12: 3. Market and Strategy
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Slide 13: Food Security
FOOD SECURITY In 10 years the world may not be able to feed itself according to WEF, World Economic Forum. By 2027 the world could be facing a 214 trillion calorie deficit – in just a decade we won’t have enough food to feed the planet. By 2050, the world’s population is expected to reach 9.1 billio
Slide 14: Opportunity and Strategy Pillars
OPPORTUNITY AND STRATEGY PILLARS POTENTIAL MARKET SIZE STRATEGY PILLARS MAINTAIN LEADERSHIP IN THE AGRI BUSINESS. SIZE GROWTH DRIVING ECONOMIES OF SCALE. INCREASE MARGINS. SIMPLIFICATION & DIGITIZATION. 3+ €b 5+ €b 0.2 €b 14
Slide 15: Main Competitors by Market Segment
MAIN COMPETITORS BY MARKET SEGMENT BUSINESS AREA MAIN COMPETITORS AND INCUMBANT COMPETITORS AGRI INDUSTRIAL (LISTED IN ITALY-MTA) (LISTED IN US-NYSE) 15
Slide 16: 4. Key Financials 1H 2019
4. KEY FINANCIALS 1H 2019 16
Slide 17: Key 1H 2019 Consolidated Results
KEY 1H 2019 CONSOLIDATED RESULTS Var.% 6month KEY MATTERS Euro in millions 2016 2017 2018 30June18 30June19 1H18-1H19 Net revenues 303,7 342,1 379,0 203,6 220,8 8,4% ✓ 1H19 net revenues increased by +8,4% vs 1H18; EBITDA 22,0 29,8 38,4 21,5 26,9 24,8% ✓ Top 10 customers generated Margin 7,2% 8,7% 10
Slide 18: Results by Business Area
RESULTS BY BUSINESS AREA Var.% Euro in millions 2016 2017 2018 30June18 30June19 1H18-1H19 Net revenues 184,4 215,9 231,4 128,8 129,0 0,1% As % of Group revenues 60,7% 63,1% 61,0% 63,3% 58,4% (4,8)p.p. AGRI 1H19 58% EBITDA (*) 16,4 22,2 28,0 15,6 17,1 10,1% Margin 8,9% 10,3% 12,1% 12,1% 13,3% 1,2p.p
Slide 19: Revenues by Geography
REVENUES BY GEOGRAPHY KEY MATTERS ✓ 1H19 net revenues growth (+8,4% vs 1H18) is mainly driven by new products. ✓ 1H19 new products revenues account for approximately 5% of total revenues growth (8,4%). ✓ Net revenues primarily grew in Asia Pacific (€5,4m or +23%) and in Europe (+€9,7m or +8%), in pa
Slide 20: TWC and Debt Ratios
TWC AND DEBT RATIOS Evolution of TWC items KEY MATTERS 25,0% 200,0 21,8% 22,3% 23,5% 30,0% ✓ On average DSO are 150,0 85,6 93,0 88,4 20,0% approximately 30 days 100,0 76,4 10,0% lower than DPO. Euro m 50,0 77,4 96,2 68,5 69,5 0,0% - ✓ Supply chain and Stock (50,0) (68,9) (80,6) (86,1) (91,6) (10,0%)
Slide 21: 5. Shareholders Structure & Corporate Governance
5. SHAREHOLDERS STRUCTURE & CORPORATE GOVERNANCE 21
Slide 22: Shareholders' Structure
SHAREHOLDERS’ STRUCTURE SHARES AND RIGHTS 16,70% % of share % of voting Lock up Lock Nr. of shares capital rights shares duration █ Eagles OAK S.r.l. 15.300.000 74,97% 74,97% 14.450.000 18/36 months* 8,33% █ Finregg S.p.A. 1.700.000 8,33% 8,33% █ Market 3.409.280 16,70% 16,70% 384.000 12 months TOTA
Slide 23: 6. Appendix
6. APPENDIX 23
Slide 24: Product Lines and Applications
PRODUCT LINES AND APPLICATIONS PRODUCT LINES GEARBOXES PLANETARY DRIVES POWERTRAIN SYSTEMS WHEEL DRIVES DRIVESHAFTS APPLICATIONS MINING MACHINERY COMBINED TRACTORS HARVESTERS CRANES & SELF PROPELLED COMBINED HARVESTERS & SELF CONSTRUCTION EQUIPMENT MACHINES PROPELLED MACHINES CONSTRUCTION EQUIPMENT
Slide 25: Examples of Agri Applications
EXAMPLES OF AGRI APPLICATIONS ✓ Land preparation machines ✓ Soil tillage machines AGRI ✓ Crop treatment machines ✓ Forage and hay machines ✓ Biogas systems ✓ Corn and grain headers ✓ Combines and forage harvesters ✓ Forage mixing and distribution machines ✓ Tractors 25
Slide 26: Examples of Industrial Applications
EXAMPLES OF INDUSTRIAL APPLICATIONS INDUSTRIAL ✓ Construction machines ✓ Road construction machines ✓ Forestry machines ✓ Mining machines ✓ Material handling Renewable Energy ✓ Water treatment machines 26
Slide 27: Main Milestones from 1970 to Date
MAIN MILESTONES FROM 1970 TO DATE 1970: The Storchi family founds CO.ME.R. (Costruzioni Meccaniche Riduttori) specialized in the manufacture of mechanical transmissions for agricultural machinery. 1985: Subsidiaries are set up in France, Germany, Great Britain and the United States. 1985-1990: Comer
Slide 28: Thanks for Your Attention
THANKS FOR YOUR ATTENTION COMER INDUSTRIES S.P.A www.comerindustries.com ir@comerindustries.com 28