Marzocchi Pompe S.p.a. · MIL:MARP
Marzocchi Pompe — H1 2024 Earnings Presentation
45 slides from Marzocchi Pompe's earnings presentation, Oct 2, 2024
Slide 1: First Half 2024 Results Presentation
FIRST HALF 2024 RESULTS PRESENTATION 2 October 2024
Slide 2: Disclaimer
Disclaimer Privacy The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced with
Slide 3: Agenda
Agenda Company at a Glance 1H 2024 Results & Outlook Achievements Market & Competitive Positioning Appendix Business Overview 3
Slide 4: Marzocchi Pompe at a glance: world leader in top-performing products
Marzocchi Pompe at a glance: world leader in top-performing products Marzocchi Pompe is a leading world player in the design, production and marketing of high performance external gear pumps and Company motors, which are used in sectors like: industrial (textile machines, machine tools, plastic inje
Slide 5: Shareholders & Management: full alignment of interest
Shareholders & Management: full alignment of interest TOP MANAGEMENT BOARD OF DIRECTORS SHAREHOLDERS Paolo MARZOCCHI Paolo MARZOCCHI Free Float 24,02% Main Shareholder, Executive Chairman Executive Chairman Carlo MARZOCCHI TABACCHI Deputy Chairman Gabriele BONFIGLIOLI CEO Treasury Shares Franco ROSS
Slide 6: 1H 2024 Results
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Slide 7: 1H 2024 Results: sales & margin held well in challenging markets
1H 2024 Results: sales & margin held well in challenging markets NET SALES AT € 22.0 M, -17% ON 1H 2023, FULLY EXPECTED AND IN LINE WITH INDUSTRY TREND • THE CORE BUSINESS SALES WERE € 18.5 M IN 1H 2024, A TEMPORARILY DECLINE OF -13% Y-O-Y, AS SHOWN BY THE +1.2% INCREASE ON 2H 2023 • THE AUTOMOTIV
Slide 8: Revenues at € 22.0 m, EBITDA margin at 14.6%
Revenues at € 22.0 m, EBITDA margin at 14.6% Sales Revenue and EBITDA (€m) • Revenues at € 22.0 million, -17% vs. 1H 2023, were inevitably affected by the global industry slowdown, after the buoyant 2023 26,6 • Core Business sales were € 18.5 million (-13%), a 25 22 temporary slowdown as witnessed b
Slide 9: Core Business at 84% of revenues, America at 32%
Core Business at 84% of revenues, America at 32% Revenue Breakdown • Revenues by Core market segments (Sales Network, Industrial and Mobile) increased to 84% of Total Sales, reaching € 18.5 million (- 23,0% 27,7% 13% vs. 1H 2023), however posting a +1.2% increase on 2H 2023 which bodes well for Core
Slide 10: Resilient Profitability at both Operating and Net level
Resilient Profitability at both Operating and Net level EBIT Adjusted and Net Result (€m) • EBIT was € 1.8 million, down 42% from € 3.1 million at 30 June 2023, as a result of 4 lower sales and margin pressure despite 3,5 3.4 ongoing cost savings (i.e. new photovoltaic 3 system) 2,5 • Adjusted EBIT,
Slide 11: Marzocchi strong points: Cash management and Financial solidity
Marzocchi strong points: Cash management and Financial solidity Net Financial Position Evolution (€m) 2,0 • Net Financial Debt* increased to € 7.0 million, up 31% compared to 31 December - 2023 (€ 5.3 million) due to various factors: (2,0) • investments for the expansion of the (4,0) Zola Predosa si
Slide 12: Achievements
Achievements
Slide 13: New ELIKA Modular upgrades Marzocchi top-performing pump
New ELIKA “Modular” upgrades Marzocchi top-performing pump IN 2019 THE NEW ELIKA DEPARTMENT WAS COMPLETED THROUGH AN INVESTMENT OF MORE THAN 1 MILLION €S IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE FLAGSHIP PRODUCT CHARACTERIZED BY LOW NOISE & HIGH
Slide 14: New Warehouse in Zola Predosa to improve and widen logistic flows
New Warehouse in Zola Predosa to improve and widen logistic flows ENLARGEMENT & RATIONALIZATION OF PRODUCTION CAPACITY AND LOGISTICS IN ZOLA PREDOSA PLANT IN OCTOBER 2022 MARZOCCHI POMPE PURCHASED AN INDUSTRIAL PROPERTY OF APPROX. 4,800 SQUARE METRES, OF WHICH APPROX. 1,800 COVERED, NEXT TO THE ZO
Slide 15: New Plant with Photovoltaic Panels to combine ESG with cost savings
New Plant with Photovoltaic Panels to combine ESG with cost savings INSTALLATION OF PHOTOVOLTAIC PANELS ON THE ZOLA PREDOSA PLANT TO ENHANCE MARZOCCHI’S “GREEN” VOCATION AT THE SAME TIME REDUCING CONSISTENLY ENERGY COSTS IN OCTOBER 2023 MARZOCCHI POMPE COMPLETED THE INSTALLATION OF PHOTOVOLTAIC SY
Slide 16: Marzocchi participates to global industry events scouting new markets
Marzocchi participates to global industry events scouting new markets… Leitmotiv: by land, sea and sky and brand new experiences AERO EXPO FRIEDRICHSHAFEN– 17.04.2024 Aerospace Exhibition - Hall B3, Booth 110 SMM BOAT SHOW HAMBURG – 03.09.2024 Marine Exhibition – Hall B3.OG, Booth 237 EIMA Bol
Slide 17: After presenting to world leading trade fairs in 2023
… after presenting to world leading trade fairs in 2023 (taking place every 2 years) Bauma ConExpo India – 31.01.2023 Mobile Exhibition - Hall 10, Booth L102 IFPE ConExpo Las Vegas – 13.03.2023 World Mobile Exhibition – South Hall, Booth 81745 Hannover Messe – 17.04.2023 World Fluid Power Exhi
Slide 18: 1H 2024 Highlights & Outlook
1H 2024 Highlights & Outlook THE SATISFACTORY RESULTS ACHIEVED IN THE FIRST HALF OF 2024 REFLECT THE RESILIENCE AND SOLIDITY OF MARZOCCHI POMPE IN AN EXTREMELY CHALLENGING MARKET ENVIRONMENT VOLUMES AND MARGINS HAVE SHOWN EXCELLENT HOLD, DEMONSTRATING ONCE AGAIN THE COMPANY CAPABILITY TO ADAPT A
Slide 19: Sustainability
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Slide 20: ESG Achievements confirm strong commitment towards Sustainability
ESG Achievements confirm strong commitment towards Sustainability • Sustainability Report – Marzocchi has started a process of analysis aimed at identifying methods and timing for this activity, in order to improve its footprint to enhance value creation • Marzocchi Certifications • ESG Score by Ado
Slide 21: ESG Achievements: New Green Projects in 2023
ESG Achievements: Strong commitment towards Sustainability (2/2) New «Green» Projects in 2023 • Treedom Forest – In February Marzocchi launched the creation of the “Marzocchi Pompe Forest”, giving away the first 300 trees to its employees • This project will not only bring a contribution to carbon d
Slide 22: A brand new Security Operation Center
A brand new Security Operation Center • In March 2022 Marzocchi Pompe, in partnership with Yarix, finalized a C SOC + Cynet project • Marzocchi’s Cognitive Security Information Center C SOC will operate the: o H24x7x365 monitoring of company networks o Physical and Biometric Security of last generat
Slide 23: Market & Competitive Positioning
Market & Competitive Positioning
Slide 24: Fluid Power market and growth forecasts
Fluid Power market and growth forecasts The Fluid Power market is made up by the hydraulic segment and the pneumatic segment. In Asia, Europe and USA the Fluid Power home1 market went from € 25.7 billion in 2000, to € 41.5 billion in 2020 and to 47.3 billion in 2021 of which € 34.2 billion (72%) ste
Slide 25: Focus on hydraulic pumps' market
Focus on hydraulic pumps’ market Within the Hydraulic home1 market, the pumps’ segment is estimated by ISC to be around 5.7 billion (17%) in 2021 (Vs € 4.9 billion in 2020), of which € 3.7 billion (11%) coming from the reciprocating pumps’ segment (axial and radial piston pumps) and € 2 billion (6%)
Slide 26: Competitive positioning
Competitive positioning Characteristic Quality & Customer Gear Pumps Fluid Power Competitiveness Quality Range Customization vs Price vs Price Company Performance service Range Marzocchi Pompe Bosch Rexroth Bucher Casappa Concentric Galtech/Interpump Hema / DB HPI / JTech Parker Roquet Salami Turoll
Slide 27: Product Quality & Performance
Leadership in external gear pumps market + Product Quality & Performance Source: Marzocchi Pompe SpA management estimates - - Product Customization/ Customer service + 27
Slide 28: Appendix: Business Overview
Appendix • Business Overview
Slide 29: MP core business: manufacturing of external gear pumps and motors
MP core business: manufacturing of external gear pumps and motors • The pumps have the function of transferring the fluid from a tank to an actuator within an oil-hydraulic circuit. (for example, a cylinder that drives the shovel of an excavator). This transfer from the suction circuit to the delive
Slide 30: Overview of pump composition and application examples
Overview of pump composition and application examples The pumps are composed of the following main parts: body, flange, cover and bushings in aluminium, and gears (driving and driven wheel) in steel. For some types of products, the flange and the cover can be made out of cast iron. Further component
Slide 31: Product applications
Product applications Medical equipment Gardening machines Actuators for surgical tables, diagnostic equipment, latest- In this type of application it is essential that oil-hydraulic generation stretchers, dental chairs: in general, for small pumps and motors guarantee the complete absence of medical
Slide 32: Technological innovation and quality standards
Technological innovation and quality standards The Group's business model is focused on the design, production and marketing of high-performance external gear pumps and motors. The Company manufactures almost all the main components within its own production sites and uses the historical brand “Marz
Slide 33: Target markets
Target markets Core market revenues include Industrial and Mobile machines applications and represent 83.9% of total 1H 2024 revenues, including sales to distributors/sales network, which alone contribute to 34.9% of MP’s total sales(*) FLUID POWER Core Automotive Industrial Mobile Machines Possible
Slide 34: Main client composition
Main client composition • The company benefits from a diversified client base for the Industrial and Mobile machine sectors, having their top 3 clients making up only 9.7% of sales and the top 10 representing 19.6%. The Automotive sector, on the other hand, has fewer clients making up for most of it
Slide 35: Global distribution network
Global distribution network Marzocchi Pompe relies on an international distribution network present in over 50 countries. Products are distributed through various channels, such as direct sales, distributors, sales1, American branch operations and Chinese branch operations Distribution network’s hig
Slide 36: Investment highlights
Investment highlights • The Hydraulic market is large, estimated to be around 10.3 billion in 2021 in Europe (Source: CETOP) and € Large target market 1.6 billion in 2021 in Italy (Source: Assofluid) experiencing growth • Evidence of upward trend of Italian hydraulic market in the 2009-2018 period,
Slide 37: Organizational structure and production sites
Organizational structure and production sites • Marzocchi Pompe can count on a team of professionals with consolidated experience. As of the 30th of June 2024 the workforce consists of 276 resources (of which 260 are permanent employees), with an heterogeneous background of professional skills that
Slide 38: Diapositiva 37
Diapositiva 37 be0 è ancora attuale come dato al 30.06.2024? in Relazione finanziaria semestrale sembra ci sia evidenza solo del personale Italia e USA beatrice.bussoli@integraesim.it; 2024-10-01T10:26:40.626
Slide 39: History
History Main operative milestones Start-up of large-scale production On 16th July 2019 In November 2020, Construction of a of the Elika pump, an innovative listing on the AIM set-up of the joint- production unit in product with low noise and high market, opening the venture "Marzocchi Ostellato (FE)
Slide 40: Consolidated Profit & Loss
Consolidated Profit & Loss Eur 000 30-Jun-24 30-Jun-23 Sales revenue 22,017 26,626 100% 100% WIP changes 58 317 Other revenues 412 511 PRODUCTION VALUE 22,487 27,455 Raw material consumption (4,998) (22.6%) (6,872) (25.5%) Service costs (5,853) (26.5%) (7,225) (26.8%) Costs for use of third-party go
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet Eur 000 30-Jun-24 31-Jun-23 A) NET FIXED ASSETS 17,218 16,837 Intangible fixed assets 705 852 Tangible fixed assets 15,733 15,156 Financial fixed assets 780 828 B) NET WORKING CAPITAL 19,429 15,725 Inventories 12,431 12,794 Assets intended for sale 0 0 Advances from custom
Slide 42: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Eur 000 30-Jun-24 31-Dec-23 Operating profit [EBIT] 1,776 4,458 Tax effect (108) (710) Change in funds (62) (678) Provisions and write-downs 1,455 3,643 Income cash-flow 3,061 6,713 Change in working capital Inventories 364 1,214 Trade receivables (1,509) 866 Other r
Slide 43: Focus on family and management Buy-out
Focus on family and management Buy-out During 2018 the company underwent a restructuring procedure that modified the shareholding structure. As of today, the company is owned by Paolo Marzocchi. The operation was completed through the creation of a financial debt with Banca di Bologna, which allowed
Slide 44: Disclaimer
Disclaimer Privacy The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced with
Slide 45: Contacts
CONTACTS Marzocchi Pompe S.p.A. ir@marzocchipompe.com Integrae SIM S.p.A. – Euronext Growth Advisor Francesco D’Antonio francesco.dantonio@integraesim.it Dario Gancitano dario.gancitano@integraesim.it Beatrice Bussoli beatrice.bussoli@integraesim.it CDR Communication - Investor & Media Relations Pao