Comer Industries Spa · MIL:COM
Comer Industries Spa — Mid & Small in Milan Virtual Conference 2020
32 slides from Comer Industries Spa's conference presentation, Dec 2, 2020
Slide 1: Mid & Small in Milan Virtual Conference
Mid & Small in Milan Virtual Conference st nd 1 - 2 December 2020 COMER INDUSTRIES Property
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
01 Comer Industries 04 Key 1H20 financials in a nutshell AGENDA 02 Business model 05 Shareholders structure & Corporate Governance 03 Market and 06 Appendix strategy COMER INDUSTRIES Property
Slide 4: Comer Industries in a Nutshell
01 COMER INDUSTRIES IN A NUTSHELL COMER INDUSTRIES Property
Slide 5: 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 6: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY In 2019 Comer Industries has launched a new project: OUR BRIGHT IMPACT. An important responsibility towards the environment and the society. The courage to take on a strong commitment, starting from adherence to the Global Goals for the sustainable development. The am
Slide 7: Historical & 2020 Trading Results
HISTORICAL & 2020 TRADING RESULTS NET REVENUES +8,8% EBITDA (adjusted) +22,5% CAGR 405 CAGR 17-19 +6,7% 17-19 +16,7% 45 YoY 39 YoY 2017-2019 379 +28,5% € in milions € in milions +10,8% 30 YoY YoY 11,1% 342 10,2% 8,8% 2017 2018 2019 2017 2018 2019 […]% represents EBITDA [adjusted] margin NET REVENUES
Slide 8: Business Model
02 BUSINESS MODEL COMER INDUSTRIES Property
Slide 9: Business Overview
BUSINESS OVERVIEW BUSINESS AREA PRODUCTS LINES REGIONS TECHNOLOGY STRUCTURE 23% NAM ✓ 10 legal entities; Gearboxes ✓ 6 trading AGRI companies; ✓ 7 production Planetary drives Mechanical areas; 53% (58% in 1H19) 23% APAC ✓ C. 1.300 employees. 100% Powertrain systems INDUSTRIAL 50% EU Hydraulic 0% 31%
Slide 10: Product Lines and Applications
PRODUCT LINES AND APPLICATIONS PRODUCT LINES GEARBOXES PLANETARY DRIVES POWERTRAIN SYSTEMS WHEEL DRIVES DRIVESHAFTS APPLICATIONS TRACTORS MINING MACHINERY COMBINED COMBINED HARVESTERS & CONSTRUCTION EQUIPMENT HARVESTERS & SELF PROPELLED CRANES SELF PROPELLED MACHINES MACHINES TELEHANDLERS CONSTRUCTI
Slide 11: Examples of Agri Applications
EXAMPLES OF AGRI APPLICATIONS • Land preparation machines • Soil tillage machines • Crop treatment machines • Forage and hay AGRI machines • Biogas systems • Corn and grain headers • Combines and forage harvesters • Forage mixing and distribution machines • Tractors 11 COMER INDUSTRIES Property
Slide 12: 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 12 COMER INDUSTRIES Property
Slide 13: Global Operations Footprint
GLOBAL OPERATIONS FOOTPRINT R&D Italy Center Driveshafts USA Pegognaga (MN) Charlotte, North Carolina China Pinghu, Zhejiang Italy Gearboxes, Planetary Drives & Axles 7 Reggiolo (RE) Production areas Manufacturing plant Italy Assembly capability Matera (MT) India Bangalore, Karnataka 13 COMER INDUST
Slide 14: 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 Construction players INDUSTRIAL Mining OEM Construction Wind plants owners OEM Energy 14 COMER INDUSTRIES Property
Slide 15: Our Main Customer
OUR MAIN CUSTOMER Top 10 customers generated approximately 50% of total revenues. OUR CUSTOMERS 15 COMER INDUSTRIES Property
Slide 16: Market and Strategy
03 MARKET AND STRATEGY COMER INDUSTRIES Property
Slide 17: Current Addressable Market and Strategy Pillars
CURRENT ADDRESSABLE MARKET STRATEGY PILLARS ✓ Maintain leadership in the Agri Business ✓ Size growth driving economies of scale ✓ Increase margins ✓ Simplification and digitization 3+ €b 5+ €b 0.2 €b 17 COMER INDUSTRIES Property
Slide 18: Drivers & Megatrends
DRIVERS & MEGATRENDS MEGA TRENDS Climate Change Healthcare Demography Urbanisation Sustainability Digitization Green house Emissions Growing population Growing number Congestion Connected world Gas reduction reduction Aging societies of mega-project infrastructures Consequences Mkt shifting to Highw
Slide 19: Main Competitors by Market
MAIN COMPETITORS BY MARKET BUSINESS AREA MAIN COMPETITORS AND INCUBANT COMPETITORS AGRI INDUSTRIAL (LISTED IN ITALY MTA) (LISTED IN US-NYSE) 19 COMER INDUSTRIES Property
Slide 20: Key 1H20 Financials
04 KEY 1H20 FINANCIAL COMER INDUSTRIES Property
Slide 21: Key Consolidated Half Year Results
KEY CONSOLIDATED HALF YEAR RESULTS Var.% YoY Euro in millions 30June18 30June19 30June20 1H19 vs 18 1H20 vs 19 MAIN COMMENTS Net revenues 203,6 220,8 191,6 8,4% (13,2%) • 1H20 net revenues decreased by -13,2% vs EBITDA 21,5 26,9 21,4 24,8% (20,4%) 1H19, while adjusted EBITDA decline by - Margin 10,6
Slide 22: Revenues by Business Area
REVENUES BY BUSINESS AREA KEY COMMENTS • AGRI sales decrease reflects both the impact of COVID-19 lockdown and downturn of tractors and combines markets. • Industrial business benefited of growth of the APAC revenues, linked to mass production of the FY19 new products. Var.% YoY Euro in millions 1H1
Slide 23: Revenues by Geography
REVENUES BY GEOGRAPHY KEY COMMENTS • The 1H20 sale performance (-€29m) reflects the opposite trend of the growth in APAC (+€17m or +58% vs 1H19) and the reduction in the other areas (-€46m or -24%). • The 1H20 increase in APAC is primarily linked to the Industrial business. • 1H20 APAC revenues incl
Slide 24: TWC Evolution
TWC EVOLUTION Evolution of TWC 200,0 23,5% 24,3% 30,0% 21,8% 22,3% 21,0% 150,0 88,4 20,0% 93,0 85,5 84,6 85,6 100,0 10,0% 50,0 96,2 Euro m 69,5 77,4 77,3 80,5 0,0% - (80,6) (86,1) (77,7) (73,7) (10,0%) (50,0) (91,6) (100,0) (20,0%) (150,0) (30,0%) 31Dec17A 31Dec18A 30Jun19A 31Dec19A 30Jun20A Trade r
Slide 25: Net Debt/(Cash) Evolution
NET DEBT/(CASH) EVOLUTION Evolution of Net Debt / (cash) [adjusted] 50 40,7 40,7 40 36,7 36,7 36,8 29,1 30 Euro m 18,4 20 10,1 10 2,9 0 -10 (6,2) 31Dec17A 31Dec18A 30Jun19A 31Dec19A 30Jun20A Net Debt / (cash) [adjusted] Net Debt / (cash) KEY COMMENTS • At 30Jun2020 total credit lines available amoun
Slide 26: Shareholders Structure & Corporate Governance
05 SHAREHOLDERS STRUCTURE & CORPORATE GOVERNANCE COMER INDUSTRIES Property
Slide 27: Shareholders' Structure
SHAREHOLDERS’ STRUCTURE SHARES AND RIGHTS % of share % of voting Lock up Lock up Nr. of shares capital rights shares duration 28,3% █ Eagles OAK S.r.l. 14.640.089 71,73% 71,73% 10.408.733 36 months (A) █ Market (*) 5.769.191 28,27% 28,27% 659.911 36 months (B) TOTAL ORDINARY SHARES 20.409.280 100,00
Slide 28: 2020-2021 Share Buyback Plan
2020-2021 SHARE BUYBACK PLAN APPROVAL • On 22nd April 2020, Comer Industries’ Shareholders’ meeting authorized the purchase and disposal of own shares. PURCHASE THRESHOLD • 10 % of the share capital; • Amount of distributable results of prior years and available reserves indicated in the latest avai
Slide 29: Appendix
06 APPENDIX COMER INDUSTRIES Property
Slide 30: 50 Years of History: Main Milestones
50 YEARS OF HISTORY: MAIN MILESTONES 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. 1985-1980: Co
Slide 31: Group Structure
GROUP STRUCTURE Comer Industries SpA Reggiolo (RE) (Italy) (Head Quarter) Comer Industries Comer Industries Comer Industries UK Comer (Shaoxing) Co Ltd 100% 100% Components Srl Ltd 100% 100% GmbH Shaoxing (China) Matera (MT) (Italy) Leicester (UK) Schermbeck (Germany) (Sales Office) 65,8% Comer Indu
Slide 32: Thanks for your attention
Thanks for your attention COMER INDUSTRIES Property
Comer Industries — Mid & Small in Milan Virtual Conference 2020 on 6ix