Arteche Lantegi Elkartea Sa · BME:ART
Arteche Lantegi Elkartea Sa — Investor Presentation (March 2022)
22 slides from Arteche Lantegi Elkartea Sa's investor presentation, March 2022
Slide 1: Arteche Corporate Presentation March 2022
Arteche Corporate Presentation March 2022 0
Slide 2: Disclaimer
Disclaimer The information contained in this corporate presentation has been prepared by Arteche Lantegi Elkartea, S.A. (hereinafter the Company or Arteche Group) and includes financial information drawn from the interim consolidated fiancial statements of the Company and its Group for the period FY
Slide 3: Snapshot of Arteche
Snapshot of Arteche Revenues growth €282m Key financial figures (FY 2021) Arteche is a global designer, >8% CAGR ‘17-’21 manufacturer, integrator and provider of electrical equipment… Focus on renewables >30% Activity of 2021 Rev. … and solutions for the measuring, Attractive operating profitability
Slide 4: Key milestones achieved since its incorporation in 1946
Key milestones achieved since its incorporation in 1946 Founding phase Expansion phase with special focus on internationalization and innovation Post-IPO phase 1973 1975 2007 The Company becomes First product sold New technology technologically abroad center 2011 independent Acquisition of optic mea
Slide 5: Value-add product portfolio
Value-add product portfolio Measurement & Monitoring Transmission & Distribution Network Reliability Systems Grid Automation 2021 Revenues by business line Network Reliability Solutions that guarantee the Services that strengthen T&D Grid 7% Expertise in products focused digitalization and automatio
Slide 6: Arteche's presence across the value chain
Arteche’s presence across the value chain Services and solutions for Instrument transformers and renewable grid integration sensors to measure electrical and grid code compliance magnitudes Generation Transmission Distribution Relays to command and control power equipment Substation automation to co
Slide 7: Manufacturing capabilities
Manufacturing capabilities Key figures Production and distribution footprint Headquarters Countries with commercial 175 distribution capabilities Sales footprint Physical presence Factories in Europe, (factories and/or 13 America and Asia… delegations) …including dedicated 6 research centres Commerc
Slide 8: Historical financials: Revenues
Historical financials: Revenues Revenues evolution (€m) Since 2017, Arteche has had a strong growth across all business lines • Consolidated its presence in USA, Spain and Brazil in measurement & monitoring systems solutions 255 265 282 217 • Strong growth in automation solutions in EMEA and LATAM 2
Slide 9: Historical financials: Direct margin and EBITDA margin
Historical financials: Direct margin and EBITDA margin The Company has been increasing its share of products with higher operating margins EBITDA margin evolution (€m, %) • Margin improvement measures: o Better control of contracting margins 11.3% 11.1% 10.0% 9.3% 10.8% o Improved sourcing to reduce
Slide 10: Historical financials: Financial debt
Historical financials: Financial debt Arteche conducted several deleveraging efforts to accomplish a sustainable financial structure today Net financial debt (NFD), NFD/EBITDA evolution (€m, x) • Diversified its sources of debt Avg. maturity: 1.6Y Avg. cost: c.6.0% Avg. maturity: 5.2Y • Interest rat
Slide 11: Key investment highlights
Key investment highlights Positive trends within the renewables and transmission & distribution markets are Positive 1 generating new opportunities perspectives Leading independent group backed by key pillars that strengthen its leadership 2 position Differentiated 3 Long-term relationship with sect
Slide 12: Positive trends within renewables and transmission & distribution markets
Positive trends within the renewables and transmission & distribution 1 markets are generating new opportunities Electrification Transformational sector trends (growing electricity demand) Decarbonization Decentralization Digitalization • Increasing energy demand • … and shift towards • … of the tra
Slide 13: Arteche's addressable market and leadership positioning
2 Arteche’s addressable market and leadership positioning Main markets Global market size Arteche’s market share Leadership position Key players High voltage #2 instrument €800m c.15% transformers #3 Measurement & Monitoring Systems c.7% Medium voltage instrument €600m #1 transformers c.70% Relays f
Slide 14: Competitive landscape
2 Competitive landscape Large global players Small specialized players Reliability +40 million units sold during the last 10 years P c.€0.5-1.0m spent yearly in maintaining product Technology homologations P Ability to meet clients’ product specifications Flexibility with lower time to market P Proj
Slide 15: Customer retention and customer acquisition process
2 Customer retention and customer acquisition process Direct relationship with the end user Indirect relationship with the end user Each company has its own standards and criteria for Technical approval / technical approvals Homologation Framework agreement Specifications and internal analysis Produ
Slide 16: Long-term relationship with sector-leading clients
3 Long-term relationship with sector-leading clients Utilities >1,500 globally(1) 1 2020 Revenues by 2020 Revenues client type concentration Others, 7% Client A, 12% OEM, 9% Client B, 7% Diversified Utilities Client C, 5% customer base Distributors 35% Client D, 3% 21% Client E, 3% Others EPC, 28% 6
Slide 17: Industry reference company backed by its outstanding innovation capacity
Industry reference company backed by its outstanding innovation 4 capacity Annual investment in R&D(1) (€m) R&D team with +140 people Dedicated 9.7 8.8 9.2 9.3 team sourced +120,000 hours in 2020 in R&D 4.0 4.4 4.7 4.6 with recurrent investment 5.7 4.4 4.5 4.7 c.30% of the R&D projects are co-develo
Slide 18: Well-defined organic and inorganic growth plan
Opportunity to accelerate growth and improve positioning through a 5 well-defined organic and inorganic plan Pillars of future growth strategic plan New solutions Geographic expansion Such as, Digitalization, Bet on renewables and Expand into the USA and Asia; and ESG and Energy storage solutions co
Slide 19: Best-practices in Corporate Governance
6 Best-practices in Corporate Governance Current shareholding structure The Board of Directors Free-float Alexander Artetxe 15.5% Chairman & CEO Onchena S.L. 5.5% Lander Artetxe Dámaso Arteche family Executive Quintana 52.4% (rep. Ziskua Ber S.L.) Dominical Basque Private Equity Fund 6.4% José María
Slide 20: Environmental and Social responsibility plans at the centre of core activities
Environmental and Social responsibility plans always at the centre of 7 Arteche’s core activities Achievements Sustainability Strategic Goals 2030 10 strategic objectives Net-zero carbon Products designed with ecological 1 Loan from Cofides with a insulation. 5 strategic lines €3m variable component
Slide 21: Closing remarks
Closing remarks Arteche presents strong investment fundamentals 1 2 3 4 5 Unique Sector with high Strong growth Leadership Smart innovation investment entry barriers, perspective position in a capabilities and opportunity with fostering supported with specialized top notch differential value Arteche
Slide 22: ARTECHE LANTEGI ELKARTEA, S.A. Investor Relations Office
ARTECHE LANTEGI ELKARTEA, S.A. Investor Relations Office Tel: +34 620 328 643 investors@arteche.com www.arteche.com 21
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