Racing Force Spa · MIL:RFG
Racing Force Spa — Investor Presentation (September 2022)
44 slides from Racing Force Spa's investor presentation, Sep 30, 2022
Slide 1: The Beat of Racing Hearts
THE BEAT OF RACING HEARTS September 2022 RFG Investor Presentation V.2022-09-30
Slide 2: Notice to Recipient - Strictly Confidential
NOTICE TO RECIPIENT - STRICTLY CONFIDENTIAL The information contained in this documentation has been prepared by Racing Force S.p.A. (the “Company”) and its consolidated subsidiaries (together, the "Group") for the sole purpose of the presentation made to you concerning the Group. This presentation
Slide 3: An International Leadership Team
AN INTERNATIONAL LEADERSHIP TEAM Paolo Delprato Stephane Cohen Gabriele Pedone Group Chairman and CEO Group Co-CEO CEO Racing Force USA Chairman Racing Force International CEO Racing Force International Chairman High Protection Systems CEO High Protection Systems BELL Co-Founder +15 Years of Industr
Slide 4: Introducing Racing Force Group
INTRODUCING RACING FORCE GROUP IN A RACING CAR SEE VIDEO 04
Slide 5: Racing Force at a Glance
RACING FORCE AT A GLANCE RACING FORCE OPERATES IN THE DEVELOPMENT, PRODUCTION AND MARKETING OF SAFETY COMPONENTS AND PROTECTION EQUIPMENT FOR THE MOTORSPORT INDUSTRY RACING FORCE GROUP TODAY Brands Numbers Worldwide Leadership in Motorsport Safety Equipment Widest range of products covering the full
Slide 6: 70+ Years of Uncompromised Innovation and Reliability in Motorsport Safety Equipment
70+ YEARS OF UNCOMPROMISED INNOVATION AND RELIABILITY IN MOTORSPORT SAFETY EQUIPMENT Zeronoise is founded. MOU with LIFT to produce carbon shells Percivale’s brothers founded OMP establishes a subsidiary in OMP become the official Racing Spirit Project starts. for the Next Generation Fixed-Wing OMP
Slide 7: Unique Product Offering Covering the Full Spectrum of Motorsport Safety Equipment
UNIQUE PRODUCT OFFERING COVERING THE FULL SPECTRUM OF MOTORSPORT SAFETY EQUIPMENT AND BEYOND DRIVER EQUIPMENT CAR PARTS Fire Steering Car Racewear Kart-wear Helmets FHR Intercom Seats Harnesses Rollbars Extinguisher Wheels Accessories Systems HOMOLOGATED (70% of Products) HOMOLOGATED (70% of Product
Slide 8: The Partner of Choice: From Top Drivers to Amateurs, Teams and Regulatory Bodies
THE PARTNER OF CHOICE: FROM TOP DRIVERS TO AMATEURS, TEAMS AND REGULATORY BODIES SELECTED TOP DRIVERS SELECTED PARTNERSHIPS Lewis Hamilton Charles Leclerc Carlos Sainz George Russell Thierry Neuville (WRC driver) Kalle Rovanpera (WRC driver) Sébastien Ogier Valentino Rossi Noah Milell (WRC Champion)
Slide 9: A Long Term Double-Digit Growth History
A LONG TERM DOUBLE-DIGIT GROWTH HISTORY SALES Consolidated EBITDA Acquisition 52% decrease in turnover (€ M) Margin (%) of FIA # Racing events and 19.2% 46.7 2019 Pro-Forma Revenues 11.4% 15.9% 36.6 33.7 2019 Consolidated Revenues PF 25.7 18.4 % CAGR ‘14 – ’21: +14.2 2014 2015 2016 2017 2018 2019 PF
Slide 10: Motorsport Safety Equipment Market
MOTORSPORT SAFETY EQUIPMENT MARKET
Slide 11: A Strictly Regulated Market with Strong Barriers to Entry
A STRICTLY REGULATED MARKET WITH STRONG BARRIERS TO ENTRY Motorsport: “any competition or related sport activity restricted to vehicles that (i) have at least four non-aligned wheels and (ii) are constantly and entirely controlled by a driver on board the vehicle” FIA 2019 KPIs (Source: FIA - EY) €5
Slide 12: Homologations Aimed at Constantly Improving Safety
… AIMED AT CONSTANTLY IMPROVING SAFETY… A LONG PROCESS OF ANALYSIS AND IMPLEMENTATION OF NEW STANDARDS… PASSIVE SAFETY PRODUCTS Should not prevent the accident but reduce the consequences for the persons involved as much as possible 1991 1992 1998 1999 2000 2001 2004 2009 2010 2013 2015 2016 2018 20
Slide 13: Across a Growing Number of Competitions
… ACROSS A GROWING NUMBER OF COMPETITIONS AN ALL-FEMALE AN ELECTRIC RALLYCROSS CHAMPIONSHIP, FREE-TO-ENTER RACING A EUROPEAN CROSS COUNTRY CHAMPIONSHIP CHAMPIONSHIP AND GIRLS ON TRACK RALLY STAR 2014 2019 2020 2021 2022 A SINGLE-SEATER A MULTI-SPORT A TOURING CARS SERIES FIA RALLY STAR MOTORSPORT MO
Slide 14: Leadership in a Fragmented Market Dominated by Players
LEADERSHIP IN A FRAGMENTED MARKET DOMINATED BY 3 PLAYERS SINGLE EXTENDED PRODUCT RANGE PROFESSIONAL QUALITY Headquarter Sparco Worldwide Simpson (mainly USA) Market Worldwide Impact USA Stilo Worldwide Main brands RANGE OFFER CAR EQUIPMENT Racewear Kartwear Helmets ENTRY LEVEL QUALITY FHR Intercom S
Slide 15: Racing Force Group Range of Products
RACING FORCE GROUP RANGE OF PRODUCTS
Slide 16: Unique Brand Portfolio Combining Heritage and Innovation
UNIQUE BRAND PORTFOLIO COMBINING HERITAGE AND INNOVATION “ICONIC” BRANDS “YOUNG” BRANDS Established in 1973 Established in 1954 Established in 2018 Established in 2012 16
Slide 17: Over 2,000 Products in its Catalog
OVER 2,000 PRODUCTS IN ITS CATALOG Over 2,000 products in its catalog with the majority homologated to industry standards including FIA, FIA Karting, SFI and Snell APPAREL MOTORSPORTS OTHER APPAREL TOP OF RANGE PRO-RACING AMATEURS PRO-KARTING TEAMWEAR ONE LINE TECNICA LINE FIRST LINE KS LINE MECHANI
Slide 18: Helmets: Open Face and Full Face Models
ANY SURFACE ANY SPEED A selection from our wide range of models ADVANCED CARBON PRO SPORT MAG-10 MAG-10 HP10 RALLY RALLY CARBON RALLY PRO MAG RALLY - Rally - Rally - Rally - Rally OPEN FACE HELMETS - Offshore MAG-10 MAG-10 HP10 CARBON PRO MAG - Circuit - Circuit - Circuit - Circuit HP77 GTX3 CARBON
Slide 19: Zeronoise. Silence and Vision
ZERONOISE. “SILENCE” AND “VISION” Technology that improves performance AUDIO DEVICES HEADSETS RADIO HELMET KITS DRIVER’S EYE A PERFECT GROUP Communication systems and amplifiers Professional headsets, radio kits, The pioneering camera used in the Bell helmets are directly integrated for racing (circ
Slide 20: Racing Spirit. Racing DNA 365 Days a Year
RACING SPIRIT. “RACING DNA” 365 DAYS A YEAR We stole (borrowed) the spirit of racing PARTNERSHIPS JACKETS PANTS T-SHIRTS AND POLO OTHER PIRELLI, Toyota RD, Dallara and Skoda: supply of clothing to all Pirelli, Toyota Racing Development, Dallara and Skoda motorsport personnel worldwide FERRARI TRENTO
Slide 21: Tightly Controlled Value Chain Delivering Speed, Reliability and Customer Satisfaction
TIGHTLY AND CONTROLLED VALUE CHAIN DELIVERING SPEED, RELIABILITY AND CUSTOMER SATISFACTION FULL CONTROL OF SALES, STRONG INTERNAL KNOW-HOW MARKETING AND DISTRIBUTION SPEED TO MARKET TOTAL CONTROL DESIGN PLANNING HOMOLOGATION MARKETING SALES DISTRIBUTION VERTICALLY INTEGRATED Product Design and Engin
Slide 22: Update on Strategy
UPDATE ON STRATEGY
Slide 23: Our Locations in Different Continents
OUR LOCATIONS IN 3 DIFFERENT CONTINENTS 3 R&D AND 3 CUTTING-EDGE R&D 7 LOCATIONS 6 SHOW-ROOMS PRODUCTION CENTERS AND PRODUCTION CENTERS RONCO SCRIVIA ITALY SAKHIR BAHRAIN PISA ITALY 23
Slide 24: Main Investments to Support the Growth
MAIN INVESTMENTS TO SUPPORT THE GROWTH RACING FORCE IS EXPERIENCING SIGNIFICANT GROWTH, BOTH IN CORE BUSINESS AND IN DIVERSIFICATION PROJECTS. TO KEEP THE PACE AND CONTINUE TO INNOVATE RFG IS PLANNING INVESTMENTS IN A NEW PLANT AND IN INCREASING ITS OVERALL PRODUCTION CAPACITY MOORESVILLE: THE NEW P
Slide 25: 3 Clear Main Pillars for Further Growth
3 CLEAR MAIN PILLARS FOR FURTHER GROWTH SOLID GROWTH OPPORTUNITIES IN CORE MARKETS AND NEW TECHNOLOGY / HIGH PERFORMANCE SAFETY NICHES STRATEGY PILLARS 1 ORGANIC GROWTH IN CORE MARKETS.. 2 ...AND NEW NICHES 3 EXTERNAL GROWTH CONSTANT RESEARCH FOR POTENTIAL COMPANIES TO ACQUIRE IN ORDER TO CONSOLIDAT
Slide 26: Pillar - Organic Growth in Core Markets
PILLAR 1 - ORGANIC GROWTH IN CORE MARKETS CONSOLIDATING RACING FORCE’S LEADERSHIP IN LESS PENETRATED GEOGRAPHIES AND PRODUCT SEGMENTS AMERICAS OPEN FACE HELMETS 5 GlobalSales in USA +46,7% in 1H22 vs 1H21 Open Face +143% in 1H22 vs 1H21 Brad Kselowski becomes the first NASCAR driver to wear OM
Slide 27: Consolidating Leadership in Lower Penetrated Geographies - Americas
CONSOLIDATING LEADERSHIP IN LOWER PENETRATED GEOGRAPHIES - AMERICAS MAXIMISING COMMERCIAL & DISTRIBUTION EFFORT ACROSS BRANDS US MOTORSPORT SAFETY DEVICES US branch founded in 2003 US branch founded in 2010 Headquarter in Miami, FL Headquarter in Champaign, IL Player 1 Player 2 Racing Force Player 3
Slide 28: Consolidating Leadership in Lower Penetrated Product Segments
CONSOLIDATING LEADERSHIP IN LOWER PENETRATED PRODUCT SEGMENTS OPEN FACE HELMETS A ONE-STOP-SHOP OFFERING DEALERS AND DISTRIBUTORS MARKET SIZE 1 CIRCUIT COMPETITION vs 3 RALLY COMPETITION 1 DRIVER vsV 2 DRIVER PROFESSIONAL TEAMS MARKET POSITION IN 2020 RACING FORCE MARKET RALLY HELMETS MARKET SHARE S
Slide 29: Pillar - Growth in New Niches: Driver's Eye
PILLAR 2 - GROWTH IN NEW NICHES DRIVER’S EYE CUTTING-EDGE TECHNOLOGY KEY UPDATES FEEDING LIVE TY FROM BEHIND THE VISOR SCREEN Racing Force Group signs Driver’s Eye agreement with Formula1 WORLDS SMALLEST/LIGHTEST CAMERA Racing Force Group signs multiyear FOR LIVE TV BROADCASTING Driver’s Eye agreeme
Slide 30: Pillar - Growth in New Niches: Jet Pilot Helmet
PILLAR 2 - GROWTH IN NEW NICHES ( Cont’d ) JET PILOT HELMET JET PILOT HELMETS ( TECHNICAL PARTNERSHIP WITH LIFT AIRBORNE ) LIFT - RFG Helmets, the choice of the US Air Force Kyle Kietzmann, Chief Commercial Officer of Racing Force USA, Inc. said ‘‘Racing Force is proud to participate as a technology p
Slide 31: Pillar - Growth in New Niches: Special Force and Riot Head Protection
PILLAR 2 - GROWTH IN NEW NICHES ( Cont’d ) SPECIAL FORCE AND POLICE RIOT HEAD PROTECTION SPECIAL FORCE HEAD PROTECTION KEY UPDATES NEXT MILESTONES The first samples have been produced and are now in the testing phase for the First Certification and prototypes of SPF helmets and Riot helmets are expe
Slide 32: Pillar - External Growth Through M&A
PILLAR 3 – EXTERNAL GROWTH THROUGH M&A STRENGTHENED TECHNOLOGICAL CAPABILITIES NOT YET TECHNOLOGY AVAILABLE IN RACING FORCE CURRENT OFFERING BROADEN GEOGRAPHICAL DIVERSIFICATION EXPANDING IN NEW MARKETS DIVERSITY EXPANDING PRODUCTS OFFERING DIVERSIFY AND EXPAND THE CUSTOMER BASE ACQUIRE AND RETAIN H
Slide 33: Economic and Financial Data
2021 ECONOMIC AND FINANCIAL DATA
Slide 34: 2021 at a Glance
2021 AT A GLANCE SALES ADJ. EBITDA1 ADJ. NET INCOME 1 € 46.7m € 9.0m € 4.9m +38.4% vs 2020 +19.2% EBITDA Margin +10.6% NI Margin +14.2% 2014-2021 CAGR +67.0% vs 2020 +242.9% vs 2020 ADJ. CASH FLOW 1 NET DEBT DIVIDEND € 5.5m ~€ 1.0m € 1.7m +61.5% Cash Conversion 0.1x Leverage € 0.07ps vs € 2.4m in 20
Slide 35: 1H 2022
1H 2022
Slide 36: Consolidated P&L
CONSOLIDATED P&L Revenues (€m) and Growth (%) 1H 2022 Revenues Breakdown and Growth 1H2022 – 1H2021 Geographies 33.6 1H2020 – 1H2022 CAGR + 40.6% 27% EMEA AMER APAC +34.7% +33% +49% +14% 63% 10% 24.9 Segments +46.8% 2% DRIVER’S CAR 17.0 27% EQUIPMENT PARTS OTHER +40% +26% -2% 71% Channels 16% TEAM D
Slide 37: Consolidated P&L (cont'd)
CONSOLIDATED P&L (cont’d) EBITDA (€m) and Margin (%) NET INCOME (€m) and Margin (%) 14.5% 24.0% 27.8% 4.5% 14.4% 20.7% 9.3 6.9 6.0 3.6 2.5 0.8 1H20 1H21 1H22 1H20 1H21 1H22 The increase of EBITDA is due to i) higher gross margin, mainly due to a different Net income increased by 3.3 ml Euro compared
Slide 38: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET CAPEX (€m) NET WORKING CAPITAL (€m) 12.6 17.1 4.0 10.0 0.9 Acquisition of 7.7 11.0 Ronco Scrivia HQ 8.9 for €3.0m 11.6 14.7 16.0 (8.5) (10.7) (9.3) 1.0 (2.0) (0.4) 0.5 1H21 2021 1H22 1H20 1H21 1H22 Inventory Trade Receivables Trade Payables Other Receivables and Payables C
Slide 39: RFG's ECM Path
RFG’s ECM PATH
Slide 40: RFG on Stock Exchange Markets
RFG on Stock Exchange Markets ISSUER Racing Force S.p.A. LISTING VENUE Euronext Growth Milan (RFG) and Euronext Growth Paris (ALRFG) Market cap of € 104.5 m MARKET CAP Share price € 4.40 OWNERSHIP 23.757.450 shares STRUCTURE SAYE (57.01%), GMP Investments Holding Limited (5.40%), Others (7.56%) Mark
Slide 41: Thank You
THANK YOU Racing Force Group Barabino & Partners Roberto Ferroggiaro Luigi Rossi & Paolo Bertuccio Stefania Bassi Giuseppe Fresa Investor Relations Media E-mail: s.bassi@barabino.it E-mail: g.fresa@barabino.it E-mail: ir@racingforce.com E-mail: media@racingforce.com mob: +39 335 6282667 mob: +39 348
Slide 42: RFG in Action
RFG in action Acronis “ ai. —
Slide 43: Appendix
APPENDIX
Slide 44: ESG Project - Key Goals
ESG PROJECT – KEY GOALS ON SEPTEMBER 10, 2021 RACING FORCE GROUP STARTED THE ESG PROJECT, WITH THE APPROVAL OF THE SUSTAINABILITY PLAN. ALL THE GOALS WILL BE RECAHED WITHIN 2023. SOCIAL RESPONSIBILITY Social cohesion The Group encourages youth employment and with an average age of 37 years old, comb
Racing Force — Investor Presentation (September 2022) on 6ix