Eurotech S.p.a. · MIL:ETH
Eurotech — STAR Conference (March 2022)
25 slides from Eurotech's conference presentation, March 2022
Slide 1: Company Introduction
Company Introduction March 2022
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Eurotech S.p.A. (or “Eurotech”) and has to be read in conjunction with its oral presentation. The information contained in this presentation does nor purport to be comprehensive. Neither Eurotech nor any of its officers, employees, advisers or agents
Slide 3: Eurotech's roots: Embedded Computers for Demanding Applications
Eurotech’s roots: Embedded Computers for Demanding Applications Custom | Rugged #3
Slide 4: Eurotech's mission is to connect Edge assets securely and simply and enable AI Computing
Eurotech’s mission is to connect Edge assets securely and simply and enable AI Computing in mission critical environments Simplify complexity Champion a secure Enable next generation of at the edge digitization of assets smart products Open-source Agnosticity Better Time To Market Minimum Risk Enabl
Slide 5: New benefits to potato farmers with precision agriculture
NEW BENEFITS TO POTATO FARMERS WITH PRECISION AGRICULTURE CUSTOMER REQUIREMENTS THE SOLUTION • Enable precise field performance assessment • Maximize yield while improving sustainability • Perform remote and predictive maintenance • Offer valuable data to the complete supply chain CONFIDENTIAL | INT
Slide 6: Intelligent data logging for train locomotives
INTELLIGENT DATA LOGGING FOR TRAIN LOCOMOTIVES CUSTOMER REQUIREMENTS THE SOLUTION • Securely collect data from locomotives • Publish data in customer’s private cloud in near real time • Aggregate data on the Edge for effective data transfer • Enable load measurement and preventive maintenance CONFID
Slide 7: IoT platform for globally deployed medical devices
IOT PLATFORM FOR GLOBALLY DEPLOYED MEDICAL DEVICES CUSTOMER REQUIREMENTS THE SOLUTION • Integrating with existing IT infrastructure with zero changes on products and applications • High level of cybersecurity and reliability • Advanced Edge computing performances CONFIDENTIAL | INTERNAL USE ONLY
Slide 8: Our Domain: the EDGE of Industrial IoT
Our Domain: the EDGE of Industrial IoT Easy Northbound Connection to Cloud Platforms Edge AI Open to Third-party AI Edge Server Edge Gateway Certified Cybersecurity Easy Southbound Connection to Assets #8
Slide 9: We are a Top Player in Industrial IoT
We are a Top Player in Industrial IoT with a distinctive offering of integrated Edge SW + HW 450+ 113 25 4 SW& HW Industry Analysts recognize & appreciate: TOP premium cybersecurity = less risk for customers easiness of use / implementation = low cost & low effort to market RELEVANT We are different
Slide 10: Our journey on the long run
Our journey on the long run 2021: Repositioning New strategy New organisation kick-off Order book back to solid growth 2022: Transitioning Strategy building blocks execution Embedded business sustaining growth Creating and closing healthy Edge IoT pipeline Close 1st M&A deal 2023: Transforming Edge
Slide 11: How we want to grow: FOCUS and LEVERAGE
How we want to grow: FOCUS and LEVERAGE Play in markets with combination of higher size and higher CAGR in next 5 years Serve mission critical type of applications with high and mild ruggedization needs Focus on verticals / applications where certified cutting-edge cybersecurity is valued more Creat
Slide 12: "Core" action items
“Core” action items Focus on What-we-do and Where-we-play Create bandwidth to enable our strategic growth imperatives Operationalize better our go to market Channels and front-line resources Drive a growth culture via a new Management Long Term Incentive Plan # 12
Slide 13: Leveraging on strong growing Edge Gateways, Edge AI and IoT Platforms
Leveraging on strong growing Edge Gateways, Edge AI and IoT Platforms Global market of Industrial IoT by product segment 21,9% 31,7% 18,8% (in US $Bn – 2020-2025) CAGR CAGR CAGR 6,0% 6,8% 3,5% CAGR CAGR CAGR 11,5 5,0 4,5 4,0 3,6 3,5 3,0 2,5 2,9 2,1 1,9 1,3 Boards & Systems IPCs Edge Servers IoT Plat
Slide 14: The verticals where we will focus (TAM 21B$ in 2025)
The 5 verticals where we will focus (TAM 21B$ in 2025) CAGR 20-25 CAGR 20-25 13,4% 14,8% 20,98 CAGR 20-25 CAGR 20-25 CAGR 20-25 CAGR 20-25 16,3% 16,9% 18,8% 13,4% 8,84 Source: adapted from MEC, VDC, IoT Analytics 10,53 4,71 4,12 3,44 2,31 2,27 2,19 1,57 1,09 0,96 2020 2025 2020 2025 2020 2025 2020 2
Slide 15: Go to market routes: the Partners Ecosystem will be paramount to growth
Go to market routes: the Partners Ecosystem will be paramount to growth Route 1 Route 2 Hyperscalers Route 3 Large System Integrators Route 4 Distributors # 15
Slide 16: Why Eurotech
Why Eurotech We have top class EDGE technology We are long term committed We aim at growing double digit … by leveraging secular trends and using M&A to accelerate With solid margins … because of our differentiation in high reliability & ruggedized applications and our innovation in Edge software Wi
Slide 17: Business Update
Lu - < a) ou ~ ” ” Lu = ” ~ a @EUROTECH
Slide 18: Recap 2021
Recap 2021 Tech Third year consecutively in Gartner Magic Quadrant for IoT Platforms Excellence One of the few to achieve both process & product Confirmed cybersecurity certifications IEC 62443-4-2 and IEC 62443-4-1 Backlog Order intake marked a +87% vs FY2020, showing a Growing clear trend inversio
Slide 19: Customer commitments for 2022 already @ 78M€
Customer commitments for 2022 already @ 78M€ +100% in opening book for 2022 vs opening book for 2021, up from +50% in Q3 Top 12 IoT design wins coming live: CAGR 30% for next 3 years volume of Gateways shipped in 2022 at +40% YoY SW revenues ramping up to 3.5M€ (50+% YoY) No revenues linked to Russi
Slide 20: 2021 Financial Highlights
“” - <c o — <c o < — < O z <x = LL. = N i) N @EUROTECH
Slide 21: Component shortage prevented 5.5% YoY growth
Component shortage prevented 5.5% YoY growth All values in € million 69.3 1.3 7.0 -2.3 IoT confirmed 15% increase YoY -5.2 63.1 proving resilience Headwind from components shortage dictated Embedded performance FY2020 FX IoT Embedded FY2021 # 21
Slide 22: Revenues breakdown by Geography
Revenues breakdown by Geography USA sustained by legacy business 6% 7% 23% 18% 32% 35% FY 2020 FY 2021 Japan with growing order intake in Q3 & Q4 only partially converted into revenues due to lack of components 36% 43% Europe affected by stop on autonomous cars business and waiting for IoT projects
Slide 23: EBITDA burdened by Gross Margin contraction
EBITDA burdened by Gross Margin contraction All values in € million 6.6 -0.5 -2.0 -3.7 -0.7 -0.3 -2.4 -2.7 EBITDA FX Volume PPV Net Opex EBITDA Non rec EBITDA FY2020 & MIX FY2021 ADJ Cost/rev FY2021 EBITDA affected by shortage and change in product mix, together with non-recurring costs Operational
Slide 24: Solid Balance Sheet
Net Capital Employed Solid Balance Sheet FY2020 €110M – FY2021 €119M All values in € million Non currents NWC Long-term FY2021 NFP Bridge assests Liabilities 102.0 101.0 FY’21 NFP bridge 15.8 10.4 -31.3 -25.1 118.9 110.4 NFP impacted by cash flow investment Positive generation of operational cash fl
Slide 25: Thank You!
Thank You! www.eurotech.com