Eurotech S.p.a. · MIL:ETH
Eurotech — Non-Deal Roadshow (July 2021)
20 slides from Eurotech's roadshow presentation, Jul 20, 2021
Slide 1: CEO Meets Investors
CEO Meets Investors Milan – July 20th & 21st, 2021
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: Paul Chawla, CEO
Paul Chawla CEO My Experience: Transforming complex strategies into sustainable growth roadmaps in international environments My Challenge: Scaling Eurotech combining organic growth and focused acquisitions 3
Slide 4: The journey we want to talk you through today
The journey we want to talk you through today … on the long run back to growth from mostly Customized HW to more Standard HW plus SW from any market vertical needing high reliability & ruggedization to 5 focused market verticals from volatile revenues to more re-occurring revenues from SW to sell mo
Slide 5: Eurotech Today
Eurotech Today What you have been seeing so far High Value & Low Volume Embedded Computers player with strong customization skills Visionary first mover into Edge Computers & Industrial IoT Solid customer base (long term relations) … but lumpy/bumpy revenues Top class technology… translating slowly
Slide 6: Our Essence
Our Essence: we connect Operational Technology (OT) with Information Technology (IT) through our Edge HW, Edge SW and our Integration Platform High performance computing Edge systems with GPU accelerators to AI run AI algorithms at the edge Datacenter-like server units deployed Edge at the edge for
Slide 7: Why we are different
Why we are different Solve the IT-OT conflict at the Edge with integrated HW/SW solutions Easy Southbound Plug&Play Connectivity towards field assets Easy Northbound Certified Connectivity towards cloud applications Cybersecurity certified Open Source Better Placed in Industry Analyst Reports 7
Slide 8: Why our differentiation matters
Why our differentiation matters: we solve the #1 roadblock of IoT deployments “IT-OT integration is the most challenging aspect of IoT deployments and Eurotech has created processes and solutions that simplify this process and ensure that their customers achieve expected low total cost of ownership
Slide 9: How we want to grow
How we want to grow Playing in markets with combination of higher size and higher CAGR in next 5 years Serving applications with higher and mild ruggedization needs Focusing on target verticals / applications where the IT-OT integration is valued more Creating growth organically and inorganically Le
Slide 10: The playground assessment entitles our vision to compete as leaders at the Edge
The playground assessment entitles our vision to compete as leaders at the Edge Strong Market Forces CAGR 20-25 14,8% Double digit growth trend 20,98 31B$ total TAM in 2025 Source: adapted from MEC, VDC, IoT Analytics 21B$ TAM in 2025 in target market verticals 10,53 2020 2025 (values in $ Billion)
Slide 11: Eurotech's product portfolio allow us to play in the fast growth product segments
Eurotech's product portfolio allow us to play in the fast growth product segments Boards & Systems ($Bln) IPCs ($Bln) Edge Gateways ($Bln) Embedded Boards, Modules and Boxed PC-based computing systems for Headless systems enabling multi- Systems industrial applications standard communication between
Slide 12: Edge Gateway market evolution: rugged and intelligent outpace
Edge Gateway market evolution: Rugged will outpace non-rugged | intelligent will outpace non-intelligent … and Eurotech Gateways are rugged and intelligent Edge Gateway market value by ruggedness Edge Gateway market value by smartness ($Bln, 2020-2025) ($Bln, 2020-2025) CAGR CAGR 4,5 4,5 ’20-’25 ’20
Slide 13: Market Accelerators to be levereged
Market Accelerators to be levereged Total EU Common themes included in the pillar in the USA “American Jobs Pillar UK “Build back better” Budget1 EU National Recovery Plan Plan” No specific mention, but: • Digitalization of the manufacturing process No specific mention, but:, • 40 $Bln for technolog
Slide 14: The verticals where we will focus (TAM 21B$ 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: Three routes to connect with end customers
Three routes to connect with end customers: the Partners Ecosystem will be paramount to growth Route 1 Route 2 Hyperscalers Route 3 Large System Integrators 15
Slide 16: Moving towards more re-occurring type of revenues
Moving towards more re-occurring type of revenues Custom Embedded HW Standard Edge HW and SW 16
Slide 17: Using M&A to accelerate our strategy implementation
Using M&A to accelerate our strategy implementation Accelerate vertical penetration Complement our portfolio Accelerate scaling Bring accretive revenues Add channels & distribution bandwidth 17
Slide 18: "Do Different" recap
“Do Different” recap Focus on 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 18
Slide 19: 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 20: Thank You!
Thank You! www.eurotech.com