Slide 1: 2023 first half results
2023 first half results INVESTORS LIVE STREAMING PRESEN TA TI ON
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: H1 2023 financial highlights
H1 2023 financial highlights Organic double-digit growth YoY confirmed +16.6% at constant exchange rates Gross Profit Margin net of InoNet close to aspired run-rate, +540 bps YoY 47.9% (w/o InoNet), 46.6% (with InoNet) EBITDA positive YoY swing from -1.6M€ in H1 ’22 to +2.7M€ in H1 ’23 Opex growing
Slide 4: Business update
@eurotech business update
Slide 5: Competitive advantage confirmed, once again
competitive advantage confirmed, once again our offering praised by analysts and recognized by professional users Eurotech rated “Hidden Champion” Voice of the customer: Eurotech in “Open digital platforms for secure recognized with top ranking in the zero-touch industrial IoT Professional User Rati
Slide 6: InoNet on a steady progress path
InoNet on a steady progress path gross margin up 400 bps YoY | sales synergies kicking-in # FY23 revenues on a growth path ca. 15% organic growth YoY #new wins on ADAS giving a better mix, to the benefit of GPM #GPM up ca. 400 bps in H1 thanks to a better mix, plus actions on prices vs customer / su
Slide 7: Gross Margin: old group back to 48% run-rate, InoNet improving vs 2022
Gross Margin: old group back to 48% run-rate, InoNet improving vs 2022 50.0% 48.9% 48.7% 47.7% 46.7% 47.9% 45.1% 47.9% 46.2% 46.9% 45.3% 44.2% 44.2% 42.0% 40.9% 39.5% 35.0% 34.3% GM old ETH GM InoNet GM total 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 CONFIDENTIAL | INTERNAL USE ONLY #7
Slide 8: Swing towards Edge AIoT is happening
swing towards Edge AIoT is happening revenues accelerating in integrated HW+SW for mission-critical Edge AIoT applications FY 2023 2021 2022 15% 23% ~35% Q1 @ 32% H1 @ 35% Edge AIoT Embedded #8
Slide 9: Pipeline for Edge AIoT in USA and Europe is growing QoQ
pipeline for Edge AIoT in USA + Europe is growing QoQ TOTAL PIPELINE UNWEIGHTED M€ 304.9 278.0 90% coming from 3 main company initiatives 221.0 for 2023: #grow in ADAS #grow in Edge AIoT with Hyperscalers #grow in Consolidated Edge Q4 Q1 Q2 22 23 23 All values in € million #9
Slide 10: Looking forward
industry characterized by: destocking following panic overstocking in 2021-22 Taiwanese peers facing destocking since June ’23 Industrial sector showing prolonged destocking, players signaling order intake down ca. 17-20% YoY looking forward reduction of inventories linked to high interest rates ove
Slide 11: Visibility on FY2023 > 90 M€
visibility on FY2023 line of sight improved above 90 M€ faster TTM of standard products allow us room for additional book-and-bill >90 M€ soft Q3 due to destocking both in US and Japan on embedded products Q4 >> Q3 confirming our history of year-end rush on revenues still residual shortage of few co
Slide 12: Financial update H1 2023
financial update H1 2023 #12 #12
Slide 13: H1 2023 growth driven by Edge AIoT
H1 2023 growth driven by Edge AIoT for the first time Edge AIoT grew more than Embedded 8.3 47.9 3.0 #Edge AIoT growing 34.7 2.6 more than Embedded -0.8 in old perimeter #InoNet accelerating Edge AIoT growth in EU H1 FX ETH ETH InoNet H1 22 Embedded Edge AIoT Edge AIoT 23 All values in € million #13
Slide 14: Breakdown by end-customer location
Europe pushed by InoNet consolidation breakdown by end-customer location other EU other #US still sustained by legacy business 6 3 % 16 % EU 37 #Europe boosted by strong growth on % % JP 26 H1 % H1 Edge AIoT and InoNet consolidation 34 2022 2023 #Japan recovering in Q2 from weak % JP 44 % US 33 star
Slide 15: EBITDA from negative to positive
EBITDA from negative to positive swing driven by GPM improvement YoY and operating leverage Of which €3.0M 1.932 coming from consolidation of InoNet 5.948 2.698 -3.584 -1.566 -31 -1.597 EBITDA H1 FX rate EBITDA 1H 22 Better Better GM Opex Net EBITDA H1 22 effect FX rate 06.23 volumes 23 #15
Slide 16: Balance sheet ruled by long tail of component shortage effects
balance sheet ruled by long tail of component shortage effects NFP (net debt) impacted by NWC NWC impacted by temporary imbalance between temporary increase payables and receivables 7.3 -14.4 -0.3 -0.1 23.2 -0.8 -0.7 19.9 -1.8 -0.9 -18.7 -3.6 FY FX Cashflow Cashflow Cashflow H1 FY FX Change in Chang
Slide 17: Key takeaways
@eurotech key takeaways UNLEASHING THE POWER OF THE EDG
Slide 18: Key takeaways
key takeaways Edge AIoT driving growth on InoNet integration on a good pace, revenues YoY for the first time sales synergies kicking-in & GPM improving YoY Good performance on GPM Long tail of component shortage approaching run-rate and effects impacting NWC, easing EBITDA positive towards year end
Slide 19: Thank you
thank you