Marzocchi Pompe S.p.a. · MIL:MARP
Marzocchi Pompe — FY2020 Earnings Presentation
39 slides from Marzocchi Pompe's earnings presentation, Apr 8, 2021
Slide 1: FY 2020 Results Presentation
FY 2020 Results Presentation Milan, April 8, 2021
Slide 2: Agenda
Agenda Company at a Glance FY 2020 Results Outlook Market & Competitive Positioning Appendix: Business Overview, History & Financials 2
Slide 3: Marzocchi Pompe at a Glance
Marzocchi Pompe at a Glance Marzocchi Pompe is a leading world player in the design, production and marketing of high performance external gear pumps and Company motors, which are used in sectors like: industrial (textile machines, machine tools, plastic injection machines, medical equipment, energy
Slide 4: Top Management & Shareholders
Top Management & Shareholders TOP MANAGEMENT BOARD OF DIRECTORS SHAREHOLDERS Paolo MARZOCCHI Paolo MARZOCCHI Main Shareholder, Executive Chairman Free Float 23,22% Executive Chairman Gabriele BONFIGLIOLI CEO Guido NARDI Crosar Capital SpA CFO, Executive Director 6,73% * Abbey Road S.r.l. (Paolo Vale
Slide 5: FY 2020 Results
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Slide 6: FY 2020 Results show strong growth in H2 back to pre-Covid levels
FY 2020 Results show strong growth in H2 back to pre-Covid levels NET SALES AT EURO 34 MLN (-12.8% YoY), WITH H2-2020 UP 19% VS. H1 STRONG GROWTH IN H2-2020 WAS DRIVEN BY AUTOMOTIVE SALES, UP 56% VS. H1 AND 40% VS. H2-2019, EMPOWERED BY THE INDUSTRIAL RECOVERY ESPECIALLY IN THE NORTH AMERICA MARKE
Slide 7: Net Sales at € 34m, EBITDA margin at 12.2% thanks to H2 recovery
Net Sales at € 34m, EBITDA margin at 12.2% thanks to H2 recovery Net Sales EBITDA 39.2 €/m €/m 5,4 34.1 4,1 -24% -13% 2019 2020 2019 2020 Net Sales were Euro 34 million in 2020, with a EBITDA margin was 12.2% vs. 14.4% in 2019, yet decrease of 12.8% YoY hit by the pandemic effects reflecting a two-s
Slide 8: Revenues and EBITDA Breakdown in H1 and H2 2020
Revenues and EBITDA Breakdown in H1 and H2 2020 Revenues EBITDA €/m €/m 16.1% Margin (%) 18,5 2,9 15,6 7.9% 1,2 +19.1% +127.6% H1-2020 H2-2020 H1-2020 H2-2020 Net Sales in H2 2020 jumped to Euro 18.5 million, EBITDA more than doubled in H2 2020 vs. H1, with a 19% increase vs. H1 2020, mainly thanks
Slide 9: Revenue Breakdown in H1 and H2 2020 by Market & Geographic Area
Revenue Breakdown in H1 and H2 2020 by Market & Geographic Area Revenues by Business Line Revenues by Geographic Area 8.291 €/000 6.211 6.215 €/000 5.622 3.985 3.839 5.075 3.557 4.099 3.992 4.034 3.633 2.580 2.139 2.568 2.278 99 80 Sales Network Automotive Industrial Mobile AMERICA EUROPE ITALY ASIA
Slide 10: Core market segments at 70% of revenues
Core market segments at 70% of revenues Revenue Breakdown • Revenues by Core market segments (Industrial, Mobile and Sales Network), slid to 24,9% 29,9% 70% in 2020 vs 75% in 2019, at Euro 24 million (-18%), after +6.4% sales growth in H2 16,6% 13,8% 24,6% 21,7% • Weight of Automotive segment rose t
Slide 11: EBIT at loss for € 1.1 mln, Net Income at € 0.2 mln
EBIT at loss for € 1.1 mln (€ 0.9 mln in H1), Net Income at € 0.2 mln • EBIT turned at loss for Euro 1.1 mln in FY EBIT and Net Income due to -€0.9 million in H1, hit by the effects of pandemic lockdowns throughout the world • Sales recovery coupled with ongoing 0,203 0,229 actions to improve operat
Slide 12: Net Financial Position significantly improved at € 9.3 mln
Net Financial Position significantly improved at € 9.3 mln NFP Evolution • Net Financial Position improved by 26% at year-end to Euro 9.3 million from Euro 12.5 million at end-2019, mainly thanks to the Company’s high cash generation capability (Euro 3.3 million net) • NFP also accounted for Capex o
Slide 13: 2020 Dividend proposal of € 6 cents / share
2020 Dividend proposal of € 6 cents / share ON 30TH MARCH 2021 MARZOCCHI POMPE BOARD OF DIRECTORS PROPOSED THE DISTRIBUTION OF AN ORDINARY DIVIDEND OF EURO 6 CENTS PER SHARE, FOR A TOTAL DIVIDEND AMOUNT OF EURO 392.325 TO BE COVERED BY EXTRAORDINARY RESERVE IF THE SHAREHOLDERS’ MEETING DUE ON 30
Slide 14: Outlook
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Slide 15: 2020 Highlights & Outlook
2020 Highlights & Outlook THE FIRST HALF OF 2020 WAS HEAVILY HIT BY SPREAD OF THE COVID-19 PANDEMIC: MARZOCCHI POMPE CONTINUED ITS PRODUCTION ON A REGULAR BASIS UNTIL 22ND MARCH, WHEN THE ITALIAN GOVERNMENT IMPOSED THE LOCKDOWN WHICH EXPIRED ON 13TH APRIL. IN AN EXTRAORDINARILY NEGATIVE GLOBAL S
Slide 16: Forecast for the Period 2021 – 2023
Forecast for the Period 2021 – 2023 SIGNIFICANT DEVELOPMENT OF TURNOVER WITH A CAGR OF 6-8% BY 2023, RESULTING FROM ORGANIC GROWTH, IN LINE WITH THE STRATEGIC GUIDELINES STATED IN THE IPO. – SALES GROWTH WILL BE DRIVEN BY THE FLAGSHIP PRODUCT ELIKA (SEE FOLLOWING SLIDE) AND THE CONSOLIDATION OF TH
Slide 17: Focus on ELIKA, Marzocchi Pompe top-performing pump
Focus on ELIKA, Marzocchi Pompe top-performing pump IN 2019 THE NEW ELIKA DEPARTMENT HAD BEEN COMPLETED WITH AN INVESTMENT OF MORE THAN 1 MILLION EUROS IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE'S FLAGSHIP PRODUCT CHARACTERIZED BY LOW NOISE & HIGH
Slide 18: Market & Competitive Positioning
Market & Competitive Positioning
Slide 19: Fluid Power market and growth forecasts
Fluid Power market and growth forecasts The Fluid Power market is made up by the hydraulic segment and the pneumatic segment. In Asia, Europe and USA the Fluid Power home1 market went from Euro 25,7 billions in 2000, to around Euro 43,6 billions in 2017, of which Euro 31,2 billion (72%) stemming fro
Slide 20: Focus on hydraulic pumps’ market
Focus on hydraulic pumps’ market Within the Hydraulic home1 market, the pumps’ segment is estimated by ISC to be around Euro 5,4 billion in 2017 (17%), of which Euro 3,2 billion (10%) coming from the reciprocating pumps’ segment (axial and radial piston pumps) and Euro 2,2 billion (7%) from the rota
Slide 21: Competitive positioning
Competitive positioning Characteristic Quality & Customer Gear Pumps Fluid Power Competitiveness Quality Range Customization vs Price vs Price Company Performance service Range Marzocchi Pompe Bosch Rexroth Bucher Casappa Concentric Galtech/Interpump Hema / DB HPI / JTech Parker Roquet Salami Turoll
Slide 22: Product Quality & Performance
Leadership in external gear pumps market + Product Quality & Performance Source: Marzocchi Pompe SpA management estimates - - Product Customization/ Customer service + 22
Slide 23: Appendix
Appendix
Slide 24: MP core business: manufacturing of external gear pumps and motors
MP core business: manufacturing of external gear pumps and motors • The pumps have the function of transferring the fluid from a tank to an actuator within an oil-hydraulic circuit. (for example a cylinder that drives the shovel of an excavator). This transfer from the suction circuit to the deliver
Slide 25: Overview of pump composition and application examples
Overview of pump composition and application examples The pumps are composed of the following main parts: body, flange, cover and bushings in aluminium, and gears (driving and driven wheel) in steel. For some types of products, the flange and the cover can be made out of cast iron. Further component
Slide 26: Product applications
Product applications Medical equipment Gardening machines Actuators for surgical tables, diagnostic equipment, latest- In this type of application it is essential that oil-hydraulic generation stretchers, dental chairs: in general, for small pumps and motors guarantee the complete absence of medical
Slide 27: Technological innovation and quality standards
Technological innovation and quality standards The Group's business model is focused on the design, production and marketing of high performance external gear pumps and motors. The Company manufactures almost all the main components within its own production sites and uses the historical brand “Marz
Slide 28: Target markets
Target markets Core market’s revenues include Industrial and Mobile machines applications and represent 70,1% of total 2020 revenues, including sales to distributors /sales network, which alone contribute to 34,7% of MP’s total sales(*) FLUID POWER Core Automotive Industrial Mobile Machines Possible
Slide 29: Main client composition
Main client composition • The company benefits from a diversified client base for the Industrial and Mobile machine sectors, having their top 3 clients making up only 11,3% of sales and the top 10 representing 26,9%. The Automotive sector, on the other hand, has fewer clients making up for most of i
Slide 30: Global distribution network
Global distribution network Marzocchi Pompe relies on an international distribution network present in over 50 countries. Products are distributed through various channels, such as direct sales, distributors’ sales1, American branch operations and Chinese branch operations Distribution network’s hig
Slide 31: Investment highlights
Investment highlights • The Hydraulic market is large, estimated to be around Euro 8.8 billions in 2016 in Europe (Source: CETOP) Large target market and Euro 2.6 billion in 2017 in Italy (Source: Assofluid) experiencing growth • Evidence of upward trend of Italian hydraulic market in the 2009-2017
Slide 32: Organizational structure and production sites
Organizational structure and production sites • Marzocchi Pompe can count on a team of professionals with consolidated experience. As of 1st January 2021 the workforce consists of 243 resources (of which 241 are permanent employees), with an heterogeneous background of professional skills that stren
Slide 33: History
History Main operative milestones Construction of a Start-up of large-scale production In November 2020, production unit in of the Elika pump, an innovative set-up of the joint- On 16th July 2019 listing on Ostellato (FE) with product with low noise and high venture "Marzocchi the AIM market, openin
Slide 34: Consolidated Profit & Loss
Consolidated Profit & Loss Eur 000 31-Dec-20 31-Dec-19 SALES REVENUEE 34.143 100% 39.171 100% WIP changes (307) (1.433) Revenue from production and sales 33.836 37.738 Other revenue 916 672 PRODUCTION VALUE 34.752 38.410 Raw materials consumption (7.931) (23,4%) (8.350) (22,1%) Service costs (9.621)
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet Eur 000 31-Dec-20 31-Dec-19 A) NET FIXED ASSETS 22.426 26.105 Intangible fixed assets 1.502 1.405 Tangible fixed assets 19.712 23.465 Financial fixed assets 1.212 1.236 B) NET WORKING CAPITAL 6.901 6.787 Inventories 7.673 8.119 Advances from customers (17) (23) Trade recei
Slide 36: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement 2020 2019 €/000 €/000 Operating profit [EBIT] (1.100) 1.012 Tax effect 1.863 239 Change in funds (1.295) 153 Provisions and write-downs 5.229 5.361 Income cash flow 4.697 6.765 Changes in working capital Inventories 446 1.192 Trade receivables 1.497 (1.627) Other rec
Slide 37: Focus on LBO
Focus on LBO During 2018 the company underwent a restructuring procedure that modified the shareholding structure. As of today, the company is owned by Paolo Marzocchi. The operation was completed through the creation of a financial debt with Banca di Bologna, which allowed the release of some share
Slide 38: Disclaimer
Disclaimer Privacy The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced with
Slide 39: CONTACTS
CONTACTS Marzocchi Pompe S.p.A. ir@marzocchipompe.com EnVent Capital Markets – Nominated Adviser Paolo Verna pverna@enventcapitalmarkets.co.uk CDR Communication - Investor & Media Relations Paola Buratti paola.buratti@cdr-communication.it Martina Zuccherini martina.zuccherini@cdr-communication.it 39