Marzocchi Pompe S.p.a. · MIL:MARP
Marzocchi Pompe — H1 2021 Earnings Presentation
36 slides from Marzocchi Pompe's earnings presentation, Oct 5, 2021
Slide 1: 1H-2021 Results Presentation
1H-2021 RESULTS PRESENTATION 5 October 2021
Slide 2: 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 3: Agenda
Agenda Company at a Glance 1H 2021 Results & Outlook Achievements Market & Competitive Positioning Appendix Business Overview 3
Slide 4: Marzocchi Pompe at a Glance: market leader on a global basis
Marzocchi Pompe at a Glance: market leader on a global basis 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 ma
Slide 5: Shareholders & Top Management: full alignment of interest
Shareholders & Top Management: full aligment of interest TOP MANAGEMENT BOARD OF DIRECTORS SHAREHOLDERS Paolo MARZOCCHI Paolo MARZOCCHI Main Shareholder, Executive Chairman Free Float 23,19% Executive Chairman Carlo MARZOCCHI TABACCHI Vice Chairman Gabriele BONFIGLIOLI Crosar Capital SpA CEO 6,73% A
Slide 6: 1H 2021 Results
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Slide 7: 1H 2021 Results back to pre-Covid levels, fuelled by sustained growth
1H 2021 Results back to pre-Covid levels, fuelled by sustained growth NET SALES UP 28% AT EURO 19.9 MLN MAINLY DRIVEN BY CORE BUSINESS +34.5% THE CORE BUSINESS SALES REACHED EURO 15.6 MLN (+34.5%) BENEFITING FROM THE ECONOMIC RECOVERY TREND ALREADY VISIBLE IN 2H 2020, WHILE THE AUTOMOTIVE SALES ROS
Slide 8: Revenues up 28% to € 19.9 mln, EBITDA margin at all-time high 17.6%
Revenues up 28% to € 19.9 mln, EBITDA margin at all-time high 17.6% Sales Revenue and EBITDA (€m) • Revenues jumped to Euro 19.9 million in 1H-21, recording a healthy 28% growth thus fully recovering the pre-Covid levels +28% 19.9 • Growth was driven by the Core Business which topped Euro 15.6 milli
Slide 9: Core business topped 78% of revenues riding economic uprise
Core business topped 78% of revenues riding economic uprise Revenue Breakdown • Revenues by Core market segments (Sales 100% Network, Industrial and Mobile), accounting for nearly three quarters of Total Revenues, 80% reached Euro 15.6 million vs. Euro 11.6 million in 1H 2020 thanks to the economic
Slide 10: EBIT & Net Result back to Profit witnessing business model solidity
EBIT & Net Result back to Profit witnessing business model solidity EBIT Adjusted and Net Result (€m) • EBIT turned positive at Euro 1.4 million compared to a loss of €1.0 million at 30 June 1.9 2020, even though impacted by depreciation and amortisation 1.0 • Adjusted EBIT, calculated net of revalu
Slide 11: Net Financial Debt further down thanks to healthy cash generation
Net Financial Debt further down thanks to healthy cash generation 4 Net Financial Position Evolution (€m) 2 • Net Financial Debt further improved to Euro 8.5 million at 30 June 2021, down 0 from Euro 9.3 million at 31 December -2 2020, despite the physiological growth in -4 working capital linked to
Slide 12: Achievements
Achievements
Slide 13: 2021 Highlights & Outlook
2021 Highlights & Outlook 2021 SAW THE ACCELERATION OF ECONOMIC RECOVERY FROM THE COVID-19 PANDEMIA AT WORLD LEVEL, ALREADY STARTED IN 2H 2020: MARZOCCHI POMPE RECORDED VERY STRONG ORDERS IN ITS CORE BUSINESS, WHILE AUTOMOTIVE SALES GROWTH WAS PARTIALLY HALTED BY THE CHIP SHORTAGE COMING FROM THE
Slide 14: 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 15: Market & Competitive Positioning
Market & Competitive Positioning
Slide 16: 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 17: 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 18: 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 19: Product Quality & Performance
Leadership in external gear pumps market + Product Quality & Performance Source: Marzocchi Pompe SpA management estimates - - Product Customization/ Customer service + 19
Slide 20: Appendix
Appendix
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: Consolidated Profit & Loss
Consolidated Profit & Loss Eur 000 30-Jun-21 30-Jun-20 Sales Revenue 19.928 15.584 100% 100% WIP changes 2.053 397 Other revenues 829 528 PRODUCTION VALUE 22.810 16.509 Raw material consumption (5.329) (24,2%) (3.845) (24,1%) Service costs (6.094) (27,7%) (4.756) (29,8%) Costs for use of third-party
Slide 32: Consolidated Balance Sheet
Consolidated Balance Sheet Eur 000 30-giu-21 A) NET FIXED ASSETS 20.695 Intangible fixed assets 1.403 Tangible fixed assets 17.906 Financial Fixed assets 1.386 B) NET WORKING CAPITAL 8.474 Inventories 10.308 Advances from customers (63) Trade receivables 7.608 Other receivables 1.611 Trade payables
Slide 33: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement 30-Jun- 30-Jun-21 20 €/000 €/000 Operating profit [EBIT] 1.413 (963) Tax effect (204) 335 Change in funds (85) 220 Provisions and write-downs 2.464 2.224 Income cash-flow 3.588 1.816 Changes in working capital Inventories (2.635) (813) Trade receivables (1.197) 2.402
Slide 34: 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 35: 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 36: Contacts
CONTACTS Marzocchi Pompe S.p.A. ir@marzocchipompe.com Integrae SIM S.p.A. – Nominated Adviser Francesco D’Antonio francesco.dantonio@integraesim.it Luca Comi luca.comi@integraesim.it CDR Communication - Investor & Media Relations Paola Buratti, Investor Relations paola.buratti@cdr-communication.it M