Gvs S.p.a · MIL:GVS
Gvs — H1 2020 Earnings Presentation
33 slides from Gvs's earnings presentation, September 2020
Slide 1: GVS SPA September 2020
GVS SPA SEPTEMBER 2020 STRICTLY PRIVATE & CONFIDENTIAL
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation does not purport to be comprehensive and has not been independently verified by any independent third party. This presentation does not constitute a recommendation regarding the securities of the Company. This presentation does not contain an
Slide 3: Agenda
Agenda 1 H1 and FY 2020 Outlook 2 Company Presentation Appendix: Additional Materials This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than GVS, is severely forbidden.
Slide 4: Update on GVS and Business Environment
UPDATE ON GVS AND BUSINESS ENVIRONMENT H1 presented exceptional business opportunities for GVS, but also several operational challenges Workforce safety measures implemented globally since February, ahead of Government imposed requirements All manufacturing facilities have continued to be full
Slide 5: H1 2020 GVS Performance Highlights
H1 2020 GVS Performance Highlights Sales: 25% of growth on the previous year • Q2 reflected the impact of the actions put in place to face the business acceleration due to the Covid 19. • Trend FY2020 in line with guidance given in May. EBITDA: 37% of Adjusted EBITDA Margin on Sales • 31,5% of EBITD
Slide 6: 2020 Evolution of Sales
2020 EVOLUTION OF SALES TOTAL SALES H1 2020: 146,3 M€ In H1 2020, two of three GVS Divisions performed in line (even better) with the guidance. Health & Safety is growing in terms of relative wheight on the total business as well as the Healthcare & Lifesciences. Health & Safety Healthcare & Life Sc
Slide 7: Visibility on 2020 Performance
VISIBILITY ON 2020 PERFORMANCE H1 Results (€m) FY 2020 Guidance (€m) Numbers are not considering the HC acquisition impact +25% +23-41% 146,3 280 - 320 Actual YoY % 116,7 +274% H&S 227,4 ~ 35-40% H&S 10% E&M -32% ~ 15-20% E&M 39% +16% HC & LS ~ 45-50% 51% HC & LS 1 2 H1 2019 H1 2020 FY 2019 FY 2020
Slide 8: Key Financial Highlights — EBITDA and EBIT
Key Financial Highlights — EBITDA and EBIT ADJUSTED EBITDA1 (€M) KEY COMMENTS Adjusted EBITDA: % on Sales • Adjusted EBITDA increased 90% in Q2 compared with Q1. • In H1 2020 adjusted EBITDA increased 71% vs. H1 2019. • Trend is in line with the Guidance 2020. ADJUSTED EBIT2 (€M) Adjusted EBIT: % on
Slide 9: Key Financial Highlights — Net Income, Fin. Exp. & Taxes
Key Financial Highlights — Net Income, Fin. Exp. & Taxes NET FINANCIAL EXPENSES EXCL. FX GAINS/LOSSES (€M) TAXES (€M) % on Sales % EBT ADJUSTED GROUP NET INCOME1 (€M) KEY COMMENTS % on Sales • Net Financial expenses is reducing in 2020 as a result of the NFP reduction. • Final effect of the effectiv
Slide 10: Key Financial Highlights — CapEx, TWC and R&D
Key Financial Highlights — CapEx, TWC and R&D CAPEX1 (€M) TRADE WORKING CAPITAL (€M) % on Sales % on Sales € 1.3 M inventory 1) € 2.2 M due Graphic acquisition from Controls acquisition Graphic Controls 2) € 7,3 M due to HC acquisition R&D2 (€M) KEY COMMENTS % on Sales • About 9,5 M€ as Capex relate
Slide 11: Key Financial Highlights — Net Financial Position
Key Financial Highlights — Net Financial Position NET FIN. INDEBTEDNESS (€M) AND CASH CONVERSION1 Cash 69.4% 74.3% 78.9% 73.0% conversion NFP / Adj EBITDA Ord. Net Cash in 26,5 26,5 Ext. Net Cash in 67,5 67,5 KEY COMMENTS NFP has decreased in the first half of 2020 down to 9,2 M€, 94M€ less than yea
Slide 12: H1 2020 GVS Closing Remarks
H1 2020 GVS Closing Remarks Operations • Factories suffered no shutdown (except for a c.10 days period in the Suzhou factory in China) • GVS ramped up production in existing factories and added 41 new production lines • About 1.000 new hires (70% temporary) and reallocation of people from E&M lines
Slide 13: Agenda
Agenda 1 H1 and FY 2020 Outlook 2 Company Presentation Appendix: Additional Materials This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than GVS, is severely forbidden.
Slide 14: Presentation
PRESENTATION FILTER TECHNOLOGY "ENERGY & aa 7 Soo"
Slide 15: Key People
Key People Massimo Mario Matteo Scagliarini Saccone Viola 35 years in GVS 23 years in GVS 11 years in GVS CEO CFO COO • MBA from Profingest Management • In GVS since 2008, started as • In GVS since 1985, started as Sales School, Bologna, Italy controller and currently serves as Manager and currently
Slide 16: GVS provides advanced filtration solution for critical applications
GVS provides advanced filtration solution for critical application in Highly-regulated end markets Our TECHNOLOGY supports LIFE and guarantees SAFETY in the most CRITICAL ENVIRONMENTS This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this d
Slide 17: GVS economic and production improvement over the last years
GVS economic and production improvement over the last 40 years 1979 1984 1989 1994 1999 2004 2009 2012 2015 2018 2019 This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than G
Slide 18: The Head Office and manufacturing facilities are based in Italy
The Head Office and 3 manufacturing facilities are based in Italy This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than GVS, is severely forbidden.
Slide 19: GVS has production facilities in several worldwide locations
GVS has 13 production facilities, in several worldwide locations. UK (1 plant) Romania Italy (1 plant) US (3 plants) (4 plants) China (2 plants) Mexico (1 plant) Brazil (1 plant) Presence with production plants Commercial presence Indirect sales This document and all its contents are property of GVS
Slide 20: Core Competences
GVS evolved from a small healthcare components supplier into a global diversified filtration group Solutions Focus Biology Product CORE COMPETENCES Focus Chemistry Chemistry Process Focus Automation Automation Automation 1979 ’90-’00 2012 Today Origin in healthcare Development and international Main
Slide 21: 14 M&A Transactions Since 2009
14 M&A TRANSACTIONS SINCE 2009 Adding capabilities and strengthening presence across China, the UK and North America Haemonetics Nypro M. BU Puerto Rico LLC Healthcare Filtration Graphic Nhion Nypro Germa Controls Sales licenses in Japan Medical Remploy Laboratory Filtration Filtration EPA Personal
Slide 22: Divisions and Products Line
Divisions and Products Line Healthcare & Life Sciences Health & Safety Energy & Mobility Healthcare & Liquid Personal Safety Powertrain & Drivetrain IV Vent Fuel pressure Flow Filters caps regulators Urea SCR filters Gasoline-diesel-urea Regulators Blood Transducer Disc filters PPE – Elipse fa
Slide 23: End Markets
Diversified blue-chip client base 2019A Revenues Division Breakdown1 (%) Illustrative example of companies requiring filtration solutions2 Healthcare Liquid and Healthcare 43% Healthcare Air & Life Sciences Laboratory 8% Personal Safety 6% End Markets Health & Safety Air Safety 4% Powertrain & Drive
Slide 24: Integrated and highly synergistic business model
GVS’s divisions differentiate for an integrated and highly synergistic business model Healthcare & Healthcare Energy & Life Sciences & Safety Mobility » Sales and Distribution » Similar stringent approval processes » Common Manufacturing processes and technologies » High quality standards required »
Slide 25: Strong focus on innovation and customer satisfaction
Our success is based on strong focus on innovation and customer satisfaction 7 ~8% 52 105 ~80 R&D centers with chemical and biological Of sales Patents for proprietary Highly skilled R&D External quality audits know-how in R&D products professionals p.a. International quality certificates Preferred
Slide 26: Quality Certification
Quality Certification GVS has obtained several Quality Certification, from several Certifiation Body • This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than GVS, is severely
Slide 27: An ESG-compliant organization
An ESG-compliant organization ENVIRONMENTAL SOCIAL GOVERNANCE 1 2 3 • UNI EN ISO 14001 certification • Support of a range local charitable • Ethics Code for Environmental Management and non-profit organizations • Board of Statutory System (EMS) achieved by the • In recent years, in lieu of Christmas
Slide 28: Agenda
Agenda 1 H1 and FY 2020 Outlook 2 Company Overview Appendix: Additional Materials This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than GVS, is severely forbidden.
Slide 29: Key Financial Highlights — Income Statement
Key Financial Highlights — Income Statement YTD 30/06 (€m) H1 2019A H1 2020A Var. % Healthcare & Life Sciences 58,4 68,0 16% Growth % Energy & Mobility 45,6 30,9 -32% Growth % Health & Safety 12,7 47,4 274% Growth % Revenues from contracts with customers 116,7 146,3 25% Other Income 1,2 0,7 Total Re
Slide 30: Key Financial Highlights — Adjustments Overview
Key Financial Highlights — Adjustments Overview YTD 30/06 (€m) H1 2019A H1 2020A EBITDA 31,8 49,7 Start-up costs 0,1 - Write-off of tax receivables 0,1 - Non recurring costs Personnel reorganization costs 0,1 0,2 (income) Transaction costs - 0,3 IPO costs - 5,0 Adjusted EBITDA 32,2 55,1 Margin (%) 2
Slide 31: Key Financial Highlights — Balance Sheet
Key Financial Highlights — Balance Sheet YTD 30/06 (€m) H1 2019A H1 2020A Property Plant & Equipment 51,0 62,5 Intangible Assets 100,2 98,8 Right of use 6,4 9,4 Financial Fixed Assets 0,3 0,4 Net Fixed Assets 157,9 171,2 Inventories 36,4 44,0 Trade Receivables 42,5 47,8 Trade Payables (17,1) (33,4)
Slide 32: Key Financial Highlights — Cash Flow Statement
Key Financial Highlights — Cash Flow Statement YTD 30/06 (€m) H1 2020A Adjusted EBITDA 55,1 Taxes (8,9) Δ Net Working Capital 4,6 Net Capex (incl. Financial assets) (25,3) Operating Cash Flow 25,5 Net financial results (4,6) Extraordinary items (5,5) Δ Funds and provisions - Δ Equity 78,4 Change in
Slide 33: Basis of preparation of financials
Basis of preparation of financials • Financial Overview slides present consolidated and division financial information of GVS S.p.A. and its reporting units • The financial information has been prepared in accordance to IFRS • Due to rounding, numbers expressed in millions throughout this section ma