Slide 1: 2021 Full Year Results
2021 Full Year Results INVESTORS LIVE STREAMING PRESENTATION
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: Our journey on the long run
Our journey on the long run 2021: Repositioning New strategy New organisation kick-off Order book back to solid growth 2022: Transitioning Strategy building blocks execution Embedded business sustaining growth Creating and closing healthy Edge IoT pipeline Close 1st M&A deal 2023: Transforming Edge
Slide 4: 2021 Financial Highlights
2021 Financial Highlights Growth trend confirmed in Q4: +15% YoY and +11% vs Q3, but full year still mid single digit down YoY 7M€ orders not delivered due to lack of materials Gross Margin affected by components shortage and a different product mix OPEX under control: delta YoY only +2% thanks to s
Slide 5: Recap 2021
Recap 2021 Tech Third year consecutively in Gartner Magic Quadrant for IoT Platforms Excellence One of the few to achieve both process & product Confirmed cybersecurity certifications IEC 62443-4-2 and IEC 62443-4-1 Backlog Order intake marked a +87% vs FY2020, showing a Growing clear trend inversio
Slide 6: Customer commitments for 2022 already @ 78M€
Customer commitments for 2022 already @ 78M€ +100% in opening book for 2022 vs opening book for 2021, up from +50% in Q3 Top 12 IoT design wins coming live: CAGR 30% for next 3 years volume of Gateways shipped in 2022 at +40% YoY SW revenues ramping up to 3.5M€ (50+% YoY) No revenues linked to Russi
Slide 7: Financial Update 2021
(2) EUROTECH FINANCIAL UPDATE 2021
Slide 8: Constant improvement on 2021 quarterly revenues
Constant improvement on 2021 quarterly revenues All values in € million Quarterly Revenues Trend YoY gap inversion (at constant exchange rates) 16% 52,6 6% Q1 Q2 43,9 17,2 Q3 Q4 13,9 12,9 -10% -31% Q1 Q2 Q3 Q4 Top line recovery progressed throughout the year, YoY gap pivoted throughout the quarters,
Slide 9: Component shortage prevented 5.5% YoY growth
Component shortage prevented 5.5% YoY growth All values in € million 69.3 1.3 7.0 -2.3 IoT confirmed 15% increase YoY -5.2 63.1 proving resilience Headwind from components shortage dictated Embedded performance FY2020 FX IoT Embedded FY2021 #9
Slide 10: Revenues breakdown by Geography
Revenues breakdown by Geography USA sustained by legacy business 6% 7% 23% 18% 32% 35% FY 2020 FY 2021 Japan with growing order intake in Q3 & Q4 only partially converted into revenues due to lack of components 36% 43% Europe affected by stop on autonomous cars business and waiting for IoT projects
Slide 11: EBITDA burdened by Gross Margin contraction
EBITDA burdened by Gross Margin contraction All values in € million 6.6 -0.5 -2.0 -3.7 -0.7 -0.3 -2.4 -2.7 EBITDA FX Volume PPV Net Opex EBITDA Non rec EBITDA FY2020 & MIX FY2021 ADJ Cost/rev FY2021 EBITDA affected by shortage and change in product mix, together with non-recurring costs Operational
Slide 12: Solid Balance Sheet
Net Capital Employed Solid Balance Sheet FY2020 €110M – FY2021 €119M All values in € million Non currents NWC Long-term FY2021 NFP Bridge assests Liabilities 102.0 101.0 FY’21 NFP bridge 15.8 10.4 -31.3 -25.1 118.9 110.4 NFP impacted by cash flow investment Positive generation of operational cash fl
Slide 13: Key Takeaways
(2) EUROTECH KEY TAKEAWAYS
Slide 14: Key Takeaways
Key Takeaways Upward trend confirmed in Q4, but slowed by components shortage Good order intake allowed to build solid 2022 backlog Strengthening of go-to-market organisation will progress throughout 2022 Headwind from components shortage will affect 2022 quarterly performance, but corrective measur