Eurotech S.p.a. · MIL:ETH
Eurotech — Non-Deal Roadshow (May 2006)
48 slides from Eurotech's roadshow presentation, May 26, 2006
Slide 1: Investors Presentation USA
Digital Technologies for a Better World INVESTORS PRESENTATION USA 22/26 MAGGIO
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: Speakers
SPEAKERS ROBERTO SIAGRI President and Chief Executive Officer MASSIMO MAURI Executive Vice President and Investors Relator 3
Slide 4: Agenda
AGENDA STOCK HISTORY & PERFORMANCE GROUP OVERVIEW INVESTMENT CASE FINANCIALS MARKETS SIZE CONCLUSION 4
Slide 5: Why the IPO & why go public?
WHY THE IPO & WHY GO PUBLIC ? RAISE CAPITAL TO FUND FUTURE GROWTH ENHANCE BRAND VISIBILITY ON THE NATIONAL GO PUBLIC AND INTERNATIONAL MARKETS INCREASE THE GROUP’S STRENGTH AND COMPETITIVENESS ATTRACT VALUABLE HUMAN RESOURCES STRONG STABLE SUSTAINABLE 5
Slide 6: Stock History
STOCK HISTORY IPO Size 7,45 million primary shares Price IPO € 3,40 per share Raised Capital € 22,3 million including IPO Fees and Costs Outstanding Shares 18,6 million Free-Float Shares Aprox. 58% of outstanding shares Listing Italian Stock Exchange – STAR 6
Slide 7: Stock History
STOCK HISTORY Management ownership Approx 37% Friulia (Ist. Inv.) owners. Approx. 5% Lock-up One year for the Management and for Friulia First Price (30.11.2005) € 3,84 30 day Average Price ~ € 12,80 Average Volumes 1.4 Milion/day 7
Slide 8: Agenda
AGENDA STOCK HISTORY & PERFORMANCE GROUP OVERVIEW INVESTMENT CASE FINANCIALS MARKETS SIZE CONCLUSION 8
Slide 9: Group's Structure
GROUP’S STRUCTURE Associated Companies 24,8% Emilab srl Emilab 18,2% Eurotech Eurotech Spa Spa Inasset srl Inasset 40% Delos srl Delos 99,9% 80% 63,6% 100% 100% 100% 100% 100% EthLab EthLab Srl Srl IPS IPS Srl Srl Neuricam Neuricam Spa Spa Erim Erim Dev. Dev. sas sas Arcom Arcom Ltd Ltd Eurotech Eur
Slide 10: Eurotech: International Presence
EUROTECH : INTERNATIONAL PRESENCE Germany Finland 1 5 USA 29 China U.K 67 3 USA 54 France 14 Italy 80 10
Slide 11: Products & Markets
PRODUCTS & MARKETS DEFENCE TRANSPORTATION MEDICAL INDUSTRIAL HPC MARKET MARKET MARKET MARKET MARKET Custom HPC Multi Function Train cockpit Human Machine Display Interface Airborne Computer WAN Optimization AVL-AVM Computer Modules Vision Systems & Sensors Standard HPC Advanced Traffic Vehicular Com
Slide 12: Eurotech Breakdown Revenues 2005
Eurotech – Breakdown Revenues 2005 2005 Revenues: 68,3M US $ (53.4 M €) Revenues by Product Revenues by Geographical Area Revenues by End Market Research Defence USA ROW Inst. 14% 41% 7% 11% Nano PC 89% Transport 16% HPC Italy 11% 25% Medical 3% UK 11% Industrial Eu Cont. 56% 16% Total Total == 53.4
Slide 13: The Vision: Digital Technologies for a Better World
THE VISION: Digital Technologies for a better World “ The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it ” Mark Weiser "The Computer for the 21st Century", Scientific American - Vol. 265 No.9, pp. 6
Slide 14: Mission
Mission: a “factory of ideas” with attention to future scenarios THAT: ¾ Anticipates market demand by developing leading-edge solutions which enable new service classes ¾ providing a competitive advantage to customers …and ¾ reducing their time to market ¾ Integrates state of the art C&C technologie
Slide 15: Action plan to pursue the Mission
Action plan to pursue the Mission from a visibile technology to an invisible technology from Boards to Systems and from Systems to Ready2Use Products 15
Slide 16: Main Clients
MAIN CLIENTS NanoPC Alstom Ansaldo (Finmeccanica) TRANSPORTATION Bombardier MARKET Elsag (Finmeccanica) BAE Systems Boeing Galileo Avionica (Finmeccanica) L3 Communication DEFENCE Lockheed MARKET MBDA Rockwell Thales Gendex LMA MEDICAL Varian MARKET Imaje Chevron-Texaco INDUSTRIAL Applied Material M
Slide 17: Group Management
GROUP MANAGEMENT Strategy & Business Development President & CEO Industrial Operations & Roberto Siagri Information Systems Vice President Vice President Dino Feragotto Massimo Mauri Investor Relations Research & Quality Finance Giampietro Tecchiolli Marco Polo Eros Goi Communication CTO CFO ETH Lab
Slide 18: Agenda
AGENDA STOCK HISTORY & PERFORMANCE GROUP OVERVIEW INVESTMENT CASE FINANCIALS MARKETS SIZE CONCLUSION 18
Slide 19: A Story of Growth and Success
A STORY OF GROWTH AND SUCCESS 1992-1994: THE ORIGINS .000 € COMPANY GROWTH 100.000 ¾ 1992: foundation of Eurotech 29.800 ¾ 1993-94: first family of PC/104 Embedded PC modules 10.000 50% GR 1995-2000: FROM LABORATORY TO INDUSTRY r CA – yea 13 ¾ 1997: first high-performance compactPCI CPU Board 1.000
Slide 20: A Business Model Propelled by Innovation
A BUSINESS MODEL propelled by INNOVATION Markets Tomorrow’s Customers Today’s Customers Marketing Strategic Planning Sales Trends Future Research Development Engineering Production Catalog & Custom Universities and Research Centres Technology push Market pull 20
Slide 21: Eurotech: The Innovation Model
EUROTECH: THE INNOVATION MODEL High End DEVELOPMENT Market absorption capacity Low End Products’ Performance HP C s gie High End o nol ch Market te absorption PC capacity PC C ies Nano NanoP Low End g lo no ch te e hon p STRATEGIC ile ob PLANNING m & A RESEARCH PD Inspired to Christensen’s innovatio
Slide 22: Eurotech: The Technological Evolution
EUROTECH: THE TECHNOLOGICAL EVOLUTION HP C Products’ Performance s ie l og hno t ec PC PC C Nano NanoP gies Custom HPC lo no s Standard HPC (PC based) ch ie te lo g e Embedded-PC (CompactPCI) on no p h ch ile te Embedded-PC (PC/104) ob ID m RF Wearable PC & A Sensor Networks PD Time ‘92 ‘97 ‘02 ‘05
Slide 23: Pervasive Computing & Grid: Future Scenarios
"PERVASIVE COMPUTING" & GRID : FUTURE SCENARIOS “ Someday soon, more than one million businesses will be connected to more than one billion HPC people by one trillion devices” “It's already beginning to happen … But we'll see even more tremendous growth when intelligence becomes embedded, when virtu
Slide 24: Pervasive Computing & Grid: Future Scenarios
"PERVASIVE COMPUTING" & GRID : FUTURE SCENARIOS “ Someday soon, more than one million businesses will be connected HPC to more than one billion people by one trillion devices” L.V. Gerstner NanoPC ID R G “It's already beginning to happen … But we'll see even more tremendous growth when intelligence
Slide 25: 3rd Technological Leap
3rd technological leap The era of pervasive computers GPS S NET R F ER W Tag PO inside Tag W LO inside & FID y: R lo g n o Tag GRID c h inside te tive u p Tag isr inside D 25
Slide 26: Research Links
RESEARCH LINKS STRATEGIC AGREEMENTS ¾Italian National Institute for Nuclear Physics (INFN) HPC (Supercomputer) ¾Institute for Scientific Research and Technology of Trento Pervasive Computer (SOC) ¾INDO/Italian Research Centre Pervasive Computing (GRID) ¾Omega Consortium HPC (GRID) RESEARCH AGREEMENT
Slide 27: Agenda
AGENDA STOCK HISTORY & PERFORMANCE GROUP OVERVIEW INVESTMENT CASE FINANCIALS MARKETS SIZE CONCLUSION 27
Slide 28: Revenues
REVENUES REVENUES, 31 March 2005-2006 (€/000) ALL ORGANIC GROWTH 8 .0 0 0 6.922 7.0 0 0 6 .0 0 0 +54% 5.0 0 0 4.495 4 .0 0 0 3 .0 0 0 2 .0 0 0 1.0 0 0 0 3 1 M AR '0 5 31 M AR '05 OT HER US EU R OPE 28
Slide 29: Revenues
REVENUES REVENUES, YTD 2003-2005 (€ mln) 29,9 30 +59% 25 20 18,8 EUROPE ALL ORGANIC +60% GROWTH 15 US 11,7 GROWTH OTHER 10 THROUGH ACQUISITIONS 10% ORGANIC 5 GROWTH 50% 0 2003 2004 2005 03/04 Italian GAAP, 05 IFRS 29
Slide 30: Eurotech + Arcom: Revenues
EUROTECH + ARCOM: REVENUES AGGREGATE REVENUES, YTD 2003-2005 (€ mln) 60 53,9 50 40 39,4 EUROTECH 24,0 GROUP 30,7 ARCOM 30 20,6 20 19,0 10 11,7 18,8 29,9 0 2003 2004 2005 30
Slide 31: Eurotech + Arcom: EBITDA
EUROTECH + ARCOM: EBITDA AGGREGATE EBITDA, YTD 2003-2005 5,99 (€ mln) 6 5 2,69 EUROTECH 4 GROUP 3,61 ARCOM 3 2,52 1,73 2 1,68 3,30 1 1,88 0,84 0 2003 2004 2005 31
Slide 32: Gross Profit Margin
GROSS PROFIT MARGIN GROSS PROFIT MARGIN, 31 March 2005-2006 (€/000) 3.643 4 .0 0 0 3 .50 0 3 .0 0 0 2.679 2 .50 0 52,6% 2 .0 0 0 59,6% 1.50 0 1.0 0 0 50 0 0 3 1 M AR '0 5 3 1 M AR '0 6 G R OSS M A R G I N 32
Slide 33: Gross Profit Margin
GROSS PROFIT MARGIN GROSS PROFIT MARGIN, YTD 2003-2005 5,91 10,16 15,29 € Mln 60% 50% 40% 30% 50% 54% 51% 20% 10% 0 2003 2004 2005 33
Slide 34: EBITDA
EBITDA EBITDA, 31 March 2005-2006 (€/000) 110 12 0 10 0 80 1,6% 60 40 20 0 3 1 M AR '0 5 3 1 M AR '0 6 (20) (40) -1,5% (60) (80) (66) EB IT D A 34
Slide 35: EBITDA & EBIT
EBITDA & EBIT EBITDA, YTD 2003-2005 4 0,84 1,88 3,30 € Mln 3 11,1% 2 10% 1 7,2% EBIT, YTD 2003-2005 2003 2004 2005 0,17 1,02 2,31 € Mln 3 2 7,7% 1 5,4% 1,4% 2003 2004 2005 35
Slide 36: Equity and Net Debt
EQUITY AND NET DEBT EQUITY AND NET DEBT, YTD 2003-2005 € Mln D/E –0,66x SHAREHOLDERS' EQUITY 30 32,99 CASH 20 NET DEBT 21,74 D/E 1,1X CASH D/E 1,0X 10 0 2003 2004 2005 EQUITY AND NET DEBT, 31 March 2005-2006 (€/000) 32.700 40.000 EQUITY D/E -0,4X SHAREHOLDERS' EQUITY 30.000 14.104 NET DEBT CASH 20.0
Slide 37: Agenda
AGENDA STOCK HISTORY & PERFORMANCE GROUP OVERVIEW INVESTMENT CASE FINANCIALS MARKETS SIZE CONCLUSION 37
Slide 38: Major Market Applications
Major Market Applications Public Safety Mass Transit Defense Utilities Aviation Health Care 38
Slide 39: Pervasive Computation: Devices' Hierarchy
PERVASIVE COMPUTATION: Devices’ Hierarchy Wearable Computers HPC Clusters Embedded & Mobile Computers HMI Computers Ind. Computers & Net App. Sensor Networks 39
Slide 40: Interoperable Global Network: a possible scenario
Interoperable Global Network: a possible scenario Net-App. HPC Fixed Station Emergency Net-App WPC Mobile Computers Net-App. Mobile Computers Transport Security Networks of Wireless Environment/Body Sensors 40
Slide 41: Embedded Boards & Systems: market size 2,5-3,5 B$
Embedded Boards & Systems : market size 2,5 – 3,5 B$ DEFENCE TRANSPORTATION INDUSTRIAL HEALTH CARE $ in Millions 1400,00 CAGR 7% 1200,00 1000,00 Industrial 800,00 Medical 600,00 Military/Aerospace Trasport/Others 400,00 200,00 0,00 2004 2005 2006 2007 2008 2009 Source: ETP 41
Slide 42: HPCs & Personal HPCs: market size
HPCs & Personal HPCs : market size 4 - 6 B$ UNIVERSITIES RESEARCH CENTERS INDUSTRIAL R&D DEPT. DEFENCE WW HPC Rev. by Price band 1600 CAGR 5% 1400 $25K -49K 1200 Biotech $50K -99K -genomic 1000 Rev($Mil) $100K-249K -proteomic 800 $250K-499K Nanotech $500K-999K 600 -catalysis $1.M-2.9M -structures 40
Slide 43: Wearable Computers: Market size 150-350 M$
Wearable Computers : Market size 150 – 350 M$ ENVIRONMENTAL MEASUREMENT HOMELAND SECURITY SURVEILANCE HEALTH CARE EMERGENCY RESCUES LOGISTICS Rev ($Mil) 400 350 CAGR 25% 300 250 “There is no reason anyone would 200 want a computer in their home.” 150 Ken Olsen President, Chairman and founder of Digi
Slide 44: Net App. for WAN Optimization: market size 250-600 M$
Net App. for WAN Optimization: market size 250-600 M$ Rev ($Mil.) 700 CAGR 19% 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 Source IDC 44
Slide 45: Agenda
AGENDA STOCK HISTORY & PERFORMANCE GROUP OVERVIEW INVESTMENT CASE FINANCIALS MARKETS SIZE CONCLUSION 45
Slide 46: A Clear Strategy and Consistent Delivery
A CLEAR STRATEGY … and CONSISTENT DELIVERY MAINTAINING OUR TECHNOLOGICAL LEADERSHIP Start of ETH-lab and signature of a ¾ in miniaturization ¾ a specific research structure: THROUGH LOIdimensions/low-power (small for a new Research Agreement consumption) Eth Lab with ITC-IRST with the approval and s
Slide 47: The New Challenges
The New Challenges … MAINTAINING OUR TECHNOLOGICAL LEADERSHIP RESEARCH ¾ Motes & Sensor Networks ¾ Cell-based Personal HPC for Industrial & Rugged applications RAPIDLY INCREASING GROUP DIMENSIONS ¾ New acquisitions to balance clients’ portfolio (Def., Trans., Ind., Med.) ¾To balance clients’ portfol
Slide 48: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION "There is one thing stronger than all the armies in the world: it is an idea whose time has come." "On résiste à l'invasion des armées; on ne résiste pas à l'invasion des idées.“ Victor Hugo, Paris 1877 48