Eurotech S.p.a. · MIL:ETH
Eurotech — Q3 2022 Earnings Presentation
22 slides from Eurotech's earnings presentation, Nov 1, 2022
Slide 1: 2022 nine months results
2022 nine months 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: Q3 financial highlights
Q3 financial highlights organic double-digit growth confirmed: 9 months revenues scoring +32.8% YoY, +26.8% net of forex effect 2M€ orders not delivered due to lack of components Gross Profit Margin improving 370bps in Q3 vs Q2, from 44.2% to 47.9%; +700bps vs Q1 good EBITDA in Q3 allowing to fully
Slide 4: Line of sight @ 87M€
line of sight order Backlog for the year allowing visibility @87M€ w/o InoNet InoNet adding 4-5M€ to FY22 revenues @87M€ Q4 still growing double digit YoY organically Q4 sales > Q3 sales GPM normalizing to “typical” level in Q4 #4
Slide 5: Business
@eurotech UNLEASHING THE POWER OF THE EDGE
Slide 6: Organisation evolution
business update 6 new hires joined Eurotech in Q3 9 new hires expected to join during Q4 organisation 2 key Corporate roles added to enhance evolution Supply Chain & Operations management going forward: Global Head of Operations Global Purchase Manager #6
Slide 7: InoNet synergies in progress
business update InoNet synergies in progreess #7
Slide 8: Creating plug & play Edge AI devices
creating plug & play Edge AI devices integrating complementary capabilities Already gone to 62443-4-2 market ! IPC EDGE SW STACK THIRD & PARTY AI CYBERSECURITY #8
Slide 9: CliCK: Climate Camera Kit first two projects won
CliCK Climate Camera Kit first two projects WON EARLY DETECTION OF WILDFIRES EARLY DETECTION OF FLOODING IN UNDERPASSES #9
Slide 10: TraCK: Transportation Camera Kit pilot project
TraCK Transportation Camera Kit PILOT PROJECT in progress SNOW BLOCKS AND ICED JUNCTION DETECTION ROAD HOLES AND HIGHWAY JOINT MISALIGNMENT LOCALIZATION #10
Slide 11: Growth initiative on autonomous driving
growth initiative on autonomous driving InoNet mid-range products complement our high-end offering #11
Slide 12: Upgrading edge AI offering with cybersecurity certification
upgrading edge AI offering with cybersecurity certification … not just certified gateways Q1 certified 2023 secure edge AI device 62443-4-1 62443-4-2 62443-4-2 62443-4-2 secure product certified certified secure development secure gateway for process gateway public transport & road vehicles #12
Slide 13: Financial update Q3 & nine months 2022
financial update Q3 & nine months 2022 #1 3
Slide 14: Q3 results giving a taste of Eurotech's potential
Q3 results giving a taste of Eurotech’s potential in improving supply chain conditions #revenues 25.1M€ 25.1 #Gross Profit Margin 47.8% 12.0 #EBITDA 12% 3.0 (net of one-off costs for M&A) Revenues GPM EBITDA adj All values in € million #14
Slide 15: Q3 GPM up again: 370bps vs Q2, 700bps vs Q1
Q3 GPM up again: 370bps vs Q2, 700bps vs Q1 standard PPVs plus shortage mitigation actions market unbalanced mix kicking-in plus mix improving #PPV mitigation actions done conditions Increase selling prices 50.0 48.9 Redesign some products % % 47.9 Plan purchasing on longer term / higher 44.2 45.1 4
Slide 16: Nine months revenues growing double digit
nine months revenues growing double digit #Growth driven by Embedded 10.9 business 2.0 2.9 59.8 #Edge IoT trend YoY 44.0 accelerated to 42% by InoNet contribution, organic growth 21% 9 months FX Delta Delta 9 months ’21 Edge IoT Embedded ’22 All values in € million #1 6
Slide 17: All areas growing, with a sprint of Japan
all areas growing, with a sprint of Japan breakdown by end-customer location, nine months figures #US sustained by solid trend on legacy business other other EU EU 5 8 % 18 % % 18 % #Japan boosted by strong business with semiconductor 2022 2021 equipment manufacturers 34 29 % % JP 43 % US JP 45 % US
Slide 18: EBITDA positive despite M&A costs and one-off opex
EBITDA positive despite M&A costs and one-off opex 6.5 -1.5 1.4 -2.0 - 1.1 - 1.6 -0.5 0.5 - 1.7 0.6 -0.9 1.5 - 3.1 EBITDA Non EBITDA ADJ FX Volume Mix & Net opex Net opex EBITDA ADJ Non EBITDA 9 months recurring 9 months shortage recurring one-off 9 months recurring 9 months 21 costs 21 for hiring 2
Slide 19: Balance sheet still solid after acquisition
balance sheet still solid after acquisition NFP impacted by InoNet acquisition and Net Capital Employed temporary increase in inventory to support production Non currents NWC Long-term assests Liabilities 1.4 101.0 6.2 19.2 11.6 10.4 All values in € million 110.4 108.3 -25.1 -22.3 -11.3 -4.0 15.7 -6
Slide 20: Unleashing the power of the edge
@eurotech UNLEASHING THE POWER OF THE EDGE
Slide 21: Key takeaways
key takeaways Solid double-digit growth InoNet integration on a good pace, on revenues YoY offering synergies already started Gross Profit Margin heading to Components shortage burden normal levels with full recovery easing, still watching out on in Q4 scenario evolution Order book for 2022 allows M
Slide 22: Thank you
@eurotech thank — yon —