Comer Industries Spa · MIL:COM
Comer Industries Spa — Mid & Small Virtual Summer Conference 2020
32 slides from Comer Industries Spa's conference presentation, Aug 6, 2020
Slide 1: Mid & Small Virtual Summer Conference
Mid & Small Virtual Summer Conference 6th August 2020 COMER INDUSTRIES Property
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Comer Industries S.p.A (“Comer Industries”) for use during meetings with investors and financial analysts and is solely for information purposes. The information set out herein has not been verified by an independent audit company. Neither the Company no
Slide 3: Agenda
01 Comer Industries 05 Shareholders structure in a nutshell & Corporate Governance AGENDA 02 Business model 06 Appendix 03 Market and strategy 04 Key 1H20 financials COMER INDUSTRIES Property
Slide 4: 1. Comer Industries in a Nutshell
1. COMER INDUSTRIES IN A NUTSHELL COMER INDUSTRIES Property
Slide 5: Vision, Mission and Values
VISION, MISSION AND VALUES VISION Creating an easy world through sustainable food, streets, houses and energy. MISSION We run vertical innovative solutions for agriculture and industrial business. We boost our strong global leadership position. Aware of our roots and challenging in depth our identit
Slide 6: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY In 2019 Comer Industries has launched a new project: OUR BRIGHT IMPACT. An important responsibility towards the environment and the society. The courage to take on a strong commitment, starting from adherence to the Global Goals for the sustainable development. The am
Slide 7: Main Trends Yearly Historical Results
MAIN TRENDS YEARLY HISTORICAL RESULTS NET REVENUES EBITDA (adjusted) +22,5% 405 CAGR +6,7% +16,7% 45 17-19 Euro in millions YoY 39 YoY 379 +28,5% € in milions € in milions +10,8% 30 YoY YoY +8,8% 11,1% 342 CAGR 17-19 10,2% 8,8% 2017 2018 2019 2017 2018 2019 PEOPLE […]% represents EBITDA [adjusted] m
Slide 8: Main Trends Current Year Trading Results
MAIN TRENDS CURRENT YEAR TRANDING RESULTS NET REVENUES EBITDA (adjusted) 221 25 +8,4% YoY € in milions € in milions -13,2% +17,7% 204 -12,8% YoY YoY YoY 22 192 22 11,5% 11,6% 10,6% 1H18 1H19 1H20 1H18 1H19 1H20 […]% represents EBITDA [adjusted] margin PEOPLE ADJUSTED NET CASH/(DEBT) 1.400 +€9m 6 Ave
Slide 9: 2. Business Model
2. BUSINESS MODEL COMER INDUSTRIES Property
Slide 10: Where We Are in the Value Chain
WHERE WE ARE IN THE VALUE CHAIN Tier 1 Original Tier 2 raw supplier Equipment material Customers Manufactures suppliers (OEM) AGRI Farmers Oil & Gas Construction players INDUSTRIAL Mining OEM Construction Wind plants owners OEM Energy 10 COMER INDUSTRIES Property
Slide 11: Who We Are, What We Do & Our Main Customer
WHO WE ARE, WHAT WE DO & OUR MAIN CUSTOMER Comer Industries is a global player in mechatronic solutions and integrated systems for power transmission. Transmissions are designed to move or to bring power to the various parts of customer’s vehicles. OUR CUSTOMERS 11 COMER INDUSTRIES Property
Slide 12: Business Overview
BUSINESS OVERVIEW BUSINESS AREA PRODUCTS LINES REGIONS TECHNOLOGY STRUCTURE 23% NAM ✓ 10 legal entities; Gearboxes ✓ 6 trading AGRI companies; ✓ 7 production Planetary drives Mechanical areas; 53% (58% in 1H19) 23% APAC ✓ C. 1.300 employees. 100% Powertrain systems INDUSTRIAL 50% EU Hydraulic 0% 31%
Slide 13: 3. Market and Strategy
3. MARKET AND STRATEGY COMER INDUSTRIES Property
Slide 14: Food Security
FOOD SECURITY In 10 years the world may not be able to feed itself according to WEF, World Economic Forum. By 2027 the world could be facing a 214 trillion calorie deficit – in just a decade we won’t have enough food to feed the planet. By 2050, the world’s population is expected to reach 9.1 billio
Slide 15: Opportunity and Strategy Pillars
OPPORTUNITY AND STRATEGY PILLARS STRATEGY PILLARS ✓ Maintain leadership in the Agri Business ✓ Size growth driving economies of scale ✓ Increase margins ✓ Simplification and digitization 3+ €b 5+ €b 0.2 €b 15 COMER INDUSTRIES Property
Slide 16: Main Competitors by Market Segment
MAIN COMPETITORS BY MARKET SEGMENT BUSINESS AREA MAIN COMPETITORS AND INCUBANT COMPETITORS AGRI INDUSTRIAL (LISTED IN ITALY MTA) (LISTED IN US-NYSE) 16 COMER INDUSTRIES Property
Slide 17: 4. Key Financial
4. KEY FINANCIAL COMER INDUSTRIES Property
Slide 18: Key Consolidated Half Year Results
KEY CONSOLIDATED HALF YEAR RESULTS Var.% YoY Euro in millions 30June18 30June19 30June20 1H19 vs 18 1H20 vs 19 MAIN COMMENTS Net revenues 203,6 220,8 191,6 8,4% (13,2%) • 1H20 net revenues decreased by -13,2% vs EBITDA 21,5 26,9 21,4 24,8% (20,4%) 1H19, while adjusted EBITDA decline by - Margin 10,6
Slide 19: Revenues by Business Area
REVENUES BY BUSINESS AREA Var.% YoY Euro in millions 1H18 1H19 1H20 1H19 vs 18 1H20 vs 19 Net revenues 128,8 129,0 101,9 0,1% (21,0%) AGRI As % of tot. Group revenues 63,3% 58,4% 53,2% (4,8)p.p. (5,3)p.p. EBITDA [adjusted] 15,6 16,3 12,8 4,9% (21,4%) Margin 12,1% 12,7% 12,6% 0,6p.p. (0,1)p.p. EBIT 1
Slide 20: Revenues by Geography
REVENUES BY GEOGRAPHY -36% KEY COMMENTS YoY 1H20 +58% YoY 6,8 • The 1H20 sale performance (-€29m) 10,6 23,5 8,2 28,9 45,7 reflects the opposite trend of the growth in APAC (+€17m or +58% vs Half-year results 49,8 50,0 44,2 1H19) and the reduction in the other 1H19 -11% 1H20 areas (-€46m or -24%). 1H
Slide 21: TWC Evolution
TWC EVOLUTION Evolution of TWC 200,0 23,5% 24,3% 30,0% 21,8% 22,3% 21,0% 150,0 88,4 20,0% 93,0 85,5 84,6 85,6 100,0 10,0% 50,0 96,2 Euro m 69,5 77,4 77,3 80,5 0,0% - (80,6) (86,1) (77,7) (73,7) (10,0%) (50,0) (91,6) (100,0) (20,0%) (150,0) (30,0%) 31Dec17A 31Dec18A 30Jun19A 31Dec19A 30Jun20A Trade r
Slide 22: Net Debt/(Cash) Evolution
NET DEBT/(CASH) EVOLUTION Evolution of Net Debt / (cash) [adjusted] 50 40,7 40,7 40 36,7 36,7 36,8 29,1 30 Euro m 18,4 20 10,1 10 2,9 0 -10 (6,2) 31Dec17A 31Dec18A 30Jun19A 31Dec19A 30Jun20A Net Debt / (cash) [adjusted] Net Debt / (cash) KEY COMMENTS • At 30Jun2020 total credit lines available amoun
Slide 23: 5. Shareholders Structure & Corporate Governance
5. SHAREHOLDERS STRUCTURE & CORPORATE GOVERNANCE COMER INDUSTRIES Property
Slide 24: Shareholders' Structure
SHAREHOLDERS’ STRUCTURE SHARES AND RIGHTS % of share % of voting Lock up Lock up Nr. of shares capital rights shares duration 28,3% █ Eagles OAK S.r.l. 14.640.089 71,73% 71,73% 14.450.000 18/36 months (A) █ Market (*) 5.769.191 28,27% 28,27% 659.911 36 months (B) TOTAL ORDINARY SHARES 20.409.280 100
Slide 25: 2020-2021 Share Buyback Plan
2020-2021 SHARE BUYBACK PLAN APPROVAL • On 22nd April 2020, Comer Industries’ Shareholders’ meeting authorized the purchase and disposal of own shares. PURCHASE THRESHOLD • 10 % of the share capital; • Amount of distributable results of prior years and available reserves indicated in the latest avai
Slide 26: 6. Appendix
6. APPENDIX COMER INDUSTRIES Property
Slide 27: Product Lines and Applications
PRODUCT LINES AND APPLICATIONS PRODUCT LINES GEARBOXES PLANETARY DRIVES POWERTRAIN SYSTEMS WHEEL DRIVES DRIVESHAFTS APPLICATIONS TRACTORS MINING MACHINERY COMBINED COMBINED HARVESTERS & CONSTRUCTION EQUIPMENT HARVESTERS & SELF PROPELLED CRANES SELF PROPELLED MACHINES MACHINES TELEHANDLERS CONSTRUCTI
Slide 28: Examples of Agri Applications
EXAMPLES OF AGRI APPLICATIONS • Land preparation machines • Soil tillage machines • Crop treatment machines • Forage and hay AGRI machines • Biogas systems • Corn and grain headers • Combines and forage harvesters • Forage mixing and distribution machines • Tractors 28 COMER INDUSTRIES Property
Slide 29: Examples of Industrial Applications
EXAMPLES OF INDUSTRIAL APPLICATIONS INDUSTRIAL • Construction machines • Road construction machines • Forestry machines • Mining machines • Material handling Renewable Energy • Water treatment machines 29 COMER INDUSTRIES Property
Slide 30: Main Milestones from 1970 to Date
MAIN MILESTONES FROM 1970 TO DATE 1970: The Storchi family founds CO.ME.R. (Costruzioni Meccaniche Riduttori) specialized in the manufacture of mechanical transmissions for agricultural machinery. 1985: Subsidiaries are set up in France, Germany, Great Britain and the United States. 1985-1980: Comer
Slide 31: Group Structure
GROUP STRUCTURE Comer Industries SpA Reggiolo (RE) (Italy) (Head Quarter) Comer Industries Comer Industries Comer Industries UK Comer (Shaoxing) Co Ltd 100% 100% Components Srl Ltd 100% 100% GmbH Shaoxing (China) Matera (MT) (Italy) Leicester (UK) Schermbeck (Germany) (Sales Office) 65,8% Comer Indu
Slide 32: Thanks for your attention
Thanks for your attention COMER INDUSTRIES Property
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