Marzocchi Pompe S.p.A. · MIL:MARP
Marzocchi Pompe — IPO Roadshow (2019)
33 slides from Marzocchi Pompe's IPO roadshow presentation, 2019
Slide 1: Investor Presentation
. |IMARZOCCHIPOMPE HIGH PRESSURE GEAR PUMPS INVESTOR PRESENTATION
Slide 2: Disclaimer
Disclaimer Privacy The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced with
Slide 3: Introduction to Management
Marzocchi Pompe: Introduction to Management Role Background Paolo MARZOCCHI Main Shareholder, Paolo Marzocchi, the son of one of the founders (Guglielmo Marzocchi), joined the company in the 1970s, and Executive Chairman assumed the leadership in the 1990s, with his cousin Adriano (son of the founde
Slide 4: Agenda: Executive Summary
❑ Executive Summary ❑ Business Overview ❑ Historical Financials 2016-2018 ❑ Use of Proceeds and Investment Highlights ❑ Deal structure ❑ Annex 4
Slide 5: Marzocchi Pompe at a glance
Marzocchi Pompe at a glance Marzocchi Pompe is specialized in the design, production and marketing of high performance external gear pumps and motors, which are Company used in various sectors: industrial (textile machines, machine tools, plastic injection machines, medical equipment, energy, etc.),
Slide 6: History
History Main operative milestones Start-up of large-scale production of the Elika pump, an innovative product with low noise and high Construction of a efficiency standard, even at low production unit in Ostellato rotation speed. (FE) with investments of Signing of a multi-year agreement over € 15m
Slide 7: Ownership and governance
Ownership and governance Ownership and control of the Company are currently held by the Marzocchi Family, the managers of the Company and Crosar Capital (advisor). The Company controls two foreign companies (Marzocchi Pumps in Chicago, USA, and Marzocchi Shanghai Trading, China) which operate as com
Slide 8: Organizational structure and production sites
Organizational structure and production sites • Marzocchi Pompe can count on a team of professionals with consolidated experience. As of 31 December 2018 the workforce consists of 255 resources (of which 237 are permanent employees), with a heterogeneous background of professional skills that streng
Slide 9: Agenda: Business Overview
❑ Executive Summary ❑ Business Overview ❑ Historical Financials 2016-2018 ❑ Use of Proceeds and Investment Highlights ❑ Deal structure ❑ Annex 9
Slide 10: MP core business: manufacturing of external gear pumps and motors
MP core business: manufacturing of external gear pumps and motors • The pumps have the function of transferring the fluid from a tank to an actuator within an oil-hydraulic circuit. (for example a cylinder that drives the shovel of an excavator). This transfer from the suction circuit to the deliver
Slide 11: Overview of pump composition and application examples
Overview of pump composition and application examples • The pumps are composed of the following main parts: body, flange, cover and bushings in aluminium, and gears (driving and driven wheel) in steel. For some types of products, the flange and the cover can be made out of cast iron. Further compone
Slide 12: Product applications
Product applications Medical equipment Gardening machines Actuators for surgical tables, diagnostic equipment, latest- In this type of application it is essential that oil-hydraulic pumps generation stretchers, dental chairs: in general, for small medical and motors guarantee the complete absence of
Slide 13: Technological innovation and quality standards
Technological innovation and quality standards The Group's business model is focused on the design, production and marketing of high performance external gear pumps and motors. The Company manufactures almost all the main components within its own production sites and uses the historical brand “Marz
Slide 14: Target markets
Target markets Core market’s revenues include Industrial and Mobile machines applications and represent 68,7% of total 2018 revenues, including sales to distributors /sales network, which alone contribute to 37,4% of MP’s total sales(*) FLUID POWER Core Automotive Industrial Mobile Machines Possible
Slide 15: Main clients composition
Main clients composition • The company benefits from a diversified client base for the Industrial and Mobile machine sectors, having their top 3 clients making up only 16,6% of sales and the top 10 representing 31,1%. The Automotive sector, on the other hand, has fewer clients making up for most of
Slide 16: Global distribution network
Global distribution network Marzocchi Pompe relies on an international distribution network present in over 50 countries. Products are distributed through various channels, such as direct sales, distributors’ sales1, American branch operations and Chinese branch operations Distribution network’s hig
Slide 17: Fluid Power market and growth forecasts
Fluid Power market and growth forecasts The Fluid Power market is made up by the hydraulic segment and the pneumatic segment. In Asia, Europe and USA the Fluid Power home1 market went from Euro 25,7 billions in 2000, to around Euro 43,6 billions in 2017, of which Euro 31,2 billion (72%) stemming fro
Slide 18: Focus on hydraulic pumps' market
Focus on hydraulic pumps’ market Within the Hydraulic home1 market, the pumps’ segment is estimated by ISC to be around Euro 5,4 billion in 2017 (17%), of which Euro 3,2 billion (10%) coming from the reciprocating pumps’ segment (axial and radial piston pumps) and Euro 2,2 billion (7%) from the rota
Slide 19: Competitive positioning
Competitive positioning Characteristic Quality & Customer Ampiezza Ampiezza gamma pompe gamma Fluid Competitività Quality vs Customization prezzo Price Company Performance service a ingranaggi Power Marzocchi Pompe Bosch Rexroth Bucher Casappa Concentric Galtech/Interpump Hema / DB HPI / JTech Parke
Slide 20: Product Quality & Performance
Leadership in external gear pumps market + Product Quality & Performance Source: Marzocchi Pompe SpA management estimates - - Product Customization/ Customer service + 20
Slide 21: Agenda: Historical Financials
❑ Executive Summary ❑ Business Overview ❑ Historical financials 2015-2018 ❑ Use of Proceeds and Investment Highlights ❑ Deal structure ❑ Annex 21
Slide 22: Financial highlights (1/2)
Financial highlights (1/2) Evolution of revenues and EBITDA margin Market segment distribution of 2016-2018 revenues 60 25,0% 100% 100% 100% 21,4% 55 19,0% 20,0% 27,3% 35,2% 31,3% 50 17,6% 45 17,6% 42,7 13,1% 15,0% 40 38,6 34,2% Core 31,2% 37,3% 8,6% 10,0% 35 30,5 12,3% 30 11,1% 10,6% 5,0% 25 26,1%
Slide 23: Financial highlights (2/2)
Financial highlights (2/2) Net Financial Position Evolution Cash Flow breakdown (4,8) 19,2 (1,3) 1,1 (6,7) 10,8 7,0 8,4 14,4 4,2 13,1 -1,5 -0,9 4,4 2016 2017 2018 4,0 4,3 (6,3) (9,0) (9,4) 11,7 10,6 (0,5) 9,7 (0,6) (5,3) (0,6) (1,7) 2016 2017 2018 (6,5) Long term fin. debt Short term fin. debt Cash
Slide 24: Agenda: Use of Proceeds and Investment Highlights
❑ Executive Summary ❑ Business Overview ❑ Historical financials 2015-2018 ❑ Use of Proceeds and Investment Highlights ❑ Deal structure ❑ Attachments 24
Slide 25: Use of proceeds
Use of proceeds Marzocchi Pompe has a strong market positioning and know-how that allow the company to catch the investment opportunities of the sector. The financial resources for the IPO will be aimed to the following objectives: • Expansion and efficiency of production capacity through investment
Slide 26: Investment highlights
Investment highlights • The Hydraulic market is large, estimated to be around Euro 8,8 billions in 2016 just in Europe (Source: CETOP) and Large target market Euro 2,6 billion in 2017 in Italy (Source: Assofluid) experiencing growth • Evidence of upward trend of Italian hydraulic market in the 2009-
Slide 27: Agenda: Deal structure
❑ Executive Summary ❑ Business Overview ❑ Historical financials 2015-2018 ❑ Use of Proceeds and Investment Highlights ❑ Deal structure ❑ Annex 27
Slide 28: IPO
IPO DEAL STRUCTURE LIST OF PARTIES Capital increase Role Actors Issuer Issuer Marzocchi Pompe S.p.A. Nomad Deal structure Capital Increase Global Coordinator Financial Advisor Free Float Up to 25% of fully diluted share capital of issuer Legale Advisor Audit Firm Stock Market Milan – AIM/MAC Italia
Slide 29: Agenda: Annex
❑ Executive Summary ❑ Business Overview ❑ Historical financials 2015-2018 ❑ Use of Proceeds and Investment Highlights ❑ Deal structure ❑ Annex 29
Slide 30: Income Statement 2015 - 2018
Income Statement 2015 - 2018 Values in euro '000 * Income Statement 2015 2016 2017 2018 1. Core revenues amounted to Euro 42,7 million in 2018, increasing by 10,6% from 2017’s values. Compounded average growth rate in Net sales 28.554 30.496 38.638 42.719 1 Other revenues 1.694 1.188 728 1.528 perio
Slide 31: Balance Sheet 2015 - 2018
Balance Sheet 2015 - 2018 Values in euro '000 Balance Sheet 2015 2016 2017 2018 1. Tangible assets include: USES • Lands and Buildings for Euro 9,2 million, consisting of the Intangible assets 654 762 445 687 production plants of Casalecchio di Reno and Zola Pedrosa Tangible assets 14.110 20.379 22.
Slide 32: Cash Flow statement 2016 - 2018
Cash Flow statement 2016 - 2018 Values in euro '000 Cash flow statement 2016 2017 2018 1. Operating cash flow before NWC changes has grown in 2018, EBIT 1.097 2.907 3.858 compared to 2017, mainly due to the increase in turnover and to Tax effect 251 (364) (496) the consequent increase in EBITDA, and
Slide 33: Focus on LBO
Focus on LBO During 2018 the company underwent a restructuring procedure that modified the shareholding structure. As of today, the company is owned by Paolo Marzocchi. The operation was completed through the creation of a financial debt with Banca di Bologna, which allowed the release of some share