Slide 1: 2023 full year results
2023 full year results INVESTORS LIVE STREAMING PR ESEN TA TION
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: FY 2023 financial highlights
FY 2023 financial highlights Revenues flat YoY but Edge AIoT share growing to 41% +79% at constant exchange rates InoNet growing YoY on Revenues, GPM and EBITDA Rev +14.9%, GPM +520bps, EBITDA margin from 4.8% to 11.3% Gross Profit Margin @ 47.4% improving 240bps YoY w/o InoNet GPM @48.9% EBITDA mar
Slide 4: Business
@eurotech business
Slide 5: Normalised revenue tells an organic growth story
normalised revenue tells an organic growth story -12% +22% +41% Restatements: +15% PPVs 2021 Overstocking / Destocking Delayed deliveries 2022 2023 InoNet core = revenues as a stand- alone company InoNet organic growth driven by ETH counted as ETH core REPORTED EUROTECH CORE EUROTECH CORE W/O INONET
Slide 6: InoNet promises coming true, EBITDA growing 4x in 1 year
InoNet promises coming true ebitda growing 4x in 1 year #FY23 revenues +15% YoY organic growth #new wins on ADAS giving a better mix, to the benefit of GPM #GPM up ca. 520 bps YoY thanks to a better mix, plus actions on prices vs customers & suppliers coming to fruition #EBITDA margin @ 11% with goo
Slide 7: Company strategic pivoting is happening
company strategic pivoting is happening Edge AIoT surpassing Legacy Embedded in 2024 embedded boards & systems edge AIoT hw & sw 68.1 55.1 CAGR 49.7 70% 38.6 26.2 13.4 2021 2022 2023 2024 2021 2022 2023 2024 #7
Slide 8: Recap of FY23 journey business wise
recap of FY23 journey business wise hardware IEC certified Edge AI HW family AWS Greengrass + ESF = Everyware GreenEdge software Zero-Touch Provisioning (ZTP) AWS channels OT system integrators #8
Slide 9: Focus points FY24 business imperatives
focus points FY24 business imperatives accelerate edge AI (shorter time-to-market) in security, asset monitoring, end-of-line inspection, and automatic optical inspection applications round 2 of channel play: moving on to the next big partner, replicating AWS success keep momentum in ADAS: hot topic
Slide 10: Bumpy road ahead
bumpy road ahead Overstocking during component shortage followed by Destocking has accelerated the phase-out of legacy embedded business in US Japan affected by destocking but not phasing out from legacy embedded business We have taken the opportunity to cut OPEX linked to the legacy embedded busine
Slide 11: Financial update FY 2023
financial update FY 2023 #11 #11
Slide 12: 12 months growth driven by Edge AIoT
12 months growth driven by Edge AIoT transformation journey progressing with a steady pace 17.1 All values in € million #Edge AIoT 94.3 93.8 growing organically 20% -13.9 growing 79% in total -3.7 #InoNet accelerating Edge AIoT growth in EU #Legacy embedded business impacted by destocking FY FX Delt
Slide 13: Europe pushed by InoNet consolidation
Europe pushed by InoNet consolidation breakdown by end-customer location #US traditional embedded other other business impacted by destocking 5 EU 5 % 24 EU % #Europe boosted by strong % JP 41 28 % 30 % % FY FY growth on Edge AIoT and InoNet 2022 2023 consolidation JP 41 % 25 % #Japan facing some de
Slide 14: EBITDA margin in mid-single digit
EBITDA margin in mid-single digit GM improvement offset by opex increase linked to InoNet consolidation 2.049 1.447 913 6.463 6.264 -714 5.531 5.280 -4.433 -210 -135 -251 All values in € million EBITDA Non FX rate EBITDA Higher Better InoNet Opex Other EBITDA ADJ Non EBITDA 2022 ACT recurrent effect
Slide 15: Balance sheet normalizing after component shortage effects
balance sheet normalizing after component shortage effects All values in € million Finally extracting cash parked in extra inventory Half of NFP decrease linked to forex effects Payables reduction linked to normalization of purchasing volumes 7.5 23.9 19.9 -14.4 1.9 -0.8 1.0 -3.3 -3.1 -3.8 -1.6 -20.
Slide 16: Key takeaways FY 2023
@eurotech key takeaways FY 2023 UNLEASHING THE POWER OF THE EDG
Slide 17: Key takeaways
key takeaways Edge AIoT revenues @41% InoNet synergies coming true, growing 20% organically EBITDA growing 4x YoY Inventory down 3.8M€ and trade GPM improving 240bps YoY payables normalising, long tail of component shortage ending EBITDA in mid-single digit as Lower visibility than the past on we co