Slide 1: 2022 first half results
2022 first half 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: Our journey on the long run
our journey on the long run 2022: transitioning Strategy building blocks execution Embedded business sustaining double digit growth Creating and closing healthy Edge IoT pipeline Close 1st M&A deal 2023: transforming Edge IoT growing stronger than Embedded Sustainable re-occurring revenues growing d
Slide 4: Financial highlights
financial highlights Double digit growth confirmed: +30% YoY, +25% net of forex effect 4.0 M€ orders not delivered due to lack of components Gross Margin improving 330bps in Q2, with further growth expected in Q3 OPEX growing YoY in line with Management estimates to roll-out strategy Cash flow impac
Slide 5: Line of sight @ 87M€
line of sight Order Backlog for the year allowing visibility @87M€ Q3 still growing double digit YoY and >Q2 Volume of Gateways shipped in FY2022 confirmed at +40% YoY SW revenues on track to reach 3.5M€ this year (50+% YoY) @87M€ Availability of components and PPV getting better also thanks to acti
Slide 6: Business update
business update Focus on improving GPM: we have reversed the trend and margins are coming back Focus on finding components: Q3 and Q4 outlook is now improved Talent recruiting taking extra effort, new hires joining in Q3 and Q4 New brand identity “unleashing the power of the edge” rolled out with ne
Slide 7: Financial
UNLEASHING THE POWER OF THE EDGE
Slide 8: Revenues growing double digit
revenus growing double digit 6.5 1.0 0.5 #IoT trend confirmed in line 34.7 with FY2021 26.7 #Growth driven by Embedded business H1 Delta Delta H1 FX ’21 IoT Embedded ’22 All values in € million #8
Slide 9: US and Japan growing more than EU
US and Japan growing more than EU #US sustained by solid trend on legacy business other other EU EU 6.3 9.2 % 15.7 % % 19.3 % #Japan boosted by strong business with semiconductor H1 H1 2022 2021 equipment manufacturers 34.3 30.7 % % JP 43.7 % US JP 40.8 % US # Europe potential still not expressed, g
Slide 10: GPM up 330bps in Q2, further improving in Q3
GPM up 330bps in Q2, further improving in Q3 standard PPVs plus Shortage mitigation actions market change in mix kicking-in plus Mix improving conditions #PPV mitigation actions done Increase selling prices 50.0 48.9 Redesign for unavailable parts replacement % % Plan longer term / higher volume 44.
Slide 11: EBITDA hit by low GPM and non-recurring OPEX for hiring
EBITDA hit by low GPM and non-recurring OPEX for hiring operational leverage still not active -1.1 2.1 -0.7 - 1.7 - 1.6 - 1.1 -0.5 0.3 - 3.2 1.4 EBITDA Non EBITDA FX Volume Mix & Net One-off EBITDA H1 Recurring H1 PPV Opex Opex H1 21 costs 21 recurring for hiring 22 adj All values in € million #11
Slide 12: Solid balance sheet
solid balance sheet Net Capital Employed NFP impacted by 6.0M€ increase in inventory Non currents NWC Long-term assests Liabilities 101.0 98.2 0.4 13.4 -5.4 10.4 -25.1 -19.4 6.2 110.4 105.2 -1.3 1.1 0.3 FY FX Cashflow from Cashflow for H1 -6.2 -0.3 ‘21 operation investment ‘22 Shareholders’ Equity N
Slide 13: Key takeaways
@eurotech UNLEASHING THE POWER OF THE EDGE
Slide 14: Key takeaways
key takeaways Solid double-digit growth Macro-economic scenario uncertain on revenues YoY with technical recession in US and energy costs booming in EU Order book for 2022 allows Components shortage mitigation visibility @87M€ actions kicking-in, watching out on scenario evolution Gross Profit Margi
Slide 15: Ready to take questions
@eurotech UNLEASHING THE POWER OF THE EDGE qsxa- -Teady to take Bahction’ |
Slide 16: Thank you
@eurotech thank — yon —