Seco S.p.a. · MIL:IOT
Seco — H1 2024 Earnings Presentation
22 slides from Seco's earnings presentation, Sep 12, 2024
Slide 1: 1H 2024 Results & Business update presentation
1H 2024 Results & Business update presentation Sept ember 12, 2024
Slide 2: Disclaimer
Disclaimer This document has been prepared by SECO S.p.A. (“SECO” or the “Company”), for information purposes only, exclusively with the aim of assisting you to understand and assess the activities of SECO. The information contained in this presentation does not purport to be comprehensive and may n
Slide 3: Presenting today
Presenting today Massimo Mauri Lorenzo Mazzini Clarence Nahan Chief Executive Officer Chief Financial Officer Head of Corp. Dev. & IR 3
Slide 4: Key takeaways from 1H 2024
Key takeaways from 1H 2024 More resilient • 1H24: Net sales at €95.3m, down 14.8% vs. 1H23, with 2Q24 slightly up vs. 1Q24 revenues in a • Resilient historical client base in the Edge computing business challenged sector • Clea revenues at €12.6m in 1H24 (13.2% of sales), up 359 bps vs. 1H23 Continu
Slide 5: Update on current market environment
Update on current market environment SECO has been one of the main beneficiaries of the unprecedented shortage situation between 2020 and 2022 Our revenues grew 1.6x over the period and we added over 100 new clients to our global portfolio We have since been facing a cycle where the available capaci
Slide 6: 1H 2024 financial highlights
1H 2024 financial highlights 1H 23 1H 24 Net sales • Edge computing business contraction due to different market conditions: customers destocking in 1H24 vs. high demand against shortage in 1H23 €111.9m €95.3m • Clea revenue at €12.6m in 1H24 vs. €10.8m in 1H23 (+17%) Gross margin • +312 bps 1H24 vs
Slide 7: Net sales
Net sales 13% of €95.3m Net sales €12.6m 1H 2024 Clea revenue 1H 2024 Net Sales Net sales breakdown (1H 2024) PKE 5% Others 5% Aerospace & Defense 1% EMEA 85% Industrial 28% Transport 2% APAC 6% by End by Area Market USA 9% Vending 41% Fitness 12% Medical 6% • 1H24 Net sales decreasing by 14.8% vs.
Slide 8: Adjusted EBITDA
Adjusted EBITDA Adj. EBITDA bridge (€m) 23,7% 1 (0,4) 1 2 16,6% (16,5) (9,8) 11,3 (0,6) 26,5 5,3 15,8 Adj. EBITDA 1H Δ Net Δ Consumption Δ Operating Δ Costs of services and Δ Payroll Δ Adjustments Adj. EBITDA 1H 2023 sales costs income other operating costs costs 2024 1 Gross margin effect and opera
Slide 9: Adjusted Net financial position
Adjusted Net financial position Adj. Net debt last 9months evolution (€m) 1 1 2 3 4 5,4 3,6 4,6 7,7 59,7 57,3 61,0 56,4 52,0 9M 23 Q4 cash FY 23 Q1 24 cash Q1 24 Q2 24 cash H1 24 Q2 Extraordinary H1 24 Adj for generation absorption absorption payments extraordinary payments 1 1H 2024 2 Net debt Adju
Slide 10: Business update
Business update S=C/
Slide 11: At the core of one of the fastest growing end-market in technology
At the core of one of the fastest growing end-market in technology With a fully integrated offering, combining both hardware and software, SECO is uniquely positioned to capture an increasing share of this IoT era Global Units (bn) TAM Value ($’bn) Machine 29 Learning >10% CAGR 23-28 25 >12% CAGR 23
Slide 12: A mission-critical supplier for our customers
A mission-critical supplier for our customers By driving our clients’ success, we grow with them and create significant barriers to entry Case Study Mid ’90s 2000 2019 Today Our 25+ years relationships with Board re-design Co-design Single source Customized services (second source) of modules module
Slide 13: Long term growth fueled by reliable client base
Long term growth fueled by reliable client base Constantly increasing our share of wallet as well as adding new verticals & customers Revenue (€m) 210 201 2022 2021 2020 112 2019 76 65 2018 54 Others c.3% customer churn rate 2018 2019 2020 2021 2022 2023 Top 10 Concentration : >70% (2018) to <40% (2
Slide 14: Recent design win improving sales mix across verticals & regions
Recent design win improving sales mix across verticals & regions Country Solution Business size/year Global tech leader in • Smart device for High voltage sub-stations Energy metering Switzerland • Modular, boxed solution with IoT connectivity €5M+ World-leading pioneer in • Advanced HMI for Industr
Slide 15: Completing our end-to-end value proposition
Completing our end-to-end value proposition CLEA Revenue (€m) M&A and R&D driving innovation Q1 23 5+ years c.€100m Building up the Clea platform Overall investment Q2 19 Q3 Q4 +17% 13 2018 2020 2021 2022 +20% 4 Interaction Data Data AI IoT design orchestration science analytics algorithms 2021 2022
Slide 16: Continuously expanding our Clea Ecosystem
Continuously expanding our Clea Ecosystem Strengthening an existing group of industry-leading partners with a clear strategy to fuel creativity & boosting growth amongst 3rd party users Hyperscalers Expanding top-tier tech partnerships Access to advanced technologies Being on-board for tech integrat
Slide 17: Growth Drivers for 2025
Growth Drivers for 2025 Edge computing Software business M&A strategy Historical customers CLEA Penetration Act as a consolidator Normalisation of volumes from Gradual integration into existing Focus on expending our Edge Destocking end & Growing IoT adoption clients Computing footprint: Dedicated S
Slide 18: ESG – A key priority for the Group
ESG – A key priority for the Group Our Mission - A digital, sustainable, intelligent future 30% of energy consumed from certified renewable sources in 2023 Our technologies at the service of sustainable business enable the automation of processes, increasing the efficiency of 29 average training hou
Slide 19: Forward looking guidance
Forward looking guidance • Our sector continues to face an extraordinarily low level of activity €180m+ 2024 Revenues • As order intakes recovery gradually materializes, the resilience of our business and strength of our client base should allow 2H revenues to be broadly in line with the first 6m of
Slide 20: Why invest in SECO ?
Why invest in SECO ? 1 Top 5 player globally in one of the fastest growing end-market in technology 2 Profitable business model focused on high margin custom solutions 3 End-to-end technological partner with unrivalled R&D excellence 4 Fully integrated IoT offering, from edge computing to software s
Slide 21: Q&A
Q&A S=C/
Slide 22: Thank you
Thank you www.seco.com S=C/