Marzocchi Pompe S.p.a. · MIL:MARP
Marzocchi Pompe — H1 2020 Earnings Presentation
37 slides from Marzocchi Pompe's earnings presentation, Sep 30, 2020
Slide 1: 1H-2020 Results Presentation
1H-2020 RESULTS PRESENTATION 30 September 2020
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: Agenda
Agenda Company at a Glance 1H 2020 Results Achievements Market & Competitive Positioning Appendix Business Overview 3
Slide 4: Company at a Glance
Company at a Glance Marzocchi Pompe is a leading player in the design, production and marketing of high performance external gear pumps and motors, Company which are used in various sectors: industrial (textile machines, machine tools, plastic injection machines, medical equipment, energy, etc.), mo
Slide 5: Top Management & Shareholders
Top Management & Shareholders TOP MANAGEMENT BOARD OF DIRECTORS SHAREHOLDERS Free Float 23,53% Paolo MARZOCCHI Paolo MARZOCCHI Main Shareholder, Executive Chairman Executive Chairman Gabriele BONFIGLIOLI CEO Guido NARDI CFO, Executive Director Abbey Road Crosar Capital SpA S.r.l. (Paolo Valentina CA
Slide 6: 1H 2020 Results
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Slide 7: 1H 2020 Results resilient in tough times
1H 2020 Results resilient in tough times NET SALES AT EURO 15.6 MLN (-26% YoY) A DECREASE IN LINE WITH INDUSTRY AVERAGE THE CORE BUSINESS SALES WERE DOWN 24% WHILE THE AUTOMOTIVE SALES FELL 32%. AUTOMOTIVE SALES REPORTED AN INCREASE IN THE FIRST 2 MONTHS OF 2020 THEN WERE HEAVILY HIT BY THE COVID-1
Slide 8: Revenues at € 15.6 mln, EBITDA margin at 7.6%
Revenues at € 15.6 mln, EBITDA margin at 7.6% Revenues and EBITDA • Revenues were Euro 15.6 million in 1H-20, recording a decrease in line with industry average following COVID-19 impact • 1H 2020 revenues prudentially did not take into account any provision as foreseen by automotive contracts (that
Slide 9: Core market segments topped 74% of revenues
Core market segments topped 74% of revenues Revenue breakdown • Revenues by core market segments (Industrial, Mobile and Sales Network), representing three quarters of total Revenues, reached Euro 11.6 million vs. Euro 15.2 million in 1H 2019 due to COVID-19 negative impact on industry demand Core •
Slide 10: EBIT, Net Result at loss for € 0.9 mln due to COVID-19 impact
EBIT, Net Result at loss for € 0.9 mln due to COVID-19 impact EBIT and Net Result • EBIT slowed down to Euro 0.9 million loss in 1H 2020 vs. Euro 1.3 million profit in 1H 2019, following the contraction in EBITDA and still high Depreciation & Amortization (Euro 2.2 million, of which Euro 0.6 million
Slide 11: Net Financial Position Evolution
Net Financial Position Evolution NFP Evolution • Net Financial Position (negative) improved at Euro 11.2 million vs. Euro 12.5 million at end-2019, following healthy cash generation (Euro 1.3 million) • Tight control on Working Capital (down to Euro 5.8 million vs. Euro 6.8 million in at end-2019) a
Slide 12: Achievements
Achievements
Slide 13: 2020 Highlights & Outlook
2020 Highlights & Outlook THE YEAR BEGINNING WAS HIT BY THE COVID-19 PANDEMIA AT WORLD LEVEL: MARZOCCHI POMPE CONTINUED ITS PRODUCTION ON A REGULAR BASIS UNTIL 22ND MARCH, WHEN THE ITALIAN GOVERNMENT IMPOSED THE LOCKDOWN WHICH EXPIRED ON 13TH APRIL IN AN EXTREMELY TOUGH MARKET SCENARIO WITH UNRE
Slide 14: Focus on ELIKA, Marzocchi Pompe top-performing pump
Focus on ELIKA, Marzocchi Pompe top-performing pump IN 2019 THE NEW ELIKA DEPARTMENT HAD BEEN COMPLETED WITH AN INVESTMENT OF MORE THAN 1 MILLION EUROS IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE'S FLAGSHIP PRODUCT CHARACTERIZED BY LOW NOISE & HIGH
Slide 15: Market & Competitive Positioning
Market & Competitive Positioning
Slide 16: 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 17: 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 18: 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 19: Leadership in external gear pumps market
Leadership in external gear pumps market + Product Quality & Performance Source: Marzocchi Pompe SpA management estimates - - Product Customization/ Customer service + 19
Slide 20: Appendix
Appendix
Slide 21: 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 22: 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 component
Slide 23: 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 generation stretchers, dental chairs: in general, for small pumps and motors guarantee the complete absence of medical
Slide 24: 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 25: Target markets
Target markets Core market’s revenues include Industrial and Mobile machines applications and represent 73,5% of total 2019 revenues, including sales to distributors /sales network, which alone contribute to 33,2% of MP’s total sales(*) FLUID POWER Core Automotive Industrial Mobile Machines Possible
Slide 26: Main client composition
Main client composition • The company benefits from a diversified client base for the Industrial and Mobile machine sectors, having their top 3 clients making up only 9,9% of sales and the top 10 representing 25,2%. The Automotive sector, on the other hand, has fewer clients making up for most of it
Slide 27: 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 28: Investment highlights
Investment highlights • The Hydraulic market is large, estimated to be around Euro 8.8 billions in 2016 in Europe (Source: CETOP) Large target market and Euro 2.6 billion in 2017 in Italy (Source: Assofluid) experiencing growth • Evidence of upward trend of Italian hydraulic market in the 2009-2017
Slide 29: Organizational structure and production sites
Organizational structure and production sites • Marzocchi Pompe can count on a team of professionals with consolidated experience. As of 30 June 2020 the workforce consists of 249 resources (of which 247 are permanent employees), with a heterogeneous background of professional skills that strengthen
Slide 30: History
History Construction of a Start-up of large-scale production Main operative milestones production unit in of the Elika pump, an innovative On 16th July 2019 listing on Ostellato (FE) with product with low noise and high the AIM market, opening investments of > € 15m efficiency standard, even at low
Slide 31: Financial highlights 2016-2019 (1/2)
Financial highlights 2016-2019 (1/2) Evolution of revenues and EBITDA margin Market segment distribution of 2016-2019 Revenues 17.6% 17.3% 12.3% 11.1% 10.6% 16.2% 16.2% 26.1% 22.5% 20.8% 24.1% 42.1 40 38.6 31.3% 8.6% 27.3% 35.2% 26.5% 30.5 34.2% 31.2% 37.3% 33.2% 2016 2017 2018 2019 2016 2017 2018 2
Slide 32: Financial highlights 2016-2019 (2/2)
Financial highlights 2016-2019 (2/2) Net Financial Position Evolution Cash Flow breakdown 10.8 6.8 6.2 8.4 7.0 6.5 4.2 4.4 5.4 (0.6) 1.2 4.0 (0.5) 19.5 (3.4) 11.7 11.9 (6.3) (5.3) 9.7 (2.8) (9.4) -0.6 -1.7 -6.5 -4.7 (1.5) 2016 2017 2018 2019 (0.9) (9.0) Cash & near-cash Long term fin debit Short ter
Slide 33: Consolidated Profit & Loss
Consolidated Profit & Loss Eur 000 30-Jun-20 30-Jun-19 Sales revenue 15.584 100% 21.111 100% WIP changes 397 1.456 Other revenue 528 409 PRODUCTION VALUE 16.509 22.976 Raw materials consumption (3.845) (24,1%) (5.436) (24,1%) Service costs (4.756) (29,8%) (6.169) (27,3%) Costs for use of third-party
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet Eur 000 30-Jun-20 31-Jun-19 A) NET FIXED ASSETS 24.486 26.105 Intangible fixed assets 1.665 1.405 Tangible fixed assets 21.706 23.465 Financial fixed assets 1.115 1.236 B) NET WORKING CAPITAL 5.798 6.787 Inventories 8.932 8.119 Advances from customers (17) (23) Trade recei
Slide 35: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement 30-Jun-20 30-Jun-19 €/000 €/000 Operating profit (EBIT) (963) 1.382 Tax effect 335 (63) Change in funds 220 238 Provisions and write-downs 2.224 2.599 Income cash flow 1.816 4.157 Changes in working capital Inventories (813) (1.168) Trade receivables 2.402 (1.766) Ot
Slide 36: 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
Slide 37: Contacts
CONTACTS Marzocchi Pompe S.p.A. Gabriele Bonfiglioli, CEO & IR ir@marzocchipompe.com EnVent Capital Markets – Nominated Adviser Paolo Verna pverna@enventcapitalmarkets.co.uk CDR Communication - Investor e Media Relations Paola Buratti paola.buratti@cdr-communication.it Martina Zuccherini martina.zuc