Eurotech S.p.a. · MIL:ETH
Eurotech — IPO Roadshow (November 2005)
36 slides from Eurotech's IPO roadshow presentation, Nov 21, 2005
Slide 1: Investors Presentation
INVESTORS PRESENTATION 21 NOVEMBER - 25 NOVEMBER
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: Speakers
SPEAKERS ROBERTO SIAGRI President and Chief Executive Officer MASSIMO MAURI Executive Vice President and Investors Relator EROS GOI Chief Financial Officer 3
Slide 4: Agenda
AGENDA OFFERING STRUCTURE GROUP OVERVIEW INVESTMENT CASE FINANCIAL HIGHLIGHTS RATIONALE FOR IPO 4
Slide 5: Offering Structure
OFFERING STRUCTURE € 25 - € 30 million Offering Size 8,65 million shares Price range € 2,90 - € 3,50 per share Maximum Retail Price € 3,50 per share 7,45 million primary shares Offering Structure 1.202 million secondary shares offered by First Gen-E Greenshoe Up to 15% of the Global Offer Listing It
Slide 6: Offering Structure
OFFERING STRUCTURE Post-IPO free float Approx 46,45% (approx 53,42% post-Greenshoe) Lock-Up 12 Months for main shareholders, 6 months for others Institutional Offering in Europe (Reg. S) Tranche Retail Offering in Italy (min. 20% of the Global Offering) Global Coordinator Mediobanca – Banca di Credi
Slide 7: Timetable
TIMETABLE Monday, Nov. 21st Launch of the Institutional Roadshow and Bookbuilding Monday, Nov. 21st Start of Retail offering Friday, Nov. 25th Close of Institutional and Retail Offerings / Pricing Sunday, Nov. 27th Offer Price Announcement to Public Wednesday, Nov. 30th Closing, Settlement, and Star
Slide 8: Agenda
AGENDA OFFERING STRUCTURE GROUP OVERVIEW INVESTMENT CASE FINANCIAL HIGHLIGHTS RATIONALE FOR IPO 8
Slide 9: Group's Structure
GROUP’S STRUCTURE Private Shareholders 7% Associated companies FIRST GEN-E 24,8% Management Emilab srl Emilab 22,4% 41% 18,2% Inasset srl Inasset Eurotech Eurotech Spa Spa 40% Delos srl Delos Friulia S.p.A. 10,1% THE S.r.l. 19,5% 99,9% 100% 100% 100% 80% 63,59% EthLab EthLab Srl Srl Erim Erim Dev. D
Slide 10: International Presence
INTERNATIONAL PRESENCE Germany Finland 1 5 USA 54 Cina France 1 14 Italy 80 10
Slide 11: Management
MANAGEMENT Strategy & Business Development President & CEO Industrial Operations & Roberto Siagri Information Systems Vice President Vice President Dino Feragotto Massimo Mauri Investor Relations Research & Communication Quality Finance Giampietro Tecchiolli Marco Polo Eros Goi CTO CFO ETH Lab Nord
Slide 12: Group's Portfolio
GROUP’S PORTFOLIO NanoPC HPC Universities, Transportation, Research institutes Defence Exadron Eurotech (Eurotech Division) Parvus Erim Automation & Control, Security & Surveillance Ascensit Networking Neuricam (Eurotech Division) IPS 12
Slide 13: Products & Market
PRODUCTS & MARKET DEFENCE TRANSPORTATION MEDICAL INDUSTRIAL HPC MARKET MARKET MARKET MARKET MARKET Custom HPC Multi Function Train cockpit Human Machine Display Interface Electronic warfare Bandwidth Manager AVL-AVM Computer Modules Vision Sensor & Sistems Standard HPC Advanced Traffic Vehicular Com
Slide 14: Turnover Breakdown
TURNOVER BREAKDOWN PRODUCT, SEPT ‘05 END MARKET, SEPT ‘05 GEO AREA, SEPT ‘05 Research Centre Health care OTHER HPC & Universities 6,5% 4% 15% 15% USA Defence Industrial 29% 26% 23,5% NANOPC Transportation EUROPE 85% 29% 67% 14
Slide 15: Main Clients
MAIN CLIENTS NanoPC Alstom Ansaldo TRANSPORTATION Bombardier MARKET Elsag BA Systems BAE Boeing Galileo Avionica DEFENCE L3 Communication MARKET Lockheed MBDA Rockwell Thales Gendex LMA MEDICAL Varian MARKET Imaje Salvagnini INDUSTRIAL Selca MARKET HPC CILEA DESY COMPUTING CENTRE INFN & RESEARCH INS
Slide 16: Agenda
AGENDA OFFERING STRUCTURE GROUP OVERVIEW INVESTMENT CASE FINANCIAL HIGHLIGHTS RATIONALE FOR IPO 16
Slide 17: A Story of Growth and Success
A STORY OF GROWTH AND SUCCESS 1992-1994: THE ORIGINS COMPANY GROWTH ¾ 1992: foundation of Eurotech S.r.l. .000 € 19.9M Sept.’05 100.000 ¾ 1993-94: first family of PC/104 Embedded PC modules m=Log(1+t) = log(1+48%) 20.000 1995-2000: FROM LABORATORY TO INDUSTRY 10.000 ¾ 1997: first high-performance co
Slide 18: A Business Model Propelled by Innovation
A BUSINESS MODEL propelled by INNOVATION Market and Customers Today’s Markets Tomorrow’s Markets Strategic Marketing Planning Sales Research Development Engineering Production Catalog & Custom Universities and Research Centres 18
Slide 19: Eurotech: The Innovation Model
EUROTECH: THE INNOVATION MODEL DEVELOPMENT High End Market absorption capacity Product’s Performance H PC Low End s g ie High End o n ol c h Market te absorption PC capacity PC C es Nano Low End NanoP l og i no ch te one p h STRATEGIC ile ob PLANNING m & A RESEARCH PD Inspired from Christensen’s inn
Slide 20: Eurotech: The Technological Evolution
EUROTECH: THE TECHNOLOGICAL EVOLUTION H PC Product’s Performance s g ie o n ol ch te PC PC C Nano NanoP i es og Custom HPC l no ch i es Standard HPC (PC based) te og one nol Embedded-PC (CompactPCI) h h p t ec Embedded-PC (PC/104) b ile ID o RF Wearable PC m & A Sensor Networks PD Time ‘92 ‘97 ‘02 ‘
Slide 21: The Vision
THE VISION “The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it.” Mark Weiser "The Computer for the 21st Century", Scientific American - Vol. 265 No.9, pp. 66-75, 1991 21
Slide 22: Pervasive Computing & Grid Future Scenario
"PERVASIVE COMPUTING" & GRID FUTURE SCENARIO “ Someday soon, more than one million businesses will be connected HPC to more than one billion people by one trillion devices” L.V. Gerstner NanoPC ID R G “It's already beginning to happen … But we'll see even more tremendous growth when intelligence bec
Slide 23: Eurotech Products' Evolution
EUROTECH PRODUCTS’ EVOLUTION COMPUTERS will be more MINIATURIZED and INTERCONNECTED through the GRID They will WEAVE themselves in to the ENVIRONMENT of everyday life until they are indistinguishable from it.. The 3^wave is coming (2005-2015): the beginning of the Pervasive Computers Era 23
Slide 24: A Clear Strategy
A CLEAR STRATEGY … MAINTAINING OUR TECHNOLOGICAL LEADERSHIP ¾ in miniaturization ¾ organizing a specific research THROUGH (small dimension/low-power consumption) structure: Eth Lab ¾ in computer interconnection (high speed short-distance/wireless low-power long-range) ¾ strategic research agreements
Slide 25: Evolution of the Application Space
… THAT FORESEES THE EVOLUTION OF THE APPLICATION SPACE from Embedded Computers GRID to Pervasive Computers Wearable Computer Future Present Sensor Networks HPC NanoPC 25
Slide 26: Evolution of the Application Space
… THAT FORESEES THE EVOLUTION OF THE APPLICATION SPACE from Embedded Computers GRID to Pervasive Computers Wearable Computer Future Present Sensor Networks HPC NanoPC 26
Slide 27: With Strong Research Links
… WITH STRONG RESEARCH LINKS STRATEGIC AGREEMENTS ¾Italian National Institute for Nuclear Physics (INFN) HPC (Supercomputer) ¾Institute for Scientific Research and Technology of Trento Pervasive Computer (SOC) ¾INDO/Italian Research Centre Pervasive Computing (GRID) ¾Omega Consortium HPC (GRID) RESE
Slide 28: Agenda
AGENDA OFFERING STRUCTURE GROUP OVERVIEW INVESTMENT CASE FINANCIAL HIGHLIGHTS RATIONALE FOR IPO 28
Slide 29: Revenues
REVENUES REVENUES, YTD 2002-2004 € Mln GROWTH THROUGH 20 18,8 ACQUISITIONS 10% 18 16 +60% INTERNAL GROWTH 50% 14 11,72 12 +42% 10 8,25 8 6 4 REVENUES, SEPT ’04 VS SEPT ‘05 2 0 2002 2003 2004 € Mln 25 19,84 20 EUROPE +105% 15 US 9,67 10 OTHER 5 0 30 SEPT '04 30 SEPT '05 29
Slide 30: Gross Profit Margin
GROSS PROFIT MARGIN GROSS PROFIT, YTD 2002-SEPT ‘05 4,37 5,91 5,42 10,16 10,29 € Mln 70% 60% 50% 40% 30% 53% 50% 56% 54% 52% 53% 50% 54% 52% 20% 10% 0% 2002 2003 2004 30 Sept. '05 30 Sept. '04 30
Slide 31: EBITDA & EBIT
EBITDA & EBIT EBITDA, YTD 2002-SEPT ‘05 € Mln 2,5 0,82 0,84 -0,08 1,88 1,63 1,5 10% 7,2% 10% 8% 0,5 -0,8% EBIT, YTD 2002-SEPT ‘05 2002 2003 2004 30 SEPT '05 € Mln 1,5 30 SEPT '04 0,22 0,16 -0,43 1,02 0,92 1,0 0,5 2,7% 1,4% 5,4% 4,6% -4,2% 0 2002 2003 2004 30 SEPT '05 30 SEPT '04 31
Slide 32: Net Working Capital, Capex, Equity and Net Debt
NET WORKING CAPITAL, CAPEX, EQUITY AND NET DEBT NWC, YTD 2002-SEPT ‘05 CAPEX, YTD 2002-SEPT ‘05 € Mln € Mln 4 67% ON REV. INTANGIBLES TANGIBLES 47% ON REV. 6 27% ON REV. 2,72 2,84 1,87 3 4 17% ON REV. 2 2 1 0 0 2002 2003 2004 30 SEPT '05 2003 2004 30 Sept.'05 * 2004 IFRS ACCOUNT EQUITY AND NET DEBT,
Slide 33: Agenda
AGENDA OFFERING STRUCTURE GROUP OVERVIEW INVESTMENT CASE FINANCIAL HIGHLIGHTS RATIONALE FOR IPO 33
Slide 34: So Why Eurotech?
SO WHY EUROTECH? CENTRE OF TECHNOLOGICAL EXCELLENCE INTERNATIONAL PRESENCE SUCCESSFUL TRACK RECORD SUSTAINED GROWTH AND PROFITABILITY ABILITY TO ENVISION FUTURE SCENARIOS CONSTANT PRODUCT EVOLUTION AND INNOVATION ESTABLISHED RELATIONS WITH HIGH PROFILE CLIENTS 34
Slide 35: Why the IPO?
WHY THE IPO ? RAISE CAPITAL TO FUND FUTURE GROWTH WHY TO GO PUBLIC ENHANCE BRAND VISIBILITY ON THE NATIONAL AND INTERNATIONAL MARKET INCREASE THE GROUP’S STRENGTH AND COMPETITIVENESS ATTRACT VALUABLE HUMAN RESOURCES STRONG STABLE SUSTAINABLE 35
Slide 36: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION "There is one thing stronger than all the armies in the world and that is an idea whose time has come." "On résiste à l'invasion des armées; on ne résiste pas à l'invasion des idées.“ Victor Hugo, Paris 1877 36