Esautomotion Spa · MIL:ESAU
Esautomotion Spa — Investor Presentation (November 2023)
37 slides from Esautomotion Spa's investor presentation, Nov 3, 2023
Slide 1: November 3rd 2023
Ce UTM OT LON, ~ November 3" 2023
Slide 2: Company Overview
Section 1 Company Overview 2
Slide 3: At a Glance
At a Glance 3 • Esautomotion (ESA) develops and sells Integrated Mechatronic CNC 1H23 Financials 9M23 Results Systems (Software and HW), Motors, Drivers and other tools for the (not audited) automation of industrial production machines €19.3mn 49% €27.6mn Revenue Foreign Revenue Revenue • ESA is the
Slide 4: Key Milestones
Key Milestones 4 Since the management buyout, our strategy is based on the following drivers of growth: FOCUS ON SYNERGIC AND PROFITABLE MARKET NICHES HARDWARE OPTIMIZATION AND A COMPLETE FULL-PACKAGE 34,1 35, 0 85,0% INTERNATIONALIZATION 75,0% 28,6 30, 0 65,0% FULL SERVICE 25, 0 55,0% In 1H23 18,5
Slide 5: Footprint and Distribution
Footprint and Distribution 5 ITALY R&D 1 Department BARCELONA Sales SHANGHAI 1 Subsidiary Production Spain&Portugal San Marino Brazil 1 Site 5,3% 0,2% 2,3% Other 6,5% Italy SAN PAOLO Turkey 51,4% 17,1% 1 Production Site Headquarter China Subsidiary 17,3% Value Added Reseller Note: Data as of June 30
Slide 6: Management and BoD
Management and BoD 6 FRANCO FONTANA ANDREA SENZOLO GIUSEPPE ZOTTOLI Chairman and Founder Sales Manager and Board Member Independent Director and OPC Chairman Andrea Senzolo joined ESA in 2012. Previously, he Having graduated in Economics, Giuseppe Zottoli Franco Fontana boasts 18 years of experience
Slide 7: M&A
Section 2 M&A 7
Slide 8: Acquisition of Sangalli Servomotori Srl
Acquisition of Sangalli Servomotori Srl 8 BINDING PURCHASE AGREEMENT Deal Structure and Timing • On 10th July 2023 ESA has finalized the acquisition of 65% of Sangalli's business – • Purchase Price = €10,000,000 – NFP one of its strategic suppliers providing electric motors market. The operation is
Slide 9: Strategic rationale of the acquisition (1/2)
Strategic rationale of the acquisition (1/2) 9 By integrating a strategic supplier - in 2022 Sangalli provided 12% of the total purchases of goods - ESA will: 1. reinforce the presence of high energy performance and low environmental impact motors in the Company product portfolio 2. increase the con
Slide 10: Business Overview
Section 3 Business Overview 10
Slide 11: Products (1/2)
Products (1/2) 11 INTEGRATED CNC SYSTEM… …FOR CLIENTS’ AUTOMATED MACHINES ore Business to process Metal, Wood, Marble and Other Materials C The Brain: CNC SOFTWARE CNC Software integrated with HW sends commands to determine and control machine movements The Nervous System: DRIVERS Managed by CN, con
Slide 12: Products (2/2)
Products (2/2) 12 We develop and sell CNC SW and HW dedicated to several applications All the CNC application software share the same user interface Dedicated Software Advantages Better performance Cost reduction CNC APPLICATION SOFTWARE Strong integration with the customer for each type of final ma
Slide 13: Customer Service – Teleassistance
Customer Service – Teleassistance 13 Spare parts reparation Sales/Installation Support 1 On-site and 24/24 online worldwide support and technical assistance throughout the whole cycle 2 Subsidiaries or Local Partners (sales/service) follow our customers in theirs daily needs 3 Our Headquarter gives
Slide 14: R&D
R&D 14 €1.19mn €0.68mn 29 €11.1mn R&D Investments R&D Investments R&D R&D Investments In FY22 In 1H23 Employees since 2012 R&D Investments (€mn) ALL HW, SW, APPLICATIONS SOLD ARE UNDER ESA’S IP 1,32 1,22 1,19 1,12 1,03 1,03 0,86 • Growing investments in R&D have enabled ESA to create 0,71 0,70 innov
Slide 15: Areas of R&D Investments
Areas of R&D Investments 15 Hardware Software 4.0 / Networking New devices Intel versus ARM technology • 3D Full interconnection • Tool (cpu used for Smartphone) • CAD between machines • Sensors • Multicore CPU • Predictive maintenance • OPC-UA protocol • Laser measurement • Distribuited Architectur
Slide 16: Industry 4.0: Three New Launches
Industry 4.0: Three New Launches 16 Smart Bending EsaFour4.0 Smart Tracer Assistant A special smartwatch A suite of four 100% Industry An app that allows to capable of receiving the voice 4.0 software, allowing the remotely check in real time commands of an operator bidirectional exchange of product
Slide 17: Customers: growing old ones and adding new ones
Customers: growing old ones and adding new ones 17 BEN DIN Customer Loyalty Dynamics HER G PR OT ES S LASER WOOD On average, around 75% of the 2011-2022 annual turnover was generated by historical and recurring customers 13.2% CAGR 2011-2022 of sales from recurring customers W AT E E RJ RBL ET MA
Slide 18: Customer Acquisition and Interaction
Customer Acquisition and Interaction 18 Difficult to enter and difficult to exit UP/CROSS SELLING NEEDS ANALYSIS and FIRST CONTACT Acquire new costumers with high- SOLUTIONS PROPOSITION end solutions and then conquer We analyzes customers' shares selling low-end solutions References products and pro
Slide 19: Case Studies (1/3)
Case Studies (1/3) 19 Acquisition Case Study Up-selling Case Study Cross-selling Case Study Golden Arrow Water Jet Equipment CRRC Corporation Limited (CRRC), is the Yawei Wuxi, the largest Chinese Manufacturing Co. of Shanghai is a largest manufacturer of railway rolling manufacturer of press brakes
Slide 20: Case Studies (2/3)
Case Studies (2/3) 20 Acquisition Case Study Up-selling Case Study The US subsidiary of Mitsubishi, SCM is a leading company in the wood producer itself of numerical controls, has sector, with more than 1,200 machines decided to equip part of its press-bending produced per year. machines with ESA CN
Slide 21: Case Studies (3/3)
Case Studies (3/3) 21 Argesystems Automatic Tool Changer May 2019: the biggest Chinese Manufacturer This company developed together with us a The biggest Pressbrake/Laser new device to replace an heavy job: tools manufacturer in the world. We customize changing on press brake. This device uses our C
Slide 22: Market
Section 4 Market 22
Slide 23: CNC market: focus on niches to dominate them
CNC market: focus on niches to dominate them (ante Covid-19) 23 CNC market global evolution Automation 14.0 Market 12.0 Dimension: 200 $/B 10.0 ? COVID-19 ($/billion) 8.0 Mechatronics 6.0 Market Dimension: 54 $/B 4.0 (27% of Automotion) 2.0 0.0 CNC Market CNC Other Machines 2017E 2018F 2019F 2020F 2
Slide 24: Features of market applications
Features of market applications 24 METAL FORMING METAL CUTTING (LASER) ✓ Very strong development in the world, especially in China ✓ Great relevance of Turkey and China ✓ Most of machines equipped with plasma technology, oxy, ✓ Fundamental machine for developing countries punching and shears will be
Slide 25: Main Competitors
Main Competitors 25 Our software is recognized as a CNC standard for industrial machines in the sheet metal segment No turn key solutions No turn key solution No turn key solutions
Slide 26: Counter-cyclical strategy adopted in 2019-2020 has driven 2022 success
Counter-cyclical strategy adopted in 2019-2020 has driven 2022 success 26 STRATEGIC GOAL ACTION PLAN DESCRIPTION 1 Customers don’t invest in additional machines but mainly replace the Facing a lower Intensify high-end old ones. They look for: market demand products development • Cost reduction throu
Slide 27: Key Financials
Section 5 Key Financials 27
Slide 28: 1H23 Financial Results: increase in revenue & strong profitability
1H23 Financial Results: increase in revenue & strong profitability 28 • In 1H23 revenue stood at € 19.3mn, increasing by REVENUE EBITDA 25, 00 +17.2% compared to 1H22, mainly driven by: 20, 00 19,31 i. the strategy aimed at reducing correlation to the 16,47 economic cycle, started since 2019, which
Slide 29: Our Vision and Mission
Our Vision and Mission 29 VISION Italian leader provider of the “intelligent” part of automation machines, aiming to become a leader on complementary, synergetic and profitable market niches. MISSION Worldwide coverage in all the producing and purchasing markets. Provide customers with turn key solu
Slide 30: More Opportunities
More Opportunities 30 Lower Costs More Efficient R&D Assistance Enhancement Delayed project ESA LAB to Lockdown New employment increase China increased of Key R&D production remote support Manager More Remote M&A under Training evaluation
Slide 31: Appendix
Section 6 Appendix ¥ _—
Slide 32: 1H23 Consolidated Income Statement
1H23 Consolidated Income Statement 32 €/000 1H21 1H22 1H23 YoY Net Sales Revenues 13,889 16,420 19,285 +17.4% Other Revenues 43 52 26 (50.2%) Total Revenues 13,941 16,472 19,311 +17.2% Raw materials and change in stocks of semi-finished/finished (7,174) (8,824) (10,291) +16.6% goods Cost of Services
Slide 33: 1H23 Consolidated Balance Sheet
1H23 Consolidated Balance Sheet 33 €/000 FY22 1H23 Inventory 8,323 9,746 Trade receivables 12,008 13,358 Trade payables (7,115) (6,485) Other receivables (Payables) (101) (482) Provisions (340) (356) Net Working Capital 12,775 15,781 Goodwill 98 98 Intangible fixed assets 1,270 1,431 Tangible fixed
Slide 34: FY22 Consolidated Income Statement
FY22 Consolidated Income Statement 34 €/000 FY20 FY21 FY22 YoY Revenues from sales and 17,490 28,327 33,828 +19.4% services Other Revenues 188 281 263 (6.4%) Total Revenues 17,678 28,608 34,091 19.2% Raw materials and change in stocks of semi- (9,308) (14,895) (18,517) +24.3% finished/finished goods
Slide 35: FY22 consolidated Balance Sheet
FY22 consolidated Balance Sheet 35 €/000 FY20 FY21 FY22 Inventory 3,103 4,192 8,323 Trade receivables 6,243 11,208 12,008 Trade payables (2,780) (5,526) (7,115) Other receivables (Payables) 469 (490) (101) Provisions (339) (395) (340) Net Working Capital 6,696 8,989 12,775 Goodwill 98 98 98 Intangib
Slide 36: Shareholder Structure and Stock Performance
Shareholder Structure and Stock Performance (as of 2nd Nov. 2023) 36 Shareholder Structure Stock Performance Since IPO 120% 100% 80% 60% 51,03% 40% 20% Market 0% 26,18% -21,80% -20% Franco Fontana * -40% 34,56% -60% -80% Nov-22 Nov-18 Nov-19 Nov-20 Nov-21 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Ma
Slide 37: ESAUTOMOTION S.p.A. contact details
ESAUTOMOTION S.p.A. Viale della Meccanica, 23/1 41012 Carpi (MO) +39 059 851414 info@esautomotion.com