Slide 1: 3Q 2022 YTD Financial Results
3Q 2022YTD FINANCIAL RESULTS
Slide 2: The Future Is Our Present
THE FUTURE IS OUR PRESENT The world is experiencing a level of disruption and business risk not seen in generations. Some companies freeze and fail, while OTHERS innovate, advance grow and even thrive. McKinsey Collections: Business Resilience GEFRAN (we) is and will be in the OTHERS! 2
Slide 3: Index
INDEX 1. BUSINESS 2. COMPETITIVE ADVANTAGE 3. GEOGRAPHIES 4. GROWT THROUGH ACQUISITIONS 5. RESULTS 3
Slide 4: Focused on Two Business
FOCUSED ON TWO BUSINESS GEFRAN DEVELOPE, PRODUCE AND COMMERCIALIZE AUTOMATION SENSORS COMPONENTS FOR THE MEASUREMENT OF HARDWARE & SOFTWARE FOR PROCESS VARIABLES INDICATION AND CONTROL OF PROCESS VARIABLES August 2022: dismission of Drive&Motion Business 4
Slide 5: Sales Channels
SALES CHANNELS Gefran supplies automation components and systems to manufacturers of industrial machinery on a global basis. It operates 100% in the capital goods, B2B segment 30% DISTRIBUTORS GEFRAN 60% OEM 10% BIG END-USER 5
Slide 6: Sensors
SENSORS Devices that convert a physical quantity into an electric signal in the industry automation (machines). Gefran SENSORS ensure HIGH ACCURACY and RELIABILITY in the measurement of process variables: PRESSURE, POSITION, TEMPERATURE and FORCE. High temperature Linear position Pressure sensors fo
Slide 7: Sensors
SENSORS Critical success factors: technology, product and quality. Competitive advantage: In- house design and production of primary elements. Patents. Know-how. 7
Slide 8: Automation Components
AUTOMATION COMPONENTS INSTRUMENTATION AND PROGRAMMABLE AUTOMATION CONTROLS POWER CONTROLLERS AND CUSTOMER SOLUTIONS Hardware and software for indication Advanced power controllers, solid PC, PLC, HMI and software for and regulation of process variables. state power units and solid state machine auto
Slide 9: Automation Components
AUTOMATION COMPONENTS Gefran is a leader in the CONTROLLERS, EUROTHERM (UK) – JUMO (DE) European temperature PROGRAMMERS, – OMRON (J) INDICATORS controllers segment thanks to wide distribution network and POWER CONTROLLERS, SOLID WATLOW (US) – EUROTHERM (UK) – CARLO GAVAZZI (CH) personalization. STA
Slide 10: How We Compete
HOW WE COMPETE FAMILY OWNED VELOCITY BUSINESS DEVELOPEMENT FLEXIBILITY VERTICAL PRODUCTION FLEXIBILITY INTEGRATION PERSONALISATION STRONG & DURABLE CUSTOMER APPLICATION KNOW RELATIONSHIP HOW MARKET NICHE LEADERSHIP 10
Slide 11: Our Excellence Factors
OUR EXCELLENCE FACTORS COST EFFECTIVENESS APPLICATION KNOW HOW STANDARD IT (DIGITAL TWIN) CROSS-PLATFORM TECHNOLOGY ELEMENTS TECHNOLOGY LEADERSHIP IT-OT ARCHITECTURE I4.0 PROCESSES AND ALGORITHMS INDUSTRY 4.0 FEATURES 11
Slide 12: R&D Investments and Activities
R&D INVESTMENTS AND ACTIVITIES The technological evolution of products and processes is an important factor for potential future growth for Gefran. The skills network guaranteed by the cooperation with universities and research centers is a critical resource for the enterprise system ensuring contin
Slide 13: Tech Trends
TECH TRENDS Technological evolution creates growth margins for Gefran regardless of the macroeconomic scenario. The Group continues to invest in know-how and product development to keep pace with technological trends. https://www.mckinsey.com/business-functions/mckinsey- digital/our-insights/the-top
Slide 14: A Future-Oriented Commitment
A FUTURE-ORIENTED COMMITMENT 14
Slide 15: ESG Approach: A Competitive Advantage
ESG APPROACH: A COMPETITIVE ADVANTAGE E ▪We implement constant monitoring on environmental impact and energy consumption. ▪Our operating activities do not include processing or treatment of materials and components that may represent a significant risk to the environment. FOCUS PROJECT IN OUR STRATE
Slide 16: Where We Are
WHERE WE ARE WE ARE PRESENT IN RELEVANT MARKETS WITH PRODUCTION SITES AND COMMERCIAL SUBSIDIARIES Production plants 16
Slide 17: Strategic Guidelines for External Growth
STRATEGIC GUIDELINES FOR EXTERNAL GROWTH • Main focus on sensors business • Product portfolio integration • Wider range of industrial application • Consolidation of the geographical presence into different market 17
Slide 18: Drive&Motion Business Divestment
DRIVE&MOTION BUSINESS DIVESTMENT The sale of the Drives&Motion Business is part of Gefran’s broader strategic plan to focus resources on the company's historical core business of Sensors and Components where the Group has a consolidated global leadership, generates excellent economic and financial r
Slide 19: Third Quarter Results Highlight
THIRD QUARTERS RESULTS HIGHLIGHT .000 € + 16,6% YoY + 18,7% YoY Net cash growing from €2.5m reported 1H22, reflecting EBITDA growth and NWC efficiencies Cash from Motion sale not included As at September, 2022 as realized 3 of October 19
Slide 20: Economics
ECONOMICS (Euro /000) 30 September 2022 30 September 2021 Var. 2022-2021 REVENUES 101,549 87,105 14,444 16.6% EBITDA 20,994 20.7% 17,69 20.3% 3,304 18.7% EBIT 15,719 15.5% 12,724 14.6% 2,995 23.5% TAXES -4,611 16.4% -2,899 14.3% -1,712 -59.1% RESULT FROM OPERATING ACTIVITIES 12,027 11.8% 9,6 11.0% 2
Slide 21: Group Turnover by Geography
GROUP TURNOVER BY GEOGRAPHY (Euro /.000) 30-set-22 30-set-21 Var. 2022-2021 ITALY 34.102 28.360 +20,20% EU 27.275 22.410 +21,70% EUROPE NON EU 3.390 2.948 +15,00% NORTH AMERICA 10.051 7.341 +36,90% SOUTH AMERICA 4.470 3.257 +37,20% ASIA 21.890 22.501 -2,70% ROW 371 288 +28,80% As at September 2022 2
Slide 22: Automation Components
AUTOMATION COMPONENTS Sensors Components 30 September 30 September (Euro /000) 2022 2021 Var. 2022 - 2022 REVENUES 39,451 33,813 5,638 16.7% EBITDA 3,716 3,678 38 1.0% % OF REVENUES 9.4% 10.9% EBIT 1,531 1,592 -61 -3.8% % OF REVENUES 3.9% 4.7% 22
Slide 23: Sensors
SENSORS 30 September 30 September (Euro /000) 2022 2021 Var. 2022 - 2021 REVENUES 67,943 58,446 9,497 16.2% EBITDA 17,278 14,012 3,266 23.3% % OF REVENUES 25.4% 24.0% EBIT 14,188 11,132 3,056 27.5% % OF REVENUES 20.9% 19.0% 23
Slide 24: 2021 – 2022 Group EBIT
2021 — 2022 GROUP yy EBIT 25.000 10.394 — —— $ 421 20.000 | 45.719 15.000 6.973 s 12.724 s 3 10.000 5.000 Ve ie EBIT september 2021 Volumes =—_—s Margin D&A e impairment Operative costs | EBIT september 2022 Ly OFS a
Slide 25: 2021 – 2022 Capex
2021 – 2022 CAPEX Efficiency Since 2021 we improvements invested 11 MIO Euro 42% New Products Site Renewal (R&D) 32% 26% 25
Slide 26: 2021 – 2022 Group Cash Flow
2021 – 2022 GROUP CASH FLOW €/000 30 Sep 2022 30 Sep 2021 OPENING CASH & CASH EQUIVALENTS 35.497 41.742 GROSS CASH FLOW 23.884 19.055 CHANGE IN WORKING CAPITAL -9.559 -288 OPERATING CASH FLOW 14.325 18.767 CASH FLOW USED IN CAPEX -4.319 -5.135 FREE CASH FLOW 10.006 13.632 CHANGES IN FINANCIAL DEBT -
Slide 27: 2021 – 2022 Highlights
2021 – 2022 HIGHLIGHTS FINANCIAL INDICATORS 30 September (Euro /000) 31 December 2021 Change 2022 Cash and cash equivalents and current financial receivables 26,090 35,497 (9,407) Current financial payables (12,266) (15,059) 2,793 Current financial payables for IFRS 16 leases (901) (1,640) 739 Curre
Slide 28: 2021 – 2022 Net Financial Position
2021 – 2022 NET FINANCIAL POSITION 28
Slide 29: 2021 – 2022 Highlights: Investments
2021 – 2022 HIGHLIGHTS FINANCIAL INDICATORS Investiments in continuing operations: 3,7 M€, plus 1,7 M€ of investments already released. 30 September 30 September (Euro /000) 2022 2021 INTANGIBLE ASSETS 1,082 1,136 TANGIBLE ASSETS 2,607 3,195 TOTAL 3,689 4,331 29
Slide 30: 2021 – 2022 Highlights: Working Capital
2021 – 2022 HIGHLIGHTS FINANCIAL INDICATORS Working capital in continuing operations: 23,9 M€, increase of 6 M€ compared to 31.12.2021 (Euro /.000) 30 September 2022 31 December 2021 Change INVENTORIES 20.664 14.449 6.215 TRADE RECEIVABLES 24.931 24.752 179 TRADE PAYABLES (21.744) (21.393) (351) TOT
Slide 31: Main Shareholders
MAIN SHAREHOLDERS As at September 2022 31
Slide 32: Consolidated Income Statement by Quarter
CONSOLIDATED INCOME STATEMENT BY QUARTER Q1 Q2 Q3 Q4 TOT Q1 Q2 Q3 TOT 2021 2021 2021 2021 2021 2022 2022 2022 2022 Revenues 27,924 31,214 27,967 31,493 118,598 35,171 34,137 32,241 101,549 Increases for internal work 252 269 226 529 1,276 241 270 173 684 Consumption of materials and products 7,988 9
Slide 33: Gefran – Beyond Technology
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