Slide 1: 2024 first half results
2024 first half results INVESTORS LIVE STREAMING PRESEN TA TI ON
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: H1 2024 financial highlights
H1 2024 financial highlights Revenues @ 29.3M€ largely affected by phase-out of main customer on legacy embedded business in U.S. and destocking in Japan -37% YoY at constant exchange rates, improving from Q1 Gross Profit Margin @ 49.7% improving 310bps YoY and better than 47.4% in FY23 Opex down 1.
Slide 4: Business update
@®eurotech business update
Slide 5: 2024: getting leaner to run faster
2024: getting leaner to run faster full steam on tasks we can control As our peers: facing the global weakness on Industrial Automation suffering destocking & softness hitting Japan coping with wait-and-see mood of customers but… facing also the phase-out of main customer on legacy embedded business
Slide 6: 3.5M€ cost saving achieved in FY24 vs FY23 reported
3.5M€ cost saving achieved in FY24 vs FY23 reported, @ constant exchange rates Got rid of external consultants on all activities where internal personnel is now available & trained Right-sized structure supporting legacy Embedded business Activated new cross-Country synergies FY24 opex down 3.5M€ vs
Slide 7: Total opex reduction @5.3M€
total opex reduction @5.3M€ considering full 2023 run-rate 1.9 42.0 - 3.1 US opex down 3.1M€ EU+JP opex down 2.2M€ -2.2 38.6 Total opex reduction @5.3M vs full impact of 2023 new hires & talent retention actions All values in € million Non-recurring costs excluded Opex Salary US EU+JP Opex FY23 runr
Slide 8: New products opening new channels
new products opening new channels differentiated with cybersecurity and pre-integrated software Consolidated Edge: Gen AI Edge AI HW + SW LLM machines New products pre-integrated with NVIDIA Orin family devices 40-13 IEC cybersecure developed NVIDIA inference IEC cybersecure certified certified & Ig
Slide 9: Going forward…
going forward… H2 revenues improving vs H1 order intake in next 60 days will rule final result H2 GPM in line with H1 Customers still releasing orders "last-minute“, but… noticeable increase in customer interest in discussing new business in the past 4-5 months growing number of bid requests compare
Slide 10: Capital Increase asked to Shareholders to finance M&A
Capital Increase asked to Shareholders to finance M&A Why now? To be ready as discussions accelerate To be credible when contacting targets Time is now from a strategic perspective Edge HW market is consolidating It’s the right time in our transformation journey Focused on finding a "tuck-on" we can
Slide 11: Financial update H1 2024
financial update H1 - 2024 #11 #11
Slide 12: 6 months drop driven by legacy business
6 months drop driven by legacy business All values in € million edge AIoT accounts for 57% of total revenues 47.9 0.1 #75% of revenues decrease -1.4 linked to phase out of US legacy embedded customer 23.9 #20% of revenues decrease -17.3 linked to destocking in Japan #Edge AIoT slightly up and will k
Slide 13: Europe is the first area: breakdown by end-customer location
Europe is the first area breakdown by end-customer location #US suffering from mismatch other other between phase-out of main customer 3 on Embedded and phase-in of new 8 % EU % Edge AIoT business JP 37 24 JP 26 % H1 % % H1 #Europe facing postponements of 2023 2024 ramp-up of design wins in IoT, 51
Slide 14: EBITDA margin negative due to volume decrease
EBITDA margin negative due to volume decrease better GM and OPEX savings only partly compensated Sales decline All values in € million 2,698 2,446 -252 1,186 320 -3,081 955 -409 -3,490 -7,988 EBITDA Fx rate EBITDA Lower Better Opex Other EDITDA Non-recurring EBITDA 1H 23 effect 1h 23 FX 24 Volumes G
Slide 15: Balance sheet normalizing after component shortage effects
balance sheet normalizing after component shortage effects All values in € million NFP down 2.7M€ vs year end 2023, NWC down 3.5M€ vs year end 2023 driven mainly for forex effects and investments by collection of trade receivables 23.9 2.0 20.3 -20.6 -5.5 -0.1 -0.6 -0.4 -1.7 -0.1 -23.3 FY FX Cashflo
Slide 16: Key takeaways
@®eurotech key takeaways UNLEASHING THE POWER OF THE EDG!
Slide 17: Key takeaways
key takeaways Q2 better than Q1, yet H1 still Low visibility still the new normal, weak YoY due to legacy business but customers interest & bid requests while Edge AIoT is flat YoY growing in past 4-5 months GPM improving 310bps YoY, Actively searching a tuck-on, InoNet- Opex down 1.7M€ YoY and will