B&c Speakers S.p.a. · MIL:BEC
B&c Speakers — Investor Presentation (2024)
43 slides from B&c Speakers's investor presentation, 2024
Slide 1: Investor Presentation
B&C GROUP ~odbs BEC SPEAKERS ig Cretare eM iVENcE
Slide 2: Company overview and market reference; products; financials; Eminence and B&C China
COMPANY OVERVIEW AND MARKET REFERENCE (1-17) PRODUCTS & BUSINESS MODEL (18-22) FINANCIALS (23-30) EMINENCE AND B&C CHINA (31-38)
Slide 3: Company Overview and Market Reference
COMPANY OVERVIEW AND MARKET REFERENCE 1
Slide 4: Company Overview
COMPANY OVERVIEW MARKET LEADER INTERNATIONAL DISTRIBUTION B&C Speakers is a worldwide leader B&C products are sold directly to OEM in the design, production, distribution manufacturers around the globe, as and marketing of professional electro- well as through a network of acoustic transducers. dist
Slide 5: Company Overview – Production Overview
COMPANY OVERVIEW PRODUCTION OVERVEW The R&D Department, with 10% of B&C’s 200 employees, is in constant cooperation with top Pro Audio OEM B&C USA 18S manufacturers across the world. Eminence KY B&C Five production buildings have been B& C Cina merged into a single, state of the art factory in Bagno
Slide 6: Architettura Sonora
ARCHITETTURA SONORA CRAFTED BY SOUND Division of the B&C Speakers Group, Architettura Sonora is a revolutionary designer of unique, high-performance audio solutions and outdoor acoustic experiences, with an increasing imprint in the indoor world. AS, as we call it, has quickly become a pioneer in th
Slide 7: Reference Market
REFERENCE MARKET B&C components are typically applied The total value of the addressable in the Professional Loudspeaker Market, market for B&C Group products in 2022 also known as “PRO”. Within this was € 6,087M, and we are expecting it market, B&C primarily serves the to grow to a value of € 7,706
Slide 8: Addressable Loudspeakers Market
ADDRESS ABLE LOUDSPEAKER PROSUMER COMMERCIAL S AUTOMOTIVE PRO ELECTRONICS AUDIO MARKET • OEM • TOURING & RENTAL • HI-FI • COMMERCIAL AUDIO • AM • INSTALLED LEISURE • HOME THEATRE • PORTABLE SOUND • MUSICAL INSTRUMENT 6
Slide 9: Automotive Audio – Market Segmentation
AUTOMOTIVE AUDIO – MARKET SEGMENTATION PROSUMER AUTOMOTI COMMERCI PRO AUDIO ELECTRONI VE AL AUDIO CS OEM AM Installed by Installed by car maker car user 7
Slide 10: Automotive Audio – OEM and AM
AUTOMOTIVE AUDIO – OEM AND AM PROSUMER AUTOMOTI COMMERCI PRO AUDIO ELECTRONI VE AL AUDIO CS 6.0 Price 5.0 T&R 4.0 Car AM Prosumer Installed 3.0 Portable Audio Leisure 2.0 MI B&C products are focused on the AM market. It is a market that 1.0 Commercial Audio € has its maximum expression in Central an
Slide 11: Pro Audio – Touring & Rental
PRO AUDIO – TOURING&RENTAL PROSUMER AUTOMOTI COMMERCI PRO AUDIO ELECTRONI VE AL AUDIO CS Touring Installed Music Portable & Rental Leisure Instruments Sound Touring & Night club/Bars (MI) Concert Zoos Guitar & Bass Mobile DJ Guitar for Weddings Events Theme parks musicians Sports events Theatre Rent
Slide 12: Pro Audio – Touring & Rental
PRO AUDIO – TOURING&RENTAL PROSUMER AUTOMOTI COMMERCI PRO AUDIO ELECTRONI VE AL AUDIO CS 6.0 Barriers to entry: High Price 5.0 T&R 4.0 Car AM Prosumer Installed 3.0 Portable Audio Leisure 2.0 MI Commercial 1.0 During Covid was the most negatively impacted market due to Audio € 450M pandemic restrict
Slide 13: Pro Audio – Installed Leisure
PRO AUDIO – INSTALLED LEISURE PROSUMER AUTOMOTI COMMERCI PRO AUDIO ELECTRONI VE AL AUDIO CS 6.0 Price 5.0 T&R 4.0 Car AM Prosumer Installed 3.0 Portable Audio Leisure Barriers to entry: High 2.0 MI Commercial With return of spectators, sports stadiums are experiencing 1.0 Audio € 832M recovery. The
Slide 14: Pro Audio – Portable
PRO AUDIO – PORTABLE PROSUMER AUTOMOTI COMMERCI PRO AUDIO ELECTRONI VE AL AUDIO CS 6.0 Price 5.0 T&R 4.0 Car AM Prosumer Installed 3.0 Portable Audio Leisure Barriers to entry: High 2.0 MI Commercial During the last decade, the quality and performance level of Portable Sound and 1.0 Audio € 800M Mus
Slide 15: Pro Audio – Music Instrument
PRO AUDIO – MUSIC INSTRUMENT PROSUMER AUTOMOTI COMMERCI PRO AUDIO ELECTRONI VE AL AUDIO CS 6.0 Price 5.0 T&R 4.0 Car AM Prosumer Installed 3.0 Portable Audio Leisure 2.0 MI It's a market that grew significantly during Covid thanks to 1.0 Commercial Audio € people's willingness to play at least at ho
Slide 16: Prosumer – Market Segmentation
PROSUMER – MARKET SEGMENTATION PROSUMER AUTOMOTI COMMERCI PRO AUDIO ELECTRONI VE AL AUDIO CS Hi-Fi Home Theatre 14
Slide 17: Prosumer Electronics – Hi-Fi and Home Cinema
PROSUMER ELECTRONICS – HI-FI AND HOME CINEMA PROSUMER AUTOMOTI COMMERCI PRO AUDIO ELECTRONI VE AL AUDIO CS 6.0 Price 5.0 T&R 4.0 Car AM Prosumer Installed 3.0 Portable Audio Barriers to entry: Medium Leisure 2.0 MI This market is an expression of quality in terms of sound and 1.0 Commercial € 650M A
Slide 18: Commercial Audio – Market Segmentation
COMMERCIAL AUDIO – MARKET SEGMENTATION PROSUMER AUTOMOTI COMMERCI PRO AUDIO ELECTRONI VE AL AUDIO CS Commercial Audio Shopping centre Hotels Hospitals Service stations Exhibitions Transportation Malls 16
Slide 19: Commercial Audio
COMMERCIAL AUDIO PROSUMER AUTOMOTI COMMERCI PRO AUDIO ELECTRONI VE AL AUDIO CS 6.0 Price B&C reference customers 5.0 T&R 4.0 Car AM Prosumer Ceiling speakers Installed 3.0 Portable Audio Leisure 2.0 MI Commercial 1.0 Installed Commercial demonstrated the Audio € 717M most resilience during pandemic
Slide 20: Products & Business Model
rrODUCTS & BUSINESS — MODEL B&C GROUP rT. wale B&C SPEAKERS) Ciciare EMINENCE
Slide 21: Primary Range of Products
PRIMARY RANGE OF PRODUCTS B&C’s products require higher technology, light weight, reliability, and consistently manufactured transducers, which B&C’s competitors cannot provide. LOW FREQUENCY HIGH FREQUENCY HIGH FREQUENCY COAXIAL DRIVERS OR CONE DRIVERS 27% HORNS 2% COMPONENTS 13% DRIVERS 58% COMBIN
Slide 22: Business Overview – New Opportunities
BUSINESS OVERVIEW NEW CAR AUDIO HI-FI MI NEW OPPORTUNITIE MARKET TRANSDUCERS S Since 2021, B&C We are Thanks to Mosaic, a patented Group is increasing strengthening our acquisition of new transducer its presence in the position in the Hi-Fi Eminence KY, the aimed to have fast-growing Car market by G
Slide 23: Business Model
BUSINESS MODEL Output CUSTOMERS and B&C CUSTOM PRODUCTS R&D CUSTOMERS and 150/180 NEW B&C SALES PRODUCTS PER YEAR AUTONOMOUS PROJECTS CATALOGUE PRODUCTS Manufacturing & Assembling Distribution Suppliers channels FINISHED INDUSTRIAL CUSTOMERS SINGLE PARTS INCOMING (>250) BASED ON B&C PRODUCT COMPONEN
Slide 24: Clients
CLIENTS Around 80% of the Company sales are OEM of custom-made products, sold directly Distributors to these OEMs (Original Equipment Manufacturers). Whereas, the remaining share are catalogue products, that are sold by way of a wide network of distributors, with representation in more than 80 count
Slide 25: Financials
FINANCIA LS 23
Slide 26: Financials – Key Performance Indicators
FINANCIALS KEY PERFORMANCE INDICATORS 2023 has represented the best year in terms of production and in terms of turnover in the whole B&C group history. Number of goods produced (and sold) REVENUES 2023 EBITDA ORDER BACK during the period are greater by 6.5% MARGIN LOG in respect to 2022 YTD. € 94.0
Slide 27: Financials – Growth Prospectives
FINANCIALS GROWTH PROSPECTIVES B&C enjoyed unceasing growth with a record level of orders already confirmed for the end of current year. The view for 2024, is positive, and additional growth is expected to be boosted by Eminence brand sales. In order to fuel such additional growth, B&C is looking fo
Slide 28: Revenues – Geographical Breakdown
REVENUES - GEOGRAPHICAL BREAKDOWN EUROP NORTH E AMERIC 47% A ITALY ASIA 19% 6% PACIFIC MIDDL 18% E EAST 1% LATIN AMERIC A 9% 26
Slide 29: Top-Line Evolution
TOP-LINE EVOLUTION 100 94 GROWTH PROSPECTIVES 90 82.1 In 2023, the Group has shown record 80 revenues for the second year in a row. The turnover for year 2023 has been € 70 94M. 60 56.3 54.5 Eminence contribution to the final 50 45.2 figure amounts to € 2.3M (stemming 40.3 38.4 from September 2023 t
Slide 30: P&L Consolidated
P&L CONSOLIDATED 100,000 94,018 P&L ANALYSIS 90,000 82,102 Gross Margin showed a slight 80,000 improvement (+0.5%) due to a greater 70,000 effenciency of the operating structure together with the downsize of 60,000 56,278 transportation costs. 50,000 45,233 Ebitda was impacted by the acquisition 40,
Slide 31: Quarter Economics
QUARTER ECONOMICS Revenues (€m) EBITDA (€m) EBITDA Margin (%) QUARTER ECONOMICS 30.0 30.0% 26.6%26.7% 26.0% 2023 has shown quarters similar to the 25.0 24.7% 24.2 23.9% 23.8% 25.0% 24.0 best ever recorded in B&C Group 22.9%22.9% 23.0% 23.0% 24.3 22.7 22.8 21.5% history. 20.3% 20.3% 20.5% 20.2 20.7 2
Slide 32: Cash Flow Generation & Dividend Policy
CASH FLOW GENERATION & DIVIDEND POLICY 18.3 FCF produced per year (€M) 2010 - 2023 CASH FLOW GENERATION 11.5 In 2023 B&C Group has recorded the 7.8 7.2 8 best FCF result in its history, € 18.3M. 4.3 3.9 This results represents the sign of a 3.6 3.4 2.8 2.5 full-recovery after the pandemic (which 1.9
Slide 33: Eminence B&C China
EMINENCE B&C CINA B&C GROUP —_ aa weds BEC SPEAKERS Cretare ey iNENCE 31
Slide 34: Eminence Speakers – Acquisition Recap
EMINENCE SPEAKERS Acquisition Recap As of 07/09/2023, B&C Speakers S.p.A. acquires 100% of the share capital of Eminence Speaker LLC, based in Kentucky, U.S.A., from Eminence Holding LLC and, simultaneously, B&C Speakers S.p.A. signs a binding commitment to purchase the assets of Eminence Dongguan E
Slide 35: Eminence Speakers – Synergies
EMINENCE SPEAKERS Distributio The Group aims to exploit synergies n channel achievable on the cost, production and synergies distribution channel side. These synergies are achievable at (almost) zero cost. The goal will be to find the Production Costs most efficient mix that can maximize synergies s
Slide 36: Case History – 18S
CASE HISTORY – 18S 2017 2023 The strategy implemented since the first year of acquisition has focused Eighteen sound srl with its on the following aspects In 2023, the Sound Group subsidiary Sound&Vision, owner of generated revenues of the historical Ciare brand, was approximately € 22M, with a acqu
Slide 37: Eminence Speakers – Investment Plan
EMINENCE SPEAKERS – INVESTMENT PLAN BENEFITS $ 2.24M Cash and Annuity payments; Health insurance savings WAREHOUSE $ 0.17M FACILITY $ 0.33M NEW INVESTMENTS SAFETY $ 0.26M Extend Sprinkler System to PRODUCTION $ 0.24M press area; Estimated tooling run rate for Repair retaining walls, add fall purchas
Slide 38: Prospectives – Eminence and B&C China
PROSPECTIVES – EMINENCE AND B&C CHINA 2024 2026 Reiteration of the strategy deployed with 18S In 2024, B&C Group expects to Significant increase in sales, benefit a straight-away especially for B&C China, which (conservative) € 13.5M could show prospects of doubling contribution from its new two sal
Slide 39: Shareholders
SHAREHOLDERS Equity Shares 5 4 Research&Development International s.r.l. 54,00% . 0 LazardFreres Banque SA 4,60% 0 % Joh. Berenberg, Gossler &Co. KG (EuropeanMicro Cap) 3,60% First capital SpA 3,20% AllianzGlobal Inverstorsseries 2,80% Financiere de l'Echiquier (Echiquer Excelsior) 2,50% Marlborough
Slide 40: Shares – Price and Volume
SHARES – PRICE AND VOLUME Share Graph €20.00 140,000 €19.00 120,000 €18.00 100,000 €17.00 80,000 €16.00 60,000 €15.00 40,000 €14.00 20,000 €13.00 €12.00 - 38
Slide 41: Contacts
CONTACTS Investors Relations: Office: E-mail: Lorenzo Coppini-CEO Via Poggiomoro, 1 – Vallina, investors@bcspeakers.co Francesco Spapperi-CFO Bagno a Ripoli (FI), 50012, Italy m Davide Norelli-Controller Phone: +39 055 6572303 39
Slide 42: Safe Harbour Statement
SAFE HARBOUR STATEMENT Certain statements in this slide show, Consequently, no forward-looking including those addressing the statement can be guaranteed and Company’s beliefs, plans, objectives, actual future results, performance, or estimates or expectations of possible achievements may vary mater
Slide 43: Thank You
THANK YOU