Esautomotion Spa · MIL:ESAU
Esautomotion Spa — Investor Presentation (May 2020)
32 slides from Esautomotion Spa's investor presentation, May 2020
Slide 1: May 2020
Ce UTM OT LON, ~ May 2020
Slide 2: Company Overview
Section 1 Company Overview 2
Slide 3: At a Glance
At a Glance 3 FY19 Financials • Esautomotion (ESA) develops and sells Integrated Mechatronic CNC Systems (Software and HW), Motors, Drivers and other tools for the €18.6mn 70-80% automation of industrial production machines Revenue Foreign Revenue +0.5% YoY • ESA is the only manufacturer in the worl
Slide 4: At a Glance
At a Glance 4 FY19 Consolidated Financial Results FY19 Esautomotion S.p.A. Results €18.6mn 70-80% €2.0mn €0.655mn Revenue Net Income Foreign Revenue Dividend +0.5% YoY +38% YoY €3.4mn 18.2% EBITDA EBITDA margin -32.9% YoY -9pp YoY FY19 Key Numbers €1.7mn 9.1% 57 40 Net Income Net Income margin Emplo
Slide 5: Key Milestones
Key Milestones 5 Since the management buyout, our strategy is based on the following drivers of growth: FOCUS ON SYNERGIC AND PROFITABLE MARKET NICHES In FY19 good business resilience in a weakening HARDWARE OPTIMIZATION AND A COMPLETE FULL-PACKAGE macroeconomic scenario and sector INTERNATIONALIZAT
Slide 6: Footprint and Distribution
Footprint and Distribution 6 ITALY R&D 1 Department BARCELONA Sales SHANGHAI 1 Subsidiary Production 1 Site Other Brasil 8.8% 4.6% San Marino 7.3% Spain&Portugal 7.4% Italy SAN PAOLO 49.4% Turkey 10.0% 1 Production Site Headquarter Subsidiary China 12.5% Value Added Reseller Note: Data as of Decembe
Slide 7: Management and BoD
Management and BoD 7 Management Board of Directors FRANCO FONTANA GIAN MAURIZIO ARGENZIANO Chairman and Founder Independent Director Franco Fontana boasts 18 years of experience in the Machine Gian Maurizio Argenziano is CEO and founder of Arventia Group. He Tools/CNC sector. He was the CEO of DMTG
Slide 8: Business Overview
Section 2 Business Overview 8
Slide 9: Products (1/2)
Products (1/2) 9 INTEGRATED CNC SYSTEM… …FOR CLIENTS’ AUTOMATED MACHINES to process Metal, Wood, Marble and Other Materials The Brain: CNC SOFTWARE CNC Software integrated with HW sends commands to determine and control machine movements The Nervous System: DRIVERS Managed by CN, control motor’s spe
Slide 10: Products (2/2)
Products (2/2) 10 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 11: Customer Service – Teleassistance
Customer Service – Teleassistance 11 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 12: R&D
R&D 12 €1.1mn 26 €6.8mn R&D Investments R&D R&D Investments 2012-19 R&D Investments (€mn) In FY19 Employees* since 2012 ALL HW, SW, APPLICATIONS SOLD ARE UNDER ESA’S IP • Growing investments in R&D have enabled ESA to create innovative and high-quality solutions at competitive costs • Development an
Slide 13: Areas of R&D Investments
Areas of R&D Investments 13 Hardware Software 4.0 / Networking New devices Intel versus ARM technology • 3D Full interconnection • Tool (cpu used for Smartphone) • CAD between machines • Sensors • Predictive maintenance • Laser measurement • Tool changer • Position corrector • Laser 5Axis head Perfo
Slide 14: Customers: growing old ones and adding new ones
Customers: growing old ones and adding new ones 14 Customer Loyalty Dynamics On average, around 80% of the 2011-2019 annual turnover was generated by historical and recurring customers 13.7% CAGR 2011-2019 of sales from recurring customers
Slide 15: Customer Acquisition and Interaction
Customer Acquisition and Interaction 15 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 16: Case Studies (1/2)
Case Studies (1/2) 16 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 17: Case Studies (2/2)
Case Studies (2/2) 17 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 18: Market
Section 3 Market 18
Slide 19: CNC market: focus on niches to dominate them
CNC market: focus on niches to dominate them 19 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 2021F 2022F 2023F
Slide 20: Features of market applications
Features of market applications 20 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 21: Main Competitors
Main Competitors 21 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 22: Counter-cyclical strategy when there are downward market expectations
Counter-cyclical strategy when there are downward market expectations 22 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 throug
Slide 23: Key Financials
Section 4 Key Financials 23
Slide 24: FY19 Financial Results
FY19 Financial Results 24 REVENUE EBITDA • The world economic environment and the investment goods market recorded a sharp slowdown during 2019. UCIMU estimates a 4.9% contraction for the Italian machine tools sector in 2019 . • The CNC market recorded a reduction in production volumes between 15%-3
Slide 25: Our Vision and Mission
Our Vision and Mission 25 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 26: FY20 Outlook: Esautomotion Scenario
FY20 Outlook: Esautomotion Scenario 26 LOKDOWN • 3 weeks in Italy • 4 weeks in China and Brazil 1H 2020 Expected Sales 2H 2020 Expected Sales -15%YoY -20%YoY (Prudential Forecast) RECOVERY STRATEGY TO ACHIEVE A FY20 ALMOST IN LINE WITH FY19 • Margins expansion • NWC reduction • PFN improvement (€7mn
Slide 27: More Opportunities
More Opportunities 27 More Efficient More Time Lower Costs Assistance for R&D More Remote Remote Assistance in M&A Training the Future
Slide 28: Appendix
Section 5 Appendix 28
Slide 29: FY19 Income Statement
FY19 Income Statement 29 €/000 FY18 FY19 YoY Revenues from sales and services 17,941 18,335 2.2% Other Revenues 535 227 -57.6% Total Revenues 18,476 18,562 0.5% Raw materials and change in stocks (9,137) (10,083) 10.4% of semi-finished/finished goods Cost of Services (2,559) (3,036) 18.6% Personnel
Slide 30: FY19 Balance Sheet
FY19 Balance Sheet 30 €/000 FY18 FY19 Inventory 3,898 3,967 Trade receivables 6,650 6,899 Trade payables (4,291) (3,801) Other receivables (Payables) (414) (449) Provisions (262) (289) Net Working Capital 5,581 6,327 Goodwill 98 98 Intangible fixed assets 1,210 1,174 Tangible fixed assets 677 803 RO
Slide 31: Shareholder Structure and Stock Performance
Shareholder Structure and Stock Performance 31 Shareholder Structure Stock Performance Since IPO Market 20.59% Franco Fontana * 34.56% Treasury shares 2.41% Arventia S.p.A. 4.81% Fintel S.r.l. Market Data 6.94% IPO Date 6/7/2018 IPO Price 2.9 Gianni Senzolo ** 30.69% Price as of May 22nd, 2020 1.8 D
Slide 32: ESAUTOMOTION S.p.A. Viale della Meccanica, 23/1 41012 Carpi (MO)
ESAUTOMOTION S.p.A. Viale della Meccanica, 23/1 41012 Carpi (MO) +39 059 851414 info@esautomotion.com