Slide 1: 1H 2023 Results
1H 2023 RESULTS San Vendemiano (Treviso, Italy) 26 September 2023
Slide 2: Disclaimer and Notes
DISCLAIMER AND NOTES This document has been prepared by SOMEC S.p.A. (the ‘Company’) solely for the purposes of this presentation. This document may not be reproduced or distributed in whole or in part by any other person with any way than the Company. The Company takes no responsibility for the use
Slide 3: Topics on the Agenda
TOPICS ON THE AGENDA A half-year featuring a strong growth in revenues (+26%), new orders totalling 111 €m and improving profitability (EBITDA +7.4%), despite the toll taken once again by a further across-the-board increase in production costs Financial management impacted by higher business volumes
Slide 4: Revenues
REVENUES STRONG GROWTH CONTINUED, AFTER +27% REACHED IN FY 2022 TOTAL REVENUES €m - IAS/IFRS REVENUE BREAKDOWN BY BU €m - IAS/IFRS (*) 21.6% 1H 2023 total growth: Naval Architecture and +26.0% 1H 2022 25.0% Building Façades 191.6 Organic growth: Professional Kitchens 58.2% 1H 2023 152.0 +16.9% 20.2%
Slide 5: Order Collection
ORDER COLLECTION €111M WORTH OF NEW BUSINESS IN H1, SYNERGIES BETWEEN FABBRICA AND MESTIERI USA Commercial building in Boston -- Subject: design, engineering and production of over 22,000 square metres of curtain walls 32 $m NAVAL ARCHITECTURE AND Awarded to: Fabbrica 34-storey office building in Ne
Slide 6: Order Backlog
ORDER BACKLOG DROP RELATED TO THE CYCLICAL DOWNTURN OF THE CRUISE SECTOR BACKLOG EVOLUTION €m BACKLOG BREAKDOWN BY BU €m 11.7% 13.1% Naval Architecture a 17.0% 31 Dec. 2022 923 934 18.5% Professional Kitchens 826 921 845 30 June 767 2023 71.3% Mestieri - Personalized Interiors 68.4% 31 Dec. 2020 30
Slide 7: Operating Profitability
OPERATING PROFITABILITY EBITDA IMPROVING YOY, ACCELERATION EXPECTED IN H2 EBITDA AND EBITDA MARGIN OF THE GROUP €m • EBITDA +0.7 €m vs. H1 2022, which was affected by the revision 6.0% 5.1% of the full-life margins of ongoing 4.5 -3.9 contracts 1H 2023 9.8 Performance: 9.8 • Revenue profitability do
Slide 8: Naval Architecture and Building Façades
NAVAL ARCHITECTURE AND BUILDING FAÇADES PROFITABILITY STILL COMPRESSED BY INFLATION EFFECTS ON NEW SHIPBUILDING REVENUES OF THE BU €m • Naval segment: - delays and deferrals at construction sites, due to no fault of progress in line with expectations of ongoing contracts, despite Somec Fully organic
Slide 9: Professional Kitchens
PROFESSIONAL KITCHENS SLIGHT PROGRESS DRIVEN BY THE CRUISE BUSINESS REVENUES OF THE BU €m Fully organic 1H 2023 growth: 30.8 33.9 +10.0% • Revenue and EBITDA growth linked to progress of Oxin’s shipbuilding contracts 1H 2022 1H 2023 • Weak sales volumes for other companies belonging to the division
Slide 10: Mestieri – Personalized Interiors
MESTIERI – PERSONALIZED INTERIORS IN LINE WITH FY 2023 REVENUE TARGET CLOSE TO €100M REVENUES OF THE BU €m • contracts compared to 1H 2022 1H 2023 total growth: Positive organic growth despite different timing of refitting +45.8% 48.0 (*) Organic growth: +3.7% • Revenues in H1 2022 driven by 14 €m r
Slide 11: Net Profitability and Cash Generation
NET PROFITABILITY AND CASH GENERATION MACROECONOMIC SCENARIO IMPACTING ON FINANCIAL MANAGEMENT AND WORKING CAPITAL CONS. NET RESULT AND CONS. NET MARGIN €m CASH GENERATION (ABSORPTION) €m 1H 2022 1H 2023 1H 2022 Adj. 1H 2022 1H 2023 Free cash flow 1.0 from operating 16.5 12.1 activities -0.4 Free ca
Slide 12: Net Financial Position
NET FINANCIAL POSITION WORSENING DUE TO WORKING CAPITAL DYNAMICS EVOLUTION OF NET FINANCIAL POSITION ex-IFRS16 €m 3.0 3.4 3.8 2.9 0.6 (9.8) 12.2 70.4 • Cash flow from operating activities down 8 €m (slide 11) 54.3 (23,2) • Impact of the acquisition of Gino Ceolin amounting to 3.8 €m, including: NFP
Slide 13: The Strategy for H2
THE STRATEGY FOR H2 NEW AND MORE TARGET-ORIENTED MANAGEMENT ACTIONS TO RECOVER PROFITABILITY BACKGROUND SOMEC’S STRENGHTS Naval architecture and building façades • Fast-paced interest rate • Recovery of productivity and profitability of order backlog • Positive trends and macro- • hikes, impacting t
Slide 14: Guidance for 2023
GUIDANCE FOR 2023 GUIDANCE UPDATE, BUT FY RESULTS STILL HIGHER THAN 2022 FY 2022 GUIDANCE RESULTS (March 2023) FY 2023 UPDATED GUIDANCE • Revenues 328.8 €m 360+ €m well above 360 €m Mestieri revenues close to 100 €m confirmed • Ebitda 23.2 €m 30+ €m between 26 and 29 €m • Net financial position (ex-
Slide 15: Topics on the Agenda
TOPICS ON THE AGENDA A half-year featuring a strong growth in revenues (+26%), new orders totalling 111 €m and improving profitability (EBITDA +7.4%), despite the toll taken once again by a further across-the-board increase in production costs Financial management impacted by higher business volumes
Slide 16: Growth Pillars
GROWTH PILLARS MEDIUM/LONG-TERM DEVELOPMENT POTENTIAL REMAINS UNCHANGED MEGATREND IMPACT ON MARKET IMPACT ON SOMEC • • ARCHITECTURE Expansion of cruise ship fleets New naval orders • • • NAVAL Leisure time Entrance of new cruise operators in the luxury Structural increase in refitting activities • s
Slide 17: Mestieri
MESTIERI DEVELOPMENT JOURNEY OUTLINED CONTINUES AT A FAST PACE • Management empowerment Flavio Chiari appointed CEO of Mestieri S.r.l. and Head of the Division He has gained more than 30 years’ experience in companies in the engineering and construction sector, including Technip Italy, Techint, Perm
Slide 18: Appendix
APPENDIX • Income Statement reclassified • Balance Sheet reclassified • Net Financial Position • Cash Flow Statement reclassified
Slide 19: Income Statement - Reclassified
INCOME STATEMENT - RECLASSIFIED In Euro thousand 1H 2023 % 1H 2022 % ∆ ∆% Revenue from contracts with customers 190,146 99.2% 150,575 99.1% 39,571 26.3% Other revenues and income 1,442 0.8% 1,427 0.9% 15 1.1% Total revenues 191,588 100.0% 152,002 100.0% 39,586 26.0% Materials, services and other cos
Slide 20: Balance Sheet - Reclassified
BALANCE SHEET - RECLASSIFIED In Euro thousand 30.06.2023 31.12.2022 Intangible assets 58,761 59,517 of which Goodwill 37,951 36,699 Tangible assets 19,791 20,893 Right-of-use assets 28,297 27,387 Investments in associates 301 351 Non-current financial assets 231 233 Other non-current assets and liab
Slide 21: Net Financial Position
NET FINANCIAL POSITION In Euro thousand 30.06.2023 31.12.2022 ∆ A. Cash and cash equivalents 52 71 (19) B. Bank deposits 38,990 54,273 (15,283) C. Total liquidity (A+B) 39,042 54,344 (15,302) D. Current financial assets 5,139 4,608 531 E. Current bank debt (22,659) (27,756) 5,097 F. Current portion
Slide 22: Cash Flow Statement Reclassified
CASH FLOW STATEMENT RECLASSIFIED 1H 2023 1H 2022 Cash flows from operating activities (7,953) 16,514 Cash flows from investing activities (1,931) (4,451) Free Cash Flow (9,884) 12,063 Cash flows from financing activities (4,955) 2,507 Effect of exchange rate changes on cash and cash equivalents (463
Slide 23: Next Events and IR Contacts
NEXT EVENTS IR CONTACTS 27 September 2023 Le Eccellenze del Made in Italy organized by Intermonte Milano, Hotel Westin Palace 11 October 2023 2023 Italian Excellences Conference Andrea Moretti organized by Virgilio IR and Intesa Sanpaolo Investor Relations Manager Paris, Le Bristol Via Palù, 30 - 31