Marzocchi Pompe S.p.a. · MIL:MARP
Marzocchi Pompe — H1 2023 Earnings Presentation
42 slides from Marzocchi Pompe's earnings presentation, Oct 5, 2023
Slide 1: 1H-2023 Results Presentation
1H-2023 RESULTS PRESENTATION 5 October 2023
Slide 2: Disclaimer
Disclaimer Privacy The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced with
Slide 3: Agenda
Agenda Company at a Glance 1H 2023 Results & Outlook Achievements Market & Competitive Positioning Appendix Business Overview 3
Slide 4: Marzocchi Pompe at a glance: world leader in top-performing products
Marzocchi Pompe at a glance: world leader in top-performing products Marzocchi Pompe is a leading world player in the design, production and marketing of high performance external gear pumps and Company motors, which are used in sectors like: industrial (textile machines, machine tools, plastic inje
Slide 5: Shareholders & Management: full alignment of interest
Shareholders & Management: full alignment of interest TOP MANAGEMENT BOARD OF DIRECTORS SHAREHOLDERS Paolo MARZOCCHI Paolo MARZOCCHI Main Shareholder, Free Float 24,45% Executive Chairman Executive Chairman Carlo MARZOCCHI TABACCHI Vice Chairman Gabriele BONFIGLIOLI CEO Treasury Shares Guido NARDI 0
Slide 6: 1H 2023 Results
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Slide 7: 1H 2023 Results: new half-year sales record & very strong margin
1H 2023 Results: new half-year sales record & very strong margin NET SALES UP 4.4% AT EURO 26.6 MLN, +15.7% ON 2H 2022, ALLOWING FOR MARKET SHARE GAINS THE CORE BUSINESS SALES REACHED EURO 21.3 MLN IN THE FIRST HALF OF 2023, +2.7% Y-O-Y INCREASE AND A HEALTHY +17% ON THE SECOND HALF OF 2022 THANKS
Slide 8: All-time high revenues at € 26.6 mln, EBITDA margin jumped to 18.4%
All-time high revenues at € 26.6 mln, EBITDA margin jumped to 18.4% • Revenues reached Euro 26.6 million in 1H-23 Sales Revenue and EBITDA (€m) (+4.4%), marking once again Marzocchi Pompe all- time high for the half-year. A notable result 25,5 26,6 especially considering that the it was reached in a
Slide 9: Core Business reached 80% of revenues, Automotive sales up
Core Business reached 80% of revenues, Automotive sales up 11.8% Revenue Breakdown • Revenues by Core market segments (Sales Network, Industrial and Mobile) accounted for 23,5% 24,1% 80% of Total Revenues, reaching Euro 21.3 million (+2.7% vs. 1H 2022), especially driven by Core Business Marzocchi P
Slide 10: Excellent Profitability growth: EBIT +142% and Net Profit +127%
Excellent Profitability growth: EBIT +142% and Net Profit +127% EBIT Adjusted and Net Result (€m) • EBIT increased by 142% Euro 3.1 million, from Euro 1.3 million at 30 June 2022, as a 4 result of sales growth and higher cost 3,5 3,4 savings 3 • Adjusted EBIT, calculated net of 2,5 revaluation depre
Slide 11: Net Financial Position reflects one of Marzocchi’s strong points
Net Financial Position reflects one of Marzocchi’s strong points Net Financial Position Evolution (€m) 3,0 1,0 • Net Financial Debt increased to Euro 8.3 (1,0) million at 30 June 2023, +5.6% vs. Euro 7.8 (3,0) million at 31 December 2022 due to the (5,0) natural expansion of Working Capital tied to
Slide 12: Achievements
Achievements
Slide 13: New ELIKA “Modular” upgrades Marzocchi top-performing pump
New ELIKA “Modular” upgrades Marzocchi top-performing pump IN 2019 THE NEW ELIKA DEPARTMENT WAS COMPLETED THROUGH AN INVESTMENT OF MORE THAN 1 MILLION EUROS IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE FLAGSHIP PRODUCT CHARACTERIZED BY LOW NOISE & H
Slide 14: New Plant with Photovoltaic Panels, New Warehouse… more to come
New Plant with Photovoltaic Panels, New Warehouse… more to come STEP 1 - ENLARGEMENT & RATIONALIZATION OF PRODUCTION CAPACITY AND LOGISTICS IN ZOLA PREDOSA PLANT IN OCTOBER 2022 MARZOCCHI POMPE HAS PURCHASED AN INDUSTRIAL PROPERTY OF APPROX. 4800 SQUARE METRES, OF WHICH APPROX. 1800 COVERED, NEXT
Slide 15: Marzocchi is present to all major global trade fairs in 2023
Marzocchi is present to all major global trade fairs in 2023 Bauma ConExpo India – 31.01.2023 Mobile Exhibition - Hall 10, Booth L102 IFPE ConExpo Las Vegas – 13.03.2023 World Mobile Exhibition – South Hall, Booth 81745 Hannover Messe – 17.04.2023 World Fluid Power Exhibition – Booth H5.F18
Slide 16: 1H 2023 Highlights & Outlook
1H 2023 Highlights & Outlook MARZOCCHI POMPE REPORTED RECORD HAL-YEAR RESULTS BOTH IN TERMS OF SALES AND PROFITABILITY, IN SPITE OF LESS BRIGHT MARKET VS. 2022 ON A GLOBAL BASIS. THE COMPANY KEEPS ON INVESTING BOTH TO IMPROVE PRODUCTION PROCESS AND EFFICIENCY AND TO EXPAND FURTHER ITS MARKET SHA
Slide 17: Sustainability
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Slide 18: ESG Achievements confirm strong commitment towards Sustainability
ESG Achievements confirm strong commitment towards Sustainability • Sustainability Report – Marzocchi has started a process of analysis aimed at identifying methods and timing for this activity, in order to improve its footprint to enhance value creation • Marzocchi Certifications • ESG Score by Env
Slide 19: ESG Achievements: New «Green» Projects in 2023
ESG Achievements: Strong commitment towards Sustainability (2/2) New «Green» Projects in 2023 • Treedom Forest – In February Marzocchi launched the creation of the “Marzocchi Pompe Forest”, giving away the first 300 trees to its employees • This project will not only bring a contribution to carbon d
Slide 20: A brand new Security Operation Center
A brand new Security Operation Center • In March 2022 Marzocchi Pompe, in partnership with Yarix, finalized a C SOC + Cynet project • Marzocchi’s Cognitive Security Information Center C SOC will operate the: o H24x7x365 monitoring of company networks o Physical and Biometric Security of last generat
Slide 21: Market & Competitive Positioning
Market & Competitive Positioning
Slide 22: Fluid Power market and growth forecasts
Fluid Power market and growth forecasts The Fluid Power market is made up by the hydraulic segment and the pneumatic segment. In Asia, Europe and USA the Fluid Power home1 market went from Euro 25.7 billion in 2000, to around Euro 41.5 billion in 2020 of which Euro 29.9 billion (72%) stemming from t
Slide 23: Focus on hydraulic pumps’ market
Focus on hydraulic pumps’ market Within the Hydraulic home1 market, the pumps’ segment is estimated by ISC to be around Euro 4.9 billion in 2020 (17%), of which Euro 3.2 billion (11%) coming from the reciprocating pumps’ segment (axial and radial piston pumps) and Euro 1.8 billion (6%) from the rota
Slide 24: Competitive positioning
Competitive positioning Characteristic Quality & Customer Gear Pumps Fluid Power Competitiveness Quality Range Customization vs Price vs Price Company Performance service Range Marzocchi Pompe Bosch Rexroth Bucher Casappa Concentric Galtech/Interpump Hema / DB HPI / JTech Parker Roquet Salami Turoll
Slide 25: Product Quality & Performance
Leadership in external gear pumps market + Product Quality & Performance Source: Marzocchi Pompe SpA management estimates - - Product Customization/ Customer service + 25
Slide 26: Back up
Back up
Slide 27: MP core business: manufacturing of external gear pumps and motors
MP core business: manufacturing of external gear pumps and motors • The pumps have the function of transferring the fluid from a tank to an actuator within an oil-hydraulic circuit. (for example a cylinder that drives the shovel of an excavator). This transfer from the suction circuit to the deliver
Slide 28: Overview of pump composition and application examples
Overview of pump composition and application examples The pumps are composed of the following main parts: body, flange, cover and bushings in aluminium, and gears (driving and driven wheel) in steel. For some types of products, the flange and the cover can be made out of cast iron. Further component
Slide 29: Product applications
Product applications Medical equipment Gardening machines Actuators for surgical tables, diagnostic equipment, latest- In this type of application it is essential that oil-hydraulic generation stretchers, dental chairs: in general, for small pumps and motors guarantee the complete absence of medical
Slide 30: Technological innovation and quality standards
Technological innovation and quality standards The Group's business model is focused on the design, production and marketing of high-performance external gear pumps and motors. The Company manufactures almost all the main components within its own production sites and uses the historical brand “Marz
Slide 31: Target markets
Target markets Core market revenues include Industrial and Mobile machines applications and represent 80.2% of total 2022 revenues, including sales to distributors/sales network, which alone contribute to 37.5% of MP’s total sales(*) FLUID POWER Core Automotive Industrial Mobile Machines Possible ap
Slide 32: Main client composition
Main client composition • The company benefits from a diversified client base for the Industrial and Mobile machine sectors, having their top 3 clients making up only 9.7% of sales and the top 10 representing 19.6%. The Automotive sector, on the other hand, has fewer clients making up for most of it
Slide 33: Global distribution network
Global distribution network Marzocchi Pompe relies on an international distribution network present in over 50 countries. Products are distributed through various channels, such as direct sales, distributors, sales1, American branch operations and Chinese branch operations Distribution network’s hig
Slide 34: Investment highlights
Investment highlights • The Hydraulic market is large, estimated to be around Euro 8.6 billion in 2020 in Europe (Source: CETOP) and Large target market Euro 1.9 billion in 2020 in Italy (Source: Assofluid) experiencing growth • Evidence of upward trend of Italian hydraulic market in the 2009-2018 p
Slide 35: Organizational structure and production sites
Organizational structure and production sites • Marzocchi Pompe can count on a team of professionals with consolidated experience. As of the 1st of January 2023 the workforce consists of 260 resources (of which 245 are permanent employees), with an heterogeneous background of professional skills tha
Slide 36: History
History Main operative milestones Start-up of large-scale production In November 2020, Construction of a of the Elika pump, an innovative production unit in On 16th July 2019 listing on set-up of the joint- product with low noise and high venture "Marzocchi Ostellato (FE) with the AIM market, openin
Slide 37: Consolidated Profit & Loss
Consolidated Profit & Loss Eur 000 30-Jun-23 30-Jun-22 Sales Revenue 26,626 25,502 100% 100% WIP changes 317 (218) Other revenues 511 435 PRODUCTION VALUE 27,455 25,719 Raw material consumption (6,872) (25.5%) (6,548) (25.9%) Service costs (7,225) (26.8%) (7,077) (28.0%) Costs for use of third-party
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet Eur 000 30-Jun-23 31-Jun-22 A) NET FIXED ASSETS 16,811 17,512 Intangible fixed assets 911 1,065 Tangible fixed assets 14,464 14,907 Financial fixed assets 1,436 1,540 B) NET WORKING CAPITAL 15,498 13,518 Inventories 14,235 14,008 Assets intended for sale 0 0 Advances from
Slide 39: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Eur 000 30-Jun-23 31-Dec-22 30-Jun-22 Operating profit [EBIT] 3,074 2,714 1,269 Tax effect (585) (618) (330) Change in funds (481) (143) 192 Provisions and write-downs 1,881 4,843 2,279 Income cash-flow 3,889 6,796 3,410 Change in working capital Inventories (227) (1
Slide 40: Focus on family and management Buy-out
Focus on family and management Buy-out During 2018 the company underwent a restructuring procedure that modified the shareholding structure. As of today, the company is owned by Paolo Marzocchi. The operation was completed through the creation of a financial debt with Banca di Bologna, which allowed
Slide 41: Disclaimer
Disclaimer Privacy The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced with
Slide 42: Contacts
CONTACTS Marzocchi Pompe S.p.A. ir@marzocchipompe.com Integrae SIM S.p.A. – Euronext Growth Advisor Francesco D’Antonio francesco.dantonio@integraesim.it Diego Carmignani diego.carmignani@integraesim.it CDR Communication - Investor & Media Relations Paola Buratti, Investor Relations paola.buratti@cd