Slide 1: 9M 2024 Results & Business update presentation
9M 2024 Results & Business update presentation November 13, 2024
Slide 2: Disclaimer
Disclaimer This document has been prepared by SECO S.p.A. (“SECO” or the “Company”), for information purposes only, exclusively with the aim of assisting you to understand and assess the activities of SECO. The information contained in this presentation does not purport to be comprehensive and may n
Slide 3: Presenting today
Presenting today Massimo Mauri Lorenzo Mazzini Clarence Nahan Chief Executive Officer Chief Financial Officer Head of Corp. Dev. & IR 3
Slide 4: Key takeaways from the first 9 months of 2024
Key takeaways from the first 9 months of 2024 Continued • 9M24: Net sales at €139.4m, down 14.0% vs. 9M23 resilience in a • Solid and diversified client base in the Edge computing business complex market • Clea revenues at €17.0m in 9M24 (12.2% of sales), up 214 bps vs. 9M23 Best in class • GPM inci
Slide 5: 9M 2024 financial highlights
9M 2024 financial highlights 9M 23 9M 24 Net sales • Continuing destocking trend by key customers led to decreased sales volumes €162.1m €139.4m • Clea revenue at €17.0m in 9M24 vs. €16.3m in 9M23 (+4%) Gross margin • +261 bps 9M24 vs. 9M23 margin increase driven by a better Edge product mix, €80.3m
Slide 6: Net sales and Clea revenue breakdown
Net sales 12% of €139.4m Net sales €17.0m 9M 2024 Net Sales 9M 2024 Clea revenue Net sales breakdown (9M 2024) PKE 5% Others 6% RoW 1% APAC 6% Aerospace & Defense 1% Transport 3% Industrial 30% USA 10% by End by Area Market Vending 37% Fitness 12% EMEA 83% Medical 6% • 9M24 Net sales decreasing by 1
Slide 7: Adjusted EBITDA
Adjusted EBITDA Adj. EBITDA bridge (€m) 23,0% 1 (0,1) 1 2 (22,7) 14,7% 15,1 (14,0) 37,3 (2,3) 7,2 20,4 Adj. EBITDA 9M Δ Net Δ Consumption Δ Operating Δ Costs of services and Δ Payroll Δ Adjustments Adj. EBITDA 9M 2023 sales costs income other operating costs costs 2024 1 Gross margin effect and oper
Slide 8: Adjusted Net financial position
Adjusted Net financial position Adj. Net debt evolution (€m) Net Debt Adj. for extr. payments evolution (€m) 1 2 3 9,0 4,0 5,8 61,0 56,9 56,4 52,0 50,6 FY 23 H1 24 cash H1 24 Q3 cash 9M 24 H1 24 Adj for Q3 cash generation ex. 9M 24 Adj for absorption generation extraordinary extraordinary extraordin
Slide 9: Business update
Business update S=C/
Slide 10: Leading player in one of the fastest-growing end-market in tech
Leading player in one of the fastest-growing end-market in tech Key trends driving demand accelerations TAM Value ($’bn) 40% of OEMs to rely more on tech partners >12% CAGR 29 16 for sophisticated tech solutions 23-28 8 2018 2023 2028 Shift towards embedded systems Increase technological partnership
Slide 11: End-to-end stack to deliver customer value
End-to-end stack to deliver customer value We have built a unique value proposition to fully benefit from the IoT implementation trend and edge AI development To address every Providing extensive Relevant to industrial Needs sets of Data all Stakeholders Compute Monetizable Business Connect Actionab
Slide 12: Clea is increasingly relevant to all key Silicon Vendors
is increasingly relevant to all key Silicon Vendors Geopolitical & secular trends are affecting Designed to support hardware-specific add- core business lines ons and to integrate with SVs SW natively Pressure into pivoting towards other markets Mature software suite, not just a component, (industri
Slide 13: Continuously expanding our Ecosystem
Continuously expanding our Ecosystem Strengthening our group of industry-leading partners with a clear strategy to fuel creativity & boost growth amongst 3rd party users through joint go-to-market strategies Hyperscalers 13
Slide 14: New strategic partnership to make Clea available across all NXP silicon
New strategic partnership to make Clea available across all NXP silicon Hardware Software Go-to-Market • SECO & NXP to enlarge the value • Jointly bring to market a unified • Make IoT platform hardware + software available to all NXP silicon users proposition to their customers • Focus on integratin
Slide 15: New strategic partnership to expand our industrial IoT offerings
New strategic partnership to expand our industrial IoT offerings Hardware Software Go-to-Market • SECO to design 10.1” HMI based on • IoT platform natively • Leverage shared expertise to jointly Raspberry Pi’s new 5th-gen integrated into all Raspberry Pi address business opportunities in Compute Mod
Slide 16: Together to accelerate the development of new IIoT solutions for OEM customers
Together to accelerate the development of new IIoT solutions for OEM customers Hardware Software Go-to-Market • SECO as Qualcomm’s IIoT design • Users can quickly connect • Explore business opportunities from center partner for developing edge to their devices for improved Qualcomm’s network, levera
Slide 17: Clea roadmap overview
roadmap overview 2024 2025 Clea platform Unified interface for all Clea products Price list Single price list for all the Clea Products available (consumption or device based) Clea OS on Edgehog Vertical use cases Clea OS will be available for deployment directly from Edgehog List of potential use c
Slide 18: Edge AI roadmap: from entry-level to high-performance
Edge AI roadmap: from entry-level to high-performance 2024 2025 SOM-SMARC-QCS6490-QCS5430 High-Performance Solution 13 TOPS Up to 45 TOPS Titan 300 TGL-UP3-AI SOM-COMe-CT6-MTL High-Performance Solution Up to 100 TOPS Up to 34 TOPS Up to 100 TOPS SOM-SMARC-MX95 Modular Link MX93 2 TOPS 0.5 TOPS SOM-C
Slide 19: On track to meet Full-Year guidance provided to the market
On track to meet Full-Year guidance provided to the market With business fundamentals gradually bottoming out, we expect revenue growth to be back to positive in the first half of 2025 €180m+ Revenues 180,0 139,4 95,3 Normalized environment for 47,2 2025 with organic growth back to 15% Q1 H1 9M FY g
Slide 20: Why invest in SECO?
Why invest in SECO ? 1 Top 5 player globally in one of the fastest growing end-market in technology 2 Profitable business model focused on high margin custom solutions 3 End-to-end technological partner with unrivalled R&D excellence 4 Fully integrated IoT offering, from edge computing to software s
Slide 21: Q&A
Q&A S=C/
Slide 22: Thank you
Thank you www.seco.com S=C/