9M 2024
Financial Results
Cavriago, 7th November 2024
Disclaimer
This document has been prepared by Landi Renzo S.p.A for use during meetings with investors and financial analysts and is solely for information purposes. The information set out herein has not been verified by an independent audit company. Neither the Company nor any of its subsidiaries, affiliates, branches, representative offices (the "Group"), as well as any of their directors, officers, employees, advisers or agents (the "Group Representatives") accepts any responsibility for/or makes any representation or warranty, express or implied, as to the accuracy, timeliness or completeness of the information set out herein or any other related information regarding the Group, whether written, oral or in visual or electronic form, transmitted or made available. This presentation contains forward looking statements regarding future events and future results of Landi Renzo S.p.A. (the "Company") that are based on the current expectations, estimates, forecasts and projections about the industries in which the Company operates, and on the beliefs and assumptions of the management of the Company. In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs, return on equity, risk management, competition, changes in business strategy and the acquisition and disposition of assets are forward looking in nature. Words such as 'expects', 'anticipates', 'scenario', 'outlook', 'targets', ' goals', 'projects', 'intends', 'plans', 'believes', 'seeks', 'estimates', as well as any variation of such words and similar expressions, are intended to identify such forward looking statements. Those forward looking statements are only assumptions and are subject to risks, uncertainties and assumptions that a re difficult to predict because they relate to events and depend upon circumstances that will occur in the future. Any forward-looking statements made by or on behalf of the Company speak only as of the date they are made. Except as required by applicable laws and regulations, the Company assumes no obligation to provide updates of any of the aforesaid forward looking statements. Under no circumstances shall the Group and/or any of the Group Representatives be held liable (for negligence or otherwise) for any loss or damage howsoever arising from any use of this
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Negative dynamics of Automotive sector penalize 9M results of Green Transportation, while order intake acceleration shows signs of recovery for Clean Tech Solutions
Green
Transportation
(Automotive)
Clean Tech
Solutions
(Infrastructure)
Capital
Increase
- 9M 2024 revenues accounted for 142,0 M€ (-8,4% vs. 9M 2023), highly penalized by the difficulties emerging in the automotive market. The revenues decrease has affected the main customer of the OEM-PC segment; however, also OEM-MHD volumes show a decline in the third quarter compared to last year
- Volume decrease has strongly affected profitability, causing a negative EBITDA adjusted over the 9M period
- Management efforts to reduce Net Working Capital absorption have partly mitigated impact of negative profitability on cash absorption; cash position in the quarter has improved, thanks also to the first phase of Capital Increase (15 M€)
- Revenues continue to be below previous year level (-15,7% vs. 9M 2023), due to end 2023/ beginning 2024 slow order intake; however, order entry acceleration in the third quarter demonstrates a significant recovery of the traditional CNG business and a progressive uptake of RNG/ hydrogen market
- Low volumes and higher incidence of non-compressible costs (e.g. engineering), affected the product profitability
- Tight management of Net Working Capital mitigated financial impact on NFP, decreased by 0,1 M€
- 9M 2024 financial statements reflect the first phase of the Capital Increase subscribed by the Major Shareholders (15 M€) within the framework of the agreements signed 1st august 2024 among company's majority Shareholders, Invitalia1 and Banks, that will grant to the Company a capital increase of 40-45 M€ and the amendment of the loan agreements
AM: Aftermarket MHD: Medium and Heavy Duty PC: Passenger Car | 3 |
(1) Invitalia - "Agenzia nazionale per lo sviluppo", acting as manager of the "Fondo salvaguardia imprese" promoted by MIMIT - Ministry of Enterprises and Made in Italy
Green Transportation negative EBITDA adj. penalizes Group's results, while Clean Tech Solutions contributes with positive figures
M€; % | Green | Clean Tech | LRG | |||||||||
Solutions | ||||||||||||
Transportation | ||||||||||||
9M 2024 | 9M 2024 | 9M 2024 | 9M 2023 | delta | delta % | |||||||
Revenues | 142,0 | 55,8 | 197,7 | 221,1 | -23,4 | -10,6% | ||||||
Adj. EBITDA | -2,3 | 0,6 | -1,7 | 4,6 | -6,3 | |||||||
% on rev. | -1,6% | 1,0% | -0,9% | 2,1% | ||||||||
EBITDA | -5,5 | -0,4 | -5,9 | -1,1 | ||||||||
-4,8 | ||||||||||||
% on rev. | -3,9% | -0,7% | -3,0% | -0,5% | ||||||||
EBIT | -15,2 | -2,5 | -17,7 | -13,9 | ||||||||
-3,8 | ||||||||||||
% on rev. | -10,7% | -4,4% | -8,9% | -6,3% | ||||||||
EBT | -27,2 | -23,0 | ||||||||||
-4,2 | ||||||||||||
% on rev. | -13,7% | -10,4% | ||||||||||
Net Result | -27,3 | -28,6 | ||||||||||
1,3 | ||||||||||||
Highlights
- 9M revenue gap compared to 2023 reflects a volume drop occurred in both Green Transportation (mainly in the third quarters) and Clean Tech Solutions (mainly in the first two quarters)
- Similarly, negative profitability of Green Transportation is mainly driven by the slowdown occurred in Q3 in the entire Automotive segment, while gradual recovery of orders in Clean Tech Solution has turned EBITDA adj. to positive figures
4
Automotive industry critical situation impacts OEM segments (PC and MHD), leading to negative profitability and Net Financial Position deterioration
M€; %
Green
Transportation
(Automotive)
9M 2024 | 9M 2023 | delta | delta % | |||||
Revenues | 142,0 | 155,0 | -13,0 | -8,4% | ||||
Adj. EBITDA | -2,3 | 1,3 | -3,6 | |||||
% on rev. | -1,6% | 0,9% | ||||||
EBIT | -15,2 | -13,8 | -1,4 | |||||
% on rev. | -10,7% | -8,9% | ||||||
9M 2024 | FY 2023 | |||||||
NWC | 46,7 | 38,1 | ||||||
Highlights
-
Slowdown of volumes in the higher-marginsegment OEM-MHD in Q3, together with a decrease in revenue from the main OEM-PCclient cause a turnover reduction compared to the previous year (-
13.0 M€, -8.4%) - Higher fixed cost vs. 2023 and a less favorable mix led to a negative Adjusted EBITDA (-2,3 M€)
- NFP increases by 15.4 M€ vs. FY 2023 due to negative profitability and NWC absorption in the first months of the year (reduction of debt with suppliers, slightly compensated by Inventory and Credit reduction), despite the first phase of Capital Increase (15 M€) occurred in the third quarter
NFP (1) | 97,4 | 82,0 | |
(1) Net of IFRS 16, derivatives fair value effect and debt for share capital acquisition | 5 |
Value of Production improvement in Q3 turns 9M EBITDA adj to positive; stable Net Financial Position due to Net Working Capital reduction
M€; %
Clean Tech
Solutions
9M 2024 | 9M 2023 | delta | delta % | |||||
Revenues | 55,8 | 66,1 | -10,4 | -15,7% | ||||
Adj. EBITDA | 0,6 | 3,2 | -2,7 | |||||
% on rev. | 1,0% | 4,9% | ||||||
EBIT | -2,5 | -0,0 | ||||||
-2,4 | ||||||||
% on rev. | -4,4% | -0,1% | ||||||
9M 2024 | FY 2023 | |||||||
Highlights
- 9M results still impacted by slow H1 order entry, only partially mitigated by Q3 Production value increase
- Lower volumes vs 2023 and higher incidence of non-compressible costs (e.g. engineering), affected product profitability
- Net working capital tight control, inventory reduction and credit collection fully mitigated negative economic performances on cash
NWC | 10,0 | 14,6 | |
NFP (1) | 16,4 | 16,6 | |
(1) Net of IFRS 16, derivatives fair value effect and debt for share capital acquisition | 6 |
Net Financial Position increase driven by Green Transportation negative profitability and Working Capital absorption
M€
NFP net of IFRS
16 and
derivatives and
debt for share
capital
acquisition of
MAP
Financial leases
(IFRS 16),
derivatives and
debt for share
capital
acquisition
NFP (1)
FY 2023 | 9M 2024 | ||
47,1 | Cash liquidity (+) | ||
16,4 | Current Financial Assets (+) | ||
-130,2 | Long-Short term | ||
-145,7 | Financial Debt (-) | ||
-98,6 | -113,8 | |||||||
-0,5 | ||||||||
-0,5 | Debt for share | |||||||
capital acquisItions (-) | ||||||||
-12,9 | -13,0 | Financial Lease (-) | ||||||
Derivatives (+/-) | ||||||||
-0,5 | -0,5 | |||||||
-13,8 | -14,0 | |||||||
15,4 | ||||||||
-127,8 | ||||||||
-112,4 | ||||||||
Highlights
-
NFP (including reduction due to variation of financial leases) increased by 15,4 M€ vs FY
2023 including the first phase of the Capital Increase (15 M€) -
Variation of NFP (net of Capital Increase) is 30,4 M€ mainly driven by the NWC increase, negative EBITDA and Green Transportation
Financial Costs - Long and Short-termdebt reflects the loan agreement amendment signed in august with banks and shows an overall reduction vs FY 2023 due to short-termsvariations
- Second phase of Capital Increase (25-30M€) not reflected in 9M 2024
(1) Short and long terms debt are inclusive of amortized cost effect | 7 |
Landi Renzo S.p.A.
Headquarter
Via Nobel 2 - 42025 Corte Tegge
Cavriago (RE), Italy
www.landirenzogroup.com
www.landirenzogroup.com
www.landirenzo.com
www.landirenzo.com
WWW
Landi Renzo - Company profile
BOARD OF DIRECTORS
TOP MANAGERS
INVESTOR RELATIONS
Stefano Landi - Chairman
Sergio Iasi - Deputy Chairman
Annalisa Stupenengo - CEO
Silvia Landi - Director
Massimo Lucchini - Director
Andrea Landi - Director
Pamela Morassi - Independent Director
Sara Fornasiero - Independent Director
Anna Maria Artoni - Independent Director
Stefano Landi
Annalisa Stupenengo
Paolo Cilloni
Damiano Micelli
Federico Landi
Giorgio Nero
Chairman
CEO
CFO & IR
Group CTO
SVP AM Business
Head of Strategy and Business Development
Investor Relations Contacts:
Paolo Cilloni
Tel: +39 0522 9433
E-mail: ir@landi.it www.landirenzogroup.com
Fabio La Cava | Chief Transformation & People Officer |
SHARE INFORMATION
Euronext STAR Milan segment of Borsa Italiana
N. of shares outstanding: 225.000.000
Price as of 06/11/2024: €0,16
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CONSOLIDATED P&L
(Thousands of Euro) | ||||
CONSOLIDATED INCOME STATEMENT | 30/09/2024 | 30/09/2023 | ||
(Restated) | ||||
Revenues from sales and services | 197,731 | 221,138 | ||
Other revenues and income | 981 | 1,296 | ||
Cost of raw materials, consumables and goods and change in inventories | -121,116 | -138,294 | ||
Costs for services and use of third-party assets | -42,423 | -41,579 | ||
Personnel costs | -38,312 | -37,373 | ||
Allocations, w rite dow ns and other operating expenses | -2,779 | -6,310 | ||
Gross Operating Profit | -5,918 | -1,122 | ||
Amortization, depreciation and impairment | -11,777 | -12,771 | ||
Net Operating Profit | -17,695 | -13,893 | ||
Financial income | 754 | 891 | ||
Financial expenses | -8,997 | -8,341 | ||
Exchange gains (losses) | -785 | -277 | ||
Income (expenses) from hyperinflation | -963 | -1,337 | ||
Income (expenses) from equity investments | -504 | -173 | ||
Income (expenses) from joint venture measured using the equity method | 1,040 | 134 | ||
Profit (Loss) before tax | -27,150 | -22,996 | ||
Taxes | -179 | -5,615 | ||
Net profit (loss) for the Group and minority interests, including: | -27,329 | -28,611 | ||
Net profit (loss) attributable to non controlling interests | -1,668 | -883 | ||
Net profit (loss) attributable to the Group | -25,661 | -27,728 | ||
Basic earnings (loss) per share | -0.1140 | -0.1232 | ||
Diluted earnings (loss) per share | -0.1140 | -0.1232 | ||
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