Icape Holding · EURONEXT:ALICA
Icape — Investor Presentation (October 2022)
35 slides from Icape's investor presentation, October 2022
Slide 1: Expert Boards
EXPERT BOARDS
Slide 2: Disclaimer
This presentation has been prepared by ICAPE Group, the "Company", solely for use in investor presentations. By receiving this presentation and attending this meeting, you acknowledge the following restrictions. This presentation does not constitute or form part of any offer or invitation to sell or
Slide 3: CEO and CFO
CYRIL SHORA CALVIGNAC ROKNI CEO CFO 23-year experience in 13-year experience in PCB & Electronics PCB 19 years at ICAPE Group 13 years at ICAPE Group
Slide 4: PCB are essential for the construction of electronic boards
PCB are essential for the construction of electronic boards. Their main functions are electrical, mechanical and to connect with their environment
Slide 5: PCB are strategic parts of the electronics industry value chain
Industry Telecommunications Automotive Connected objects Home automation E-mobility Medical Power Multimedia Computer PCB are strategic parts of the electronics industry value chain and are at the heart of many sectors of our daily lives
Slide 6: Products and Activities
Products Activities €169m 2021 revenue “Custom- made” technical parts > Technical provider of PCB and services between international customers and 16% suppliers based in China > Sourcing in China is the core business and a key part of the strategic competitiveness of 2% end-customer supply chains >
Slide 7: Among the world's leading companies and one of the main players in Europe
Among the world's leading companies and one of the main players in Europe 620 €169m 2,500+ Employees including 250 Revenue(1) Active customers multilinguals in Asia 30 75 60+ Subsidiaries and 2 Qualified suppliers Countries delivered Services Offices in China ~ 6m 26m+ 80%+ Main Sales Countries Serv
Slide 8: ICAPE model development and external growth history
M&A transactions ICAPE model development and Major investments for Acceleration of external growth expansion in China strong international development ~€230m(e) 4 M&A transactions completed €169m 5 M&A transactions completed Opening of 5 new subsidiaries (4 ICAPE DIVSYS and 1 in the U.S.A CIPEM) €58
Slide 9: Market and Competitive Environment
INVESTOR PRESENTATION AND COMPETITIVE ENVIRONMENT
Slide 10: Several technological revolutions impact electronics and PCB fields
Several technological revolutions have a large impact Market size on electronic and PCB fields (in $bn) +15.9% 5G E-mobility 79.4 Connected Energy objects transition 68.5 Digital transition Artificial and digitalization intelligence 2021 2025e Source: Technavio Favorable trends ensuring a robust gro
Slide 11: Many acquisition opportunities in a consolidating sector
Revenue Plenty of small local PCB players Product range and international footprint Source : Company Many acquisition opportunities in a sector facing a dynamic consolidation trend, accelerated by the pandemic
Slide 12: ICAPE Group Structure and Value Chain
; INVESTOR PRESENTATION ICAPE GROUP STRUCTURE AND VALUE CHAIN
Slide 13: Comprehensive range of high added value professional and technical services
Technical Sourcing Quality Logistics • Technical expertise and • Supplier qualification • Audits • Supply chain optimization • Purchasing power • Inspectors • Storage • Strategic support • Laboratories • Insurance • Technical and commercial • Delivery actions • Local support • Oversight of files and
Slide 14: EMS and OEM customer types
2 customers types EMS Electronic Manufacturing Services ~ 2,500 70% active customers customers for more 60% in 2021 than 5 years of Group revenue(1) OEM Original Equipment Manufacturer 50.4% 4.7% 40% of revenue generated by the top 50 of revenue generated by of Group revenue(1) customers in 2021 the
Slide 15: Longstanding ESG sensitivity and ambitious policies
Ethical & environmental CSR structure reporting ICAPE PLANÈTE BLEUE code (2007) directly to the Executive Corporate Foundation Committee Source of continuous Detailed diagnosis of internal Public interest missions: improvement for suppliers practices €1.5m over 5 years Permanent actions regarding: A
Slide 16: Solid Business Model and Historical Financial Performance
SOLID BUSINESS MODEL AND HISTORICAL FINANCIAL PERFORMANCE
Slide 17: Revenue 2016-2021 and CAGR
Revenue (in €m) French GAAP CAGR 2019 – 2021: +20% IFRS Standards 8 177 4 169 39 127 126 123 112 94 2016 2017 2018 2019 2020 organic M&A FY 2021 M&A FY 2021 growth (full year (full year (1) (1) impact) basis) Note: (1) full year contribution of M&A (taking into account M&A as of 01/01/2021) Double d
Slide 18: More than 50% growth in 2022 half-year revenue
June 30 June 30 In €m (IFRS standards) A More than 50% growth in 2022 half-year revenue 2021 2022 • Growth driven by Europe and the United States A Revenue 72.8 110.2 • Context of shortages and disruptions in supply chains via a range of % growth - 51.3% high value-added services (sourcing, security
Slide 19: Backlog and gross margin
Gross margin embedded in the backlog Accretive gross margin impact from M&A Acquisitions 2021 % Gross As of end of September 2022 Acquisition revenue margin €0,6m 34.3% €66.4m of backlog 2021 Over 23.98% gross €4.7m 26.6% margin JAPCC €3.9m 36.5% % gross margin of monthly order intake in the last fe
Slide 20: Asset-light business model generating cash
June 30 June 30 In €m (IFRS standards) 2021 2022 Net income (0.3) 0.9 Depreciation and amortization 1.3 1.9 A Change in working capital Other adjustments 0.0 0.1 Operating cash flow after cost of net financial debt 1.1 2.9 • Evolution in line with revenue growth and tax 1 Less cost of net financial
Slide 21: Financial debt, cash and net debt
June 30 June 30 in €m Post IPO 2021 2022 A Financial debt A Financial debt (post IFRS-16) 29.8 42.2 • Increase in financial debt in H1 2022 mainly related to the financing of acquisitions o/w Factoring 13.1 20.8 • Increase in factoring over the period (approximately €7.7 o/w Borrowing (incl. Bank ov
Slide 22: Assets and liabilities
Assets Liabilities June 30 June 30 June 30 June 30 In €m In €m 2021 2022 2021 2022 A Goodwill and Intangible assets Goodwill 4.6 11.8 Equity 3.0 2.3 • Changes due to acquisitions in 2021 and H1 2022 and IPO costs A Intangible assets 2.1 9.7 Reserves -0.7 3.0 Tangible assets 3.7 5.2 Currency -0.1 0.7
Slide 23: M&A Strategy
INVESTOR PRESENTATION M&A STRATEGY
Slide 24: Profitability improvement and growth levers
Continued organic growth Profitability Improvement Organizational Acceleration in optimization external growth A structured Group able to absorb future growth without any additional costs
Slide 25: Professional M&A team and target criteria
A professional M&A team Primary targeted company Number of companies criteria: 450 identified by ICAPE Group Shora ROKNI • Revenue: < €20m • Large number of >100 Companies contacted Antoine LOZZA customers • Gross margin: > 25% 21 Ongoing discussions 7 Executive VP ensuring • Profitable perfect inte
Slide 26: Organic growth post integration with synergies
Sales synergies • Increase sales and market shares due to a higher competitiveness of ICAPE GROUP’s prices Organic growth • Possibility to address larger quantities and larger customers post integration. • Enlarge sales with IQTS and CIPEM products, through their existing customer’s Unlock additiona
Slide 27: Investment rationale for completed acquisitions
Country Acquisition 2021 revenue Investment rationale • Portfolio of 20 active customers €0.6m • Ideal geographical location 2021 €4.7m • Portfolio of 80 active customers • Synergies and geographic diversification • Portfolio of 30 active customers JAPCC €3.9m • Expansion on the Dutch and German mar
Slide 28: 10 advanced targets worldwide
Geography Target 2021 revenue Geography Target 2021 revenue South Europe Target #1 c.€27.0m Asia Target #6 c.€4.0m North Europe Target #2 c.€12.0m Middle East Target #7 c.€3.5m North Europe Target #3 c.€9.0m South Europe Target #8 c.€1.5m c.€8.0m Oceania Target #4 North Europe €1.2m South Europe €6.
Slide 29: Financial Outlook
Slide 30: Topline on a full year basis
Topline on a full year basis(1) (in €m) ~20 M€ 2022 full year impact of M&A Revenue 8-10% of acquisition organic per year growth ~30 M€ (full year Revenue basis(1)) >10% of acquisition organic per year growth (full year basis(1)) ~500 23 30 (1) - 177 (2) 230 2021A Organic growth Forecasted M&A 2022E
Slide 31: Dividend policy and financial targets
FY 2022 FY 2024 FY 2026 Comments • Thanks to a sustained external growth policy, coupled with strong organic growth, Revenue ~230 M€ ~500 M€ the group should reach €500 million in turnover by 2026 Annual organic >10% per year ~8-10% per year ~15%(1) • Continuation of the trends observed since 2021 f
Slide 32: Key information, shareholding structure, analyst coverage
Key information Shareholding structure Listing on Euronext Growth® Paris As of October 2022 Market capitalization: €135m (as of September 22) Date of IPO : July 11, 2022 ISIN code/ Mnemo: FR001400A3Q3 / ALICA Financial year closing date: December 31 Number of shares: 8,088,182 as of October 2022 Sec
Slide 33: Appendices
INVESTOR PRESENTATION ~*~ . @, 4 meee, §4= APPENDICES BSS & ‘ )
Slide 34: Vendors Locations
Vendors Locations ICAPE (28 suppliers) CIPEM (47 Suppliers) JIANGXI 6 suppliers SHAOGUAN JIANGXI ZHEJIANG 1 supplier 2 suppliers 1 supplier LIAONING DONGGUAN 1 supplier TAIWAN 23 suppliers 3 suppliers FUJIAN 1 supplier DONGGUAN HEYUAN 3 suppliers 1 supplier HESHAN 2 suppliers ZHUHAI 1 supplier SHENZ
Slide 35: ICAPE Holding subsidiaries
ICAPE HOLDING Asia & Africa Americas Europe World Expert ICAPE ICAPE ICAPE CIPEM services office • ICAPE Hong Kong • ICAPE USA • ICAPE France • IDELEC • CIPEM France • ICAPE services office • ICAPE Dongguan • ICAPE California • ICAPE • J.A.P.C.C • CIPEM USA • CIPEM services office • ICAPE India • IC