Valtecne S.p.a. · MIL:VLT
Valtecne — Next Gems 2023
26 slides from Valtecne's conference presentation, Oct 18, 2023
Slide 1: Next Gems 2023
Next Gems 2023 18 October 2023
Slide 2: Disclaimer
Disclaimer This document ("Document") is strictly confidential and was prepared by Valtecne S.p.A., also on the basis of information and financial data provided by its shareholders as well as on the basis of publicly available information and documents, in order to provide the recipients of the same
Slide 3: Speakers
Speakers Paolo Mainetti Adolfo Ottonello Chief Executive Officer General Manager +25 years in Valtecne, MBA at POLIMI former President of Confindustria Sondrio Graduate School for Management, (federation of Italian industries) Degree in Electronic Engineering Previous jobs: Previous jobs: Next Gems
Slide 4: Valtecne at a glance
Valtecne at a glance ▪ Valtecne is a company operating in the sector of high precision mechanics. ACTIVITIES 40 +200 +200 K ▪ Valtecne is a contract manufacturer of high precision mechanical years of history employees Production hours components. It operates by the means of two business lines: o Med
Slide 5: Key Investment Highlights
Key Investment Highlights Historical double-digit growth, higher than the market Focus on medical devices industry First class customers Next Gems 2023 5
Slide 6: Historical double-digit growth, higher than the market
Historical double-digit growth, higher than the market ▪ Valtecne has been able to record structural double digit growth performances, mainly due to the increasing importance of medical devices sector (‘16-22 CAGR: +24.3%). The company has marked a ‘16-’22 CAGR of +14.2%. Valtecne’s business has reg
Slide 7: Focus on medical devices industry
Focus on medical devices industry ▪ The deep mechanical know-how acquired in its 30-years history allowed the company to enter medical devices market in late 2012. Market Offer ▪ Valtecne operates in orthopaedics, the branch of med-tech ▪ Valtecne is focused on the manufacturing of complex surgical
Slide 8: First class customers
First class customers ▪ Valtecne’s customers are mainly medium and large companies, leader in their markets and with a recognised local and global reputation. Medical Devices The company addresses manufacturers of orthopaedic prostheses (domestic or international, strongly globalized companies). Ind
Slide 9: 1H 2023 Results
altecne 1H 2023 RESULTS
Slide 10: 1H 2023 - Results Highlights
1H 2023 - RESULTS HIGHLIGHTS €M ▪ Value of Production increased by 22.8% with a strong contribution of medical VALUE OF business line (+41.6%) PRODUCTION ▪ A strong growth near to +23% €17.1 +22.8% ▪ Medical business line accounts for about 60% of Value of Production, as a result of the investment s
Slide 11: Revenues and Value of Production
Revenues and Value of Production REVENUES VALUE OF PRODUCTION (€M) (€M) Medical Industrial 2023 vs. Medical Industrial 2023 vs. 20.0 20.0 2022 2022 17.0 17.1 24.8% 22.8% 16.0 16.0 13.6 13.9 6.9 1.4% 6.9 2.6% 12.0 12.0 6.8 6.7 8.0 8.0 10.1 48.2% 10.2 41.6% 4.0 4.0 7.2 6.8 0.0 0.0 H1 2022 H1 2023 H1 2
Slide 12: EBITDA (1/2)
EBITDA (1/2) Adjusted EBITDA EBITDA (€M) 2023 vs. (€M) 2023 vs. 5.0 2022 5.0 2022 4.6 47.3% 4.0 44.4% 3.1 2.8 2.5 2.5 0.0 0.0 H1 2022 H1 2023 H1 2022 H1 2023 % on VoP 22.5% 27.0% % on VoP 19.8% 23.2% Adjusted EBITDA increased by almost 50%, EBITDA increased by 44%, exceeding 23% reaching 27% margin
Slide 13: EBITDA (2/2)
EBITDA (2/2) EBITDA (€M) 8.0 3.2 0.6 6.0 1.3 4.0 4.0 2.8 2.0 0.0 EBITDA H1 2022 Value of Production Labour costs Other costs EBITDA H1 2023 Strong growth of business volumes and costs discipline has allowed to mark a €1.2M increase of EBITDA Next Gems 2023 13
Slide 14: Working Capital
Working Capital DSO (*) DPO (*) (days) (days) 2023 vs. 2023 vs. 2022 2022 100 140 130 133 90 92 +2.3% +2.2% 120 80 100 60 80 60 40 40 20 20 0 0 FY 2022 H1 2023 FY 2022 H1 2023 DSO and DPO are stable compared to FY 2022, meaning that economic growth has not negatively impacted on commercial working c
Slide 15: Net Financial Position (1/2)
Net Financial Position (1/2) Net Financial Position (€M) 6.0 5.0 0.2 0.2 0.8 4.2 4.6 4.0 2.0 -0.4 0.0 -2.0 NFP FY 2022 Long term debt Short term debt Cash and NFP H1 2023 w/o Net cash from NFP H1 2023 equivalents IPO IPO Net Financial Position has improved by €0.8M due to strong operating cash flow.
Slide 16: Net Financial Position (2/2)
Net Financial Position (2/2) Adj. NFP / Adj. EBITDA (*) Net Financial Position / EBITDA (*) 2023 vs. 2023 vs. 2.0 1.2 2022 1.10 2022 1.71 1.6 -42.0% -45.8% 0.8 1.2 0.64 0.93 0.8 0.4 0.4 0.0 0.0 FY 2022 H1 2023 (**) FY 2022 H1 2023 (**) (*) NFP without IPO net cash The ratio to EBITDA has dramaticall
Slide 17: Outlook 2023
OUTLOOK 2023 The medical business line continues to be characterized by a sustained order book, in continuity with the recent past. The revenue trend could show some shift of the invoicing of a small part of the production volumes achieved in the final months of 2023 to the following financial year,
Slide 18: Business Model & Strategy
altecne Business Model & Strategy
Slide 19: Business Model
Business Model ▪ The company offers a full, turnkey service managing end-to-end all the processes requested to manufacture the parts according to customer specifications. It operates make-to-order, i.e. production starts only after the issuing of purchase orders by the customers. Medical Devices Ind
Slide 20: Operations
Operations Design of production process Quality control Technical Department Quality Department Analysis of drawings, 3D Analysis of drawings, 3D models and customer specs models and customer specs Co-design together with Control plan for each the customer manufacturing step Prototyping Process cont
Slide 21: Development strategies
Development strategies Objectives Strategy 1. Strengthening of production capacity for existing 1. Enlargement of the customer base in joint reconstruction Medical Devices technologies (milling, turning, EDM); segment 2. Internalization of other technologies, with a special focus on 2. Enlargement o
Slide 22: Competitive arena - Medical devices
Competitive arena - Medical devices Competitors (examples) Products Customers Technologies Operations ▪ Instruments and ▪ Big global groups of ▪ Precision mechanics ▪ Several implants for all orthopaedics and, across all its manufacturing sites orthopaedic broadly speaking, of declinations specializ
Slide 23: Shareholders and Corporate Governance
Shareholders and Corporate Governance Shareholders Sustainability Paolo Mainetti E 100.0% • Since 2011 Valtecne has installed photovoltaic Vittorio KPM S.r.l. 6.4% panels in order to balance energy consumption of Mainetti production machines. (1) 61.6% 13.8% bare full • Valtecne plant is equipped wi
Slide 24: Appendix
Appendix
Slide 25: Financials
Financials Profits & Losses 1H 2022 1H 2023 Balance Sheet FY2022 1H 2023 (€K) pro-forma (€K) Operating Revenues 13,641 17,020 339 1,122 Intangible Assets Inventory var. – Finished products 22 (1,034) Tangible Assets 6,647 6,597 Inventory var. – WIP 4 694 Financial Assets 406 406 Other Revenues 273 4
Slide 26: Valtecne S.p.A. contact details
Valtecne S.p.A. Via Al Campo Sportivo, 277 23010 Berbenno di Valtellina (SO) [email protected] 26