Valtecne S.p.a. · MIL:VLT
Valtecne — FY2022 Earnings Presentation
26 slides from Valtecne's earnings presentation, Apr 4, 2023
Slide 1: 2022 FY Results Virtual Roadshow
2022FY Results Virtual Roadshow 4 April 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: 2022FY Res
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: 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 6: 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 7: 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 8: Pro forma financials
altecne Pro forma financials
Slide 9: FY 2022 Pro-Forma Results Highlights
FY 2022 PRO-FORMA RESULTS HIGHLIGHTS €M Value of Production increased by 28.2% with a strong contribution of medical business VALUE OF line (+41.3%) PRODUCTION 2022 double digit growth above 14.2% 2016-2022 CAGR €27.7 +28.2% Medical business line accounts for about 53% of Value of Production,
Slide 10: Revenues and value production
Revenues and value production REVENUES (€M) VALUE OF PRODUCTION (€M) Medical Industrial 2022 vs. 2021 2022 vs. 2021 28,0 32,0 Medical Industrial 24.1 28.5% 28.2% 24,0 27.7 28,0 20,0 18.8 24,0 16.3% 21.6 12,3 12,9 15.9% 16,0 20,0 10,6 16,0 11,2 12,0 12,0 8,0 44.4% 8,0 41.3% 11,8 14,7 4,0 8,1 10,4 4,0
Slide 11: EBITDA (1/2)
EBITDA (1/2) Adjusted EBITDA (€M) EBITDA (€M) 2022 vs. 2021 2022 vs. 2021 6,0 6,0 5,5 44.4% 4,6 41.2% 4,0 3,8 4,0 3,2 2,0 2,0 0,0 0,0 2021 2022 2021 2022 % on VoP 17.7% 19.9% % on VoP 15.0% 16.6% Adjusted EBITDA increased by almost 45%, EBITDA increased by about 40%, approaching 20% margin on VoP (a
Slide 12: EBITDA Bridge (2/2)
EBITDA BRIDGE (2/2) EBITDA (€M) 10,0 6,1 1,2 3,6 8,0 6,0 4,6 4,0 3,2 2,0 0,0 EBITDA 2021 Value of Production Labour costs Other costs EBITDA 2022 Solid growth of Value of Production and costs control has allowed to mark a €1.4M increase of EBITDA 2022FY Results Virtual Roadshow 12
Slide 13: Working Capital
Working Capital DSO DPO (days) 2022 vs. 2021 (days) 2022 vs. 2021 120 140 130 8.3% 106 120 100 120 90 -15.2% 100 80 80 60 60 40 40 20 20 0 0 2021 2022 2021 2022 Both DSO and DPO improved in 2022 compared to 2021, with a positive impact on commercial working capital 2022FY Results Virtual Roadshow 13
Slide 14: Net Financial Position (1/2)
Net Financial Position (1/2) Net Financial Position (€M) 6,0 5,2 0,3 0,5 0,6 5,0 4,0 2,0 0,0 NFP 2021 Long term debt Short term debt Cash and NFP 2022 equivalents Small variances lead to a Net Financial Position slightly better than pro forma 2022 … 2022FY Results Virtual Roadshow 14
Slide 15: Net Financial Position (2/2)
Net Financial Position (2/2) Adj. NFP / Adj. EBITDA Net Financial Position / EBITDA 2022 vs. 2021 2022 vs. 2,4 2,0 2,18 2021 2,0 1,60 1,6 1,71 -21.2% 1,6 1,2 1,10 -31.1% 1,2 0,8 0,8 0,4 0,4 0,0 0,0 2021 2022 2021 2022 … and the ratio to EBITDA has significantly improved 2022FY Results Virtual Roadsh
Slide 16: Outlook 2023
OUTLOOK 2023 In early 2023, it is continuing the shift of the business mix towards the medical business line, whose revenues have continued to grow. The decrease of energy prices, that are stabilizing around values significantly lower than 2022 peaks, despite being high compared to historical prices
Slide 17: Business Model & Strategy
altecne Business Model & Strategy
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: Key Takeaways
Key Takeaways Historical double digit growth, higher than the market Focus on medical devices industry First class customers 2022FY Results Virtual Roadshow 23
Slide 24: Appendix
Appendix
Slide 25: Pro-forma Financials
Pro-forma Financials Profits & Losses FY2021 FY 2022 Balance Sheet FY2021 FY2022 (€ K) pro-forma pro-forma (€ K) pro-forma pro-forma Operating Revenues 18,754 24,099 107 339 Intangible Assets Inventory var. – Finished products 1,730 2,028 Tangible Assets 5,919 6,647 Inventory var. – WIP 728 767 Fina
Slide 26: Valtecne S.p.A. contact details
Valtecne S.p.A. Via Al Campo Sportivo, 277 23010 Berbenno di Valtellina (SO) [email protected]