Sit S.p.a. · MIL:SIT
Sit — Investor Presentation (November 2017)
28 slides from Sit's investor presentation, Nov 10, 2017
Slide 1: Company presentation - One Day in Venice
Company presentation ONE DAY IN VENICE Federico de’ Stefani, Executive Chairman Venice, November 10, 2017 Paul Fogolin, Chief Financial Officer
Slide 2: Disclaimer
Disclaimer • This presentation has been prepared by SIT S.p.A. only for information purposes and for the presentation of the Group’s results and strategies. • For further details on the SIT Group, reference should be made to publicly available information. • Statements contained in this presentation
Slide 3: Table of contents
Table of contents • SIT overview • Heating business description • Smart Gas Metering business description • Quality certifications and manufacturing footprint • Key financials 3
Slide 4: SIT develops and manufactures measuring devices and systems for domestic gas equipment
SIT develops and manufactures measuring devices and systems for the safety, comfort and performance of domestic gas equipment Heating Smart Gas Metering Mechanical Electronic Integrated Flue Exhaust Sensors Controls Controls Systems Fans Systems Gas meters Domestic SMART GRIDS Fireplaces appliances
Slide 5: Central Heating: boilers combining heating and domestic hot water
Central Heating: boilers combining heating and domestic hot water SIT is the world’s top name in the production of multifunctional, regulating, safety gas valves. SIT is the main player for the non captive electronic controls market Innovative solutions for sub-assembled and pre- Air management tech
Slide 6: Direct heating: fireplaces and stoves (both gas and pellet)
Direct heating: fireplaces and stoves (both gas and pellet) • SIT provides mechanical controls (gas valves and sensors), electronic controls (main boards, remote controls and user interfaces) and fans for gas fireplaces, stoves and spaceheaters • Main markets are North America, UK and Europe 6
Slide 7: Storage Water Heating for domestic water heating
Storage Water Heating for domestic water heating SIT provides mechanical controls and pilots • Markets include North America, Argentina and Australia • New efficiency standards and electronic features have been recently introduced in the US market providing opportunities to increase technological co
Slide 8: Professional cooking and catering appliances
Professional cooking and catering appliances • SIT provides mechanical controls and fans for (i) collective and community cooking appliances and (ii) high end cooker hoods • Main markets are Europe and USA • SIT is market leader in Europe
Slide 9: Smart Gas Metering - driven by regulation and smart technology
Smart Gas Metering - driven by regulation and smart technology • European directive on smart gas metering (EU 2009/73) • Italy: early adopter with directive ARG/gas155/08 issued by the national Authority (AEEG) • European installed base over 120 million pcs • Innovative thermo-flow sensor technology
Slide 10: SIT at a glance
SIT at a glance Organic growth in revenues and stable margins Revenues 2016FY 288,1€ Revenues CAGR 2012-2016 +6,6% Ebitda Adjusted* FY2016 44,6€ Ebitda Adjusted* margin FY2016 15,5% Average Ebitda Adj margin 2012-2016 14,1% Market and technological leadership SIT is the world’s top name in the pro
Slide 11: Main customers
Main customers Heating Smart Gas Metering 11
Slide 12: Milestones in SIT history
Milestones in SIT history 1953: Established by Pierluigi and Giancarlo de’ Stefani 1964 – 1997: international expansion • 1964, first mechanical control exported to Germany • 1974, first foreign European subsidiary in the Netherlands 2009 – 2016: Smart Gas Metering from scratch • 1980s, new subsidia
Slide 13: SIT currently operates two business divisions
SIT currently operates two business divisions Heating Smart Gas Metering 2016 Sales: 250,4 € 2016 Sales: 37,8 € (87% of total) (13% of total) Components and systems for the control, regulation A new generation of intelligent remotely controlled and safety of gas appliances for domestic heating, stat
Slide 14: Table of contents
Table of contents • SIT overview • Heating business description • Smart Gas Metering business description • Quality certifications and manufacturing footprint • Key financials 14
Slide 15: Heating business division – market segments and products
Heating business division – market segments and products SIT operates significantly in the following market segments: Current product families include: • Central Heating, boilers for domestic and water • Mechanical controls, multifunctional safety valves for gas heating • Electronic controls, mainbo
Slide 16: Heating business division – strong competitive position
Heating business division – strong competitive position Mechanical controls Electronic controls • 34% of Group revenues • 12% of Group revenues Central Heating • Market share ~50% • Market share ~14% (excluding captive • #1 globally production) • 12% of Group revenues • 5% Group revenues Direct Heat
Slide 17: Smart Gas Metering - driven by regulation and smart technology
Smart Gas Metering - driven by regulation and smart technology Attractive business opportunity RESIDENTIAL • The mission of MeteRSit , wholly owned subsidiary, is to offer to SMART GAS METERS gas distribution companies a new generation of highly innovative, (from 4 to 10 m³ph flow) electronic, remot
Slide 18: Smart Gas Metering – market size provides growth potential
Smart Gas Metering – market size provides growth potential European Gas Meter installation base is To current date main European countries are in different over 120 million units stages of massive residential meters roll-out plans • UK: regulatory framework (SMET2) requires to complete replacement o
Slide 19: Smart Gas Metering – trend in sales
Smart Gas Metering – trend in sales +142% 37,8 • Trend in Smart Gas Metering sales confirms consolidation of Italian Residential meter massive roll-out plan Revenues 20,0 23,7% Revenues 15,6 20,0 16,1 5,0 1,0 2012 2013 2014 2015 2016 2016H1 2017H1 • Sales evolution confirms growth potential • Order
Slide 20: High quality standards and certifications
High quality standards and certifications All plants comply with 2016 - Padova (Italy) – Testing Laboratory – CSA certificate of Quality System Certification qualification ISO 9001:2000 2015 - Suzhou (China) plant - CGAC Manufacturing plant recognition 2013 - Suzhou (China) plant - Quality System Ce
Slide 21: Global coverage of sales organization
Global coverage of sales organization Arnsberg, GERMANIA Production Randers, DANIMARCA Brno, REP. CECA plant Hoogeveen, OLANDA Budapest, UNGHERIA Sales office Brasov, ROMANIA Moscow, RUSSIA Agent Rovigo Artemovsk, UCRAINA Seoul, COREA Milano Suzhou, CINA Los Angeles, CALIFORNIA Padova: HEADQUARTERS
Slide 22: Manufacturing facilities based on local for local continental platforms
Manufacturing facilities based on local for local continental platforms Rovigo 1, Italy Mechanical controls, Integrated systems, Sensors, Smart Gas Meters Rovigo 2 Captive aluminum die casting and machining High volumes automated assembly lines Brasov, Romania Mechanical controls, Integrated
Slide 23: Table of contents
Table of contents • Sit Group overview • Heating business description • Smart Gas Metering business description • Quality certifications and manufacturing footprint • Key financials 23
Slide 24: Key financials
Key financials Revenues CAGR 288,1 44,6 45 16 6,6% EBITDA Adjusted* 13,6% 14,5% 13,3% 264,7 15,5% 14 259,0 EBITDA Adjusted Margin 246,1 40 13,3% 12 223,2 35,6 35,3 10 35 34,3 8 30,3 6 30 4 2 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 39,9 158,5 156,5 5,0 160 4,5 140 LBO, non 124,8 Net deb
Slide 25: Change in 2014 net debt was due to LBO
Change in 2014 net debt was due to LBO Federico • In 2014 Federico de Stefani, acquired the 56,7% of SIT de’ Stefani shares from other shareholders via LBO transaction 100 % using the 100% owned Newco SIT Technologies • Equity value of the transaction was 116€ SIT Technologies New Debt for (NEWCO) A
Slide 26: Listing on AIM Italy on 20 July 2017 via reverse merger with Industrial Stars of Italy 2
Listing on AIM Italy on 20 July 2017 via reverse merger with Industrial Stars of Italy2 (SPAC) Reverse merger and concurrent listing of SIT provided a new capital structure: Federico • Shareholder loan cancellation by SIT Technologies and increase in de’ Stefani equity of 8€ • Cash contribution by S
Slide 27: 2017 H1 financials (before IPO that took place on July 20)
2017 H1 financials (before IPO that took place on July 20) • Consolidated Sales growth: +14,4€ (+10,7% vs 2016H1) Heating sales: 129,1€ (+10,5€, +9,0%) Smart Gas Metering sales: 20,0€ (+3,9€, +23,7%) • Consolidated EBITDA growth: +0,6€ (+2,9%) €.000 2017H1 % 2016H1 % YoY % Revenues 149.124 100,0% 13
Slide 28: Contacts
Contacts Paul Fogolin Chief Financial Officer & Investor Relator [email protected] SIT S.P.A. Viale dell'Industria 31-33 - 35129 Padova (Italy) Ph. + 39 049 8293.111 Fax + 39 049 8070093 www.sitgroup.it 28