Business and Financial Review • Feb 28, 2024
Business and Financial Review
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Pesaro 28th February 2024
Note: plan includes the acquisition of GMM Group concluded in Jan '24
Who we are: history and key figure up to 2023e
Strategic Business Plan 2024-2026 Guidelines
Strategic Business Plan 2024-2026 Figures
We are an international company that manufactures integrated lines, machines and components to process wood, glass, stone, polymer and composite.
Founded in Italy in 1969 and listed in the Euronext STAR segment of the Italian Stock Exchange, we support the business evolution of our customers in the furniture, housing & construction, automotive and aerospace sectors.
Today, 80% of our consolidated turnover is achieved abroad by an ever-growing worldwide network with 12 manufacturing sites and 20+ showrooms reaching over 160 countries.
Thanks to our rooted competence embodied by more than 4,400 employees, we empower the imagination of industry-leading companies and prestigious names in Italian and international design to make the potential of any material shine.
To simplify clients' manufacturing process, empowering their imagination to enhance people's everyday life.
To provide clients with the most suitable solutions, committing our rooted competence to enable them to unleash the potential within any material.
The sense of belonging without borders that enhances the peculiarities of individuals.
A constant desire for discovery, which turns into intuition.
The original "know-how" which comes out from a genuine tradition.
The honesty of the people, the integrity of the company.
The adherence to a common project, lived and strengthened on a daily basis.
The care for the environment, society, people.
| 1969 | |
|---|---|
| ------ | -- |
Biesse is founded in Pesaro, Italy, to design, manufacture and distribute wood processing machinery.
1983 Biesse launched on the market Rover, a numerical control wood processing centre.
1987 A business sector dedicated to design, manufacture, and distribute glass and stone processing machines is born.
The internationalization process starts with the opening of the first subsidiary abroad.
1991 The HSD business unit is established to design, manufacture and distribute electromechanical components.
2001 Biesse S.p.A. is listed on the STAR segment of the Italian Stock Exchange.
2008 Opening of the first foreign manufacturing site in Bangalore, India.
2017 Biesse develops and launches its own IIOT platform, making its technology 4.0 ready.
Acquisition of Movetro and Montresor.
Biesse publishes its first Sustainability Report. 2018
2020 Start of the "One Company" project: new organization, new brand and product architecture, rationalization of production hubs.
Acquisition of Forvet S.p.A. 2021
2024 Acquisition of GMM Group, including Bavelloni and TechniWaterjet, manufacturing of machines for stone, glass, metal and tooling.
160+ countries
20+ showrooms
80% revenues outside of Italy
customers since today (Biesse & HSD)
Subsidiaries
USA Canada Brazil Mexico Italy France Spain Portugal UK
Germany Switzerland Turkey UAE India Malaysia Singapore China Japan
South Korea Australia New Zealand
The multi-material brands and their respective colors highlight the specifics of the business sectors in which we operate.
Biesse Wood, Biesse Glass, Biesse Stone and Biesse Materia guide the customer through the company's offering, expressing the distinctive characteristics of each business sector through the processed material.
Distinctive colors evoke the specific nature of each of the sectors and reinforce the concept of multi-materiality - an element that distinguishes Biesse from its competitors.
We design and manufacture WOOD processing integrated lines and machines for the furniture, window and door and building component industries.
We design and manufacture GLASS processing integrated lines and machines for the furniture, construction and automotive industries.
We design and manufacture STONE processing integrated lines and machines for the stone, furniture and building industries.
We design and manufacture solutions for the processing of technological, packaging, construction and visual communication MATERIALS.
HSD is the Biesse brand that designs, manufactures and distributes electrospindles, 2-axis milling heads and technologically advanced components for machining metal, alloys, composite materials and wood
It boasts a structure of 8,000 square meters organized according to the principles of "Just in time" production
Diamut and Bavelloni Tools are the Biesse brands that design, manufacture and distribute a complete range of tools for the machining of glass, natural and synthetic stone that can be used on CNC, automatic and semiautomatic machines
Cosentino Group Fiam Gruppo Lube Herman Miller Ikea Jeldwen Lago Marmi Fontanelli Nobia Oppein Rimadesio Saint-Gobain Saltoki Tivitec Veneta Cucine Wren Yatchline 1618
The success of Biesse is also the result of the ability to recognize and evaluate its environmental and social impacts, to establish new collaborations, to involve employees and to build relationships of trust, honesty and integrity with customers and suppliers
Sustainability, therefore, stands at the base of every choice, in order to ensure the company's long-term growth and success
The 17 UN's Sustainable development Goals were adopted by all UN Member States in 2015, as part of the 2030 Agenda for sustainable development
They will guide Biesse's strategy, serving as a guideline to direct our efforts, establish objectives, and involve our partners
Workplace safety management system of Biesse S.p.A. and Biesse India private Limited certified according to UNI ISO 45001:2018 standard
Support for social, cultural, artistic and sports initiatives in the community
Biesse India Private Limited has carried out several educational projects supporting children and teenagers
100% of electricity purchased from renewable sources with guarantees of origin for the Group's Italian companies
16,500 m2 of photovoltaic panels installed
Environmental management system of HSD S.p.A., Biesse S.p.A. and Biesse India Private Limited certified according to UNI ISO 14001:2015 standard
95% of purchases from local suppliers, as far as manufacturing plants in Italy and India are concerned
To.Get.There: the Biesse Transformation Process to nurture the urgency of change, improving adaptability and never-ending learning capabilities
Enhance leadership and communication
Increase employee engagement and create awareness
Improve knowledge sharing and targets alignment
(1) 2023e data preliminary
(2) Plan presented in 2021 and available on https://www.biessegroup.com/en/biesse_over_the_years/three_years_plan
CAGR
Revenues by geographical area 2020 – 2023 (€/mln – Incidence on Total)
Complexity as the new World paradigm
Need for strategic flexibility and resilience in decision-making
Importance of clarity and strategic communication in navigating complex scenarios
Machinery Companies are facing great challenges in coming years
Machine tools market production 1980 – 2022 (€/bln)
Expected slowdown in 2023-2025 due to global economic uncertainty
Source: KPMG elaboration on Machine Tool Builders' Association (VDW), CECIMO & Oxford Economics – Market Forecast
Biesse reference machinery market 2022 – 2026e (€/bln, CAGR) – Machines Sales excluding services & after-sales
Creating a Company able to overpass the complexity, secure revenues and profit
Building the Leader in Multi-Materiality, Stabilizing Turnover to enable future growth
Best organization structure and the right talents in a complex environment
2024-2026 Plan will enable the growth for the future years
| Complete portfolio toward 1 Multi-Materiality |
Extend product portfolio in Lines, Machines & components Redesign products according to new Brand and Product Strategy Full integration of product portfolio in Stone, Glass and other materials (post M&A) |
|
|---|---|---|
| Re-design Biesse 2 Experience |
Building a combinable and scalable Brand Experience model Evolve our Business to a data drive approach |
|
| Geographical Focus 3 |
Strengthen markets Organization to expand in key geographies Boost services through new Customer Care 360° |
|
| Improve efficiency and 4 Supply Chain Evolution |
Footprint specialization through HUBS by materials Increase efficiency in Extended Supply Chain |
|
| 5 Sustainability & People |
Fair, respectful and responsible approach to Environment and community People as critical factor for strategy success |
Portfolio completion and integration will enable future growth
Introducing the "One Company" to the market with the Restyling Project
GMM is leader in stone cutting & processing
Integration guidelines Complete GMM product portfolio with Biesse products
Bavelloni is among leaders in flat glass edgebanding
Integration guidelines Combine product portfolios to complete the offering
Techni Waterjet is growing in Metal cutting through Waterjet worldwide
Integration guidelines Explore additional growth opportunities
Renovate an integrated global network of showrooms
We will build a significant and memorable brand experience that allows the Biesse identity to be manifested across the main touchpoints (venues, showrooms, factories, exhibitions,…), elevating the Brand equity and making our Biesse Showroom become an experiential multi-material hub
Increasing the size of the Countries and looking at new growing markets
Expand Market Share in Central & South America
Consolidate leading positioning in West Europe
Defend Italy baseline
Expand market coverage and growth in high potential markets
Evolution of the global manufacturing and sourcing footprint to guarantee sustained competitive advantage aligned to multi-material strategy and regional model
Evolve Supply Chain towards a more effective industrial model
Key actions
New market conditions require a different approach in managing procurement and sourcing processes, particularly a rationalization of the global supplier base
Rationalize supplier base and inbound logistics to reduce cost incidence and achieve our goals toward sustainability
Volatile market conditions and more complex competitive scenario require higher flexibility in operations
Logistics in the post-pandemic world is become extremely critical and fragile. Central coordination considering is becoming a key success factor to control costs and delivery time
Embed versatility in our Supply Chain
Secure outbound logistics through a worldwide organization with local logistics hubs
Three streams to help us to develop our vision
Strategic Business Plan 2024 -2026 Figures
Net Revenues Cost of good sold 830 - 880 < 41% Net Financial Position Positive Net Revenues Target 2026e (€/mln) Target COGS incidence on Net Sales in 2026e Target Net Financial Position at 2026e 2026e Target Range 9 - 10% EBITDA Margin 2026e Target Range €/mln 75 - 90 EBITDA
Steady growth despite market slowdown
EBITDA & EBITDA margin (€/mln; % on net sales)
Maintain profitability in the uncertainty
EBIT Adj. (2) & EBIT Adj. margin (€/mln; % on net sales) Maintain profitability in the uncertainty
Net Financial Position (€/mln) CAPEX (€/mln; % on net sales)
Ambitious Capex plan to evolve our operating model
2022 2023 2024
| Buy | |
|---|---|
| Recommendation unchanged | |
| Share price: EUR | 12.10 |
| closing price as of 21/12/2023 | |
| Target price: EUR | 16.00 |
| from Target Price: EUR | 14.00 |
Strategic Business Plan 2024-2026 42
Source: Reuters – February 2024
This document contains forward-looking information, including references that are not solely related to historical data or current events and, therefore, as such, uncertain. Forward-looking information is based on various assumptions, expectations, projections, and forecast data related to future events and is subject to multiple uncertainties and other factors beyond the control of Biesse and/or the Group. There are many factors that can generate results and trends that are significantly different from the contents, implicit or explicit, of the forecast information, and therefore such information is not a reliable indication about future performance. Biesse assumes no obligation to publicly update or revise forward-looking information either as a result of new information, future events, or for other reasons, unless required by applicable regulations. Future results could differ even significantly from what is expressed or inferable from this communication in relation to a plurality of factors including, for illustration purposes only: trends in the machinery market, commodity price developments, trends in the machinery market; general macroeconomic conditions; geopolitical factors; and developments in the regulatory framework. Furthermore, reference to past performance of the Company or Group should not be taken as an indication of future performance.
Management uses some performance indicators, which are not identified as accounting measures under the IFRS (non-GAAP measures), to better assess Biesse's performance. The criterion applied by Biesse to set these indicators might not be the same as that adopted by other groups, and the indicators might not be comparable with those set by the latter. These performance indicators, which were set in compliance with the Guidelines on performance indicators issued by ESMA/2015/1415 and adopted by CONSOB with its communication No. 92543 of 3 December 2015, refer to performance in the accounting period covered by this Business Plan and the previous years used for comparison. Performance indicators are to be regarded as complementary to and not a substitute for financial data prepared in accordance with IFRS. Hereafter is a description of the main indicators adopted.
This indicator is defined as the Profit (Loss) for the year before income taxes, finance income and expense, exchange rate gains and losses, amortisation of intangible assets, depreciation of property, plant and equipment, impairment losses on fixed assets, allocations to provisions for risks and charges, costs and revenues arising from transactions that Management considers as non-recurring relative to Biesse's ordinary operations, as well as personnel expense.
This indicator is defined as the Profit (Loss) for the period before income taxes, finance income and expense, exchange rate gains and losses, amortisation of intangible assets, depreciation of property, plant and equipment, impairment losses on fixed assets, allocations to provisions for risks and charges, as well as costs and revenues arising from transactions that Management considers as non-recurring relative to Biesse's ordinary operations.
This indicator is defined as Profit (Loss) for the year before income taxes, financial income and expenses, and foreign exchange losses and gains.
This indicator is calculated as the total of Inventories, Trade receivables and Contract assets, net of Trade payables and Contract liabilities.
This indicator is calculated as the total of Net Operating Working Capital and other Current Assets and Liabilities, including Provisions for short-term risks and charges.
This indicator represents the total of Current and Non-Current Assets, excluding financial assets, net of Current and Non-Current Liabilities, excluding financial liabilities.
This indicator is calculated in compliance with the provisions contained in Communication No. 5/21 of 29 April 2021 issued by Consob, which refers to the ESMA Recommendations of 4 March 2021.
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