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Avio Investor Presentation 2023
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Investor Presentation
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Avio HY 2023 Results
Disclaimer
This document has been prepared by Avio S.p.A. ("Avio" or the "Company"). This document might contain certain forward-looking statements that reflect the Company's management's current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are based on Avio's current expectations and projections about future events. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of Avio to control or estimate. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. Avio does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation. Any reference to past performance or trends or activities of Avio shall not be taken as a representation or indication that such performance, trends or activities will continue in the future. This document does not constitute an offer to sell or the solicitation of an offer to buy Avio's securities, nor shall the document form the basis of or be relied on in connection with any contract or investment decision relating thereto, or constitute a recommendation regarding the securities of Avio.
• Highlights (Giulio Ranzo, CEO)
- Focus on HY 2023 (Giulio Ranzo, CEO)
- HY 2023 Financials (Alessandro Agosti, CFO)
- Outlook and opportunities (Giulio Ranzo, CEO)
- Appendix
Vega launch scheduled for October 4th, subsequent Vega launch planned by spring 2024
Vega C: Independent Evaluation Board (IEB) on Z40 firing test and Vega C return to flight plan under finalization
Vega E: Preliminary Design Review achieved, DM2 engine model successfully tested on ground
Record-high order backlog (1.4Bln€) thanks to new technology development projects and tactical propulsion orders
Improved profitability driven by technology development projects and relief of energy costs
Record-high cash position (over 100M)
FY 2023 Guidance confirmed
• Highlights (Giulio Ranzo, CEO)
• Focus on HY 2023 (Giulio Ranzo, CEO)
- HY 2023 Financials (Alessandro Agosti, CFO)
- Outlook and opportunities (Giulio Ranzo, CEO)
- Appendix
Vega E's M10 LOX-CH engine (new model DM2) succesfully tested
The first 5 engine tests for DM2 were completed, introducing a new, enhanced, lighter, and fully throttleable version of Avio's upper stage engine for the upcoming M-10, the upper stage engine of the Vega-E launcher.
The engine is designed and built by Avio with 100kN of thrust using liquid Oxygen and Methane. It is the first engine of this type in EU.
Vega E
Space Rider successfully passed its Critical Design Review
| ALEK + RM | ||
|---|---|---|
| Height [m] | 7,15 | |
| Max diameter[m] | 2,4 | |
| Lift off mass [ton] | 3,3 | |
| Power [KW] | 3,7 |
Achievements:
• Design phase completed in July 2023:
- System critical design review successfully passed
- Subsystems and components critical design reviews completed (no red flags)
• Qualification loop started:
• AOM HWIL test facilities in Colleferro completed
Next steps:
- AOM HWIL tests will start in Sep 2023 (duration 1 year)
- AOM Mechanical Tests: HW production ongoing, test foreseen in Apr 2024
- AOM+RM combined tests (mechanical, functional, EMC) from Sep 2024 to Feb 2025
• Maiden flight readiness targeted in 2H 2025:
- Integration in Kourou (French Guyana) in July 2025
- Launch targeted in 2H 2025
New technology development projects started to prepare next-gen launchers
Space Transportation Systems: €185 M
- In-flight demostrator of a LOX-Methane two stage to orbit small launcher
- Two experimental launches (single stage and two stage respectively)
- Composite cryo tanks, simplified Avionics (software-based) and non-pyro separation systems
High Thrust Engine: €100 M
- 60ton thrust class LOX-Methane engine
- Innovative thermodynamic cycle, delivering high specific impulse
Multi-Purpose Green Engine: €55 M
- Highly versatile engine for orbital propulsion
- «Green» engine for inorbit services and logistics
Propulsion for IOS Module: €35 M
- Propulsion techs for an In-Orbit Servicing Mission
- In partnership with Thales, Leonardo, Telespazio, D-Orbit
to be developed within 2026
Space Transportation Systems – New Technologies and Sub-Orbital Demo Flights
and applications Cryogenic Composite Tank
SIA : System Integrated Avionics
In-Flight Demonstrators
2025 M10 LOX-Methane based Engines
NDSS : Non-Detonic Separation System
High Thrust Engine – The 60 tons thrust class LOX/Methane
The most innovative component of the M60 engine is the "Liquid Oxygen Powerpack" which, via a dedicated gas generator, will supply the necessary power to the oxygen line.
Copper-based alloys represents a key element for the development of new Technology HT engines, such as 60-tons class LOxMethane cryogenic engine.
Copper Alloy CC
MPGE – Multi Purpose Green Engine for orbital propulsion and In-orbit Services
2 different engine variants (2000N class) using green propellants
'GE-C' orbital engine (same class as Vega C current upper stage)
First Prototypes in ALM
'MPGE' as a throttable evolution of the GE-C (Space Rider 2GEN, Kick Stage Vega E, IOS 2GEN)
In-Orbit Services Demo missions by 2026 using Vega C
ARP : Avionic and Robotic Platform
TARGET : satellite demo
OSPM : Orbital Service Propulsion Module
Applications:
- Refuelling
- Debris removal
- In-orbit inspection and repair
IOS module accomodation inside VEGA-C Fairing
Investment in T4i Technology for Propulsion and Innovation
On 4th September 2023 Avio invested ~2.5 M€ in T4i's capital, equal to approximately 17% of the shares of T4i.
T4i, spin-off of the University of Padua, was founded in 2014 and it is specialized in 'green' storable chemical propulsion systems, electric propulsion systems, and attitude control thruster.
The agreement will enhance the effectiveness and timeto-market for the introduction of new functional propulsion systems in our strategic plan for application on:
- GEC/MPGE Engine
- IOS propulsion module
- Vega upper stage propulsion
P160C activities update
The P160C is going to be the booster of Ariane 6 Block 2, with the main purpose to meet the needs of Kuiper's constellation and the first stage of the next configuration of Vega Launcher, to increase its performance, competitiveness and also versatility.
Update of the P160C activities at 30 June 2023:
- procurement of process machines, tools and means
- acceptance and process validation
- QM3 (s/n 01) manufacturing
Next steps:
- April 2024: first IMC shipment from Colleferro
- Mid of 2024: casting at Regulus plants
- End of 2024: static firing test
14
The new winding machine
Tactical orders steadily growing, clear future roadmap
Historical Tactical Orders Future Development Roadmap
- Signed 90 EUR Million of new contracts for Aster 30
- Total orders for defense currently around € 300 Mln providing visibility for the next 5 years
Avio is partner of the HYDIS2 consortium for a new endo-atmospheric interceptor. Avio is part of the consortium with other 18 partners and 30 subcontractors. The company will give its contribution in providing the European Armed Forces with the most innovative propulsion solutions.
Our Tactical Products Development Roadmap
End Products
Avio Group SRMs
Agenda
- Highlights (Giulio Ranzo, CEO)
- Focus on HY 2023 (Giulio Ranzo, CEO)
• HY 2023 Financials (Alessandro Agosti, CFO)
- Outlook and opportunities (Giulio Ranzo, CEO)
- Appendix
Record Order Backlog thanks to development technology projects earlier than expected
Order Backlog evolution FY 2022-HY 2023 (€ - M)
Comments
Order intake in HY 2023 mainly include:
- Technology development projects (~370M)
- Defense Production (~110M)
Increase in share of defense and technology development contracts
Revenues growing thanks to Technological Development projects and Defense
by Line of Business (€ - M)
by Activity (€ - M)
Improved results driven by development and defense activities, with decreasing energy costs
| HY 2022 | MAIN ECONOMICS | HY 2023 | |||
|---|---|---|---|---|---|
| € - M | € - M | Comments | |||
| 134.0 | NET REVENUES | 157.7 | Increase in revenues thanks to technological development projects and defense production activities |
||
| 3.2 | EBITDA REPORTED | 5.2 | Improved EBITDA driven by higher revenues and relief of energy | ||
| N/R | 2.4% | % on net revenues | 3.3% | N/R | costs |
| 2.5 | 5.6 | EBITDA ADJUSTED | 10.5 | 5.3 | Higher non-recurring costs mainly due to provision for the Zefiro 40 anomaly |
| 4.2% | % on net revenues | 6.6% | |||
| (6.2) | EBIT REPORTED | (3.9) | |||
| N.m. | % on net revenues | N.m. | Depreciation unchanged | ||
| (3.7) | EBIT ADJUSTED | 1.4 | |||
| N.m. | % on net revenues | 0.9% | |||
| (6.5) | RESULT BEFORE TAX | (3.7) | Positive contribution from financial items | ||
| N.m. | % on net revenues | N.m. | |||
| (7.6) | NET RESULT | (3.9) | Almost neutral tax burden | ||
| N.m. | % on net revenues | N.m. |
20
Gas price decrease in HY 2023 compared to HY 2022 with positive effect on industrial production costs
Italian average monthly gas prices HY 2023 (€/MWh)
Source: GME (Gestore Mercati Energetici)
Non-recurring items impacted by the provision of the cost for an additional Zefiro 40 static firing test
= Like for like
Like for like N/R costs increased by 1.2M€
(1)
Prominent improvement in working capital and cash position
| 31 DEC 2022 | MAIN SOURCES AND USES | 31 JUN 2023 | DELTA | ||
|---|---|---|---|---|---|
| € - M | € - M | € - M | Comments | ||
| (140.9) | WORKING CAPITAL | (183.2) | 42.3 | Working capital structurally negative with a prominent |
|
| 81.5 | DEFERRED TAX ASSETS | 80.9 | 0.6 | positive trend in HY 2023 for advance payments from development contracts |
|
| (62.9) | PROVISIONS | (55.3) | (7.7) | Decrease of provisions utilized against Vega C return to flight costs and costs for delays in execution of programs incurred |
|
| 64.1 | GOODWILL | 62.8 | 1.3 | in the semester and provided for in 2022 |
|
| 27.6 | CUSTOMER RELATIONSHIP ASSET | 28.0 | (0.3) | ||
| 248.9 | FIXED ASSETS | 253.9 | (5.0) | Mainly for capex for P120 Vega cadence improvement, development of new launchers of Vega family and new |
|
| 8.5 | RIGHTS OF USE | 8.3 | 0.2 | headquarters, net of depreciation | |
| 2.0 | FINANCIAL RECEIVABLES | 2.0 | - | ||
| 228.8 | NET INVESTED CAPITAL | 197.4 | 31.4 | ||
| 74.4 | NET CASH POSITION | 102.2 | (27.8) | Better than seasonal typical trend principally for positive |
|
| (303.3) | EQUITY | (299.6) | (3.6) | contribution from working capital |
|
| (228.8) | TOTAL SOURCES | (197.4) | (31.4) |
Increase for advances from development contracts
Data in €-M
Agenda
- Highlights (Giulio Ranzo, CEO)
- Focus on HY 2023 (Giulio Ranzo, CEO)
- HY 2023 Financials (Alessandro Agosti, CFO)
- Outlook and opportunities (Giulio Ranzo, CEO)
- Appendix
FY 2023 Guidance confirmed
27
- Highlights (Giulio Ranzo, CEO)
- Focus on HY 2023 (Giulio Ranzo, CEO)
- HY 2023 Financials (Alessandro Agosti, CFO)
- Outlook and opportunities (Giulio Ranzo, CEO)
• Appendix
Agenda
EBITDA and Cash generation heavily concentrated on Q4s
Net Cash Position (€ - M)
29
CONTACTS [email protected]
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