Esautomotion — Earnings Release 2023

Sep 28, 2023

Informazione Regolamentata n. 20133-19-2023		Data/Ora Inizio Diffusione 28 Settembre 2023 18:37:03	Euronext Growth Milan
Societa'	:	ESAUTOMOTION
Identificativo Informazione Regolamentata	:	181605
Nome utilizzatore	:	ESAUTOMOTIONN02 - Fontana
Tipologia	:	1.2
Data/Ora Ricezione	:	28 Settembre 2023 18:37:02
Data/Ora Inizio Diffusione	:	28 Settembre 2023 18:37:03
Oggetto	:	Half Year Report 2023
Testo del comunicato

Vedi allegato.

PRESS RELEASE

Esautomotion approves the consolidated half-yearly financial report as of 30th June 2023

• REVENUES: € 19,311 thousand vs. € 16,472 thousand (+17.2%)
• • EBITDA: € 5,374 thousand vs. € 4,462 thousand (+20.4%)
• • EBITDA: margin: 27.8% vs. 27.1%
• • EBIT: € 4,582 thousand vs. € 3,661 thousand (+25.2%)
• • NET PROFIT: € 3,476 thousand vs. € 2,774 thousand (+25.3%) equal to 18% of revenues
• • OPERATING CASH FLOW: € 2.251 thousand with a cash conversion ratio of 41.9%
• • NET FINANCIAL POSITION: € -10,046 thousand (CASH POSITIVE) vs. € -10,769 at 31/12/2022, after distributing 2022 dividends of € 1,272 thousand.
• • SHAREHOLDERS' EQUITY: € 27,828 thousand, including profit for the period of € 3,476 thousand
• • TREASURY SHARES in portfolio: 383,000

Carpi, 28 September 2023

The Board of Directors of Esautomotion S.p.A. ("Esautomotion" or the "Company"), the operating holding company of the Esautomotion Group (the "Group"), active in the field of high-precision mechatronic components for industrial machines, today approved the Consolidated Half-Year Financial Report as of 30 June 2023 (the "Report").

MAIN CONSOLIDATED RESULTS AS AT 30 JUNE 2023

Group revenues, as of June 30, 2023, equal to € 19,311 thousand, recording growth of +17.2%. compared to the first half of 2022.

We remind you that the positive performance of the Company derives mainly from the strategy aimed at having reducing correlation to the economic cycle, launched in the 2019, which led to the maintenance of revenues in recessionary years for investments (2019) and for the pandemic epidemia (2020) and then allow the very strong growth (+61% in 2021) continued in 2022 (+19% on 2022) and 1H2023: +17.2% despite the "slowdown" due to the semiconductor shortage.

The last 30 months have been characterized by:

• recovery and development of sales both on historical and recently acquired customers, thanks to the development activities put in place in previous years;
• economic cycle finally positive;
• product innovation;
• strong growth in market share in strategic global markets;
• Strong turbulence in the semiconductor, general components and transportation markets.

The first half of 2023 showed:

• continuation of the positive trend with particular strength in: Turkey (+42%) and China (+23%); more moderate growth in Italy (+11%), while the Iberian Peninsula shows a slight decrease in revenues of -2%);
• substantial indifference to the consequences of the Russian/Ukrainian conflict, as the two markets are very limited and Esautomotion has no activities in those areas;
• Declining order backlog for the second half of 2023.

EBITDA, equal to € 5,374 thousand, grew by 20.4% compared to 1H2022.

EBITDA MARGIN, equal to 27.8%, slightly up (+0.7%) compared to 1H2022.

NET PROFIT, equal to € 3,476 thousand, grew by 25.3% compared to 1H2022 NET FINANCIAL POSITION, equal to € -10,046 thousand (CASH POSITIVE), takes into account distributed profits equal to € 1,272 thousand and the reserve for treasury shares equal to € 1.010 thousands (# 383.000 shares).

The shortage of components continues to cause a working capital increase due to warehouse stock (semiconductors purchased in advance to cope with market shortages and orders awaiting completion); receivables from customers (due to revenue growth), payables to suppliers (advance payment of components that would otherwise no longer be available). The component market appears to be headed towards a return to normalization.

Despite the aforementioned increase in component prices, Esautomotion has managed to recover the cost increases, thanks both to the adjustment of prices to customers and to the ability to migrate the demand of acquired customers towards more performing and profitable products.

The share of direct exports is equal to 49%, to which must be added the part of products sold in Italy that are subsequently exported, making the share of total exports estimated at 75%.

The strategy of:

• search for growth opportunities through external lines;
• investments in R&D, with preparation for the launch of new products;
• reduction in the cost of products;
• reduction in the use of working capital;
• development of product performances, in particular in strategic market applications (sheet metal, marble, wood);
• penetration in strategic customers in terms of Computer Numerical Control share compared to competitors;
• expansion of the offer to various complementary applications and to motors and drives;
• internationalization worldwide, particularly in China, Turkey, Germany and North America.

R&D remains the Group's area of greatest investment. Research and development continued, also in the first half of 2023, mainly aimed at integrating between:

• different mechatronic technologies;
• development of communication logic 4.0 and networking;
• increase in the flexibility characteristics of the product to react quickly to market fluctuations;
• development and integration of new devices, sensors, components;
• development of new hardware to cope with the shortage of materials;
• improving energy efficiency;
• study of elements of 3D graphics;
• hybrid technologies;
• multifunction machines to increase productivity;
• integrations with CAD/CAM programs.
• integration of AI elements

These activities have allowed Esautomotion to continue developing software and new integrated devices according to the principles of Industry 4.0, as well as to consolidate the performance of

existing products in new application sectors.

Business outlook: the order book and order-inflow, characterised until the end of 2022 by a substantial amount of accumulated orders and delayed deliveries, is gradually decreasing. The relative normalization of deliveries has reduced the phenomenon of "overorder" in the sector, fears of recession induce European customers to order more sparingly. In the second half of the year, a modest contraction of revenues compared to past growth trends is possible, especially in Europe.

The company has never stopped reacting to possible fluctuations in demand by intensifying its activities aimed at increasing market shares through:

• technological innovation to encourage the replacement of the machine park in countries where automation is already widespread, and to affirm customers in countries even further behind in the percentage of CNC machines compared to manual ones through high performances;
• attractiveness, in areas with high automation growth (China, Turkey in the first place but also new possible destinations deriving from decoupling such as India, and South America). Through our high level of service and competitiveness even in the less advanced product ranges but with high volumes in consideration of the speed with which these markets migrate by emulation to the most advanced technologies;
• development in possible areas of reshoring, in particular the United States;
• expanding its offer of products/services: the acquisition of the company Sangalli Servomotori, carried out in July 2023 as well as integrating a strategic supplier (32% of its production is already purchased by Esautomotion) opens the group's offer to new and promising market areas;

aiming to compensate for market decrease in times of downturn and to grow more than the market in periods of positivity.

Sangalli Servomotori will contribute to the Group's results since 2H2023.

Gianni Senzolo, CEO of Esautomotion commented on the results: "We are satisfied with the results of the first half of the year, as well as with the search for new customers and new growth areas. The integration with the acquired company Sangalli Servomotori will allow us to strengthen our position in our markets and to expand Esautomotion's growth horizon into new sectors."

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The Consolidated Financial Statement and Financial Statement, will be made available to the public, in compliance with the terms established by law, on the website http://www.esautomotion.it.

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With reference to the accounting data set out in this press release, it should be noted that this is data for which the statutory audit activity by the auditing firm has not been completed.

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PROFIT & LOSS	30-jun-23			30-jun-22		Changes
Thousands Euro
Net Sales Revenues	19.285	99,9%	16.420	99,7%	2.865	17,4%
Other Revenues	26	0,1%	52	0,3%	(26)	(50,2%)
TURNOVER	19.311	100,0%	16.472	100,0%	2.839	17,2%
Cost of Goods Sold	(10.291)	(53,3%)	(8.824)	(53,6%)	(1.467)	16,6%
Personnel Costs	(1.364)	(7,1%)	(1.136)	(6,9%)	(227)	20,0%
Services	(2.163)	(11,2%)	(1.963)	(11,9%)	(200)	10,2%
Other Costs	(119)	(0,6%)	(87)	(0,5%)	(32)	37,4%
OPERATIVE COSTS	(13.936)	(72,2%)	(12.010)	(72,9%)	(1.926)	16,0%
Non recurring Costs	-		-
EBITDA Adjusted	5.374	27,8%	4.462	27,1%	913	20,5%
EBITDA	5.374	27,8%	4.462	27,1%	913	20,5%
Depreciation and Amortization	(792)	(4,1%)	(801)	(4,9%)	9	(1,1%)
EBIT	4.582	23,7%	3.661	22,2%	922	25,2%
Financial Incomes (Costs)	109	0,6%	26	0,2%	83	> 100%
EBT	4.692	24,3%	3.687	22,4%	1.005	27,2%
Tax	(1.216)	(6,3%)	(913)	(5,5%)	(302)	33,1%
NET PROFIT (LOSS) Adjusted	3.476	18,0%	2.774	16,8%	702	25,3%
NET PROFIT (LOSS)	3.476	18,0%	2.774	16,8%	702	25,3%

Esautomotion Group Results at 30th June 2023 – Consolidated Income Statement IAS/IFRS

	BALANCE SHEET		30-jun-23	31-dec-22	Changes
		Thousands Euro
	Goodwill		98	98	-
	Intangible Assets		1.431	1.270	162
	Tangible Assets		655	570	85
	Rights of use		203	270	(67)
	Other non current assets		1	1	-
A	Non Current Assets		2.389	2.208	181
	Inventory		9.746	8.323	1.423
	Trade Credits		13.358	12.008	1.350
	Accounts payable		(6.485)	(7.115)	630
	OPERATING WORKING CAPITAL		16.619	13.217	3.403
	Other current assets		581	671	(90)
	Other current debts		(1.063)	(772)	(291)
B	Net Working Capital		16.137	13.115	3.022
	Severance pay		(268)	(253)	(15)
	Funds for risk and charges		(88)	(87)	(1)
C	Total Funds		(356)	(340)	(16)
D=A+B+C	Net Invested Capital		18.169	14.984	3.186
E	Assets held for sale		-	-	-
F=D+E	Total Net Invested Capital		18.169	14.984	3.186
	Share Capital		2.000	2.000	-
	Accumulated profit and reserves		25.813	23.741	2.072
	Minority interest		15	12	2
G	Total Equity		27.828	25.753	2.075
	Long term financial Debts		163	112	51
	Short term financial Debts		225	176	49
	Cash, Bank Deposits and Financial credits		(10.046)	(11.057)	1.012
H	Net Financial Position		(9.658)	(10.769)	1.111
I=G+H	Total Sources		18.169	14.984	3.186

Esautomotion Group Results at 30th June 2023 – Consolidated Balance Sheet IAS/IFRS

CASH FLOW STATEMENT	30-jun-23	30-jun-22
	Thousands Euro
Net Profit (Loss)	3.476	2.774
Corporate Income Taxes	1.216	913
Financial Costs (Income) & Exchange gains (losses)	(109)	(26)
Offset in working capital	16	21
Provisions	16	(42)
Depreciation	748	691
Cash flow from operation before changes in NWC	5.362	4.330
Changes in NWC	(3.111)	(3.571)
Cash flow after changes in NWC	2.251	760
Financial Costs paid	(2)	-
Taxes paid	(1.032)	(980)
Operating cash flow	1.217	(220)
CAPEX	1.073	(704)
Loan disbursement (repayment)	99	(80)
Increase in capital	-	-
Share Buyback	-	-
Changes in Equity	(129)	121
Dividends paid	(1.272)	(1.272)
Financial Changes	(1.302)	(1.232)
Changes in Liquidity	988	(2.156)
Cash beginning of the year	9.057	8.955
Cash at the end of the period	10.046	6.800

Esautomotion Group Results at 30th June 2023 – Consolidated Cash flows Statement IAS/IFRS

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Codice ISIN: IT0005337107

Ticker: ESAU

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Euronext Growth Adviser BPER Banca S.p.A. | esautomotion@bper.it Contacts Investor Relations Franco Fontana | franco.fontana@esautomotion.com | * * * * *

This announcement (including the information contained herein) is neither part of an offer to the public of financial products nor a solicitation of offers to buy financial products and no offer will be made to sell such products in any jurisdiction where such offer or sale would be contrary to applicable law. This announcement does not constitute an offer for sale of financial products in the United States of America, Australia, Canada and Japan and any other jurisdiction in which such offer or sale is prohibited and may not be made or distributed, directly or indirectly, in such jurisdictions. The financial products mentioned in this release have not been and will not be registered under the United States Securities Act of 1933, as amended; such products may not be offered or sold in the United States of America without registration or an exemption from registration. The documentation relating to the offer has not been/will not be submitted to the approval of CONSOB and Borsa Italia.

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