Esautomotion

Earnings Release • Mar 30, 2023

Informazione Regolamentata n. 20133-3-2023		Data/Ora Ricezione 30 Marzo 2023 17:01:02	Euronext Growth Milan
Societa'	:	ESAUTOMOTION
Identificativo Informazione Regolamentata	:	174409
Nome utilizzatore	:	ESAUTOMOTIONN02 - Fontana
Tipologia	:	1.1
Data/Ora Ricezione	:	30 Marzo 2023 17:01:02
Data/Ora Inizio Diffusione presunta	:	30 Marzo 2023 17:30:08
Oggetto	:	Annual Report 2022
Testo del comunicato

Vedi allegato.

PRESS RELEASE

Esautomotion approves the 2022 draft financial statements and the 2022 draft consolidated financial statements

• Sales, EBTDA, and Net Profit GROWTH;

•Operating Cash Flow + Euro 2,9 million

•Net PFN Euro (-10.8 million) (Cash positive)

CONSOLIDATED 31/12/2022:

• REVENUES: Euro 34,091 thousand (vs. Euro 28,608 thousand) + 19.2%
• EBITDA: Euro 8,692 thousand (vs. Euro 8,044 thousand) + 8.1 %
• EBITDA margin: 25.5% (vs. 20.1%) 2.6 percentage points
• NET PROFIT: Euro 5,102 thousand (vs. Euro 5,048 thousand) + 1,1%

•NET PROFIT margin 15.0.6% (vs. 17.6%) - 2.6 percentage points

• OPERATING CASH FLOW: Euro 2,899 thousand (vs. Euro 4,287)
• NET FINANCIAL POSITION: (Positive cash) for Euro - 10,769 thousand (vs. Euro - 10,546 thousand)
• TREASURY SHARES IN PORTFOLIO n. 383.000
• DIVIDEND: Euro 0,1. x/share: payout ratio (of the group) 24,9%, yield 2.2%

Carpi, 30th March 2023

The Board of Directors of Esautomotion S.p.A. ("Esautomotion", "ESA" or the "Company"), holding company of the Esautomotion Group (the "Group") active in the field of high-precision mechatronic components for industrial machines, today approved the Consolidated Financial Statements and the Individual Financial Statements for the year ended 31st December 2022.

MAIN CONSOLIDATED RESULTS 2022

Group revenues at December 31, 2022 equal to Euro 34,091 thousand recording growth of 18,2% compared to 2021.

This result is mainly due to the following factors:

• Good economic situation in 2022, which confirmed and improved the results of 2021 despite the presence of strong disturbances on the logistics and Semiconductor supply chain, requiring considerable organizational and financial efforts from the company.
• Positive growth trend in sales volumes at all historical and recently acquired customers
• R&D: Continuous improvement of product performances, especially in strategic market applications: Sheet Metal, Laser, Marble. Increased penetration in strategic customers in terms of share of CNC compared to competitors, expansion of the offer to various complementary applications, expansion of the offer to motors and drivers.

Continuation of the intense internationalization activity at world level, in particular in China, Turkey and the Iberian Peninsula, USA.

The level of "direct" exports of the Group is 48%, in addition to products sold on the domestic market and then exported by Italian machine manufacturers customers; this value estimates direct plus indirect exports at approximately 80% of revenues.

EBITDA, equal to Euro 8,692 thousand (25.5% of Revenues), grew by 8.1% compared to 2021. The slight contraction in terms of percentage of revenues is mainly due to cost increases due to the shortage of components: in some cases, the company had to source from alternative channels, with an increase in costs and request financial advanced payments. Logistics channels have also increased costs. We believe these negative factors are improving thanks to the search for alternative suppliers and components and the gradual return of the shortage itself. In 2022, a new Operations Manager focused on this goal was hired and the investment in the Automated Warehouse system was initiated.

R&D remains the Group's area of greatest investment. Research and development activities continued, mainly aimed at:

• 1. integration between different mechatronic technologies;
• 1. development of communication 4.0 and networking logics;
• 1. increased performance;
• 1. development and integration of new devices, sensors, components;
• 1. development of new kinematics;
• 1. improvement of energy efficiency and green transition;
• 1. materials engineering.
• 1. New complementary and synergistic business lines

These activities have allowed Esautomotion to continue developing software and new integrated devices according to the principles of Industry 4.0, and to consolidate the performance of products in new application sectors.

In 2022, the company invested in R&D to Euro 1,191 thousand, at the same level as all previous years.

The Consolidated Net Financial Position shows a positive cash balance of Euro 10,796 thousand compared to Euro 10,546.340 thousand at 31 December 2021 as a result of the cash generation capacity of current assets.

The severe crisis on the electronic components and semiconductor market, combined with the increase in turnover, required a significant increase in working capital (+Euro 3,308 thousand).

This is mainly due to the increase in stocks of essential components and advanced financial request (with requests for advanced payments of up to 1 year on deliveries) for some of these components. These choices have become indispensable in order not to penalize our growth, but they are the object of greatest attention by the company management directed towards a quick return to normality.

In addition, the company holds 383,000 treasury shares equal to a value of approximately Euro 1,704 thousand, at the listing price (€ 4,45 each) of March 29, 2023.

CEO Gianni Senzolo said: "We are satisfied with our 2022results. The very strong growth of 60% in 2021 has been consolidated with a further increase in revenues and good profitability. The effects of the pandemic at first, of the shortage of the components that still persists today, and the geopolitical movements that will continue to affect the markets for the coming years, have required and will require a continuous reconfiguration of the way of doing business.

For Esautomotion the priority was first of all to allow our customers to continue production: if our products do not reach the customer, its production line stops!

To do this, it was necessary to implement a series of extraordinary measures that made it possible to cope with the shortage of components, the dizzying increase in logistics costs, speculative phenomena on prices and sometimes exorbitant financial advanced request to secure supplies. We consider the increase in Working Capital requested in 2022 as extraordinary and we plan to reabsorb it during 2023/2024.

The entry of orders in 2023 is still sustained. To cope with deliveries, the company had to review some internal processes and especially redesign its products, making them able to use alternative components in order to expand the pool of alternative suppliers in the world.

However, we maintain our attention, even in this period of strong growth market, towards the acquisition of new customers in the world, a true guarantee of continuous growth for the future

GENERAL TREND OF THE CNC MARKET IN 2022

Referring to the 2022 balance sheet data of the FA division (CNC, servomotors, lasers) of Fanuc - Japan, world leader in the CNC sector, we observe a growth in world turnover of about 22% (from 208 billion Yen to 254 billion Yen). Such a company (50 times larger than Esautomotion) is an excellent indicator of the growth of the entire world market.

Andrea Senzolo, General Manager of Esautomotion: "The results of 2022 were good despite the difficulties encountered, we are working for an excellent 2023 in which to improve profitability, efficiency and growth. We continue to pursue our strategy by intensifying the drive towards the most

resilient markets (China, Turkey), and with high future growth potential (USA), we have hired strategic resources in logistics management and the commercial function and expanding the range of products sold

Investments for the growth of the US market continue as well as research and analysis of growth opportunities for external lines.

FORESEEABLE DEVELOPMENT OF OPERATIONS

The Group will continue its commitment to improving its operating result, albeit in the uncertain economic and financial context due to the shortage of semiconductor components and difficulties in global supply chains. The Company has no activities in the hot spots of the Russian-Ukrainian conflict. The large order book of Esautomotion as well as that of our customers does not predict a decline in revenue trends for the coming months.

REPORTING OF DATA FOR THE FIRST QUARTER OF 2023

As already communicated in the Financial Calendar, on May 5st 2023 the unaudited data of consolidated Operating Revenues and Net Financial Position as at 31 March 2023 will be published.

RESIGNATION OF A STANDING AUDITOR

Esautomotion announces that, today, Mr. Mirco Zucca has resigned from the role of Statutory Auditor of the Company, for professional reasons, with effect from the date of approval of the financial statements closed on 31 December 2022. The Shareholders' Meeting (referred to below) will therefore replace him, and the Company will promptly notify the market. Thank Dr. Zucca for the position held.

SHAREHOLDERS' MEETING

The Board of Directors has mandated the Chairman to convene the Annual Shareholders' Meeting for April 20th 2023, at 10.30 a.m., in single call, conventionally at the Registered Office in Via della Meccanica, n. 23/1 – 41012 Carpi (MO), with the following agenda:

Ordinary part

• 1. Approval of the individual financial statements of Esautomotion S.p.A. as at 31 December 2022. Inherent and consequent resolutions. Presentation of the consolidated financial statements of the Esautomotion Group as at 31 December 2021.
• 1. Allocation of profit for the year. Inherent and consequent resolutions.
• 1. Appointment of a Standing Auditor. Related and consequent resolutions

The Board of Directors resolved to propose to the Ordinary Shareholders' Meeting the following allocation of Esautomotion Spa's profit for the year, equal to Euro thousand:

Euro 1,272 thousand to Shareholders as a dividend corresponding to Euro 0.1 x share.

Euro 2.131 thousand a Reserve Profits brought to New.

This dividend will be paid in a single payment (coupon n.7) equal to € 0.1. This coupon will be paid starting from May 11, 2022 with an ex-dividend date on May 9, 2022 and a record date on May 10, 2022;

The dividend yield, calculated on the official closing price at 29 March 2022, was 2.3% while the payout ratio was 24.9% of the Group's consolidated profit.

For more information, please refer to the notice of convocation and to the documentation supporting the resolution proposals, which will be published and made available to the Shareholders of the Company in compliance with the provisions of the law and articles of association applicable on April,12 2022 on the website www.esautomotion.it in the "Investor Relations/Shareholders' Meeting" section.

* * *

The Consolidated Financial Statements and the Financial Statements will be made available to the public, in compliance with the terms provided for by law, on: www.esautomotion.com

* * *

With reference to the accounting data set out in this press release, it should be noted that these are data for which the statutory audit activity by the Independent Auditors has not been completed. * * *

PROFIT & LOSS	31-dec-22		31-dec-21		Changes
Thousands Euro
Net Sales Revenues	33.828	99,2%	28.327	99,0%	5.501	19,4%
Other Revenues	263	0,8%	281	1,0%	(18)	(6,4%)
TURNOVER	34.091	100,0%	28.608	100,0%	5.483	19,2%
Cost of Goods Sold	(18.517)	(54,3%)	(14.895)	(52,1%)	(3.622)	24,3%
Personnel Costs	(2.363)	(6,9%)	(2.134)	(7,5%)	(229)	10,7%
Services	(4.277)	(12,5%)	(3.409)	(11,9%)	(869)	25,5%
Other Costs	(242)	(0,7%)	(126)	(0,4%)	(116)	92,3%
OPERATIVE COSTS	(25.399)	(74,5%)	(20.564)	(71,9%)	(4.836)	23,5%
EBITDA	8.692	25,5%	8.044	28,1%	648	8,1%
Depreciation and Amortization	(1.858)	(5,4%)	(1.648)	(5,8%)	(210)	12,7%
EBIT	6.834	20,0%	6.396	22,4%	438	6,8%
Financial Incomes (Costs)	(9)	-	32	0,1%	(41)	(128,5%)
EBT	6.825	20,0%	6.428	22,5%	397	6,2%
Tax	(1.723)	(5,1%)	(1.380)	(4,8%)	(343)	24,8%
NET PROFIT (LOSS)	5.102	15,0%	5.048	17,6%	54	1,1%

Esautomotion Group Results at 31 st December 2022 – Consolidated Income Statement IAS/IFRS

	BALANCE SHEET	31-dec-22	31-dec-21	Changes
		Thousands Euro
	Goodwill	98	98	-
	Intangible Assets	1.270	1.248	22
	Tangible Assets	570	632	(63)
	Rights of use	270	405	(135)
	Other non current assets	1	1	-
A	Non Current Assets	2.208	2.384	(176)
	Inventory	8.323	4.192	4.131
	Trade Credits	12.008	11.208	800
	Accounts payable	(7.115)	(5.526)	(1.588)
	OPERATING WORKING CAPITAL	13.217	9.874	3.342
	Other current assets	671	165	505
	Other current debts	(772)	(655)	(117)
B	Net Working Capital	13.115	9.385	3.731
	Severance pay	(253)	(229)	(24)
	Funds for risk and charges	(87)	(166)	79
C	Total Funds	(340)	(395)	55
D=A+B+C	Net Invested Capital	14.984	11.374	3.609
E	Assets held for sale	-	-	-
F=D+E	Total Net Invested Capital	14.984	11.374	3.609
	Share Capital	2.000	2.000	-
	Accumulated profit and reserves	23.741	19.912	3.829
	Minority interest	12	8	4
G	Total Equity	25.753	21.920	3.833
	Long term financial Debts	112	251	(139)
	Short term financial Debts	176	171	5
	Cash, Bank Deposits and Financial credits	(11.057)	(10.968)	(90)
H	Net Financial Position	(10.769)	(10.546)	(224)
I=G+H	Total Sources	14.984	11.374	3.609

Esautomotion Group Results at 31 st December 2022 – Consolidated Balance Sheet IAS/IFRS

CASH FLOW STATEMENT	31-dec-22	31-dec-21
	Thousands Euro
Net Profit (Loss)	5.102	5.048
Corporate Income Taxes	1.723	1.380
Financial Costs (Income) & Exchange gains (losses)	9	(32)
Offset in working capital	84	35
Provisions	(31)	38
Depreciation	1.579	1.531
Cash flow from operation before changes in NWC	8.466	8.000
Changes in NWC	(3.961)	(3.177)
Cash flow after changes in NWC	4.505	4.823
Financial Costs paid	-	-
Taxes paid	(1.607)	(535)
Operating cash flow	2.898	4.288
CAPEX	(1.393)	(1.560)
Loan disbursement (repayment)	(135)	(250)
Increase in capital	-	-
Share Buyback	-	-
Changes in Equity	4	101
Dividends paid	(1.272)	(636)
Financial Changes	(1.403)	(785)
Changes in Liquidity	102	1.943
Cash beginning of the year	8.955	7.012
Cash at the end of the period	9.057	8.955

Esautomotion Group Results at 31 st December 2022 – Consolidated Cash flows Statement IAS/IFRS

PROFIT & LOSS 31-dec-22 31-dec-21 Changes Thousands Euro Revenues 28.811 92,6% 23.393 97,6% 5.418 23,2% Change in semi-finisched and finisched products 1.641 5,3% (61) (0,3%) 1.702 (2.790,2%) Other revenues and services 673 2,2% 645 2,7% 28 4,3% Total production value 31.125 100,0% 23.977 100,0% 7.148 29,8% Subsidiary and consumer raw materials (19.667) (63,2%) (13.188) (55,0%) (6.479) 49,1% Costs for Services (3.805) (12,2%) (2.927) (12,2%) (878) 30,0% Costs for use of third-party assets (230) (0,7%) (217) (0,9%) (13) 6,0% Personnel costs (2.811) (9,0%) (2.862) (11,9%) 51 (1,8%) Amortization, depreciation and write-downs (1.087) (3,5%) (1.030) (4,3%) (57) 5,5% Change in inventories of raw materials 1.421 4,6% 634 2,6% 787 > 100% Other provisions (21) (0,1%) (20) (0,1%) (1) 5,0% Other Costs (192) (0,6%) (124) (0,5%) (68) 54,8% Total Production Costs (26.392) (84,8%) (19.734) (82,3%) (6.658) 33,7% Difference between value and production costs 4.733 15,2% 4.243 17,7% 490 11,5% Total income and (financial) charges (18) (0,1%) 4 - (22) (550,0%) Result before the taxes 4.715 15,1% 4.247 17,7% 468 11,0% Taxes (1.159) (3,7%) (843) (3,5%) (316) 37,5% Profit (loss) for the year 3.556 11,4% 3.404 14,2% 152 4,5%

Esautomotion S.p.A. Results at 31 st December 2022 – Income Statement ITA GAAP

	BALANCE SHEET		31-dec-22	31-dec-21	Changes
		Thousands Euro
	Goodwill		57	63	(6)
	Intangible assets		2.692	3.563	(871)
	Tangible fixed assets		195	155	40
	Investments		1	1	-
	Participation in subsidiaries		27	27	-
	Long-term loans		171	165	6
A	Fixed Assets		3.143	3.974	(831)
	Inventories		7.031	3.051	3.980
	Trade Receivables		11.070	10.397	673
	Trade Receivables to subsidiaries		867	380	487
	Tax credits		707	328	379
	Prepaid taxes		150	113	37
	Other credits		214	213	1
	Financial assets		2.000	2.013	(13)
	Cash on hand		7.922	8.355	(433)
B	Current Assets		29.961	24.850	5.111
C	Prepayments and accrued income		55	57	(2)
D=A+B+C	TOTAL ASSETS		33.159	28.881	4.278
	Share Capital		2.000	2.000	-
	Reserves, Retained Earnings		18.198	16.066	2.132
	Net Profit of the year		3.556	3.404	152
E	Equity		23.754	21.470	2.284
	Provisions for risks and charges		87	166	(79)
	TFR		274	204	70
	Long Term Financial Debt		-	-	-
	Short Term Financial Debt		-	-	-
	Prepayment received		44	-	44
	Trade Payable		7.239	5.411	1.828
	Trade Payable to subsidiaries		419	148	271
	Tax payables		595	703	(108)
	Social security institutions		155	172	(17)
	Other debts		547	602	(55)
F	Total Debts and Funds		9.360	7.406	1.954
	G Accrued expenses and deferred income		45	5	40
H=E+F	TOTAL LIABILITIES		33.159	28.881	4.278

Esautomotion S.p.A. Results at 31 st December 2022 – Balance Sheet ITA GAAP

CASH FLOW STATEMENT		31-dec-22	31-dec-21
	Thousands Euro
Net Profit (Loss)		3.556	3.404
Corporate Income Taxes		1.159	843
Financial Costs (Income)		5	9
Dividends and capital gains		-	-
Provisions & others		436	235
Depreciation		1.004	995
Cash flow from operation before changes in NWC		6.160	5.486
Changes in NWC		(3.799)	(1.832)
Cash flow after changes in NWC		2.361	3.654
Financial Costs paid		(5)	(8)
Taxes paid		(1.169)	(373)
Dividends cashed		-	-
(Use of funds)		(176)	(166)
Operating cash flow		1.011	3.107
CAPEX		(172)	(202)
Loan disbursement (repayment)		-	(107)
Increase in capital		-	-
Share Buyback		-	-
Dividends paid		(1.272)	(636)
Financial Changes		(1.272)	(743)
Changes in Liquidity		(433)	2.162
Cash beginning of the year		8.355	6.193
Cash at the end of the period		7.922	8.355

Esautomotion S.p.A. Results at 31 st December 2022 – Cash flows Statement ITA GAAP

ISIN Code: IT0005337107

Ticker: ESAU

For the dissemination of regulated information, the Issuer uses the eMarket SDIR circuit managed by SPAFID Connect S.p.A.

For more information

Contacts Appointed Advisor, Specialist and Corporate Broker

BPER Banca S.p.A. | esautomotion@bper.it |

Investor Relations Contacts

Franco Fontana | franco.fontana@esautomotion.com |+39 3770866699

* * * * *

This announcement (including the information contained herein) does not constitute part of an offer to the public of financial products or a solicitation of offers to purchase 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 to sell 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 published 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 in the absence of registration or an exemption from the application of registration obligations. The documentation relating to the offer has not been/will not be submitted to the approval of CONSOB and Borsa Italia.

Numero di Pagine: 13