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Fidia Investor Presentation 2018

Mar 20, 2019

4258_rns_2019-03-20_7a1d796e-504b-494c-9243-74354d705de0.pdf

Investor Presentation

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Star Conference Milan, March 2019

Table of contents

Company profile 3 Group Net Revenues 17
Fidia Group Organization 4 Order acquisition 19
Products 6 Order Backlog 20
New Fidia's Plant in Forlì 12 Research and Development 21
Consolidated financial statement 14 Fidia communication media 22
Group Net Revenues $\mathsf{L}\mathsf{L}$
Order acquisition 19
Order Backlog
Research and Development 21
Fidia communication media ככ

Company profile

FIDIA S.p.A., established in Turin since 1974, designs, manufactures and sells Numerical Controls and High Speed Milling (HSM) Systems for the production of complex shapes mainly for the automotive, aerospace and energy sectors.

With three industrial sites in Italy, one Joint Venture in China and seven Subsidiaries overseas, the FIDIA Group employs 336 people.

The Company is focused on high-quality products and customizable machines being, since its creation, among the world leaders in the field of Numerical Controls for machining of complex surfaces as well as in the one for High-Speed Five Axis Milling Centers. In the last years due to their outstanding performances, the new gantry type machines "GTF" have encountered a considerable success in the global market both in the mold & die and aerospace industries.

A significant percentage of the Group's annual turnover is invested every year in research and development. Certified ISO9001 since 1996, FIDIA S.p.A. is constantly focused on improving the performances, quality and reliability of its products.

Technological excellence, constant innovation, highly skilled human resources and international business presence are the key factors of the FIDIA success over more than 40 years of activity.

4

Subsidiares Service Center Joint Ventures

Spindle Change System M5E Head

for Aerospace GTF/RE

for Stamping Dies GTF/RH

GTF/QS

for Injection Molds

ViMill®

ViMill® acts like a safety guard of the machine: a 3D virtual reality "avatar" focused on observing and safely controlling the resulting situations of the given milling toolpath in the near future.

HiMonitor

In order to monitor activities performed on the machines, from milling times to machine downtime and faults, Fidia has developed the HiMonitor module which provides this information both on the control and on a remote device, such as a smartphone, tablet or PC.

Production Plant Layout

Fidia Group: consolidated financial statement as at 31.12.2018

Consolidated profit and loss statement
(Euro/thousands)
31/12/2018 % 31/12/2017 %
Net revenues 57.741 98,0% 46.013 95,9%
Change in finished goods and W.I.P. (820) -1,4% (79) -0,2%
Other operating revenues 1.994 3,4% 2.025 4,2%
Value of production 58.915 100,0% 47.959 100,0%
Raw materials and consumables (23.394) -39,7% (16.924) -35,3%
Commissions, transport and subcontractors (5.189) -8,8% (4.109) -8,6%
Other services and operating costs (11.434) -19,4% (10.543) -22,2%
Added value 18.898 32,1% 16.383 34,2%
Personnel costs (17.654) -30,0% (17.619) -36,7%
Gross operating margin (EBITDA) 1.244 2,1% (1.235) -2,6%
Provision for bad debts & tax credits loss (475) -0,8% (174) -0,4%
Depreciation and amortization (1.192) -2,0% (982) -2,0%
Operating margin of the ordinary
activity
(423) -0,7% (2.391) -5,0%
Non-recurring cost (272) -0,5% 0 0,0%
Operating margin (EBIT) (695) -1,2% (2.391) -5,0%
Net financial income (expenses) (487) -0,8% (187) -0,4%
Profit (loss) on exchange rates (67) -0,1% 153 0,3%
Margin before taxes (EBT) (1.249) -2,1% (2.425) -5,1%
Income taxes (current and deferred) (304) -0,5% (673) -1,4%
Net income (loss) for the accounting
period
(1.552) -2,6% (3.098) -6,5%
Income (loss) attributable to minority
interest shareholders
(238) -0,4% (32) -0,1%
Income (loss) attributable to the Group (1.314) -2,2% (3.066) -6,4%
Fidia Group: consolidated financial statement as at 31.12.2018
Consolidated statement of financial position
(Euro/thousands)
31/12/2018 31/12/2017
Property, plant and equipment 11.313 11.267
Intangible fixed assets 2.342 1.758
Investments 16 16
Pre-paid tax assets 958 738
Other financial assets 274 759
Fixed assets – (A) 14.903 14.538
Net trade receivables 18.061 14.339
Inventory 18.419 17.846
Other current assets 1.789 1.263
Current assets – (B) 38.269 33.448
Supplier payables (16.394) (9.928)
Other current liabilities (10.579) (15.801)
Current liabilities – (C) (26.973) (25.729)
Net working capital (D) = (B+C) 11.296 7.719
Provision for employee severance indemnities (E) (2.189) (2.292)
Other long-term liabilities (F) (688) (470)
Net invested capital (G) = (A+D+E+F) 23.321 19.494
Financial position
Financial assets available for sale - -
Bank deposits and cash (6.561) (11.520)
Short-term loans 8.952 6.329
Current (Assets)/Liabilities for derivatives - -
Other current financial liabilities - -
Current financial position (credit)/debit 2.391 (5.191)
Long-term loans, net of current portion 8.881 11.294
Non current (Assets)/Liabilities for derivatives 88 66
Net financial position (credit)/debt (H) 11.361 6.169
Share capital 5.123 5.123
Reserves 6.516 9.362
Net income (loss) for the accounting period attributable to
the Group
(1.314) (3.066)
Total shareholders' equity attributable to the Group 10.325 11.419
Shareholders' equity attributable to minority interests 1.636 1.905
Shareholders' equity (I) 11.961 13.324
Shareholders' equity and net financial position (L) = (H+I) 23.321 19.494

Fidia Group: main consolidated financial data as at 31.12.2018

Euro/thousands 31/12/2018 % 31/12/2017 %
Net revenues 57.741 98,0% 46.013 95,9%
Value of production 58.915 100,0% 47.959 100,0%
Gross operating margin (EBITDA) 1.244 2,1% (1.235) -2,6%
Operating margin (EBIT) (695) -1,2% (2.391) -5,8%
Earning before tax (EBT) (1.249) -2,1% (2.425) -5,1%
Net consolidated profit/(loss) (1.552) -2,6% (3.098) -6,5%
- Bank deposits and cash (6.561) (11.520)
- Long and short term loan 17.833 17.623
Net financial position (credit)/debt (H) 11.361 6.169
Net equity 11.961 13.324

The electronic sector (CNC) revenues amount to 3.467 thousand euros, with a slow decrease compared to year 2017.

The mechanical sector (HSM) revenues amount to 40.923 thousand euros, with a relevant increase compared to year 2017; the after sale service business (Service) has recorded revenues for 13.351 thousand euros.

Considering the new orders acquired in the first months of the year, HSM Systems production has almost reached saturation for 2019.

Continuous Bi-rotary Heads

Group Order Acquisition per Area

20

Research and Development

The R&D activities have always been one of the strengths of the Group and received substantial investments over the years. A team of approx. 38 people, supported by specialized consultants, is currently working on R&D activities.

The R&D activities are carried out mainly by in-house resources and a substantial part of the expenses are personnel costs (about 2,1 million in the FY 2018). All costs incurred are posted directly to the income statement.

The group's R&D mission is to tailor its products to the needs of the customer, aiming to be among top companies concerning technological innovation within the Aerospace, Automotive and General Machining sectors.

Research covers both lines of business of the Group.

The costs incurred by the Group in 2018 amounted to approx. 2,3 million (about 4,0% of revenues).

In cooperation with Italian and European Research Centers and several leading Industrial companies, the Group is engaged in:

Q 5 projects co-financed by the European Commission within H2020 Programs.

Q 1 italian project financed by Regione Piemonte

communication media FIDIA

FIDIA S.p.A. Corso Lombardia, 11 10099 San Mauro Torinese - TO - ITALY Tel. +39 011 2227111 Fax +39 011 2238202 [email protected] www.fidia.com

FIDIA GmbH

Robert-Bosch-Strasse 18 63303 Dreieich-Sprendlingen - GERMANY Tel. +49 6103 4858700 Fax +49 6103 4858777 [email protected]

FIDIA Co.

3098 Research Drive Rochester Hills MI 48309 - USA Tel. +1 248 6800700 Fax +1 248 6800135 [email protected]

FIDIA Sarl

47 bis, Avenue de l'Europe B.P. 3 - Emerainville 77313 Marne La Vallee Cedex 2 - FRANCE Tel. +33 1 64616824 Fax +33 1 64616794 [email protected]

FIDIA Iberica S.A.

Parque Tecnológico Laida Bidea, Edificio 208 48170 Zamudio - Bizkaia - SPAIN Tel. +34 94 4209820 Fax +34 94 4209825 [email protected]

FIDIA DO BRASIL LTDA

Av. Padre Anchieta, 161 - Jordanopolis São Bernardo do Campo 09891-420 - SP - BRASIL Tel. +55 11 3996-2925 [email protected]

FIDIA JVE

Beijing Fidia Machinery & Electronics Co., Ltd Room 1509, 15/F Tower A. TYG Center Mansion C2 North Road East Third Ring Road, Chaoyang District 100027 BEIJING - P.R. CHINA Tel. +86 10 64605813/4/5 Fax +86 10 64605812 [email protected]

FIDIA JVE

Shanghai Office 28/D, No.1076, Jiangning Road Putuo District Shanghai 200060 - CHINA Tel. +86 21 52521635 Fax +86 21 62760873 [email protected]

OOO FIDIA

c/o Promvost Sushovskiy Val, Dom 5, Str. 2, Office 411 127018 Moscow - RUSSIA Tel.: +7 499 9730461 Mobile: +7 9035242669 [email protected] [email protected]

Service centres:

FIDIA GmbH - SERVICE CZ

CZ- 74706 Opava Tel/Fax +420 553 654 402 [email protected]

FIDIA S.p.A. - SALES & SERVICE UK

32 Riverside, Riverside Place Cambridge - Cambridgeshire CB5 8JF - United Kingdom Mobile: +44 - (0)7425 838162 [email protected]

3H MAKINA

Atasehir Bulvari, Ata 2/3 Plaza, Kat: 9 No: 80 Atasehir - Istanbul - TURKEY Tel.: +90 216 456 10 43 Fax: +90 216 456 75 23 [email protected] [email protected]

AXIS SYSTEMS

T8 ~ T9 ~ T20, "INSPIRIA" Old Mumbai - Pune Highway, Pune – 411044, India Cell : +91 9881245460 [email protected]

P.V. ELECTRONIC SERVICES C.C.

P.O. Box 96 Hunters Retreat 6017 Port Elisabeth SOUTH AFRICA Tel. +27 41 3715143 Fax +27 41 3715143 [email protected]

SHIYAN FIDIA SERVICE CENTRE

N.84 Dong Yue Road, Shiyan, Hubei - CHINA Tel. +86 719 8225781 Fax +86 719 8228241

CHENGDU FIDIA SERVICE CENTRE

Huang Tian Ba Chengdu, Sichuan - CHINA Tel. +86 28 87406091 Fax +86 28 87406091

IE-MAT s.r.l.

Bv. De Los Calabreses 3706 Barrio: Boulevares. Córdoba - ARGENTINA CP: X5022EWW Tel. +54 351 5891717 [email protected]

Manufacturing plants:

FIDIA S.p.A. Via Valpellice, 67/A 10060 San Secondo di Pinerolo TO - ITALY Tel. +39 0121 500676 Fax +39 0121 501273

FIDIA S.p.A.

Via Balzella, 76 47100 Forlì ITALY Tel. +39 0543 770511 Fax +39 0543 795573 [email protected]

SHENYANG FIDIA NC & MACHINE CO., LTD.

No. 1 17 Jia Kaifa Rd. Shenyang Economic & Technological Development Zone 110141 Shenyang - P.R. CHINA Tel. +86 24 25191218/9 Fax +86 24 25191217 [email protected]

Research centres:

FIDIA S.p.A.

c/o Tecnopolis Str. Provinciale per Casamassima Km 3, 70010 Valenzano Bari - ITALY Tel. +39 080 4673862

FIDIA S.p.A. Corso Lombardia, 11 10099 San Mauro Torinese (TO) - ITALY www.fidia.com