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Sit Investor Presentation 2019
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Investor Presentation
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2019H1 - Results presentation
September 12, 2019
2019H1 Results - Highlights
- 2019H1 consolidated revenues are 167,2 million -4,6% vs 2018H1
- 2019H1 displays two different trends in SIT's divisional sales:
- Heating, -12,8% vs 2018H1 after five year growth at 3,6% CAGR (+4,8% last three years)
- Smart Gas Metering, +29,6% vs 2018H1
- In the Heating business American market performs well (+16,1%)
- Benefits from performance improvement initiatives are currently offset by decrease in Heating volumes
- NWC and Net debt are in line with forecast
2019H1 - Key financial results
| (Euro million) |
2019H1 | % | 2018H1 | % | diff% |
|---|---|---|---|---|---|
| Revenues | 167 2 , |
0% 100 , |
175 4 , |
0% 100 , |
(4 6%) , |
| EBITDA | 21 1 , |
6% 12 , |
20 0 , |
4% 11 , |
5% 5 , |
| EBIT | 10 1 , |
6 0% , |
0 11 , |
6 3% , |
(8 1%) , |
| Net Income |
4 5 , |
2 7% , |
8 4 , |
4 8% , |
(46 3%) , |
| Cash flow from operations |
0 5 , |
(8 4) , |
|||
| NTWC | 36 9 , |
36 1 , |
|||
| financial debt Net |
87 6 , |
80 9 , |
Reported EBITDA includes the following non recurring items:
| 2019H1 | 2018H1 | |
|---|---|---|
| director Managing costs severance |
2 5 , |
|
| Translisting MTA to |
0 9 , |
|
| Captive shopfloor relocation and startup |
0 8 , |
|
| reimbursement Insurance |
(0 8) , |
|
| Provision for bonus CEO IPO post |
0 4 , |
|
| Other | 0 2 , |
(0 05) , |
| Total recurring operating items non |
0 6 , |
3 4 , |
| adoption First time IFRS 16 |
(1 3) , |
2019H1 – Consolidated revenues
Breakdown by Division
| million Euro |
2019H1 | % | 2018H1 | % | diff % |
|---|---|---|---|---|---|
| Heating | 123 | 73 | 2 | 80 | (12 |
| 1 | 6% | 141 | 5% | 8%) | |
| , | , | , | , | , | |
| Metering | 42 | 4% | 32 | 7% | 6% |
| Smart | 4 | 25 | 7 | 18 | 29 |
| Gas | , | , | , | , | , |
| Total | 165 | 99 | 173 | 99 | (4 |
| business | 5 | 0% | 9 | 2% | 8%) |
| sales | , | , | , | , | , |
| Other revenues |
1 7 , |
1 0% , |
1 5 , |
0 8% , |
15 8% , |
| Total revenues |
167 2 , |
100% | 175 4 , |
100% | (4 6%) , |
Breakdown by geography
| million Euro |
2019H1 | % | 2018H1 | % | diff % |
|---|---|---|---|---|---|
| Italy | 65 | 39 | 59 | 34 | 8 |
| 2 | 0% | 9 | 1% | 9% | |
| , | , | , | , | , | |
| (excluding | 61 | 8% | 76 | 3% | (19 |
| Italy) | 5 | 36 | 0 | 43 | 0%) |
| Europe | , | , | , | , | , |
| America | 29 | 17 | 25 | 14 | 16 |
| 1 | 4% | 0 | 3% | 3% | |
| , | , | , | , | , | |
| Asia/Pacific | 11 | 6 | 14 | 8 | (21 |
| 4 | 8% | 5 | 3% | 3%) | |
| , | , | , | , | , | |
| Total revenues |
167 2 , |
100% | 175 4 , |
100% | (4 6%) , |
2019H1 – Consolidated revenue bridge
1,9 2018H1 Vol/Mix -7,4 2019H1 -2,6 Prices Forex 175,4 167,2
Vol/Mix: Heating, -19,9€, -14,3% Smart Gas Metering, +12,5€, +38,2%
Price: mainly related to Smart Gas Metering
Forex: all in Heating
Euro million
2019H1 - Heating sales by geography
| million Euro |
2019H1 | % | 2018H1 | % | diff % |
|---|---|---|---|---|---|
| Italy | 25 | 20 | 28 | 20 | (10 |
| 5 | 7% | 4 | 1% | 1%) | |
| , | , | , | , | , | |
| (excluding | 57 | 6% | 72 | 3% | (20 |
| Italy) | 4 | 46 | 4 | 51 | 8%) |
| Europe | , | , | , | , | , |
| America | 29 | 23 | 24 | 17 | 16 |
| 0 | 5% | 9 | 7% | 1% | |
| , | , | , | , | , | |
| / | 11 | 9 | 15 | 10 | (26 |
| Pacific | 3 | 2% | 4 | 9% | 9%) |
| Asia | , | , | , | , | , |
| Total business sales |
123 1 , |
100% | 141 2 , |
100% | (12 8%) , |
- Italy reflects exceptional demand in 2018H1 due to export to China by Italian OEMs within Coal to Gas policy
- In Europe Turkey (-10,1€, -46,1%) because of change in regulation that took place in 2018H1
- America grows significantly (+4,0€, +16,1%, +8,8% at same forex rates)
- Trend in Asia/Pacific is mainly due to China which accounts -2,7€, -30,9% as the government incentive program (Coal to Gas policy) slowed down significantly
Heating sales recorded a significant growth in the last 5 years
All organic growth
Euro million
2019H1 - Smart Gas Metering keeps growing
Smart Gas Metering business sales by application
| million Euro |
2019H1 | % | 2018H1 | % | diff % |
|---|---|---|---|---|---|
| Residential | 40 | 94 | 31 | 96 | 26 |
| 0 | 4% | 7 | 7% | 4% | |
| , | , | , | , | , | |
| Commercial | 2 | 5 | 1 | 3 | 130 |
| & | 2 | 3% | 0 | 0% | 7% |
| Industrial | , | , | , | , | , |
| Other | 0 | 3% | 0 | 3% | 5% |
| 1 | 0 | 1 | 0 | 42 | |
| , | , | , | , | , | |
| Total business sales |
42 4 , |
100% | 32 7 , |
100% | 29 6% , |
- 2019H1 sales are mainly realized in Italy
- Product qualification and pilot testing in foreign markets are in process
- UK certification expected by 2020.Q1
2019H1 - Smart Gas Metering order portfolio
2019H1 – EBITDA bridge
Euro million
2019H1 – Net trade working capital
| million Euro |
2019 06 |
2018 12 |
2019 06 vs 2018 12 |
2018 06 |
2017 12 |
2018 06 vs 2017 12 |
|---|---|---|---|---|---|---|
| Inventory | 62 4 , |
52 2 , |
10 2 , |
59 1 , |
38 1 , |
21 0 , |
| receivables Accounts |
52 3 , |
52 0 , |
0 3 , |
58 7 , |
52 1 , |
6 6 , |
| payables Accounts |
77 8 , |
74 8 , |
3 0 , |
81 7 , |
68 4 , |
13 4 , |
| Trade Working Capital - reported Net |
36 9 , |
29 5 , |
7 4 , |
36 1 , |
21 9 , |
14 2 , |
| / Revenues* NTWC |
10 9% , |
8 2% , |
2 7% , |
10 2% , |
6 8% , |
3 4% , |
* annualized NTWC @ End of Period
- 2019H1 change in inventory reflects Heating business seasonality and increase in Smart Gas Metering order backlog
- Improved payment terms on Account Receivables due to reabsorption of 2018.06 overdue
2019H1 – Cash flow statement
| million Euro |
2019H1 | 2018H1 | |
|---|---|---|---|
| cash flow Current |
23 0 , |
24 5 , |
|
| Change working capital in net |
(14 8) , |
(21 3) , |
|
| Capex net , |
(7 7) , |
(11 6) , |
|
| Cash flow from operations |
0 5 , |
(8 4) , |
|
| Financial charges paid and accrued , |
(1 6) , |
(1 7) , |
|
| Dividends paid |
(7 0) , |
(6 0) , |
|
| IFRS 16 Leases - |
(0 6) , |
- | |
| Other | (0 4) , |
0 4 , |
|
| Change debt in net |
(9 1) , |
(15 8) , |
| debt reported Net BoP - |
71 3 , |
65 1 , |
|---|---|---|
| initial recognition IFRS 16 BoP - |
7 1 , |
- |
| debt Net EoP - |
87 6 , |
80 9 , |
Regulatory statement:
The manager responsible for the preparation of the company's accounts, Paul Fogolin, hereby declares, as per article 154-bis, paragraph 2, of the "Testo Unico della Finanza", that all information related to the company's accounts contained in this presentation are fairly representing the accounts and the books of the company.
Paul Fogolin Chief Financial Officer
IR contact:
Mara Di Giorgio
Investor Relations Dept.
+39 335 7737417
SIT – Investor [email protected]
Disclaimer
- This presentation has been prepared by SIT S.p.A. only for information purposes and for the presentation of the Group's results and strategies.
- For further details on the SIT Group, reference should be made to publicly available information.
- Statements contained in this presentation, particularly those regarding any SIT Group possible or assumed future performance, are or may be forward looking statements and in this respect they involve some risks and uncertainties.
- Any reference to past performance of the SIT Group shall not be taken as an indication of future performance.
- This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
- By attending or reading this presentation you agree to be bound by the foregoing terms.
