2023 full year results
INVESTORS LIVE STREAMING PRESENTATION
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FY 2023 financial highlights
Revenues flat YoY but Edge AIoT share growing to 41% +79% at constant exchange rates
InoNet growing YoY on Revenues, GPM and EBITDA Rev +14.9%, GPM +520bps, EBITDA margin from 4.8% to 11.3%
Gross Profit Margin @ 47.4% improving 240bps YoY w/o InoNet GPM @48.9%
EBITDA margin still mid single digit
affected by OPEX grow to support mid-term strategy
Inventory down 3.7M€ at constant exchange rates
but Net Working Capital affected by payables reduction (8M€)
Net Financial Position chasing NWC net debt @ 20.6M€
#3
business
update
#4
normalised revenue tells an organic growth story
-12%+22%
+41%
+15%
2021
2022
2023
REPORTED | EUROTECH CORE | EUROTECH CORE |
W/O INONET CORE | RESTARTED |
Restatements:
PPVs
Overstocking / Destocking
Delayed deliveries
InoNet core = revenues as a stand- alone company
InoNet organic growth driven by ETH counted as ETH core
#5
InoNet promises coming true
ebitda growing 4x in 1 year
#FY23 revenues +15% YoY
organic growth
#new wins on ADAS
giving a better mix, to the benefit of GPM
#GPM up ca. 520 bps YoY
thanks to a better mix, plus actions on prices vs customers & suppliers coming to fruition
#EBITDA margin @ 11%
with good prospects to keep it going forward
#6
company strategic pivoting is happening
Edge AIoT surpassing Legacy Embedded in 2024
embedded boards & systems | edge AIoT hw & sw |
68.1 | |
55.1 | CAGR |
49.7 | 70% |
38.6
26.2
13.4
2021 | 2022 | 2023 | 2024 | 2021 | 2022 | 2023 | 2024 |
#7
recap of FY23 journey business wise
hardware
software
channels
IEC certified Edge AI HW family
AWS Greengrass + ESF = Everyware GreenEdge Zero-Touch Provisioning (ZTP)
AWS
OT system integrators
#8
focus points FY24
business imperatives
accelerate edge AI (shorter time-to-market) in security, asset monitoring, end-of-line inspection, and automatic optical inspection applications
round 2 of channel play: moving on to the next big
partner, replicating AWS success
keep momentum in ADAS: hot topic in Europe thanks EU regulations imposing assisted driving systems (L2/L3) on board of both cars and trucks
cost control: until visibility grows and uncertainty goes away, tight monitoring of costs is king
bumpy road ahead
Overstocking during component shortage followed by Destocking has accelerated the phase-out of legacy embedded business in US
Japan affected by destocking but not phasing out from legacy embedded business
We have taken the opportunity to cut OPEX linked to the legacy embedded business
We start FY24 with a lower visibility vs FY23 because customers are back to last-minute order releasing
Some IoT projects won are ramping up with a slower pace, especially in H1
Visibility changing on a weekly basis, we saw an acceleration in last 4 weeks
Too early to say how the year will progress, H2 is more
optimistic
#10
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Eurotech S.p.A. published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 March 2024 16:37:03 UTC.