FINLOGIC COMPANY PROFILE - Virtual AIM Conference, Milano 25 May 2020 - Finlogic GROUP
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
FINLOGIC COMPANY PROFILE Virtual AIM Conference, Milano 25 May 2020
INDEX
I. Executive Summary
II. Business Overview
III. Reference Market
IV. Financials
FINLOGIC GROUP
Leader of the Information Technology Sector
PROFILE
❑ Realizes complete and innovative solutions for the € 33 mln € 4.7 mln
coding and automatic identification of products
through the use of bar codes and RFID (Radio
Revenue 2019: +16% Ebitda 2019: +13%
Frequency Identification) technology 16 year
Track Record in the IT sector
❑ Provides integrated and customized labeling systems
for product recognition and traceability 10 subsidiary companies
❑ Covers the entire value chain (hardware, software,
consumables and technical assistance)
3 production establishments
Puglia: 5,750 mq, 40 production lines
❑ Customer portfolio includes leading companies Lombardia: 3,500 mq, 6 production lines
operating in a wide range of sectors (i.e. packaging, Emilia Romagna: 3,200 mq, 13 production lines
logistics, food, large scale distribution, chemical,
pharmaceutical, industrial sectors, etc.). 220 employees
+ vast network of sales agents
❑ Elite company, a project of the Italian Stock Exchange
listed on the AIM of the Italian Stock Exchange since
09.06.2017 (€ 6.3 mln raised) 95% Revenue in Italy with a presence in France,
Germany, Switzerland and Spain 3
Key-Factors
TIMELINE MILESTONES
1993 Vincenzo Battista, now a majority shareholder of Finlogic SpA, started producing and selling labels in
the province of Bari, through the company Italcode Srl.
Finlogic incorporated becoming Finlogic S.p.A. and immediately became a leader in the automatic
2003 identification and labelling systems sector. The same year, the website www.id-label.com was launched,
a marketing tool owned by Finlogic, unique in its sector.
2012 In April 2012 Finlogic joined the “Elite” project of the Italian Stock Exchange.
The process of growth by external lines began with the acquisition of Idlog Srl, a system integrator
2014 specialising in printing and barcode scanner systems, in November 2014. The purpose of that
acquisition was to integrate and expand the range of services in the product traceability segment.
2015 The operating headquarters moved from Rovellasca (Como) to Bollate (Milan).
M&A growth process continued with the acquisition of Primetec Srl, a company specializing in the
sale and service of digital color printing technologies; the same year marked the start up of Fd
2016
Code Srl a company owned by 51% (system integrator that provides solutions for labeling and
barcode reading).
4
Key-Factors
TIMELINE MILESTONES
On June 9th , 2017 Finlogic S.p.A. listed on the AIM of the Italian Stock Exchange, raising 6.3 million
euros following the placement of 1,750,000 newly issued ordinary shares with no nominal value. The
2017 unit price of the shares resulting from the placement was set at 3.60 euros. The free float is equal to
23.65%.
On July 13th Hydra SpA, (a holding company and parent company of Datalogic S.p.A.), acquires,
2017 increasing the shareholding of 2.87% under the IPO, additional n. 500,000 shares, reaching a total
stake of 10.28% of the capital of Finlogic.
Continuation of growth by external lines with the acquisition of other 4 companies: January
2018 acquisition of Tecmark e Multitec, July acquisition of Irideitalia and in August acquisition of
Mobile Project.
2019 Conclusion of the ownership agreement of 51% in Smart Lab Industria 3D, a company operating
in the 3D printing and the acquisition of SystemCode a system integrator specialized in the
technical labels.
The external growth continues by the acquisition of Staf Srl and Socialware Srl. Staf is a company
2020 that produce labels by of special materials and it’s specialized on the production of labels for
particularly complex applications. Socialware is a consultancy company in the digital and web
marketing and e-commerce sector 5
GROUP STRUCTURE - ACTUAL BF CAPITAL * HYDRA S.P.A. ITALCODE SRL OTHERS
FINLOGIC GROUP
Operational Structure
Bergamo Production System
Torino Milano
(Tecmark e Multitec) (FdCode - Idlog - Mobile Project) (System Code) Indirect Sales Agents
Board of director
Chairman and Bollate (Milano) Direct Sales
Costantino Natale
Managing Director • Area: 3,500 mq
IDlog Sales
Rosanna Battista Managing Director • Factory Workers: 10
Indipendent Member of • Production line workers: 6
Giuseppe Zottoli Board
Cristiano Battista Managing Director Staf Rottofreno (PC)
Filippo M. Volta Member of Board • Area: 3,200 mq
• Factory Workers: 49
• Production line workers: 5
Firenze
Sales network Finlogic SpA
(IrideItalia)
Internal sales network Bari
10
(Italy and abroad) (Smart Lab Ind.3D e Socialware)
Direct agent channel
13
(End Users)* Rome
Indirect agent channel Acquaviva delle Fonti (Bari)
7 • Sales office and technical
(Reseller Market)*
assistance • Area: 5,750 mq
Agents channel (Office
6 • Factory Workers : 64
Supplies sector) • Employee: 5 sales, 1
Total 36 administration, 2 • Production line workers :
technician 35
* Breakdown by region
7
FINLOGIC GROUP
Production Plants
Lombardia - Bollate (Mi) Puglia – Acquaviva delle Fonti (Ba)
Emilia Romagna- Staf – Rottofreno (PC)
8
FINLOGIC GROUP
Group Companies
Idlog Srl 51% controlled company FD Code Srl 51% controlled company
Idlog Srl, is a small system integrator based in Senago (MI), specializing in printing FD Code Srl, based in Busto Arsizio (VA) is a company specialized in label solutions,
and automatic identification systems (bar code scanners), provides complete tablet, optical barcode readers, ribbon and printers. With a strong technical
solutions for printing and bar code scanning and specialized technical support. knowhow. Fd Code is able to provide a full range of technical solutions within the
The company uses RFID (Radio Frequency Identification) technology. The customer professional printing sector and the automatic identification. Highly specialized
portfolio includes companies operating in various sectors (packaging, logistics, food, both in technological knowhow and wide product portfolio range In various sectors
large scale distribution, chemical, pharmaceutical and industrial sectors). (i.e. SME on food, cosmetics and jewelry sector).
Tecmark Srl 100% controlled company
Purchased in 2018, based in Settimo Torinese, Tecmark Srl has a 30 year experience Mobile Project Srl 51% controlled company
specializing in the analysis and implementation of integrated solutions, coding, Purchased in August 2018, based in Monza, a service company operating in the
reading and traceability systems using RFID technology (Radio Frequency field of automatic identification through the development of specific software
Identification). solutions for portable devices and business in general. Their custom made
They have gained a great deal of experience in the integration of all marking / software solutions work with existing management systems and central
reading equipment on the of production lines with pre-existing information databases
9
systems.
FINLOGIC GROUP
Group Companies
Irideitalia Srl 51% controlled company
Multitec Srl 100% controlled company
Purchased in July 2018, the company has headquarters in Figline Valdarno (Fi). It
Purchased in 2018, based in Settimo Torinese, is the Italian distributor of
specializes for over 30 years, in the organization of the office and the automatic
Toshiba-Tec products. It specializes in thermal transfer printing systems,
identification of the warehouse through barcode and radiofrequency systems
for the industrial sector, and in laser printing for the office sector.
proposing personalized and competitive solutions.
System Code 1oo% controlled company by Tecmark
Smart lab industrie 3D 51% controlled company The company based in Osio Sotto (BG), designs and implements solutions for
Purchased in February 2019, it is a company active in the additive labeling and atomatic-identification; in particular, it deals with data acquisition
manufacturing market. A highly innovative start-up with headquarters in and verification, RFID, industrial label printing, tracking and warehouse
Bari established in March 2015, offers the sale and rental of 3D printers, management applications for companies. System Code uses cutting-edge
printing service activities, CAD modeling, patent prototyping, production solutions not only from a technical point of view but also its environmental
and marketing of products through the use of 3D printers and equivalent. impact. It is aimed at companies active in various production sectors including
cosmetics, food, electronics and chemistry.
10FINLOGIC GROUP
Group Companies
STAF Srl società 100% controlled company Socialware società 51% controlled company
STAF S.r.l. is a company based in Rottofreno (PC), active - since 1994 - Socialware Italy srl, founded in 2009 by Francesco Antonacci, is a
in the sector of self-adhesive labels. With approximately 50 consultancy company in digital and web marketing and e-commerce
employees thanks to the 25 year industry experience, STAF today is sector. Certified as a Google Partner, Socialware specializes in the
an important reference point for the use of special materials and the management of advertising campaigns on the web, SEO, Web
production of labels for particularly complex applications. In Analytics, Email marketing, Social media marketing and any other
addition, STAF is an important 3M material transformer. Attention to activities related to such. Socialware's approach is strongly oriented
customers is one of the Company’s strengths. In fact, STAF provides towards achieving customers' objectives, in terms of popularity of
its customers with valuable support, through targeted consultancy brands on the web, increase in turnover or acquisition of qualified
and the rapid production of very complex orders (for materials used leads.
or for their transformation). STAF is ISO 9001 certified and complies
with all regulations regarding workplace safety.
……to be continued 11INDEX
I. Executive Summary
II. Business Overview
III. Reference Market
IV. FinancialsBUSINESS OVERVIEW
Our products
The GROUP, through direct production and
distribution, covers the entire chain of the
product segment for automatic identification and
labeling systems:
❑ Diversified and integrable labeling solutions
❑ Wide range of products for reading and
printing
❑ Additive manufacturing solutions
❑ High level of reliability and safety
❑ After sales technical assistance
❑ Software for portable devices - Pick / Put to
light - RTLS - Warehouse management
❑ Digital and web marketing specialists
Complete Label System® offers a wide range of
solutions 13Business sectors
Transportation Retail Floriculture
Food Jewelry
Chemical &
Pharmaceutical
Mobile
Automotive Medical
Production line
14BUSINESS OVERVIEW
Printing and reader solutions
THERMAL TRANSFER PRINTERS DIGITAL COLOR PRINTERS
Finlogic is a distributer for all main brands such as As a distributer of major brands such as Primera
SATO, Toshiba, Citizen, Zebra, Honeywell and Technology, Vipcolor, Swiftcolor and Epson, Finlogic
Datamax. We provide qualified assistance and offers the best price and unrivalled pre and post sale
spare parts for all major brands assistance
BARCODE READERS
Distributer of major brands such as Datalogic, RIBBON OF ALL TYPES: WAX, RESIN, WAX-
Intermec, Honeywell e Microscan, RESIN, NEAR EDGE, BLACK OR COLOURED
15BUSINESS OVERVIEW
Products- 3D Printing and Software Solutions
3D Printing Solution SOFTWARE SOLUTIONS
Technologies Production services With the acquisition of Mobile Project, a Finlogic division takes care of developing
• Sale of 3D printers • Time to market reduction specific HARDWARE and SOFTWARE solutions both for portable devices and for the
• Dedicated solutions to various uses • Production customization entire corporate world. In particular:
•Consulting and advisery • Wide choice of materials • Store Management: Shelf Reordering, Inventory, Shelf Price Control, Product Handling,
•Network affiliation Smab3D • Reduction of production costs Competition Price Detection.
• Pick-to-Light and Put-to-Light: picking / storage processes where it is necessary to reconcile
high speed and low error rate
• Real-time locating systems (RTLS): automatic identification and tracking in real time of
objects or people within delimited areas
• Warehouse Management (also Voice Picking): goods entry and exit control (also voice)
• Sales Force Automation;
• PMT System; On field / on site data collection;
• Display Project; Push to Talk, and much more
16INDEX
I. Executive Summary
II. Business Overview
III. Reference Market
IV. FinancialsREFERENCE MARKET
The market in which Finlogic operates is in continuous expansion due to the increasingly strict European regulations concerning
traceability of products. Finlogic boasts over 3,000 customers in and out of Italy (primarily in large scale distribution).
ITALIAN MARKET
Finlogic makes most of its turnover in Italy and has an overall market share of 2%.
In Italy, the self-adhesive market grew by 1.9%, reaching € 752 million in 2018 compared to € 742 million in 2017, with a CAGR
2008-2018 of + 4%. ( GIPEA – Osservatorio Economico. – 2019)
Market margins show a better positive trend compared to 2017 (CAGR EBITDA '08 -'18 of 6%, CAGR EBIT '08 -'18 of 6.2%), as well
as the average results that make the sector particularly attractive and profitable (average 2018 Ebitda Margin of 12%)
European market
Within the European market, Italy is in fourth place with a market share
of around 12.7% of the overall 5.9 billion euro production in 2018.
Overall demand or labels in Europe has grown from 1996 to 2018,
showing that the market has doubled in the last fifteen years reaching over
6 billion m2 printed. 18
(GIPEA – Osservatorio Economico. – 2019)REFERENCE MARKET
MARKET PROSPECTS 1. Future Market Insights: growth of4.3% from 2017
to 2026.
Market prospects are good and significant 2. Smithers Pira*: growth of 5.4% from 2016 to 2021
growth is expected in the coming years 3. FINAT** :growth of European Industry 5% 2019-
2020
Sectors of Finlogic
• Labels, a constant growth of 4.3% is expected,
primarily in food sector
• Automatic identification and data acquisition:
expected growth by 11% CAGR between 2017 and
2022, reaching a total of 71.7 Billion
• Tag RFID, according to Grand View Research, is
expected to increase by 14.7% Future Market
Insights , the forecast growth is 14.5% between 2018
and 2029
19
*worldwide authority on the Packaging, Print and Paper supply chains ** European association for the self-adhesive label industryReference Market
The market confirms good economic results, despite a slowdown in growth
Market Data
Fonte: GIPEA – Osservatorio 2018
Finlogic: REVENUE 2019 : +17.3%
EBITDA : +20%
CAGR ’19-’09 higher than the market NET PROFIT: +20.19%
20INDEX
I. Executive summary
II. Business overview
III. Reference Market
IV. FinancialsHighlights – Income Statement
(€/1000) 2019 2018 Var Var %
Revenue 32,992 28,430 4,562 16%
Production value 34,589 29,545 5,044 17%
Operative cost 29,853 25,338 4,514 18%
EBITDA 4,735 4,208 527 13%
EBIT 3,240 3,049 191 6%
Net income 2,177 2,090 86 4%
Group Net income 1,969 2,012 -43 -2%
Iride Mobile
Description Finlogic Tecmark Idlog FD Code Multitec Smart Lab 3D System Code Aggregated Elision Total
Italia Project
Revenue 24,919 4,409 2,926 1,787 755 434 584 306 636 36,757 (2,1699 34,589
Operative cost 21,579 3,807 2,497 1,656 678 422 491 267 604 32,001 (2,148) 29,853
EBITDA 3,340 603 429 131 77 12 93 38 32 4,756 4,735
22Highlights – Income statement with STAF Srl
Aggregated Pro-forma*
( €/1000) 2019 2019 whit Staf 2019 whit Staf ADJ
Revenue 32,992 42,828 42,828
Production value 34,589 44,478 44,478
Operative cost 29,853 39,273 38,815
EBITDA 4,735 5,204 5,662
EBIT 3,240 3,438 3,775
Net income 2,177 2,254 2,503
(€/1000) Staf 19 Staf ADJ19*
ADJ by Staf on 2019*
Revenue 9,836 9,836
1. Cda - 240 k
Production value 9,889 9,889
Operative cost 9,420 8,962 2. Ias effect Leasing -112 k
EBITDA 469 927 3. Adjusted cost of employee - 93 k
EBIT 198 535
23
Net income 77 327 *Estimated valuesRevenue
Break-Down Revenues 2019
Revenues break-down 2019 2018 Var 19-18 Var % 2%
Label 19,275 16,100 3,175 20%
Bar code products 13,189 11,777 1,412 12% 40%
Technical assistance 527 553 (26) -5%
58%
Totale Ricavi 32,992 28,430 4,562 16%
Label Bar code products Technical assistance
• Revenues of the "Labels" division, the group's core business with a 58% share of total revenues, grew by 20% to € 19,276
thousand.
• The "Technological Products" division follows the growth of labels with an increase of 12% compared to last year and
overall revenue of € 13,189 thousand. The "Service and assistance" division undergoes a non significant decrease of 5%,
• 58% of 2019 revenues were generated by the "Labels Division" (neutral and printed with digital technology), destined for
a variety of sectors and uses, while 40% of turnover was generated by the sale of technological tools (printers and
terminal readers) and Ribbon ; "services and assistance" division represents the least voluminous sector of revenues (2%),
shows a slight decrease compared to 2018 (-5%).
• The satisfactory growth of the Labels division is the result of investments made in industrial plants and machinery, which
have increased production capacity and improved production techniques.
• The value of production is equal to € 34.59 million, + 17% compared to € 29.55 million in 2018 and includes the important
investments made internally in application software and process development. These investments have direct
correlation in improving the primary margin and in creating value for customers.
24PERFORMANCE SUMMARY
Year 2019: Growth Continues
REVENUES € mln BREAKDOWN FOR REVENUES GEOGRAPHIC
34
33 +16% vs 2018
32 2% 5%
31 33
30
29
28 40%
27 28,43
26 58%
25
24
23 95%
22
21
21,4 Italy Abroad
20 Labels Bar Code product Technical assistance
19
FY 2017 FY 2018 FY 2019
EBITDA € mln EBIT € mln NET PROFIT€ mln
+13% vs FY18 +6% vs FY18 2
-2% vs FY18
4,75 3,25
2,95
2,65
3,75
2,35
2,05
2,75
1,75
4,73 3,24 1 2 1,96
4,21 1,45 3
1,75 1,67
3,24 1,15 2,46
0,85
0,75 0,55
0,25
-0,25 FY 2017 FY 2018 FY 2019 -0,05 0 25
FY 2017 FY 2018 FY 2019
FY 2017 FY 2018 FY 2019Highlights – Balance Sheet
( €/1000) 31/12/2019 31/12/2018 Var Var %
Fixed Assets 7,069 4,328 2,741 63%
Net working capital 8,513 8,154 359 4%
Provision (1,510) (1,304) (207) 16%
NET INVESTED CAPITAL 14,073 11,179 2,894 26%
Equity 15,640 13,920 1,721 12%
NFP/(Cash) (1,568) (2,741) 1,173 -43%
TOTALE SOURCE 14,073 11,179 2,894 26%
• During 2019, approximately € 3.5 million was invested. In addition to the most significant investment of the plant for € 1 million, the
Group continued to invest in machinery, equipment and R&D for an additional € 2.5 million
• Shareholders' equity, equal to € 15.6 million, shows an increase of € 1.7 million compared to 2018 (€ 13.9 million) and mainly reflects
the effect of subscription no. 124,440 of newly issued FINLOGIC shares, for a total value of € 0.543 million, following the exercise of
the Warrants in July 2019 and the partial allocation of the profit to reserves in 2018.
• The change in the NFP is related to higher cash flows in output for investments in fixed assets of € 2.9 million in non-operating cash
flows arising from the exercise of warrants, €+0.54 million, and the distribution of dividends for € 1 million.
NFP 31/12/2019 31/12/2018 Variance
Bank financing 4,807 4,002 805
Other financing 445 79 366
Cash and cash equivalents (6,819) (6,822) (3)
NFP (1,568) (2,741) 1,173 26EMERGENCY COVID-19
Actions put in place for the safeguard and business continuity
Finlogic's activity falls within the At the moment, Finlogic has no
services qualifiable as essential by the problems in supply of raw materials
D.P.C.M. of 22/03/2020, the 3 and products as most of our
production plants continue to be fully suppliers are operational.
operational.
The DVR has been updated, the
operating procedure on safety has The Group is fully operational. The
been issued and the most stringent warehouse, commercial and technical
hygiene and health standards, support are operational, in smart
personal protective equipment have working mode with remote technical
been issued assistance
27EMERGENCY COVID-19
An opportunity for the Finlogic Group
Groups efficiency has responded well to the emergency situation, thanks to the tenacity and determination
of the management, the commercial and marketing department and the production department who have
continued to work tirelessly to support all customers who have continued their activity at full capacity,
during the peak of the pandemic
The role of digital innovation and the high experienced and innovative thinking of management was
fundamental, which allowed us to quickly create ad hoc solutions:
• 3D production of face protection visors as certified PPE
• Production of labels used in the healthcare sector, such as identification bracelets for patients, labels for
test tubes and blood bags, labels for the sterilization of surgical instruments etc.
• Design and manufacturing of a wearable device, called "Smart Distance" which vibrates and signals if the
safety distance is not respected. This device can be used for many other uses, anti-collision between
forklifts, man-down signaling, badge for attendance or for access to unauthorized places.
The Auto-ID sector has been necessary for the indispensable supply chains. The Finlogic Group continued its
activity above all in the service of the food sector, GDO, health and logistics, underlining its role as
undisputed leader on the national territory
«Labeling, tracking and tracing are at the basis of digital transformation, but also and above all of a greater
and necessary efficiency of logistics and delivery, which today is clearly growing»
28GROWTH PLAN
GROWTH BY GROWTH BY
INTERNAL LINES EXTERNAL LINES
PRODUCTION
CAPACITY
INCREASE
29INVESTMENT CASE
Why invest in Finlogic
Scalable market with high growth potential
1 High fragmentation (over 500 operators)
Distinctive marketing tools
2 Software for price quotation, which represents an important competitive advantage and the sales tool to increase the
customer base.
Significantly diversified customer base
3 Orders typically of limited unit values, Widespread customer base, where an individual client does not weigh more than 3% of
overall revenues.
Customer loyalty through «Tailor-Made» solutions
4 Tailor-made solutions in response to customer requests that translate into customer loyalty.
Sales force and growing orders
5 Continuous increase in demand, as result of the efficient sales network, with positive effects on revenue growth and
consequent increase in production capacity.
Track record in M&A
6 Increase in production capabilities and product diversification.
Growing Income and Cash Flow generation
7 CAGR 09-’19: VdP +17.41%; EBITDA + 19.95%
The two main strategic directives have been maintained: the growth of fundamentals and the creation of value for shareholders 30FINLOGIC SU AIM
Market Data
Market AIM Italia
Date IPO 09-giu-17
Price IPO Euro 3.60 SHAREHOLDERS
Cap IPO Euro 24.3 mln
ISIN Warrant FINLOGIC 2017-2020 IT0005256349
N. Warrants 3,158,400
ISIN IT0005256323
N. shares 7,084,160
Price share as of april 2020 Euro 6.2
Performance from IPO 72%
23%
Capitalization as of april 2020 Euro 44 mln
Equity Research 1 Integrae SIM S.p.A. 3%
Equity Research 2 KT&Partners
63%
11%
Market Value
BF Capital Hydra S.p.A.
Italcode Srl Altri azionisti
31You can also read
