COSTAMP GROUP INVESTOR PRESENTATION - AIM-Italia · COSTAMP GROUP INVESTOR PRESENTATION 65% 17% 5% 4% 3% 3% 3% Production Design Quality Logistics Administration Purchase Sales Personnel

COSTAMP GROUP INVESTOR PRESENTATION

1968 │ 2018



HPDC DIES

(64% 2017 revenues)

AlloyAluminum

Magnesium

Market Automotive (95% of 2017 revenues) / lighting / heating / industrial appliances

Main

applicationStructural parts

Powertrain components

Machines

Used by customers

LPDC & GRAVITY DIES

(28% 2017 revenues)

PLASTIC DIES

(8% 2017 revenues)

Plastic

Business Units

Aluminum

Cast iron

Powertrain

Structural parts

Bumpers

Door Panels

2

Costamp Group is a leading company in the engineering,

production and trade of dies for HPDC / LPDC and gravity casting

Business Unit

Injection machines from 160 tons

up to 3000 tons

HPDC machines from 500 tons up

to 4500 tonsPouring machines

COSTAMP GROUP INVESTOR PRESENTATION3

Foundation

Purchase of the first CNC machines

1968

1982

1994

1999

2003

2004

2011

2013

2014

2015

2016

2017

First automotive mold – Steering Housing

Transfer to the new buildings of Sirone (LC)

First press installation, for the sampling department

Acquisition of 49% of PAMA Srl

Certifications ISO/TS 16949

Opening and launch of the new plant in Rivalta

(TO), for plastic injection molds.

New expansion of the Sirone plant: roughing & drilling

Launch of the new dedicated warehouse for finished parts

Acquisition of PiQ2, which develops

simulation softwares.

Horizon 2020 Award and Reverse Takeover

with Modelleria Brambilla

2018 Takeover bid, Accelerated Bookbuilding and

Environmental certification 14001

Milestones


International Presence

4

Production and Sales Office:• Mumbai (India): Sales Office• Bhiwadi (India): Production and Sales Office

Sales Office:• Aichi–ken (Japan)

Sales Office:• Shanghai (China)

Sales Office:• Sao Paulo (Brazil)

After Sales Support:• Queretaro (Mexico)

After Sales Support:• Auburn Hills (USA)


65%

17%

5%

4%

3%

3%

3%

Production

Design

Quality

Logistics

Administration

Purchase

Sales

Personnel #

Sirone HQ 192

Turin facility 31

Pama 21

PiQ2 5

Correggio 70

San Giovanni in Persiceto 14

Total 333

Human resources


Costamp Group – Total Revenues over the years (in k €)

8.500

11.80012.50010.400

14.700

17.200

14.800

17.700

25.800

21.800

31.900

36.700

40.615

*58.700

10.000

20.000

30.000

40.000

50.000

60.000

0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

CAGR ’10-’17: +18,76%

*2016 and 2017 data are pro-forma consolidated

*58.964


Main competitors in EU die-casting mould manufacturers

Aluminum large dies Manufacturers Country2012

Turnover(€M)

2016Turnover

(€M)% ∆

EXCO Technologies Ltd.(2) CAN 116 126 9%

Costamp Group SpA(1) IT 23 59 157%

Meco Eckel GmbH(3) D 66 49 -26%

Schaufler D 21 48 129%

Aurrenak E 24 26 8%

Heck & Becker GmbH (4) D 22 25* 14%

Delaware Dynamics (4) USA 15 20* 33%

SAPP Spa IT 13 19 46%

Vetimec Soc. Coop. IT 14 19 36%

SCS Rodegari IT 7 10 43%

SCM Zanussi Srl IT 10 9 -10%

CO.ME.ST. Srl IT 3 6 100%

(1) Pro-forma consolidated 2016

(2) Casting and Extrusion Division only

(3) LPDC sold in 2016

(4) 2015


Main Customers

58% of revenues is generated by the first 10 Clients, in line with market concentration

High level of Client loyalty


High Pressure Die Casting (HPDC): Our Core Business

Products

8


High Pressure Die Casting (HPDC): Applications Powertrain

10

Cylinder Head CoverFlange Housing

Gearbox Housing

Clutch Housing

Engine Blocks

Steering Housing


High Pressure Die Casting (HPDC): Applications_Structural Parts

11

Shock Towers

Front Crossbeam

Crossmember

Instrument Panels

Window Frames


High Pressure Die Casting (HPDC): Trucks

12

Cover Cooling Duct

TransmissionHousing

Ladderframe

Flywheel Housing

Oil Pan


Value Chain

13

TURN-KEY SERVICE

A) PROJECT

MANAGEMENTB) DESIGN

D) TRY-OUTS/SMALL

PRODUCTIONSC) HPDC/LPDC DIES

1. Equipment

manufacturing;

2. Consultancy service

from A to Z.

1. Part co-design;

2. Die design;

3. Simulation work (PIQ2).

1. Complete dies;

2. Complete sets of casting

inserts;

3. Maintenance &

Refurbishment.

1. Samplings: Costamp

Group is equipped with

an internal foundry

department in the Sirone

plant;

2. Dimensional and

metallurgical controls;

3. Complete set-up

process;

4. Process development;

5. Production of small

batches & special series;

6. Post-sales

service/support.


Low Pressure Die Casting (LPDC) / Gravity: products and applications

14

Products

Applications

Cylinder Head

Cover

Engine Blocks

( Various

configurations )

Gearbox

HousingExhaust

Manifold


Lamborghini Huracan – Rear Grille

Case History

15


BMW _ C-Evolution electric scooter

Case History

16


Research & Development

« PUZZLE DIE » CONFIGURATIONA ground-breaking new tooling layout which enablesextraordinary extension of die lifetime thanks to efficientthermal-mechanical stress dissipation. It also allows a drasticreduction of production cycle time and die maintenance,thus resulting in remarkable overall cost-optimization.

CAVITY INSERT FAST CHANGE CONFIGURATION

Innovative tooling design including mechanical features

which will allow the replacement of damaged /exhausted cavities from the die holder, without removing

the die from the HPDC machine. This means hugedowntime reduction and fast resuming of series

production.

LOW PRESSURE FORGING TECHNOLOGY

A unique combination of the best features of LPDC and HPDC.

Costamp is currently executing in-house production tests thanksto an expressly installed vertical press. Once it has beenoptimized and consolidated, this technology will be especiallysuitable for the manufacturing of Aluminum car / truck wheels,

thus opening new possibilities in a potentially huge market.

«It is not the strongest of the species that survives. Nor the most intelligent that survives. It is the one which is the most adaptable to change»


Costamp has been awarded the Horizon 2020 from the European

Commission for the « Puzzle Die » project.

Objective

Thanks to the cooperation with FEM/CFD simulation software suppliers,

Costamp has been able to develop a new design and construction

technique allowing the manufacturing of special HPDC dies, the so called

«Puzzle Die», whose lifespan is at least the double than standard-designed

ones.

The need to get FEM results in a much shorter time, pushed Costamp idea to

start with the development of a brand new simulation software based on an

“easy-to-use” configuration, aiming at having a disruptive impact on the

HPDC market.

HORIZON 2020 – Puzzle Die


PUZZLE DIE: Official Endorsement By Premium OEM

For The Horizon 2020 Funding Program

BMW AG Daimler AG Jaguar Land Rover

19


Regulations in Europe force OEMs

to significantly reduce CO2 emissions

In 2025 penalties of € 12,350 per car if

the car sold overcomes the average of

75 gr CO2 emissions per km

20

Source: McKinsey

ALUMINUM: best balance between

weight reduction vs steel (-40%) and

additional cost involved (+30%)

Source: McKinsey + ITF


ALUMINUM is the material of choice to boost fuel economy and cut

total carbon emissions. Most innovative vehicles rely on ALUMINUM

21


Growth Strategy

22

Development of cross-selling on low pressure, coming from Modelleria Brambilla,exploiting Costamp network and the strong demand for high performance aluminumcomponents in the electric market.

New organization of the group workflow through “make or buy” concept, in order todevelop a higher turnover, focusing only on the most critical processes and outsourcingprocesses with lower added value.

Creation of a new premium line on HPDC, thanks to the proprietary Puzzle Dietechnology.

Development of partnerships with OEM and Tier 1 on specific innovative projects: low-pression forging, forged safety parts, aluminum wheel rims in mass production,aluminum chassis, structural parts in magnesium, each as a unique partner of an

international leading Tier 1.

International expansion through a “glocal” approach with a direct and well establishedpresence in the countries where OEM and Tier 1 operate: Germany, USA, Mexico(today's market), China and India (tomorrow's market).


Income Statement & Balance Sheet

23

Euro (/mln)

1H 2018Consolidated Pro

Forma


Forma

Value of Production 31.5 26.3

EBITDA 2.8 1.9

EBITDA % 9.3% 7.2%

EBIT 1.6 0.7

EBIT % 5.3% 2.8%

Net Profit 0.8 0.1

Net Profit % 2.6% 0.4%

Euro (/mln)


Forma

31/12/2017Consolidated Pro

Forma

Net Working

Capital (NWC) 7.7 9.4

Fixed net assets 51.0 50.5

Other funds and

provisions (4.4) (6.3)

Net Capital

Employed 54.3 53.6

Equity 28.2 26.7

Net Financial

Position (Cash) 26.1 26.9

Sources 54.3 53.6

Order Backlog (as of March 31st 2018): € 55 mln

Order Backlog (as of March 31st 2017): € 32 mln

VS. +71.9%


COSTAMP GROUPVia Verdi, 6 - 23844 Sirone (LC)

T +39 031 875195

CONTACTS

24

IR TOP CONSULTING

Equity Research & Investor RelationsMaria Antonietta Pireddu

Via C. Cantù, 1 - 20123 Milano

T +39 02 45473883/4

[email protected]

INVEST ITALY SIM

Corporate BrokerVia San Clemente, 1 – 20122 Milano (MI)

T +39 02 84924277

[email protected]

BANCA INTERMOBILIARE DI INVESTIMENTI E GESTIONINomAd

Via Meravigli, 4 - 20123 Milano (MI)

T +39 02 99968111

[email protected]

INVEST BANCA

SpecialistVia Luigi Cherubini, 99 – 50053 Empoli (FI)

T +39 05 715331301

[email protected]

COSTAMP GROUP INVESTOR PRESENTATION - AIM-Italia · COSTAMP GROUP INVESTOR PRESENTATION 65% 17% 5% 4% 3% 3% 3% Production Design Quality Logistics Administration Purchase Sales Personnel

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