ELES Semiconductor Equipment (ELES) Investor Presentation summary

Strategic positioning and market trends

• Focused on semiconductor and module reliability, leveraging over 30 years of innovation in testing solutions for high-growth sectors like automotive, AI, aerospace, and defense.

• Positioned to benefit from secular growth in semiconductors, aerospace, and defense, with a strong portfolio supporting energy transition and space economy trends.

• Demand for semiconductor testers is driven by increased complexity, higher reliability requirements, and the proliferation of semiconductors in critical infrastructure.

• Long-term industry outlook is positive, with semiconductor revenues projected to exceed $1T by 2030 and significant growth in AI, automotive, and space applications.

• European and Italian government initiatives, including the EU Chips Act and major investments, are fostering regional growth and innovation.

Business model, offerings, and innovation

• Provides test systems, applications, and services for semiconductors, aerospace, and defense, emphasizing reliability and zero-defect production.

• RETE methodology enables a shift from pass-fail to learn-from-failure, supporting early detection of design issues and cost-effective testing.

• Unique solutions include liquid cooling for high-power devices, advanced stress testing, and integration with smart manufacturing (Industry 4.0).

• Strategic partnerships, such as with Fraunhofer ENAS and proteanTecs, enhance AI-based analytics and closed-loop chip development.

• Expanding global presence through new market entries (e.g., India), repeated orders from major clients, and M&A to accelerate growth and service scalability.

Financial performance and growth drivers

• 1H2024 revenues grew 4.8% YoY to €15.3m, with EBITDA up 8.3% to €2.22m and net income rising 13% to €0.26m.

• Aerospace & Defense segment drove top-line growth (+18%), offsetting flat semiconductor revenues amid automotive market contraction.

• EBITDA margin improved to 14.5% due to gross margin expansion, despite higher OPEX from workforce and organizational investments.

• Net financial debt halved to €1.86m, supported by €1.8m free cash flow and disciplined working capital management.

• Ongoing investments in R&D (€1.2m in 1H24) and CAPEX (€0.3m) underpin offer expansion in AI, high power, and new materials.