After the Siae crisis Microelettronica hopes for Invitalia's help, IPO in 5 years

In the last 3-4 years, the world of telecommunications has changed considerably, especially microelectronics, which has suffered from the microchip crisis, among other problems. The Covid pandemic accentuated the criticality and created a major problem in logistics and supply in general. In 2021, we recorded a loss that became significant in 2022. At the end of 2022, the restructuring phase began, also using solidarity contracts, in order to manage the market contraction. For example, we reduced

over time, with voluntary departures, the workforce from 1,400 to 1,011, of which 800 are currently in Italy.

Already in 2023, thanks also to the recovery, we were able to bring the group back to break-even. In the course of this year

we are working to generate cash. Siae Microelettronica is now involved in nationally funded projects

and European, we participated in a number of calls for tenders and at the end of 2023 we won a project for European funding

(Ipcei project) of 180 million euro over five years which, among other planned outputs, will allow us to develop

innovative products for the 5G and 6G industry, as well as entering the access market. Another key relaunch element was

entry in 2022 into the Oran Alliance consortium, which brings together a number of companies worldwide that believe

in the development of an open technology platform.

However, difficulties remain, Siae Microelettronica, competing with giants such as Ericsson or Huawei and

Born as a family business. What is changing besides the entry of external managers into the chain of command? .

The company has taken the opportunity of the crisis to realise that it needs to strengthen its shareholder base, thus bringing on board new shareholders and thus new capital as well as strengthening governance, although the current shareholders have proved and are proving to be fully

involved in the relaunch of the group. With this in mind, we have opened up a number of fronts. There is. for example, the possibility of the arrival of an industrial investor as a partner, useful and instrumental at the supply chain level to strengthen the industrial capacity and increase the profitability of the product, and we have started a couple of negotiations with possible financial investors. Last but not least, we started a crucial process that

is in an advanced stage with Invitalia for its entry as a minority shareholder in the shareholding structure, in the role of supporting companies in crisis, but strategically important at national level within the framework of the Save Companies plan under the aegis of Mimit. We are currently in the advanced due diligence phase, and Invitalia should in the coming weeks come to consider an investment that would have two purposes: to strengthen the group's financial position, creating as many synergies as possible with the benefits of the projects financed, and to continue the process of creating high-tech value. Times are tight and the strategic actions mentioned here would allow the company to be in a

much stronger situation, both in terms of balance sheet and market presence, in order to be able to consolidate worldwide presence and further grow. At the same time - and my case is an example, since I joined the group seven years ago with an apex commercial role and now hold the position of general manager - we are starting a process to strengthen the 'manageriality' in the management of the company to support the relaunch plan, through the development of internal resources and then the insertion of new resources.

In 2020 you announced plans for a stock market listing, you shelved it after the crisis, but now it could

Back in vogue?

Yes, we are also looking at the stock market listing as a possible medium/long-term goal, which means that, if the relaunch plan is successful, we could expect to complete it in about four to five years. The right timing could be 2028-29. That said, the stock market listing is not the only medium- to long-term goal we are considering. In the meantime, of course, we urgently need to complete the restructuring and relaunch of the company. Invitalia's entry into the shareholding structure, as well as that of an industrial and/or financial partner,

If they were confirmed, they would be an important accelerator. In the meantime, we want to strengthen governance and create management and financial tools and indicators in the perspective of the stock market or a possible merger, becoming more attractive, even though the Mascetti family, representing the current shareholders and directors, are continuing to support the company even in this period of crisis, representing an important and integral element of the relaunch project.

What would Invitalia's entry entail in practice?

We are talking about a qualified minority share, but definitely important. At the preliminary stage, Invitalia has put up a budget of 30 million, then the final investment figure will depend on the outcome of the due diligence and negotiations at the closing of the transaction. Invitalia's entry isauspected by the current shareholders and management as it would give strong relevance and support to maintain and further strengthen the innovative and strategic technological asset at national and European level of the Siae Microelettronica group.