Interpump Group S.p.a. · MIL:IP
Interpump — Q2 2024 Earnings Presentation
33 slides from Interpump's earnings presentation, Aug 7, 2024
Slide 1: Interpump Group 2Q2024 Financial Results
INTERPUMP GROUP 2Q2024 Financial Results - 7th June 2024
Slide 2: Index
INDEX ▪• KEY HIGHLIGHTS ▪• 2Q2024 4Q-2023FINANCIAL RESULTS PRELIMINARY FINANCIAL RESULTS ▪• ESG PATH GROUP SUSTAINABILITY PATH ▪• OUTLOOK ▪• ANNEX 1
Slide 3: Key Highlights
2Q2024 ▪ KEY HIGHLIGHTS 2
Slide 4: Delivering Margin Protection & Cash Improvement
2Q2024 DELIVERING MARGIN PROTECTION & CASH IMPROVEMENT ▪ Delivering margin protection and cash improvement 2024 SALES & EBITDA EVOLUTION (1-2) % change compared to previous reporting period ‒ Delivering margin protection 1Q2024 2Q2024 • A 9.5% sales decrease resulted in a 12.7% EBITDA 0% -2% decreas
Slide 5: 2Q2024 Financial Results
2Q2024 DELIVERING MARGIN PROTECTION & CASH IMPROVEMENT ▪ KEY HIGHLIGHTS ▪ 2Q2024 FINANCIAL RESULTS 4
Slide 6: Group – Improved Margin Protection
2Q2024 GROUP – IMPROVED MARGIN PROTECTION ▪ 2Q2024 – Sales: Water Jetting and acquisitions mitigate lasting Hydraulic normalisation – Profitability: improved margin protection with 90bps of diluition in 2Q compared to 130bps in 1Q – NFP: reduction despite CAPEX and acquisitions Million € 2QUARTER 1H
Slide 7: Divisions – Margin Protection Driven by Hydraulics
2Q2024 DIVISIONS – MARGIN PROTECTION DRIVEN BY HYDRAULICS ▪ Hydraulics – Sales: important market applications still in a normalisation phase – EBITDA: increased protection with 100bps of diluition in 2Q compared to 170bps in 1Q ▪ Water-Jetting – Sales: organic growth enhanced by acquisitions – EBITD
Slide 8: Sales – Normalisation and Growth
2Q2024 SALES – NORMALISATION AND GROWTH ▪ 2Q2024: Hydraulics still impacted by normalisation, 2Q2024 GROUP SALES EVOLUTION Water Jetting stronger than comparison – Hydraulics: worse “orbital motors“, sluggish other -7.4% businesses – Water Jetting: “high pressure systems” best € 592m -9.5% +2.1% 0.2
Slide 9: Sales – Normalisation and Growth (1H2024)
2Q2024 SALES – NORMALISATION AND GROWTH 1H2024 GROUP SALES EVOLUTION -7.5% € 1.185m -9.3% +1.9% -0.1% € 1.096m 1H2024 HYDRAULICS SALES EVOLUTION 1H2024 WATER JETTING SALES EVOLUTION -12.8% +8.1% € 885m -12.9% +0.1% 0% € 771m +7.4% -0.3% € 324m € 300m +1.1% 8
Slide 10: EBITDA – Business Model Flexibility
2Q2024 EBITDA – BUSINESS MODEL FLEXIBILITY 1H2024 EBITDA EVOLUTION (1-2) (% on Net Sales) 24.9% 24.2% 23.1% 23.0% SALES DOWN BY 9.4% AT CONSTANT PERIMETERS • Labour force adjustment Group average employees' number: down almost by 2% • G&A expenses • Purchase cost Group temporary workers: down by mor
Slide 11: NFP – In 2Q Cash Generation from TWC
2Q2024 NFP – IN 2Q CASH GENERATION FROM TWC ▪ January: US$300m Private Shelf agreement NFP EVOLUTION (1-2) (€ m) ‒ US$100 single tranche issued • 8 years average duration and 4.17% coupon € 34m € 0m € 3m € 0m € 517m € 486m € 80m € 81m ▪ June: NFP of € 517m compared to € 486m as of December 2023(2) –
Slide 12: NFP – CAPEX – Last Important Project
2Q2024 NFP – CAPEX – LAST IMPORTANT PROJECT ▪ New Interpump Hydraulics headquarter – 62,000 sq. metres, a total area increase of around 30% – Best environmental standards • Photovoltaic plants with an estimated 2,300,000 kWh annual production and consequently 1.219 Tco2 savings • 10x better thermal
Slide 13: NFP – Acquisitions – Perfect Fit with Group Strategy
2Q2024 NFP – ACQUISITIONS – PERFECT FIT WITH GROUP STRATEGY ▪ 4 acquisitions and put-call options exercise ▪ Acquisitions with a perfect fit with Group growth and diversification strategy in 1H2024 – Strengthening Group’s global network • PP China & YRP, “Flow Processing” in China: entry into the pl
Slide 14: Alfa Valvole Acquisition Opportunities
2Q2024 NFP – ACQUISITIONS – PERFECT FIT WITH GROUP STRATEGY ILLUSTRATIVE EXAMPLE - DELAYED COKER PLANT (1) ▪ Alfa Valvole – Completing Group product catalogue – Increasing exposure to Oil&Gas market applications ▪ Opportunities in both short and medium-long term – Short term • Dosing pump inside Gro
Slide 15: ESG Path
2Q2024 ▪ KEY HIGHLIGHTS ▪ 2Q2024 FINANCIAL RESULTS ▪ ESG PATH 14
Slide 16: Concreteness
2Q2024 CONCRETENESS “A falling tree makes more noise than a growing forest” Lao Tzu 15
Slide 17: 2024 Actions – In Progress According to Timetable
2Q2024 2024 ACTIONS – IN PROGRESS ACCORDING TO TIMETABLE ▪ All activities are in progress according to the 2023-2025 ESG JOURNEY related timetable 2024 ACTIONS E.7 Product ECO-Design ▪ Focussing on 2024 specific actions S.1 (1) Injury rate improvement – E.7: all preparatory activities completed, now
Slide 18: Outlook
2024 ▪ KEY HIGHLIGHTS ▪ 2Q2024 FINANCIAL RESULTS ▪ ESG PATH ▪ OUTLOOK 17
Slide 19: Different Divisions, Different Environments
2024 DIFFERENT DIVISIONS, DIFFERENT ENVIRONMENTS ▪ Most recent trends underline (1) – Hydraulics: ongoing sales normalisation/stagnation – Water Jetting: sales and moreover backlog acceleration ▪ 2024 financial expectations updating – Sales: high single digit organic decrease • Impact of all 2024 pe
Slide 20: Margin Protection & FCF Exploitation Track Record
2024 MARGIN PROTECTION & FCF EXPLOITATION TRACK RECORD 2009, 2020 and 1H2024 SALES, EBITDA & FCF EVOLUTION (1-2) % change compared to previous reporting period 200% 185.3% 150% 100% 82.1% 63.2% 50% 2009 2020 1H2024 0% -12.6%-13.6% -9.3% -13.2% -50% -29.7% -48.4% Sales EBITDA FCF 2 GROUP 2019-2021 CO
Slide 21: Annex
ANNEX ▪• KEY DISCLAIMER HIGHLIGHTS • 4Q-2023 DETAILS ▪ 2Q2024 FINANCIAL RESULTS • 2023 ESG ACTIONS ▪ OUTLOOK ▪ ANNEX 20
Slide 22: Disclaimer
ANNEX ▪ DISCLAIMER 21
Slide 23: Disclaimer − Performance Indicators and Definitions
ANNEX DISCLAIMER − PERFORMANCE INDICATORS AND DEFINITIONS The Group uses several alternative measures that are not identified as accounting parameters in the framework of the IFRS standards in order to allow the trend of economic operations and the Group's financial position to be better evaluated.
Slide 24: Disclaimer − Performance Indicators and Definitions
ANNEX DISCLAIMER − PERFORMANCE INDICATORS AND DEFINITIONS The Group uses some additional terms too, below the related definitions: ▪ Organic variation: variation at constant perimeter and FX ▪ Trade Working Capital: NWC with “Trade Payable” net of CAPEX Trade Payable ▪ Buy-back: purchase of treasury
Slide 25: Disclaimer – Forward Looking Statements
ANNEX DISCLAIMER – FORWARD LOOKING STATEMENTS This document has been prepared by Interpump Group S.p.A for not constitute an offer to sell or a solicitation to buy or subscribe to use during meetings with investors and financial analysts and is Company shares. Neither this document nor a portion the
Slide 26: 2Q2024 Sales Details
ANNEX 2Q2024 and 2023 DETAILS ▪ DISCLAIMER ▪ 2Q2024 SALES DETAILS 25
Slide 27: Sales Details – Organic Evolution
ANNEX SALES DETAILS – ORGANIC EVOLUTION GROUP 2020-2024 ORGANIC GROWTH EVOLUTION by QUARTER 50% 39.4% 40% 2020: -12.6% - 2021: +20.1% - 2022: +13.7% 2023: +6.9% - 2024YTD: -9.3% 30% 17.9% 18.7% 20% 15.7% 14.2% 10% 11.6% 14% 9.1% 12.6% 12.5% 4% 0% -3.4% -10% -1.7% -11.2% -9.2% -9.5% -16.2% -20% -30%
Slide 28: Acquisition Details
ANNEX ACQUISITION DETAILS 2024 INTERPUMP GROUP ACQUISITIONS 2023 DATA IMPLIED Consolidated since ACQUIRED COMPANIES Additional Total EV/EBITDA Where Sales EBITDA Margin Information consideration PP CHINA April 2024 9 April YRP FLOW TECNOLOGY € 10m 10% - € 2.9m 2.9x Water Jetting division China ALLTU
Slide 29: 2024 Sales Details
ANNEX 2023 DETAILS ▪ DISCLAIMER ▪ 2Q2024 SALES DETAILS ▪ 2024 SALES DETAILS 28
Slide 30: Sales Details – Sales Breakdown – Group
ANNEX SALES DETAILS – SALES BREAKDOWN (1) – GROUP GROUP 2023 sales: € 2,240m PACIFIC AREA: 11% OTHERS: 1% EARTH MOVING MACHINE: 8% GENERIC DEALERS: 16% CONSTRUCTION: 8% REST of THE WORLD: 9% CLEANING : 5% AGRICOLTURE : 10% GENERIC CONTRACTORS: 3% EUROPE: 52% OTHER INDUSTRIAL SECTOR: 8% LIFT: 7% STEE
Slide 31: Sales Details – Sales Breakdown – Hydraulic
ANNEX SALES DETAILS – SALES BREAKDOWN (1) – HYDRAULIC HYDRAULICS 2023 sales: € 1,634m OTHERS: 1% PACIFIC AREA: 10% EARTH MOVING MACHINE: 11% GENERIC DEALERS: 18% REST of THE WORLD: 9% CONSTRUCTION: 8% OTHER INDUSTRIAL SECTOR: 9% AGRICOLTURE : 14% F&B: 1% ENERGY&UTILITIES: 1% MINING: 1% SHIPYARD-MARI
Slide 32: Sales Details – Sales Breakdown – Water Jetting
ANNEX SALES DETAILS – SALES BREAKDOWN (1) – WATER JETTING WATER JETTING 2023 sales: € 606m PACIFIC AREA: 13% OTHERS: 1% CONSTRUCTION: 8% GENERIC DEALERS: 11% ADAPTORS INDUSTRIAL VEHICLES: 4% AUTOMOTIVE: 4% REST of THE WORLD: 11% SHIPYARD-MARINE: 3% CLEANING: 17% OIL&GAS: 4% RAILWAY: 1% ENERGY&UTILIT
Slide 33: Manager's declaration – Mauro Barani
The Manager in charge of preparing the company’s financial reports declares - pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance - that the accounting information contained in this presentation corresponds to the document results, books and accounting records. S.Ilario d’E