Industrie De Nora Spa · MIL:DNR
Industrie De Nora Spa — De Nora — Q1 2023 Earnings Presentation
29 slides from Industrie De Nora Spa's earnings presentation, May 11, 2023
Slide 1: Execution and Profitability drive our Sustainable business: Q1 2023 Financial Results
Execution and Profitability drive our Sustainable business Q1 2023 Financial Results 11 May 2023 © 2023 De Nora
Slide 2: Agenda
Agenda Speakers: Paolo Dellachà - CEO Matteo Lodrini - CFO Q1 2023 BUSINESS Q1 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 3: Q1 2023 Achievements
Q1 2023 ACHIEVEMENTS Execution drove the quarter results, supported by solid profitability Solid start to 2023 with Q1 Published our Corporate Results in line with Guidance, Sustainability Report, accelerating +8.4% Revenue 1 7 the journey to improve our impact Confirmed growth in the 2 6 Manufactur
Slide 4: Q1 Main Results: Well on track with our Business Plan
Q 1 2 0 2 3 M A I N R E S U LT S Well on track with our Business Plan GROWTH IN LINE WITH SOUNDING CONFIRMED ENERGY GUIDANCE PROFITABILITY TRANSITION’S GROWTH €216.9m €46.7m €26.6m Revenue Ebitda Adjusted (€55.2m in Q1 2022) Revenue, ~5.9x Q1’22 +8.4% vs Q1 2022 21.5% Ebitda Adj margin 20% Ebitda Ma
Slide 5: Agenda: Business Highlights
Agenda Execution and Profitability drive Our Sustainable Business Q1 2023 BUSINESS Q1 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 6: Q1 2023 Business Overview: Electrode and Water Technologies
Q1 2023 BUSINESS OVERVIEW E l e c t r o d e a n d W a t e r Te c h n o l o g i e s b u s i n e s s e s Electrode Water Technologies Technologies 55%1 33%1 • Revenue growth driven by Chlor-Alkali projects in • Growth in Electrochlorination, Filtration & Disinfection main geographies products line par
Slide 7: Q1 2023 Business Overview: Energy Transition
Q1 2023 BUSINESS OVERVIEW E n e rg y Tra n s i t i o n … i m p re s s i ve g row t h co n t i n u e s Energy Transition BACKLOG (31 March) 2.1GW – € 181 m Main projects NEOM, Saudi Arabia , Largest H2 Project Globally >2 GW H2 to Green Ammonia Camacari Complex, 1° industrial-scale green H2 Site in B
Slide 8: Energy Transition Pipeline
ENERGY TRANSITION PIPELINE C o n f i r m e d o u r l a r g e a n d c o n c r e t e p i p e l i n e o f 4 2 G W, p r o v i d i n g visibility for future growth BACKLOG ~2.1 GW ~181 m€ HOT DEALS 1 ~3.0 GW • ELECTRODES ~287 m€ • CELL MANUFACTURING ACTIVELY PURSUED • ELECTRODE PACKAGE ~7.0 GW ~660 m€ PR
Slide 9: Expansion Production Capacity
E X PA N S I O N P R O D U C T I O N C A PA C I T Y Q1 2023 Ongoing developments in brown and green fields projects Okayama (Japan) US Germany Expansion of the existing Increase of existing plants’ Expansion of existing manufacturing manufacturing plant started. capacity with automation capacity to
Slide 10: Agenda: Results Review
Agenda Execution and Profitability drive Our Sustainable Business Q1 2023 BUSINESS Q1 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 11: Q1 2023 Revenue: Organic Growth in line with guidance
Q1 2023 REVENUE Organic Growth in line with guidance KEY HIGHLIGHTS ELECTRODE TECHNOLOGIES 8.4% YoY Growth Revenue By Geography • Growth was driven by volume increase mainly in Chlor-alkali (Membrane) +5.9x YoY • Softer performance in Electronics and Electrowinning due to project time effect • After
Slide 12: Q1 2023 Backlog
Q1 2023 BACKLOG Backlog driven by projects execution Backlog current year coverage 70% KEY HIGHLIGHTS Q1 2023 Backlog by Year of Deployment ELECTRODE TECHNOLOGIES • The backlog reflects strong project execution in the quarter 2025+ 13% • New orders expected in Q2, due 2025 to our rich current pipeli
Slide 13: Q1 Operating Costs
Q 1 2 0 2 3 O P E R AT I N G C O S T S Costs structure mainly in line with last 2022 quarters COGS (€m)* SG&A and Corporate R&D (€m)* KEY HIGHLIGHTS (€m)* As % COGS increase reflects changes in of 59.8% 64.8% 11.5% 12.1% 1.3% 1.6% product mix, mainly in Water and Sales Electrode Technologies Busines
Slide 14: Q1 2023 EBITDA Adjusted
Q1 2023 EBITDA ADJUSTED S o l i d P r o f i t a b i l i t y, l a r g e l y c o n f i r m i n g 2 0 2 3 G u i d a n c e Adj. EBITDA (€m) KEY HIGHLIGHTS EBITDA Adj. Margin % ELECTRODE TECHNOLOGIES Total 27.6% 21.5% Profitability change reflects Energy Transition n.a. 20.0% • extraordinary performance
Slide 15: From EBITDA to Net Result
F R O M E B I T D A TO N E T R E S U LT 39.7 KEY HIGHLIGHTS 35.7 -4.0 25.0 • EBIT trend mainly attributable Q1 to EBITDA performance 2023 Changes in Net Financial costs reflect • Higher financial costs in Q1 2023 EBITDA Dep. Amort. EBIT Net Financial Investm. EBT Taxes NET RESULT • Higher Financial
Slide 16: Net Working Capital Evolution
Q 1 2 0 2 3 R E S U LT S Net Working Capital Evolution NWC % Sales* 42.0% 32.9% 38.0% KEY HIGHLIGHTS NWC was €330m with a slight increase in the incidence on revenues vs. Dec 2022 Main Drivers: • Increase in Trade Receivables driven by some concentration of revenues accounted in March • Decrease in
Slide 17: Q1 2023 Net Cash Financial Position
Q1 2023 Net Cash Financial Position (€’m) reduction in advance payments cashed in late Dec. 2022 (22) o/w ~€11 m in Energy Transition BU 0 NET CASH EBITDA1 Δ NWC CAPEX INCOME TAXES NET FINANCE OTHERS NET CASH DEC’22 PAID COSTS PAID MAR’23 1 Ebitda Reported 17 © 2023 De Nora
Slide 18: Confirmed 2023 Guidance
CONFIRMED 2023 GUIDANCE Consolidation in Electrodes and Water Divisions, further ramp -up in E n ergy Tran s i tion €900- 950m CONSOLIDATED REVENUES 2023E 130-150 €175-185m EBITDA 2023E Ebitda Margin 18%-19% €130-150m ENERGY TRANSITION REVENUES 2023E EBITDA Margin Low Double Digit VOLUMES 1.3 GW 18
Slide 19: Agenda: Final Remarks
Agenda Execution and Profitability drive Our Sustainable Business Q1 2023 BUSINESS Q1 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 20: Final Remarks
FINAL REMARKS • Solid set of Results in line with the 2023 guidance, driven by • backlog execution and solid profitability • Growth in the Energy Transition division continues (5.9x revenues vs Q1 2022) with a sounding profitability (EBITDA margin 20%) • Electrode technologies business grows at a st
Slide 21: Agenda: Q&A
Agenda Execution and Profitability drive Our Sustainable Business Q1 2023 BUSINESS Q1 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 22: Q&A Session
Q&A Session © 2023 De Nora
Slide 23: Additional Materials
Additional Materials © 2023 De Nora
Slide 24: Income Statements
I N C O M E S TAT E M E N T S (€m) FY 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Revenue 852.8 200.1 210.4 206.2 236.2 216.9 YoY Growth (%) 38.5 % 79.8 % 47.8 % 35.2 % 12.6 % 8.4 % Change in inventory of finished goods and work in progress 34.8 6.8 7.7 23.4 (3.1) 16.8 Other income 6.5 1.6 0.9 0.7
Slide 25: Quarterly Revenue and Adj. EBITDA by Division
Q U A R T E R LY R E V E N U E A N D A D J . E B I T D A B Y D I V I S I O N €m Q1’22 Q2'22 Q3'22 Q4'22 Q1 ‘23 REVENUES 200.1 210.4 206.2 236.2 216.9 Electrode Technologies 109.4 118.5 123.5 122.0 118.9 Energy Transition 4.5 2.4 7.2 28.6 26.6 Water Technologies 86.2 89.5 75.4 85.6 71.4 EBITDA Adj. 5
Slide 26: Income Statement: Focus on EBITDA Adjustments
I N C O M E S TAT E M E N T Focus on EBITDA Adjustments (€m) Q1 2023 Q1 2022 Sales 216.9 200.1 EBITDA 46.5 54.0 Margin (%) 21.4% 27.0% Terminations costs (labor + legal expenses) 0.1 0.0 Costs relative to IPO process 0.0 1.1 Other non recurring costs 0.0 0.1 Adj. EBITDA 46.7 55.2 Margin (%) 21.5% 27
Slide 27: Balance Sheet
BALANCE SHEET (€m) Q1 2023 FY 2022 Intangible assets 128.4 131.6 Property, plant and equipment 196.3 184.2 Equity-accounted investees 122.7 122.7 Fixed asset 447.3 438.4 Inventories 293.8 295.5 Contract work in progress, net of advances from customers 18.0 16.4 Trade receivables 145.5 123.4 Trade pa
Slide 28: Cash Flow Statement
C A S H F L O W S TAT E M E N T (€m) FY 2022 Q1 2023 EBITDA 165.2 46.5 Losses on the sale of property, plant and equipment and intangible assets 0.3 0.2 Other non-monetary items 10.7 0.0 Cash flows generated by operating activities before changes in net working capital 176.2 46.7 Change in inventory
Slide 29: Disclaimer
DISCLAIMER The content of this presentation has a merely informative and provisional nature and does not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recomm