Innovatec Spa · MIL:INC
Innovatec Spa — Call for Growth – Envent Winter Conference 2023
33 slides from Innovatec Spa's conference presentation, Feb 15, 2023
Slide 1: Towards a Cleaner Future, Together
TOWARDS A CLEANER FUTURE, TOGETHER COMPANY PRESENTATION “CALL FOR GROWTH – ENVENT WINTER CONFERENCE 2023” INNOVATEC GROUP 15 February 2023
Slide 2: Company Presentation – Overview
COMPANY PRESENTATION INNOVATEC GROUP “CALL FOR GROWTH – ENVENT WINTER CONFERENCE 2023” ü OVERVIEW § INDUSTRY OVERVIEW AND MARKET OPPORTUNITIES § INNOVATEC IN ACTION § FY2021 AND 9M22 RESULTS § INVESTMENT OPPORTUNITY
Slide 3: Today's Speakers
Raffaele Vanni Elio Catania Matteo Marini Roberto Maggio Head of Investor Chairman CEO Director Relations TODAY’S SPEAKERS 3
Slide 4: Cleantech Industry
CLEANTECH INDUSTRY Any process, product or service that aims at reducing negative environmental impacts through: Environmental protection activities – recovery, recycling and disposal of materials Sustainable use of resources: water, air and the environment as a whole Significant improvements in ter
Slide 5: Innovatec a Lead Player in the Clean Tech Industry
INNOVATEC A LEAD PLAYER IN THE CLEAN TECH INDUSTRY Vision - Shaping the future towards an alternative, sustainable development model to help communities become carbon neutral by providing innovative, responsible, practical and timely solutions to environmental problems. Mission - Diversification and
Slide 6: Innovatec Group – Who We Are
INNOVATEC GROUP WHO WE ARE IN A RIGHT INDUSTRY IN A RIGHT TIME €238M PRO FORMA REVENUES IN 2021 €33M PRO FORMA EBITDA IN 2021 14% EBITDA MARGIN 2021 ENVIRONMENT & CIRCULAR ECONOMY ENERGY EFFICIENCY & RENEWABLES eliospower • TRADITIONAL ENVIRONMENTAL SERVICES • B2B / PA • CIRCULAR ECONOMY SERVICES •
Slide 7: Innovatec Group – Who We Are
INNOVATEC GROUP WHO WE ARE ENVIRONMENT & CIRCULAR ECONOMY ENERGY EFFICIENCY & RENEWABLES €170M PRO FORMA REVENUES IN 2021 €67M REVENUES IN 2021 13.3% EBITDA MARGIN 2021 16.6% EBITDA MARGIN 2021 ITALIAN LEADING INTEGRATING OPERATOR Energy Recovery ENERGY and EPR driven Collection Energy Energy Effici
Slide 8: Roadmap to 2024 Leadership
ROADMAP TO 2024 LEADERSHIP INTEGRATION OF THE OFFER MAIN DRIVERS ENVIRONMENT & CIRCULAR ECONOMY INTEGRATION EE & RENEWABLES § HouseVerde exploit mkt conditions and § Enhance treatment facilities EXPAND STRENGTHEN adjust on new regulatory changes BUILDING OUR ASSET § Expand our customer base RENOVATI
Slide 9: BP 22-24: Investments for Growth
BP 22-24: INVESTMENTS FOR GROWTH KEY DRIVERS 2024 TARGETS vs 2021 REVENUES (€M) EBITDA & EBIT (€M) 55 +70% 405 11% 14% 14% Capex M&A +48% 38.3 33 238 9,5% M&A 18 4,6% 5% 12 161 7.5 10.7 59M€ Hard Capex 2020PF 2021PF 2024 2020 PF 2021 PF 2024 47 EBITDA EBIT EBITDA Margin EBIT Margin REVENUES REAKDOWN
Slide 10: Industry Overview and Market Opportunities
COMPANY PRESENTATION INNOVATEC GROUP “CALL FOR GROWTH – ENVENT WINTER CONFERENCE 2023” § OVERVIEW ü INDUSTRY OVERVIEW AND MARKET OPPORTUNITIES § INNOVATEC IN ACTION § FY2021 AND 9M22 RESULTS § INVESTMENT OPPORTUNITY
Slide 11: Energy Transition Targets – Europe
INNOVATEC ENERGY TRANSITION TARGETS EUROPE LANDFILL WASTE DISPOSAL TARGET RES TARGET >50% of the EU Member below the EU average 20% 40% 10% 22% 20 20 2035 TARGETED EMISSIONS REDUCTION* 202 1 2030 2020 Actual: 16% (2010: 23%) actual 2020 actual 2030 Target Target 2050 PV ACTUAL AND TARGET RECYCLED WA
Slide 12: Italy Market Opportunities
ITALY MARKET PV CAPACITY (GW) OPPORTUNITIES 71 +6 GW p/y €30bn market in the next 8 years ENERGY EFFICIENCY & RES +2.6 GW + 25 22.4 2 02 1 2022E PNIEC EU 2030 TARGETS BUILDINGS 40% 32.5% 75% OF ITALIAN BUILDINGS ARE ENERGY INEFFICIENT E, F, G OF THE TOTAL ENERGY CONSUMED RES% on improvement to ta l
Slide 13: Italy Market Opportunities – WEEE and Batteries
ITALY MARKET OPPORTUNITIES WEEE, BATTERIES, MATTRESSES, TEXTILES, DRIWALL still below TARGET WEEE CIRCULAR ECONOMY: WEEE & BATTERIES Kt collected and recycling rate (+5% vs 2020) 65% • Market expected to grow significantly in the coming years 34,6% ITALY AN EXCELLENCE IN RECYCLING IN THE EU MARKET 3
Slide 14: Italy Market Opportunities – Mattresses, Textiles, Drywall
ITALY MARKET MATTRESSES % RECYCLED 7 EU RELEVANT COUNTRIES 32.5M RECYCLING MATTRESSES CAN BE OPPORTUNITIES 20% 29.1M (EU28: 14%) RECYCLED UP TO 90% 35% EfW % 35% NEED TO SCALE UP TO 70/75% RECYCLING CIRCULAR ECONOMY: p/annum 45% LANDFILL % (based upon existing and upcoming EPR target for mattresses)
Slide 15: We Are in an Attractive Business
EU INVESTMENTS European at least €1 trillion of sustainable Green Deal investments over the next 10 years ITALIAN GOVERNMENT INVESTMENTS IT Recovery €60 billion for the Italian Green Plan revolution and ecological transition EXAMPLE ACCESSIBLE MARKETS FOR INNOVATEC: WE ARE IN AN ATTRACTIVE BUILDINGS
Slide 16: Innovatec in Action
COMPANY PRESENTATION INNOVATEC GROUP “CALL FOR GROWTH – ENVENT WINTER CONFERENCE 2023” § OVERVIEW § INDUSTRY OVERVIEW AND MARKET OPPORTUNITIES ü INNOVATEC IN ACTION § FY2021 AND 9M22 RESULTS § INVESTMENT OPPORTUNITY
Slide 17: Innovatec Group Solid Asset Base
8 SORTING & TREATMENT PLANTS 18 7 BIOGAS AND PV PLANTS 3 LANDFILLS INNOVATEC GROUP SOLID ASSET BASE 600kt WASTE MANAGEMENT Milan 2000 CLIENTS Trieste 95% LOYALTY RATE Lazzate Cermenate 338 Romano S. Pietro di Morubio Chivasso Milan Bedizzole D’Ezzelino HUMAN RESOURCES Lodi 200 Turin Palazzolo Albone
Slide 18: Environment & Circular Economy Business Model
ENVIRONMENT & CIRCULAR ECONOMY BUSINESS MODEL A vertically integrated structure, with a presence at every step of the cycle, which ensures cost efficiency and flexibility, underpinned by complementary customer service WASTE SERVICE CLIENTS ACTIVITIES CIRCULAR ECONOMY SERVICES COLLECTION / SORTING &
Slide 19: EE & Renewables Business Model
EE & RENEWABLES BUSINESS MODEL The BU offers to companies (B2B and PA). individuals (B2C) and Energy Communities Integrating energy efficiency services and renewables with an EPC approach } (29,5% stake) listed in EGM Italy stock market offers EPC and system integrations on renewables. } (30% stake)
Slide 20: ESG Target Achieved in 2021
SUSTAINABILITY COMMITTEE SET UP IN 2021 + 9 GWH OF ENERGY (100% RENEWABLE) PRODUCED BY PV AND BIOGAS PLANTS FED INTO THE NATIONAL GRID - 15% REDUCTION OF TOTAL EMISSIONS vs 2020 (-28% vs 2019) ESG TARGET ACHIEVED 48% IN 2021 OF THE FLOWS COMING OUT OF THE PLANTS RE-INTRODUCED INTO THE PRODUCTION CYC
Slide 21: New Governance and Organization
NEW GOVERNANCE AND ORGANIZATION DECENTRALIZATION COMPETENCES • Shortening decision-making chain • Accelerated development paths for critical roles • New Responsibilities transferred to the Business Units • Key competences mapping (digital, leadership, etc ..) (i.e Business Development, Operational E
Slide 22: FY2021 and 9M22 Results
COMPANY PRESENTATION INNOVATEC GROUP “CALL FOR GROWTH – ENVENT WINTER CONFERENCE 2023” § OVERVIEW § INDUSTRY OVERVIEW AND MARKET OPPORTUNITIES § INNOVATEC IN ACTION ü FY2021 AND 9M22 RESULTS § INVESTMENT OPPORTUNITY
Slide 23: 2022 Company Achievements Confirm the BP Drivers
2022 COMPANY ACHIEVEMENTS CONFIRM THE BP DRIVERS IN LINE WITH ENVIRONMENT & CIRCULAR ECONOMY BUSINESS PLAN EE & RENEWABLES DRIVERS • NEW VERTICALS IN RECYCLING • INTEGRATION OF ENERGY EFFICIENCY AND RENEWABLES OFFER • IMPLEMENTATION OF CONSORTIUM MGMT TO OTHER CLASSES OF WASTE • BUILDING RENOVATION
Slide 24: 2021 Strong Performance in All Key Indicators
2021 STRONG PERFORMANCE IN ALL KEY INDICATORS Execution of the growth strategy in line with the BP22-24 REVENUES (€M) EBITDA (€M) trends Prompt reaction to new scenarios 250 40 Timely M&A deals 238 33 Asset based consolidation 200 161 +47% 30 +83% 150 20 18 Business verticalization continues 100 Sig
Slide 25: 1H22 Growth Paths Continue
1H22 GROWTH PATHS CONTINUE Execution in line with the BP22-24 trends Prompt reaction to new scenarios (Photovoltaic) REVENUES (€M) EBITDA (€M) Timely M&A deals both in the circular economy and EE& RES business +55% 163 + 47% Asset based consolidation 22.4 Business verticalization continues 105 15 14
Slide 26: 9M22 in Line with BP Drivers (1/2)
9M22 IN LINE WITH BP DRIVERS (1/2) REVENUES (€M) Revenues €M 222.3 237.8 ü Organic growth in Environmental & Circular business thanks to volumes 222.3 and prices. ü Energy Efficiency revenues generation was slowed down due to regulation uncertainties PF21 FY* 9M22 EBITDA €M 27.2, EBITDA margin 12,2%
Slide 27: 9M22 in Line with BP Drivers (2/2)
9M22 IN LINE WITH BP DRIVERS (2/2) NET FINANCIAL POSITION Business verticalization continued in the 3rd QTR 22 Cash; +34M€ Debt 7.4M M&A: €8.5M YTD: €15.9M INV 3.0M Cash; 25M -10M€ -44M€ CAPEX: €3.7M YTD: €12.4M CAPEX M&A and HR Debt; 38 INV 3M CAPEX Debt; Capex 54.4M 2021 SEPTEMBER 22 Successful in
Slide 28: Investment Opportunity
COMPANY PRESENTATION INNOVATEC GROUP “CALL FOR GROWTH – ENVENT WINTER CONFERENCE 2023” § OVERVIEW § INDUSTRY OVERVIEW AND MARKET OPPORTUNITIES § INNOVATEC IN ACTION § FY2021 AND 9M22 RESULTS ü INVESTMENT OPPORTUNITY
Slide 29: Innovatec Stock
STOCK DATA – INNOVATEC SPA SHAREHOLDERS DATA Listing Market Euronext Growth Milan no. of Ordinary Shares 95.4 (M) ISIN IT0005412298 BIT INC Free Float 55% INNOVATEC STOCK Price per Share 1.61 Major Shareholder (as of 13 Feb 2023) - € 45% (Colucci Family) Mobile average 50 days 1.68 Mkt Cap (€M) (@ €
Slide 30: Analyst Coverage
ANALYST COVERAGE INTESA SANPAOLO • Youness N. El Alaoui 3.4 euro BUY • Alberto Francese (last update as of 3 August 2022) MIDCAP – TP ICAP • Filippo Migliorisi 3.0 euro BUY (last update as of 3 August 2022) VALUE TRACK • Valentina Romitelli 2.50 euro in 12m – 3.60 euro in 2y • Marco Greco (last upda
Slide 31: Innovatec Well Positioned in the Cleantech Business
INNOVATEC WELL POSITIONED IN THE CLEANTECH BUSINESS $ ITALIAN LEADING OPERATOR PROVIDING 360-DEGREE SERVICES IN CIRCULARITY AND SUSTAINABILITY VERTICALLY INTEGRATED STRUCTURE COVERING ALL THE PHASES OF THE VALUE CHAIN INNOVATEC GROUP INNOVATION AND ADVANCED TECHNOLOGIES INVESTMENT HIGHLIGHTS ESG NAT
Slide 32: Disclaimer
DISCLAIMER THIS PRESENTATION IS NOT, NOR SHALL BE CONSTRUED AS, AN OFFER, INVITATION OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY TO BE USED AT AN INVESTOR PRESENTATION AND IS PROVIDED FOR INFORMATION PURPOSES ONLY. THIS DOCUMENT DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS
Slide 33: Innovatec Group – Embrace Innovation
INNOVATEC GROUP EMBRACE INNOVATION Via Giovanni Bensi, 12/5 Head of Investor Relations: Raffaele Vanni 20152 Milano ITALY Tel. +39 3351261702 Tel +39 02 41 30 51 Email: raffaele.vanni@innovatec.it fax +39 02 41 27 27 33 PEC: innovatecpower@legalmail.it
Innovatec — Call for Growth – Envent Winter Conference 2023 on 6ix