Innovatec Spa · MIL:INC
Innovatec Spa — NEXT GEMS 2023
30 slides from Innovatec Spa's conference presentation, Oct 18, 2023
Slide 1: Innovatec Group Company Presentation - NEXT GEMS 2023
INNOVATEC GROUP TOWARDS A CLEANER FUTURE, TOGETHER COMPANY PRESENTATION NEXT GEMS 2023 INNOVATEC GROUP 18 OCTOBER 2023
Slide 2: Today's Speakers
Elio Catania Raffaele Vanni Chairman CFO and Investor Relator TODAY’S SPEAKERS
Slide 3: Company Presentation Agenda
INNOVATEC GROUP COMPANY PRESENTATION 01 INNOVATEC IN ACTION 02 OUR PLAN TOWARDS SUSTAINABILITY 03 MARKET OVERVIEW 04 FINANCIAL PLAN 2024 - 2026 05 WARRANT & DIVIDENDS
Slide 4: 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 Corporate, Communities & People to embrace sustainability and reduce environmental footprint Mission Diversification and integration of innovative end-to-end sol
Slide 5: 2 Business Units to Cover All Cleantech Value Chain
INNOVATEC: 2 BUSINESS UNITS TO COVER ALL CLEANTECH VALUE CHAIN Innovatec’s offering address Corporate, People, Communities and PA’s with a 360° degrees offering portfolio to cover circularity and energy needs to enable the path toward sustainability BU Environment & Circular economy Innovatec S.p.A
Slide 6: Innovatec's Key Figures: Impressive Growth
INNOVATEC’S KEY FIGURES IMPRESSIVE GROWTH…. CAGR ‘20-’22 22% 289,2 237,8 REVENUES 161,2 (€M) 42,7 41,9 31,0 46,1 20 16 FY 20 17 FY 20 18 FY 20 19 FY PF 20 20 FY PF 20 21 FY 20 2 FY CAGR ‘20-’22 22% 32,9 32,4 17,9 11,3 11,7 EBITDA 1,7 (€M) (17,1) CAGR ‘20-’22 7,5 6,1 7,8 10,7 18,7 34% EBIT (30,9) (11
Slide 7: With a Solid Asset Base
WITH A SOLID ASSET BASE 8 SORTING & TREATMENT PLANTS 7 BIOGAS AND PV PLANTS 3 LANDFILLS 3.300 EQUIPMENT & VEHICLES 600kt WASTE MANAGEMENT Lazzate 2.000 CLIENTS (95% RETETION RATE) Cermenate Chivasso Milano Romano 5 CONSORTIA (Batteries, WEEE, Tyre, Bedizzole Collegno Compositi, Textile) PV panel rec
Slide 8: 2023: A Transition Year
- 2023: A TRANSITION YEAR…... M&A SPEED UP + SLOWDOWN IN INDUSTRIAL PRODUCTION STOP & GO IN ECOBONUS 110% in order to gather some of the strategic assets leveraging on its capacity to produce positive cash flows and to The decrease on revenues, margins and cash generation was receive additional debt
Slide 9: 2026 Plan: Relaunch Opportunity
2026 PLAN: RELAUNCH OPPORTUNITY (‘23-‘26) CAGR 23,7% REVENUES EBITDA 13,9% 12,0% 478 500€M REVENUES Data in €M 11,3% 332 (‘23-‘26) CAGR 252 66 59,2% 66€M EBITDA 40 28 14% EBITDA MARGIN 2023F 2024P 2026P HARD CAPEX HR CAPEX +77€M M&A DECARBONIZATION PLAN TO REDUCE 3 GROUP’S EMISSIONS CAPEX 54 €77 M 6
Slide 10: Company Presentation Agenda
INNOVATEC GROUP COMPANY PRESENTATION 01 INNOVATEC IN ACTION 02 OUR PLAN TOWARDS SUSTAINABILITY 03 MARKET OVERVIEW 04 FINANCIAL PLAN 2024 - 2026 05 WARRANT & DIVIDENDS
Slide 11: ESG Rating Received in 2022
ESG RATING RECEIVED IN 2022 Morningstar Sustainalytics, a company specialized in developing research, ratings and analytical data on ESG parameters, analyzed Commercial Innovatec performance, Industry Services providing a high-quality Sub Industry Facilities score that is useful in Maintenance suppo
Slide 12: Our Strategy Towards Carbon Neutrality
OUR STRATEGY TOWARDS CARBON NEUTRALITY Implementing all the proposed actions, a -17% reduction in emissions is Projected emissions Carbon Management Plan (t CO2eq) observed by 2026 compared PROJECTED REDUCTIONS TOT. 2024 to the Business As Usual (ton CO2eq)* - 26 (BAU) scenario updated to -17% Light
Slide 13: Our Carbon Management Plan
OUR CARBON MANAGEMENT PLAN ACTIONS 2024 2025 2026 Innovatec S.p.A. POLICIES Coordination with sustainability committee POLICIES Updating emission sources and periodic reporting POLICIES Scope 3 Evaluation REDUCTION ACTIONS Light vehicle electrification COMPENSATION ACTIONS Renewable energy purchase
Slide 14: Company Presentation Agenda
INNOVATEC GROUP COMPANY PRESENTATION 01 WHERE WE ARE TODAY 02 OUR PLAN TOWARDS SUSTAINABILITY 03 MARKET OVERVIEW 04 FINANCIAL PLAN 2024 - 2026 05 WARRANT & DIVIDENDS
Slide 15: Ambitious EU Targets Will Boost Demand for Circularity
AMBITIUS EU TARGETS WILL BOOST DEMAND FOR CIRCULARITY In the coming years, all industries will face several challenges related to the recycling of components and waste to reduce their environmental impact. Innovatec has several opportunities to expand its market presence. RECYCLING SHARES % 35% 65%
Slide 16: Acceleration Toward Clean & Renewable Energy in Italy
ACCELERATION TOWARD CLEAN & RENEWABLE ENERGY IN ITALY RENEWABLE ENERGY MARKET, CUMULATIVE INSTALLED CAPACITY (GW) +7,4% 80,3 +3,7% 8,9 56,6 45,4 18,9 37,9 CAGR CAGR 8,7 ‘17-’22 ‘22-’30 8,6 14,1 8,4 11,8 Others +0,4% +1,8% 9,8 52,4 33,7 Wind +3,8% +5,4% 19,7 25,0 Solar +4,9% +9,7% 2017 2022 2026 2030
Slide 17: Future Growth Drivers in Innovatec Reference Main Industries
FUTURE GROWTH DRIVERS IN INNOVATEC REFERENCE MAIN INDUSTRIES Next years challenges will accelerate our Client’s journey toward sustainability: Automotive will switch to EV increasing recycling, Fashion will be revolutionized by green fashion and growth of recycling, 10 millions of buildings will be
Slide 18: Innovatec's Clients Industry Trends: Other Industries
INNOVATEC’S CLIENTS INDUSTRY TRENDS: OTHER INDUSTRIES Other Industries expected to experiment future massive growth in sustainability transition FOOD & BEVERAGE ELECTRONICS & BATTERIES MATTRESSES & DRYWALL FOOD&BEVERAGE MARKET (€Bn) CONSUMER ELECTRONICS MARKET (€Bn) EU IT MATTRESSES MARKET 29M 5M 5%
Slide 19: Markets Highlights: Significant Growth Opportunities
MARKETS HIGHLIGHTS: SIGNIFICANT GROWTH OPPORTUNITIES CORPORATE PEOPLE, COMMUNITIES & PA WASTE CONSTRUCTIONS & BUILDINGS <0,9% 76 Mtons* SPECIAL WASTE VOLUMES (2020) Innovatec’s share in waste volume ITALIAN BUILDINGS BELOW ENERGY AUTOMOTIVE ~78% EFFICIENCY TARGET (9,7 millions of buildings) EXPECTED
Slide 20: Company Presentation Agenda
INNOVATEC GROUP COMPANY RESENTATION 01 INNOVATEC IN ACTION 02 OUR PLAN TOWARDS SUSTAINABILITY 03 MARKET OVERVIEW 04 FINANCIAL PLAN 2024 - 2026 05 WARRANT & DIVIDENDS
Slide 21: Haiki+: The Ability to Envision a New Future
HAIKI+: THE ABILITY TO ENVISION A NEW FUTURE } The BU serves the so-called “special waste producers” and provides environmental services at every step of the cycle, WASTE SERVICE CLIENTS ACTIVITIES CONSORTIA COLLECTION / SORTING & TRANSPORT TREATMENT DISPOSAL RECYCLE / RECOVERY … Manufacturing circu
Slide 22: The New 360° Energy Clean Tech Platform
THE NEW 360° ENERGY CLEAN TECH PLATFORM Sustainability & System RES Asset Development Green Energy Portfolio Decarbonization Integrator of Energy Pillar & Management Management Strategy Transition solutions • Carbon inventory analysis • Management of the entire • Feasibility Analysis • Energy portfo
Slide 23: Offering Portfolio for Photovoltaic Plant Development
OFFERING PORTFOLIO FOR PHOTOVOLTAIC PLANT DEVELOPMENT To affirm our role as 360° ENERGY CLEAN TECH PLATFORM we designed a clear Offering Portfolio for ground mounted, utility scale Photovoltaic plant development. Thanks to these different types of offering we will seize several market opportunities
Slide 24: 2026 Plan: Growth & Financial Ambitions
2026 PLAN: GROWTH & FINANCIAL AMBITONS Cumulative CAPEX and Recruitments (2023-2026) DECARBONIZATION PLAN TO REDUCE HARD CAPEX M&A GROUP’S EMISSIONS ~63% ~62% Assets renovation Operating Cash vs ‘22 Flow for CapEx 3 (‘23-‘26) CAGR Revenues 478 23,7% (€M) CAPEX + M&A 332 €77 M 289,2 252 54 Investing
Slide 25: Business Unit Breakdown
BUSINESS UNIT BREAKDOWN ENV. & CIRC. Business • Expansion of its service portfolio, complementing CAGR % the existing offer with a MEuro 2022A 2023F 2024BP 2025BP 2026BP '23-'26 new platform of Clean Tech solutions supported Environment & Circular Economy 176,0 224,0 278,0 by investments in Energy E
Slide 26: Increased Contribution from EE and Treatment Activities
INCREASED CONTRIBUTION FROM EE AND TREATMENT ACTIVITIES In the Plan period Environment & Circularity and Energy Efficiency & Renewables contributes to revenues growth at 2026P respectively for an increase of €94M and €132M. 22 478 ∆ Environment & Circularity 39 + €94 M 68 12 3 38 28 24 (8) 252 ∆ Ene
Slide 27: Net Financial Position
NET FINANCIAL POSITION According to estimates, a strong exponential growth 2,4 x of cash & cash equivalents 2,2 x is expected, projected to FINANCIAL PAYABLES - RECEIVABLES increase from just 1,4 x CASH & CASH EQUIVALENTS €10million to 24 million by 2026. This, combined with a PFN / EBITDA general c
Slide 28: Positive Cash Generation
POSITIVE CASH GENERATION CUMULATED CASH FLOW 2023 - 2026 +€19M STRONG NET CASH TO EQUITY 187 Net consolidated cash generated during the plan, while reducing €25M financial debt and after €77M Capex and M&A ~50% of the Net cash generated during the plan €10M (57) ~25% of the cumulative (€M) (19) (3)
Slide 29: Company Presentation Agenda
INNOVATEC GROUP COMPANY PRESENTATION 01 INNOVATEC IN ACTION 02 OUR PLAN TOWARDS SUSTAINABILITY 03 MARKET OVIERVIEW 04 FINANCIAL PLAN 2024 - 2026 05 WARRANT & DIVIDENDS
Slide 30: Dividend Policy & Free Warrants to Shareholders
DIVIDEND POLICY & FREE WARRANTS TO SHAREHOLDERS $ DIVIDEND POLICY END PLAN FREE WARRANTS TO BE ISSUED ROE: 26% (1) DURING 4Q2023 € 10M: €0.10 per share Ratio: 32 INC shares vs 1 Warrants 1 Warrants = 1 New Shares Est. Dividend yield: 5.52% (discounted) ROI: 25% Strike prices 4Q2024: €1,90 approx. 4Q