Interpump Group S.p.a. · MIL:IP
Interpump — H1 2022 Earnings Presentation
36 slides from Interpump's earnings presentation, Aug 2, 2022
Slide 1: Interpump Group 1H2022 Financial Results
INTERPUMP GROUP 1H2022 FINANCIAL RESULTS 2 August 2022
Slide 2: Index
INDEX • KEY HIGHLIGHTS • 1H2022 FINANCIAL RESULTS • GROUP SUSTAINABILITY PATH • 2022 OUTLOOK • ANNEX 1
Slide 3: 1H2022 Key Highlights
Bt y 1H2022 KEY HIGHLIGHTS
Slide 4: Enhanced Base for 2022 Commitments
1H2022 ENHANCED BASE FOR 2022 COMMITMENTS • 1H2022 Results on the trajectory to Group commitments despite unexpected worsened external conditions ‒ Implementing the medium-long term growth path ‒ Consolidating and protecting profitability • Consistent growth on profitability excellence − Sales: sign
Slide 5: Consistent Growth Combined with Profitability Excellence
1H2022 CONSISTENT GROWTH COMBINED WITH PROFITABILITY EXCELLENCE 2QUARTER 2018-2022 SALES EVOLUTION 1HALF 2018-2022 SALES EVOLUTION 1200 1200 1000 1000 C.A.G.R.: +12.4% C.A.G.R. at constant perimeters: +6.6 C.A.G.R.: +12.9% 800 C.A.G.R. at constant perimeters: +7.3% 800 600 600 400 400 200 200 0 0 2Q
Slide 6: Consistent Growth Combined with Profitability Excellence
1H2022 CONSISTENT GROWTH COMBINED WITH PROFITABILITY EXCELLENCE • Growth consistency and profitability excellence are based on the long term Interpump strategy to improve performances and to reduce risks through both better diversification and higher flexibility • This never ending process allowed G
Slide 7: Different Dimension, Higher Diversification and Flexibility
1H2022 DIFFERENT DIMENSION, HIGHER DIVERSIFICATION AND FLEXIBILITY ▪ Interpump in 2021 compared to Interpump in 2007 − Breakdown by division: better fit to the different economic cycles − Breakdown by geography: better mix in Europe, with “Europe-excluding-Italy” from 29% to 36% on total − Breakdown
Slide 8: 1H2022 Financial Results
Bix) 1H2022 FINANCIALRESULTS.
Slide 9: Group – On the Verge of 2021 Excellence
1H2022 GROUP – ON THE VERGE OF 2021 EXCELLENCE • 2Q2022: close to 2021 excellence despite unforeseeable environment and “Group specific” adverse event − Double digit organic growth confirmed, +12.5% (1) − On-going deployment of adopted countermeasures made EBITDA margin equal to 24.7% (2) • 1H2022:
Slide 10: Divisions – On the Verge of 2021 Excellence
1H2022 DIVISIONS – ON THE VERGE OF 2021 EXCELLENCE • 2Q2022: strong results for both divisions, with performance consistent with different business features − Hydraulics: remarkable results especially in EBITDA term, with only 0.20bp diluition to 23.0% (1) − Water-Jetting: consistency with the anti-
Slide 11: Sales – Above € 1bn Threshold
1H2022 SALES – ABOVE € 1BN THRESHOLD • 2Q2022: Group sales up by 32.6% to € 476m − Almost equal contribution among organic growth and acquisitions effect +20.1% • 1H2022: with a 31.4% increase, significantly above € 1bn threshold − Mirroring Interpump medium long term growth strategy 2Q2022 GROUP SA
Slide 12: Sales – Consistent Industrial Evolution in Both Divisions
1H2022 SALES – CONSISTENT INDUSTRIAL EVOLUTION IN BOTH DIVISIONS 2Q2022 SALES EVOLUTION 1H2022 SALES EVOLUTION +41.7% +39.3% +20.1% +3.6% € 766m +21.2% HYDRAULICS +4.3% € 401m +21.8% +14.5% +15.6% € 550m € 283m +11.4% +12.6% WATER-JETTING +5.9% € 136m +7.9% 0% +4.7% € 260m 0% € 231m +5.5% € 122m 11
Slide 13: Sales – Mirroring Business Features and Covid Volatility
1H2022 SALES – MIRRORING BUSINESS FEATURES AND COVID VOLATILITY • 2Q2022: different division evolution consistent with GROUP 2020-2022 ORGANIC GROWTH EVOLUTION by QUARTER different business features 50% 39.4% − in 2Q2022 Water Jetting division more influenced 40% by raw material and components short
Slide 14: EBITDA – Protection Actions Effectiveness
1H2022 EBITDA – PROTECTION ACTIONS EFFECTIVENESS • 2Q2022: effective EBITDA protection allowed to keep up with 2021 Group profitability record, notwithstanding ‒ a completely different and worse environment ‒ impacts of “Group specific” adverse event o a fire in a Romanian factory of the Hydraulics
Slide 15: EBITDA – Protection Actions Effectiveness (Hydraulics)
1H2022 EBITDA – PROTECTION ACTIONS EFFECTIVENESS • Divisional EBITDA: ‒ Hydraulics: keeping up and integrating White Drive too o I.M.M. Romania represented a bit more than 1% of 2021 divisional sales, production gap closed by other European factories and all damages covered by insurance contracts (1
Slide 16: NFP – Reflecting Industrial Medium Long Term Approach
1H2022 NFP – REFLECTING INDUSTRIAL MEDIUM LONG TERM APPROACH • NFP was € 629m(1) compared to € 495m of NFP EVOLUTION (€ m) December 2021 87 (2) (2) − Resources dedicated to shareholders and development activities were main drivers 30 495 (12) 33 • FCF was € 12m versus € 97m of 1H2021, reflecting ind
Slide 17: CAPEX – Building Group Future
1H2022 CAPEX – BUILDING GROUP FUTURE • Factory expansion in Algeriz, Portugal • Construction of additional 4.420sqm, vast majority dedicated to production • Capacity up to 80 workers • Ready next September • Factory expansion in Cavriago, Italy • Construction of additional 12.000sqm, 3.000sqm for th
Slide 18: 2022 Acquisitions – Building Group Future
2022 ACQUISITIONS – BUILDING GROUP FUTURE • Draintech 300.0 2019-21 ENTRANCE IN POWER TRANSMISSION (1-2) 30.0 (€ m - % on net sales) ‒ Group enhanced its power transmission business 25.0 segment, taking a step forward in a 3-year journey 200.0 20.0 which made the Group become the 2nd player in the I
Slide 19: White Drive – Delivering Expectations
1Q2022 WHITE DRIVE – DELIVERING EXPECTATIONS WHITE DRIVE INTEGRATION PLAN 2021 STEPS 2022 STEPS Two motors production lines transferred in 1Q2022 Four ex-Eaton production lines to be transferred Carve out finalisation CAPEX: more than € 11m since October 2021 and start of production capacity increas
Slide 20: Sustainability Path
SUSTAINABILITY PATH aa Bix] 2022
Slide 21: Governance − 2022-24 Incentive Plan
2022 GOVERNANCE − 2022-24 INCENTIVE PLAN ▪ Group Annual Shareholding meeting approved 2022-24 Incentive Plan ▪ Previous steps − 2019: approval of “2019-2022 Stock Option Plan” − 2020: approval of First Section of Group Remuneration Policy ▪ 2022 steps − Approval of “2022-2024 Stock Option Plan” ▪ 20
Slide 22: Governance − 2022-24 Incentive Plan − Highlights
2022 GOVERNANCE − 2022-24 INCENTIVE PLAN − HIGHLIGHTS ▪ Main objectives pursued by the new Incentive Plan − Confirmed of the already present “involvement and retention management” approach − Introduction of an ESG involvement target ▪ “Minimum holding” period − Confirmation of the “3 years period” b
Slide 23: Outlook
OUTLOOK Bix] 2022
Slide 24: € 2 Billion of Sales
2022 € 2 BILLION OF SALES • 1H2022 Results are on the trajectory to Group commitments and moreover are a confirmation of better visibility einvisaged last May • Backlog soundness confirmed, with a June end YTD increase close to 25% (1) − Annual turnover coverage reached almost 80%, with different vi
Slide 25: Annex
ANNEX • DISCLAIMER • 1H2022 ADDITIONAL DATA • GROUP OVERVIEW 24
Slide 26: Annex Disclaimer
Bit] ANNEX DISCLAIMER
Slide 27: Annex Disclaimer – Forward Looking Statements
ANNEX DISCLAIMER – FORWARD LOOKING STATEMENTS This document has been prepared by Interpump Group S.p.A for aforesaid forward-looking statements. This document does not use during meetings with investors and financial analysts and is constitute an offer to sell or a solicitation to buy or subscribe t
Slide 28: Annex Disclaimer − Performance Indicators
ANNEX DISCLAIMER − PERFORMANCE INDICATORS The Group uses several alternative measures that are not identified as accounting parameters in the framework of IFRS standards, to allow better evaluation of the trend of economic operations and the Group's financial position. Such indicators are also tools
Slide 29: Annex Group Overview
Bit] ANNEX GROUP OVERVIEW
Slide 30: IP a Balance and Diversified Business
IP A BALANCE AND DIVERSIFIED BUSINESS ▪ € 1.600m of turnover and € 380m of EBITDA (23.7% on net sales) in 2021 divided between two divisions − Hydraulics and Water Jetting ▪ Hydraulics: around 70% of Group sales and 65% of Group EBITDA − Wide range of components for mobile and non-mobile hydraulics:
Slide 31: IP a Balance and Diversified Business
IP A BALANCE AND DIVERSIFIED BUSINESS WATER JETTING HYDRAULICS HIGH PRESSURE PUMPS FLOW HANDLING COMPONENTS DEVICES & SYSTEMS • Power take-offs, cylinders, hydraulic motors & gear • Piston pumps 1-2,000 hP used in • Stainless steel agitators, mixers, pumps, valves high-pressure applications manifold
Slide 32: IP a Balance and Diversified Business – Applications
IP A BALANCE AND DIVERSIFIED BUSINESS – APPLICATIONS HYDRAULICS WATER JETTING TRUCK OUTFITTERS FOOD, COSMETICS (1) AUTOMOTIVE EARTH MOVING Tipping trucks High-pressure homogenizers Rail engine heads deburring Excavators Trash collection – Water-jet food cutting, Bodywork cutting Backhoe loaders Fire
Slide 33: IP a Balance and Diversified Business – Products
IP A BALANCE AND DIVERSIFIED BUSINESS – PRODUCTS WATER JETTING HYDRAULICS HIGH PRESSURE PUMPS FLOW HANDLING COMPONENTS DEVICES & SYSTEMS GALTECH INTERPUMP INTERPUMP HYDROCONTROL PRATISSOLI BERTOLI MUNCIE POWER WALVOIL High flow/pressure Homogenizers Power take offs Valves, plunger pumps directional
Slide 34: IP Group Strategy Milestones
IP GROUP STRATEGY MILESTONES FLEXIBILITY • Vertically integrates manufacturing DIVERSIFICATION (wherever possible) Product mix and sales strategy • Across the widest possible range • Use of general-purpose programmable of applications, products, can adapt fast to market evolution machine tools (no r
Slide 35: IP Group Strategy Milestones
IP GROUP STRATEGY MILESTONES Volatility reduction through multiple cycles exposure Effective reaction to unexpected swings FLEXIBILITY • Vertically integrates manufacturing DIVERSIFICATION (wherever possible) Product mix and sales strategy • Across the widest possible range • Use of general-purpose
Slide 36: Carlo Banci
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