Slide 1: Innovative Technologies Enabling Sustainable Future
Innovative Technologies Enabling Sustainable Future 2023 Results and Mid-Term View March 18th 2024 © 2024 De Nora
Slide 2: With you today
W i t h y o u To d a y Paolo Dellachà Massimiliano Moi Chiara Locati CEO CFO Head of IR & ESG 2 © 2024 De Nora
Slide 3: Agenda
Agenda INNOVATIVE TECHNOLOGIES ENABLING SUSTAINABLE FUTURE 2023 Key Achievements & Business Review FY 2023 Results Review ESG Plan 2030 Mid-Term View and Guidance Final Remarks 2023 Results Q&A DSA® Anode for Cathodic Protection Leader in Coated Electrode Technologies 3 © 2024 De Nora
Slide 4: 2023 Results Opening Remarks
2023 Results OPENING REMARKS Profitable growth and sustainable Value Creation SOLID AND GROWING • +4% YoY Revenues at constant fx FINANCIAL RESULTS • 20% EBITDA adj. margin ENERGY TRANSITION • 1GW Technologies for Green H2 released GROWTH • +140% YoY Revenues, 12% EBITDA margin IMPROVING OUR • 3X El
Slide 5: FY Key Results
F Y 2 0 2 3 K E Y R E S U LT S Solid set of results in a challenging scenario REVENUES INCREASE SOUNDING CONFIRMED ENERGY PROFITABILITY TRANSITION’S GROWTH €856.4m €171.1m €102.2m Revenues EBITDA Adjusted Revenue, +140% YoY +0.4% YoY +4.0% @ constant forex exchanges 20.0% Ebitda Adj margin 11.8% EBI
Slide 6: Electrodes Technologies Business
E l e c t r o d e s Te c h n o l o g i e s B u s i n e s s Volume growth and solid profitability Electrode Technologies Business: Revenues grew by 2.4 % YoY at constant fx, 54% of total revenues supported by Chlor- Alkali volumes Sounding 25% Ebitda Adj. margin, and after market revenues at 42% of r
Slide 7: Water Technologies Business
W a t e r Te c h n o l o g i e s B u s i n e s s Record growth in the WTS, while Pools’ destocking is over Water Technologies Business 34% of total revenues Water Technologies Systems (WTS) reported a record year as revenues grew by 17%, and increased WTS - Revenues €m profitability. After Market re
Slide 8: Water Technologies Systems: Flagship Projects in execution
W a t e r Te c h n o l o g i e s S y s t e m s Our Flagship Projects in execution Water Technologies Systems (WTS) projects on-going Tubli-STP Expansion Phase 4 Electrochlorination Project End user: State of Bahrain End user: energy customer in the Middle East. One of the largest civil Ozone plant t
Slide 9: Energy Transition Business
Energy Transition Business Profitable GROWTH to decarbonize hard-to-abate industries Energy Transition Business: 12% of total revenues Our Growth KPIs: 1GW of Green H2 technologies delivered, €102m revenue (+140% YoY), positive 11.8% Ebitda adj. GW1 DELIVERED margin 1.0 3X 0.3 New Orders: 700+ MW, p
Slide 10: Our Green Hydrogen Projects
FY 2023 ENERGY TRANSITION Our Green Hydrogen Projects Main Projects in Execution / Backlog Main Orders Completed in 2023 NEOM, Saudi Arabia, Camacari Complex Largest H2 Project Globally 1° industrial-scale green H2 Site in Brazil part of > 2 GW tot project Part of 60 MW H2 to Green Ammonia H2 to Fer
Slide 11: Agenda
Agenda INNOVATIVE TECHNOLOGIES ENABLING SUSTAINABLE FUTURE 2023 Key Achievements & Business Review FY 2023 Results Review ESG Plan 2030 Mid-Term View and Guidance Final Remarks 2023 Results Q&A SEACLOR® Onshore Seawater Leading provider of Water Disinfection and Filtration Technologies 11 © 2024 De
Slide 12: Q4 Results
Q4 Results Best 2023 quarter in Revenues, EBITDA KEY HIGHLIGHTS REVENUES +8% Q4 ‘23 vs Q3’23 • Energy Transition +58% , projects in Electrode line with schedules. All-time high Technologies Quarter 20 81 Water • Water Tech. + 22% supported by WTS Technologies growth and pools stabilization 112 Energ
Slide 13: FY 2023 Growing Revenues
FY 2023 GROWING REVENUES… …despite a challenging scenario, +4% at constant forex KEY HIGHLIGHTS (€m) Revenue By Geography ELECTRODE TECHNOLOGIES +4.0% YoY +0.4% YoY • +2.4% YoY at constant fx, mainly thanks to Americas EMEIA Chlor-Alkali 852.8 886.5 856.4 30% 36% • Electronics impacted by market +14
Slide 14: FY 2023 Backlog
FY 2023 BACKLOG E n e rg y Tra n s i t i o n : re co rd B a c k l o g co n s i d e r i n g t h e n e w o rd e rs i n Fe b r u a r y 790 KEY HIGHLIGHTS 691 ELECTRODE TECHNOLOGIES Backlog 193 by Year of Deployment • Project execution in Chlor-Alkali and Electrowinning, partially off-set 204 by new ord
Slide 15: Energy Transition Pipeline @ Feb. 2024
ENERGY TRANSITION PIPELINE @ FEB. 2024 Tra n sfo r mi n g o u r fa st g row i n g 6 3 GW p ip e lin e in b a ck lo g BACKLOG1 ~2.2 GW ~200+ €M ~2.4 GW ~224 €M HOT DEALS2 • ELECTRODES MoU and Capacity Reservations • CELL MANUFACTURING • ELECTRODE PACKAGE ACTIVELY PURSUED PROJECTS3 ~15.9 GW ~1.5 €bn I
Slide 16: FY 2023 EBITDA Adjusted
FY 2023 EBITDA ADJUSTED S o l i d p r o f i t a b i l i t y, e x c e e d i n g t h e G u i d a n c e EBITDA Adj. Margin % Adj. EBITDA KEY HIGHLIGHTS Total 22.4% 20.0% ELECTRODE TECHNOLOGIES Energy Transition 5.6% 11.8% • Solid profitability despite challenging scenario Water Tech. 19.5% 14.3% • Chan
Slide 17: FY Results: From EBITDA to a Strong Net Result
F Y 2 0 2 3 R E S U LT S : F R O M E B I T D A TO A S T R O N G N E T R E S U LT KEY HIGHLIGHTS EBIT improved by €9 m in FY 2023 as a result of the: FY • EBITDA performance, 2023 • Dep. slightly increase due to Capex, more than offset by the positive effects of provision releases FY 2023 Net Result
Slide 18: Net Working Capital Evolution
F Y 2 0 2 3 R E S U LT S Net Working Capital Evolution NWC % Sales 32.9% 36.4% 30.9% KEY HIGHLIGHTS 315.3 280.2 264.6 NWC improvement in Q4 2023 reaching the lower incidence on Revenues in the last 3Yrs The performance vs Q3 2023 reflects - Consistent reduction in Inventories 31 Dec 22 30 Sep 23 31
Slide 19: Net Financial Position @ December 2023
NET FINANCIAL POSITION @ 31 DECEMBER 2023 Solid cash flow generation, keeping a strong Financial Structure (€’m) 1.2 -104.8 -6.8 -6.1 NET CASH EBITDA Δ NWC CAPEX TAXES FINANCIALS DIVIDEND GREENSHOE BUYBACK NET CASH DEC.2022 FY231 PAID & OTHERS (nucera’s IPO) DEC.2023 191 Ebitda Reported © 2024 De No
Slide 20: Agenda
Agenda INNOVATIVE TECHNOLOGIES ENABLING SUSTAINABLE FUTURE 2023 Key Achievements & Business Review FY 2023 Results Review ESG Plan 2030 Mid-Term View and Guidance Final Remarks 2023 Results Q&A Oronzio De Nora, Politecnico’s Labs Milan 1923. Sustainable By DNA Committed to be an ESG Champion 20 © 20
Slide 21: Our ESG Ambitions
OUR ESG AMBITIONS ESG material topics at the base of the sustainability Plan 2030 10 MATERIAL TOPICS Green Innovation Circular Economy Climate action OUR AMBITION IS TO Employee H&S BECOME A LEADER IN GREEN INNOVATION Responsible Supply Chain AND CIRCULAR ECONOMY, Employee Diversity, Equity & Inclus
Slide 22: ESG Plan 2030 Pillars and Key Initiatives
ESG PLAN 2030 Pillars and Key Initiatives GREEN INNOVATION PEOPLE: INCLUSION, • Product Scorecard (LCA based) WELLBEING, DEVELOPMENT • Circular Design Guidance in the R&D process • Strengthen H&S governance and culture • Reducing Noble Matels in products • Mental health awareness project • Affinity
Slide 23: ESG Targets
E S G TA R G E T S Quantitative targets to accelerate our ESG journey Download the ESG Plan 2030 Pillars Key ESG Plan Targets (baseline 2022) GREEN INNOVATION • Introduce LCA guidance in R&D processes • Develop Product Scorecard, • 100% products assessed with scorecard in 2027 • > 80% R&D spend with
Slide 24: ESG Governance
ESG GOVERNANCE New permanent organization to support plan execution ESG Steering Committee Board of Reporting directly to CEO Directors Chief Financial Officer Chief Officer People, Organization, Social CCRS-ESG Communication and Happiness Chief Operating Officer CEO Chief Legal Officer ESG Chief Te
Slide 25: Main 2023 ESG Achievements
MAIN 2023 ESG ACHIEVEMENTS Our journey continues… GREEN CLIMATE ACTION & CIRCULAR PEOPLE & LOCAL GOVERNANCE ETHICS AND INNOVATION ECONOMY COMMUNITES COMPLIANCE • 22% Vitaly index • Scope 1 and 2 • Great Place to Work • Anti-Corruption emission intensity flat Award in Italy Policy, 90% • +17 New Pate
Slide 26: Main 2023 Achievements: Climate Action and Circular Economy
MAIN 2023 ACHIEVEMENTS C l i m a t e A c t i o n a n d C i r c u l a r E c o n o m y, o u r p o s i t i v e i m p a c t 12% Revenues in Energy Transition 1 GW technologies for green H2 generation 24% Revenues in WTS for Water Disinfection and Filtration EU TAXONOMY 9% Revenues aligned (~80% on Energ
Slide 27: Agenda
Agenda INNOVATIVE TECHNOLOGIES ENABLING SUSTAINABLE FUTURE 2023 Key Achievements & Business Review FY 2023 Results Review ESG Plan 2030 Mid -Term View and Guidance Final Remarks 2023 Results Q&A AWE Stack Sustainable and Profitable Growth, while investing for the future 27 © 2024 De Nora
Slide 28: GPS – Growth Profitability Sustainability
S T R AT E G I C P I L L A R S GPS – GROWTH PROFITABILITY SUSTAINABILITY GROWTH & MARKET POSITIONING • Deliver step-change organic growth driven by energy transition in partnership with the leading players €1 bn company in 2025 • Pursue profitable growth in both Electrode and Water Technologies • Fo
Slide 29: Market Outlook 2024-2026
MARKET OUTLOOK – 2024- 2026 Different growth speeds of our markets CHLOR-ALKALI ELECTRONICS MINING ENERGY TRANSITION • Chlorine • Li Batteries • Nickel • Green hydrogen • Caustic soda • PCBs • Cobalt POOLS MUNICIPAL INDUSTRIAL Market CAGR 2023- 2026 CAGR <5% CAGR 5-10% CAGR >10% • Residential • Drin
Slide 30: Electrode Technologies
ELECTRODE TECHNOLOGIES Consolidate and improve our n.1 position Market Evolution Strategic Guidance Chlor-Alkali • Innovative and Sustainable Electrodes Stable in 2024, recovery in 2025-2026. • Optimizing Noble Metal Usage Growth’s driver: Technological upgrades • Maintaining Customer and Partner Re
Slide 31: Water Technologies
WAT E R T E C H N O L O G I E S Strengthen our competitive position via organic growth and M&A Market Evolution Strategic Guidance WTS WTS • Investments in municipal and energy sectors • Focus on electrochlorination and on-site • Demand for on-site electrochlorination technologies chlorine generatio
Slide 32: Energy Transition
ENERGY TRANSITION Lead the mid-long-term growth of Green Hydrogen Market Evolution Strategic Guidance • 85-120 GW electrolyzer capacity by 2030 • Technology: focus on performance, costs, and • AWE preferred large-scale projects, 80% share in sustainability 2030 • Grow in partnerships with leading in
Slide 33: Energy Transition Pipeline @ Feb. 2024
ENERGY TRANSITION PIPELINE @ FEB. 2024 Tra n sfo r mi n g o u r fa st g row i n g 6 3 GW p ip e lin e in b a ck lo g BACKLOG1 ~2.2 GW ~200+ €M ~2.4 GW ~224 €M HOT DEALS2 • ELECTRODES MoU and Capacity Reservations • CELL MANUFACTURING • ELECTRODE PACKAGE ACTIVELY PURSUED PROJECTS3 ~15.9 GW ~1.5 €bn I
Slide 34: Boosting Our Distinctive Production Capacity
B O O S T I N G O U R D I S T I N C T I V E P R O D U C T I O N C A PAC I T Y Focus on readiness and flexibility to market trends Ongoing investments in brown and green field projects AMS EMEIA ASIA ▪ Increase existing plants’ • Strengthen further • Synergic plan of capacity with automation manufact
Slide 35: Italian Gigafactory Project
I TA L I A N G I G A FA C T O R Y P R O J E C T: S H A P I N G T H E F U T U R E O F G R E E N H 2 Investing in innovation and manufacturing capacity Greenfield project Products: Italy – Cernusco sul Naviglio R&D and Industrial 25,000 sqm Deployment Construction will start H1 2024 Financing Capacity
Slide 36: Guidance 2024-2026
GUIDANCE 2024 - 2026 Impressive Leadership in Green Hydrogen driving our growth Revenues CAGR 2023 – 2026 • Revenue’s growth will gradually accelerate in €m High Single Digit the next 3 years 856.4 • 1bn€ Company in 2025 • Revenues CAGR 2023- 2026 by division • Energy Transition 40% • Electrode Tech
Slide 37: Agenda
Agenda INNOVATIVE TECHNOLOGIES ENABLING SUSTAINABLE FUTURE 2023 Key Achievements & Business Review FY 2023 Results Review ESG Plan 2030 Mid -Term View and Guidance Final Remarks 2023 Results Q&A Laser - DND Plant Distinctive Manufacturing Capacity 37 © 2024 De Nora
Slide 38: Final Remarks 2023 Results
F I N A L R E M A R K S 2 0 2 3 R E S U LT S Leading innovative technologies to enable a Sustainable Future Solid 2023 growing financial Results despite a challenging Scenario, with a robust profitability and Solid Cash Flow Generation Energy Transition Business Unit, +140% YoY Revenues, promising B
Slide 39: Q&A Session
Q&A Session © 2023 De Nora
Slide 40: Investor Relations – Ready to Engage
I N V E S TO R R E L AT I O N S – R E A DY TO E N G A G E UPCOMING EVENTS FINANCIAL CALENDAR IR CONTACTS Mar. 20 BofA – GIC Conference, London Apr. 24 Shareholders’ Meeting ir@denora.com Investor Relations | Overview | De Nora ph: +39 02 2129 2124 Mar. 21 Join Open House De Nora & tk May 8 Q1 2024 n
Slide 41: Additional Materials
Additional Materials © 2024 2023 De Nora
Slide 42: Income Statements
I N C O M E S TAT E M E N T S (€m) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Revenue 200.1 210.4 206.2 236.2 852.8 216.9 203.5 209.4 226.7 856.4 YoY Growth (%) 8.4 % (3.4%) 1.5 % (4.0%) 0.4 % Change in inventory of finished goods and work in progress 6.8 7.7 23.
Slide 43: Quarterly Revenues and Adj. EBITDA by Division
Q U A R T E R LY R E V E N U E S 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 Q2 ‘23 Q3 ‘23 Q4 ‘23 REVENUES 200.1 210.4 206.1 236.2 216.9 203.5 209.4 226.7 Electrode Technologies 109.5 118.5 123.4 122.0 118.9 112.8 121.0 111.5 Energy Transition 4.5 2.4 7.2 28.6 26.
Slide 44: Income Statement: Focus on EBITDA Adjustments
I N C O M E S TAT E M E N T Focus on EBITDA Adjustments (€m) FY 2022 FY 2023 Sales 852.8 856.4 EBITDA 165.2 171.0 Margin (%) 19.4% 20.0% Terminations costs (labor + legal expenses) 0.5 1.3 Costs relative to IPO process 3.6 0.7 Costs for M&A, integration, and company reorganization 0.3 0.8 Inventory
Slide 45: Balance Sheet
BALANCE SHEET (€m) FY 2023 FY 2022 Intangible assets 115.8 131.6 Property, plant and equipment 254.3 184.2 Equity-accounted investees 231.5 122.7 Fixed asset 601.6 438.4 Inventories 257.1 295.5 Contract work in progress, net of advances from customers 31.7 16.4 Trade receivables 141.9 123.4 Trade pa
Slide 46: Cash Flow Statement
C A S H F L O W S TAT E M E N T (€m) FY 2023 FY 2022 EBITDA 171.0 165.2 Losses on the sale of property, plant and equipment and intangible assets 0.6 0.3 Other non-monetary items 2.3 10.7 Cash flows generated by operating activities before changes in net working capital 174.0 176.2 Change in invento
Slide 47: © 2024 De Nora
© 2024 De Nora