Innovatec Spa · MIL:INC
Innovatec Spa — Investor Day (September 2023)
38 slides from Innovatec Spa's investor day presentation, Sep 19, 2023
Slide 1: Strategic Plan 2024-2026
STRATEGIC PLAN 2024-2026 INNOVATEC GROUP 19 September 2023
Slide 2: Today's Speakers
Pietro Colucci Elio Catania CEO Chairman Raffaele Vanni CFO and Investor Relator Federico Malgarini Head of Planning Camilla Colucci and M&A Vice President in Charge of ESG TODAY’S SPEAKERS
Slide 3: Strategic Plan 2024-2026 - Market Overview
INNOVATEC GROUP STRATEGIC PLAN 2024-2026 INNOVATEC GROUP Market Overview 01 WHERE WE ARE TODAY 02 OUR BUSINESS PLAN 2024 – 2026 03 OUR PLAN TOWARDS SUSTAINABILITY 04 FINANCIAL PLAN 2024 - 2026 05 GOVERNANCE & STOCKS
Slide 4: What is Cleantech, Global Market Value & Outlook
WHAT IS CLEANTECH, GLOBAL MARKET VALUE & OUTLOOK RENEWABLE ENERGY GLOBAL MARKET SIZE (€B; % YoY Var.) CAGR ‘17-’22 CAGR ‘22-’26 Market size in €B Capacity data in GW +9,2% +9,4% +11,1% +9,2% 5.178 1.133 3.610 796 2.322 471 2017 2022 2026 2017 2022 2026 WASTE MANAGEMENT GLOBAL MARKET SIZE (€B; % YoY
Slide 5: Decarbonization & Full Energy Transition Support
DECARBONIZATION & FULL ENERGY TRANSITION SUPPORT ITALY’S NET GREENHOUSE GAS EMISSIONS (MTON CO2-EQ) RES MARKET, CUMULATIVE INSTALLED CAPACITY (GW) 2030 +8% -20% 22% 131 37% +12% 19,2 13% 96 -40% 28% 28,1 523 61 19,2 -55% 418 389 20,0 359 Transport Civil 19,2 Agriculture Other* 79,9 11,8 52,5 25,0 20
Slide 6: Innovatec Ambitions and How to Reach Them
INNOVATEC GROUP STRATEGIC PLAN 2024-2026 01 WHERE WE ARE TODAY INNOVATEC AMBITIONS AND HOW TO REACH THEM 02 OUR BUSINESS PLAN 2024 – 2026 Targets, guidelines, results 03 OUR PLAN TOWARDS SUSTAINABILITY 04 FINANCIAL PLAN 2024 - 2026 05 GOVERNANCE & STOCKS
Slide 7: An Industrial Plan Shaping a New Group Starting from 2020
AN INDUSTRIAL PLAN SHAPING A NEW GROUP STARTING FROM 2020 Innovatec S.p.A. Vescovo Romano 2020 & C. S.r.l. 2021 2022 A.E.T. S.r.l. Albarum S.r.l. Eliospower S.r.l. 2023 7
Slide 8: Innovatec's Operating Model: 2 Business Units
INNOVATEC’S OPERATING MODEL: 2 BUSINESS UNITS Innovatec delivers its unique value proposition through 2 Business Units that aggregate Group companies and people's specific technical skills. Group corporate functions ensure the common Governance Model and provide central services for both Business Un
Slide 9: In 2023 Haiki+ Started a Re-branding & Re-organization Path
IN 2023 HAIKI+ STARTED A RE-BRANDING & RE-ORGANIZATION PATH HAIKI COBAT HAIKI ELECTRICS In the last few years the corporate structure has radically changed in Business unit entirely dedicated to the order to express best its crucial collection of waste materials from Business Unit completely centere
Slide 10: Haiki Cobat: The Ability to Envision a New Future
HAIKI COBAT: THE ABILITY TO ENVISION A NEW FUTURE Today the Cobat platform through five dedicated consortia ensures that producers and importers are released from the EPR for … waste management and provides an efficient service for collecting, storing and sending end-of-life products for recycling.
Slide 11: Haiki+: A Clear Path Toward Our Role as Industry Leader
HAIKI+: A CLEAR PATH TOWARD OUR ROLE AS INDUSTRY LEADER Haiki presides important stages of products end-of-life cycle CORPORATE among different industries, aiming to consolidate key areas and AUTOMOTIVE FASHION & BUILDINGS & ELECTRONICS & BATTERIES GARMENTS CONSTRUCTION expand its presence through t
Slide 12: 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 13: 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 14: Haiki+: A Solid and Growing Asset Base
HAIKI+: A SOLID AND GROWING ASSET BASE Authorized in 2023 Treatment expected to start 1Q24 The new hub for the selection and valorization of waste from industrial packaging in Lombardia Lazzate Cermenate Chivasso Milano Romano Collegno Bedizzole Authorized in 2023 Treatment expected to start 1Q24 PV
Slide 15: 2023: Going Through Stormy Waters
2023: GOING THROUGH STORMY WATERS WHAT WE’VE ACHIEVED WHAT WE’VE STARTED During 2022 and 2023 the Group was able to speed up We’ve dedicated significant energies in the the acquisition program in order to gather some of the reorganization of the whole Group, starting a profound strategic assets need
Slide 16: 2026 Plan: Growth & Financial Ambitions
2026 PLAN: GROWTH & FINANCIAL AMBITONS In the planning phase (’23- ’26), there is an estimated revenue increase of €226 million, with a CAGR of 23,7%. (‘23-‘26) CAGR 478 23,7% Revenues Similarly, the EBITDA is 397 332 (€M) anticipated to follow the 289,2 237,8 252 same upward trajectory. It is expec
Slide 17: P&L Expansion Through the Plan
P&L EXPANSION THROUGH THE PLAN Revenues growth through the 2026 plan is expected to proceed REVENUES 2022 to 2026 2024 steadily from 2024 on, with a final target of €478 million 2022 (+65% vs 2022, +90% vs 108 201 2023), with EE&Renew BU €478 M expected to recover in 2024 114 €332 M 278 the misstep
Slide 18: Recruitments, Hard Capex & M&A for Group Growth
RECRUITMENTS, HARD CAPEX & M&A FOR GROUP GROWTH In the Plan period the total Capital Expenditure counts for €76,7M, of which €19,4M for M&A activities, €54,2M for Hard CapEx and €3,0M for group’s decarbonization plan. RECRUITMENT HARD CAPEX & M&A ’23-’26 ’23-’26 HARD CAPEX ~63% ~62% M&A Assets Opera
Slide 19: 2026 Plan: SWOT Analysis
2026 PLAN: SWOT ANALYSIS A plan developed from a STRENGHTS WEAKNESSES detailed analysis of both the market and our positioning, • Strong and expanding coverage in core in order to take advantage of areas (both geographical and operational); • Expansion expected in heavily occupied our strategic stre
Slide 20: How Innovatec Contributes to Decarbonization
INNOVATEC GROUP STRATEGIC PLAN 2024-2026 01 WHERE WE ARE TODAY 02 OUR BUSINESS PLAN 2024 – 2026 HOW INNOVATEC CONTRIBUTES TO DECABONIZATION 03 OUR PLAN TOWARDS SUSTAINABILITY ESG plan & actions 04 FINANCIAL PLAN 2024 - 2026 05 GOVERNANCE & STOCKS
Slide 21: 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 22: 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 23: 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 24: ESG Valuation of Our Supply Chain - Format
ESG VALUATION OF OUR SUPPLY CHAIN - FORMAT Innovatec's supply chain consists of more than 2000 suppliers, of which 90 Gold Suppliers were selected for strategic importance. For Gold suppliers, it was decided to allow free access ENVIRONMENTAL SOCIAL ECONOMIC SUSTAINABILITY SUPPLIER to the Sustainabi
Slide 25: ESG Valuation of Our Supply Chain - Results
ESG VALUATION OF OUR SUPPLY CHAIN - RESULTS Out of the 90 Gold Suppliers involved, 33 companies (36.7%) have adhered to the Environnement evaluation request under the project. Of these, as of H1 2023, 23 36,7% have completed the 90 evaluation through the suppliers 31 proposed questionnaire involved
Slide 26: Our Strategic Sustainability Plan
OUR STRATEGIC SUSTAINABILITY PLAN Innovatec has committed, as early as 2019, to integrate ESG issues into its industrial Starting from January 2022, Innovatec has strategy and actions to joined the United Nations Global Compact, contribute to the adopting its principles. achievement of Sustainable D
Slide 27: Innovatec's Fuel for Growth
INNOVATEC GROUP STRATEGIC PLAN 2024-2026 01 WHERE WE ARE TODAY 02 OUR BUSINESS PLAN 2024 – 2026 03 OUR PLAN TOWARDS SUSTAINABILITY INNOVATEC’S FUEL FOR GROWTH 04 FINANCIAL PLAN 2024 - 2026 A view on financial sustainability 05 GOVERNANCE & STOCKS
Slide 28: 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 29: 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. ∆ Environment & Circularity + €94 M ∆ Energy Efficiency & Renewables + €132
Slide 30: Net Invested Capital
NET INVESTED CAPITAL Data in €M INVESTMENTS IN STRATEGIC ACQUISITIONS Invest in strategic acquisitions as a way to vertically integrate technologies and know-how in Haiki’s businesses. Invest into breakthrough technological companies capable of treating some of the most common waste turning them int
Slide 31: Net Financial Position
NET FINACIAL 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 29 million by 2026. This, combined with a PFN / EBITDA general co
Slide 32: Net Equity
NET EQUITY During the plan, the balance sheet composition is TOTAL BS VALUE FY2022 - €138 M expected to evolve from a rough balancing between provisions, NFP and Equity 46 42 TOTAL BS VALUE 2026P- €156 M reported in 2022FY to a substantial predominance of Net Equity, which, without 47 4 accounting f
Slide 33: Positive Cash Generation
POSITIVE CASH GENERATION CUMULATED CASH FLOW 2023 - 2026 +€19M STRONG NET CASH TO EQUITY 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 ~25% of the cumulative (€M) Dividend in 2026 n
Slide 34: Innovatec Responsible View to Stakeholders
INNOVATEC GROUP STRATEGIC PLAN 2024-2026 01 WHERE WE ARE TODAY 02 OUR PLAN TOWARDS SUSTAINABILITY 03 OUR PLAN TOWARDS SUSTAINABILITY INNOVATEC RESPONSIBLE VIEW TO STAKEHOLDERS 04 FINANCIAL PLAN 2024 - 2026 05 GOVERNANCE & STOCKS
Slide 35: 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
Slide 36: Stock & Shareholding Data
STOCK & SHAREHOLDING DATA STOCK DATA – INNOVATEC SPA SHAREHOLDERS DATA INNOVATEC Listing Market Euronext Growth Milan no. of Ordinary Shares (M) 96.4 STOCK ISIN IT0005412298 Free Float 55% BIT INC Major Shareholder 45% PERFORMANCE Price per Share (Colucci Family) 1.357 (as of 18 Sep 2023) Mkt Cap (€
Slide 37: 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 38: Strategic Plan 2024-2026
STRATEGIC PLAN 2024-2026